Real Estate: Buyers: Tell your lender EVERYTHING |
- Buyers: Tell your lender EVERYTHING
- Some landlords sell properties as CDC extends eviction ban in the USA.
- Denver - Closed last week
- First time buyer in a multiple counter offer situation. What can I expect?
- Submitted 10 offers all rejected in past 6 months
- Is no news bad news when it comes to an offer on a house? How long should it take to hear back about an offer?
- PSA: why "sold over asking price" means nothing in this market
- How much do you discount an offer for murder?
- 9 offers over asking in 48 hrs (seller): here’s what we looked for in offers
- My offer was finally accepted!
- HOA is in debt.
- Buying in a new master planned community close to a theme park - East Coast
- Buyers of our house Googled us after closing and emailed us with questions
- At what point will this be referred to as a housing crisis?
- Question for any lenders out there
- What gives with this stale listing?
- Is Market for Investment Properties also Hot?
- How to document 1 year+ sabbatical?
- Redfin Manipulating Offers?
- 76 cash offers in 4 days!
- Costco Next to Potential Homr
- Parents want to give $10,000 cash gift for downpayment
- Listing our home - what kind of commission do we negotiate in an area with extremely low inventory?
- Looking for a real answer behind these outrageous offers
| Buyers: Tell your lender EVERYTHING Posted: 30 Mar 2021 06:22 AM PDT Had 2 clients under contract quit their jobs. They both have new jobs, but both also didn't think they needed to tell anyone. One went so far as to say "it's not the lender's business". The lender is TAKING A RISK on you by lending you money, they MUST know how they're going to get their money back!! I'm not sure how this doesn't make sense to people. ANY CHANGE in your job, your credit, your debt, even simple credit inquiries can affect your approval. Just wait, or if you can't wait, TELL YOUR LENDER about whatever you're thinking about doing before you do it. [link] [comments] |
| Some landlords sell properties as CDC extends eviction ban in the USA. Posted: 29 Mar 2021 12:33 PM PDT Just curious to hear people's reflections about the article linked below. I am not a landlord myself, but considered doing it a couple years ago, and something like this would have been financially crushing to go without rental income for so long. https://www.cnbc.com/2021/03/29/covid-eviction-ban-forces-some-landlords-to-sell-properties.html [link] [comments] |
| Posted: 30 Mar 2021 08:45 AM PDT Hey all, Just wanted to share our story in case it's useful for anyone. We had been keeping our eyes on homes over the past few years, but only started seriously looking in January. We probably saw over a dozen homes total, offered on 4.
After the second house, our lender gave us some advice to give us a bit of an edge - have some of our earnest money vest immediately after the inspection deadline to show we were serious. For example, 15k earnest money and 5k vests after 1st week (after inspection deadline). Along with that, we always had at least 20% down on all offers and waived our appraisal contingency because we had enough cash on hand. We did inspections for "Health and Safety purposes" to show intent, but we never waived it entirely. We also always included a love letter which we received positive feedback on. We knew the market was crazy, but we decided that we would buy something as soon as we had the money ready which was at the start of this year. The experience was really draining. After house 3, we stopped looking for a while because we were so frustrated. Honestly, it's all about luck IMO. We were bidding on the right house at the right time. Yes, you gotta have the cash to compete, but it does just feel like luck. [link] [comments] |
| First time buyer in a multiple counter offer situation. What can I expect? Posted: 30 Mar 2021 08:41 AM PDT I put in an offer on a townhouse which was on the market for 16 days. My offer was lower than asking (SF Bay Area) and to my surprise the seller is actually considering it. My realtor let me know that the seller was expecting one more offer before the end of the day yesterday and it did come through. Now the seller is going to counter both of our offers today. What are some do's and don'ts in this situation? I'm close to my max offer (not what the lender approved me for but what I know I can afford with financial security). Any advice is appreciated. [link] [comments] |
