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SpartanIvy posted:Don't fall for the widely spouted lies about how much house X income can afford. Do your own math and realize you don't want to be crushingly house poor. See this is why I'm having trouble believing people when they say there can't be another housing price crash because 'things are different' with underwriting standards being higher; I can see that banks are making loans to people who can't afford it, and that's not even to speak of these 'we'll make a cash offer on your behalf for a massive fee' companies among other shenanigans. The guy telling me to pay half my income for a dump is one of those people who believe that hoomez can only go up. Beef Of Ages posted:You're thinking about this correctly and your friend is a (financial) idiot. *taps thread title*
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Jul 21, 2021 18:07
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Lacrosse posted:See this is why I'm having trouble believing people when they say there can't be another housing price crash because 'things are different' with underwriting standards being higher; I can see that banks are making loans to people who can't afford it, and that's not even to speak of these 'we'll make a cash offer on your behalf for a massive fee' companies among other shenanigans. The guy telling me to pay half my income for a dump is one of those people who believe that hoomez can only go up. Things actually ARE different though. Inventories are so low, and actual available housing units so far behind demand that the additional inventory from a theoretical new mortgage crisis will likely be quickly absorbed by the market.
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Jul 21, 2021 18:14
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Lacrosse posted:See this is why I'm having trouble believing people when they say there can't be another housing price crash because 'things are different' with underwriting standards being higher; I can see that banks are making loans to people who can't afford it, and that's not even to speak of these 'we'll make a cash offer on your behalf for a massive fee' companies among other shenanigans. The guy telling me to pay half my income for a dump is one of those people who believe that hoomez can only go up. I feel like there is just so much money waiting to buy property for investment purposes and so many people who are desperate to own a home that as soon as prices drop a little bit they will quickly buy any available inventory. That being said I'm pretty drat stupid so who knows.
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Jul 21, 2021 18:15
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It looks like we'll be renewing our rental lease for six months after our house search has been fruitless after about three months of searching and visiting countless houses. We put two offers on properties and lost to one (very disappointing) and another (blessing in disguise). We anguished over one house, which I posted about here that had a myriad of issues and we ultimately decided to pass on (to our relief). Our lease term will be October 2021 - April 2022. Our pursuit will probably resume in February, which is obviously not ideal, but we're hoping fewer people will be vying for houses during the winter. Of course inventory will be down too so who knows what luck we'll have. If not, we'll have to renew for another six months. I'm stressed about how much higher house prices will climb over the next six months, and I hate the thought of pulling our kids out of school mid-year but it is what it is and we'll do what we need to do. We have been priced out of our own neighborhood that we rent in so we'll have to uproot our kids no matter what, unless prices somehow magically fall this winter. This whole thing sucks and has left us empty inside and completely worn down much like the majority of houses we have seen 
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Jul 21, 2021 18:25
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CongoJack posted:I feel like there is just so much money waiting to buy property for investment purposes and so many people who are desperate to own a home that as soon as prices drop a little bit they will quickly buy any available inventory. That being said I'm pretty drat stupid so who knows. I feel exactly the same way. Especially that last part.
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Jul 21, 2021 18:33
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Motronic posted:Things actually ARE different though. Inventories are so low, and actual available housing units so far behind demand that the additional inventory from a theoretical new mortgage crisis will likely be quickly absorbed by the market. If anything I think the current market has moved us away from a bubble because all the people from the last 10 years that got suckered into a terrible house purchase can now unload their property to someone without taking a huge loss on it because demand is so high.
