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    Home Unlabelled Given the 3 rules of RE, wouldn't it be nice if more users weren't so scared to post their location? Real Estate

    Given the 3 rules of RE, wouldn't it be nice if more users weren't so scared to post their location? Real Estate

    January 30, 2021

    Given the 3 rules of RE, wouldn't it be nice if more users weren't so scared to post their location? Real Estate

    Given the 3 rules of RE, wouldn't it be nice if more users weren't so scared to post their location?

    Posted: 29 Jan 2021 03:10 PM PST

    Location, location, location. It really matters in RE discussions.

    So often I find myself reading comments in this sub that seem to have good information, but are in fact 100% useless because the Redditor is too shy to post their location. Think of all the comments that begin:

    "In my market something something something" (then doesn't specify which market).

    Great, that's meaningless information.

    I get being privacy-conscious, but nobody will glean anything about you by posting the state or city you live in.

    Mildly annoyed in Philly.

    submitted by /u/Clevererer
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    The Ultimate Guide To Getting Your Offer Accepted

    Posted: 29 Jan 2021 08:14 PM PST

    Every other post here is people struggling to get offers accepted. I absolutely hate reading these posts because everyone should have an opportunity to own a home they love and not just settle on. No fluff, getting straight into it.

    Prepping For The Market

    1. Pre Under-Written Approval - The lender/broker has already verified your credit/assets/debts to income. Get all your documents there. Also, make sure it's a reputable lender/bank/broker for your area. I can't stress this enough. Us realtors doing 70+ deals a year have worked with every lender under the sun. If the lender is a red flag, you will have a severe disadvantage.
    2. Research Who To Hire - There's a small portion of Realtors & Loan officers doing most of the deals in the area. In a competitive market, get someone with experience. If you think you're going to piss off a friend/family member with a license here's some advice. I've personally partnered with new agents that were a friend/family member of a client and they learned a ton about the process and I mentored them through the deal. This way, we both had communication with the client.
    3. Analyze Your Competition - Have your Realtor call the last pended home you love. They ask two questions - how many offers the LA received / how far % over ask are similar homes selling for. This will let you know two huge factors. How many buyers you MIGHT encounter on the next house, and how far over ask people are paying.
    4. List Price Does NOT = "Market Value" - This might be the number one take away from this thread. Too many buyers right now are looking at the top of their budget when many homes are priced slightly below market value. Yes, you're getting outbid because your 20k over ask offer might be market value for the home. That's why you see 50-70k above ask. Look 5-6% below your top of the budget and start there.

    Choosing A Loans

    FHA / VA - Even though these are different, for the sake of reading a lot of what I'm going to say is going to apply here. FHA is the default for a lot of first-time buyers VA for veteran first-time buyers. The issue with these types of loans, arent the loans themselves and the repairs. It's if they are being presented in a market, to an agent that does no FHA/VA they will have issues explaining it to the seller. The more uncertainty you introduce into a deal the harder it is to get accepted.

    For VA Do this - Put money DOWN and get it back as a credit if the amount satisfies the closing costs. Yes, people use VA as a 0% down loan, you can still do that - but you can still put a lump sum into escrow, and it will be used toward closing costs. Any excess will be credited back to you at closing.

    FHA + VA Repairs - Address this on the offer to eliminate issues. Include paying up to $15,000 toward repairs on the home (if any). This will quell any issues with the agent telling the seller about repairs.

    Conventional - This is the #1 loan type we see in Boston. A lot of people putting 5% into escrow and 20% down (you don't have to do this, but this is how you make it desirable). This is your default starting point to writing a good offer without the humps of FHA/VA.

    Rehab - If everything on the market is selling instantly, consider talking to your Loan Officer about rehab loan options. I've done so many of these in the past and they are always so awesome to see come together. If your budget is 700k, you're getting outbid, consider looking at 500k houses of similar size. Then use 200k as renovation repairs. Pro Tip - Don't make the mistake of looking at 'contractor specials' and think you will get these. They are underpriced and a good opportunity for an investor, you will get outbid. Think of homes that need work but are somewhat livable condition. This will option up more options for you.

    The Offer

    1. Escrow - Make sure you're putting a competitive amount down into escrow. If you're a two-step state like us here in Boston, MA - make sure the 2nd deposit is at least 5% of the sale price. but the higher the better. In my career and hundreds of transactions, I've seen 2 people lose their deposits. One was the fault of the buyer's agent on my listing, the 2nd was my buyer that just didn't want the house 2 days prior to closing. (just be careful)
    2. How To Waive Inspections SAFELY - Have your Realtor use their preferred Inspector to perform pre-offer inspections. In short, spend an hour + with the inspector. No report, just going over everything and take notes. If there's something catastrophic - move on. If not, waive the inspections on your offer and proceed.
    3. Buyer Knowledge Only Inspection - This means you want to do inspections, and if you're satisfied with them you will proceed and not ask for any repairs. Literally, write on the top of the page of the inspection "Inspections for buyer knowledge only." This is done in 'lighter' markets like ours in Scranton, PA. Not all deals are getting pre-offer inspections because there aren't 50+ offers.
    4. Use & Occupancy For Seller TOP Strategy - The best thing about this is that sellers don't see it coming. Imagine as a seller, closing on your home and stay in your own home, stress-free with money in the bank for 7-10 days, and leisurely move-out. This is what use and occupancy means. Cash is tight for some sellers. Repairs/moving expenses etc. this allows them to occupy the home for a few days/week after closing. It takes a lot of moving everything out the night before closing out of the picture. The other thing this does is it shows compassion for the seller, and you end up having some level of pre-negotiation because it's something the agent will remember. The key is to stick out and be different.
    5. Escalation Clause - This works in some states and not others. Here in Boston, we rarely see this but our team in Scranton does. This basically means you're willing to beat any offer by X amount of dollars UP TO a certain amount. This could save you a couple of bucks if they are used in your market. A rough example is as follows: 500k offer escalation up to 520k beat any competing offer by 5k. If a similar offer comes in at 510k, you will automatically beat that offer by 5k. So your offer would be 515k. SIDE NOTE: This does not mean you will get the house. If the other offer has better terms, 5k might not do it to beat the terms.
    6. Got Cash? ** Danger Zone ⚠️ *\* - Offer to pay X amount over the appraised value, or if you're really crazy waive the contingency altogether. This is if you have a lot in the bank and the house has some sort of ultimate value to YOU. Next to parents / in-laws / friends / work. Or totally unique one of a kind. Only do this if you plan on dying in that house.

    Tips for The Realtor

    • Write a compelling subject line in the email The BEST offer for 123 Main St
    • Attach a cover page to the offer with easily identifiable terms.
    • Combine ENTIRE offer into ONE PDF and Name the PDF AmazingOffer_123MainSt

    Tips for the Loan Officer

    • Call the listing agent and talk up your buyer.
    • Reassure that your buyer is good to go and is excited to do a deal
    • Mention you will do your best to close early

    —- Remember guys, real estate is a relationship business. People want to do deals with people they like and deals with people that make it easy and the MOST accommodating. Offer things the seller might not see on the other offer. As for getting outbid, I know it sucks, but don't focus on what has happened, focus on what you get to do. A lot of people out there don't even have the opportunity to own their own home. Think of each offer as a privilege you have the opportunity to do.

    In closing, I know this will not apply in every market and some suggestions may seem downright crazy. I work in two markets, Boston, MA and Scranton, PA — two totally separate markets but a lot of these we apply daily. But if this post helps 1 person find their dream home that will make my day so let me know in the comments. I wish you the very best!

    ---- Mike Urban, from Boston

    submitted by /u/URBAN0X
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    Market too hot?

    Posted: 29 Jan 2021 10:20 AM PST

    I'm in Denver and trying to buy a home. One popped up yesterday that looked promising. I made an appointment with my agent to take a look at today(noon) and was informed this morning that it was already under contract.

    Honestly it feels short sighted on the sellers part to not even give 24 hours for people to make an offer. Unless I'm missing something?

    Btw, there was no opportunity to view it yesterday as it was booked up and they're not allowing overlapping because of covid.

    submitted by /u/Nukken
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    I hate the house I just bought

    Posted: 29 Jan 2021 06:06 PM PST

    Well I've made a HUGE mistake. I found out I was pregnant with baby #2 and we rushed to find a new home to accommodate our growing family. Due to the limited market this fall we settled on a home that was actually 50k under what we were going to pay but it needs a little work, which we knew.

