Real Estate: Private equity firms buying up single family houses |
- Private equity firms buying up single family houses
- UPDATE: Astronomical water for first month in new home. Error or major problem?
- Tell me about your buying agent
- List price is very low compared to comps - Should that affect our offer?
- What are rates doing this week? (and next)
- Is it worth selling in this market?
- Can seller walk away from low appraisal?
- My house buying journey
- Watching old episodes of Property Virgins.
- One tip for finding a new home if you can wait a month or two (NC)
- San Jose ADU: How much to build, how long it takes, what if house already have ADU without permit?
- A quick update on the San Francisco condo market
- Is there a lot of variability between appraisals on a home?
- People in super hot markets right now - how long did it take to hear back from seller after offer?
- Purchasing Grandparents Home
- Where in the world is everyone going?
- Where is all the cash coming from????
- Who's buying up all the raw land? (CA)
- Cash buyers, how did you close?
- First Time Seller Question...
- What happens when a seller lies on a Residential Real Property Disclosure? Ways to prove?
- Thoughts on taking a hard money loan to make a cash offer?
- Depreciation
- Is a 1 percent brokers compensation
| Private equity firms buying up single family houses Posted: 04 Mar 2021 08:17 AM PST So, I read the other thread where someone was asking where all this cash is coming from in this tight housing market. Someone suggested it must be private equity firms like BlackRock and other REITs buying up single family houses. Google search returned couple of news about it from last year but I could not find any numbers. Do you guys think it is adding to the chaos of housing market now? Any official numbers and source you know? [link] [comments] |
| UPDATE: Astronomical water for first month in new home. Error or major problem? Posted: 03 Mar 2021 04:54 PM PST Several months ago I posted here about a $532.66 water bill we had received for the first 38 days in our new home. Now this seemed a smidge high so after doing some of the helpful things people suggested I was able to determine that it was indeed a leak on my property. The irrigation system we have installed has drip irrigation that would run for 1 hour every other day, and when the company that installed it came out to check they found several breaks in the line that looked like raccoon teeth marks or something similar. They fixed the issue, I notified the water bureau that a leak had been found and fixed, and they notified me that they would send someone out to come do another reading, wait two weeks, and then come back out to read it again. Based on the usage in those two weeks they would adjust the reading accordingly. Hooray! That was back in November. I did not hear anything from the Water Bureau about the adjustment until I got our next bill, which still had the $532.66 charge from our first month (we didn't pay it because I wanted to see what the adjustment would be and they aren't shutting off water due to non-payment because of covid). Called them up, they were like "oh haha...whoops looks like we forgot to adjust that for ya." I waited about a week for them to touch base with billing and they emailed me saying that they adjusted our bill by $448.89, so we now only owe $83.77 for those first 38 days! Needless to say I'm very happy to only have to pay 15% of that original bill. TLDR; got charged $532.66 for 38 days of water use last year, found a leak and fixed it, told the water bureau and they (eventually) reduced my bill by 85% down to $83.77 for that billing period. [link] [comments] |
| Tell me about your buying agent Posted: 04 Mar 2021 07:46 AM PST I'm curious what separates an ok buying agent from a great one. Do you have an awesome agent? What makes them so great? The reason I ask is because we are trying to figure out if our lack of luck is purely related to the insane market conditions right now or if our agent is partly to blame. We are in SoCal and understand that the crazy market is fueled by the low rates, lack of inventory, glut of buyers and Covid. We are not first time buyers and have purchased several homes in the past, but this is our first time in the West Coast market. We are currently renting. I recognize we haven't been looking that long. I found the realtor we are currently using at an open house about 2 years ago when we had just moved to the West Coast when we were only casually looking. We decided to rent longer after looking at a few houses and then Covid happened and well you know the rest. This agent followed up with me regularly while we sat out and engaged us again at the end of last year. We decided to start looking seriously at the beginning of this year and to give this agent a try (perfect timing with this nutso market...sarcastic chuckle). We gave the realtor a VERY short list of things we are looking for, the area we are looking in, and our max price. We started out with a list of deal breakers which we have significantly relaxed since we started looking seriously. We have looked at a bunch of houses and put in