| Submitted 10 offers all rejected in past 6 months Posted: 30 Mar 2021 09:19 AM PDT Hey all, I'm trying to buy my first property but as title states, I've submitted 10 offers in the past 6 months and they all got rejected. My offers were all 5-10k above the asking price, and the final closing price was either around or BELOW what I had offered. There was one property that closed 10k below my offer price. I know the market is crazy hot right now, but if my order is well within the range - if not higher than the closing price, what's going on in my offer that's making them reject it? How do I make my offer more attractive? Thanks for the insight in advance ADDING FINANCING INFO I'm putting down 20% with a preapproval of well above asking price for the property. I'm not waiving any inspections/ appraisals as I need some sort of protection here. [link] [comments] |
| Posted: 30 Mar 2021 08:17 AM PDT We placed an offer on a house ( that we absolutely love) over the weekend. We were told that the sellers would be reviewing the offers on Sunday night at 5pm. At the time we placed the offer, the listing agent said that there were no other offers but that there were several people who made it clear that she could expect an offer. We did not hear back yesterday so it is already over 24 hours after the sellers should have reviewed the offer. The seller is listed as a "family trust" and our agent said this may explain why it would take longer for a decision. But I am wondering if it is likely that there may be having some bidding war among other potential buyers who bid more while we are sitting here biting our nails? Is it a red flag of this if they do not respond right away after reviewing offers or is it typical that it would take more than 24 hours to give a counter offer or to accept after reviewing offers? For some reason, our real estate agent thinks they will give us a counter offer and has been saying that since before we even placed the offer but I am not sure why he would think that. I know he talked to the listing agent so maybe she said they would counter offer but I am not sure how they would know that if she hadn't even seen our offer yet. [link] [comments] |
| PSA: why "sold over asking price" means nothing in this market Posted: 29 Mar 2021 12:56 PM PDT In this crazy real estate market, I am feeling the need to share my point of view, and this subreddit feels like a good medium to do it. First off, quick background for context. Professionally, I have a background in asset valuation. I'm considered an expert in my specific domain of private asset valuation - which, full disclosure, is not real estate. However, the same principles apply. I did some real estate work when I was younger, and helped a developer for a period of time with the financial side, so I do know real estate a bit. To start, they key is to understand what "market price" means. This is the primary principle of asset valuation - "market price" for an asset is what a ready, willing, and able buyer will pay for an asset. In the real estate market, the advertised price is an "asking price" - which is the price that a ready, willing and able seller is willing to sell the asset for. Problem is, when sellers decide on their asking price, they don't know what a ready, willing and able buyer will pay for the asset. They do know, however, what a ready, willing, and able buyer paid for similar assets by looking at recent sales. But, since no two houses are exactly alike, it's difficult to put an exact price on any house. If they hire an experienced real estate agent, a seller will get good advice and the agent will help with pricing their home properly. It's still an inexact science, but the best agents are remarkably good at this. Their pricing recommendation is driven by a careful analysis of comparable homes, using a price-per-square-foot approach to put different sized homes on equal footing, with adjustments for things like the house's condition, lot size, potential for expansion, finishes, etc. However, not all agents are created equal. In fact, no offense to any agents on this sub, but the barrier to becoming a licensed real estate agent is very low. In a lot of cases, sellers working with inexperienced agents will often price their homes based on somewhat less precise factors - things like "I paid $X for the house and put $Y into improvements, so I want to get at least $X + $Y for the house" or "Bob next door got $A for his house three years ago, and I think my house is better, so I should get more than $A for mine." Point being, asking price does not always equal market price for a variety of reasons. I find it's best to understand this with an example. Say you have two houses, House A and House B, that are completely identical. They are next to each other, were built at the same time, and have all the same finishes / etc. In theory, the two houses should have the same market price. Let's say for this example, that amount is $1m. Seller A bought House A in 1990 for $250k. They have a good agent who does a market analysis and recommends they list their house for $1m. Seller A receives an offer for $1m. They believe this is market price, so they accept the offer at asking price. Seller B bought House B in 1998 for $360k. They don't have a good agent. They decide that, since they put $100k of work to the house over the years, and the market has gone up, they want to get at least what they put into the house, plus some more. They list the house for $720k. Seller B receives an offer for $900k. They accept it. Can you believe it?? The house sold for $180k over asking price! I can't believe how crazy this market is! People are spending crazy amounts of money! /s This may seem like a silly example, but I've seen this exact conversation occur over and over and over again. Saying it's crazy when house sells "over asking" is meaningless because it assumes the house was priced properly to begin with. Yes, things are still going to sell over asking even if they are priced properly because the market is crazy. But, don't get intimidated that a lot of houses are selling significantly over asking. I've seen a lot of houses that come on the market and my first reaction is "this is WAY underpriced" - and sure enough, those are the ones that go really high. The biggest thing to take away from this post is, don't get sucked into the "over asking" frenzy. Use an experienced buyer's agent who understands the market, or do your own homework and understand what "market price" is for the houses you are looking at. I'd be happy to do a Part II of this post discussing more specifically how to think about market price. Again, I'm not an expert, but I did do this a bit early in my career so know enough to educate. [link] [comments] |
| How much do you discount an offer for murder? Posted: 29 Mar 2021 09:49 PM PDT This is a real question we asked our realtor this week. A story with twists and turns ahead. Started looking for homes in a popular area of the US. Find a cute home, put in our first offer, goes 100k over, cash. Sad, but not surprised, we regroup and look again. Find a 10x nicer home, cooler area, twice as big. Assemble offer and send to realtor. Start googling the neighborhood in more detail. Find an open homicide case for the town... oh no... same street... oh no... across the street from the property. Shit. Do we pull out? No...we are pretty tough... but we now don't feel comfortable going over asking price. Call realtor and ask how much to discount the offer for murder? 25k seem reasonable? We laugh nervously on the phone. But then actually really have to decide this number for real. Start panic researching the murder in this tiny town. Find the private town Facebook group. Wait to get access. Turns out guy murdered was a huge jerk, like big time, violent, for awhile, to random people in town, unprovoked. Lots of comment threads pointing to many who "plan to go to his house and solve the problem since the police aren't." Not making this shit up or exaggerating in the slightest. Not saying he deserved it, of course, we're not monsters. RIP. But in terms of our own safety we decide welp.. vigilantes justice, I guess? Put in lower offer, no contingencies, eff it. Maybe we need to let others know about the murder to help our offer? But still, RIP. We're pretty certain we won't be even close. Somehow get into the top two?! It's us, no contingencies... and a contingent offer 50k more. We go up 25k, cause why not, now we've decided the murder was fine I guess. They verbally accept our offer.....! And 1 hr later switch to the higher offer. TLDR Found out about an open homicide across from the house we were offering on. Had surprisingly little regard for this due to the insanity of the market right now(or the low bar for our own personal safety). Tried to solve homicide using FB like a truecrime podcaster. Went in fast and loose with a non contingency offer, still lost. Even murder can't slow down this market. [link] [comments] |
| 9 offers over asking in 48 hrs (seller): here’s what we looked for in offers Posted: 29 Mar 2021 05:28 PM PDT Hey home buyers, I wanted to provide some feedback in hopes that it might help anyone who's having trouble winning a bid on a home purchase. In the months leading up to listing our house, I read dozens of comments on here that, "No one will accept an FHA offer in this market!" Malarkey. I'll share our situation and what we looked for in the winning bid. We have a 25 yr old (but completely updated) townhouse in a very hot sellers market. Not nearly enough homes for sale and too many buyers looking. Good school district, elem school and public library within walking distance, nice community, lots of parks, soccer fields, playgrounds, community pools, kids riding bikes, people walking dogs, very active community near restaurants and stores, etc. It's a very sought after area. We listed our house Friday night, had 21 showings over the weekend, got 9 offers in 48 hours, and went under contract today. My husband and I either need to buy our next home contingent on selling this one, or wait until the settlement is over to make an offer. (Student loans...) We both WFH and we have a baby, so moving twice would be extremely disruptive to our lives and to our son's sense of security and routine (AKA sleep regressions, bad behaviors, lots of bickering, etc.). Finding a buyer who would allow a 60 day rent back was not only desirable, it was a non-negotiable. We didn't go with the highest offer. We went with the most flexible. 