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Barring major macroeconomic disruption, all real estate is local.
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Apr 12, 2016 17:57
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Pryor on Fire posted:Oh man demanding electrical and plumbing being up to code, how quaint, I remember those days when buyers could do that around here. Instead sellers just go with one of the three backup offers if you so much as frown at the house nowadays. It's funny that (lousy) builders talk about code as if it's this onerous, restrictive and lofty goal when it's actually just "the bare minimum to not have your house disintegrate"
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Apr 12, 2016 17:59
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Bozart posted:Barring major macroeconomic disruption, all real estate is local. Your post literally says "real estate is local, except when it's not" I thought it was interesting that someone in St. Louis would be hearing the same market chatter as someone in San Diego. It's obviously very anecdotal, but something like that is what you would expect to hear if a larger trend towards "the market is hot, buy buy buy" were happening nationwide. Obviously cheap money and relative economic success has made buying homes popular again, the question is whether it's a bubble or not. The point of my post was to discuss today's market versus 2007/2008, since I'm assuming many of you have been paying attention to housing for that long, unlike myself.
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Apr 12, 2016 18:01
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Pryor on Fire posted:Oh man demanding electrical and plumbing being up to code, how quaint, I remember those days when buyers could do that around here. Instead sellers just go with one of the three backup offers if you so much as frown at the house nowadays. Yep, we were one of the backup offers so there was no way to push on anything. Six months in and as far as I can tell we got really lucky that nothing major was missed and all seems well, but then again getting laid off 3 weeks after our first mortgage payment was processed was pretty fun.
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Apr 12, 2016 18:02
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chupacabraTERROR posted:Your post literally says "real estate is local, except when it's not"  Actually their post literally says "Barring major macroeconomic disruption, all real estate is local." That being said, I agree that anecdotally I'm seeing a lot of "the market is hot buy buy buy" in cities, and my speculation about it is that it has more to do with urban living getting popular among people of a certain age demographic and that certain age demographic is just starting to get enough money to buy a house. IIRC (phone posting so I can't easily look it up) the actual national housing market data points to a less bubbly picture, ranging from shaky/flat to modest growth. Probably meaning that suburbs and exurbs, which are a big part of the aggregate market, are not as "hot" as urban housing markets.
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Apr 12, 2016 18:21
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The majority of the country seems to have a sane real estate market right now, which is why when I read about certain locations being described with statements like "all cash", "multiple offers first day of listing, over asking price", "waiving contingencies/inspections" my gut is to recommend people to stay away from house buying and just rent until that location cools off or they can move to someplace that isn't ridiculous. There is no reason to overpay for a lovely house just because the current location's market is "booming" because we all know how that worked out pre-2008.
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Apr 12, 2016 18:27
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canyoneer posted:It's funny that (lousy) builders talk about code as if it's this onerous, restrictive and lofty goal when it's actually just "the bare minimum to not have your house disintegrate" No I agree with you, code is great for the most part. I'm not arguing against it and am definitely not one of those libertarian shitheads who thinks you should be able to build whatever awful deathtrap you want, I'm just saying I haven't seen anyone demand anything be up to code in a transaction in a looooooong time.
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Apr 12, 2016 18:44
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Celador posted:The majority of the country seems to have a sane real estate market right now, which is why when I read about certain locations being described with statements like "all cash", "multiple offers first day of listing, over asking price", "waiving contingencies/inspections" my gut is to recommend people to stay away from house buying and just rent until that location cools off or they can move to someplace that isn't ridiculous. There is no reason to overpay for a lovely house just because the current location's market is "booming" because we all know how that worked out pre-2008. This is how I feel, so it's nice to see someone else say it. All of the statements you made have been made to us by agents. One location had 5 offers the day it got listed and it closed less than 2 weeks later, so I'm assuming it was all cash. It was still within our budget, it just seems kinda crazy.
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Apr 12, 2016 19:35
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Celador posted:The majority of the country seems to have a sane real estate market right now, which is why when I read about certain locations being described with statements like "all cash", "multiple offers first day of listing, over asking price", "waiving contingencies/inspections" my gut is to recommend people to stay away from house buying and just rent until that location cools off or they can move to someplace that isn't ridiculous. There is no reason to overpay for a lovely house just because the current location's market is "booming" because we all know how that worked out pre-2008. I decided I needed to buy before Facebook, Google, and Amazon own the entire perimeter of Lake Union in Seattle. It's like purchasing the goooooogle.com url back in 1999.