one serious offer so far (we were in the process of writing another when we found out our 30k over asking offer was going to be about 30-40k less than where the highest bidder was so we didn't submit). I have been religiously refreshing Zillow, Redfin, Realtor.com, Trulia etc. and have a ton of automated alerts from those sites because the access to the MLS that is provided by the realtor isn't great. I get no updates from the realtor's MLS. I have been pinging the realtor anytime I find anything coming soon or that meets our criteria to try to get an appointment scheduled. We don't get much (if anything) presented by the realtor to us. We also seem to be missing out on seeing places because they are "fully booked" (even when I literally saw a listing come up and asked to see it right away). Should the realtor be more proactive and doing more to help us find something or are we simply a victim of the current market conditions? Trying to decide if we should give this more time or move on to someone who is more aggressive. [link] [comments] |
| List price is very low compared to comps - Should that affect our offer? Posted: 04 Mar 2021 09:04 AM PST The house we just toured is listed at $151/sq ft, so I was surprised it is in great condition with the perfect yard. I see no flaws, but of course the inspection might come back with something. The thing is, the houses in this area sell for $175-190 per sq ft. We have a ton of comps in that range. That is a HUGE difference. We would be 40k over asking to offerr 175/sq ft, which still feels like a deal. Why might a realtor list a house this low? Nothing around this area has listed this low in a while, unless it was falling apart. I'm not sure how to approach this offer. [link] [comments] |
| What are rates doing this week? (and next) Posted: 04 Mar 2021 06:27 AM PST I heard that rates are slowly creeping up. I've emailed my banker a few times where rates are at (800+ FICO) and they have not gotten back to me. I'd just like to know what you all are seeing out there as we are looking at a few houses this weekend. Thanks! [link] [comments] |
| Is it worth selling in this market? Posted: 04 Mar 2021 09:27 AM PST I have been a homeowner for about two years now and have watched the value of my house rise with this increasingly small inventory on the market. I enjoy my current house, but I also know I will outgrow it within 3 years probably. I have heard that you should stay in your house for at least three years to make it worthwhile, but I have this gut feeling this pandemic inventory shortage could be a good selling opportunity. My other big concern is that I will just have to buy at an inflated price or not be able to find a house at all once I sell. I am curious what others think about selling right now in this market. [link] [comments] |
| Can seller walk away from low appraisal? Posted: 04 Mar 2021 02:50 AM PST Edit: I'll update tonight if we hear back from listing agent. For now, thank you to everyone who has provided feedback. I understand this whole process a lot more now, and I can't help but be a little frustrated at how little and how poor of advice we were given by our realtor. It sounds like we may need to seek a new one, although I'm hesitant about how I'm going to know who is going to actually be more helpful/knowledgeable considering ours was recommended to us and has plenty of good reviews. Ugh 😩 Lesson learned, and thank you all for teaching it So we're under contract for a house. It was listed at 199,900 and we offered 235 (everyone knowing it would not appraise for that) and we had a gap clause that said something along these lines "buyer will pay $1000 over appraisal value, not to exceed $235,000". The seller asked us to pay their closing costs, so we're doing so. They also wanted a quick closing, so we're doing that as well. We've paid for inspection, appraisal and home insurance and closing is in 7 days. The house appraised for 205, which makes our offer 206, and now the seller is demanding that we pay 210 or they walk away for a backup offer. We've all signed the contract, and my husband and I have held up our side of the bargain. Can the seller really just walk away? Our realtor said her legal team was apparently unsure of whether they could or not. My understanding is that they agreed to our appraisal gap, and there is no contingency where the seller can walk/cancel if it appraises below a certain amount. Wouldn't them walking be breach of contract? We've already put 2000 into this process, and now we're going to lose that and the house just because the seller wants more than what was in the contract? [link] [comments] |
