Complaint Thread

[TANV]

My wife and I submitted an offer for a home yesterday and we heard back today it was rejected. Our offer was actually the highest but we didn't put enough money down. We countered with an immediate $15K earnest payment but haven't heard back. So it's time to house hunt again and keep going. I think we'll have to up 10% downpayment to 20% to realistically have a shot.

Problem is coming up with all that money right now. Stocks ain't looking so hot.

[joch29]

  On 2/24/2022 at 6:18 PM, TANV said:

My wife and I submitted an offer for a home yesterday and we heard back today it was rejected. Our offer was actually the highest but we didn't put enough money down. We countered with an immediate $15K earnest payment but haven't heard back. So it's time to house hunt again and keep going. I think we'll have to up 10% downpayment to 20% to realistically have a shot.

Problem is coming up with all that money right now. Stocks ain't looking so hot.

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the competition I'm facing is all cash and at least 10% over asking.

[$20 on joe vs dan]

  On 2/24/2022 at 6:18 PM, TANV said:

My wife and I submitted an offer for a home yesterday and we heard back today it was rejected. Our offer was actually the highest but we didn't put enough money down. We countered with an immediate $15K earnest payment but haven't heard back. So it's time to house hunt again and keep going. I think we'll have to up 10% downpayment to 20% to realistically have a shot.

Problem is coming up with all that money right now. Stocks ain't looking so hot.

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I thought 20% was the requirement by banks...w/ exceptions for teachers and like...has it changed?

[keymomachine]

  On 2/24/2022 at 8:13 PM, $20 on joe vs dan said:

I thought 20% was the requirement by banks...w/ exceptions for teachers and like...has it changed?

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All about that PMI, man. Basically you pay for Private Mortage [default] Insurance until you can hit 20% equity with lots of rules around when you can have it dropped (Or just refinance like I did). With an FHA loan it's called MIP and doesn't drop off, it's included in the loan amount I think - so you have to refinance to 'remove' it.

[TANV]

  On 2/24/2022 at 8:28 PM, keymomachine said:

All about that PMI, man. Basically you pay for Private Mortage [default] Insurance until you can hit 20% equity with lots of rules around when you can have it dropped (Or just refinance like I did). With an FHA loan it's called MIP and doesn't drop off, it's included in the loan amount I think - so you have to refinance to 'remove' it.

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Yeah, that's generally the gist of it. I expect that we'll have 20% equity in the next few weeks with my new job and also my parents chipping in the cash. But yeah, I was saving up for a couple of years thinking in 2019 terms of housing prices instead of...well...whatever we want to call this mad market.

[exciter1]

  On 2/24/2022 at 8:13 PM, $20 on joe vs dan said:

I thought 20% was the requirement by banks...w/ exceptions for teachers and like...has it changed?

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There are many ways around that 20%.

[House Schubert]

  On 2/24/2022 at 6:56 PM, joch29 said:

the competition I'm facing is all cash and at least 10% over asking.

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recently read an article that said 25% of home purchases in the last year were investors of some kind.

[Mark Twain]

  On 2/24/2022 at 9:53 PM, House Schubert said:

recently read an article that said 25% of home purchases in the last year were investors of some kind.

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Yeah, flipping is in right now. A couple down the street bought a 3000 sqft house in late 2020 for $325k. Renovated it themselves. Went on the market this week for $497k. It's nuts. Another couple who bought on our street renovated their house and put each project on Youtube, sharing it all on the homeowner's FB page. 

[redghostx]

  On 2/24/2022 at 6:56 PM, joch29 said:

the competition I'm facing is all cash and at least 10% over asking.

Probably with no subjects too.

Yay LEGO!

[cladner]

  On 2/24/2022 at 10:01 PM, Mark Twain said:

Yeah, flipping is in right now. A couple down the street bought a 3000 sqft house in late 2020 for $325k. Renovated it themselves. Went on the market this week for $497k. It's nuts. Another couple who bought on our street renovated their house and put each project on Youtube, sharing it all on the homeowner's FB page. 

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not even flipping - long term investing.  flipping is way down around here now as real estate to flip has dried up, labor costs are through the roof and good luck even finding materials at anything but insane cost.  hope you don't need a garage door.

blackrock is the largest asset manager in the world.  they're buying individual houses to hold and rent.  woo-hoo - fun to compete against that.

https://slate.com/business/2021/06/blackrock-invitation-houses-investment-firms-real-estate.html

 

 

Edited February 25, 2022 by cladner

[MusiKyle]

I'm in eastern Iowa.  I bought a home in 2017 for $166K and sold it in 2021 for $220K (a 33% increase).  Great news on the sale, but the place I bought next (also in 2021) I had to offer $10K (or roughly 5%) over asking to have a chance.  I offered one more dollar than another offer (good old price is right method) and waived inspection and that struck the deal with the sellers. Oh and that all happened on the same day the property was listed... I don't think I'll be moving for a while.

[exciter1]

  On 2/25/2022 at 2:15 AM, MusiKyle said:

I'm in eastern Iowa.  I bought a home in 2017 for $166K and sold it in 2021 for $220K (a 33% increase).  Great news on the sale, but the place I bought next (also in 2021) I had to offer $10K (or roughly 5%) over asking to have a chance.  I offered one more dollar than another offer (good old price is right method) and waived inspection and that struck the deal with the sellers. Oh and that all happened on the same day the property was listed... I don't think I'll be moving for a while.

