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chupacabraTERROR posted:I'm probably boring you all with these details, but I need some help dissecting this so I can figure out what's market and what's ridiculous to put in an offer. I called the seller's agent directly to get the low-down from him since my agent is an idiot. I want to be competitive on the next bid/house, so I think it's important to understand how/why this bid won. But... some of these things just seem kinda crazy to my inexperienced real estate buyer's eye. I put down 3% as earnest money deposit in the bay area. Under 30 day closing time is not unusual but 30 days is still the standard. It depends on your local market. In a buyers market like most rural areas there is a minimal cost to taking the home off the market and less than 1% will be the norm. People are irrational when it comes to real estate. If something comes up in an inspection and the lender can't close the loan after waiving the inspection contingencies the seller keeps the earnest money. If you don't waive the contingencies it is very easy for the buyer to just change their mind and the seller is left with nothing. Especially if they are trying to sell one house while buying another and moving, being able to close in 21 instead of 30 days is important. Or they could be doing a 1031 exchange and close to a deadline. If the home is in good condition they will not accept any lowball offers just because the inspections are waived. The flipside to all of this is that it is the sellers problem and never get emotionally attached to a home. Make an offer at a price your are comfortable with and be willing to walk away.
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May 5, 2016 20:08
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I am pretty certain an inspection contingency lets you walk for any reason. You do not need to share your inspection report. I guess some states could be different and you can always sue but you can just make an insane demand like replace all the nails with unrusted ones. (I am pretty sure my buyers will ask for this.)
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May 5, 2016 20:12
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Buyers can ask for anything and walk for any reason in most states. It's kind of ridiculous and I wish I had known when I first bought how much power I wielded there. The offer doesn't really mean much until they sign off on or waive the inspection contingency.
Nail Rat fucked around with this message at 20:42 on May 5, 2016 |
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May 5, 2016 20:30
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chupacabraTERROR posted:I'm probably boring you all with these details, but I need some help dissecting this so I can figure out what's market and what's ridiculous to put in an offer. I called the seller's agent directly to get the low-down from him since my agent is an idiot. I want to be competitive on the next bid/house, so I think it's important to understand how/why this bid won. But... some of these things just seem kinda crazy to my inexperienced real estate buyer's eye. What will actually happen: - Other Buyers will not be able to secure financing by closing date. - Seller will grant extension, making the lower bid worthless save for the removed inspection fees. - Other Buyers will panic to try and get financing, will not be able to produce financing due to appraisal finding fundamental flaw with house that makes the purchase an unsound investment for the bank. - Seller will pull out on Other Buyers. - Seller Agent will contact you to see if you're still interested. - It's gonna sound like you're hanging up but *click*
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May 5, 2016 21:52
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Elephanthead posted:I am pretty certain an inspection contingency lets you walk for any reason. You do not need to share your inspection report. I guess some states could be different and you can always sue but you can just make an insane demand like replace all the nails with unrusted ones. (I am pretty sure my buyers will ask for this.) My takeaway from this page is my realtor is being misleading because his job might be slightly harder because I did an extra inspection.
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May 5, 2016 21:53
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Dwight Eisenhower posted:What will actually happen: Imagine if the Other Buyers also waived their financing contingency. If they did that, I can see why the seller didn't negotiate with us at all, that other offer is a slam dunk for them (either it closes in 20 days or w/e, or they get to keep $24k)
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May 5, 2016 22:19
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Nail Rat posted:Buyers can ask for anything and walk for any reason in most states. It's kind of ridiculous and I wish I had known when I first bought how much power I wielded there. The offer doesn't really mean much until they sign off on or waive the inspection contingency. In Wisconsin at least if the buyer is going to object to something based on the inspections they have to send a Notice of Defects before the inspection contingency expires. A "Defect" has a specific legal meaning in the contract and doesn't just mean any random tiny thing: WI WB11 Offer to Purchase posted:“Defect” means a condition that would have a significant adverse effect on the value of the Property; that would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or replaced would significantly shorten or adversely affect the expected normal life of the premises. Of course buyers can always be huge dicks and try to claim something is a Defect but is clearly not. I'm unfortunately close to this since my buyers are freaking out over some very minor wind damage (described as such by the home inspector) to some siding, which they want me to pay for. I'm happy to keep their $10k earnest money if they want to try to claim defects, certainly hope it doesn't come to that though. Surprised this isn't the standard in most states I guess? Definitely can otherwise become a BS way to duck out of an accepted offer.
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May 6, 2016 01:45
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Came back no termites but I'm still miffed. I look forward to realtors going the way of buggy salesmen.
