Real Estate: Why is it a good idea to buy a home over appraised value? |
- Why is it a good idea to buy a home over appraised value?
- Title Company cancelled on day of closing
- Why house prices will continue to rise for the next decade (or two)
- ROTH 401k Rollover to a 5 year+ existing ROTH IRA Question. Would some of those funds be potentially accessible as any-time accessible, post-tax contributions for a first time home buyer?
- ~2 weeks from closing, the house appraises significantly lower than list price. sellers refuse to come down. help. :(
- Now is the time we were planning to buy a home
- First time condo buyer. Seller's agent is asking me to sign a settlement agreement and general release of all claims. Is this normal??
- FHA Appraisal Rules On Detached Structures?
- Can anyone give me the skinny on 55+ communities in Florida?
- Need advice for buying home from relative during WFH and future
- Why would you sell your childhood home?
- Quick Capital Gains Tax Question
- Price increases in new construction community, is this good news for me?
- Snow Storm in WA, Is it an opportunity for buyers?
- License to buy/sell? Get RE license to better broker your own deals & save 3%?
- Is it possible to be an Agent while working another full-time job?
- Leasehold in CA
- Tax Lien buying in California
- Anyone used the Knock Home Swap program?
- Do you think there will be more homes for sale this summer?
- What on earth are these lumber prices and does anyone have any insight into when things might go back to normal?
- Personalized letter with family pics included with offer?
- Moving long distance to a new home ?
- Responsibility for Damages on Closing Day (TX)?
| Why is it a good idea to buy a home over appraised value? Posted: 13 Feb 2021 07:14 AM PST Why do you think the housing market will continue to go up by 10-20% a year forever? I think most markets have a cap (wages are stagnant for the most part). In my market, homes over 1.4 million sit around for at least 6 months. Homes over 800k also don't sell that fast, nor have they appreciated very much in the past 10 years (keeps with inflation, not much else). At 10-20% inflation, the 500k homes that are now selling for 20k over appraised value will hit 800k, but it doesn't look like enough people can afford it. Where will the new money come from? [link] [comments] |
| Title Company cancelled on day of closing Posted: 13 Feb 2021 07:31 AM PST My refi loan was cleared to close by bank on 2/4 & I was sent the Initial Closing Disclosure. I was all set to close on my refi loan Thursday (2/11) when I received a call day of closing from title company to cancel. They stated they don't have releases of 2 leins. Turns out 1 I had already found for them and sent in 3 months ago after contacting the company to get a copy of the realease (now I see it is also in court records online) . They had called me the night before closing and I was going to resubmit but they eventually found the paper in their file. The 2ndrelease they need from my first mortgage in 2002. I asked for more info so I could work on it myself but only received the info that Flagstar is the mortgage holder. I have the paperwork so I contacted Flagstar and it is too old for them to bring up anything (I have the loan #) so they submitted a request to have it researched. HELP - Where do I go from here? [link] [comments] |
| Why house prices will continue to rise for the next decade (or two) Posted: 13 Feb 2021 10:12 AM PST 9-5 work day is dead. Commuting is dead. Offices are dead. This is a total redistribution of the entire global population. There is a permanent migration away from cities with work from home becoming the new normal. The price of apartments will crash. The price of homes will have effectively infinite demand. Things will only balance out once markets find a new equilibrium. That may take an entire generation or maybe 100 years. This time its different. This is a permanent plateau of new prosperity. Buy now, or forever be priced out !!!!!! [link] [comments] |