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Jul 21, 2021 18:36
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Lacrosse posted:I'm paying $800 in lot rent plus $300 in utilities to live in a trailer park, so I'm pretty sure I could swing $1200, but not more than that, and I'd probably try to get a house with enough bedrooms to have a spare to rent out if I need it. My friend says I'm being unrealistic and will probably have to settle for half my take home pay in mortgage payments, but I'm not going to set myself up for failure like that. If that's what I have to do I'm better off just waiting to inherit my parents property. Houses are more expensive than you think. That $800 you pay in rent doesn't get you very far, because you have to pay property taxes, and maintenance costs will run about 1% of the home value per year, and then you'll have to pay for homeowner's insurance. Your utilities will likely be higher, because while a house may be more energy efficient they're probably bigger. Generally utilities are higher in houses, but not always. So best case we assume $1,200 is your max monthly "house" payment (ignoring utilities) then start subtracting from there. If we're talking a $250k house, that's a bit over 200/mo for maintenance. Assuming 1% property tax, that's another 200 off the top. Take out maybe $80/mo for homeowner's insurance as well. Now you're looking at about $720/mo for the mortgage itself. With a $60k down payment and 3% interest on a 30 year mortgage, you're actually looking at more like a $230k house. Closing costs will be probably $5k or so, though, so make sure you factor that in to your available cash. So long story short, you've probably done your math right, or close enough. There's a lot more to it, but those are the big ones to get you a ballpark and you can tweak things from there (e.g. HOAs, different tax rates, etc.). Your friend is a financial disaster waiting to happen. Continue to ignore them. Lacrosse posted:I've been a 'homeowner' in a trailer park where I have to fix all my own poo poo but don't get any of the benefits for owning. Although, I do have the trailer as an asset I can sell. No debt to speak of, not even CC debt, and I have a sterling credit score. Between the asset and a down payment assistance offered by a family member I could conceivably put 20% down on a $300k property, but the loan offer keeps talking about me only putting 3.5% down. I really don't want expensive PMI payments, but I guess this is just what everyone does now. PMI is temporary, interest rates are forever (unless you go FHA, in which case MIP is forever). You don't want to completely wipe out your savings to buy a house, because the second you get the keys something expensive will break. Make sure you keep an emergency fund available no matter what. If it's a struggle to put down 20% then figure out somewhere in between that and 3.5%. PMI is a completely sunk cost, you get nothing for it, but if you wait 2 years to save up more money for a down payment you may miss out on historically low rates, which could cost you more than PMI. As in, rates going up by even 2% could cost you more than PMI. All that said, the market is bonkers right now, and if the top of your affordability range is lower than the cheapest house available, you might have to sit it out for a while. Don't stretch yourself thin just to own a house, it's not going to end well. Lacrosse posted:Anyway I'll look into the CPA, I didn't know that was a thing (I am babby wrt home buying). Thanks for confirming my beliefs on what I can reasonably afford. We all were once. You'll sometimes see this thread yell at people, but that's typically because they're trying to do stupid poo poo and aren't listening to reason. You're approaching this correctly. Ultimately buying a house is a math problem that you can use to make an informed decision. You can still choose to make an irrational decision, but as long as it's an informed decision then the only person you can blame is yourself.
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Jul 21, 2021 18:53
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it would obviously be somewhat bad for the economy etc and a lot of poor people would get really hosed over but i am pretty sure some kind of mortgage crisis is the only way i'm buying property in greater Boston
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Jul 21, 2021 18:53
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Lacrosse posted:See this is why I'm having trouble believing people when they say there can't be another housing price crash because 'things are different' with underwriting standards being higher; I can see that banks are making loans to people who can't afford it, and that's not even to speak of these 'we'll make a cash offer on your behalf for a massive fee' companies among other shenanigans. The guy telling me to pay half my income for a dump is one of those people who believe that hoomez can only go up. I think there are 2 big things that are different this time: Credit worthiness is up. in 2003-2006 average score was between 600-630. In 2020 it was 680. So they may be giving out loans that are a bit too much for people but it is generally people who pay their notes. The other thing I think you are seeing is very few ARM since 30 year fixed loans have such low rates.
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Jul 21, 2021 19:25
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DaveSauce posted:All that said, the market is bonkers right now, and if the top of your affordability range is lower than the cheapest house available, you might have to sit it out for a while. Don't stretch yourself thin just to own a house, it's not going to end well. The market is so bonkers I'm not even sure if now is a good time to even be going through the process. Is it worth it to even get pre-qualified right now? I'm not expecting I'll find anything worth seeing for another year or two. Even if I could find a place in my price range there still are bidding wars, waiving inspections/contingencies, and buyer love letters that I'm not interested participating in.
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Jul 21, 2021 19:51
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Lacrosse posted:The market is so bonkers I'm not even sure if now is a good time to even be going through the process. Is it worth it to even get pre-qualified right now? I'm not expecting I'll find anything worth seeing for another year or two. Even if I could find a place in my price range there still are bidding wars, waiving inspections/contingencies, and buyer love letters that I'm not interested participating in. Depends on what you think your time is worth, and if you think you can keep a level head and stick to your budget. If you want to buy, and you've done the math to figure out what you can actually afford, it doesn't hurt to look around and give it a shot. You never know what you'll find, and if you're detached enough it'll be easy to walk away if you get bored or frustrated. Pre-qualification should cost you nothing, but also doesn't do a ton for you outside of giving you a warm fuzzy that banks might lend to you. A pre-approval costs a credit check and some paperwork (none of this should be paid for out of your pocket), but it tells you a LOT more about your credit-worthiness. Also occasionally sellers require a pre-approval letter to accompany any financed offers, so if you're seriously looking that's a good thing to have just in case.