7 of our 9 offers would allow us to rent back for 30-60 days. We appreciated their flexibility and automatically nixed the 2 who wouldn't let us rent back. Of the remaining 7, only 2 were conventional. Both offers were above asking (not the highest), but wanted $5,000 in seller concessions and wanted us to be contingent on us making repairs as noted in the home inspection. Asking sellers to make repairs and pay your closing costs in this market? Dream on. That left us with 5 offers. The highest was for $13,000 above asking. They didn't offer to cover an appraisal gap. They wanted to back out if it didn't appraise or have us reduce the price. Goodbye. Of the remaining 4, the one that stood out to us the most was the one who was the most flexible. He was the ONLY one with an escalation clause ($3,000 over highest bid up to $X). He was also willing to pay up to $5,000 appraisal gap and put down $6,000 EM (shows he's serious) AND is letting us rent back 59 days from settlement at a very low price. (He's in a lease until the end of July anyway.) He's doing a P/F home inspection, so as long as they don't find anything major, he's sticking with it. He is FHA but already has a commitment letter from his lender. I realize a lot can happen in the next month til closing, but it can happen to any property, whether your buyer is conventional or FHA. Anyone can lose their job, pass away, etc. I guess my message is: the most appealing offer to us was the most flexible one, not the highest one. People who were asking US to do things for them were a joke (this isn't 2012...). People who made huge offers but weren't willing to do an appraisal gap- why?? People who wouldn't let us rent back made some high offers, but not enough for the expense of us moving twice, signing a lease, and the general PITA it would cause. Maybe consider looking lower than your max budget so you have more room to play with. Best of luck! [link] [comments] |
| My offer was finally accepted! Posted: 29 Mar 2021 03:32 PM PDT It's a backup offer, but I can still dream while searching in this crazy market...right? [link] [comments] |
| Posted: 30 Mar 2021 04:26 AM PDT I'm under contract for a $310K home in GA. I recently learned about the HOA's debt troubles. Due to the size of the community, only certain sides of the community can be fixed at a time (as the budget permits.) and some property lien's are in place because dues aren't being paid. The side of the community my house will be on, is the side that has to wait for a larger budget, before things like landscaping, enforcing HOA regulations, etc.. will kick in. There have been some issues with individuals/groups of teens, checking for unlocked car doors in the middle of the night/early morning. This would be my first home purchase. Imo some degree of crime is everywhere, and unavoidable unless your pockets are very deep. Are the debt and lien's enough of a reason to walk away from the purchase of the home? [link] [comments] |
| Buying in a new master planned community close to a theme park - East Coast Posted: 30 Mar 2021 08:01 AM PDT There is a new master planned community being developed that'll eventually have about 30k residences (next 7-8 years) along with a few million sq footage of commercial space and a downtown type area. It'll be next to an existing town of about 200k. This area is also about half mile away from a theme park (similar to Disneyland). And about 40 minutes away from a major metro area by freeway so the community is considered suburbs. This is on the east coast. I'm wondering if buying early phase in such a development usually works out well from an appreciation standpoint. What are some things to consider? Has anyone experienced buying in similar locations before? [link] [comments] |
