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Author Topic: House Buying  (Read 16517 times)

lawdog77

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Re: House Buying
« Reply #100 on: April 25, 2022, 07:11:24 AM »
Thank you! We’re looking forward to it.
Congrats! When's the Scoop Housewarming party? Rocket can supply the novacaine.

cheebs09

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Re: House Buying
« Reply #101 on: April 25, 2022, 07:48:43 AM »
Congrats! When's the Scoop Housewarming party? Rocket can supply the novacaine.

I believe we coordinate that with Wade’s HR department.

wadesworld

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Re: House Buying
« Reply #102 on: April 25, 2022, 07:51:52 AM »
Wades

Congrats!!

Congrats! When's the Scoop Housewarming party? Rocket can supply the novacaine.

Thank you!  If MU ever plays at Mizzou, SLU, or in KC I'll host and DD to whatever city its' in!

I believe we coordinate that with Wade’s HR department.

Lol awesome.
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Herman Cain

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Re: House Buying
« Reply #103 on: April 25, 2022, 10:22:51 AM »
Ended up landing the house I reference at the end of the first paragraph here. Very excited about it. We knew we’d get something nice, but it’s nice to know we for sure will have a nice house.
Excellent work. Congrats and hope you enjoy it.
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StillAWarrior

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Re: House Buying
« Reply #104 on: May 23, 2022, 01:51:08 PM »
A couple that I know is...selling their home right now hoping to make a killing. The person they're working with seems to think a bidding war is possible. For their sake, I hope she's right...

Honestly, it's a very simple, humble house. It's appreciated quite a lot since they purchased it 25 years ago, but even in this market it's probably not even a $500k home. But it's a nice house and I hope they find some people who love it and will pay them for it. They're planning to list within a week or so.


They finally got the house listed last Thursday. By the end of the day Sunday they had 19 offers. They had a cash offer the first day that was $27k over their asking price of $399k. I'm told that there are higher offers, but not cash. I haven't heard all the details yet. They're going to sit down with the realtor tonight to look at all the offers and figure out what to do next. One of the sellers really wanted to list it at $419k but the realtor convinced him that it would be better to list under $400k and that she was confident they'd get his number. Thankfully, it appears that she was right. I don't know if they're going to keep pushing to try to get increased offers or if they're going to pick an offer and sell.
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wadesworld

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Re: House Buying
« Reply #105 on: May 23, 2022, 02:27:00 PM »
Apologies for my ignorance, but as a seller what is the benefit of a cash offer outside of not having to worry about funding falling through over the next month or two while the loan is being processed?  Obviously as the seller you would want preapproval, but is the benefit of a cash offer really worth taking a lower dollar amount?  I've clearly never sold a home (since this was our first experience buying), but once the funding goes through does that cash not all hit your bank account?
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warriorchick

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Re: House Buying
« Reply #106 on: May 23, 2022, 02:29:30 PM »
Apologies for my ignorance, but as a seller what is the benefit of a cash offer outside of not having to worry about funding falling through over the next month or two while the loan is being processed?  Obviously as the seller you would want preapproval, but is the benefit of a cash offer really worth taking a lower dollar amount?  I've clearly never sold a home (since this was our first experience buying), but once the funding goes through does that cash not all hit your bank account?

Well, for one thing, you don't have to worry about a low appraisal spiking the deal.  That's probably especially important in an environment where prices are rising quickly.
Have some patience, FFS.

lawdog77

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Re: House Buying
« Reply #107 on: May 23, 2022, 02:37:02 PM »
Well, for one thing, you don't have to worry about a low appraisal spiking the deal.  That's probably especially important in an environment where prices are rising quickly.
Plus, you get to do this:

StillAWarrior

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Re: House Buying
« Reply #108 on: May 23, 2022, 02:37:26 PM »
Apologies for my ignorance, but as a seller what is the benefit of a cash offer outside of not having to worry about funding falling through over the next month or two while the loan is being processed?  Obviously as the seller you would want preapproval, but is the benefit of a cash offer really worth taking a lower dollar amount?  I've clearly never sold a home (since this was our first experience buying), but once the funding goes through does that cash not all hit your bank account?

Also, at least in Arizona a home inspection is required if someone is going to borrow the money. Cash buyers can waive the inspection. That can be a benefit. I can't imagine buying a home and not getting it inspected, but I suppose others differ. I know my friend that is selling is confident that the house is fine (he's a property manager that is very skilled at maintaining a home), but he still is a bit leery about the post-inspection haggling that can ultimately reduce the selling price. Also, if there's no inspection things can go faster and that's one less thing to go wrong. That said, I suspect they'll likely go with the highest offer.
Never wrestle with a pig.  You both get dirty, and the pig likes it.

wadesworld

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Re: House Buying
« Reply #109 on: May 23, 2022, 03:01:22 PM »
Well, for one thing, you don't have to worry about a low appraisal spiking the deal.  That's probably especially important in an environment where prices are rising quickly.

