Home buying thread

fris

fris

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Captain Suave said:
These days it's also very common to structure a 1-2 month seller lease-back to give them time to move.
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maybe in normal economy

in austin area, you stage the home and go on vacation for the weekend. monday you review all the offers, tuesday or wednesday you sign on the highest cash no contingency offer. meaning if the offer comes with the contingency that the buyer has to sell their home to come up with the cash for this offer, usually very common, isn't accepted now.

this may change w/ slowing demand due to biden-rates.
 
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Captain Suave

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fris said:
maybe in normal economy

in austin area, you stage the home and go on vacation for the weekend. monday you review all the offers, tuesday or wednesday you sign on the highest cash no contingency offer. meaning if the offer comes with the contingency that the buyer has to sell their home to come up with the cash for this offer, usually very common, isn't accepted now.

this may change w/ slowing demand due to biden-rates.
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I'm not talking about the deal being contingent on the buyer selling their home. I'm talking about closing immediately and the seller leasing the property back from the now-owner at a small premium in order to have time to pack and move.
 
Kiroy

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Cad said:
I'd still close tomorrow and just put the change of possession date in an addendum. Don't let the deal sit on the vine for a month while interest rates go up 2 more points and when your buyer drops out your other buyers can't get financing now or don't like the rates.

No sir, I'd get the deal inked.
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Could also do rent back agreement although it's dangerous in certain states (because renter protections apply so the sellers could technically assfuck the buyers). We did it on both sides of our last home sale.
 
Kiroy

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wormie said:
They have a contract. Why would they drop out? And if they do, there is a contract deposit to keep.
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They can find a better deal tomorrow. The sellers agent really fucked up allowing a 30 day close on a cash offer.
 
wormie

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Lanx said:
depends on the earnest money, if all they lose is like 5k but find a nicer, better, cheaper home... why not?

why can't they keep on shopping.
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Right, if contract deposit is tiny then the buyers just walk away without much loss. That was in my first post.
 
Lanx

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wormie said:
Right, if contract deposit is tiny then the buyers just walk away without much loss. That was in my first post.
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i think this falls in the line of "you shouldn't do this for courtesy", just keep the house you won

but fuck it, who cares, when i was bidding for my house i put in 2 other offers to other houses to, my agent said it's courteous to just stick with one offer, but he'll do it if we wanted it, and we said sure do it, idc what happens to the buyers, lulz
 
wormie

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Well offers are one thing. In this case, I am assuming there is already a contract since there are some terms.
 
Cad

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Lanx said:
depends on the earnest money, if all they lose is like 5k but find a nicer, better, cheaper home... why not?

why can't they keep on shopping.
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They can, thats the point. Lots of people walk away from offers and ditch their earnest money, and if you're still in the option period you don't even lose that. Dunno if there is an option period in this case, but just saying. Stupid to delay a close that doesn't need to be delayed.
 
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Sludig

Sludig

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Fired my first lender after they couldn't schedule an appraisal for sooner than 5 weeks out. Of course with 4 weeks from the aloneness date they billed me the sppraisal. Fired them and they said 7-10 days on refund. Day 9 still nothing pending in bank and they said they submitted it.

So about to turn that into a bank dispute. Today's the appraisal with only 9 days needed by new lender. Fairly nervous how under bid or might be. Well pay 10k over appraisal but lets say it comes in 50k below their ask, (rapid local cost increase), if they were smart they'd walk and just relist looking for cash offers.
 
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Tide27

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Question for many of you that have more experience than me.

Situation:

Long time renter, using VA loan to purchase

Every home in the Indy area thats in any prox to a semi decent district starts at 275k+.

Placed bids on around 11 homes for 15k-20k above ask / appraisal, outbid every time.

Gave that search up and went with a new build.

Signed contract in Feb for $300k new build. Interest rates were about 3.85%, but cant lock in until 120 days from close.

In the past 2 months, interest rate has gone from 3.85 to 5.75 despite only a 25 basis point raise.

Fed is talking about 3 to 4 more rate raises before the end of the year.

Just got our yearly renewel for rent....went from $1600 to $2100. ( this is well above normal, so i think the majority of places now are at $1800, so can move if needed to save $300.

If interest rates go any higher, itn will knock us out of buying a home and be out the $10k for backing out of a new build + the $2500 ernest money.

Just wtf do we do? The base house we bought was listed at $275k when we signed the contract in Feb. Its not even May yet and its listed as $302k base now.

Prices are still sky rocketing, interest is sky rocketing, rent is sky rocketing.....like wtf is a family to do that is trying to purchase a home??

By the time interest rates calm down, there wont be a house in the US less than $400k and all these mega corps will just buy every house with cash.
 