    Well, we put in an offer and I immediately began regretting the decision. I hate the super steep driveway, the neighborhood and now everything seems to be replaced...we already replaced the stove, dishwasher and now we have new windows coming for downstairs. I hate the outside of the house, the lay out, the small bedrooms, etc. I told my husband what I was thinking during the buying process when we were in due diligence and I even wanted to back out a week before and he told me a was being crazy or hormonal.

    This house was not the house I wanted or envisioned being our 2nd home but we were going to have a slightly lower mortgage and we took out money to pay off all our credit card debt. Financially is was a great move however I should known myself better and we should have spent more to get what I really wanted in a home that would have lasted 10+ years.

    Now I am stuck. Being pregnant, working from home and covid having me stuck at home more... I can't help but manifest on it every freaking day for the last 4 months of being here. It's weighing on my marriage as well because I can't help but mention to my husband how much this house sucks. I wish he would have listened to me or I would have listened to myself more but now I am literally counting down to when we can move again which I am hoping is the end of the year but my husband is telling me we need to wait 2-3 years.

    Has anyone else experienced this? What is the fastest you can sell without a huge loss? How can I make it better without pouring more money into? I am almost on the verge of tears because of this house which could also be because I am 7 months preggo...any advice is welcome.

    submitted by /u/Givemewineandcheese
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    Mortgage process is exhausting and nerve racking....

    Posted: 29 Jan 2021 06:03 PM PST

    Hi all, after getting outbid 4 times, I finally got an offer accepted. Getting pre-approved was easy, took maybe 2 hrs. However, this whole mortgage process has been nerve wracking and I constantly think about things that could go wrong.

    I've already paid for an inspection and waiting for the mortgage company to order an appraisal. The company requested typical W2s and account statements...etc.

    I got an email saying that I was approved with condition today and now they want a things like letter of explanation for my income, my credit card statement and something that says my balance is $0, and funds source and other things.

    All these requirements are making me very nervous and uneasy. My closing date is scheduled March 13 because the seller needed time to find a place to stay. I truly think I'll drive myself crazy.

    I think of so many things that could go wrong..... Let's say if they approve me for an mortgage. Can they change their mind right before the closing date? What if they don't approve me at all? Am I going to lose my earnest money and almost $1000 that I spent on inspection and appraisal?

    I am so sorry that the post is so long. Just wanted to talk to somebody. Is this supposed to be this hard? 😢

    submitted by /u/bearsschrutebeets
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    Offer over asking ghosted with no competing offers. Offer has now expired. I suspect seller’s agent will lie about having valid offer to get competing offers from showings this weekend. What should I do?

    Posted: 29 Jan 2021 10:08 PM PST

    I was considering asking an agent extended family member with a different last name (our agent is unrelated) to call and see if that's the case. Even if it, I'm not sure there's anything I can do. Story was property hit the market recently, we placed an offer above asking hoping to enter escrow before the weekend, and showed we could buy in cash if for some reason the loan doesn't work out.

    submitted by /u/a3pulley
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    We’re closing! Now what?

    Posted: 29 Jan 2021 08:50 PM PST

    I've moved in and out of plenty apartments but never a house. Closing on Monday and will have our apartment through March so we have time to move in.

    What are the things I must do before moving in? I feel slightly overwhelmed!

    submitted by /u/Due_Key81217
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    First Time Buying Getting Discouraged

    Posted: 29 Jan 2021 09:57 AM PST

    First time home buyers found place at the top end of our budget, put in offer $10K over asking price, and were rejected due to a much higher offer. I know this is going to happen a lot but is so discouraging and disappointing. Just looking for some encouraging words. How many offers did you put in before one was accepted? How much over asking price should we be offering?

    We wrote a hand-written letter, should we do that for every home we put an offer in?

    submitted by /u/Famous-Guitar8328
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    Help! Insurance company says I need new roof.

    Posted: 30 Jan 2021 12:13 AM PST

    I bought a house and have been living in it for a month now. My insurance company (Progressive) called and said something about underwriting / inspection determined that my roof needs to be replaced or my policy might be cancelled.

    Inspection report determined that the roof is 15-20 years old.