| Buyers of our house Googled us after closing and emailed us with questions Posted: 30 Mar 2021 07:55 AM PDT They obviously have our names from all the paperwork, and my husband is a software engineer and maintains a personal website where his contact information is public. They also cc'd the shared email address we set up specifically for all house-related communications, which I'm assuming they have because our agent forwarded (not copy-pasted) our offer to leave them things like a garden hose and dehumidifier. My point is, they didn't have to jump through any large hoops to track us down. The email is friendly and highlights some shared background -- one of the buyers is also a software engineer (which is unsurprising; they sent us a question via their agent during escrow asking us to describe the network topology of the house), and based on my husband's website bio, they previously worked for the same company, albeit in different offices in different countries. But they also asked some questions about the house. Specifically about the water softener + filtration systems in the basement, where the external spigots are to connect a hose, and any suggestions for maintaining the lawn. Based on some back-and-forth during escrow, I wouldn't be surprised if the buyers were inexperienced with homes on well water + septic tanks. Answering these questions seems harmless. But I've heard advice not to sell your car to people you know, because they'll keep coming back with more questions and blame you for anything that goes wrong. Our disclosure list had several things on it -- the house isn't perfect and we know it -- and I don't want to end up in a similar situation. Would you answer any questions for buyers of your property that weren't sent via agents? What risks could we be opening ourselves up to by staying in contact with them? [link] [comments] |
| At what point will this be referred to as a housing crisis? Posted: 29 Mar 2021 10:01 AM PDT Feel like it will help mentally if ppl started calling it what it is. Low inventory + endless money printing has created a housing crisis. [link] [comments] |
| Question for any lenders out there Posted: 30 Mar 2021 09:43 AM PDT Hey guys, looking for some advice here. Prior to my home purchase I was very upfront about all my accounts to my lender and had more than adequate cash to close as well as the mandatory reserves + another 20%. Despite this, they are asking me to liquidate investments that I don't want to liquidate. Can they do that? I don't know if they are just not reading the statements or what. Or if I should just move all the cash in one account so they see it all in one place? I feel like they are rushing and not reading the statements I sent. The lender is quicken. Has this happened to anyone else? I'm scared to move things around b/c they want everything in statements which is only a snapshot at the end of the month and obviously won't update for a few weeks. 😳 it's giving me a lot of anxiety as I don't want to sell my investments and trigger a massive tax event. [link] [comments] |
| What gives with this stale listing? Posted: 30 Mar 2021 09:37 AM PDT So we've been looking to buy and real estate is crazy. Then, here's this house that's been on the market for 3.5 years! Why is this sh!t-or-get-off-the-pot even a thing right now? The listing agent does price reductions (~1%) while other area properties fly by. It doesn't appear it ever went pending, so it's hard to say if there was a bad inspection that's a buyer turnoff. The house is pretty chopped up but if you discount part of the "extra" disjointed space, it's getting close to a reasonable price vs smaller homes. Agents: what's likely going on here? https://www.realtor.com/realestateandhomes-detail/319-Forest-Ave_River-Forest_IL_60305_M86549-35114 [link] [comments] |
| Is Market for Investment Properties also Hot? Posted: 30 Mar 2021 09:33 AM PDT We own a single family home in the DC/VA/MD area within a mile from a metro stop that we converted to a rental a couple years ago. Currently have a family living there with 2 years left on lease. They are current and have always paid on time through COVID. Generally curious if there are buyers willing to pay the current single family home premium for a nice condition house with stable tenants? Or is it more for move in now places? We don't need or really want to sell. Just curious. [link] [comments] |
| How to document 1 year+ sabbatical? Posted: 30 Mar 2021 09:08 AM PDT So yeah, people take sabbaticals. Of course, people lie as well. Do I need to submit proof like plane tickets, receipts to show I really was on a sabbatical? And that was the nature of my absence? My primary concern is that the opioid epidemic is so huge, that lenders might be spooked about someone who just disappeared for a year as that probably looks the same as drugs, without good evidence. I also know some people who had high paying jobs but just lost their minds (and homes, divorce, life ruined etc) who got mixed up in opoids so I can see why lenders should avoid that like the plague. This post is 100.00% serious btw, not some angle to talk about a hot topic or anything. [link] [comments] |
