Real Estate: Starting to see price drops and more reasonable listings in rural Missouri. Feeling a bit relieved |
- Starting to see price drops and more reasonable listings in rural Missouri. Feeling a bit relieved
- 90% LTV Jumbo Cash Out: 2nd largest lender in the country massively bullish on real estate
- Finally had an offer accepted (Seattle)
- [Southern IL] My parents are looking to sell ~15 acres of farmland that's been in my family for a while, and I'm planning on buying it but have no idea where to start.
- Buyer changed mind 1.5 weeks before closing
- Buying a house anonymously?
- Do realtors work with a lot of loan officers?
- Listing strategies in hot markets
- Odd strategy by seller? (to my benefit)
- [New England] As a complete noob, am I crazy for considering this? What else should I be considering?
- What date does capital gains go off of (contract,close,move in date)?
- Can I negotiate a lower rent if LL refuses to fix crumbling foundation/soaked basement?
- House has been sitting in a "hot market." Just drop price or relist?
- Buyers asked for a repair in contract that would make the house dangerous. They only asked for an insulated door without asking for the installation of an air intake.
- Realtor trying to evict me to sell house.
- Need help from a Loan Officer and discrepancy in DTI
- Capital gain tax
- Regretting Selling My House in May 2020
- Looking for thoughts and experience on owning Vs renting with company relocation in the mix and future relocation may happen.
- How much does riverfront add to the value of a property? Details in body.
- 25 m here, wondering whether to buy or rent for my next move?! Please read post for more details, thanks
- What do you think about living within 1 mile of a farm?
- From a tax perspective
| Starting to see price drops and more reasonable listings in rural Missouri. Feeling a bit relieved Posted: 18 Mar 2021 11:15 PM PDT A few months ago, 1400 sq ft homes with acreage were selling for like 370-450k, almost twice what they'd normally be worth in some cases. People were scrambling to get out of the city. But now it's calmed down a tiny bit. As always, nicer spring weather has brought more listings, and many of the ridiculously priced homes that have been on the market for a while have dropped prices by a big chunk of change. I think people have started to realize that Bumfuck, Missouri (while beautiful in its own way, and certainly my personal favorite place to live) isn't Texas or California and they shouldn't be overpaying for a SFH with privacy. Hoping the trend continues. Finally found a beautiful farmhouse that isn't half a million dollars lol Anyone else noticing the market start to turn slightly? [link] [comments] |
| 90% LTV Jumbo Cash Out: 2nd largest lender in the country massively bullish on real estate Posted: 18 Mar 2021 11:38 PM PDT Context. A-paper jumbo cash out refinances typically go to 65% or 70% LTV, maybe 75%. 80% is rare. More context. You owe $400k for your $1,000,000 home. A 65% LTV cash out refi means you get a new loan of $650k, pay off the $400k, and put $250k minus closing costs into your pocket. This is not a taxable event. That's cash out refi 101. The 65% LTV means they forced you to leave 35% equity in the home. For federally backed loans, 80% is the typical cap, with significant pricing (pricing = rate/fee combination) hits to offset that risk (some % of people will take this "windfall" on vacation, quit their jobs, and blow it all on drugs and partying...). For A-paper and A-grade pricing jumbo loans, which are purely private sector with no federal subsidy, 75% is about the top you can generally expect. The reason for those caps is that homes could go down in value. Let's say you are a bank and cap your cash outs at 70% loan-to-value. You force everyone to leave at least 30% equity in their homes. Suppose something happens causing real estate to drop 20%... whelp, your borrowers still have 10% equity, so they aren't likely to walk away and just stop paying. At the very least, they would sell the thing (paying you back in the process) and walk away with that $100,000 cash. Suppose it goes the other direction and real estate goes up, that 70% LTV cash out refi just became a 60% or 50% LTV cash out refi, this is of course perfectly fine for you, your position is safer. OK, so with that context. As part of the UWM-RKT Cold War that turned into a Shooting War on March 4, 2021, UWM has unleashed 89.99% LTV Jumbo. That existed before the pandemic, you could get a jumbo loan with 10% down, no PMI, slightly bumped rate (no PMI + slightly bumped rate = a wash), and buy a home that way. Here is a news article, I already included the back door around