This housing market is insane and unsustainable, and people should stop trying to reason their way into thinking this is the new normal Real Estate |
- This housing market is insane and unsustainable, and people should stop trying to reason their way into thinking this is the new normal
- Buyer here, I'm f... I'm out.
- I will live in my apartment holding onto my $50K cash until this crazy market calms down.
- 2 kitchens in a single family residence
- Experience Buying 40 Acre Plot In WI In This Market...
- I closed on my house!
- Frustrated buyer here, looking for advice/support
- Isn't it inevitable that housing prices will get exponentially more insane?
- Looking to purchase a new home. What are the current rates and best lenders out there?
- Thoughts on the Chicago market
- If I signed a purchase contract to sell a property to someone two years ago that expires in a few weeks and the purchase price is 40% below current fair market value, can I walk away before expiration and find another buyer willing to pay fair market value?
- Double HOA fees
- Anyone noticing the condo market picking up again in the HCOL places like California
- Offer Accepted on 3rd attempt
- How much over asking is too much? I need a mental check that I'm not going crazy here.
- Meaning of the phrase "J&J bath"
- Home builder trying to cancel purchase agreement.
- Seller want to stay 60 days in home for free after close of escrow :(
- MLS photo removal
- Just how bad is the residential real estate market for middle class buyers now? (US)
- Is it a bad idea to buy a highly unique house?
- Anyone going through refinancing right now? Looking to see what the interest rate you are locked at
- Long term rate lock on new construction, good idea?
- House prices in my town are absolutely bonkers
- Central Air
| Posted: 08 Mar 2021 12:09 PM PST I am NOT a housing expert, nor am I even in the real estate industry. But I have lived through a lot and am observing things that are eerily familiar. Heres my observation: The fervor, panic and desperation I am seeing from buyers at the moment reminds me so much of how it felt in 2007, the run up to the big housing crash. I often see people on this sub bring up the insanity of this current 2021 market and how it feels like a bubble. But most of the time those sentiments are explained away by someone who says "this is completely different from 2008, it's hard to get approved for a loan now" - which is true. Or by saying "it's simple supply and demand right now" - which, yes, is not wrong. I also remember in 2006 and 2007 reading a lot of articles with the headline saying "Are We In a Housing Bubble?" Which would then list out all the reasons why we weren't, and we should all carry on. Spoiler alert: we were. It was just very hard to see. So hard in fact, that they even made a movie about the handful of people who were able to see it coming. But 99% of us couldn't see it until it was too late. That said, I don't understand how some people can be so steadfast in their belief that prices are only going to rise and 2021 buyers need to jump in as quickly as possible. Does it not occur to these people that there could be some economic force playing out right now that most of us are unaware of, that is going to be the harbinger of a big crash? Sure, demand is up and supply is down. Sure, loans are harder to get and not as many people will default. But what about the factors that aren't in plain sight? I'm not smart enough to conjecture what those factors could even possibly be. But I've lived through enough to know what a bubble feels like. And it feels like this. This is not normal. I'm sure some real estate agents and experts on this sub will disagree with me, and you all probably know much more than I do about this subject matter, so maybe you are right. But if there's anything I have learned about human nature: we only see the things we want to see. [link] [comments]  |
| Posted: 08 Mar 2021 05:13 PM PST I don't know where things are headed, but I know I was shopping a neighborhood where a 1500 square foot ranch has gone up about 100k from a year ago. Another was just posted today at this inflated price, and after seeing that I'm done. I'm out. I don't know what's going on in this market, but prices are up roughly 17% where I'm looking in a single year, and I simply refuse to pay. I'll stay where I am. I remember 2008, and I'm not setting myself up for that reaming. I make the money necessary, I could budget it, but I won't. Moreover, I know where I am on the income distribution relative to other folks, and quite frankly I don't understand where all the buyers are coming from that are willing and able to pay the kind of prices we've been seeing. So that's it, I'm out. One buyer completely fatigued and over this market. [link] [comments]  |
| I will live in my apartment holding onto my $50K cash until this crazy market calms down. Posted: 08 Mar 2021 11:12 AM PST No, I will not be in a bidding war. No, I will not pay over asking price. No, I will not pay more than the home is worth. I don't care if I rent until I am old and gray. This market SUCKS for average people. Edit: They need a rant flair for how bad this market is on normal people lol [link] [comments]  |
| 2 kitchens in a single family residence Posted: 09 Mar 2021 03:46 AM PST The house I am selling has two kitchens. One on the main floor and one on the upstairs. They have the permits to built the second kitchen but it doesn't have have certificate of occupancy for a two family residence. Since it doesn't have a certificate of occupancy for a two family residence they are not allowed to have two kitchens. We have to pretend it is just a wet bar and remove the stove and refrigerator. Would it be worth it do get the permit for it to become an accessory dwelling unit so that we can count the second kitchen? The second kitchen adds 10k dollars in value and I feel like telling my seller to remove the stove and refrigerator they will want to know why, and I haven't been able to find any CFR regulation saying that a second kitchen in a single family house is unacceptable. I'm just doing what appraisers say to do but what is their proof? [link] [comments]  |
| Experience Buying 40 Acre Plot In WI In This Market... Posted: 08 Mar 2021 07:04 AM PST Just wanted to share my experience buying a 40 acre plot in rural Wisconsin. Land is Crazy: First of all, land is such a different beast. You may lose out on a piece of land and it never becomes available again in your life time and it can't be replicated like a house. The people who buy land are the people who don't want to ever sell land. This is the main reason for why subdivision plots are just getting smaller and smaller with time. It is also so hard to tell your realtor what you want because there are so many oddities you run into. (It could be a swamp, it could be a thicket, it could be a barren mono-crop wasteland in the middle of 400 acres of farm land) Hell, we were shown land that was down range of a literal gun range or land that was in the middle of a town (no wildlife). Market: But this market is insane, the 40 acres of woods, wetlands, and huge rock bluffs were posted on zillow and within 24hrs we were doing a showing. We walked the property and there were other people walking the property at the same time as us... Typically land takes a long time to sell, months to years. This land was in our price range, $120k, so we offered $125k the next day. By Monday they accepted and we closed on it shortly after it appraised out. Everything is a fucking HOA Nowadays: My god, we want to build a respectable, 200sqft off grid cabin in the forest and the process already seems like we entered into an HOA. The regulations... require 700sqft minimum, an outhouse, 75ft away from any property line. Keep in mind most of the areas in this town when we drive past it have properties with 50 odd shacks, sheds, concrete piles, and dilapidated structures built. We also go past junk yards which the town says they outlaw as well. If you are saying well we should have done the research beforehand, you really dont get to choose where you buy land at all because it is only what becomes available (we have been looking for a few years) plus so often we had properties pop up, you start to do the research which takes hours per parcel and then it gets sold by the time you figure it all out. Building Permit: Now I don't know if we try and just tell them we are building a glorified shed with a wood stove in it or if we try to go the honest route of labeling it a dwelling (they consider it a dwelling even if you only sleep there one night a year). Hopefully they really dont actually care about what we build and they just want to know what we are building and for them to receive every dollar from us which is fine long as we can build what we want but it is just insane how every county seems to allow dogshit but their regulations are written like the tightest HOA ever. Anyone else have experience or recommendations on off grid cabins and tight HOA like regulations? [link] [comments]  |
| Posted: 08 Mar 2021 12:34 PM PST I just closed on a 2 bedroom, 1 bath in the Seattle-Tacoma metro (actually, less than 3 miles from downtown Tacoma). I work in education and bought my house on a single income, so there were compromises that I made:
What I didn't compromise on:
Overall, I got really, really lucky. I hit a sweet spot of a house that was structurally good enough that it wasn't a fixer, but also aesthetically old enough that it wasn't getting as much attention as other houses. There were also two other houses on the market the same week as my house that has been flipped and were all nice and shiny and new-looking, so I think they got most of the attention. There were two other offers on my house that were close to mine, with mine beating the closest one by just $1500. I got my house in a great neighborhood for less than $350k. I was nearly at the max of what I qualified for when my offer of $35k over asking was accepted and only looking at the lower cost end of house in the Tacoma area. The market has continued to increase enough that I would probably have to look outside of the city limits if I was still looking today. TL;DR: Common person got really fucking lucky. [link] [comments]  |
| Frustrated buyer here, looking for advice/support Posted: 08 Mar 2021 07:31 PM PST I've not been looking terribly long but I'm frustrated and ready to throw the towel in. We were approved for a mortgage and have been looking for a home under our approved amount. Nevertheless we still can't find a home in our budget. It's so frustrating to work 40+ hours and feel like it's not good enough. [link] [comments]  |