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Apr 12, 2016 19:41
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Celador posted:The majority of the country seems to have a sane real estate market right now, which is why when I read about certain locations being described with statements like "all cash", "multiple offers first day of listing, over asking price", "waiving contingencies/inspections" my gut is to recommend people to stay away from house buying and just rent until that location cools off or they can move to someplace that isn't ridiculous. There is no reason to overpay for a lovely house just because the current location's market is "booming" because we all know how that worked out pre-2008. In Seattle it's getting to the point where rents are so high people that are buying because it's only a little bit more money per month (not really but, you know, on paper).
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Apr 12, 2016 19:48
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HEY NONG MAN posted:In Seattle it's getting to the point where rents are so high people that are buying because it's only a little bit more money per month (not really but, you know, on paper). VVVV agreed. SiGmA_X fucked around with this message at 20:36 on Apr 12, 2016 |
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Apr 12, 2016 20:13
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Some prices are rising because of increased long term demand and won't ever reach the lower levels (or maybe even current levels) again. Everything is case by case. Also, there are a lot of non financial incentives in home ownership that can make it worth (or not worth) buying in a hot market.
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Apr 12, 2016 20:34
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chupacabraTERROR posted:This sentence caught my eye. I'm looking for my first house in north county San Diego and I've been noticing this same line repeated over and over. Inventory is low, houses are being bought with cash offers 2 days after listing, buy before you get priced out! You're right to think this through. I don't have the answer at all but I do live in San Diego and I did buy a house in North County (Rancho Penasquitos) in 2011. Like anywhere, the market is driven by demand. In San Diego, we pay a premium to live here because it's loving awesome. If I use comps, I can believe that my house's value has gone up 25% since then - and I do believe that's true. Do I understand why? Not really - but I don't believe that it's primarily due to a lack of inventory and I don't think there's a major crash coming. If I go to Redfin or Zillow, I see plenty of houses on the market and plenty that have been on the market for 100 days or more. Probably not as many as when I bought but still - there's plenty of inventory. Maybe it's as simple as people have recovered from 2007 and are ready again? A lot of people think that this is just the market correcting after the crash and that we're still somewhat undervalued. Who knows. Either way, I'm considering selling and taking profit just because - how many times in your life do you get to take a $200k tax-free profit...At some point I'll want to retire and as much as I love San Diego I know I won't be able to afford to do it here.
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Apr 12, 2016 20:47
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Rofl in what world is it tax free?
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Apr 12, 2016 21:03
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HEY NONG MAN posted:Rofl in what world is it tax free? In this world when capital gains on an occupied home is tax exempt.
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Apr 12, 2016 21:05
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So, my husband and I are starting up the house hunt again. We looked at a place nearby yesterday and it would've been great if the basement wasn't made for hobbits. :/ 4 ft ceilings and no windows. Storage space only. On Friday, we're going to meet up with the realtor for coffee and then go see this place. http://www.edmontonhomesweb.com/listing/e4014615-12509-81-street-edmonton-ab-t5b-2t8/ If we're lucky, we can find a good place before the end of the summer.
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Apr 12, 2016 22:46
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Celador posted:The majority of the country seems to have a sane real estate market right now, which is why when I read about certain locations being described with statements like "all cash", "multiple offers first day of listing, over asking price", "waiving contingencies/inspections" my gut is to recommend people to stay away from house buying and just rent until that location cools off or they can move to someplace that isn't ridiculous. There is no reason to overpay for a lovely house just because the current location's market is "booming" because we all know how that worked out pre-2008. Unfortunately, anywhere near transit or a major city (aka jobs) is hot hot hot so the only way to avoid that is to buy an in exurb which most people don't want to do.
