Requesting positive vibes - just put in offer number 5 Real Estate |
- Requesting positive vibes - just put in offer number 5
- Catch on 5% vs. 20% down?
- St. Joseph in the wild
- Would you buy a house with no basement?
- How to get Into Real Estate?
- Buyer commission
- Listing getting stale? - Orange County, CA
- [Buying] Rural Land In A Cold State w/ Broadband
- Leased Tesla solar panels
- Update on my previous post about seller wanting post closing possession
- Operating a Rental Property at a loss...What Now?
- Lowball offer on overpriced house.
- Will property taxes rise from invading New Yorkers?
- Walking through Master Bathroom to get into the Master Bedroom?
- Weather or not? Is there a seasonal advantage to buy a home?
- Family friend offered reverse mortgage.
- Need Advice - Should we extend an inspection extension for the third time?
- Unit Name Discrepancy in Condo Deed
- Question about taking class and license
- First time homebuyer - general home improvement costs
- Buyers market in 2021?
- Potential Wholesale Deal?
- Illegal Bedroom = No Mortgage?
- Failure to disclose HOA for water well monthly dues (water assn)
| Requesting positive vibes - just put in offer number 5 Posted: 03 Oct 2020 08:48 AM PDT I never thought I'd be in a position that, after 4 offers, all over asking, I'd still be searching with no end in sight. It's been a really emotionally draining process. Please send up positive vibes! Edit: grammar Edit 2: just found out I didn't get the home. 😫 [link] [comments]  |
| Posted: 03 Oct 2020 08:46 PM PDT Looking for input from somebody with RE experience to help explain the 5% vs. 20% comparison. How is 5% down not nearly always more favorable than 20% down? Let's use a 200k property for this example (and bear with all my assumptions). 5% vs. 20% down is $10,000 vs. $40,000 in present value. So, we are essentially trying to justify going through the 5% down route for the sake of having an extra $30,000 RIGHT NOW in today's money. Why? Leverage. Let me break it down based on my amateur and most likely spotty reasoning. 5% down on 200k will mean that you will end up paying more in interest and PMI vs. if you had put down 20%. Average PMI in this case comes out to roughly $6,500 TOTAL (sum of monthly PMI payments until 20% equity is reached). Additionally, the extra amount you are paying in interest by opting for 5% vs. 20% is roughly $110,000 vs. $90,000 (based off a 3.3% interest rate over 30 years). This is obviously because the interest rate is being applied to a larger mortgage amount in the 5% down case vs. the 20% down case. So, and I know there has to be something I am missing which is why I'm posting this, the total amount extra "wasted" by putting 5% down vs. 20% comes out to $26,500 ($110,000-$90,000 = $20,000 and then tack on the $6,500 additional paid to PMI ). Now, this of course would be a no-brainer analysis if you went ahead and used the extra $30,000 difference on something that does not appreciate (you would be giving yourself $30,000 of breathing room in the present, but would ultimately be losing $26,000 EXTRA over the course of 30 years). However, if you decided to leverage that $30,000 by instantly investing it in the stock market, in theory (based off of a 7% annual appreciation in the stock market) that $30,000 would grow to $240,000 over the course of a 30 year investment period. So, by putting 5% down and immediately investing the extra $30,000, you are saving yourself $214,000 ($240,000 (value of the $30,000 investment after 30 years) - $26,500 (extra you would save by putting 20% down vs. 5% down after 30 years)). Of course, the market could yield a lower average yearly appreciation; but likewise, the RE market could do the same. Also, this is also of course assuming you could afford the extra monthly interest and PMI payments, have excellent credit, and have the difference in down payments immediately ready to invest. So, I guess what I am trying to get at is what am I missing? It just seems like this is cut and dry, even if assuming average yearly stock market return is even half the assumed amount. Can somebody please genuinely explain the factors that I am missing? TLDR ish; Trying to determine the pros/cons of putting 5% vs. 20% on a property. I am looking for somebody who can help open my eyes to how, based on current and past trends, 5% down is not always consistently the better financial decision if you immediately reinvest the extra 15% in the stock market. I am genuinely looking for more insight into this and know my analysis is very heavily based on my amateur DD. Is a 5% conventional loan unachievable in a typical scenario? For a $200k property, I come up with roughly the following: 5% vs. 20% down: $30,000 difference in present value. If you put 5% down and immediately invest that difference of $30,000 into the stock market, this amount would grow to $240,000 over the course of 30 years (based off a 7% annual ROI). By putting 20% down, you are directly avoiding $26,000 in extra interest and PMI payments ($110,000 with 5% down vs. $90,000 with 20% down in total interest paid comes out to a $20,000 difference, plus a total of $6,500 that is paid in PMI by not putting 20% down). So, is saving $26,000 worth losing out on potentially $240,000? Under my assumptions in this case, putting 5% down yields an extra $214,000 over the course of 30 years ($240,000-$26,000). What am I missing? Any help is genuinely appreciated. [link] [comments]  |