| Isn't it inevitable that housing prices will get exponentially more insane? Posted: 08 Mar 2021 02:03 PM PST Every day I'm seeing posts hit my feed from this sub talking about how ridiculous this market is, how it's unsustainable, how it's a bubble, etc. And every time I see these posts I'm a little bit in disbelief. It seems like...simple math? Land is a scarce (limited) resource. For that reason it's always going to trend up in value. Inflation sits around 2-3% annually. Housing increases at a higher rate, sometimes much higher. And higher than average increases in salary. So by that logic alone, isn't real estate always going to get more ridiculous? What am I missing here? [link] [comments]  |
| Looking to purchase a new home. What are the current rates and best lenders out there? Posted: 09 Mar 2021 01:21 AM PST Hello! I am looking to purchase my second home which will become my primary residence as I will rent my current to my family members in Las Vegas, nv. I have 20% ready for down payment on a 30 year conventional. Looking for tips and suggestions for this next big commitment. Rates and lenders :) [link] [comments]  |
| Thoughts on the Chicago market Posted: 09 Mar 2021 04:48 AM PST We own a condo in Chicago and have been planning to upgrade to a house for years - our family has completely outgrown this place. We were finally in a good place to sell last year and put it on the market 5 days before lockdown. Between then and now has been a nightmare of contracts that fell through and the loss of a house I thought would be out forever home. All while dealing with the hardships that the pandemic has brought for young families. We took a break over the winter and I've been making little improvements to our place before putting it back on the market. But now that it is time I'm feeling full of anxiety and I'm not sure if trying to buy a house is the right thing. We can't stay here. And I have zero interest in renting this place just to have to rent ourselves (we need the sale to have the money for a house). Plus I'm not interested in dealing with other people's relationship and plumbing issues. I joined this sub to get some insight but it seems to be all doom and gloom. Is that the case for Chicago? Should we sell and go back to renting for awhile? I'm hoping someone has some insight on the Chicago market. [link] [comments]  |
| Posted: 09 Mar 2021 04:46 AM PST |
| Posted: 08 Mar 2021 10:47 PM PST We live in a condo building with 14 units. My wife and I have a two floor duplex, the only one in the building with the two floors. We pay DOUBLE HOA fees, which have been raised twice in a year and is starting to feel a little out of control. On top of that they are responsible for common areas, and I asked who would be taking care of our snow removal for our back shared entrance (which we have to use for our dog) and was told that one of us had to do it... was a heavy snow kind of winter and with every scoop of the shovel and handful on salt I have built resentment. Don't know what power I have but want to put it to a vote to lower our specific HOAs but would have to convince the board to vote in our favor which sounds like it would be really tough? Not sure if I have any options would appreciate any advice or opinions... [link] [comments]  |
| Anyone noticing the condo market picking up again in the HCOL places like California Posted: 08 Mar 2021 09:09 PM PST It was slow mid to late last year sitting on market for months and going below asking price even if it was well marketed, but condos in recent weeks have been selling at fast/normal pace again. Anyone seeing this change? [link] [comments]  |
| Posted: 08 Mar 2021 09:00 PM PST Got the call tonight that our offer on our new house was accepted. Ended up going 40k over asking. We got very lucky as this is only the 3rd offer we have put in so I feel we were able to get out of the game pretty quickly. We made sure to visit the open house twice last weekend and talk the agent up. We also brought our agent with us who spent the entire open house "selling us" to the sellers agent. Waived inspection contingency. House is pretty new (10 years). During the second open house visit, I did some some poking around at it for all the common things that could be wrong with it. Mostly using knowledge from all the work we did on the home we just sold. Everything looks in solid shape so we felt that waiving it to make our offer stronger was beneficial. We also offered the buyer 60 days of rent back if they want it. Other info, 20% down, $40k EMD. flexible close. Only contingencies included were mortgage and sale of our current home. Our current house is set to close at the start of April. Our agent did a lot of work convincing the sellers agent that our sale was rock solid so the contingency wasn't a big deal. It worked. Sharing so people can see what it took to get an offer accepted fairly quick. Boston suburb area. [link] [comments]  |
| How much over asking is too much? I need a mental check that I'm not going crazy here. Posted: 08 Mar 2021 11:26 PM PST So blah blah market is insane you all know the situation. I am looking to buy in California near Sacramento and home asking prices vs actual sale prices are both growing. I'm worried of normalizing this and want some help rationalizing it. Here are some numbers for properties.
