What is the justification for RE Agents getting paid a % of sale and not just a flat fee? Real Estate |
- What is the justification for RE Agents getting paid a % of sale and not just a flat fee?
- Lender asking for paystub from new job AFTER closing as condition for approval
- Update: Under contract but it's going to fall apart because the sellers don't see reason (AZ)
- More homeowners delay mortgage payments.
- How to sell a condo with loud upstairs neighbors?
- Seattle-area Mortgage Delinquencies Rise 3x the National Average
- Seller took our offer!!
- (Indiana) Temporary 50% salary reduction - do I volunteer this info to my loan officer?
- How to obtain mortgage loan when bank denies it based on past farm business?
- Is it me or is this sub filled with well-capitalized doomers rooting for a crash?
- My buyer changing lender 2 weeks before closing
- Question regarding prepaid items at closing
- A question regarding obese tenants...
- Would you make this house offer?
- I’d like to invest in a property
- Looking For Opinions for How Much House I Can Afford.
- How to determine if a house is worth buying as a fixer upper
- Hedging Approval / Multiple Loans in Underwriting?
- Help me play "Decode the Seller's Agent"
- Doing a private party land transaction, any thing to keep in mind?
- Best real estate books
- I (21F) am considering buying a house
- Rural Development Issue?
- Selling during COVID
- CARES Act Forbearance and effect on housing prices
| What is the justification for RE Agents getting paid a % of sale and not just a flat fee? Posted: 01 May 2020 09:00 AM PDT This question was born out of another discussion in this sub, but I am looking for discussion and/or support to justify why agents generally get paid a % of the selling price and not a flat fee? For example, does an agent that sells a house for $150k work 50% harder/provides 50% more service and therefore should be compensated 50% more than an agent that sells a house for $100k? In my limited understanding I definitely dont think so. So for arguments sake lets say selling a house between $200k and $600k requires a similar amount of work/contribution/service from the agent, so what is the justification for the agent to get paid 3 times more at the high end than the low when they are providing the exact same service? Again this is meant to be a respectful discussion and not meant to attack but genuinely ask for legitimate justification. Thanks [link] [comments]  |
| Lender asking for paystub from new job AFTER closing as condition for approval Posted: 01 May 2020 07:13 AM PDT I'm moving across the country to start a new job in a high paying profession in the healthcare industry. I have conditional loan approval. One condition is that I provide a paystub from my new job showing monthly income equal to the amount stated in my signed employment contract. The job doesn't start until after the closing date. Some healthcare organizations have been temporarily reducing pay for people in my line of work due to the cancellation of elective surgeries. While I don't anticipate this, I'm not comfortable signing an agreement that has my full monthly salary as a condition for approval, since I could plausibly face a temporary reduction in pay if there's a new COVID outbreak. Is this condition normal? Am I right to be concerned by this? What are the implications of not meeting the condition that my income is x amount per month, even though any reduction in pay would almost certainly allow me to still comfortably pay my mortgage and expenses? Is this negotiable or should I start shopping for a new lender now? Thanks for your input! [link] [comments]  |
| Update: Under contract but it's going to fall apart because the sellers don't see reason (AZ) Posted: 01 May 2020 01:22 PM PDT Previous Post: https://www.reddit.com/r/RealEstate/comments/g6bb3q/under_contract_but_its_going_to_fall_apart/ We had a phone call with the sellers a few hours after I made my post. Long story short, both sides agreed on $413,000 with the sellers doing no repairs and the next day we got all of the paperwork signed. We are scheduled to close next Thursday and everything is looking good. We were bummed about having to handle/pay for all of the repairs but that was before we knew just how badly people in this neighborhood want my house. We've been fixing little things in preparation for listing and last weekend I put my agent's sign on my fence just to get some buzz before putting it on the MLS. That day, several people stopped by to tour, and by Monday we had 3 parties interested in purchasing. Last night I signed an offer that was $6k above my asking price with no concessions--again, this was before we even had a chance to list the house! And the woman who is purchasing hasn't even seen the house in person. She's just deadset on being in this neighborhood and is very excited to be getting the house--she's coming to see it this afternoon. Before this whole process started, I hadn't really thought about how much my house could sell for. I figured I would net around $40k but I'm looking to net almost double that! This will more than pay for the repairs needed at the new house. And all of this during a pandemic. Who'd've thunk. [link] [comments]  |