the paywall in the link: https://archive.fo/zgNbA What isn't in that article, and what seems to be flying under everyone's radar: they are sticking to that 89.99% LTV for cash out refinances too. You don't have to leave 25% or 35% equity in the home, 10% will do. Before the "omg 2008 all over again" robots start reciting their narrative (said bots have been on auto-pilot since about 2013, for those just now arriving to the conversation): 740 FICO minimum, full doc, dead sexy borrowers only. Here is my reading of that. No one actually wants to hold onto 90% LTV cash out paper, period. It's just too risky. But if you're incredibly confident that real estate, luxury real estate in particular, is set to appreciate by significant amounts, then pretty soon it's not going to be 90% LTV. It's going to be 75% or 65%, the comfort zone and buffer you want, because the $1m home is now a $1.3m home and your loan amount is only $900k. That is the billion dollar bet being placed. The CEO of that lender is on my facebook feed, he said that yesterday, when that new program came out, they had $700,000,000 worth of new volume registered. In a day. Loan originators posted stuff like: "2020 jumbo loans: 4. St Patty's day 2021 single-day registered jumbo loans: 24." And so, seeing that, what I expected was to come into the office today and see that they've pulled back on pricing, jacked up the rates, cut it off, realized they bit off too much, deterred business, that sort of thing. ...Nope. They doubled down. They're hungry for it, they want it, and it's a company led by a silver spoon kid who inherited 14 employees (his dad, a Detroit area lawyer, had started a small mortgage shop as a side hustle... he gave it to the one kid of his dumb and stupid enough to want to get into the mortgage biz) and now has over 8,000 employees, he's a billionaire many times over, so he's no dummy even if he did get that silver spoon. And that's where he is placing his bets. [link] [comments] |
| Finally had an offer accepted (Seattle) Posted: 19 Mar 2021 12:39 AM PDT Three months ago I had posted how frustrated I was with the Seattle market, but I'm beyond relieved to say that we're finally under contract. A few things we learned along the way that might be helpful:
Hope that's helpful to others looking in the area, and please take my advice with a grain of salt as every home search is different. If you have questions feel free to DM me. Hang in there, and f**k this market. [link] [comments] |
| Posted: 19 Mar 2021 07:06 AM PDT I grew up on some land that includes my parents' and aunt's houses, yards, and about 15 acres of farmland. I'd like to buy the farmland to help them out financially, and besides I'd like to own some of the land I grew up on anyway. Some contextual information that might be helpful: -We've settled on a price that looks to be a bit below market value (~$5k/acre) - didn't know if there were any laws that dictate selling things like this to family that would come into play here. -I no longer live in the area, nor in the same state, though it's within a day's drive if I need to drop in for a bit. -We already have an arrangement with local farmers that work the land and pay us a portion of the revenue earned from it. -The land itself has access to a state highway independent of the lots my parents' and aunt's houses are on. -I have good credit (800+) -I have 20% for a down payment, but wasn't sure if the 20% convention applies to farmland too, or if it's more/less. -I've never bought any sort of real estate, so the whole process is new to me. Questions: -FIRST if there's a guide for this type of purchase and how it's different from buying land/house that I would plan to live on, let me know and I can read through that first - I don't want to waste anyone's time with basic stuff -What sort of lenders should I pursue/are certain lenders more suited to this type of loan than others? -What sort of costs can I expect outside of the purchase price (assessor fees, closing costs, etc), and are those paid in cash, independent of paying a down payment, or can those be rolled into the loan? And any other info that I'm not asking about, but should know, is welcome. Thanks! [link] [comments] |
| Buyer changed mind 1.5 weeks before closing Posted: 19 Mar 2021 09:20 AM PDT I just got a call from my realtor that the buyer just changed their mind. We are suppose to close on 3/29 and all contingencies have been met. I know I'll get my earnest money back which is only 3k. I've already bought a storage unit and have incurred moving expenses. Is there anyway to get back any of those costs or is it just earnest deposit? Just curious how common this is too? [link] [comments] |
