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Home Buying Help Thread


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3 hours ago, AkronsWitness said:

Problem with this market is that people are paying 20-100k over asking price w/o the inspection.

My neighbors house, this couple bought in early 2020 and moved in. Naturally I looked at the selling price online and they bought the house for 270k. They just listed their house for sale because they had to relocate for a job after only living in it from Jan 2020 -July 2022.

It just sold yesterday for 392k! These people lived in their house for 2 years and sold it for 120k+ more than what they paid for it....

I want to sell my house so bad just to cash in on this before the bubble pops and Im going to be sooooo pissed when we go to sell in 2023/2024 and our house is worth only 20k more than what we paid for it in 2019 b/c we are in a recession. 

Do you want to sell only for the equity or do you want something else or need to relocate? I think sometimes people let the market affect them more than they should cause bottom line is it's only worth what you sell it for when you sell it for the right reasons. If your young you can ride out any economic downturn especially if you like the place.

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10 minutes ago, billking said:

Do you want to sell only for the equity or do you want something else or need to relocate? I think sometimes people let the market affect them more than they should cause bottom line is it's only worth what you sell it for when you sell it for the right reasons. If your young you can ride out any economic downturn especially if you like the place.

Well, we have decided to wait until spring 2024 to sell because of children/age and thats when we will officially 'outgrow' this house. It just sucks to sit by and watch people around me make astronomical amounts of money from selling their homes knowing that in 2024 when I go to sell, this will likely not be same market.

We refinanced in 2021 when interest rates were like, 2.4%. During that process we had to get our house appraised again--it is now worth 335k according to the bank. We bought it in 2019 for 252k. 

Its just hard to know that in another 1.5 years that 335k is probably going to come down to about 275k once the recession hits and interest rates go back up to 4.5%. We have to ride it out I would just love to sell and make 100k profit off the sale, live in our parents basement until the market collapses, then go take that 100k profit and put it down on a 450-550k house. 

The money you would make off a current sale would be a helluva down payment on your next house if you can somehow find a way to wait it out until the market collapses by living in a apartment or family members house temporarily. 

Edited by AkronsWitness
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On 7/5/2022 at 1:39 PM, AkronsWitness said:

Its just hard to know that in another 1.5 years that 335k is probably going to come down to about 275k once the recession hits and interest rates go back up to 4.5%. We have to ride it out I would just love to sell and make 100k profit off the sale, live in our parents basement until the market collapses, then go take that 100k profit and put it down on a 450-550k house. 

The thing you aren't taking into consideration is inflation. The big difference between this recession from the 2007-2008 recession is that costs are going up like crazy. What that does is put a lot of upward pressure on new housing being built, and in turn existing housing goes up along with that. In my opinion when this market cools I think we will see a lot of plateauing of values and not outright decreasing of values. 

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1 minute ago, MKnight82 said:

The thing you aren't taking into consideration is inflation. The big difference between this recession from the 2007-2008 recession is that costs are going up like crazy. What that does is put a lot of upward pressure on new housing being built, and in turn existing housing goes up along with that. In my opinion when this market cools I think we will see a lot of plateauing of values and not outright decreasing of values. 

So your thinking this market is going to continue to be this market just without people paying 50k+ over asking?

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1 hour ago, AkronsWitness said:

So your thinking this market is going to continue to be this market just without people paying 50k+ over asking?

Value is different than asking prices. I think the market will slow and houses will sit for longer which will cause less competitive bidding.  So no, people will stop paying over asking prices.  But sellers are strategically listing to set up bidding wars and they will adjust too to find somewhere in the middle.

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On 6/28/2022 at 11:47 AM, RavensTillIDie said:

Just wanted to vent.

After close to a year of looking for a new house in the midst of the pandemic, we had finally found a house we love. Great location with a ton of renovations. Originally was overpriced and received no offers, then a week later they reduced the price by $75K. We schedule a tour and out of nowhere, the listing agent reaches out to our agent and starts to talk up the place, openly admits they have no offers, acknowledges the roof needs to be replaced and THEY offer us a $20K closing credit.

We do the walkthrough of the house, absolutely love it in person. Again, in continuous communication with the listing agent. We openly tell them we'll give you the asking price, which is not currently the norm given the price reduction and rising interest rates, but we want an additional $10K on top of the $20K in closing credits to help replace both the roof and a very dated HVAC system. They say that's fine, without any hesitation. We submit our offer Sunday night. Their listing agent reaches out to our loan officer Monday to confirm financing details, keeps telling our agent "we'll be in touch asap" and that there's no other offers at the moment. So, from Saturday up until Monday at 9 PM me, my wife and our buyer's agent all think we put forth a very competitive offer and are feeling very confident about getting our offer accepted. We randomly look at Zillow at 9 PM on Monday and see the house is now listed as pending and our agent receives an email a few minutes later from the listing agent simply stating "Apologies, my client has chosen to go with another offer that better suits their needs." No chance at a counter offer, no further explanation, nothing.

Feels like we were lead on the whole time and if we even had the slightest hint we had actual competition/another offer, we would of significantly upped our offer. The part that blows my mind is our offer was entirely predicated on information THEIR listing agent gave us, we never asked for the closing credits, they offered it out of the blue. Just makes zero sense.

A lot of times there are things you simply don't know behind scenes.  Sellers are often stressed as well and often just want whole thing done with ASAP.    They aren't looking to pit one buyer against another.  Just want to sign highest piece of paper and be done without reaching back out to other interested buyers to see if they will top it.  

It sucks you didn't know there was someone else interested and didn't get a chance to match or top for a place you really wanted.  It does happen a lot though.

It is a possibility asking for the extra 10k in closing cost credits may have hurt you as the seller might have felt the 20k was fair.  But you had no way of knowing a 2nd offer would come in.   That is just speculation.  You don't know what drove a decision without asking and someone telling.  

It sounds to me like seller was in a hurry to just be done since they never came back to you.   But again we don't really know. 

Usually the realtors talk and you can get the skinny from them off the record.

 

 

 

 

 

 

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As far as buyers letters I wouldn’t take them as a seller.

Imagine you have 3 interested buyers and one family writes you a heart felt letter that moves you and you choose that buyer.  

Now perhaps other family is of a minority group, is upset they didn’t get house and thinks you discriminated against them based on whatever since their offer was equal or better.   Not sure if they have a case or not, would have to look at law there, but people can still file even frivolous lawsuits that you don’t need.  

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On 7/9/2022 at 7:53 AM, dll2000 said:

As far as buyers letters I wouldn’t take them as a seller.

Imagine you have 3 interested buyers and one family writes you a heart felt letter that moves you and you choose that buyer.  

Now perhaps other family is of a minority group, is upset they didn’t get house and thinks you discriminated against them based on whatever since their offer was equal or better.   Not sure if they have a case or not, would have to look at law there, but people can still file even frivolous lawsuits that you don’t need.  

I feel like the only people actually in a position to genuinely consider "buyers letters" and potentially take less on their sale...

...Are specifically the kind of people who actually don't care about human beans in the slightest.  And like you intimated...potentially making discriminatory choices.  This is one of those cases where "money spends".

 

Everyone else is just real poor, and trying to get by as best they can.  They'll take the biggest solid offer.

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