| More homeowners delay mortgage payments. Posted: 01 May 2020 07:50 AM PDT |
| How to sell a condo with loud upstairs neighbors? Posted: 01 May 2020 09:12 AM PDT There is a family with 3 kids above me that run around all day and night. I live in a nice condo and each unit has 2 floors. Not only can I hear them from my 2nd floor but I can hear them from our 1st floor as well. Their hardwood or just the general building's design was screwed up I guess. I've had friends who've been to my place say they would never live in a condo with people like that above them. How could I expect to sell the condo in any market like this? I'm working with management to build up a case to eventually make them strip their hardwood and put in carpet. If they don't comply, could I technically sue them for up to the worth of my condo considering it's market value would literally be 0 with nobody wanting to live under them? Any insights would be greatly appreciated! [link] [comments]  |
| Seattle-area Mortgage Delinquencies Rise 3x the National Average Posted: 01 May 2020 09:46 AM PDT
Everyone was so sure the knowledge-economy metro areas would be unaffected, but we're seeing signs that might not be the case. [link] [comments]  |
| Posted: 01 May 2020 01:04 PM PDT First time home buyer here and we are beyond stoked!! Totally clueless on the whole process but we are just chugging along. Close early June. Inspection on Monday. [link] [comments]  |
| (Indiana) Temporary 50% salary reduction - do I volunteer this info to my loan officer? Posted: 01 May 2020 11:06 AM PDT I'm closing on a new build at the end of June. My pay has been reduced by 50% from April 6th to May 17th and there is a possibility that my pay won't return to normal until June or July. Do I volunteer this to my loan officer? And if this puts my debt to income ratio below an acceptable threshold, can I volunteer other assets as collateral until my pay returns to normal? [link] [comments]  |
| How to obtain mortgage loan when bank denies it based on past farm business? Posted: 01 May 2020 10:56 AM PDT Edit: PROBLEM SOLVED WE JUST GOT APPROVED!! Thanks again for all the help and suggestions, we were able to double check what you brought up and it seems that there was a mistake and they sent an update stating an approval instead. I'm just relieved this didn't take forever to get through. Hi there, my partner and I are looking for a home in northern Illinois with about 5-10 acres and a house in order to live in it. My partner has excellent credit, full time income, and no debt, yet because of their past farm business (where they help their mom with the taxes for said small farm that the mom owns, roughly 6 acres also in N. IL) the bank said that my partner qualifies for nothing. I have student loan debt so the amount of loan I'd qualify for is lower than what we would need based on online estimates. We're not trying to buy another farm for income (though we do have goats and chickens we want to keep in the move as so I guess it would still qualify as a hobby farm), we both have regular jobs as the actual income for paying. Is there anything we can do to get a mortgage or do we have to try and obtain an agriculture-specific loan even if it's not our income source? This conflict is completely new to me and I'm not sure where to start. In-person meetings aren't happening right now due to virus lockdown so we just got the denial through email. Thanks in advance for any help, this caught us both off guard and we need to be able to move by August 2020. [link] [comments]  |
| Is it me or is this sub filled with well-capitalized doomers rooting for a crash? Posted: 30 Apr 2020 01:26 PM PDT Everyone rips on realtors for being real estate cheerleaders ("it's a great time to buy!"). But it seems the majority of people in this sub (and Reddit in general) have an irrational belief that housing will crash since it will benefit them (well capitalized and waiting on the sidelines). Anyone else notice this? As for me, I sold my house last year and am also on the sidelines waiting to buy. Sure a crash would benefit me as I would be able to get a house for cheap. But to play devil's advocate, I'm not sure I see that happening because:
Just my take on it. Obviously do your homework before buying. But I see the doomer point of view so dominant here, it reminds of those in r/investing and other places saying a stock market crash was "imminent" since 2015 or so. Thoughts? [link] [comments]  |
| My buyer changing lender 2 weeks before closing Posted: 01 May 2020 04:46 PM PDT I don't understand why a homebuyer would change lenders 2 weeks before closing and ask the sellers to push the closing date back by 2 weeks. This is incredibly inconvenient for us. Our realtor thinks we should play hardball and say basically we want more earnest money if you expect us to wait for 2 more weeks. I'm ready to walk away from these buyers because they have been nothing but trouble since this all began [link] [comments]  |