| Posted: 03 Mar 2021 09:56 PM PST (louisiana) It all started when we had 90 days left on our lease. At first only my fiance was preapproved for 150k with USDA rural development loan. The very first property we saw was a new construction that was 35-40 minutes away. Once we were within one mile of the neighborhood, we passed a polystyrene plant. The house was ok, but the commute and the giant industrial smoke clouds a stone's throw away were way too much to compromise on. At this point, I joined in my name for the financing and we were approved for 225k. We found a great place at the top of our budget and decided to bid list price. Right when we got home from the showing (we were the first to look at it), I noticed it already went pending. We then looked at several houses in a neighborhood that I found kinda sketchy, but still rural development and a little closer commute. Turns out all the houses were flooded zone AE, so we moved on from that nonsense. Then we bid on a FSBO place in flood zone x with a contract printed out at the showing, but unfortunately, they decided to sell to their friends. Our agent even offered to only take 2%. This house was perfect but at the high end of our budget (209k). This is when I discovered r/realestate and saw exactly how hot the real estate market was all over the country. My partner was devastated, tears and all. I decided to take over the house search and vowed not to get too emotionally invested in any property. We also changed our priorities at this point, that being good schools and flood zone x. Finally, we found a place 1 mile down the road from the previous, updated and at the low end of our budget at 175k. Our agent found out that there were 4 other offers currently in the mix. We put our best and highest of 183k with no closing assistance. Offer accepted and we just trimmed 26k off our loan! Our interest rate was set at 2.75 and we were ecstatic. We paid 3.8k in closing costs and to be honest it still hasn't set in how lucky we were. [link] [comments] |
| Watching old episodes of Property Virgins. Posted: 03 Mar 2021 04:20 PM PST The real estate market have definitely changed the last ten years or so. Watching old episodes of Property Virgins are almost surreal. Host: This property was listed for $750,000 two years ago. The asking price today is $395,000. Buyers: We love this house. It's everything we wanted in a home. Let's give them a low ball offer of $365,000. Host: The seller countered with $375,000 and will leave the washer and dryer. Buyers: We are worried that the market might drop even more. $365,000 is still our best offer. Host: The seller decided to meet in the middle and now asking $370,000. Buyers: This home is perfect, but $370,000 is too much. We are walking away. [link] [comments] |
| One tip for finding a new home if you can wait a month or two (NC) Posted: 03 Mar 2021 04:07 PM PST After about a month of looking in one of the more desirable towns in North Carolina, we weren't seeing hardly anything come in the market. Last week I decided to email about 20 of the local builders to see what spec houses they had upcoming that fit what we were looking for. Of the 20, about half of them had something under construction that was a possibility. We decided against a few due to price/location but we followed up on 4-5 of them. We just went under contract today, before the house hit the MLS, so there was no bidding war. Additionally, the builder has agreed to make a few small modifications we'd like. We're going to have to wait a bit (end of April), but considering what the market was looking like we may have had to wait that long to find a suitable home that was already built. Just thought I'd plant the seed for anyone else who is having a hard time finding inventory that matches what they are looking for. [link] [comments] |
| San Jose ADU: How much to build, how long it takes, what if house already have ADU without permit? Posted: 04 Mar 2021 10:33 AM PST Hello, I have some question about ADU in San Jose, CA.
Thank in advance :) [link] [comments] |
| A quick update on the San Francisco condo market Posted: 03 Mar 2021 08:48 PM PST Started the search in early Jan. Approved for financing at up to $1.3m at 20% down, contingent on moving my personal banking to them which annoyed me. First weekend out, saw a place we loved, listed at $1m flat that was clearly going to go over that. Offers were due the next day, selling agent said they sent 60 disclosure packets. We wrote an offer 20% over asking. We lost, the condo had 27 offers and was going for $1.3m all cash no contingencies. Next weekend, see two units we like that came on the market that week. We actually had to see the units on Monday because Sunday showings were booked up. Tuesday one unit accepted an offer for $1.25, 200k over ask. Offers were due on the second unit on Wednesday, which is listed at $1.2m. I call my lender and get approved for an extra 50k so we can make a $1.35m offer with no contingencies (other than financing appraisal). This worked out to about $1,400 per square foot. Condo gets 17 offers, were apparently "within a group of 5 near the top" but seller was going with an all cash offer that was "significantly higher than the rest". Selling agent said it was good it was all cash because the unit would never appraise that high. We are taking a break from the search, as you really need to be dialed in every weekend to be competitive. Our premise was we could still get back into condos before vaccines rolled out and everyone flooded back — but I think that window has now closed. Good luck everyone. [link] [comments] |