    Does anyone have experience with this?

    submitted by /u/meeplymeep
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    Appraisal contingency in Southern California

    Posted: 29 Jan 2021 10:28 PM PST

    Looking for an explanation here. My wife and I are under contract on a home. It was listed for 825k and we ended up getting the home for 905k and removed our appraisal contingency (literally can't get a home out here without doing that). We have a 250k down payment. Our loan will be for 655k. We should be fine as long as the appraisal comes in over 655k right? Can someone explain to me how this works with a substantial down payment like ours?

    submitted by /u/Jp20394
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    2008 vs 2020

    Posted: 29 Jan 2021 10:09 PM PST

    With all that's happening in the stock market, people have been comparing it to what happened in 2008. I was still kind of young back then to know what really happened so I did some google search. I learned back in the 90's, home rates dropped making the housing prices go up. However many weren't able too keep up with the loans and years of that led to 2008 where it had some part in the stock market crash. Please correct me if I'm wrong in any of this. When I read this article, if all felt too similar to what's happening now. Do you think it'll be a repeat in history?

    https://www.wealthsimple.com/en-us/learn/2008-market-crash

    submitted by /u/yamnut
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    Taxes for sale of the house? Please help

    Posted: 29 Jan 2021 09:35 PM PST

    Taxes for sale of house

    Hoping for some help. Inherited a house that was originally worth 50,000 and when I sold it was sold for 200,000. I had to split the proceeds with a sibling. The house was inherited because my mom passed and I spent the past few years taking care of her as the cancer spread to her abdomen and brain so I had to leave university and my job since she was on her own.

    The money from the sale is going to help me get my life back but what can I do from a tax standpoint so that I don't lose $36,000 (state and federal taxes)?

    Can I space out making payments?

    Any help or advice would be so amazing!

    submitted by /u/kqiwnw
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    (USA)(California) I have been waiting almost a year to be able to take my Salesperson exam

    Posted: 29 Jan 2021 11:31 AM PST

    When I try to schedule an exam, I get this error message: "There are no exams currently scheduling in the area(s) selected. Please check back in one to two business days."

    I check twice a day, every day, with a few exceptions. Is anyone taking exams right now or is it completely shut down due to COVID? Are there any alternative ways I can take my exam? This is killing me. I've been patient but I'm starting to get frustrated.

    submitted by /u/sublimei
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    Do I need to update my Driver’s license address to my new home?

    Posted: 29 Jan 2021 05:18 PM PST

    Hi everyone. My DL is currently under my parent's address and I was wondering if I need to update the address? I rather not be bothered with it since I'm always at my parent's house so I don't mind my mail to go there. I do have an owner occupied mortgage, freshly done. Thanks!

    submitted by /u/lindtdoo
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    realtor claims we didnt sign a contingency contract

    Posted: 29 Jan 2021 03:00 PM PST

    so long story short my parents met with a realtor in order to sell our house. the day of the signing they signed a contingency contract stating that if my parents cannot find a new home by march 31st or 2021, the contract is terminated. My parents are now not wanting to move, but they did not ask for a copy of the contingency contract and when they called the realtor to ask about it, they claimed that we never signed one. i know this is our fault for not asking for a copy of the contract, but is there anything we can do or do we have to find a new home asap?

    submitted by /u/Reminiscent97
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    Need direction on refinancing my mortgage

    Posted: 29 Jan 2021 08:51 PM PST

    I took an 30-year FHA home mortgage 5 years and 2 months ago on a 208,000 home, at the time I just paid for the closing cost and had 0% down payment (not something im proud of), also my credit score wasn't great at all, so imagine that, to put it in perspective, I'm paying 1466 a month for it and now I know my interest rate is 7.57% on the loan.

    All this time I just made sure I pay on time and never miss on payment, which I'm good here, suddently I started getting letters upon letters from different banks about refinancing my home. I grew curious so I started to investigate more. I found out that the average interest rate is somewhere between 2 to 5.5% for the home, whichs puts my interest WAY but WAY too high.

    5 years later, I have paid 11% of this loan and I'm thinking about saving money. Now I bought this home 5 years and 2 months ago at 208k, the home value today is around 260-265k give or take. I'm not sure how real state works here.

    11% paid of this house is $20,000 give or take, so I have 20,000 equity...? right? Now my house value went up to by $52,000, is this also equity or what happens to the 52,000 that the home value went up by. Is this own by the bank or is it my money?

    This is the real state number I don't understand.

    EDIT: my current credit score is 751, which transunion and equifax rate as "Excellent"

    EDIT2: I want to change to a 15-year refinancing, based on credit karma calculator, I will be paying 1,276 a month with a 2.621% APR - not sure this is correct

    submitted by /u/Fame_Monster
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    My realtor told me only 1 offer on a house can be made at a time. Is this true? If so do people actually follow that rule?