| Posted: 03 Oct 2020 05:53 PM PDT A friend, who is Jewish, sent me this picture asking what it was because she dug it up in her backyard today. Honestly, if it wasn't for this sub and a recent post I would have never known that the St. Joseph statue was. I still thought it was crazy, but here one is, abandoned in the wild. [link] [comments]  |
| Would you buy a house with no basement? Posted: 03 Oct 2020 11:04 PM PDT Just curious as to how this may affect a property's value in an area where basements are very common. [link] [comments]  |
| Posted: 04 Oct 2020 12:13 AM PDT Hello all, real estate sounds interesting to me but I have no clue where to begin. I am a 19 year old and would like to begin the steps to obtain a license but I'm not sure what site is credible enough to start with. [link] [comments]  |
| Posted: 03 Oct 2020 01:42 PM PDT Ok, so In the last day, we accepted an offer on our home (which our realtor priced slightly high, so we're all very happy) for full asking. He was also acting as our buying agent (we really liked him, and he's been amazing), so he negotiated a lower selling commission with us. We also, on the same day, got our offer accepted on our dream home (I'm honestly still in shock! I thought there was no way our offer would be accepted, after all the horror stories and all that). It was a multiple offer situation, and they asked for final best. We dropped everything off it (asking for 3k closing costs, and home warranty). There was no way I'd live with myself losing this house for 3.6k, and we're making enough from our home sale that we can easily cover this and a 35k down payment. Listing price was 168.5k, we offered the max we were approved for, 175k and no seller concessions. We do also have a contingency of our house selling. We won, mostly because we have a local lender (NC), while a similar offer had a lender in NY. This was also the first offer we'd placed on a home! I'm still in shock. Anyway, here's my question. We found out the commission is a little lower than most of the other homes we were looking at (2.4%). I can tell our realtors a little bummed, but he's said it's fine he just wants us to be happy, and the review and word of mouth we've given him. He's a bit newer (he had an experienced one helping him out and advising him too). My wife and I talked, and though it's not making up the entire difference, we'd like to, after the closing and we have keys in hand, take him and his wife for a nice steak dinner (we'd already told him and his wife this, they're both awesome people). But also, we'd like to surprise him at dinner, and though it won't make up the full difference from a full 3% commission, give him $500 in cash (call it a tip, call it a thank you, whatever!). Is there anything non kosher or unethical about this? I just wanted to check before I put him or us in a weird or awkward position. We honestly owe him everything, he has been amazing through this entire process, and gone well above and beyond for us, and we feel like it's the least we can do. [link] [comments]  |
| Listing getting stale? - Orange County, CA Posted: 03 Oct 2020 08:24 PM PDT We have a 3/1.5 Townhouse in OC that we listed officially on 9/15. We're looking to buy in the Long Beach area to be closer to family which prompted this sale, along with the insane interest rates. Our realtor was very confident and showed us a lot of data about 80%+ of homes in our price range/area/condition selling in six days on average. Our first weekend we had over 20 showings and an insane amount of interest, and received three offers. The one we accepted was nearly $20k over list after counters and a small bidding war. Turns out our prospective buyers missed the earnest deposit date, and we were told in short that they got "cold feet" and decided to pull out about five days into escrow. Unfortunately the two backup offers found homes as well, and we were forced to relist the property on 9/29. In the few days since our listing returned, the buzz is basically completely gone. We had two last minute showings today and outside of that crickets. Our realtor seems to still be supremely confident (as most are), and told us that this is normal for a house that's been active for almost three weeks since buyers start wondering what's wrong with it and why it's still sitting around when everything is flying off the market in a few days. We mentioned potentially pulling the listing if we didn't get any offers after this weekend and re-evaluating next Spring, and she said she's "99% sure" the house will sell for at least list price if we give it 30 days. Is there anything we can do to help move this along besides sitting around? We really didn't want to be moving deep into the holiday season, and with how crazy the market is right now it's pretty much pointless to look ourselves since our offers aren't taken seriously without our house being in escrow. Going from 20 to 2 showings in the span of two weeks seems crazy, but maybe I'm just naive. [link] [comments]  |