| Posted: 13 Feb 2021 05:05 AM PST Long time reader here and first time home buyer. I credit this sub, and having worked as a publicist for several personal financial startups over the years, as formative forces that have pointed me in the right patch for my own PF journey. I know and subscribe to the tone of the personal finance sub: patience, diligence, living within your means etc. and fully know that the "can i borrow from my retirement to fund X" is often rightly met with a resounding 'no, you can't afford it then. re-evaluate.' I'm not explicitly looking to do this, but just wanted to consider all possible levers that might be at hand to help A/B test some scenarios for my family. The Bottom Line Up Front: I know you can tap contributions in a ROTH IRA + 10k in earnings penalty free for a first time home purchase. But is it possible to do so from a ROTH 401k? I changed jobs in 2017 but left the money to grow in here (Vanguard Admiral/Institutional Index shares) instead of rolling it over to my existing Fidelity ROTH IRA. So first off, since this is a fund with an old employer, i know a 401k loan is out of play--not that i'd want to do that anyway with the risk involved. I dont want to consider going down this path if it'll trigger a withdrawal 10% penalty + tax event (as it would for a traditional 401k). But from everything i've read online it's a little unclear about how this work in a ROTH 401k format. I believe that you can not use a roth 401k for a down payment in the '10k of earnings can be penalty free for first time homebuyers' scenario. But havent been able to make heads or tales of whether you could access your contributions. I believe i stumbled across something last night where--since money is fungible--you can't just delineate that you'll want to take $30k of 'contributions' out of a $185k total portfolio value. But that they'll pro-rate based upon that total portfolio value and then hit you with the 10% + tax on the percentage that you're withdrawing that corresponds to the contributions v. earnings makeup of your portfolio. If that's the case, i likely dont want to go down this road. Lastly--and i couldnt find this answer definitively either--but there seemed to be some indication that rolling over a Roth 401k into a Roth IRA (existing already to not run afoul of the 5 year rule)--might enable you to then access those funds as additional contributions. Why am I asking all of these questions: looking to purchase a home in the next 4 months in a HCOL area. I've been over-indexing over the years toward saving for retirement (i know...truthfully, there's no such thing), but at the expense of a down payment fund. My wife and i have a 9 month old crawling around out 1BR apartment and are looking to build a life that hopefully leads to having 3 children (and i'd prefer to potentially grab a 4BR house in our area vs. 3 if possible so we can jump right into a home that can work for us long-term). Now she's an 11 year tenured teacher with a pension in a good school district and has maxed out her degree steps on the payscale so i am considering how to balance my innate desire to over-save for the future vs. living now. We have about 220k in retirement now, mostly all in ROTH vehicles + this theoretical pension. Our total cash on hand right now (downpayment + presumed closing costs will be about 125k...with an additional 5k someodd set aisde for ongoing bills, rent etc.) We were approved for something stupidly high in terms of a housing budget, which i dont want to go anywhere near, BUT...i do just want to consider all our options. Inventory is tight here and ideally we'd love to settle in a range that's 600-650k home and about $3-3.5k mortgages. tiniest violin in the world most of those options dont exist as single family homes in the towns we're looking into, but there are a bunch in that 750-800k band that are perfectly turnkey. Taxes are a PITA except for a few select towns we're especially targeting. But like net net.... i dont think we want a home in the 4k monthly payment (principle, interest, tax escrow) range which would be this 750k level given our down payment. So i was weighing if i could stomach just the opportunity cost of grabbing a little from the ROTH 401k to perhaps bolster our down payment and our ability to potentially (if we find a property we love in this range) knock that monthly payment into the 3600 or 3700 range. This is likely just a theoretical exercise. I dont want to get us out over our skis. And maybe it's a moot point already if i already had our credit run for a pre-approval process. They had us list this ROTH 401k as an asset, but am i in a lockup period where i wouldnt be able to convert it into an existing 5year+ ROTH IRA without drawing a million red flags? [link] [comments] |