| Posted: 19 Mar 2021 08:40 AM PDT so my wife and i are house shopping. we would like to have rentals in the future. the mother in law is selling a 4bed 3 bth home that needs some work for cheap. we figured this would be a decent start for us. long story short though, my wife and her mother do not speak whatsoever for years now. there is a lot of hostility there. does anyone know if there's a way we could purchase while remaining anonymous on the paper work and all? we don't care if she finds out we bought it after, we just don't want her not selling because it's us. i've heard use a trust or an LLC, are those hard to create? any downsides? [link] [comments] |
| Do realtors work with a lot of loan officers? Posted: 19 Mar 2021 08:34 AM PDT I started an entry level sales role, and my job is basically assisting a loan officer get more relationships with realtors. Some realtors my loan officer has never worked with before and I'll cold call them. I'm just curious how many a realtor typically works with? I'm still learning about their dynamic. [link] [comments] |
| Listing strategies in hot markets Posted: 19 Mar 2021 04:53 AM PDT Curious what people see as listing strategies in "hot" markets (which I guess is everywhere suburban or rural these days). 3 general strategies are possible: 1)List lower than expected (say, 5% below comps that went into contract 2 months ago), generate bidding war, most properties sell over ask. 2)List very high (10-20% over comps), wait for someone to bite or just see where bids show up. 3)List aggressively but realistically, let the buyers maybe get a small discount, properties close at or slightly below ask. The recent post about Austin made me think about this - clearly that market goes by #1. In my area, (NJ burb), we are mostly in #3, listing prices are moving up roughly in line with sale prices, so it's still rare to see closings over asking price despite prices being up 20% or more yoy. We have some #2 though on the very high end properties, which still are often closing 10% below ask or more (though again, at higher prices than a year ago). What do you see in your area? Why do strategies seem to different in different areas? And, lastly, which leads to higher prices? [link] [comments] |
| Odd strategy by seller? (to my benefit) Posted: 19 Mar 2021 07:38 AM PDT A house popped up that checked most boxes I was looking for at a price a bit under its value (in my opinion); agent called very shortly thereafter to set up a showing the next day & by then 7 showings were already scheduled. Not that this necessarily matters, but I also noticed a higher than normal number of 'saves' on Zillow as well for the place. Go & see the house in the evening, love it, are considering an offer & my agent says the place received 4 offers by then, one of which is requiring an answer by midnight. Sellers agent says no escalation clauses would be considered. Put in a fairly strong offer but fully expected to lose out & it was shockingly accepted. Seller didn't want a quick close so apparently wasn't a timing issue on their part. As an aside, apparently one of the other offerees, upon getting the bad news not being accepted offered to throw in another $50K. If a property was garnering that much interest hours after being listed why wouldn't you accept showings & offers for a few days & tell the 'have to know by midnight' guy to go pound salt instead of using his timeline for all the offers. I guarantee a lot of money was left on the table. [link] [comments] |
| Posted: 19 Mar 2021 09:22 AM PDT So quick background: I'm 23, living at home (no rent) and going to school, on unemployment from COVID (my employer is going to hire me back when they re-open), and have worked a mix of full-time and part-time for the last 5 years. I have about $45,000 in roughly liquid cash (savings accounts, some in a stock brokerage, some in a loan to friend). No debt, credit score is in the 'very good' range (750). I'm also a veteran so may be able to get a 0% down payment. Out of curiosity I went on a realtor website the other day to look at houses as I've always been sort of interested in getting a rental property and doing the owner-occupied thing so my rent is covered (seems like the dream tbh). Anyway one thing led to another, and I discovered a nice 4 unit house, two-bedrooms per unit, really nicely fixed up (looks like it needs zero work) in a good neighborhood, great amenities, etc. It's $570,000. So not even in the same universe as I what I was considering... BUT, doing the math on the payment calculator thing got me thinking... It estimates my monthly payment would be $3,400. I could literally rent out each apartment for $850 (which is insanity level cheap in my area) and break even... Right? An extremely reasonable rent of $1,200 per unit would be $1,400 in profit/month. Am I waay under thinking this? I know it's insane for someone my age to consider buying a $500,000+ home, but it almost seems like a no brainer. Of course factoring in labor too, but a lot of that would be mitigated as everything is so new (house originally built in just 1988 as well). I'm so completely new to this I'm not sure what to even do, but I'm sort of freaking out at the thought of it. Would hugely appreciate any advice! [link] [comments] |