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We’ve been talking about downsizing, but all smaller places are crazy prices too.

[redghostx]

  On 2/25/2022 at 2:15 AM, MusiKyle said:

I'm in eastern Iowa.  I bought a home in 2017 for $166K and sold it in 2021 for $220K (a 33% increase).  Great news on the sale, but the place I bought next (also in 2021) I had to offer $10K (or roughly 5%) over asking to have a chance.  I offered one more dollar than another offer (good old price is right method) and waived inspection and that struck the deal with the sellers. Oh and that all happened on the same day the property was listed... I don't think I'll be moving for a while.

Crazy to waive inspection IMO. While you might get lucky, you might also get stuck with tens of thousands in repairs.

Yay LEGO!

[keymomachine]

  On 2/25/2022 at 2:15 AM, MusiKyle said:

I'm in eastern Iowa.  I bought a home in 2017 for $166K and sold it in 2021 for $220K (a 33% increase).  Great news on the sale, but the place I bought next (also in 2021) I had to offer $10K (or roughly 5%) over asking to have a chance.  I offered one more dollar than another offer (good old price is right method) and waived inspection and that struck the deal with the sellers. Oh and that all happened on the same day the property was listed... I don't think I'll be moving for a while.

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My sister-in-law in Michigan, while pregnant with twins last summer was trying to get a bigger house for their soon to be family of six and basically found they were priced out, couldn't really compete with other offers out there. A friend of theirs tells them that their neighbor just got a new job at a school district a few towns away and got permission to show them the house (literally half a block away from their old place). They put their best number out there and took the counteroffer, never went to market. They paid 125k in 2015 on their first house and sold for 232k last year!

[House Schubert]

https://www.newsobserver.com/news/business/real-estate-news/article258678143.html

video of a crowd at an open house. 

Edited February 25, 2022 by House Schubert

[oneknightr]

The housing market is ridiculous. When we bought in 2017, we thought we were purchasing at the high since the market had been going up each year since 2011/2012. We were house shopping under duress because our landlord wanted to raise the rent on our house from $4100 to $4700. I guess we should thank our greedy landlord for motivating us to buy.

[$20 on joe vs dan]

my complaint is that you need to add a zero to all the prices listed on this page to reach the Bay Area prices

[bigboy61]

For those of you that can wait, I would wait a few years to buy a house. This can't last forever. It's absolutely unsustainable. People are buying houses they can't afford. Sooner or later, the economy will cool off, people will lose their jobs and the bottom will fall out. That's when you'll get a good deal because it's a race to the bottom so they don't get foreclosed on. 

[Mark Twain]

  On 2/25/2022 at 12:26 AM, cladner said:

not even flipping - long term investing.  flipping is way down around here now as real estate to flip has dried up, labor costs are through the roof and good luck even finding materials at anything but insane cost.  hope you don't need a garage door.

blackrock is the largest asset manager in the world.  they're buying individual houses to hold and rent.  woo-hoo - fun to compete against that.

https://slate.com/business/2021/06/blackrock-invitation-houses-investment-firms-real-estate.html

 

 

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Flipping may be regional. All the homes we looked at in the past six months have now sold and are being redone as we speak. Several from 2 years ago are already resold. My father-in-law just sold his house for 3x he bought it before 19 years ago and the buyer had plans already drawn up and a dumpster delivered the day they closed. 

Simply put there's no inventory and people are being hired now, so we're no where near a collapse in the housing market at the moment. If you have time and skills you can buy a house and redo it at your own pace and sell for quite a bit in 2-3 years time. 

[dennugsmello]

  On 2/25/2022 at 12:26 AM, cladner said:

 

blackrock is the largest asset manager in the world.  they're buying individual houses to hold and rent.  woo-hoo - fun to compete against that.

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Blackrock is the real redpill. 

[$20 on joe vs dan]

  On 2/25/2022 at 12:23 PM, bigboy61 said:

For those of you that can wait, I would wait a few years to buy a house. This can't last forever. It's absolutely unsustainable. People are buying houses they can't afford. Sooner or later, the economy will cool off, people will lose their jobs and the bottom will fall out. That's when you'll get a good deal because it's a race to the bottom so they don't get foreclosed on. 

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depends on the area.

At the last "housing bubble burst" late 2000s, some regions prices fell by half or more...and typically 30% across the board; BUT  in the best neighborhoods (ie neighborhoods that have ALWAYS been expensive; typically coincides w/ top schools); even the down market did not affect prices that much...these don't jump as high nor fall much at all...we bought into this neighborhood and the only positive we experienced is that we even had a chance...whereas in regular markets I don't think we would have even known about the house...let alone have a shot at it.

[iahawks550]

  On 2/25/2022 at 12:23 PM, bigboy61 said:

For those of you that can wait, I would wait a few years to buy a house. This can't last forever. It's absolutely unsustainable. People are buying houses they can't afford. Sooner or later, the economy will cool off, people will lose their jobs and the bottom will fall out. That's when you'll get a good deal because it's a race to the bottom so they don't get foreclosed on. 

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Maybe. In some areas, housing costs have almost doubled. I doubt post-boom, they drop the same amount. Plus, buying homes that people can't afford also mean repair bills. 

Don't forget about what interest rates will look like in three years. 

[Lordoflego]

f Putin. 

[House Schubert]

The Ghost of Kiev urban legend makes me sad.

 

[Darth_Raichu]

I have been trying so hard not to post world affairs, but I can't help but respect the Ukraine President: