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    Home Unlabelled Everyone is a genius in a bull market (Discussion) Real Estate

    Everyone is a genius in a bull market (Discussion) Real Estate

    January 21, 2022

    Everyone is a genius in a bull market (Discussion) Real Estate

    Everyone is a genius in a bull market (Discussion)

    Posted: 20 Jan 2022 08:56 AM PST

    I think it's important to understand this for the (unfortunately timed) new home buyers right now. Similar to how everyone was picking stocks in the 2020-2021 run up, I find it funny how everyone who has bought literally ANY piece of real estate, in any location, in any circumstance in the last 2-3 years is giving their advice like its universal truth.

    Fact is, you got lucky. Don't get me wrong, certainly the best choice for long term plan is buying real estate no doubt about it, which is why we're all in this sub! However, it's abundantly clear that many have not lived through a down market especially those who have recently bought.

    Be grateful that you have equity at 2-3% mortgage rates and your home values have gone up 10-20% in the last few months in some cases... but understand this is NOT the norm and be more aware of your unique situation.

    submitted by /u/shootermcgavin125
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    Manhattan rents were the highest ever for December

    Posted: 20 Jan 2022 04:06 PM PST

    Manhattan rents were the highest ever for December.

    Manhattan rents hit their highest level ever for a December as the supply of apartments plummeted and landlords started demanding double-digit increases.

    The average apartment rent in Manhattan hit $4,440 in December, while the more widely watched net effective median rent (median rent including all discounts) hit $3,392 — the highest level for December on record. The net effective median rent was up 21% over last year.

    The surge marks a dramatic turnaround from a year ago, when there were more than 25,000 empty apartments for rent in Manhattan and even the most bullish brokers predicted a years-long recovery. Now, rents are often above pre-pandemic levels and renters are facing sticker shock on their rent increases for this year.

    "What started as a trickle earlier last year has become like a geyser of demand," said Janna Raskopf, a leading rental broker in Manhattan with Douglas Elliman. "I've been doing this for 14 years and it's absolutely unprecedented."

    Raskopf and other brokers say demand is being driven largely by college graduates getting new jobs in Manhattan. Many poured back to the city last spring, when Mayor Bill de Blasio announced that the city would reopen July 1. Even though only about a third of office workers are back at their desks in Manhattan, the expectation of a return-to-office continues to bring in waves of people, brokers say.

    New Yorkers who sold their apartments and moved their tax residency to Florida or another low-tax state are also renting to keep a part-time foothold in the city. Raskopf said even the very wealthy are sometimes choosing to rent rather than buy in Manhattan, waiting on the sidelines until they see how the city's economic and cultural future develops post-pandemic.

    All of the demand has created a sudden shortfall of supply. A year ago, the vacancy rate — normally around 2% for Manhattan — was 11%. Inventory had plunged by 81% in December 2021 compared with December 2020, according to the report.

    Now, the vacancy rate is an unusually low 1.7%, with only 4,700 apartments available. Supply is so low that overall leasing activity fell by 40% in December compared with last year, due to a shortage of rental apartments.

    Bidding wars, double-digit rent hikes. Raskopf said she recently listed a two-bedroom for $12,000 a month. She immediately had 26 people tour the apartment and had a bidding war among the renters. She said it will likely rent for 15% above the asking price — like many apartments she's listing lately.

    "Forget about Covid discounts," she said. "People know the listing price is usually just the starting point now, and they will have to bid higher to get it. I would say over half my listings in the fourth quarter went for the ask or higher."

    Existing tenants are also getting big rent hikes. Landlords see that they can increase rents by 20% to 30% or more based on the market — and are eager to make back their lower incomes or losses during the pandemic.

    The biggest rent increases are downtown, with a 28% median rent hike, to $4,100. Rents for smaller studio and one-bedroom apartments surged the fastest, with studio rents up about 21%.

    submitted by /u/Redditbannedme14x
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    Wait for spring to purchase or put an offer in?

    Posted: 21 Jan 2022 04:19 AM PST

    We just got an offer on our house for a reasonable price plus they're giving us an additional 3 months to find a house until we close. I bought it for 90,000 in 2017 and just sold it for 144,000. It's 1300 square feet. We have two kids and need a bigger house. There's a house that just went on the market in the perfect neighborhood with a half acre lot. It's 310,000 but only 1600. The house is nicely updated. It does have a finished basement for toys. Im just struggling to put an offer in or use those 3 months to see if anything else comes on the market. I know interest rates may go up and I know this house won't be on the market long. This is in Wisconsin. Any insight.. thanks!

    submitted by /u/shroomymesha
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    Will refi < 6 mo ago hurt new home loan?

