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LOL new windows, water heater and roof repairs. Good luck.
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May 17, 2022 21:03
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Here in Boston they’d probably tank the deal out of spite just for being asked to make repairs on anything even remotely broken.
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May 17, 2022 21:24
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Yeah, assuming you're still talking about the Portland area those are likely quite a stretch. In Seattle we were happy that they fixed the carpet being loose in a few areas. Two of the windows had bad seals and we just had them fixed after we closed.
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May 17, 2022 22:48
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Doesn't hurt to ask for a credit but I wouldn't push for them to do those repairs themselves. Them covering closing costs and some other stuff in there might indicate they're looking to be rid of the place asap.
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May 17, 2022 23:18
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https://twitter.com/TheRealWBTC/status/1526572377756213248
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May 18, 2022 00:03
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If anyone else wants to save it on Redfin to see what it sells for: https://www.redfin.com/CA/San-Francisco/200-Judson-Ave-94112/home/1976022
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May 18, 2022 02:36
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https://www.redfin.com/CO/Denver/2787-S-Langley-Ct-80210/home/34167457 This house went up/down within a day and is listed “for comps only.” I’m curious: what does that mean?
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May 18, 2022 12:56
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Residency Evil posted:https://www.redfin.com/CO/Denver/2787-S-Langley-Ct-80210/home/34167457 It was sold as a "pocket listing" before it ever hit MLS; it's now being listed after the fact so the pricing is public and other houses in the area can use it as a comp in appraisals. (https://smartmlshelp.zendesk.com/hc/en-us/articles/360004330911-Comp-Only-listings)
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May 18, 2022 13:07
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Cassius Belli posted:It was sold as a "pocket listing" before it ever hit MLS; it's now being listed after the fact so the pricing is public and other houses in the area can use it as a comp in appraisals. Ah gotcha. I guess the MLS is the central resource for all home sales, and an appraiser wouldn’t use any other sources?
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May 18, 2022 14:59
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Involuntary Sparkle posted:If anyone else wants to save it on Redfin to see what it sells for: https://www.redfin.com/CA/San-Francisco/200-Judson-Ave-94112/home/1976022
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May 18, 2022 15:26
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Curious why people are against even asking for seller repairs? They can just say no to everything? For reference the total cost estimate is $12k. There's a shitload of media reports about a potential 5-10% correction this summer, which would be a larger loss to the seller's if they lose us as buyers. They are paying a little now to have us assume the risk of this summer. I don't think a correction this summer is very likely, nor do Black Knight/Core Logic (my opinion is heavily influenced by these 2), media reporting is saying more likely, and anecdotally from talking with our realtor - realtors they're interacting with are fearful of a correction this year as well so it's really just a difference in risk analysis. I'm thinking we get the hot water heater & roof repairs (they're very minor) and then windows are the wildcard. I'll lol if we get the AC.
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May 18, 2022 17:48
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Signed an offer on a house, for ~2% under asking price / 80k less than the last offer we made on another house. This one needs some work, but it's in a beautiful location and I'm really excited about it! Inspection this Friday, we'll see how that goes. Sellers had no other offers, which was surprising
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May 18, 2022 17:52
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1st_Panzer_Div. posted:Curious why people are against even asking for seller repairs? 1. In a multiple offer situation, the seller knows they can say no and you'll pay up or pound sand and they can just go with one of the other offers. In a more normal market, the buyer has more leverage here. 2. On top of organizing their move/purchase, the seller now needs to find a contractor that's available on short notice (i.e. a bad one) to fix problems they were living with in an asset they no longer want. They are incentivized to implement the cheapest, fastest solution that meets the minimum requirements. If a complicated issue is found, they are going to choose the option that leaves a more expensive problem in your hands. Both cons are minimized if you ask for credits for the repairs instead. You can find the people you want to do the work to your standards, and because losing a little bit of cash is easier than arranging a fix you're more likely to get more of what you're asking for.
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May 18, 2022 18:29
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Yeah, I'd rather get a 5k credit on a fix I know will take 10k to fix the way I want it done vs. have them repair it for 6k and deal with their lovely but good enough for now solution until I finally give in and pay the actual cost myself.
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May 18, 2022 20:08
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That's not how we asked for seller repairs, I haven't seen this portion as much (the lender doesn't care) so I don't know what's normal but: The seller can't back out of the offer at this stage - this is blanketly true for west coast states, AK, HI, & Montana. Our request has specific vendors we (/our realtor) selected to complete repairs as we want them completed. We are not asking the seller to fix things themselves or find a friend to half rear end it. If they counter they must provide the vendors they are considering, and receive our approval first. All of this is on addendums signed by all parties. We can't get anymore seller credit's, they're already paying all (eligible) closing costs.
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May 18, 2022 20:45
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Isnt it far more likely and/or usual to just knock money off the sale price for repairs? Then you can handle the repairs on your own schedule, pick your own vendors, etc? I guess great if you already have that all figured out, I've just never seen that before and would fear it would tank a lot of deals in this market. EDIT: Also my city is really making it a major pain in the rear end to switch over utilities ahead of time. I now need to get a meter read the day of my closing and call the water company, then send a copy of the warranty deed with the new owners name AND get his phone number and send that over for garbage apparently. What a load of poo poo.
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May 18, 2022 21:10
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1st_Panzer_Div. posted:The seller can't back out of the offer at this stage Sure they can, they can tell you they aren't fixing or crediting a drat thing if they want to. 1st_Panzer_Div. posted:We can't get anymore seller credit's, they're already paying all (eligible) closing costs. They could always agree to lower the sale price in lieu of repairs, which as a buyer I'd prefer over any solution contingent upon getting a repair done pre-close. I will agree that the market is definitely not as white-hot as it was last year - I'm actually seeing open house signs again, and a place that's a mirror image of my floorplan a couple miles down the road has been sitting on the market instead of selling the very first weekend at about 30% over what I paid for my place last year and the seller definitely has some incentive not to go back on the market because a deal that fell through always raises questions. IOwnCalculus fucked around with this message at 21:27 on May 18, 2022 |
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May 18, 2022 21:13
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The seller can't back out, but they can certainly tell you no to repairs and let you decide if you want to use your inspection contingency to tank the deal.
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May 18, 2022 21:13
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BaseballPCHiker posted:Isnt it far more likely and/or usual to just knock money off the sale price for repairs? no You can get seller credits, but changing the sale price is literally illegal, at least in most places, because so much depends on the sale price, in particular taxes. In California this would be permanently cheating the state out of some of its property tax, for example. e, I'll back off the characterization of "illegal" and say instead that you'd probably have to tear up the original sale contract and start over with a new sale contract, and I think even doing that could be against various regulations in various places although I'm not 100%. But cities, counties, and states have a vested interest in the parties not intentionally lowering the sale price while kicking cash money back and forth because higher sale price frequently means more taxes paid, and aside from that, reporting the fair market value of the house for others to use as comps is an important public good, too. Leperflesh fucked around with this message at 21:16 on May 18, 2022 |
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May 18, 2022 21:14
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Leperflesh posted:no I must not be following right. I thought this was all identified as stuff that needed fix during the inspection? Instead of asking for credits from seller to fix or to have them fix, you'd just adjust the offer price.
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May 18, 2022 21:16
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OK I'm having a moment of self doubt. Been mouthing off here and maybe I'm wrong. Lemme do a little research. e. I'm seeing a lot of negotiation advice that certainly implies you can lower the sale price. I guess it must be legal, at least in some places. This seems really bad from a gov't and reporting perspective. Hmmmm. e2. yeah I guess I'm gonna retract all that poo poo. Apparently you can totally renegotiate on price, at least sometimes. Leperflesh fucked around with this message at 21:26 on May 18, 2022 |
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May 18, 2022 21:19
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Leperflesh posted:
Contract amendments happen all the time and mean you don't have to start over. Sales price is absolutely a contract parameter you can so modify.