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Jul 21, 2021 20:08
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Thanks for the info everyone, I think I'll go ahead and do the pre-approval thing. Worst thing that happens is I just keep renting.
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Jul 21, 2021 20:28
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I was saving money etc to buy in CO in May, but then the pandemic happened and I got laid off and I got a job in CA (where I live) rather than CO. We have real estate agents in CO who we've met a few times before and they've shown us houses, which we liked, before we were ready to buy. Since we have saved enough now we want to re-start the process again. I have some baby-level questions: -I have a CU I use here in CA. Should I ask them about loans? Or do I need to talk to a Credit Union in CO? I have had several recommended to me in CO. -After I start talking about the loan and organising paperwork. etc (We have over 20% saved but we also have a cash cushion, a housing fund cushion, moving costs, closing costs (10k???) saved, how long will it take to be approved for the loan? I assume I can't go 'round making offers until I'm approved. -after I get approved, how long do I have to make an offer? like 90 days or is it good for 6 months normally, or ? -After I make an offer on a house, how long should I expect it to take before I can walk into the house, because it's my house and I own it? -I am planning on, at some point, going to CO and staying in a hotel or whatever for a week or two and looking at houses. Am I loving stupid if I think I'd only need to do this a single time? -How much does an attorney cost currently, and how much are closing costs? -In CO (I'm not looking in Boulder, more like areas between boulder and denver) are people waiving inspections these days and offering over the asking price and all of that California poo poo?
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Jul 21, 2021 20:45
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A lot of these questions are making me think you didn't read the OP of this thread. I suggest you start there.
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Jul 21, 2021 20:47
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redreader posted:
Oh, my sweet summer child 
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Jul 21, 2021 21:03
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Johnny Truant posted:Oh, my sweet summer child This is an old saying from the south, right?
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Jul 21, 2021 21:11
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I asked the real estate agent at the end of 2019 'do people waive inspections here like they do in CA' and the agent was like 'that's crazy, I've never heard of that before'. That's why I asked. I don't have friends who buy houses non-stop and this is the thread for it, it would be cool if someone were to say 'yeah you need to actually move to CO and start renting and it'll take 6 months otherwise it's impossible' or 'yeah people do waive inspections here'. That would be helpful?
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Jul 21, 2021 21:13
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redreader posted:I asked the real estate agent at the end of 2019 'do people waive inspections here like they do in CA' and the agent was like 'that's crazy, I've never heard of that before'. That's why I asked. I don't have friends who buy houses non-stop and this is the thread for it, it would be cool if someone were to say 'yeah you need to actually move to CO and start renting and it'll take 6 months otherwise it's impossible' or 'yeah people do waive inspections here'. Did you read the OP? Also, waiving inspections can be pretty hyperlocal depending on where you're looking, and a lot has changed since end of 2019. I would ask a realtor of your choosing again and have a conversation about it. That being said, generally we're not going to recommend you waive that unless there is functionally no alternative in your area. How willing are you to take on a large financial risk and how dead set are you on a particular property? These questions will also matter.
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Jul 21, 2021 21:18
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One of the joys people get from staying in this thread long after they have closed on their home is from watching the reaction new buyers have as they realize just how insane the housing market is now. Don't take it personally, but it is something you could have picked up by reading the OP or several pages of posts.
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Jul 21, 2021 21:19
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Speaking of CO, the gently caress? https://www.zillow.com/homedetails/1800-E-Cedar-Ave-Denver-CO-80209/13347776_zpid/
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Jul 21, 2021 21:22
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GEMorris posted:One of the joys people get from staying in this thread long after they have closed on their home is from watching the reaction new buyers have as they realize just how insane the housing market is now. Eh, I feel like a person would have to follow the thread for quite a while. I think it's one of those, "wow, can't believe it's like this in <major city>, but surely my area can't be THAT bad!" Because honestly when you think about it, if you told someone this even 2 years ago that it'd get this bad they'd laugh because 2 years ago everyone thought it was wild.