| Posted: 30 Mar 2021 08:11 AM PDT I'm in based in D/FW and a friend of mine listed his house this past Sunday. 17 showings on Day 1, 10 scheduled already for Day 2. It is listed through a traditional listing agent, not the likes of OpenDoor, Redfin, etc. As I am tracking his house I have it "Saved" in my personal Redfin account. This morning I received an email from Redfin, specifically focused on my mate's house, with the Subject Line of: "Hurry! Offers due on HOME_ADDRESS by Mar 30 at 8:00 pm" In the body of the email it says, "Reviewing Offers Tue, Mar 30 at 8PM" My friend has given no instructions to his listing agent to advertise a "get your offers in today!" mandate. There are no such instructions on other sites or MLS. I can only conclude, therefore, that this is a Redfin-generated attempt to drive buyers to a Redfin agent. Maybe I am just naive, but is this standard behavior by Redfin and their ilk? And how can it be that a non-affiliated party can be permitted to interfere with the offer process like this? Again, my friend has no association with Redfin whatsoever. How, therefore, are they permitted to provide instructions to the public on a property in which they have no interest? [link] [comments] |
| Posted: 30 Mar 2021 08:08 AM PDT How is this a thing? Is this an isolated bubble or is this going on all over the country? I wonder if this is related to the almost doubling of lumber prices in last year making existing home purchase more attractive/cheaper than new construction. [link] [comments] |
| Posted: 30 Mar 2021 08:07 AM PDT My husband and I put an offer in on a house a few weeks ago but we were beat out by a cash offer. However, last night out realtor got a call from the listing agent saying the deal was falling apart for financing reasons and they were asking if we were still interested. We LOVE the house and it's in the same neighborhood as my husband's dad, which is great because we have one daughter and one on the way. It's a great area, the sidewalks are all paved and it's well established. BUT there is a big piece of property at the end of the road of this house that is being turned into a Costco. They've already started primary construction and will probably have the whole thing built next year. There's still a question as to where the entrance would go and how much it will increase traffic. Costco is my biggest concern with this house. We have no idea how things are going to change in the neighborhood and I'm concerned how it will affect property values/resale value, especially considering that this house is on a street that connects to one of the roads surrounding the Costco. Any thoughts on this? [link] [comments] |
| Parents want to give $10,000 cash gift for downpayment Posted: 30 Mar 2021 08:01 AM PDT I'm 22 and am looking to purchase my first house. Since I was a kid my parents have saved all of my cash gifts from birthdays and holidays and any left over spare cash they had and set it aside for me. They now want to gift me this cash but we're unsure of the proper paperwork necessary to do so. Do they need to report anything to the IRS? We plan on filling out a gift letter but also need to know if there is anything to worry about considering it's cash and not a bank transfer. Any tips? [link] [comments] |
| Listing our home - what kind of commission do we negotiate in an area with extremely low inventory? Posted: 30 Mar 2021 07:47 AM PDT I'm lucky to have a house in South Florida which is zoned for the best schools and is highly desirable. We're interviewing Realtors today and tomorrow, all very reputable and have the best Zillow reviews for our zip code, but not sure what we should push for in regards to commissions. My house will likely have acceptable offers on day 1, and I need as much money in our pockets as possible if we're going to buy a new property (we're headed to a rental until the market cools down). We're not entertaining selling by owner, we're moving out of state and won't be able to manage that. Any advice is so appreciated, thank you! [link] [comments] |
| Looking for a real answer behind these outrageous offers Posted: 30 Mar 2021 07:41 AM PDT Just curious, for those of you who are/did offer 40,50,60 over asking price, what is the thought process behind this? I am just having a hard time understanding what could make that a solid investment decision. I can see 5-10 over being reasonable to get in, but when we are talking about a year's salary more I have to wonder what the long term benefit is. Is reverse equity not a concern? What an absolute nightmare for a first time home buyer with no assets. Sigh. [link] [comments] |
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