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How do “sale by owner” transactions work anyway - without an agent who handles the paperwork and such? I’ve always avoided those listings
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Apr 25, 2021 22:57
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MorrisBae posted:How do “sale by owner” transactions work anyway - without an agent who handles the paperwork and such? Good ones have a real estate attorney that is handling it, bad ones it's a slog / nightmare. You personally should also have a real estate attorney (preferred) or a realtor (who will likely hate the FSBO listing deeply.)
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Apr 25, 2021 23:01
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MorrisBae posted:How do “sale by owner” transactions work anyway - without an agent who handles the paperwork and such? Realistically you want to hire a real estate attorney who basically handles all that. Edit: beaten PageMaster fucked around with this message at 23:04 on Apr 25, 2021 |
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Apr 25, 2021 23:02
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MorrisBae posted:How do “sale by owner” transactions work anyway - without an agent who handles the paperwork and such? Spoiler, the agent fills in four blank boxes on the paperwork and relies on the a title company to do the real work.
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Apr 25, 2021 23:02
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MorrisBae posted:How do “sale by owner” transactions work anyway - without an agent who handles the paperwork and such? They're a huge red flag of someone who has cheapness brainworms in very interesting ways. It's always been like that, but even more so now with the advent of discount brokers.
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Apr 25, 2021 23:04
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My grandmother had to move to assisted living and they sold her condo. 50k over asking, no inspection, all cash. For a 2br 800sf condo
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Apr 25, 2021 23:06
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My parents FSBO'd their house, but the asking price was also like $35-40k and realtors didn't have a huge interest in it. Even the one they were using to buy their next place. Po dunk Florida: not even once.
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Apr 25, 2021 23:16
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I'm curious as to when all the newly-bought fixer-uppers are going to go back on the market. Anecdotally, I know a good dozen people who bought in 2020/2021 with plans for total house remodels, and are truly horrified to learn that their budget won't even cover a kitchen refresh. Quite a few are crossing their fingers for good value growth over the next year or two so they can sell and buy newer properties instead. I think the next big move in wealth disparity is going to be a drop in C/D values and skyrocketing A/B values as renovations become out of reach for all but the very wealthy.
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Apr 25, 2021 23:34
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GoGoGadgetChris posted:I'm curious as to when all the newly-bought fixer-uppers are going to go back on the market. Anecdotally, I know a good dozen people who bought in 2020/2021 with plans for total house remodels, and are truly horrified to learn that their budget won't even cover a kitchen refresh. Quite a few are crossing their fingers for good value growth over the next year or two so they can sell and buy newer properties instead. I will never sell this house just to avoid having to go through this house-buying process again. I do agree though and see the same thing (admittedly with no evidence) happening just because I feel like a lot of people buying are doing it because the rates are low enough that they either can, or feel like they can, buy above their usual pay-grade. Edit: Homes are the new PS5 or graphics cards I hope there aren't scalpers in that line. PageMaster fucked around with this message at 00:03 on Apr 26, 2021 |
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Apr 25, 2021 23:52
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I mean, you guys know this situation won't last forever, right guys?
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Apr 26, 2021 00:21
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Residency Evil posted:I mean, you guys know this situation won't last forever, right guys? Which situation?!
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Apr 26, 2021 00:21
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GoGoGadgetChris posted:Which situation?! Whatever has lead to this thread being the busiest one in BFC.
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Apr 26, 2021 00:27
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I mean the video card discussion isn't much better, it's just in sh/sc instead.
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Apr 26, 2021 00:35
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GoGoGadgetChris posted:I think the next big move in wealth disparity is going to be a drop in C/D values and skyrocketing A/B values as renovations become out of reach for all but the very wealthy. This seems likely once everyone internalizes just how expensive remodeling/additions are right now. Residency Evil posted:Whatever has lead to this thread being the busiest one in BFC. Of course. But like every other situation......who knows when it actually ends.