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May 6, 2016 03:16
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chupacabraTERROR posted:Imagine if the Other Buyers also waived their financing contingency. If they did that, I can see why the seller didn't negotiate with us at all, that other offer is a slam dunk for them (either it closes in 20 days or w/e, or they get to keep $24k) $24k is 3% of the lower purchase price? So you offered more than $800k for a property that presumably has something horribly wrong with it?
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May 6, 2016 10:58
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QuarkJets posted:$24k is 3% of the lower purchase price? So you offered more than $800k for a property that presumably has something horribly wrong with it? He's in San Diego
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May 6, 2016 11:59
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Dogcow posted:In Wisconsin at least if the buyer is going to object to something based on the inspections they have to send a Notice of Defects before the inspection contingency expires. A "Defect" has a specific legal meaning in the contract and doesn't just mean any random tiny thing: There's wording like that in contracts in Illinois, but in practice according to just about everyone I've talked to, it's not enforceable and the buyer can absolutely just say they're not happy with the results of the inspection and walk and still keep their earnest money.
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May 6, 2016 13:55
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QuarkJets posted:$24k is 3% of the lower purchase price? So you offered more than $800k for a property that presumably has something horribly wrong with it? That was what I offered. I'm assuming their offer wasn't that much lower, but I don't know the exact number. And yeah, this house for $800k would have been a steal in this area if there's nothing wrong with it. Obviously if something were wrong with it, I wouldn't pay $800k. That's why the inspection contingency exists. It wasn't clear that something may be wrong with it until the sellers agent started playing games with the buyers at the very end, after I had put in my bid (with contingencies).
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May 6, 2016 17:00
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Dogcow posted:In Wisconsin at least if the buyer is going to object to something based on the inspections they have to send a Notice of Defects before the inspection contingency expires. A "Defect" has a specific legal meaning in the contract and doesn't just mean any random tiny thing: The WB 11 is just a standard "default" contract template. Buyers are free to amend it with different contingency terms if they see fit.
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May 6, 2016 17:53
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Pryor on Fire posted:3. Letter writing: not sure if this is happening everywhere but in Colorado it's become quite common to write a letter about how amazing the house is, how you're a good white christian heterosexual with children on the way and can't wait to start a garden and get chickens and raise a family in this amazing place, basically pandering as much as possible. You wouldn't think this matters to sellers at all but for some segment of them it lands for sure, even if it's bullshit. I first found out about this when my wife and I attended a Redfin dinner thing where they talked about the local housing market and the process for buying a house (I recommend one of these if you can swing it early in the process; it also came with some good information on the local market). The realtor there said "you don't need a cover letter, but it can sometimes tip the scales". When I asked our realtor about it, she said basically the same thing: it's optional, but it can help. We wrote one for our purchase, basically saying "we love your house, and just like you raised a family in it, we'd love to raise a family in it, too". It can put a human face to an offer letter, which can tug on heartstrings and make an offer appear better (a lot of people would rather sell to a family than a landlord, because of personal attachment and so on). Given two otherwise identical offers, one with a letter saying "we're a family", the other with no letter, I suspect most people would accept the offer with the letter. It's stupid to reject an offer simply because it doesn't have a letter, though.
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May 6, 2016 19:01
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Axiem posted:I first found out about this when my wife and I attended a Redfin dinner thing where they talked about the local housing market and the process for buying a house (I recommend one of these if you can swing it early in the process; it also came with some good information on the local market). The realtor there said "you don't need a cover letter, but it can sometimes tip the scales". I had a seller that I thought was playing some games. My realtor put one together with family pictures and poo poo and things moved smoother. After I take possession I'm going to write up some poo poo on it to vent. Until then I just pack and refresh my email for whatever goes wrong next.
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May 6, 2016 19:12
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chupacabraTERROR posted:That was what I offered. I'm assuming their offer wasn't that much lower, but I don't know the exact number. And yeah, this house for $800k would have been a steal in this area if there's nothing wrong with it. Obviously if something were wrong with it, I wouldn't pay $800k. That's why the inspection contingency exists. It wasn't clear that something may be wrong with it until the sellers agent started playing games with the buyers at the very end, after I had put in my bid (with contingencies). drat, I thought the Bay Area was nuts but at least there's a large amount of decent paying jobs around that can kinda support that level of prices.
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May 6, 2016 21:37
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Hughlander posted:I just pack and refresh my email for whatever goes wrong next. new thread title, plz
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May 6, 2016 21:57
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Axiem posted:I first found out about this when my wife and I attended a Redfin dinner thing where they talked about the local housing market and the process for buying a house (I recommend one of these if you can swing it early in the process; it also came with some good information on the local market). The realtor there said "you don't need a cover letter, but it can sometimes tip the scales". Sellers (if they still have friends in the neighborhood) will also approve offers from families they know will be a great fit for the neighborhood as well. I accepted a VA deal on my last house sale in Sacramento (to an Air Force family with grommets) over a slightly more lucrative offer from some bay area transplant retiree cashing out, because I knew the family would fit in with the 15+ other grommets in that neighborhood. The VA deal was closed in under 20 days as well. No issues at all. My good friends got into a house last year (over higher offers from Bay Area douches) with the letter/pics of kids/want to stay in same school district blah blah as well so it definitely happens.