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May 18, 2022 21:22
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Why? Accepting an offer is not a completed transaction, nothing is set in stone until the whole deal is closed. The final transaction price still gets recorded as necessary. From a "legal document" perspective, they've even gone to great lengths to purposely remove the actual transaction price from the deed itself, at least here in AZ. Every deed is "For the consideration of Ten Dollars and other valuable consideration".
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May 18, 2022 21:22
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Leperflesh posted:e, I'll back off the characterization of "illegal" and say instead that you'd probably have to tear up the original sale contract and start over with a new sale contract, and I think even doing that could be against various regulations in various places although I'm not 100%. But cities, counties, and states have a vested interest in the parties not intentionally lowering the sale price while kicking cash money back and forth because higher sale price frequently means more taxes paid, and aside from that, reporting the fair market value of the house for others to use as comps is an important public good, too. None of this sounds right since up until you close, nothing is recorded with the government, and the contract can change with the consent of both parties. My understanding is that credits are more common because of some dumb psychological thing where they can think they sold at a higher price but are paying credits / closing costs which means they didn't actually sell at the higher price. And I guess maybe less paperwork. And not all places are like california where taxable value can only go up $fuckall every year without a sale.
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May 18, 2022 21:25
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Yeah you guys are all correct. I had this wrong. Mea culpa
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May 18, 2022 21:26
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Leperflesh posted:OK I'm having a moment of self doubt. Eh could just as easily have been me. I know from my previous purchase of a fixer upper, that while we could have asked for repairs before buying we didnt because:
Instead we got a inspection and beat them up on things like the boiler being on its last legs and got a lower sale price by about $30k. But this was back in the more sane days of real estate 4 years ago.
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May 18, 2022 21:27
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Tremors posted:The seller can't back out, but they can certainly tell you no to repairs and let you decide if you want to use your inspection contingency to tank the deal. It's this. And it's the law (in aforementioned states at least). Same state you can addendum to lower the sales price as well. No idea about east coast. Our sales price was modified once (slightly) already. We'll definitely take it if they lower the price instead of covering the repairs. As buyers, we're roughly approaching this specific house's negations like it's 2009, not a red hot 2022 market. And again - we aren't' asking them to do it, we're asking them to pay our selected contractors to do the work we want, leaving it open to counter proposals. We won't accept them fixing anything themselves.
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May 18, 2022 21:38
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As a seller, there's no loving way I'd get locked into using your contractor. I'll put money in the close to cover repairs, but anything beyond that it's up to you.
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May 18, 2022 22:39
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saintonan posted:As a seller, there's no loving way I'd get locked into using your contractor. I'll put money in the close to cover repairs, but anything beyond that it's up to you. Yeah that just seems like another failure point for both sides.
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May 18, 2022 23:31
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For what it's worth when we bought our house a few years ago in California we received a fairly chunky credit for various repairs. The county assessor wanted to use the total value, but when I sent over documents showing both credited money in the final agreement and money on repairs actually spent they lowered the assessed value.
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May 19, 2022 00:32
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I'd add that in this contracting environment you are not going to be able to get major repairs scheduled, far less done, before closing.
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May 19, 2022 00:45
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I’m currently renting a town-house and was sitting out back with my son today. There’s a unit two houses down that is owned by a guy that only lives there like 3 months out of the year. Today a car pulled up. Couple of young folks popped out (30s). Walked around for a bit looking at it then left. Came back about 20 minutes later and did the same thing. Then walked up to me and said “he the guy that owns that unit is a friend of a friend and we heard he’s selling it… but we can’t get in it. Any way we can come in your place and look around to see what it’s like?” WTF? I was just like “uh…. No.” They seemed embarrassed to have asked and then left. Like drat… that’s quite a bold ask.
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May 19, 2022 02:06
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So I think some major red flags just popped up for us today. We signed a contract in a new construction end of last July in SC, with the expected closing date of 4/30. There has been tons of delays, still don’t have the recorded plat, permits haven’t been submitted yet, it’s just carrying on and on. But, we kind of anticipated this last year with supply prices, lumber shortages, Covid, etc. So, for the most part we anticipated closing late 2022. Got an email yesterday from our builder rep (H&H Homes), that she resigned, and we have a new contact, today was her last day. So I called her today to thank her for everything and wish her luck. We are relocating from NJ so she did a lot of remote stuff for us, and she really was great even though she never had real good news for us. Half hour later I learned a whole lot about how things are going. Lots of management changes, lack of pressure or follow ups with the actual developer, lack of pressure on the town to approve the site etc. She was basically telling me without telling me, to get out. If we stick with it we probably won’t sniff closing until late this year or early 2023. If we bail we get a full refund (over $18K). But, we got in at a great price point and would be sacrificing tens of thousands if we started over based on the current market prices. We can afford it but we are sitting on a $342K house that’s already had 3 price increases on the base price so we’d be moving in with equity. I don’t know what to do, this hit us like a brick today and our heads are spinning.
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May 19, 2022 02:50
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You can of course try to negotiate a reduction in the sale price, and normally this is what you'd try to do in the case where a house under-appraises. But you will be strongly discouraged by both realtors who will make up all sorts of reasons as to why you should not reduce how much they'll be paid, they may even try to convince you that it's illegal.
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May 19, 2022 04:09
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Douchebag posted:Half hour later I learned a whole lot about how things are going. Lots of management changes, lack of pressure or follow ups with the actual developer, lack of pressure on the town to approve the site etc. She was basically telling me without telling me, to get out. If we stick with it we probably won’t sniff closing until late this year or early 2023. If we bail we get a full refund (over $18K). If you got in at a great price point on a shitshow, it's still a shitshow. You need somebody somewhat competent supervising the build. (I dream, I dream.) If the town hasn't even approved the site, you're probably longer than 2 years out, because that plus running water and sewer out takes time. I thought of a better way of putting it. If the town hasn't approved the site, nobody has any idea, at all, how long it is until move-in. A whole bunch of stuff can't even start until the site is approved. Arsenic Lupin fucked around with this message at 04:19 on May 19, 2022 |
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May 19, 2022 04:15
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on the other hand they might not build anything or jack up the price not sure how it works in SC but frequently in the hot Toronto/Ontario area market developers refuse to build unless they can make a profit and your signed contract is worth beans. Non-performance on their end might make more financial sense than actually trying to build something, and all they would have to do is return the deposit or at most pay a minor penalty (depending on the contract) but you'll be out of the market for a longer time. You'll definitely want more expert local advice, but as a random guy on the internet I would run away.
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May 19, 2022 04:19
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The new development is paved, sidewalks on, street lamps in, all utilities run to each plot. So thats the positive. The other delays and the other poo poo are what’s scaring me away. I’m leaning towards running but going to talk to the realtor representing me down there Friday first. At this point if I can get my $18K back, I can put that towards something either built or in progress. Not a patch of dirt with some pavement and sidewalks around it.
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May 19, 2022 05:05
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My take is that if someone that close to the project is telling you to run, run. I mean do your due diligence and verify what you can of what she’s saying but poo poo.
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May 19, 2022 05:11
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The developers would rather start fresh with houses and/or new buyers that will sell for a lot more for the same current costs, vs. actually follow through on all these contracts for houses that are for well below market. It's actively in their interests, right now, to scare away the buyers they have under contract, or even let the entire development project fail. That said, they're clearly scum. Don't buy a house from a shady bullshit company that is willing to intentionally sabotage their end of the deal. What kind of quality home do you expect them to produce for you? The instant equity you receive whenever this is all over could be less than the instant liability you'll have due to shoddy construction.
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May 19, 2022 05:23
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| # ? Jun 1, 2024 17:39 |
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1st_Panzer_Div. posted:Curious why people are against even asking for seller repairs? They can just say no to everything? For reference the total cost estimate is $12k. There's a shitload of media reports about a potential 5-10% correction this summer, which would be a larger loss to the seller's if they lose us as buyers. This probably varies by state but yeah, in our case, we asked for repairs during the inspection period while under contract. Our realtor told us there really is no harm in asking, because even if the seller said no we are still under contract for the original terms. No takebacks from the seller just for asking.
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May 19, 2022 05:47
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