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Apr 26, 2021 00:37
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Motronic posted:Good. That place has one or more problems that are worse than the ones I could determine from the pictures based on its sales history. Far more than just a maintenance debt issue. You made the right decision. We were kind of talking ourselves into it but I was also very hesitant because of the issues. I was also trying to talk myself out of even bidding on it. We are a family of 4 now and we’ve gotten by in a small house but with our youngest mobile now we’ve rapidly outgrown this place. I see our options as buying now but over paying unless we move farther out, continue living in this place but going crazy with the lack of space, or rent out our home to generate some income and move into a larger rental in the area until things calm down so we can buy another place. I’m a littler worried about FSBO because they are definitely being cheap. They have a 2% buyer agent commission, lowest I’ve seen so far, and are doing to all themselves with no lawyer. I asked my agent what are the pitfalls and it’s all around their inexperience so I’m cautious releasing any earnest money for them up front. Edit: in Seattle people are throwing stupid money at houses and I still see people remodeling. These people have obscene amounts of money or are blowing their savings/investments to get in to a place now. Glumwheels fucked around with this message at 00:49 on Apr 26, 2021 |
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Apr 26, 2021 00:41
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Glumwheels posted:I’m a littler worried about FSBO because they are definitely being cheap. They have a 2% buyer agent commission, lowest I’ve seen so far, and are doing to all themselves with no lawyer. I asked my agent what are the pitfalls and it’s all around their inexperience so I’m cautious releasing any earnest money for them up front. So many red flags. They are so cheap they're basically gonna cost whatever sucker a ton of time and money to do both sides of the paperwork, probably have some insane demands that get pulled out at the last minute, have zero understanding of the process so everything will be a fight, may not even have proper title to the place, etc, etc, etc. Just move on. I'll repeat, for you this time: don't bottom feed the market. This is a defect just as bad as any other. Imagine how the place has been maintained if they're this cheap.
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Apr 26, 2021 00:45
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One attorney I talked to had a extra fee if the seller was FSBO to cover the extra work they end up doing.
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Apr 26, 2021 00:49
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By the by, is there a house selling thread or resource that people recommend? It looks like my dad may need to move to assisted living in the next year, so I’m going to start looking at his home sale shortly after I close on my purchase 
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Apr 26, 2021 00:50
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be good and try hard! 
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Hug in a Can posted:By the by, is there a house selling thread or resource that people recommend? It looks like my dad may need to move to assisted living in the next year, so I’m going to start looking at his home sale shortly after I close on my purchase Here or the ownership thread are the two main ones for BFC. I don't think there's a dedicated selling thread otherwise, but feel free to post your stuff in either of them.
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Apr 26, 2021 00:51
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Officially joined the idiot parade today; 35k over list /appraisal + 15k on a what seemed to be well maintained 1950s ranch. Real estate agent assured me it was a strong offer for where I'm buying in the Midwest. We'll see!
ho fan fucked around with this message at 00:57 on Apr 26, 2021 |
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Apr 26, 2021 00:53
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Hug in a Can posted:By the by, is there a house selling thread or resource that people recommend? It looks like my dad may need to move to assisted living in the next year, so I’m going to start looking at his home sale shortly after I close on my purchase You’re soaking in it.