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Jul 21, 2021 21:23
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After about a month of no decent houses in our area, one popped up last night that checks pretty much all the boxes except for a finished basement. It's near the top end of our budget, is it safe to assume that even if I was doing as much work as possible myself, I'd still be looking at $50k to finish out a 1400-1600 sqft basement?
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Jul 21, 2021 21:32
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It's ok. I read the OP and got fairly into this and read the thread a whole ton in 2019-2020. I made a whole email with good advice from the thread that I kept on adding to and sending to my wife. I'm coming back after a break. Since I didn't have enough money I was just looking at what there was and my wife and I were looking at places and saying what we liked and didn't like so we have a good idea now. People I know were screaming 'buy now for 5% down!, and I was like, 'gently caress off, I'm being careful'. I now wish I had bought then for 5% down lol. I read the last 4 pages but clearly to get any kind of context or whatever I should read more. For the record, I am not coming in here saying "gee I wish I could waive inspections! I love that!" which seems to be what people are thinking? IDK. That's the main reason I would never buy in the bay area, after 'it costs too much'. I am coming into this thread and asking a couple of questions after not looking at it at all for like 1 year. I wasn't aware that the OP had recently changed... oh I see, march 2018. I've got well over over 20% down for 550k, am looking at places that my real estate agent sent me which are between about 380 and 550k. I don't think the OP answers lots of my questions? It doesn't give timelines, just says the order in which to do steps. Inner Light posted:Did you read the OP? Also, waiving inspections can be pretty hyperlocal depending on where you're looking, and a lot has changed since end of 2019. I would ask a realtor of your choosing again and have a conversation about it. That being said, generally we're not going to recommend you waive that unless there is functionally no alternative in your area. I don't have any property in mind yet. I'm just starting the search again. I've read this thread before so the answer is, yeah I know it's a massive risk but right now I live in San Jose and my landlord, who is not healthy, has made it clear that his deadbeat grandchildren are inheriting the house I live in and I'd like to buy a place. We have 6 cats (so can never rent again), 2 kids and 2 bedrooms and we'd like a larger place. I'm not wide-eyed reacting to how crazy the market is. I am asking how crazy the market is and getting what seems to be hostile replies in this thread. Maybe I can't buy a house now! I've got the money that zillow/etc says I need, I'm asking here if that's a lie and people are offering like 200k over asking price. Nobody has answered that yet so I can only assume 'yes people are offering like 200k over asking price.' from the condescending replies. We're talking to the real estate agents next week some time, so yeah we're talking to them again but have not yet. edit: DaveSauce posted:Eh, I feel like a person would have to follow the thread for quite a while. I think it's one of those, "wow, can't believe it's like this in <major city>, but surely my area can't be THAT bad!" I'm in the thread asking how bad it is, and people are reacting saying 'I love it that people find it hard to believe how bad it is' without telling me how bad it is. Residency Evil posted:Speaking of CO, the gently caress? That's an amazing looking house and seems cheap for the price. A friend bought in San mateo (near San Francisco) and has 1400 sq foot and paid 1.2 million. She's a nurse, he's an engineer, they could only do it due to inheritance AND help from parents. redreader fucked around with this message at 21:43 on Jul 21, 2021 |
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Jul 21, 2021 21:37
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You asked a lot of questions, most of which are going to require kind of long posts sprinkled with "this varies by region" to answer. I think we're just trying to wrap our heads around where to start, as the questions require a fair amount of discussion to answer.
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Jul 21, 2021 22:01
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Residency Evil posted:This is an old saying from the south, right? Became popular due to.... Game of Thrones.
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Jul 21, 2021 22:04
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Almost all of the questions not answered by the OP are hyper local issues that no one here can answer and you should be asking your agent. If your agent can’t give you an answer or you can’t get them on the phone fire their rear end and get a new agent.
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Jul 21, 2021 22:04
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Prices spiked during the pandemic, and it seemed like the market was turning with the peak insanity being May, but with Covid cases shooting up everywhere again I wonder if the frenzy will return.
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Jul 21, 2021 22:09
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I wouldn't count on a week being enough time to find and make an offer on a house. You need your agent to make video tours with you, live, so you can ask questions while you're remote. Your credit union will need to answer if they're willing to finance a home in a different state, but I would guess no. Have you lived in the area where you are looking for homes before? If you're unfamiliar with the area you're probably best off getting a short lease/month to month on a place there so you can learn more about where you like and don't like before making a 30 year commitment.