| Is there a lot of variability between appraisals on a home? Posted: 04 Mar 2021 09:13 AM PST Im selling my florida home. Its a builder home, lots of similar homes in the community. I bought it for 700 k back in 2020. Now the same homes have been selling for 750 K (same lot, same upgrades etc), and are sold out. I also upgraded the home quite a bit with a pool, insulation, fence, landscaping, master closets, etc and put about 70 K into the home. I listed the home for 840 K and had 2 offers for asking. Unfortunately my accepted offer only appraised at 720 K. This is very very very low compared to every other home in the entire city which sold recently within 6 months. Even lower than what the builder has sold homes for just in January 2021. The home went back on the market and dozens of people showed up, now Im getting offers for 850-900 K on it but again, most of these buyers can only match close to the appraised value. This is my first home sale rodeo, I do have a very good realtor, but I am curious for the broader picture. At the end of the day (unless its a cash offer which is probably rare these days given low interest rates), is the bank the determiner of my property value and are offers on their own bogus (should I be focused more on the past appraisal?) How much variability can I expect between appraisals that is normal? Is it possible for the next appraisal to be even lower or much higher? [link] [comments] |
| People in super hot markets right now - how long did it take to hear back from seller after offer? Posted: 04 Mar 2021 09:09 AM PST I'm sweatin bullets over here! Would love to hear some of your timelines just to pretend I have some semblance of an idea of how this will go 😑 (We're in the SF Bay Area, almost 24hrs since offer. 19 other offers on this house. Ours should be competitive, but who knows what we're up against. We went 180 over asking, no contingency except appraisal, 30% down). [link] [comments] |
| Posted: 04 Mar 2021 06:57 AM PST Hi Reddit - I'm considering Purchasing my grandparents home. The home is located in a fantastic part of town, with a great school district but needs some repairs and updating. They are willing to sell to me at a bargain price (in the low 200's) comps are going in the low 300's after updates. This transaction would take place within 1-3 years from now as my grandfather's health declines (sorry to be morbid) they are looking downsize after his passing... I have a few specific questions:
Additional information is this transaction would be in Missouri. I'm not sure how that could effect my tax implications. Thanks in advance! [link] [comments] |
| Where in the world is everyone going? Posted: 04 Mar 2021 05:17 AM PST Hey y'all - I purchase my first property and primary residence in Aug. 2020. The market was hot at the time, but not nearly as crazy as it is right now. Recently, my mother passed away and my dad isn't financially capable of affording a home on his own, so I decided to help him with purchasing a home. Taking a look at the market today, housing prices have gone up 15-20% and there hasn't been a fall in rental prices either. My biggest question is.. where in the world are all these home buyers coming from? I recognize interest rates are low so everyone unaffected by covid is likely shopping, but you would anticipate rental prices falling as more people become home owners.. but that's not what we're seeing. Could this just be economic lag? Interested in hearing your theories. I saw a map yesterday that showed home inventory is down by about 50% in most previously "low cost" states and the only places with a surplus of YoY inventory are DC and Hawaii... Because of where the market is and this being my second mortgage, I'm strongly leaning towards waiting and renting him a place for a year. Interested to hear the subs thoughts [link] [comments] |
| Where is all the cash coming from???? Posted: 03 Mar 2021 08:51 PM PST The market seems to be getting worse..I understand interest rate is still low but where the hell is all the cash coming from??? [link] [comments] |
| Who's buying up all the raw land? (CA) Posted: 04 Mar 2021 10:35 AM PST I'm in a hot market in Southern California and have always kept an eye on off-grid raw land (no wells, utilities, or paved road access) out in the rural county areas. For the last 10 years, up until about 6 months ago, a 1-2 acre parcel with a small buildable flat spot would go for about $90-150k and sit on the market for months to years. Anything with a road, electric, well, and approved septic would be about double that. Multiple properties I've had on my radar for 9+ months went under contract in the last 30 days. New properties in the .5-10 acre range are being sold a couple weeks after listing, others have been re-listed at a 10-15% markup. Some of these have failed perc tests and/or >80% unbuildable area. None of these are going to be eligible for a conventional 30 year mortgage, and I doubt the USDA loan program moves this fast. Are these speculative investors buying with cash? City slickers hoping to build off-grid cabins? #VanLifers buying a $100k parking spot? I know this market is nuts, but I feel like I'm taking crazy pills! [link] [comments] |