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Apr 12, 2016 23:45
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Dead Pikachu posted:St Louis is going through a house shortage. It certainly appears that way, speaking as someone else in St. Louis going through the house thing. We're upgrading, and the house we were selling got two offers the first day we had private showings. One of them was for a little over list price, and we immediately said "yes". (The other offer was under list price, at about the point we expected) As for the house we're buying, we caught it in an open house the second time it was on the market, and then it went off the market. We asked our agent, and she got in contact with the people who own it, and long story short we made an offer at below their list price, which they accepted. Probably to save them the hassle of putting it on the market a third time. Guess it just kind of depends  Before we put our house on the market, we went to a dinner Redfin put on where they basically told us how awesome Redfin is while we had dinner (at a fairly nice restaurant, too!). Part of the spiel was telling us about the local housing market, and the woman said (if I remember correctly) that houses in St. Louis were on the market on average two or three weeks. Incidentally, if you have one of these events near you, it can't hurt to go for an evening. It doesn't really feel like a bubble to me, in the same sense that the last market was, where there was a lot of speculation. Talking with contractors and finance people, it's more a function of the 2008 crash utterly killing new build around here, and the economy's picking up enough that there's a little more demand than supply (especially in the not-loving-nowhere suburbia), and they seemed to think it'll even out sooner or later without a major bubble/crash. Assuming I understood them correctly. Of course, I'm also lovely at finance things, and have been bumbling through the process while my wife actually gets poo poo done, so  And the house we're buying has a 15-year-old roof, but the mortgage company didn't have any particular problem with it. Neither did the home insurance company. Though we also said "our first thing when we get the house will be to replace the roof", so that probably looked good.
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Apr 13, 2016 00:06
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Just tell us what the economy of St. Louis is based around and we can tell you if it's a bubble or not. How many Apple watches do you see per capita?
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Apr 13, 2016 00:45
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Pryor on Fire posted:Just tell us what the economy of St. Louis is based around and we can tell you if it's a bubble or not. How many Apple watches do you see per capita?
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Apr 13, 2016 01:43
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Pryor on Fire posted:Just tell us what the economy of St. Louis is based around and we can tell you if it's a bubble or not. How many Apple watches do you see per capita? I'm...not the right person to ask about Apple Watches. I work for a software development firm, so it's high relative to the general population. And we don't get out much. As for what our economy's based on, the smartass answer is "baseball"  But the honest answer is I'm not really sure. I know there was a push for us to be a "biotechnology silicon valley" between Wash U med school, Monsanto, and some other things like that. Wikipedia might have a better answer.I'd never heard that St. Louis weathered the Great Recession well...but it also happened right when I was starting my full-time career, so I really didn't have any experience to base what I saw on. Either way, sometimes even in strong seller's markets, houses stay on for a while for whatever weird reason.
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Apr 13, 2016 02:19
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mastershakeman posted:Unfortunately, anywhere near transit or a major city (aka jobs) is hot hot hot so the only way to avoid that is to buy an in exurb which most people don't want to do. As someone who bought in an exurb (10min walk + 1 hr express train commute), it does suck a good bit. At the same time, I have a lot with a quiet, private backyard against a half-acre of owned forest, and I have a 4 bedroom + den house for the price of a 2 bedroom condo.
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Apr 13, 2016 03:55
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swenblack posted:The easiest way to tell a bubble is to look for unexplained growth. Look at this chart of the Case-Shiller Index for Miami. Home prices almost tripled over the course of five years. Compare that to Denver. St. Louis actually has a fairly large federal government sector, which might explain why it weathered the Great Recession so well. Well if we're being Chartists, what do you make of this one? https://research.stlouisfed.org/fred2/series/SDXRSA
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Apr 13, 2016 04:19
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baquerd posted:As someone who bought in an exurb (10min walk + 1 hr express train commute), it does suck a good bit. At the same time, I have a lot with a quiet, private backyard against a half-acre of owned forest, and I have a 4 bedroom + den house for the price of a 2 bedroom condo. Depends on the other factors then, like your spouse's commute, kids, school quality, and whether you like outdoorsy type pursuits that need tons of space. There has to be a family benefitting dramatically from the bigger house all the time for it to be worth it imo. Depends also whether you need to do a commute like that every day.