| Question regarding prepaid items at closing Posted: 01 May 2020 01:10 PM PDT First time home buyer here, and I am puzzled by the below: I am scheduled to close next week and I see on the closing disclosure that I need to pay 6 months of property tax at closing as a prepaid item. Additionally, I see that I also have to pay 3 months of property tax as initial escrow payment. Is this normal? Will the prepaid property tax also go into my escrow account? [link] [comments]  |
| A question regarding obese tenants... Posted: 01 May 2020 04:49 PM PDT First - sorry I'm not asking how the virus will affect the economy. So I have a tenant who weighs about 350 American pounds and lives in a studio apartment of mine. I have already replaced the toilet to an elongated model and moved the vanity over 4" to make up for his substantial girth. Now there is a major issue with him using the shower. He has a standard sized 30" x 60" tub with a shower rod. When he is in the shower, his 60-pack pushes the curtain the the brink and the shower water gets all over the floor. The water then pools in the bathroom and drips through the floor and into the bed of the unit below. Gross. I've had him put towels on the floor to help soak up the water, but he is too large to pick them up once they are wet and they are now contributing to a moisture problem. How do I deal with this without discriminating against him for being obese? Any ideas? Inputs? Thoughts? Funny quibs? Gracias. P.s. sorry I didn't ask for your speculations about the RE market in regards to the virus. [link] [comments]  |
| Would you make this house offer? Posted: 01 May 2020 10:44 AM PDT I have looked through many historical posts relevant to my income/house price levels, but am really conflicted on if we should make an offer on a house or not (of course all this assuming the offer is accepted) and would love opinions. House listing price: $900K. This is a 3/1.5 SFH in a VHCOL area - this is probably a low price for the home given that SFHs are rarely available and I'm sure there will be multiple offers bidding over asking. We are picky on location and this is in one of our top neighborhoods, and is nearby where we live now so we are very very familiar with the area. The home was built in the early 1900s and the owners for the past 20ish years (who are now moving to retire) have taken amazing care of it and done interior renovations over time. It seems to be in excellent shape. Relatively new roof (2015), new sump pump/French drain system in the past 2 years, kitchen and bathroom both renovated and updated in past 8ish years. Beautiful terrace/yard space which is very rare here as well.
The other consideration is that we likely would have to waive inspection to be competitive. We will not be waiving appraisal or mortgage contingencies, but it is very very common in our area to waive everything to get an offer accepted - we likely have no/low change if we don't waive (we have tried having a large $10K inspection deductible but have never been successful with those offers). The owners have definitely taken very meticulous care of the home, but still, it's an old home and a lot of money. It definitely feels risky to deplete our "house savings" though that is exactly what we have been saving for. If we did get this house (a big if), it would also be our forever home, truly. It has everything we want and is a very rare find for the area we're looking for. We have been house hunting for about 7 months now, and yes we could renew our lease again but we're not trying to time the market. Would you make this offer? Thanks for your opinion! [link] [comments]  |
| I’d like to invest in a property Posted: 01 May 2020 04:34 PM PDT I need advice - I'm in my early twenties and I hate throwing money down the drain for rent each month and I'd like to purchase a home in the near future so it can be invested in something! I might be moving due to a potential job opportunity and the area has very affordable houses. There's one in particular that caught my eye for $40,000 which loosely is a mortgage of ~$350 a month for 15 years. I could put 10% down upon purchasing. Renting in the same area is anywhere from $800-1000 a month. If I were to purchase the $40,000 home and pay twice the mortgage each month ($700) but choose to leave the area/sell the property in 2-3 years (who knows what will happen or how long I'll stay). Is that a silly idea? In my mind it makes more sense to purchase and invest my money to get a return later on, but I've also heard you shouldn't buy unless you plan to stay for 5+ years. Thanks in advance, any and all helpful advice is appreciated. [link] [comments]  |