| [Buying] Rural Land In A Cold State w/ Broadband Posted: 03 Oct 2020 10:36 PM PDT I've did some searching on this subreddit, but nothing has really helped answer my question. I am looking for rural land to drop a mobile home on, in a colder climate, I want to be near a city of over 85,000 (number pulled out of my ass), and I need a fast internet connection. I want to be in the country, far enough away from fast-food and gas stations to not be convenient to just pop in. Maybe work towards building a permanent cabin while I live in a trailer. I also want to be near enough a medium sized city so I have access to jobs, music, events, nightlife, etc. I currently live in Kentucky, raised in Illinois. I miss snow. I'm living in-town in an attached townhome. I just want the freedom to play loud music, or piss off my back porch if I feel the need. Unrestricted land, no close neighbors, no hoa, close enough for city water/electric. Off-grid might be an option down the road, but not something I'm aiming for from the beginning. I work in IT and can work remote anywhere I want, but I'd also like to find a job locally to where I'm at, so if the nearby city could have some tech jobs then that would be icing on the cake. My initial thoughts would be somewhere like near Detroit? I've read its becoming more of a tech city. Anywhere with a sufficiently sized hospital should be good though, they all need IT folks. My history is with VMware and physical infrastructure mainly, but I also have experience with sysadmin and end-user support type of jobs. Am I asking for too much? Is this a unicorn type of situation? Or is this type of land going to cost me an arm and a leg? I'd like to keep the total cost for everything up to being able to move into the mobile home to $100-150k. I own my current place, but this was my only experience buying property, so I don't even know where to start looking, let alone the process. I have checked Zillow and landwatch, but they don't do much for telling you what internet is available at a location. Any tips would be appreciated. Edit: I only need a small plot of land 1 to 5 acres maybe? [link] [comments]  |
| Posted: 03 Oct 2020 05:37 PM PDT Interested in making an offer on a house that includes leased Tesla solar panels. 1st time homebuyer. Zero knowledge when it comes to solar panel systems. What are some things I should take into consideration before proceeding? I've read that taking over a lease can become costly if you need to do any sort of roof maintenance. What are some other downsides? Any guidance would he helpful. [link] [comments]  |
| Update on my previous post about seller wanting post closing possession Posted: 03 Oct 2020 07:50 PM PDT Here's my original thread https://www.reddit.com/r/RealEstate/comments/j3eyfr/seller_requesting_post_closing_possession/?utm_medium=android_app&utm_source=share After a lot of comments from that post and talking with my significant other we were ready to walk, we didn't think it was a good idea to put ourselves in a leaseback agreement with covid currently lingering and being in NY.. They originally wanted 90 day closing plus 10 days post closing We said we wouldn't not budge on the post closing, we went on to say we obviously want to get in as soon as possible especially due to the possibility of covid cases rising but at the end of the day the leaseback was the main problem and we really wanted the house so we said we'd be fine with 60 or 90 days without the leaseback Today our lawyer contacted us and said they accepted these terms "$5,000 credit Closing on or before 90 days No post closing possession" I don't think there will be any issues but I guess you never know, we really want the house and this seems to main compromise we can come up with. Is there anything we should have our lawyer add to the contract considering this longer closing period or to protect ourselves further? Just thought I'd provide an update since many were helpful in my original post [link] [comments]  |
| Operating a Rental Property at a loss...What Now? Posted: 03 Oct 2020 10:38 AM PDT No votes yet Hey all, I bought my first property a 2BR/2BA In April of last year (before I found BP or how to calculate cash-flowing properties), been living in it until about a month and a half ago. I'm moving out of the country at the end of the year to study abroad, and found a property management company to take care of things. Got a tenant in place already, here's the breakdown: Rental Property Cost Breakdown Mortgage/Insurance/Taxes/Escrow: 1215.35 Property Management: 137.5 HOA Fees: 366.56 Total Cost: 1719.41 Rental Income: 1650 Loss:69.41 This isn't even calculating maintenance costs... In the second year, if my tenant renews I get a 35% discount on my management fees. What is my best course of action at this point? I know I can deduct passive rental property losses form my active income (I make less