| What date does capital gains go off of (contract,close,move in date)? Posted: 19 Mar 2021 09:20 AM PDT My wife and I are selling our house and we are very close to the 2 year primary residence cutoff for capital gains, like down to the day possibly. I have looked around and can't find a straight answer of when your two year mark starts and ends. It is our primary residence and went had a signed offer Apr 19 , closed May 19, and physically moved in June 19 due to a rent back to the previous owners. Also, does CGT go off of accepted contract to new buyers or closing date to new buyers? We are trying to time this out so we can save $15k ish. Thanks! [link] [comments] |
| Can I negotiate a lower rent if LL refuses to fix crumbling foundation/soaked basement? Posted: 19 Mar 2021 08:51 AM PDT I wish I could upload photos. Basically, our foundation is peeling from the bottom of the duplex outside, with brick crumbling off every storm. TLDR of our last apt experience, our landlord offered us first dibs on this new place because our last upstairs tenants harassed us like crazy where the cops were almost involved, and she didn't want to lose us as tenants. The previous person who had our apt moved out because of them too, so she decided to rent the whole duplex to them so no one else has to deal. Also, the floors bubbled, and there was no insulation in the house, and the upstairs tenant occupied the whole entire basement with boxes of their stuff, leaving us no room for storage. We had to curtain up every entryway and put fiberglass insulation and plastic over our living room windows and closed off the living room using our dining room as the LR. When she showed us this place, the main catch was the "2nd" living room and an open concept kitchen. We lost our fenced in yard (have dog so important) private front porch, the foundation is literally peeling off the house causing flooding in our basement (lost of storage space, again) and we still couldn't use our "2nd" living room from how cold it was, it drove our heating bill to almost $300 a month in the winter. She wants to show the place now for June 1st rental. We like the place, but can't justify paying the extra $300 in rent if it's not a fair trade off. We feel like we're getting ripped off, especially since she said she would fix the foundation a year ago as we were signing the lease. [link] [comments] |
| House has been sitting in a "hot market." Just drop price or relist? Posted: 19 Mar 2021 07:06 AM PDT We're at 55 days on market. Many showings, multiple open houses, not a bite. No interest. Feedback from potential buyers has gotten pickier and pickier as time has gone on. Early feedback was that it was well-priced, but just wasn't right for the buyers. Later feedback has been critical of nearly every aspect about the house. Our agent -- who we've worked with on two previous purchases and one previous sale -- had remained extremely optimistic through the process ("here's three other homes that sold nearby... I'm sure yours is next!" etc.). But earlier this week we had an extremely tense call with her where I felt like she was blaming us for not dropping the price. We had talked about this once or twice, we said no, she gave no pushback. Comps in our neighborhood continue to sell for much more than our house is listed for. This whole experience has been extremely demoralizing, and I'm not even sure I want to sell anymore. Our agent is doing some additional research with some of the agents who have seen the house, asking if their buyer would have been interested at X price (about $20K under our asking). We have a few more showings this weekend and if nothing happens after this, I feel like we are at a breaking point. (I am dealing with a long illness and the constant straightening of the house and leaving for showings is really wearing on me.) If we decide we still want to sell, would you advise --
2.) Pull the house entirely and relist with a different agent. I'm concerned about the "X days on Zillow" and people thinking there's something wrong with the house. edit: Just want to note that this isn't a million-dollar property or anything. It's a ranch in the $500 - $600 range. [link] [comments] |