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Apr 26, 2021 00:55
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Motronic posted:So many red flags. They are so cheap they're basically gonna cost whatever sucker a ton of time and money to do both sides of the paperwork, probably have some insane demands that get pulled out at the last minute, have zero understanding of the process so everything will be a fight, may not even have proper title to the place, etc, etc, etc. The house looks very well cared for, they did annual inspections on the HVAC and the house inspection report they provided was mostly clean with minor fixes. They had done some work to it over the years (granite tile counters & new carpeting) but it’s mostly original. They want to move down to California and be close to their daughter who is moving to the Bay Area. I think they’re trying to scrape every penny they can to buy a place down there but they’re still making a huge profit off the house. They are cheap too because the owner told me her husband was a handy man and built things around the house and storage in the garage. Edit: I think we will still put an offer but something realistic that we’re comfortable with. It will probably go for way more and that’s ok if we don’t get it. Glumwheels fucked around with this message at 01:04 on Apr 26, 2021 |
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Apr 26, 2021 01:00
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Apr 26, 2021 01:03
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pmchem posted:yes. Thanks for this. Really good stuff. I'd love to keep this discussion going as I think it's really interesting to monitor both the RE and commodity markets right now. Things are moving so fast. Yeah overall it just seemed blatantly nonsensical to measure these equity draw downs in terms of nominal value when the quantities to be compared between 2008 and 2021 are... incomparable. Compounded with the contextual situation with rates, the pandemic, and rising asset prices everywhere it just seemed silly to post a one-off graph implying LOOK, 2008 ALL OVER AGAIN with absolutely no context or development. I might as well just drop off a graph showing my house is up 10% YOY, as if we learn absolutely anything from that.
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Apr 26, 2021 01:31
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Sundae posted:Here or the ownership thread are the two main ones for BFC. I don't think there's a dedicated selling thread otherwise, but feel free to post your stuff in either of them. PCjr sidecar posted:You’re soaking in it. Thanks, guess you all will be seeing a lot of me in the next few months!  Closing is still set for 5/27 for me, then we'll start fixing up dad's place for sale. I'm about to learn how to paint walls in very neutral shades!!!
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Apr 26, 2021 01:46
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Hug in a Can posted:Thanks, guess you all will be seeing a lot of me in the next few months! Hold off on buying paint until you talk to us.
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Apr 26, 2021 01:57
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hobbez posted:Thanks for this. Really good stuff. I'd love to keep this discussion going as I think it's really interesting to monitor both the RE and commodity markets right now. Things are moving so fast. Yeah. Re: commodities. I presume you're thinking lumber as it's been a hot topic lately and mentioned previously in this thread. Certainly relevant to the housing market. The most convenient way to monitor its current price is by firing this up (you can see all other commodity front-month futures here, too): https://finviz.com/futures_charts.ashx?t=LB&p=w1 (edit: pasting in a pic of the plot because it's ridiculous --)  It's a grim situation, for sure, and will take months to unwind, likely well into 2022. The curve is in backwardation, with november futures being significantly cheaper -- but still super high. CME prices for the curve are here: https://www.cmegroup.com/trading/agricultural/lumber-and-pulp/random-length-lumber.html and if you're really "board" you can read all about lumber future contracts here: https://www.cmegroup.com/trading/agricultural/files/AC-243_RanLenLumberBrochure.pdf (not that anyone here is gonna deal with the carry cost of 110,000 board-feet of 2x4's) For daily lumber chat, two of the best guys on twitter are these guys: https://twitter.com/2x4caster/status/1385963136105291779?s=20 https://twitter.com/LumberTrading/status/1385660044801298435?s=20 Anyway, the tl;dr for anyone wondering why lumber has been a big deal is that sawmills shut down due to the pandemic, and while wood production has recently recovered, https://fred.stlouisfed.org/series/IPG321S ...the supply disruption coincided with an incredible demand surge and all sorts of other supply chain disruptions. pmchem fucked around with this message at 02:35 on Apr 26, 2021 |
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Apr 26, 2021 02:22
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When you get a mortgage, does the bank immediately pay the seller in cash for the total value the house was sold for?
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Apr 26, 2021 06:41
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human garbage bag posted:When you get a mortgage, does the bank immediately pay the seller in cash for the total value the house was sold for? The seller gets the remaining after closing costs, the remainder of their mortgage, and any other liens are paid off.