| Cash buyers, how did you close? Posted: 04 Mar 2021 10:33 AM PST We are buying cash. We have the option to do wire transfers or bank checks. I'm nervous to wire that much money. If we do a bank check will this delay the process significantly? Would it cause everything to fall thru? [link] [comments] |
| Posted: 04 Mar 2021 10:33 AM PST We just had our second child and are looking at buying our second home. Our current house is a townhouse built in 2009. 3 stories in pretty good shape but there are definitely some things that could use some doing. I figure I need to be fixing chipped paint, replacing lightbulbs so they're all the same (?), patching up nail holes in walls, etc. but what about appliances and warped carpet? I have a working oven and a working dishwasher but they are both old (originals from when house was built) and show signs of wear. The dishwasher "start" button cover has come off and occasionally it doesn't start unless you do a little troubleshooting. Oven works fine but needs to have glass replaced. Carpet in all three bedrooms is lifting. I would really not want to pay to replace if there is an easy fix for lifting carpet... When we were talking about overall selling price do appliances & carpet factor in much to this number? I can replace the dishwasher and the oven with brand new, decent appliances with installation for about $12-1400. I could also look into newer used appliances. Just curious if these fixes will significantly up my overall selling price? Thanks so much for any input. [link] [comments] |
| What happens when a seller lies on a Residential Real Property Disclosure? Ways to prove? Posted: 04 Mar 2021 10:22 AM PST Husband and I are under contract to buy a property on a lake. In our town, lake properties are very desirable to some, but a majority of them are in a bad school district. We found a hidden gem (or so we thought) - a FSBO house on a lot, with a separate parcel on the lake (beneficial tax wise for lake access not being on the parcel with the home), but this is one of the few houses on the lake that is in a good school district, and also outside or city limits (another tax benefit). Total of 1.3 acres with both parcels. The house is 90 years old and will need completely remodeled, and that was factored into the price. Anyways, when we signed, she checked "no" on every box on the disclosures, basically saying she is not aware of any issues with the house. Upon further research, we've found that the house has had several pending sales, and has been on the market for 3 years, on and off. The seller is telling us every sale has fell through due to buyers not being able to afford financing, which now we're finding hard to believe (the price is much less than what you'd pay for just a .5 acre lot on the lake). We had our inspection yesterday. Not only does it need new windows, but new framing. Not only does it need a new roof, but new decking under the roof, new soffit, new fascia, new gutters (no existing gutters so the water has destroyed the wood). Not only does it need new flooring, but new floor joists and new subflooring. The list goes on and on. Estimated 50k in deferred maintenance that needs to be done before we can even think about a remodel. Is there any way to find out more info on why this has fell through? To find out if home inspections have been done? To find out if she knew of any of these things? We want to get all of our ducks in a row before we present her anything pertaining a repair addendum. Her real property disclosure will now have nearly every box checked..so we have a hard time believing she didn't know of any of these things, since the house has had multiple pending sales. We are considering still buying, mainly because the land is valuable to us...but we want to negotiate the price and know if she is trying to swindle us. Any help or insight is appreciated! [link] [comments] |
| Thoughts on taking a hard money loan to make a cash offer? Posted: 04 Mar 2021 10:09 AM PST So I'm looking for an investment property in Houston. Obviously the market is madness right now and every reasonable offer I'm making is getting rejected (I'm talking about 10k over asking on a 200k house). Obviously everyone in this sub is experiencing this. I'm getting frustrated and am just thinking that the only reasonable thing to do here is to get a hard money loan and refinance. I don't see an end in sight and have the finances to handle a loss if it comes to that. A couple questions:
[link] [comments] |
| Posted: 04 Mar 2021 10:01 AM PST How do you calculate depreciation for a rental property? I have read that land is not included in the calculation. Where do I go to find out how much the actual value of the property is to depreciate? I see that my California property tax has a breakdown: Land, Improvements, Total L&I. Next Taxable Value. Thank you for your help. [link] [comments] |
| Is a 1 percent brokers compensation Posted: 04 Mar 2021 09:24 AM PST My real estate agent listed my house and is offering 1 percent to the buyers agent how will this affect the sale of my house, is 1 percent appropriate [link] [comments] |
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