Lanx

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Tide27 said:
Just got our yearly renewel for rent....went from $1600 to $2100. ( this is well above normal, so i think the majority of places now are at $1800, so can move if needed to save $300.
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is this from a complex or a landlord?
when is your house due for completion? a lot of ppl here have had delays and doubt you'll have an easy ride

if you have a relation w/ where youre renting now, i would try to build on it b/c you want to move cuz the surrounding neighborhood is 1800? how do you know you'll even qualify to move in there, what if you say youre only looking for a 6month or less lease?

while it sounds crazy to raise rent by 25%, it's justified after 2years of no rent, and what if they got paid all this time anyway? they still have to raise rent to keep up w/ all the other places or they loose value on their property/mortgage.

if the only place of residency you got right now is to rent from you current place and you can't bum off parents to save a year or half a year of rent or as a backup plan, don't destroy that relationship
 
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Tide27

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We rent from a property management company. All my family has passed, so thats not an option.

We paid all of our rent, every month. We didnt stiff any landlords throughout covid.

My friends that bought a home not only didnt have to pay mortgages for that time, but they just had it tacked on at the end of the terms....so essentially home owners got their mortgages forgiven foe the entire year, while we were still paying. They had no out of pocket cost, we did.

Its shitty all the way around for people that didnt own a home prior to Trump and Biden fucking up the entire economy by printing 8 to 10 trillion in a few years.

There is no end to this nonsense. If you owned a home prior to March 2020...your sitting pretty with your house value going up 40% and hourly wages skyrocketing. If you didnt own a home, your fucked cuz houses went up 40%, rent is going up just as fast...by the time interest rate goes back down, those 300k homes will be 500k.

God damn
 
Ishad

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I’m still not seeing how there is going to be a massive correction anytime soon. The supply chain is still fucked, and anyone with a low interest loan that doesn’t have to move is just going to camp out for the next decade. Interest rates will slow things down, but the rest just seems like wishful thinking. (I hope I’m wrong)
 
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Kiroy

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Sanrith Descartes said:
edit: after going through the contract it might be worthwhile to discuss the situation with the builder. Anything can be negotiated. If they think they can sell your house to someone else now for more money than your price, they might be willing to let you walk for just the $2500 in earnest money so they can sell now instead of you forcing them to wait until closing before you default on the close. If they can line up a new buyer now for $25k more than you paid, they might be willing to let you walk with the $10k to make the new $25k (plus $2500)
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this is the play and i'd hit them up asap while we're in the window of prices still being astronomical as rates are rising
 
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U

Unidin

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Tide27 said:
Question for many of you that have more experience than me.

Situation:

Long time renter, using VA loan to purchase

Every home in the Indy area thats in any prox to a semi decent district starts at 275k+.

Placed bids on around 11 homes for 15k-20k above ask / appraisal, outbid every time.

Gave that search up and went with a new build.

Signed contract in Feb for $300k new build. Interest rates were about 3.85%, but cant lock in until 120 days from close.

In the past 2 months, interest rate has gone from 3.85 to 5.75 despite only a 25 basis point raise.

Fed is talking about 3 to 4 more rate raises before the end of the year.

Just got our yearly renewel for rent....went from $1600 to $2100. ( this is well above normal, so i think the majority of places now are at $1800, so can move if needed to save $300.

If interest rates go any higher, itn will knock us out of buying a home and be out the $10k for backing out of a new build + the $2500 ernest money.

Just wtf do we do? The base house we bought was listed at $275k when we signed the contract in Feb. Its not even May yet and its listed as $302k base now.

Prices are still sky rocketing, interest is sky rocketing, rent is sky rocketing.....like wtf is a family to do that is trying to purchase a home??

By the time interest rates calm down, there wont be a house in the US less than $400k and all these mega corps will just buy every house with cash.
Click to expand...
Reach out to your lender and ask if you can do a longer lock. I had a friend in the same situation just lock until next year. It cost him 1/2 a point at Bank of America, but with the way rates are going, it's going to save him a ton. If you're looking at a 300k home, then that's only $1500 up front to lock your rate.
 
Noble Savage

Noble Savage

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Ishad said:
I’m still not seeing how there is going to be a massive correction anytime soon. The supply chain is still fucked, and anyone with a low interest loan that doesn’t have to move is just going to camp out for the next decade. Interest rates will slow things down, but the rest just seems like wishful thinking. (I hope I’m wrong)
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I am trying to think through this as well. Certainly feels like we are in a bubble but how does it burst. The 2008 crisis was fueled by variable interest rates climbing and making monthly payments unaffordable, while skyrocketing forclosures tanked home values and made refinancing out of those variable rate loans impossible.

But in todays market hardly anyone has variable rate loans so the folks who already have low rates are fine, so there isn't going to be a ton of forclosures hitting the market to drive down prices. Maybe the market cools a bit because higher interest rates cause normies to hold off on buying a house, but the people doing all cash offers and the investment banks won't be affected at all. I'm not sure if the bubble popping is going to be what we are used to seeing. I think the housing market is still going to be fucked and maybe even worse for normal people. Its going to be an era of cash is king and that certainly doesn't help the middle class.
 
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