All of these properties have both seen a massive jump in asking price (upward of 12% in the last year) and are seeing a crazy increase in offer prices. None of these properties are expected to assess anywhere close to the offer prices people are buying them at. I've been looking at homes sold from 4 to 8 months ago (June to November) and it appears many sold for around asking. Without attempting to predict the future, are these massive margins and increases even capable of making up in a 5 to 10 year span assuming average trends? If we spend 580 on a small home that will assess at 550 or possibly even less, using averages (and not expecting the continued insanity of growth now) how long would it normally take till the home actually appreciated to match the value we paid for it? Is historic growth of 3% in a relatively recession proof market an accurate figure to go by? [link] [comments]  |
| Meaning of the phrase "J&J bath" Posted: 09 Mar 2021 02:49 AM PST Hi guys, I am a contentwriter and I am moving into the real estate niche. I've come across a phrase " There are 3 large bedrooms (two sharing a J&J bath), a cozy family and games room, wet bar, and a fourth room that is currently being used as a bedroom, but is equally spacious enough to be a home gym or second office/homework room.". Can you please help me figure out what "J&J bath" is - it's bolded out in the example above. Thanks a lot from a rising copy! [link] [comments]  |
| Home builder trying to cancel purchase agreement. Posted: 08 Mar 2021 07:10 PM PST *Update*: seller is now not willing to honor the purchase agreement. I am trying to use my credit union to finance the building of my new home. I was waiting on my preapproval letter ( I new it would be no issue to get approved) and told the builder that. They had one house left in the area that I could live in (real-estate has been crazy in my area) that was the model I liked so I signed a buyers contract and gave my deposit. The sales manager tried pushing hard for me to use their lender but he admitted the interest rate I would get through my credit union would be much better. A couple days later I supplied them with my pre-approval letter and a week after that I got a phone call from the sales manger wanting to know all the contact info for the credit union even though it's a well known credit union and the info was on the pre-approval letter. At this time he also again tried to push their lending company and tried some scare tactics etc but after I wouldn't fall for it he assured me he would contact the lender and all would be fine. Late last week I get a phone call in the middle of the work day from the sales manager that I had 14 days to supply them with some sort of documents that were needed from my bank and I have not done that and I will be in breachof the contract and the contract will be canceled. He wouldn't tell me what documents would be needed but that the fastest way to insure I don't loose the house is to go through his lender. My contract reads: "Loan application/Credit reports: If a buyer obtaining financing, Buyer aggress to make its loan application within four (4) days of the Effective Date of this Agreement and fully cooperate with Buyer's lender to obtain approval for a loan sufficient to finance the purchase of the Property ("Financing Approval") . Notwithstanding anything to the contrary contained herein , if the Buyer fails to make appropriate application or fails to fully cooperate with lender in all respects, then Seller may, in its sole and exclusive discretion, terminate this Agreement and retain the Deposit as liquidated damages which is a reasonable estimate of Seller's damages, not a penalty. If buyer is unable to obtain Financing approval, Buyer may give written notice ("Buyers Termination Notice") to Seller within fourteen (14) days after the Effective Date of this Agreement that Buyer wishes to terminate the Agreement due to Buyer's inability to obtain Financing Approval. In such event, Seller will refund the the Deposit. If Buyer does not give the Buyer's Termination Notice within the time required, this Agreement will no longer be contingent upon Financing Approval and will be fully binding on Buyer. Time is of the essence for this paragraph and strict compliance with the time for performance is required. Buyer herby authorizes its lender to disclose to Seller any and all credit, employment, income and other financial information concerning Buyer, such disclosure being a waiver of any claim or cause of action of or concerning privacy rights, confidential information or otherwise." This is my first time building house so I am fully aware that it's very possible there is something along the way in this journey or building a new home that I am missing. Also if it matters this is not a custom home that I am building. The home is one that the builder owns the lot and was already in permitting to be built. Any suggestions of how to handle this situation would be very helpful. [link] [comments]  |
| Seller want to stay 60 days in home for free after close of escrow :( Posted: 08 Mar 2021 10:14 PM PST |
| Posted: 08 Mar 2021 07:45 PM PST We bought our home 3 months ago and have since claimed it on Zillow in an attempt to take down photos and the video tour. Even though we claimed the house we cannot take the photos or tour down. The Realtor (sellers agent) said she would not pay to take them down. How do we remove them? [link] [comments]  |