Also, at least in Arizona a home inspection is required if someone is going to borrow the money. Cash buyers can waive the inspection. That can be a benefit. I can't imagine buying a home and not getting it inspected, but I suppose others differ. I know my friend that is selling is confident that the house is fine (he's a property manager that is very skilled at maintaining a home), but he still is a bit leery about the post-inspection haggling that can ultimately reduce the selling price. Also, if there's no inspection things can go faster and that's one less thing to go wrong. That said, I suspect they'll likely go with the highest offer.

Got it, makes sense.  I know in Wisconsin and Missouri you can waive the inspection even if you are financing.
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PGsHeroes32

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Re: House Buying
« Reply #110 on: May 23, 2022, 03:21:14 PM »
As most are saying really the biggest thing is waviing the inspection. And also playing to their seller schedule. If you can be really flexible on your move in, it truly helps.

Obviously a huge over bid or crazy cash offer will almost always top you.

But if you can be as flexible as possible on anything else, close offers will always go to those. Most people want to get the hell out and done with the sale.
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brewcity77

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Re: House Buying
« Reply #111 on: May 23, 2022, 03:28:48 PM »
Also, at least in Arizona a home inspection is required if someone is going to borrow the money. Cash buyers can waive the inspection. That can be a benefit. I can't imagine buying a home and not getting it inspected, but I suppose others differ. I know my friend that is selling is confident that the house is fine (he's a property manager that is very skilled at maintaining a home), but he still is a bit leery about the post-inspection haggling that can ultimately reduce the selling price. Also, if there's no inspection things can go faster and that's one less thing to go wrong. That said, I suspect they'll likely go with the highest offer.

We waived our inspection last year. The reason was because I knew the guy that originally built the house, the house had sold 3 years prior with an inspection, and they were using a relocation company that did an inspection prior to taking the relocation contract. So while we never got the independent inspection, we felt the risk was minimized of there being serious issues. But it was definitely a risk driven by the current market.
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The Sultan of Semantics

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Re: House Buying
« Reply #112 on: May 23, 2022, 03:38:26 PM »

They finally got the house listed last Thursday. By the end of the day Sunday they had 19 offers. They had a cash offer the first day that was $27k over their asking price of $399k. I'm told that there are higher offers, but not cash. I haven't heard all the details yet. They're going to sit down with the realtor tonight to look at all the offers and figure out what to do next. One of the sellers really wanted to list it at $419k but the realtor convinced him that it would be better to list under $400k and that she was confident they'd get his number. Thankfully, it appears that she was right. I don't know if they're going to keep pushing to try to get increased offers or if they're going to pick an offer and sell.


I hope they are planning on working with someone on the retirement planning aspect of this whole sale.  I know another couple who did this (striking while the iron is hot with their house sale), and outside of paying off a couple credit cards, have pissed away most of their $$$.  Renting a high end apartment didn't help.
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StillAWarrior

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Re: House Buying
« Reply #113 on: May 23, 2022, 03:53:50 PM »

I hope they are planning on working with someone on the retirement planning aspect of this whole sale.

You and me both. The fact that they're in this situation is an indicator that they haven't make good decisions in this area in the past. One thing they have going for them -- at least for their short-term living arrangements -- is that they are moving in to help care for a recently widowed parent. Thus, little or no home expense in the short term and the ability to wait for the market to come back to earth before buying...if they ever buy again (they may just buy the parent's home at some point). I hope to help nudge them in the right direction without overstepping any boundaries.
Never wrestle with a pig.  You both get dirty, and the pig likes it.

warriorchick

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Re: House Buying
« Reply #114 on: May 23, 2022, 09:04:39 PM »
I recently returned from a trip down to visit my folks in suburban Nashville.

The market is so hot down there that they have several transferees in their upscale neighborhood that made their offers sight unseen.  They bought houses priced in the high six figures based on internet photos.
Have some patience, FFS.

PorkysButthole

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Re: House Buying
« Reply #115 on: May 23, 2022, 10:10:58 PM »
I'm not connected to what's going on everywhere, but the place I do see a lot of real estate transactions is suburban Seattle because my daughter lives there and they're looking at houses ... and it's absolutely bonkers.

I think some of the sold listings would shock some of y'all.

Here's a listing for a 3BR, 2BA, 1800 SF house that isn't even in one of Bellevue's most prestigious neighborhoods. It listed for $1.1M and sold immediately for $1.35M.

https://www.redfin.com/WA/Bellevue/6102-115th-Pl-SE-98006/home/414079

Here's a little 1300 SF rambler that listed for $1.1M and sold for $1.42M.

https://www.redfin.com/WA/Bellevue/5614-117th-Ave-SE-98006/home/414567

And those aren't even extreme examples, just a couple I happened to have saved in my inbox. All the time I'm seeing $1M+ houses that go for $400K or $500K or more over list. Even houses in Renton, which has lousy schools and isn't considered as desirable, are going for $100K-$200K over list. Even condos are.

Maybe it's even worse in San Fran or NY or other places, but I've never personally seen anything like this Seattle stuff.