| Posted: 12 Feb 2021 04:55 PM PST My fiancé and I are first time home buyers pre-approved with financing and ready to go. We found the perfect little place, but we knew going into it that the listing price seemed high. Our realtor sort of scoffed when we said we were hesitant to go under contract (regardless of the appraisal contingency), pay all the inspections and whatnot, have our hearts set on the place, only to have what is currently happening happen. Alas, here we are. The sellers bought the house less than a year ago for $252k as a new construction. They had some life event come up that requires them to move elsewhere, so they self-listed the house at $295k. They did nothing to the house except live in it for 9-10 months and fence in the backyard. No one bites. They relist with a realtor at $290k. We bite and, after some counter offering, our $285k offer is accepted. Again, we were really hesitant to make this offer because we had a feeling it was high. However, our realtor insisted that "we might be surprised by the appraisal" and, while we were probably right that it would appraise lower, people are usually reasonable and they'll either come down or we can negotiate a reasonable deal. The house is in a little "up and coming" neighborhood (not great) and there aren't many comps. The market here is HOT... I saw a house listed Thursday morning that was contingent by 6 pm the same day. That isn't uncommon. Our offer was a same-day offer on this house. Soooo... house appraised at $265k. To spare you all of the nitty gritty details, the appraisal is solid. We feel confident that it's exactly what the house is worth. After all, they JUST bought the place for $252k (it was listed at ~$260k brand new). Nothing happened that would've made the price inflate THAT much. The sellers are livid and refuse to come down lower than $279k. They insist there are better comps (there aren't) and rebuttals to the appraisal were denied. Am I crazy, or are these sellers out of their mind? Am I missing something? Are they just hoping to get a cash offer from someone or an offer from someone who doesn't appraise the house, and if so, why did they accept our offer? Did our realtor suck and does she hold some responsibility here for not giving us better advice, when we very clearly voiced concerns about this exact issue happening before we ever made the offer? I've read that these situations are rare so I'm just feeling kind of dumb and wondering what went so terribly wrong. I feel sort of helpless and I don't know how to talk these crazy sellers down ~$30k. Help? TLDR: made an offer on a house with an appraisal contingency, and the house appraised $30k less than listing price. The appraisal is good, if not generous. Sellers refuse to budge. Need insight. Edit: thank you for all your comments and advice! I learned a lot from these perspectives and can approach this with more clarity, which was the goal. I might add, however, to some on this thread and on others: please try to be gracious with people like me who are learning! I have genuine questions that, yes, might sound silly to some. This is stressful! It's hard to know all the ins and outs on your first rodeo. I already feel pretty lost and dumb through a lot of this process. But I'm a little less lost and dumb now I think. :) thanks again! [link] [comments] |
| Now is the time we were planning to buy a home Posted: 13 Feb 2021 06:57 AM PST Unfortunately, the perfect time for me and many others to buy a home...in all places the Bay Area. We are on a single income with 2 kids and I'm fortunate enough to work for a tech company that is allowing some remote work. Could I afford a house...probably entry but I'd be eating ramen noodles. Not to mention it's getting super competitive across the country, especially here. There's too much cash. Anyone else in a somewhat similar situation? How are you playing it? [link] [comments] |
| Posted: 12 Feb 2021 11:24 PM PST For a condo I'm interested in buying, the seller is willing to credit me $3,000 for repairs to the property before moving in. The seller's agent is with RE/MAX. For me to receive the $3,000 credit, he wants me to sign a "settlement agreement and general release of all claims," which he wants to include in the purchase agreement for the condo. The seller's agent is saying such a request is standard for RE/MAX. Is this true? Has anyone come across this? I'd appreciate any advice on how I should respond to the seller's agent. Thank you! [link] [comments] |
| FHA Appraisal Rules On Detached Structures? Posted: 13 Feb 2021 10:36 AM PST Hello, I could use some guidance on how FHA guidelines would treat a detached shed (not garage, just a shed that appeared to have power) that needs a new roof and paint. The paint is chipping (potential lead paint hazard) and the roof has a pretty severe sag to it and bad shingles. I would think since it's not immediately relevant to the primary dwelling that it wouldn't be a required repair but I'm not 100% sure. Any appraisers or other experts that could shed (haha) some light on this topic? [link] [comments] |