| Just how bad is the residential real estate market for middle class buyers now? (US) Posted: 08 Mar 2021 11:32 AM PST In my experience (South Florida market), it's really bad. The $350k-750k price range is a disaster. But, this subreddit doesn't need yet another post saying the same stuff over and over again. It's a perfect storm, we all get it. Pandemic, stimulus, inflation, interest rates, we've all heard it before. We all have the data and statistics in front of us. However, my question is... once we reach herd immunity through vaccinations (which is supposed to be sooner than later; I'm hearing anybody who wants a vaccine can get one potentially by May 2021) and businesses can reopen, will supply really correct everything that is wrong with the market? I keep a really close eye on the market because I've actively been trying to buy for over 12 months now. I haven't been able to make one offer. I can do the math myself and understand how a $450k house goes to $500k when interest rates go from 3.25% to 2.75%. I understand how that basic math works. The PITI payment stays essentially the same. The problem I see is, rates have since rebounded from 2.65% back to the 3.1% range and prices have not budged to adapt whatsoever, and they don't need to. I don't even bother going to open houses anymore. It's the same thing over and over. Easily 10-20 couples all putting in offers day 1 on houses that are far from perfect. I'm not convinced more supply of houses will fix the valuations. I think it'll just be more people getting in on the "I want to cash out on my $200k-$300k equity gains in 5 years for letting my house do nothing but depreciate" party. I'd love to hear if anybody else thinks that I'm wrong. I don't see a light at the end of this tunnel and I think it only stands to get worse. With less free land every year, houses are supposed to "appreciate". That's going to keep happening right along side sellers and their agents charging whatever they want because they can. $30k over inflated list price, multiple offers is the new norm and I think it's here to stay. If you want to sit on the sidelines like a contrarian and say "I'll play ball when things settle down", I think you're in line with people who think they can time the stock market. Spoiler alert: they can't. [link] [comments]  |
| Is it a bad idea to buy a highly unique house? Posted: 08 Mar 2021 05:39 PM PST My wife and I are thinking of buying an architecturally unique home. Think Frank Lloyd Wright, although not nearly that famous. This is not the actual house, but it gives you an idea of the kind of place I'm talking about. What are the pros and cons of such a purchase? I know it will probably be very hard to sell when we eventually move as it is certainly not to everyone's taste. (It has already been sitting on the market a few months during a very hot seller's market.) [link] [comments]  |
| Anyone going through refinancing right now? Looking to see what the interest rate you are locked at Posted: 09 Mar 2021 01:06 AM PST 15 20 or 30, looking to see which one and at what rate, we're points involved. Thanks [link] [comments]  |
| Long term rate lock on new construction, good idea? Posted: 08 Mar 2021 09:20 PM PST My husband and I are purchasing a new construction which won't be complete until November (October if no delays). Less than a month ago we were quoted with a 2.6% and today it's 3.1%. Given the fact that rates are going up, is it worth it for us to do a long term rate lock now? My husband spoke to our LO today, and he said it will most likely be a fee of 1% of the loan ($510k purchase price) for us to lock it until the end of the year. The LO wasn't very clear about it and said he needed to get back to us tomorrow. He also said we will be able get some credit to use towards closing (again it was very vague). Just looking for some guidance on whether it's a good idea to go ahead and pay the 1% for the rate lock with a one time float down. Thanks! [link] [comments]  |
| House prices in my town are absolutely bonkers Posted: 08 Mar 2021 11:58 PM PST So I wanted to post a screenshot of a house history from zillow but this sub wont allow it. The picture goes something like this: ~House sold in 2018 for 220k ~House sold again in 2019 for 287k ~House for sale today for 389k Wtf? It was not auction or a bank owned house. If it was "updated" by a flipper it was only cheap cosmetic stuff. How is this justified? The value of this house IS and SHOULD be something like 250k-275k (even in this market). You will probably say something like "its worth whatever people will pay for it". This sounds like something a scalper would say. A PlayStation 5 is NOT worth $1500 and a Brittney Spears concert ticket is NOT worth $5000, unless she gives you a private lap dance or something. Why are scalpers illegal but house flippers are not? [link] [comments]  |
| Posted: 08 Mar 2021 05:47 PM PST I have never had central air..I have been seeing a lot of houses with no central air but my fiance wants a house with central air. Lets say, We buy a house with no central air. Does it cost a lot to install? [link] [comments]  |
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