than 100k) Some other info: -I have about $15k in reserves -Next year I won't be working in the States, or for an American company, but I will be receiving a W-2, but can offset those taxes due to the following: "The Foreign Earned Income Exclusion, which allows you to exclude $105,900 from your foreign earned income on your 2019 US taxes and $107,600 on your 2020 US taxes The Foreign Tax Credit allows you to offset, dollar-for-dollar, the taxes you paid in your host country with your US taxes A Foreign Housing Exclusion which allows an additional exclusion from income on US taxes for certain amounts paid for household expenses that occur as a consequence of living abroad" -I'm a single guy with no family, so my lifestyle is pretty flexible. If you need any more info, please just ask! Thanks. [link] [comments]  |
| Lowball offer on overpriced house. Posted: 03 Oct 2020 07:33 PM PDT So, there is a house (central IL) I'm interested in, on the market since March. Despite several price drops ($30k), I still think the house is still greatly over priced. Currently it's at $275k, but looking at the houses sold over the past 2 months the average price for similar homes (same beds and baths in the same subdivision, similar extras such as fireplace, new appliances/systems, etc) is at $242.5k ($228k, $237.5k, $273k, $230k). Another one sold at $260k in July, but even including that the average is about $245k. According to Zillow the average for the zip code is at $232.5k, but I will say that the "Zestimate" is currently around $265k, though which is slightly higher than the others, and much higher than its zestimate of $242k in March 2020. Max I really want to pay is $245k, but lower would be better, so would it be appropriate to go in at $235k (approximately 85% of current asking) with a personalized offer letter trying to appeal emotionally? Would it be better to start closer to $242.5 and try negotiating after inspection and appraisal? If not, are there any suggestions on appropriate starting offers? I'm a first time home buyer and am unsure what to do. I dont want to pay too much and then end up with a housing crash in a couple years and the appraised value Falls below my remaining loan, requiring me to come up with tens of thousands of dollars immediately. [link] [comments]  |
| Will property taxes rise from invading New Yorkers? Posted: 04 Oct 2020 01:21 AM PDT https://www.nytimes.com/2020/08/30/nyregion/nyc-suburbs-housing-demand.html According to that people are offering 20%+ asking in cash... Maybe I'm wrong, but didn't this type of migration force people out of their homes in the silicon Valley area/suburbs/surrounding region? Surely this will raise property value and thus taxes? [link] [comments]  |
| Walking through Master Bathroom to get into the Master Bedroom? Posted: 03 Oct 2020 07:57 PM PDT Hi all. Currently shopping for a house in Florida, and found one that checks all of the boxes. It has an odd quirk though. The only way into the master bedroom is through the courtyard or through the master bathroom... I'm totally okay with this, but would this kill resale value? The master bathroom is very spacious and the toilet has its own door. 🤷♂️ lol. Anyway here's a video. Appreciate your thoughts! [link] [comments]  |
| Weather or not? Is there a seasonal advantage to buy a home? Posted: 03 Oct 2020 11:39 PM PDT This summer as soon as I'd find a house I was outbid, out bought, out of luck. I am retired and a vet and would love to buy a home, but too many heart breaks. Is there any advantage to looking in a particular season? I have a realtor that is too busy to help me look it seems and only waits for me to call if I find one, and no real motivation to even go to bat for me. I feel like I'm not worth the effort. So I wondered if I could develop a strategy timing wise. I have a lender and have been qualified. Grateful for any tips. [link] [comments]  |
| Family friend offered reverse mortgage. Posted: 03 Oct 2020 11:33 PM PDT I have a family friend tell me he wants me to do a reverse mortgage on his house since he has no family, and we're the closest he has to it. How would the process work? Is it a good idea? [link] [comments]  |
| Need Advice - Should we extend an inspection extension for the third time? Posted: 03 Oct 2020 05:02 PM PDT My husband and I are in the process of selling our home. The closing date is Oct 12th. The buyers have requested and we have approved 2 extensions so far, and now (an hour before the latest one is over) they are asking to extend again because they are having wifi issues. Should we extend? It feels like they are just walking all over us. [link] [comments]  |