The NYC Suburban market has been bonkers just like everywhere else but while still extremely expensive compared to the Midwest, it's not as high as Seattle or SF, which are on another other level entirely.  In northern NJ, Westchester Co., Nassau & Suffolk county on Long Island and Fairfield County in CT, there has always been and still is a significant price disparity in towns with great public schools vs mediocre or poor schools.  Pricing and Demand are still way up across the board even in towns with mediocre schools, but my understanding from speaking with several folks who have lived out west is that inventory is at such a premium there that the disparity in prices between towns with good schools and so so schools is negligible, if there is one at all.  Anecdotally, a colleague of mine who recently moved back to her native Southern CA during the height of the pandemic right around this time last year told me straight up the public schools in her neighborhood.... where the average home lists for $1.5M.....are downright awful.   Thankfully, her kids are very young and right now they're living in an apt complex but will need to move in a few years when they start 1st grade or go to a private.   There is no suburb that I'm aware of anywhere within a 60M radius of NYC (Yes 60 miles from Manhattan is still considered suburban here) with avg. home values of $1.5M that have mediocre public schools. 
« Last Edit: May 23, 2022, 10:33:27 PM by PorkysButthole »

wadesworld

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Re: House Buying
« Reply #116 on: May 23, 2022, 10:16:48 PM »
How much of the problem is real estate investors buying up the inventory?
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Herman Cain

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Re: House Buying
« Reply #117 on: May 24, 2022, 06:38:52 AM »
A neighbor just listed their house for $4.7 million. It has a contract on it already . They bought it in 2018 for $1.5. Not a large house a little under 3000 square feet but well done and spectacular views. I hope the new buyers are nice people.

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The Sultan of Semantics

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Re: House Buying
« Reply #118 on: May 24, 2022, 08:05:49 AM »
How much of the problem is real estate investors buying up the inventory?

I think that's part of it.  But I also think its because we have a shortage of rental units in many parts of the country.  Oh and inflation.
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Hards Alumni

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Re: House Buying
« Reply #119 on: May 24, 2022, 08:06:56 AM »
I think that's part of it.  But I also think its because we have a shortage of rental units in many parts of the country.  Oh and inflation.

Also, a shortage of new house builds.

It's everything, really.

StillAWarrior

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Re: House Buying
« Reply #120 on: May 24, 2022, 08:40:08 AM »
How much of the problem is real estate investors buying up the inventory?

I know that the cash offer my friends received was from someone that didn't even tour the home -- purely based on looking at the pictures online. I assume that is an investor.

They finally got all the information about their offers last night. Highest offer was $440k ($41k above the list price). They had others in the $420s and $430s. They're in the process of considering the offers and picking one.

At present, they're really not interested in the cash offer. The offer contains a provision that the buyer can back out up to three days before closing. The seller really doesn't like that. They want to get the house under contract and get some peace of mind. They're looking at the better offers and assessing who is financing the smaller amounts so they will have fewer concerns about the appraisal coming in below the amount to be financed (which can screw up the deal). And, yes, they are interested in knowing who is planning to raise kids in the home because this is the home where they raised their family. Not sure if they got any letters, however.

Ultimately, though, I think they'll go with the highest bidder.
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JWags85

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Re: House Buying
« Reply #121 on: May 24, 2022, 01:43:44 PM »
The NYC Suburban market has been bonkers just like everywhere else but while still extremely expensive compared to the Midwest, it's not as high as Seattle or SF, which are on another other level entirely. 

I liked this article...

https://www.wsj.com/articles/keep-the-beachthese-homeowners-are-trying-lagoons-on-for-size-11651089674

A house the size of many 2 BR apartments in SF.  Not on the ocean or even the bay proper, but a lagoon sells for $3.7MM and the article is glowing about appeal and value and it being a fine deal.  Just the absolute absurdity that is SF.

warriorchick

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Re: House Buying
« Reply #122 on: May 24, 2022, 04:32:46 PM »
Another thing that is contributing to the housing spike in certain areas is the change in the WFH paradigm.  If you can live anywhere you want and still keep the same job, why not move to the beach, or the lake, or out in the middle of the woods?
Have some patience, FFS.

LAZER

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Re: House Buying
« Reply #123 on: May 24, 2022, 04:34:57 PM »
I liked this article...

https://www.wsj.com/articles/keep-the-beachthese-homeowners-are-trying-lagoons-on-for-size-11651089674

A house the size of many 2 BR apartments in SF.  Not on the ocean or even the bay proper, but a lagoon sells for $3.7MM and the article is glowing about appeal and value and it being a fine deal.  Just the absolute absurdity that is SF.
Belvedere is really nice and a great place to live, not surprised it's commanding those type of prices. Absurd, but understandable when looking at Bay Area alternatives.

MU82

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Re: House Buying
« Reply #124 on: May 24, 2022, 11:38:50 PM »
How much of the problem is real estate investors buying up the inventory?

The Charlotte and Raleigh newspapers teamed up to do a multiple-part series on this subject. It was both interesting and infuriating.
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