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Apr 26, 2021 07:04
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MorrisBae posted:How do “sale by owner” transactions work anyway - without an agent who handles the paperwork and such? Every FSBO is a different beast, and I'll agree with Motronic that 90% are likely a shitshow. THAT BEING SAID I've bought two homes and sold one without involving real estate agents at all. In those cases, my wife and I already had a real estate attorney of our own before we began searching and all documents were made with our attorney and the other party's attorney communicating and writing things up. I was actually quite happy with the whole thing back then because I hate real estate agents with a burning passion, and being forced to use one here in California was loving terrible.
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Apr 26, 2021 08:11
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Anonymous Zebra posted:Every FSBO is a different beast, and I'll agree with Motronic that 90% are likely a shitshow. THAT BEING SAID I've bought two homes and sold one without involving real estate agents at all. In those cases, my wife and I already had a real estate attorney of our own before we began searching and all documents were made with our attorney and the other party's attorney communicating and writing things up. I was actually quite happy with the whole thing back then because I hate real estate agents with a burning passion, and being forced to use one here in California was loving terrible. I've sold houses like that too. Never once was the term "FSBO" used, they were not "marketed" it was a "hey, I'm moving/this is done, you said you wanted it. Do you still? Cool, who's your guy, I'll have mine call him." That's WORLDS different than actually marketing somethings FSBO, which, unless it's a piece of land, an odd/low value thing that agents don't want to deal with......well, the people left are too cheap to do things right or too arrogant to understand they need professionals involved. Except for that few that actually know enough to be a real estate agent already, understand the local process and customs and can work within that framework and hand this off to their lawyer and title company when the time comes. This person is probably a real estate developer or small homebuilder/larger remodeling contractor or maybe even an experienced flipper in my personal experience. Motronic fucked around with this message at 15:35 on Apr 26, 2021 |
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Apr 26, 2021 15:32
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I always thought FSBO meant that the buyer would still have an agent/attorney. Kinda makes me think I dodged a bullet on the house we were renting, because the owner's son/heir was going to sell it himself (he's a realtor) and forfeit the commission. (Which wasn't much of a selling point for us, of course, since we don't pay the seller's commission.) We still would have gotten an attorney even though the culture here is very handshake-agreement. He acts very aw-shucks but he's savvy, and I wouldn't feel comfortable going unrepresented. Navel-gazing question: When we rented, we were offered right of first refusal, and they were planning on listing the house at 1.1MM when we moved out. In this market I do believe it'd go for 1.2, probably closer to 1.3MM. If we had offered 1.1MM and they got better offers, would they have had to honor the ROFR? All the ROFR means is that they have to give us first consideration, not that they would've had to accept our offer, right?
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Apr 26, 2021 15:42
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We’re offering 30% over asking price for a house. We expected an answer last night night but they put us off till today. Now the seller is considering a lower offer because someone else wrote a sappy note. Fuuuuck, I hope my writing skills are enough to counter.
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Apr 26, 2021 15:49
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Maggie Fletcher posted:Navel-gazing question: When we rented, we were offered right of first refusal, and they were planning on listing the house at 1.1MM when we moved out. In this market I do believe it'd go for 1.2, probably closer to 1.3MM. If we had offered 1.1MM and they got better offers, would they have had to honor the ROFR? All the ROFR means is that they have to give us first consideration, not that they would've had to accept our offer, right? Probably not. "ROFR" doesn't mean much unless it's in a contract and defined in that contract or by your state laws. But it is generally accepted to mean that if someone else also wants the thing you have the right to match their price and buy it. Not that you get to name a price, or that other people can't ask to buy it for more than the price you've been offered thereby running it up.