| Unit Name Discrepancy in Condo Deed Posted: 03 Oct 2020 06:47 PM PDT I bought a condo last month in PA. The Deed says that I purchased <address> "Unit B". I just noticed in public records that in 2016 there was an official amendment made to the condominium for the units to be called "Unit 1" and "Unit 2" (instead of "Unit A" and "Unit B"; it's a two-unit condominium). I've asked my title company about it and they said that I shouldn't be worried about it and it's not a big deal. Didn't get much context other than that from them so I'm following up to get more out of them. Think I should push to get it officially changed on my deed to "Unit 1" to match the amendment made in 2016? Am I kind of SOL though since closing already happened, and can expect that any changes will come with legal fees? I should also add that if I don't get more from my title company, I'm going to get some input from a lawyer, but I'm eager to hear other thoughts on this so figured I'd post here! [link] [comments]  |
| Question about taking class and license Posted: 03 Oct 2020 10:14 PM PDT How many years after passing the class in the class exam do you have to pass the actual real estate exam in the state of Florida? Also, can you have the real estate license with a felony on your record? I thought that once you pass the class exam you have 2 years to pass the state exam or you have to retake the class in Florida. Is this correct? [link] [comments]  |
| First time homebuyer - general home improvement costs Posted: 03 Oct 2020 06:04 PM PDT Me and my SO are looking at purchasing our first home. After our 2nd showing, we really loved the house and put in an offer and it was accepted. We were very excited, until we got the inspection report. There were a lot of red flags for the house, as it is nearly 80 years old. There were some issues with potential water damage to the foundation, lead paint, asbestos, old roof, bad electrical, old appliances. The risk just felt too high to pull the trigger. I feel at this point I need to gain a better understanding of typical home improvement costs and items that need to be done professionally. Is there a general guide to these home improvement costs and information that already exists or is it something I need to put together myself through research? Does anybody have any suggestions on avenues they took to become better informed/prepared when looking at homes and predicting what future costs could be coming their way? TLDR; what are the best resources/tools for becoming more knowledgeable on home improvement and their financial costs. Thank you. [link] [comments]  |
| Posted: 03 Oct 2020 09:15 PM PDT Hi All I was wondering if December 2020 to march 2021 is going to be a buyers market, as march will be end of mortgage forbearance. What do you think? [link] [comments]  |
| Posted: 03 Oct 2020 08:42 PM PDT I'm trying to land my first wholesale deal. I'm talking with this person that is selling a home for 156 that's with 200k. The home may need light repairs. I'm new to this and I don't want to contract a home that's not a good deal, is getting a home for 44k less that what is worth a good deal? If it is a good deal, how do I calculate my fee for transferring over the contract to a cash buyer ? [link] [comments]  |
| Illegal Bedroom = No Mortgage? Posted: 03 Oct 2020 04:51 PM PDT We put in a no-contingency offer on an absolutely lovely house that was listed as a 3BR and has a fourth bedroom. We are under no misconceptions that it's a "real" bedroom from an appraisal/home value perspective (septic is too small for a 4BR), but we are concerned that a mortgage lender would require a certificate of occupancy for the fourth bedroom (which we cannot get) and then deny our mortgage outright. We are fine with it only being apprised as a 3BR, but would be out 100K if our lender straight-up says "we're not giving a mortgage on that house" because we don't have a mortgage contingency. Is this a real risk, or are we over thinking it? It seems like that would make this house completely unmortgageable, which seems like an unlikely outcome - but if we lose our earnest money it's a very bad outcome, obviously. [link] [comments]  |
| Failure to disclose HOA for water well monthly dues (water assn) Posted: 03 Oct 2020 07:55 PM PDT Hi all! We received clear to close and had the notary sent to our apartment to sign on our house (first) today. The seller has been a bit rushed to close and strict on the 3-week nature. While going through the documents, my wife and I spotted an HOA monthly fee for the water well for a charge of $80.00. This was never disclosed to us, nor my agent. He called this listing agent who he can't get a hold of at the moment. We did not sign the HOA disclosure document or the settlement statement that has this fee listed on both. Question is - what can we do here? This will now cost us $28,800 in the next 30 years. The fee wasn't disclosed until now and the notary was very much pressuring us to sign with statements geared around "it is what it is" and "are you going to give the house up for $80?" (Which really kind of pissed me off and rubbed me the wrong way). Additionally, we had signed a contingency of paying up to $20k of the difference if the house under appraised, which it did, by $19k. Should we negotiated this pricing down with the HOA now looming? Lastly, if it is the fault of the listing agent and not the sellers, do we have a leg to stand on to negotiate, or do we ultimately have to pay the $80 a month from now on and just sign? [link] [comments]  |
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