    Posted: 21 Jan 2022 05:56 AM PST

    I refinanced my home in September '21 and have made 4 payments on the new loan. Decided I want to sell my house and buy a new one. I will still have a lot of equity when I sell my old house.

    Will my home refi hurt my chances of getting a new home loan?

    submitted by /u/Born_Ad6441
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    About to close on a house. Seller seems to be a paranoid schizophrenic, anything I should check/watch out for?

    Posted: 20 Jan 2022 09:28 PM PST

    I'm purchasing a property and the seller has probably sent me somewhere around 30 emails. Some are normal, and some are a little unsettling. They talk about portals, or death vibes. A recent one explained that there is a closet lined with aluminum and he attempted to build a faraday cage to get shelter from "mind control RF waves." I'm really freaked out a little bit and my excitement has turned into the heebie jeebies. This isn't my first house but certainly my first situation like this. Anything I should look out for or check for in particular? I know there are cameras everywhere, so I'll be checking for hidden cameras as soon as I move in. Thanks for any advice on this strange situation.

    submitted by /u/shorge
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    Closing day is tomorrow and shit happened

    Posted: 20 Jan 2022 03:25 PM PST

    Been through three bidding wars and finally settled on a house in jersey city. Basically closing is tomorrow and it has been a giant mass and would love to get some expert thoughts on this.

    • the deal is to close WITHOUT the tenants. Basically the price we negotiated with the seller took into account the money they would need to pay for the tenants to get out. The tenants are month to month, and the seller gave notice in the first week of December based on our mortgage commitment from the lender. Today, seller said tenants won't be moving out until END OF FEB. The tenants argued that it should be two full calendar months starting from the first day of the month. So basically any of the days in December we gave them doesn't count. It has to start counting from Jan 1, to March 1. However, the contract clearly says 60 days to vacate. I never heard anyone interpreting it as two full calendar months. Doesn't 60 days literally mean 60 days, from whichever day even if it is in the middle of the month? Additionally, the verbal agreement is that they would pay to get them out in time, but this is sadly not in the contract. I believe everything has a price, so if seller is willing to pay high enough, they could get out tomorrow.

    • another thing the attorney literally just found out today…the title isn't clear. It has some sort of historical issues with the state because there used to be a canal in front of the house. So the seller is trying to negotiate with the title but the issue could take months or more than a year to resolve. Hence they're suggesting to escrow 150k for us to close and deal with this. Our agent said this is their higher estimate for how much it'd take to clear but who knows what would happen in the future.

    • the thing is if we extend, we'd have to lose about 20k in our rate lock and cost. Seller is pissed that she has to pay the escrow money to clear the title, hence is not willing to compensate us at all.

    Not sure if anyone has any experiences with this? It's been super stressful buying a house in jersey city.

    submitted by /u/Ashamed_Marzipan5223
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    Some else is trying to rent out my house that I am selling, legal advice?

    Posted: 20 Jan 2022 08:36 AM PST

    My realtor contacted me the other day and asked if I was trying the rent out the home I just put on the market, obviously I was not. Someone had contacted her after someone on Facebook attempted to rent them the home. They had taken the pictures the realtor posted on zillow/realtor.com and sent them to the people. Then told the people to go by the house and take a look around and they saw the for sale sign out front.

    For giggles I got the persons info and contacted them pretending to need a rent home. So far they have done the exact same thing and are now trying to get me to come sign a lease agreement. Does anyone have any advice as to what I can do legally? I know it's a scam and I'm sure people fall for it. So if I could push the subject and get this guy to follow through with signing an agreement is there any law, specifically in Oklahoma, that he would be breaking? Maybe if I catch him he won't scam so older couple out of money is my thought.

    UPDATE: Talked to the sheriffs office about it. They agree that it's fraud. I'm going to do my best to get him to do some sort of legal document before I drop the surprise on him. I'll try to keep the thread update as best as I can!

    submitted by /u/justin_corn
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    Closing on a house soon but tenant won’t leave

    Posted: 21 Jan 2022 07:26 AM PST

    I'm closing on a house in Toronto in 3 weeks. Our agreement specified that the tenant (turns out is the parent of the selling agent) is to leave by closing date, now they want to extend the date or possibly stay. The selling agent is saying that they "messed up the date for the eviction notice". What are my options? It seems like they are trying to back out of closing.

    submitted by /u/Ineedacwaffee
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    Problem with sale of private property during transaction

    Posted: 21 Jan 2022 07:21 AM PST

    Wondering who is responsible for this screw up... likely me... A month before closing, the seller's agent told my realtor that the seller would sell a trailer sitting on property that I was purchasing. Seller's agent shielded her client's name and we never were able to talk to the seller. So I trusted the trailer would have title. On closing day, the seller's agent delivered a bill of sale but no title. Four months later I am still hounding them to get the trailer title to me. It appears it is moving forward, albeit glacially slow. Is it the seller's agent's responsibility to verify the existence of a title if she is going to broker a deal for such an item, or at least mention it doesn't have one? The trailer was sold as personal property and was not listed in any real estate contract.

    submitted by /u/nw_co
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    Questions about how foreclosure works?