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Apr 13, 2016 09:24
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Celador posted:The majority of the country seems to have a sane real estate market right now, which is why when I read about certain locations being described with statements like "all cash", "multiple offers first day of listing, over asking price", "waiving contingencies/inspections" my gut is to recommend people to stay away from house buying and just rent until that location cools off or they can move to someplace that isn't ridiculous. There is no reason to overpay for a lovely house just because the current location's market is "booming" because we all know how that worked out pre-2008. I've been watching the NOVA market in the DC metro area for the past 4 months. It's my first time looking/buying a house but from what I've observed, the existing housing market inventory is moving rather slow. Contrary to media telling me this year is housing in hot. The Fairfax market seems overpriced at roughly 400-425K when they should probably be price around 350-375K. Not to mention with like six listed houses all within 2-4 miles of each other, the price is barely pushing down. If millennials are suppose to be hot buyers, they are probably looking for condos closer to DC it seems as there is not a lot of action happening in the suburbs. My gut instinct is telling me millennials are too burdened with debt to finance housing and the price needs to come down further. Since this is the DC metro housing market, all reasonable sense should be tossed out of the window. At this rate, I dont think I'll see something I like until Fall or maybe even next year.
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Apr 13, 2016 11:22
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I have a real estate question maybe some could help out with? We need to sell our house to move for a new job. Haven't put it on the market yet, but already have someone extremely interested in it. They came to look at it yesterday and scheduled an inspection. The other party has a realtor, but we don't have one yet. Is it possible to find a realtor to work for a smaller commission to review contracts and talk to the other agent on our behalf - i.e., there would be no listing, no showings, etc. Is that a thing? We thought about hiring a real estate attorney to fill this role, but that doesn't seem to be a common practice here (Manhattan, KS).
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Apr 13, 2016 15:13
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newts posted:I have a real estate question maybe some could help out with? Well you can either try to get the showing agent to do the whole thing for a reduced rate, (3% maybe?) but they will not represent your interests, or you can hire your own agent and get them to give you a reduced rate (5% total is common). I assume the agent bringing you the buyers is expecting to get paid? Depending upon the price of your house an attorney may be cheaper but they will not be able to advise you on the sales price being reasonable. You can always pay $100 for an appraisal or have an agent come out for a listing pitch they will bring you comp prices. It is all a turkey shoot happy hunting. If you close at a title company that is legitimate there is not much that get you screwed to badly on. They tell you how big the check is before you sign.
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Apr 13, 2016 15:38
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What's the best way to pick a home inspector? What sorts of questions should one ask of them? The city I'm looking in (Toronto) has a very well-known and well-regarded firm (Carson-Dunlop), but I figure I should at least look around before committing to them. (I didn't see this in the OPs, apologies if I missed it.)
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Apr 13, 2016 16:08
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newts posted:I have a real estate question maybe some could help out with? I would just try to find a real estate attorney personally, even if its not common practice. Edit: Or you could google search for reduced fee or discount commission realtors near you, or try hungryagents.com Hashtag Banterzone fucked around with this message at 16:19 on Apr 13, 2016 |
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Apr 13, 2016 16:16
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Subjunctive posted:What's the best way to pick a home inspector? What sorts of questions should one ask of them? I talked to friends who had bought a house, asked them if they had any recommendations, and then I also asked my realtor for recommendations. There was one person in common between both lists, meaning he was good at explaining things to the buyer, and thorough enough to please the (more experienced with these kind of things) realtor. I was pretty happy with him too.
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Apr 13, 2016 16:21
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Elephanthead posted:Well you can either try to get the showing agent to do the whole thing for a reduced rate, (3% maybe?) but they will not represent your interests, or you can hire your own agent and get them to give you a reduced rate (5% total is common). I assume the agent bringing you the buyers is expecting to get paid? Depending upon the price of your house an attorney may be cheaper but they will not be able to advise you on the sales price being reasonable. You can always pay $100 for an appraisal or have an agent come out for a listing pitch they will bring you comp prices. It is all a turkey shoot happy hunting. If you close at a title company that is legitimate there is not much that get you screwed to badly on. They tell you how big the check is before you sign.
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Apr 13, 2016 18:27
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I'm pretty sour on real estate agents, myself, having dealt with a few bad ones and one that was at best "OK". They charge far too much money for what services they actually provide. I think hiring a lawyer for the legal stuff and doing the rest on your own is the way to go (that is, IF you have gone thru the process before and know what to expect on both ends). The only people I see that routinely recommend using real estate agents are other real estate agents.