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Apr 26, 2021 15:50
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The FSBO talk reminded me that I wish I was poking around in this thread when we saw this place like a month and a half ago: https://www.zillow.com/homedetails/428-N-Broadway-Pitman-NJ-08071/38803486_zpid/ When we toured the place, it was FSBO. Kind of adorable, right? We absolutely fell in love with the main floors. Tons of space, lots of old-timey feel without anything seeming as though it was falling apart, etc. We were positive we were putting an offer down. Then we went into the basement. Check out the basement pics in that listing. Looks weird, right? Why the hastily installed carpeting? Why has everything also been hastily painted tan? When we saw the basement, there was no carpet or paint. There was, however, water pooled at the base of every wall. Water had also soaked into a number of the beams, including along one entire side of the house (you could see the transition from dark, wet wood to light, dry wood as you looked further away). The slab floor was not just cracked but actively buckling, with huge dips and peaks. Wooden pallets were littered all over the place, seemingly to cover up the worst spots (and not doing a very good job of it). Evidence of infestations was all over the place. We basically ran out of there and have since referred to it as Bummer House. When the seller asked our agent what we'd thought of the place, our agent told him point-blank: That basement's a total loving disaster. The seller's response was to hire his own agent to help sell the place. The agent took better photos (the ones you see on the listing), but also told the seller, hey man, do something about the basement. The seller's response is what you see there: He quickly put down a bunch of carpeting, and painted the beams so you wouldn't see the infestation/dampness. We actually sent a contractor over to check the place out after the listing went up with the new photos, because we were curious. Was there any chance at all this guy had actually done anything beyond the hilariously lovely cover-up? Of course not. The contractor's response was "run." Carpet was soaked through, and the whole place still screamed disaster waiting to happen. It was pending within three days. Toaster Beef fucked around with this message at 15:53 on Apr 26, 2021 |
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Apr 26, 2021 15:50
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Good chance that the bulk of the problem with that basement are those gutters and that back patio thing with negative slope towards the house. Why people live with poo poo like that (the place must have always smelled damp unless specifically prepared for people to tour it) is just beyond mind boggling to me.
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Apr 26, 2021 15:55
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A house went up for sale in our neighborhood, in the first phase (2016). Same model as ours, without any upgrades whatsoever - basically a stock house. Bought it for $363k in late 2016, they're asking $595k now, and demanding only cash offers and no contingencies. I've never seen a more "let's try and cash in on this market" move.
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Apr 26, 2021 16:19
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Guys I think I found The Worst Flip. It is under contract - whoever is buying it is a complete idiot and/or is from the Bay Area. https://www.zillow.com/homedetails/109-Biddle-Ave-Pittsburgh-PA-15221/11342693_zpid/ The fact that they managed to make the interior of an 1880's Queen Anne look like that of a low-end tract house is only part of the egregiousness of the listing - it's the first house I've seen that beaks the zestimate history graph and the price history is a loving trip. Another thing to note: it is not actually in Pittsburgh, it is in an adjacent municipality that is corrupt and bankrupt and has stupid high property taxes and the worst schools.
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Apr 26, 2021 16:27
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Omne posted:A house went up for sale in our neighborhood, in the first phase (2016). Same model as ours, without any upgrades whatsoever - basically a stock house. Bought it for $363k in late 2016, they're asking $595k now, and demanding only cash offers and no contingencies. I've never seen a more "let's try and cash in on this market" move. Are they likely to get it? When I saw a similar house to mine sell for +20% less than 3 years old, I was tempted to cash out and move as well, but replacing the house is subject to the same market craziness, so I'm just staying put. The only thing I don't have at this house I wish I did was a little larger lot, and a 3 car garage. Queen Victorian posted:Guys I think I found The Worst Flip. It is under contract - whoever is buying it is a complete idiot and/or is from the Bay Area. I got to the picture of the fridge in the kitchen and couldn't look anymore. skipdogg fucked around with this message at 16:31 on Apr 26, 2021 |
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Apr 26, 2021 16:29
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Queen Victorian posted:Guys I think I found The Worst Flip. It is under contract - whoever is buying it is a complete idiot and/or is from the Bay Area. That graph really need to be saved for posterity: 
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Apr 26, 2021 16:52
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