    Posted: 21 Jan 2022 07:10 AM PST

    Just to give some context, I recently purchased a house and one of the houses next door to us is in pre foreclosure. I'll admit it, I'm noisy, and I've been waiting to see what will happen with it because they are our direct neighbor on one side. The people who own the home still live there and I know the home has been in pre foreclosure for a while (over 2 years). They put the house on the market for a month or so several months/ close to a year ago but then unlisted it.

    But all of this had made me curious on what the process of foreclosure looks like. I'm sure it varies but approximately how long does it take to foreclose a house, and once the foreclosure is finalized how long does it take to make the current residents move out?

    Also when someone buys a foreclosed house, can you go see it or is it sight unseen (again I realize this can vary)?

    I don't really know our neighbors and don't wish them ill will, the process has just peaked my interest.

    submitted by /u/picklepearr
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    Please help me talk my friend out of putting an offer on this 720sqft house listed for $135k.

    Posted: 21 Jan 2022 07:05 AM PST

    Overview: -rural/ suburban area in a state with high poverty -720sqft livable space -less than a quarter acre lot -built in 1956 -has not been tested for lead or asbestos -$187 per sqft -sold in September for $50k -estimated selling price on realty sites is $58k at highest -estimated taxable value is a bit over $30k

    It does have new: -roof -siding -covered deck -windows and doors -flooring and trim -some appliances (dishwasher, fridge, microwave) -water heater

    Am I crazy? This doesn't seem anywhere near worth $135,000 regardless of what's been updated. This would be a starter home for him that he will want to sell in the next 5 years to upgrade and start a family, but I don't see him making back even the loan amount reselling this property. He would be upside down on this in a few years if he tries to sell, right?

    submitted by /u/joeharrissnail
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    how does it work to sell my house to buy another?

    Posted: 21 Jan 2022 06:16 AM PST

    Sorry for the crap title. So I need to sell my house so I have equity for a competitive bid for a house. I guess not everyone needs to sell their home first? What happens if I don't find a house soon enough before they need to move in?

    submitted by /u/candyapplesugar
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    Can I get a loan for a house with bad credit?

    Posted: 21 Jan 2022 12:02 AM PST

    I've spoke with one person that said I needed to raise my credit score to be able to qualify for a house loan, but I've heard from a lot of people saying that they've got a house with poor credit. My credit score is currently 580. Is there anyway I can get a loan haveing this bad of a credit score?

    submitted by /u/joshmiller890
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    Which issues should I ask the seller to fix or pay for?

    Posted: 21 Jan 2022 05:33 AM PST

    https://imgur.com/a/74bBJl6

    https://imgur.com/V3gsiCp

    https://imgur.com/78G9WaI

    ​

    The home is 1050 square feet, one floor with an attic and half-finished basement and a one-car garage. 90 years old.

    The furnace short cycling at least seems like a problem. Which of the other issues should really be handled by the seller?

    submitted by /u/KirisuMongolianSpot
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    Should all tenants on the lease get renters insurance or just one?

    Posted: 21 Jan 2022 01:23 AM PST

    Tactical advice for winning the bid...

    Posted: 21 Jan 2022 12:05 AM PST

    We want a house that is outside the region my realtor is willing to travel. Here's my plan, can you suggest other ideas and can I incentivize the seller's agent? - offer at or very near asking price with an escalation clause to my comfort limit - so stupid but "as-is" purchase with no inspections - pay the full 2% transfer tax instead of splitting - The kicker... call the seller's agent and tell him to show me the house or call his BFF up to show and write an offer up. Figure out a better than average fee for the agent.

    How can I make this last idea work? What are my options?

    submitted by /u/RBbugBITme
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    Found a home! A new build. I'm excited.

    Posted: 20 Jan 2022 07:09 AM PST

    I currently rent at $2K/mo, which is a waste. I started to get serious about buying a home mid-year last year.