| Posted: 19 Mar 2021 09:13 AM PDT My sellers house was inspected. They have a ground floor utility room. For the utility rooms door (which is metal and has air vents in it) The inspector said "It is not permissible to get combustion air from a living space. There is too much of a risk for allowing carbon monoxide into the home through the door vents. Recommend replacing the door with a steel insulated door. Recommend installing a fresh air intake from the exterior." The buyers interpreted that as to just install a new door but not asking them to install the fresh air intakes. They just think it needs a new furnace door. My sellers signed that and said ok well put in a new door I guess. But what the inspector was actually asking for was make that door insulated and install a fresh air intake from the exterior. Since my sellers only signed to replace the door, can they just replace it with a new one, it wouldn't even be solving the problem. [link] [comments] |
| Realtor trying to evict me to sell house. Posted: 19 Mar 2021 08:59 AM PDT I am currently renting a home that has just been put up for sale and I still have until october 1st when my lease ends. My realtor is trying to get me to sign an n11 and n12 form which he has not even filled out himself( so he wants me to sign a blank document) I refused to sign while he was standing at my door and I would like to know what rights I have as a tenant. He said if I don't sign it then court will be involved. I would like to leave because I don't feel welcome but I also don't want to give in to thier manipulative ways of getting me out. He also said the landlord would be paying me for two months rent when I leave. [link] [comments] |
| Need help from a Loan Officer and discrepancy in DTI Posted: 19 Mar 2021 08:29 AM PDT We are in the process of applying for a mortgage and how DTI is going to be close to the 43% mark. We have one specific debt that we could pay off in full but would prefer not to do so unless absolutely necessary. For some reason the way we calculate our DTI compared to our Loan Officer we are off somehow. Is there anyone who could help us understand what we are calculating incorrectly? Are installment loans treated different than housing? Are HOA fees treated differently? [link] [comments] |
| Posted: 19 Mar 2021 08:27 AM PDT Trying to completely understand this tax exemption as I will be selling soon. I understand that the purchaser of a primary residence home can avoid cap gains tax on profits when selling as long as purchaser stays in home for 2 years and the profit did not exceed 250k for a single My question is, does it also have to be 2 years or longer since closing on my last home since I used that exemption then? Trying to do my due diligence and not get burned by IRS because I made a mistake. Thanks anyone that has knowledge on this subject [link] [comments] |
| Regretting Selling My House in May 2020 Posted: 18 Mar 2021 02:17 PM PDT I sold my house in May 2020. We had bought it in the middle of 2018, and realized it just wasn't the right house for us, it was on a big hill, steep driveway and we want to be more "in town". We sold it off market after only one person seeing it. They gave us a decent offer at the time, which was the low end of our range. We accepted because we were scared, at the time, the real estate market would tank (spoiler alert - it has anything but tanked!) and we wanted to get out of this house that we knew wasn't right for us. We decided to rent in the same town where we have lived and continue looking for our forever home. Sadly, prices have spiked since then, and while we didn't lose money on the house we sold, we didn't really make any either, after closing costs. I'm sad and angry that we sold when we did. I know hindsight is 20-20, and we made what felt like a good decision at the time but now I'm so regretful we sold. We are renting a house that is pretty good - in our ideal location, large enough etc - but it is just not ours. We want to buy and our budget has been creeping up and up with rising prices, but there is nothing on the market that would make me even want to put an offer right now. I'm fearful that we have just priced ourselves out of where we want to be by selling when we did and not buying at the same time. Does anyone have any insight, or way to make me feel better :( [link] [comments] |