| Can anyone give me the skinny on 55+ communities in Florida? Posted: 13 Feb 2021 10:35 AM PST I'm only 50, but my mother in law lives with us (she's 89), and my mother is considering going in with us on a place for everyone in Florida (around Safety Harbor). Would I be able to purchase the home? Anything I need to be aware of? We do have a 15 year old kid who will be coming with us. Thanks! [link] [comments] |
| Need advice for buying home from relative during WFH and future Posted: 13 Feb 2021 10:30 AM PST I have a relative who wants to sell me their home in CT. Its a very nice property near a university and it seems like a great opportunity. I lived in the house when I was in college and I am familiar with the amount of work it needs. I would like to buy this home and live there for the remainder of the remote work duration. I have to go back to NYC but it is not known when. I figure that I can rent in NYC and still afford the 30 yr mortgage on the house. I am thinking to turn it into a rental property depending on how the COVID situation resolves. Given that this is a private sale, does anyone have advice for me on how to maximize the amount of money I can save on this transaction? I would be considered a first time home buyer. I'd also be interested in what kind of DD I should do before buying it/giving them an offer [link] [comments] |
| Why would you sell your childhood home? Posted: 13 Feb 2021 10:08 AM PST My grandparents came to this country and bought a small home. They left it to my mother. She bought a house with my father. My childhood home. I cant imagine selling either of these houses. I intend to pass those two and my home to my kid. Why don't people own 3 or 4 generations of their family homes? Its what the royalty of europe did and how they accumulated or preserved not just wealth but legacy. Seems sad to sell off family history like that. Isnt a home more than a sum of its parts? [link] [comments] |
| Quick Capital Gains Tax Question Posted: 13 Feb 2021 10:05 AM PST I am doing a private sale of my home which I purchased on 4/19/2019. To avoid capital gains tax, do I need to wait to go under contract after 4/19/2021 or do I just need to close after that date? [link] [comments] |
| Price increases in new construction community, is this good news for me? Posted: 13 Feb 2021 10:03 AM PST We're buying a new construction SFH in Fort Worth, TX. We went under contract in December 2020, and the price we locked in for our floorplan was $276K. Two months later the same floorplan now costs $299K. If this rate of increase keeps up, our floorplan could be selling for around $70K more than we paid for it when it's finished in June. We have no plans to sell in 5 years or anything like that, this is our first home after years of apartment living and we're excited to settle down and start our family. But would this equate to increased equity for us that we could use to try to eliminate PMI sooner? Or is that not how it works? [link] [comments] |
| Snow Storm in WA, Is it an opportunity for buyers? Posted: 13 Feb 2021 09:21 AM PST We have a big snow storm in Seattle suburbs and many buyers cannot tour listed houses this weekend. This week inventory is more than 2x compared with last week. I think that is because of schools winter break more people listed their house this week. Is this an opportunity for buyers to purchase with leas competitions and hopefully at the ask price? Note that in this area even garbage SFH houses used to go pending 50k-100k over ask in less than a week. [link] [comments] |
| License to buy/sell? Get RE license to better broker your own deals & save 3%? Posted: 13 Feb 2021 09:20 AM PST Ok...i know every profession is going to say "no one can do this but us" and "getting into this profession is so hard that you shouldnt even try" however (no offense to present company), i have met some of the dumbest RE agents. Maybe they played dumb because all their "mistakes" were never in my favor & cost me money. Ex. $20,000 assessment coming from HOA for condo upgrades. Ok, ill split the cost with the seller. Bring 50% to closing. She writes it up as splitting the cost (add $10k to selling price) AND bring $10k to closing. I just paid for the entire assessment, dingus. Well, im the dingus. So, if i sell a $300,000 home & buy a $400,000 home...thats 3% = $21,000. Id gladly get a RE license if you paid me 21,000 to do it. Thoughts on getting a license to do a better FSBO (i know yall hate those) ...and maybe turn it into a part time gig? [link] [comments] |