    However, I had quit my job a short time prior to my search to work on my business full-time. Despite doing high revenue for my business the prior year, it had only been a few months since my business was my only means of major income (even though the business was 4 years old at the time with steady income). Apparently mortgage officers don't like this. Moreover, I started to have a lot of trepidation, as every property in which I was interested immediately would get snatched up well over asking price. I didn't want to compete in that environment, setting myself up for a lot of wasted time and disappointment. So I decided to put off the home search.

    Then a job opportunity came. I wasn't looking, but I apparently I had left my LinkedIn profile up. I almost refused it, but the deal was too sweet: A100% work-from-home role, and an ample salary that would help me qualify for as much house as I wanted. The timing was nice, as my business was navigating some tricky things, and this would take some pressure off.

    So I picked back up with my realtor and we started looking again. Somehow a new build had gotten to the mix. I hadn't even considered a new build, but after seeing one, new builds became a very enticing option.

    Then I found a new build where the previous buyer had fallen through. It was pr-dry wall but still far enough along that I wouldn't have to wait that long to move. The price was higher than what it would have been if we weren't in this housing market, but it was still OK for me. I jumped on it.

    My dog is going to have his yard. My business is going to have more space. And I love the house and the area. I'm in my 40s and I've been renting my whole life; this is my first home purchase.

    submitted by /u/Shopify_God
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    You don't have to spend as much as you're preapproved for

    Posted: 19 Jan 2022 07:50 PM PST

    I have seen multiple threads this week saying "I got pre-approved for $X loan and it sounds way too high."

    Then it is! Pick a monthly payment that makes sense to you and your budget. If you and I make the same amount and have the same debt, we'll both arrive at a different preferred payment.

    Do your budget BEFORE applying for a mortgage and then tell your loan officer to provide a quote for a home price that comes out to that payment.

    It is YOUR job to ensure you get a home that fits your budge. Not your realtor, not your lender, not your mom. YOU.

    You are spending hundreds of thousands of dollars to buy a home. Please do some budgeting before jumping in.

    submitted by /u/deffmonk
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    Advise from those who’ve owned a house(s) for 10+ years

    Posted: 20 Jan 2022 10:03 PM PST

    Given the current (inflated) market, macro-economics, and soon to be interest rate hikes, or whatever it may be - what are your thoughts on a first time home buyer purchasing a home in the next 3 months or less? The good, the bad, and the ugly. Let's hear it.

    For reference: Washington State, VA loan or conventional, great credit score, <10% DTI (if any of this matters for context)

    submitted by /u/Thorshammer253
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    First time buyer - RDU NC - New home?

    Posted: 20 Jan 2022 06:00 PM PST

    Feeling a bit (a lot) lost in this current market. I've been in the RDU area for a year and have watched the market jump while my salary has stayed the same!

    Important bits: 2 adults and 1 baby in our current home, my income is the sole income for now. Net monthly is around $5900 before considering OT or bonuses. Only expenses left other than $1500 rent is around $1100/mo which covers car, insurance(s), student loans.

    We want new construction, 3 bed/2 bath with either 4th BR or study/loft for my office (WFH when not on the road), 2 car garage (vehicle and my work equipment), 1800-2200 sq ft for the home, and enough of a yard for some guests, grilling, baby play time.

    Back in late 2019/early 2020 saying to keep that under $320k seemed to be almost too easy… now I feel like keeping it under $400k is a battle. Location isn't TOO important as long as I can get to RDU airport without much drama, and half-decent schools for when our little one gets to kindergarten.

    With my current rent at $1500 we are making due easily, but just trying to limit at $400k which keeps me under $2000/mo feels painful.

    I'd love any insight into the area and current market as our lease is up 5/31 and something tells me rent is going up one way or another.

    [Edit]: forgot to mention I am a disabled vet and trying to take advantage of my VA loan so other than origination fees and inspections trying to 0% down for the home. I know this is a stretch - but with a baby that needs surgeries I have to focus on keeping debt down as well.

    submitted by /u/NavyBOFH
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    "Inherited" a commercial 3 story building in Milwaukee with two seemingly unusable floors. I have no experience-- help me make the best of it?

    Posted: 20 Jan 2022 01:07 PM PST

    The building:

    • A three story commercial building
    • Milwaukee, WI
    • Historical zone (google "Neighborhood Conservation Overlay Zone (NC) milwaukee")
    • Reasonably healthy retail tenant on the first floor, 3 years left on their contract. They aren't triple net.
    • Current cap rate is ~4%

    The problem:

    • Top two floors are vacant, unfinished.
    • Basement is also unfinished.
    • Elevator installation would be prohibitively expensive, so making either floor ADA compliant isn't in the cards. I've been told this makes them un-rentable.
    • I've been listing for sale it w/ broker, but I've been told it hasn't been able to "sell for what it's worth" over the last 2.5 years. I've told him I'm willing to take some loss to have my hands clean of it, but he seems to think it'd take an unacceptable loss to sell it right now.