    Posted: 29 Jan 2021 12:05 PM PST

    How to get exposure to Miami and Austin real estate?

    Posted: 29 Jan 2021 08:39 PM PST

    I'm an investor looking to get exposure to Miami and Austin real estate. What's the best way to do this? Are there some good REITs you'd recommend?

    submitted by /u/leftmyheartintruckee
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    How much is your water bill?

    Posted: 29 Jan 2021 11:29 AM PST

    Just curious what typical water bills amount to?

    I'll be in about a 1200 sq condo! Located in San Diego, CA // just two of us.

    I understand there are many factors. But just curious what your water bill and sq footage is ? Condo/house? Just you? What city?

    submitted by /u/iloveechips
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    Need advice for seeing a home tomorrow with owner present

    Posted: 29 Jan 2021 08:04 PM PST

    I did post earlier about being a frustrated first time home buyer. My realtor is out of town this weekend and a home I really like was posted yesterday. I asked my realtor if there was any way I could still see the home and he reached out to the listing agent. Long story short, the owner will be letting me in tomorrow to see the home. My realtor says this is highly unusual. I am not sure what to expect.

    Are there any questions I should ask the owner? If I really love it, should I let the owner know?

    submitted by /u/Famous-Guitar8328
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    Personally guaranteeing a loan in an LLC

    Posted: 29 Jan 2021 07:48 PM PST

    I'm purchasing a home with my brother and we are putting it under an llc. When it comes to get the mortgage, I know the bank will most likely want a personal guarantee. My question is, do we both have to personally guarantee it? My brother wants to purchase another home on his own, so we wanted to know if it was possible for just me to Guarantee it.

    Has anyone done this before?

    Thanks

    submitted by /u/fetacheeseee
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    Can you be a realtor and also train to be an appraiser??

    Posted: 29 Jan 2021 08:30 AM PST

    I've studying for my real estate license and I came across the 'appraisal job' and that got my interest. I learned that it takes several years to get licensed to be an appraiser .... so I'm wondering, has anybody done real estate while studying to be an appraiser? I'm not sure how the training works . Or any other thoughts are welcome!

    submitted by /u/FweeFwee_
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    Which "how much house can I afford" calculators are most accurate/realistic, in your experience?

    Posted: 29 Jan 2021 11:58 AM PST

    First time buyer, credit hovering around 750 +/- 5 points, just got a big raise, have a couple hundred thousand in an investment account (inheritance) to use for a down payment/closing costs/surprise repairs in the first few years. One income (from a very stable job), no kids or plans to have them, but for various reasons we need at least 3 beds/2 baths. I have student loans, am on income-driven repayment, recertifying for PSLF more or less annually. I have 2 credit cards I use for most expenses and pay off in full every month, and no other debt.

    I've looked at Bankrate, SmartAsset, and NerdWallet's "how much house can I afford" calculators, as well as one local credit union's version, using my current monthly income and the number StudentLoans.gov's loan simulator gave me when I used it to calculate how my raise would affect my student loan payment. I'm getting anywhere from $275k-$358k when I put my income & monthly debt into the "how much house can I afford" calculators, a difference that really matters in my area in terms of what neighborhoods we could possibly afford.

    I'm not sure how to determine which estimate is closest to accurate -- I've used the same numbers for
    all of them to the best of my ability. Is it just a matter of seeing what we get preapproved for? Any advice would be much appreciated.

    submitted by /u/spockface
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    Want to buy an abandoned property before it gets foreclosed.

    Posted: 29 Jan 2021 11:57 AM PST

    Hi folks. My godfather moved to a rural area a few years ago and noticed two properties adjoining his that are abandoned. He hasn't seen any trace of activity in them and even some of the area neighbors report having not seen the people in years. I did some investigation and found that one of the properties is a year behind on taxes and the owner's address, which ties back to out of state over 1,000 miles away.

    The goal is to buy these properties as, going back 50 years, it all used to be a larger plot that was divided up.

    From what I am reading we ideally would contact the owner, make an offer, and hope they accept. If not we wait for the property to go up for auction and try to nab it then. Since this is rural I doubt any investors would be worried. The market in the area is kinda flat, undeveloped land is plentiful, there would be significant work to getting the property fixed up,

    Anyone want to poke holes in our plan for add missing context, advice, guidance?

    submitted by /u/eNomineZerum
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