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Apr 13, 2016 19:04
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newts posted:I have a real estate question maybe some could help out with? Edit: I'm an idiot and thought you were buying, disregard antiga fucked around with this message at 02:14 on Apr 14, 2016 |
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Apr 13, 2016 20:34
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^^ Isn't the primary reason of a realtor to solicit a buyer anyways? Since you've got one lined up, there's no reason to cut them in for hardly any work, especially when what you really need can be covered by an attorney. Honestly, I thought realtors purposefully steered their clients away from for sale by owner to homes covered by their cartel, hence the primary reason everyone still uses them in the age of zillowDead Pikachu posted:St Louis is going through a house shortage. Solution is clearly that you guys just need to rebuild Pruitt-Igoe
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Apr 13, 2016 20:58
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Celador posted:I'm pretty sour on real estate agents, myself, having dealt with a few bad ones and one that was at best "OK". They charge far too much money for what services they actually provide. I think hiring a lawyer for the legal stuff and doing the rest on your own is the way to go (that is, IF you have gone thru the process before and know what to expect on both ends). My attorney advised us to actually use the seller's agent as our buyer's agent solely to make the deal go smoother since the agent would pressure the seller extra hard to get the deal done due to the even bigger commission. I thought it was absolutely ridiculous and increased our liability (the opposite of what an attorney should do) but it seems to have worked.
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Apr 13, 2016 21:52
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Thanks for the advice, all! I think we will hire a lawyer to review the final paperwork. We will try to handle the price negotiations and any fixes ourselves.
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Apr 13, 2016 22:35
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chupacabraTERROR posted:Well if we're being Chartists, what do you make of this one? https://research.stlouisfed.org/fred2/series/SDXRSA
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Apr 14, 2016 00:20
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OSU_Matthew posted:It's not the worst, but it's pretty bad. If that's the major stuff, I shudder to imagine the hidden stuff, especially on the electrical side. The plumbing in the basement bathroom may not be properly vented. The city inspection didn't notice anything wrong with it so we can probably let it slide. We got a response back from the sellers, saying they'd only pay half for the roof, they wouldn't fix the bathroom and they'd fix the electrical, but didn't say the'd get an electrician to do it. We sent them a response right back and said, no, we're not helping them pay for a roof, and they need to get an electrician to ground the plugs and show us a receipt to prove that an electrician did it. To help compromise we told them we will fix the bathroom, and couple of other minor things we had as "throw away" things. They have until Friday at midnight to respond to us, and our realtor is going nuts because they waited until the last day to respond the first time (we had to get an extension). Hopefully we can come to an agreement, I really don't want to have to find another house.
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Apr 14, 2016 13:40
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OSU_Matthew posted:^^ Isn't the primary reason of a realtor to solicit a buyer anyways? Since you've got one lined up, there's no reason to cut them in for hardly any work, especially when what you really need can be covered by an attorney. Honestly, I thought realtors purposefully steered their clients away from for sale by owner to homes covered by their cartel, hence the primary reason everyone still uses them in the age of zillow Realtors steer buyers away from fsbo homes because the price doesn't have the buyer agent commission built in unless otherwise noted. It puts them in the awkward position of explaining to the buyer that they'll have to pony up the extra cash or negotiate that in with the seller. I suppose the other part of it is that they may have to do more work if the seller is clueless.
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Apr 14, 2016 15:55
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I started looking into what needed to happen in order to buy a new house, while still in possession of the current house and got a few different answers (or I'm getting confused and it's actually all the same thing). What's the best course of action? What I found so far was: 1. Have to sell the old house before you can get pre-approved for the mortgage on the second house, and pray the timing works out on selling the old home and getting the new. 2. Have to get a bridge loan in order to cover the mortgage of the old home and the new mortgage of the new home until you can sell off the old home and get a long term mortgage for the new home. But you end up having to pay quite a bit if fees and higher % interest. 3. There is already something in place in the loan paperwork for a new mortgage about this scenario, and you just need to fill it out for pre-approval and you don't need to do a bridge loan/worry about timing of selling old house and getting new house.
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Apr 14, 2016 19:04
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