    Questions:

    • Is it reasonable for a building like this to not be able to sell for this long? Should I get a different broker?
    • Are there any uses for which I could rent the top 2 floors that would not require an ADA compliant elevator? I feel like having tenants could help it sell.
    • Anything I should read to get myself up to speed and feel more in control here? I feel like I'm flying completely blind from lack of knowledge.

    SS of how I got here:

    • Uncle passed away when I was a teen, he didn't have any kids, left me a little less than a million.
    • My relative was the executor, used all of the money to purchase this building in an area he was involved in developing (seemed like a reasonable idea in the time)
    • I've worked as an engineer for my adult life and basically ignored this holding since by the terms of the will it's been owned by a trust I haven't had control over until now. It's my only asset besides my savings from working, but I've never accessed it.
    • Now I'm all grown up and trying to start a couple socially impactful, non-lucrative endeavors. I have full control over the trust within the year. Really just looking for a graceful exit from this investment so I can diversify and invest a small amount of it in personal projects.
    submitted by /u/crunchothrowingaway
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    First time buyer. Seemingly perfect house with tenants

    Posted: 20 Jan 2022 11:44 PM PST

    I tried to sum it up fairly easy with the title. My wife and I found a great home with a huge piece of land in a city we really like (greater LA area.) the seller is willing to sell it to us at asking, there's no other bidders since the house is technically not back on the market yet. BUT there's tenants. They're supposed to be moving out well before escrow closes. Is there anything we should keep in mind? We are fully on board since everything else checks out other than having tenants. How big of a problem is that really?

    submitted by /u/dv190
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    Under contract on a new construction - but major inspection issues

    Posted: 20 Jan 2022 01:52 PM PST

    FTHB here - Been looking for 2 months, and finally under contract on a new construction home ready for move in the next 30days & locked in rate.

    I ordered an inspection *after* signing (contract had no option period), and it showed MAJOR issues. Water backing up, Water dripped from the living room ceiling when the upstairs drain lines where on and no longer flowing, leaving a huge puddle on the living room floor + Some roof issue + many other smaller issues.

    They say they will fix all these in 2weeks - but not sure I trust this. I will have to get another inspection done after.

    What are my options when I've already put down 5k in earnest money, & there was no clause in the contract to get this money back even if builder issue?

    ---

    Purchase price is within a comfortable budget. I have to move by March, but don't *have* to purchase now, I can continue to rent elsewhere for a few months while still looking.

    So anyway to back out and still get earnest money back?

    submitted by /u/thinkingoutloudest
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    What’s most important when buying a home: Down payment. Credit score. Rental history. Longevity of job?

    Posted: 20 Jan 2022 09:12 PM PST

    Bought a single family starter home now feeling some regret and unsure of next steps

    Posted: 20 Jan 2022 09:06 PM PST

    Background: My partner and I (25) rented an expensive "one bed" studio apartment in Boston for over 5 years in a very ideal location (college, jobs, grocery store, entertainment all could be reached within a 6 minute walk). Right before the pandemic we got a dog and then when Covid hit the apartment got way to small for the three of us plus working from home was going on.

    I got desperate and made the decision to purchase a home in the suburbs in Jan of last year to get out of that studio, get more space and have a yard for the dog. The home I bought is very much a starter home (one level ranch with 2 bedrooms and approx 1,000SF)

    It's about a 25 minute drive into Boston without traffic and with traffic during rush hour commuting it's about 1 hour each way. My partner and I are both business majors and will probably always work in the city as that's where the highest paying jobs are for our industries. Other than traffic, the house is on a main road so cars are very loud, it's extremely dark and quiet in terms of people and liveliness of the city, the town is quite sad there's no great restaurants and no shops or entertainment really (usually have to drive basically to the city for that). I just feel it's pointless to be living in this home if I am driving into Boston 3x a week plus most weekends for entertainment and restaurants.

    I paid a premium price on the home ($415k) due to the market however according to comps, selling right now I could sell for approximately 8-18% more than what I bought it for in Jan 2021.

    My issue is, I would want to go back to the city. I cannot afford a single family in the city and therefore would probably buy an apartment in a 2 or 3 multi family home at approximately 1,000 SF (which in the areas I am looking range from $450-$700k at the moment). The concern I have is the potential of regretting moving from a single family home to an apartment in a multi family. I don't want to go through with selling and rebuying if I am going to regret that as well.

    Any insight or suggestions from someone who has seen this or dealt with this before would be much appreciated.

    submitted by /u/Joe_arra
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