| Looking For Opinions for How Much House I Can Afford. Posted: 01 May 2020 04:33 PM PDT My fiance and I have been looking to buy and have been looking for the last 6 months or so. We stopped for a little bit when the virus started happening. We were actually under contract in early March for a house right as the virus was hitting and the severity was unknown, but the inspection showed some bad things, so we got out of that contract. Now our jobs seem to be safe and are starting to look again. I am thinking that we can afford around $175k, but my fiance thinks I am short changing us a bit and we can be looking in the $200-$225K range. We plan on staying at this home for a long time, if not forever. We are looking in northeast Ohio, where $175 - $200 can get you a pretty decent house. For reference, we are going to look at this house this weekend: https://www.redfin.com/OH/Mentor/5996-Harrison-St-44060/home/66148179. Which is in a great neighborhood. So our financials: - We both make the same at ~$50K a year plus a bonus, which has been giving us around $8K extra each a year. So just salary ~$100K and $116K with bonuses. I don't take the bonus for granted, so we have been budgeting as if we would not get one. After taxes we each take home about $1,380 every two weeks. We have no kids and are thinking about having one, at the very most 2, but this will be years from now. - When I was under contract I was locked at a 3.25% interest rate and my credit is 740. My pre-approval is $250K, but I know that I can get pre-approved for way more than I can realistically afford and pre Covid, probably a decent amount more than $250K. - In terms of debt, I have student loans that cost about $530 a month and she has a car payment at $320 with a little less than 2 more years left. Neither of us have any credit card debt. - As for a down payment we are looking to put down $20K. In our last contract we were putting something like $18K towards the principal and paying PMI all at once around $2K (if I remember correctly). They were paying all closing costs. Let me know what you think. Thanks in advance. [link] [comments]  |
| How to determine if a house is worth buying as a fixer upper Posted: 01 May 2020 12:41 PM PDT Hi all, My husband and I are looking into a fixer upper in the Seattle area. We were wondering how everyone goes about determining whether a home is worth it's trouble. Do we get a contractor to come out and find problem areas before putting in an offer? Or just look at inspection report and go from there? We are completely new to this and any advice is appreciated. [link] [comments]  |
| Hedging Approval / Multiple Loans in Underwriting? Posted: 01 May 2020 04:04 PM PDT Hey all, I was given two competing offers with comparable terms but was debating on how to go forward. I've got very stable income, as well as a pension pending, but also have multiple properties. I know with differing mortgage overlays, my debt-to-income may be a factor Is there a way to hedge my bets on making sure I get approved for one of these loans? It's for a refinance, so it's not the end of the world, but I wanted to see if it made sense to tell both to continue the process and go into underwriting and see if any issues come up? Or is the proper thing to do to pick one, cancel the other, and wait and see and go back to the other one if any issues pop up? [link] [comments]  |
| Help me play "Decode the Seller's Agent" Posted: 01 May 2020 04:03 PM PDT I just got back from a second viewing of a home that I want to put in an offer. The seller's agent was giving off mixed signals and I was hoping maybe some of you can help me figure out where he's coming from? Background: The property had been listed for years and was simply priced _way_ too high. I asked the agent about this and he was blunt and said that it was another agency that set the price and it was ridiculous and he talked the seller down to a more reasonable price. It went under agreement in March at the lower asking price (actual offer unknown) but fell through due to buyer financing issues according to the seller's disclosure. I am shopping without a realtor because I'm familiar with the area, prices in the area, and the buying process. My attorney will cover any paperwork needed. So maybe he doesn't think I'm serious when in reality I had my pre-approval renewed days ago and I'm ready to put down 20%. When I began the second showing, he started with "I just want to let you know that the buyer has an offer." He had a defeatist attitude like he expected me to turn around and leave. I said "okay" and walked through again thoroughly and spent about 15 minutes directly asking all sorts of questions trying to get any other disclosures out of him that he wasn't required to tell me unless I asked. As I was leaving, I asked him about the existing offer. Obviously he was vague about it. I asked if it was above asking (which is common in my area) or if it was all cash (again, not uncommon), he said "no but it's a good offer". We had already discussed at the first showing that I was unable to get to asking but could get close. Upon leaving I told him I wanted to submit an offer and asked if there was a deadline but he gave a very obtuse answer like "It could happen tonight, it could happen tomorrow. Or nothing could happen." The whole conversation didn't have an air of him trying to bait me into getting an offer in ASAP. It almost seemed like he was implying I should give up. The attitude made no sense to me because any realtor should be trying to get in as many offers as they can (even if it's not as good) to try to leverage them. So I am completely lost trying to figure out this seller's position. Anyone have any thoughts on what may be going on from their side? Thanks for any help. [link] [comments]  |