| Is it possible to be an Agent while working another full-time job? Posted: 13 Feb 2021 09:17 AM PST So quick background on me, I'm 21 and recently got started in my first full-time job as a Software Engineer. I work 40 hours/week fully remote and make a great salary. However, I've always been super into real estate and wanted to get involved in that field as well. I've heard that agents get a lot of flexibility as far as when and how often they work, so would it be feasible to continue working 9-5 at my current job while dedicating weekends and evenings to working as an agent? I have no problem working an extra 30-40 hours in the off-hours, I'm just not sure if a brokerage would be willing to work with my availability. [link] [comments] |
| Posted: 13 Feb 2021 09:10 AM PST In Hawaii leasehold sales are very common. Id like to do a leasehold sale in CA. Thinking 50 years. That way it passes back to my kids after I am long gone. Thoughts about structuring a leasehold? [link] [comments] |
| Posted: 13 Feb 2021 09:03 AM PST I had a question on whether you can buy tax liens on delinquent property in California. I have being looking for new ways to invest in real estate and if it can be done buying tax liens seems like it could produce good returns. I heard that there are auctions for such property but I have not being able to find a website that lists the time and place of such auctions. Does anyone have more information regarding doing this in California? [link] [comments] |
| Anyone used the Knock Home Swap program? Posted: 13 Feb 2021 08:54 AM PST Was wondering if anyone has used knock home swap? It's only available in 6 cities I think but ATL is one of them. They give you a FAIR offer on your home and get you approved to buy. Then you can put in bids on homes and you move first before selling your old house. They also loan you up to $25k for home renovations on the house you're going to sell and handle the selling for you. No stress about selling your house, no showings or open houses, etc And they only charge you 1% of the cost of the house you buy so it's not a bad deal financially. [link] [comments] |
| Do you think there will be more homes for sale this summer? Posted: 13 Feb 2021 12:09 AM PST im looking to buy a condo....its dire situation...i need to move out of where i am...i wish i could wait til next year but i really need to move out. NYC / north New Jersey [link] [comments] |
| Posted: 12 Feb 2021 02:54 PM PST Lumber prices are roughly 3x the 2019 prices and about 2x previous all times high. That's ridiculous. [link] [comments] |
| Personalized letter with family pics included with offer? Posted: 13 Feb 2021 08:42 AM PST Hi Reddit fam - My husband & I are getting ready to shop for our first home - horrible timing I realize - homes around me are getting like 40 offers. I'm wondering if including a personal letter within the offer with pictures of us with our two young kids (5&2yrs) will help us at all? One realtor we used scoffed at the idea, while another we talked to a long time ago thought it was a brilliant idea? Help me reddit! [link] [comments] |
| Moving long distance to a new home ? Posted: 13 Feb 2021 02:00 AM PST I moved from Ca to Texas, and hired a "cube" mover. The deal was that we put the stuff in the cubes or pods, they move it. Well, fast forward after paying them thousands of dollars, they will neither return my phone calls or emails! Last time I talked to them, my stuff did arrive in Fate, Tx but that is all I know. Beware of movers, I thought that I researched the one I used , too. Don't use Move it, ______ it. [link] [comments] |
| Responsibility for Damages on Closing Day (TX)? Posted: 13 Feb 2021 12:18 AM PST Context - cold snap/ice storm forecast for Monday / Tuesday with a high risk of burst pipes and stuff. Our home purchase is currently scheduled to close on Tuesday. We've asked the sellers to winterize the home (ie. keep faucets open, drain backflow preventer device, etc) but have not gotten any confirmation they will / have done this. Due to inclement weather, it will also be impossible for myself (and likely my realtor) to get on-site to address this. If the pipes burst and damages are incurred on closing day, who is responsible for damages, seller or buyer? [link] [comments] |
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