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Jul 21, 2021 22:13
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redreader posted:That's an amazing looking house and seems cheap for the price. A friend bought in San mateo (near San Francisco) and has 1400 sq foot and paid 1.2 million. She's a nurse, he's an engineer, they could only do it due to inheritance AND help from parents. Yeah i'm not complaining about the price, I'm curious about the (almost) 50% price drop.
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Jul 21, 2021 22:13
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I just googled and read a couple of articles about less-popular places in colorado, and lol, one article had people who could afford a 450k house and had to only look in the 350k and below range, and another article had someone who could afford a 550k house but had to look for 425k houses and get an extra co-signer, because yeah it seems people are offering like 100k over right now and that doesn't even guarantee a house. I might have to wait a few years, until I'm probably in the same situation: I have more money and houses cost even more, lol. It does look like it's too crazy/dumb for me right now.
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Jul 21, 2021 22:17
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Residency Evil posted:Yeah i'm not complaining about the price, I'm curious about the (almost) 50% price drop. Curious. It was pending 3 weeks ago at 2.1M, and now it's back on the market at 1.2M. It's possible they found major issues during the inspection? No idea what 900K worth of issues could be though. Was it just insanely over priced for the area or is that normal?
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Jul 21, 2021 22:19
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skipdogg posted:No idea what 900K worth of issues could be though. They were asking in the mid $500s per sq ft when comparable homes currently for sale are in the $350-450 range per sq ft.
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Jul 21, 2021 22:27
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Lacrosse posted:Prices spiked during the pandemic, and it seemed like the market was turning with the peak insanity being May, but with Covid cases shooting up everywhere again I wonder if the frenzy will return. The market is still hot across the USA in tier 1 and tier 2 markets, I think. I found the market became craziest right around when vaccines started becoming available in a widespread manner. The reality hit that COVID would not be an extended multi-year lockdown, and people were OK with touring and strangers coming into their house for open houses and tours (to an extent, obviously supply is still severely depressed). Therefore if anything I think further outbreaks will pinch the market rather than accelerate it.
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Jul 21, 2021 22:29
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Some realtor fat fingered what should have been a ~92k price drop into a 902k price drop is my guess. *Taps thread title* Or maybe their original price was just excessively greedy? *Taps thread title*
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Jul 21, 2021 22:30
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skipdogg posted:Curious. It was pending 3 weeks ago at 2.1M, and now it's back on the market at 1.2M. It's possible they found major issues during the inspection? No idea what 900K worth of issues could be though. Not sure, it's not one of the houses we looked at because we don't want anything that needs a lot of renovations. The price is a bit high, but not completely insane for the current times, and it didn't seem 900k high. I'm wondering if it's about to sink in to the earth.
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Jul 21, 2021 22:31
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Residency Evil posted:Not sure, it's not one of the houses we looked at because we don't want anything that needs a lot of renovations. The price is a bit high, but not completely insane for the current times, and it didn't seem 900k high. I'm wondering if it's about to sink in to the earth. Not enough garage spaces for you sir
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Jul 21, 2021 22:33
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Residency Evil posted:Not sure, it's not one of the houses we looked at because we don't want anything that needs a lot of renovations. The price is a bit high, but not completely insane for the current times, and it didn't seem 900k high. I'm wondering if it's about to sink in to the earth. I'm worried about getting a house that needs a lot of work because 1.) lumber/building materials in general are still over inflated and 2.) any contractor that can swing a hammer seems to be booked out a year at least if not two.
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Jul 21, 2021 22:37
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skipdogg posted:Not enough garage spaces for you sir  I'm bummed that the other house had such a terrible first floor, because holy poo poo, it had room for 3 cars inside, 2 cars outside. And the guy was one of our people: Monterey Historics Poster and a 911.
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Jul 21, 2021 22:38
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GEMorris posted:Some realtor fat fingered what should have been a ~92k price drop into a 902k price drop is my guess. *Taps thread title* They fat fingered it. It now reflects 102k drop.
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Jul 21, 2021 22:51
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https://www.redfin.com/IL/Chicago/4607-N-Magnolia-Ave-60640/home/13394973 Speaking of needing a lot of renovations, this one is moderately interesting. It's being largely demolished in my area, sold Oct 2020 after a large and long set of price drops. They were originally looking for 800K in 2019, it sold for 412.5. Needs several 100k in work. It's too bad they didn't share more photos, and the video of the property is hidden behind MLS notes so I can't see it. Not zoned for large multifamily so it's going to be SFH or a townhome most likely.
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Jul 21, 2021 22:55
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