| Posted: 19 Mar 2021 07:56 AM PDT Looking for any insight on company purchasing homes after x amount of days on market when they relocate you (if home is in good sellable condition obviously). I understand company helps with new home lawyer fees and closing cost. History - I am being relocated due to work. We are a family of 4 (with multiple pets) looking to do short term rental for 6 months (which current relo lump sum would cover 100%) with initial moving then ultimately hoping to buy . Which we would then cover moving. Annual Salary is at min 135k . Credit score is +740 . Using two incomes puts us at min +175k annually with additional credit score of +800. Current savings of 100k . Looking to buy a home within 6 or so months in +150-180k range with conventional loan and 20% down . Housing Market is northern PA so not very "hot" as others but obviously We could possibly need to relocate 3-5 years but that relocation would include help with closing costs and lawyer fees on new buy and company could potentially buy home if it sits on market over x amount of time of it meets requirements plus temp housing paid for 60 days. I'm looking for any information on what a company would give you to buy out your mortgage and what requirements that would be . We are looking at ALL options as a family with two young kids . Rent would put us 1400-1800 a month rent Vs mortgage (especially Vs payment on home less then 200k) gets foggy in this time frame . I could relo again in 2-3 years or I could relo in 5 or never . I've been promoted every 1-2 years over the last 8 with my company so track seems reasonable but next promotion may or may not need relo based on area and changes within company jobs. If I am still renting at 1600 over 5 years it would seem as bad investment Vs buying . Decisions decisions decisions . Thoughts are welcome on the decisions in front of me currently. Trying to see what others would do or what seems smartest and best quality of life . [link] [comments] |
| How much does riverfront add to the value of a property? Details in body. Posted: 19 Mar 2021 07:14 AM PDT We have a house in south western Maine, think 25 mins from North Conway, NH with a small but very nice house, workshop and 100' of river frontage with a dock that I can lower and raise each season. The river is 20+ ft deep and swimmable all year with no restrictions on having things like jet skis or pontoon boats etc. it is very private and I have 2 seasonal neighbors on warm weekends. The land is two acres (two separated plots). The house does not have river views out of the windows. It's built higher up and back. How much does usable waterfront like this add to the value of the house? In my area there are simply very few houses available with waterfront at all on the market and most are stacked on each other around lakes. [link] [comments] |
| Posted: 19 Mar 2021 06:28 AM PDT Hey everyone. A little bit about me I'm 25, graduated college about a year ago and wasn't able to find a full time job until recently but I do have consistent money coming in now plus about 35/40k saved up. I'm currently back home right now but looking to move out in the next few months and not sure whether to buy a condo or rent an apartment for the time being. I've always been the type that looks at everything as an investment and having a condo in my name would allow me to build equity, while an apartment is essentially just not doing that. The condo that I'm looking at does have HOA fees of course but it's nothing I can't afford. The city I live/work in is where I see myself being for atleast the foreseeable future, so I don't have any concerns about relocating and it's a very rapidly growing city with jobs and people coming in by the thousands. Just wanted to hear your thoughts! Thanks [link] [comments] |
| What do you think about living within 1 mile of a farm? Posted: 19 Mar 2021 06:02 AM PDT We found the house of our dreams, in a desirable neighborhood, and we are currently in the counteroffer stage with them, looks like we can get the house. The problem? Just realized it's 0.9 miles from a small-ish farm that has a petting zoo, pumpkin patch, and apple orchards they use pesticides on. We have a small child and hope for another - I'm a bit concerned about pesticide drift, being within 1 mile of it. There are several peer-reviewed studies out there showing elevated risk of Alzheimers, Parkinsons, birth defects, etc., when in close proximity to farms. Part of me thinks we need to cut tail and run. But I looked up the life expectancy of the zip code, and it's actually a bit higher than the surrounding areas. Maybe I am overreacting and we should still go for it? [link] [comments] |
| Posted: 19 Mar 2021 05:37 AM PDT From a tax perspective, it is it better to pay cash for a house or put 20% down? Is losing the tax deduction on your mortgage worth it? [link] [comments] |
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