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May 6, 2016 22:36
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I almost don't own a house. 20 days to go. woo.
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May 7, 2016 00:56
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 Just dumped mine this week. Feels so good!
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May 7, 2016 00:58
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Isn't it unethical too accept offers based upon the ability to present a "good" image? And illegal. Isn't that how you used to keep "undesirable" people out? Taking less money should get you kicked out of bfc.
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May 7, 2016 20:45
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Elephanthead posted:Isn't it unethical too accept offers based upon the ability to present a "good" image? And illegal. Isn't that how you used to keep "undesirable" people out? Taking less money should get you kicked out of bfc. You could maybe make that argument in court but good luck actually making it stick to anyone. I also wouldn't deem it unethical if the choice was between "nice person/people looking for a house to live in" and "rear end in a top hat wants to make cheapo upgrades and flip for profit". I would argue that it's more unethical to sell to a person who you know is going to flip the house.
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May 7, 2016 21:26
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So, house hunting can yield some good stories. I called the number on a lawn sign on a property I wanted to look at. Talked briefly to the receptionist and she told me an agent would get in touch with me. A couple hours later, an agent calls me. We talk briefly about the property, he mentions he has over 30 years experience in selling homes and that he knows the area very well. Seems impressed that I'm willing to pay the full 20% down payment. We agree to take a look at the house in a few days. After a bit of small talk, he says he has a client he's meeting with and says he'll call me back in a few hours. to confirm everything. Okay, so far so good. But a few hours go by and he doesn't call me back. In fact, I never hear back from him again. I figured he blew me off and forgot about it until literally 2 hours before we were supposed to look at the house, he calls me and asks if we can meet a half hour earlier. I've already got serious doubts about this, but the property is very close from where I live and I figure I can at least get some more experience looking at places, so I agree to meet. So, I drive to the place and knock on the door. I am greeted by two barking dogs in the window. What the hell? I thought this place was unoccupied? A few seconds later a red SUV pulls up and it's the agent. We greet and he seems confused- he thought the property was unoccupied as well. He calls his company and realizes his goof- he meant the property next door. Even though the for sale sign was on this property. This property has a pending sale. Did the company just want to save money on signs or something? So we walk to next door and the door is locked. My very knowledgeable agent with +30 years experience doesn't have the freaking key to the house. He says something about a dropbox usually being available with the key inside it, but not here apparently. At this point, I'm only sticking around for my own amusement at how badly this guy is handling this. We walk around the place and it's a real dump. It's a foreclosure. Just looking at the inside from the windows I can see filthy carpet, shoddy workmanship on the kitchen cabinets and the gate to the back yard was broken. The roof looks like it's ready to blow away with a strong wind. He tries to tell me that fixer uppers like these are a great investment for handyman types. He tells me yet again that he's very experienced and knows the area and real estate business very well. I thank him for his time, he hands me a card and tells me he'll call me. When (if) he calls me, I won't answer and I'm thinking I'll wait about 5 days to tell him he and I won't be doing any business. Oh, and sure enough, the occupant of the house I thought I was going to look at pulls into her driveway only minutes after we walk over to the next house. If we had kept the original appointment time, this woman would have had a shady agent and some total stranger knock on her door asking to walk around inside her house. Fun times. How do guys like this stay in business?
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May 7, 2016 23:51
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In the UK, I know a couple who didn't just write a letter like this to the seller, but also a slightly different one to all of their neighbours, in a quiet dead-end street. That did the trick and got them the house. I suspect these letters even more effect if the sellers are on friendly terms with their neighbours, as they'll pressurize them not to sell to undesirables (non-white, non-traditional family unit, whatever)
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May 7, 2016 23:53
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Has anyone ever done a for sale by owner? How was the experience?
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May 8, 2016 23:18
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We stopped by an open house on Saturday that seemed really nice, but asking was over our budget by a fair bit so we weren't really considering it. Because I'm a bored busybody I looked up the property records via the city (to see if the renovations were permitted) and the place has been sold in 2011, 2012, 2014, 2015, and now 2016! Now I'm super curious. Is it haunted? Terrible neighbors? Flea infestation? edit: It has appreciated in value a lot over that period but the last 3 owners probably broke even or lost money given their short time owning. Thufir fucked around with this message at 20:12 on May 9, 2016 |
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May 9, 2016 20:10
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Just got back from our home inspection. It took the full 3 hours and went really well! The inspector went over the whole house with us, told us what needed improvement as well as how to do a bunch of minor fixes and maintenance for nearly everything in the home. All in all the house seems to be in really good shape for being 60 years old. He said the bathroom renovations seemed to be professionally done, and there was no moisture anywhere in the house. One thing he wants us to get checked is that he thinks the 100 amp service is actually 60 amp service, so that will have to be looked into. The house also just got appraised for exactly the price we'll be paying for it.
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May 10, 2016 03:26
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Thufir posted:We stopped by an open house on Saturday that seemed really nice, but asking was over our budget by a fair bit so we weren't really considering it. Because I'm a bored busybody I looked up the property records via the city (to see if the renovations were permitted) and the place has been sold in 2011, 2012, 2014, 2015, and now 2016! Now I'm super curious. Is it haunted? Terrible neighbors? Flea infestation? It could be something as simple as really bad neighbors. It's one of the many things that many people don't bother checking for before buying a house (first impressions don't necessarily tell the whole story, but introducing yourself to a few people can reveal interesting things and almost no one bothers doing it)
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May 10, 2016 09:06
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Thufir posted:The place has been sold in 2011, 2012, 2014, 2015, and now 2016! Now I'm super curious. Is it haunted? Terrible neighbors? Flea infestation? Is it possible some of those were refinances? If not, dang what's wrong with that spot! In other news I don't actually belong on this thread until next Tuesday when we close on our new place. I'm so freaking glad we only rent our current dwelling: possums. Cat's food that was doing just fine out of sight of the kids under the kitchen sink drew the babies up from wherever their den is under the house. Managed to trap mama outside near the hole under the house, but no babies were attached. Neither I nor the landlord have any idea what to do from here.
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May 10, 2016 22:01
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Thufir posted:We stopped by an open house on Saturday that seemed really nice, but asking was over our budget by a fair bit so we weren't really considering it. Because I'm a bored busybody I looked up the property records via the city (to see if the renovations were permitted) and the place has been sold in 2011, 2012, 2014, 2015, and now 2016! Now I'm super curious. Is it haunted? Terrible neighbors? Flea infestation? Property records should give you the names of the previous owners right? See if you can hunt them down and ask.
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May 10, 2016 22:05
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kbdragon posted:Is it possible some of those were refinances? If not, dang what's wrong with that spot! Different names on all of them. Mister Fister posted:Property records should give you the names of the previous owners right? See if you can hunt them down and ask. I probably could but I'm not trying to buy this house anyway so don't want to creep anybody out.
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May 10, 2016 22:23
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My property taxes are now officially more than my mortgage payments (on a 30-yr mortgage with 20% down). Good thing I'm not a filthy renter throwing money away though.
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May 13, 2016 17:31
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Didn't even get a chance at the 4 unit multiplex I looked at. Looking at a 2 unit one next week that has one unit marked for low income. The numbers are actually looking decent for it. I might need to get better at paperwork though.
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May 13, 2016 19:35
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My dad's inherited some money and wants to buy a house, or, possibly, buy land and build a house, he hasn't decided yet; buying a house seems more likely. What's the current best thing I can have him read so that he's reasonably protected from being taken for a ride? The house my parents bought when they were married was basically a 20-year-long nightmare that destroyed his health, so I'd rather not have that again.
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May 13, 2016 19:55
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atomicthumbs posted:My dad's inherited some money and wants to buy a house, or, possibly, buy land and build a house, he hasn't decided yet; buying a house seems more likely. Why does he want a house? Show him this: http://jlcollinsnh.com/2013/05/29/why-your-house-is-a-terrible-investment/
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May 13, 2016 20:39
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Buy him an SA account and have him read/post in this thread.
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May 13, 2016 20:39
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Second unsuccessful offer attempt... 2 for 2 on having the highest bid and still losing. Maybe this is an omen
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May 14, 2016 04:30
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chupacabraTERROR posted:Second unsuccessful offer attempt... 2 for 2 on having the highest bid and still losing. Maybe this is an omen
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May 14, 2016 17:26
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SiGmA_X posted:Why'd you lose? How's your cover letter? And finances? The winning bidder was a family w/ kids living already living in the area. We're newlyweds in our mid 20s who probably come off as grossly irresponsible for looking in this price range, despite our finances being 100% in order (show us the tax returns mr. chupacabra!). Our letter is awesome and people have told us that, we just don't have kids going to the local elementary just yet and we can't compete with that poo poo. edit: gently caress sellers markets, man. We don't even NEED to buy right now, we just want to be set up for the future, we know we're going to start a family in the next 5yrs, we're 100% sure we're going to stay in the area, and we really want a dog :/ moon demon fucked around with this message at 20:28 on May 14, 2016 |
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May 14, 2016 20:24
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You're missing the obvious trend here, you're offering too much money.
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May 14, 2016 22:30
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