| Doing a private party land transaction, any thing to keep in mind? Posted: 01 May 2020 03:41 PM PDT There's a sub division that I've had my eyes on for over a year. Rarely does anything pop up for sale and the ones that do are never anything I'd want. So I pulled up the assessor's map and found the lots that I liked. I wrote maybe a dozen hand written letters to each owner saying I'm looking to buy and if they're interested in selling they could contact me. I got two responses and one of them accepted a fairly low offer, based on what I've seen closed on mls. It's a beautiful spot, it's in my budget (cash), and he and I are doing the transaction private party (through a title shop). My realtor friend told me I'm safe if I get an owner's title policy and go through a legit title shop (old republic, first american, etc). I know the area really well, have the cc&r's. Is there anything else I should double check before I sign anything? We have a price agreed to and how we'll handle the fees. [link] [comments]  |
| Posted: 01 May 2020 09:38 AM PDT What real estate book would you recommend to somebody who has never bought any real estate? What real estate book has had the biggest impact on you? [link] [comments]  |
| I (21F) am considering buying a house Posted: 01 May 2020 03:34 PM PDT I have a 50k inheritance that was meant for college. I don't plan on going to school and I've been out of my parent's house for 3 years and have been working the same job (waitress) the entire time. I pay 550 for rent right now and I don't have any money in my personal savings (other than the 50k) after rent. I'm wondering if I should consider buying a house with that chunk of money as a down payment because I feel like I'm paying rent when I could be putting that money towards a house that I could later sell and make more money on. I found a house that's really cheap for the area and close to where I work (Atlanta). I also think that my roommates would be down to move in with me if I were to make that move. I have no knowledge of real estate or wether or not this would be a good idea for me in the long run and I haven't brought up this idea to my parents yet because its still very new in my mind. [link] [comments]  |
| Posted: 01 May 2020 09:33 AM PDT Put down a bid for a house that was going to flat out accept the highest bid by a deadline that ended yesterday. Found out today that we did in fact bid the highest by a few thousand, but were turned down because the realtor doesn't like rural development loans. Can anyone shed some light on this? I am now worried about my future house prospects. [link] [comments]  |
| Posted: 01 May 2020 03:17 PM PDT Given the uncertainty with the market and the fact that we don't want to get stuck in our starter home for potentially another 10+ years, my husband and I have decided to try listing our condo. Financially, it makes sense for us to do this, perhaps find a 6-month rental agreement, and try to scoop up a foreclosure or something after things have likely fallen lower. However, I am terrified of catching this disease and I don't know how to calm down while we go through this process. The thought of having people come into the home where we are living, taking photos, moving furniture, opening cabinets, etc. scares me. The real estate agent we spoke to today said they can set up virtual tours and such, but I know we'll eventually have to let people in (if for nothing else than to inspect). Is anyone else in a similar situation? How have you treated the risks? And do you even think it's a good idea to sell right now? I realize every state/city/neighborhood market varies. Seems like experts are pretty torn at the moment. [link] [comments]  |
| CARES Act Forbearance and effect on housing prices Posted: 01 May 2020 11:31 AM PDT Any thoughts on how up to a year of forbearance before a lender can exercise remedies will effect prices? If a bunch of homeowners with equity lost jobs in a normal environment, you might expect a glut of houses on the market which would drive prices down. But with the CARES forbearance options, the alternative would be paying rent versus potentially nothing for a year. Hanging onto a house seems like a great idea. I was looking at some of the FHA post-forbearance options, and some are fantastic for the homeowner — you could not pay for a year, and then have a subordinate mortgage at 0% interest that doesn't need to be paid until the end of term or when the house is sold. If I had access to that deal, there's no way I would sell right now — that's quite the lifeline. That might also push people to choose to buy now before a job loss just to have the option later. That's probably, in part, what was intended by the CARES forbearance — I.e. to not create a bunch of incentive to sell and keep housing prices stable. Obviously al bets are off if we get into a prolonged recession/depression — but as it is most homeowner in the country have up to a full year to financially recover before they will be forced to sell. Thoughts? [link] [comments]  |
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