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Just put in an offer on 6 acres of vacant land for half the price it was listed at 475 days ago. Pushed off putting in the offer until after the rate hike for maximum leverage
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Jun 16, 2022 21:27
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GoGoGadgetChris posted:It's also summer and schools are out, so Supply should be shooting way up It's this. It's the same thing every year. This is how the real estate market works. People reading into this just haven't been paying attention to the market for long enough to recognize it. Family sized homes - the kinds you raise kids in and especially on the higher end of the market - overwhelmingly turn over in the summertime because the kinds of people buying and selling those homes organize their lives around keeping the school disruptions to a minimum for their kids and have the money to do so.
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Jun 16, 2022 21:43
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Pollyanna posted:I think demand is going to drop as interest rates rise and people figure that purchasing at current prices isn’t feasible or worth it. Then a whole bunch of sellers are going to get deeply hosed over. Anything could happen, but this seems to assume that sellers are forced to sell, while buyers can simply choose not to buy. In reality we're going to have tons of forced buyers this summer (job relocations, COVID babies are older and need more space, nobody wants to sit on cash or stocks, etc) as well as plenty of sellers who can choose not to sell. The would-be sellers might even choose to buy a second home and drive the supply and demand even further out of whack!
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Jun 16, 2022 21:47
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And we're near full employment and people are yanking money out of their stock market accounts (belatedly, locking in losses, lol) and capital has no safe harbor to seek other than real estate because bonds are also down. Interest rates really should be a drag on prices, but I am skeptical.
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Jun 16, 2022 22:16
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Motronic posted:It's this. It's the same thing every year. This is how the real estate market works. I dunno, inventory is much higher than it was this time last year in the areas that I'm still tracking.
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Jun 16, 2022 22:26
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Residency Evil posted:I dunno, inventory is much higher than it was this time last year in the areas that I'm still tracking. Okay, but its still following the exact same trend it always does with the exception of the year that was the beginning of a global pandemic and the country was in lockdown: 
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Jun 16, 2022 22:36
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Prices haven’t dropped yet in the mostly rural area I’m looking in outside of the houses that are wildly overpriced dropping their asking after sitting on the market for several weeks. But then other places that are also pretty overpriced are off the market in 2 days, so who knows. I just want something decent that isn’t a lovely split level design(that they’re still building new there) to come up at a somewhat reasonable price. We looked at a couple new build splits while I was out over the weekend and my girl wasn’t impressed at all. No storage, tiny closets, and expensive for what you’re getting. It’ll be fun to see if they can even sell them as rates go up.
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Jun 16, 2022 22:39
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Motronic posted:Okay, but its still following the exact same trend it always does with the exception of the year that was the beginning of a global pandemic and the country was in lockdown: I'll take the banme for this lmao
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Jun 16, 2022 23:24
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Motronic posted:Okay, but its still following the exact same trend it always does with the exception of the year that was the beginning of a global pandemic and the country was in lockdown: You're right the seasonal cycle, but it's worth pointing out that the graph you're pointing to also shows a pretty marked decrease in over-all inventory. That's a problem, and a pretty strong argument against prices cratering any time soon.
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Jun 17, 2022 00:03
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Cyrano4747 posted:You're right the seasonal cycle, but it's worth pointing out that the graph you're pointing to also shows a pretty marked decrease in over-all inventory. That's a problem, and a pretty strong argument against prices cratering any time soon. You're responding to a post I responded to that says: Residency Evil posted:I dunno, inventory is much higher than it was this time last year in the areas that I'm still tracking. I don't disagree with your statement at all Cyrano.
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Jun 17, 2022 00:21
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Motronic posted:You're responding to a post I responded to that says: Gotcha, thought we were still talking about the seasonal summer sell off.
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Jun 17, 2022 00:25
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Abyss posted:Good point, I'll bring that up with my agent to see if that's a tactic we can use. Regardless of what your agent says it IS a legal tactic, agents don't like doing it because it generates extra paperwork and comes across as assholery, but it's business, and it often works.
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Jun 17, 2022 01:40
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Leperflesh posted:And we're near full employment and people are yanking money out of their stock market accounts (belatedly, locking in losses, lol) and capital has no safe harbor to seek other than real estate because bonds are also down. Interest rates really should be a drag on prices, but I am skeptical. Rates have never really correlated with residential real estate prices in the past so I would not expect them to start doing so now.
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Jun 17, 2022 02:33
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therobit posted:Rates have never really correlated with residential real estate prices in the past so I would not expect them to start doing so now. https://www.urban.org/urban-wire/how-higher-mortgage-rates-have-historically-affected-home-prices They do correlate, but only weakly. I think it's because there are too many other factors that affect prices. The most dominant ones are obviously supply and demand, and those two things are also probably weakly correlated with interest rates. Inflation is, obviously, strongly correlated with higher prices. Leperflesh fucked around with this message at 02:44 on Jun 17, 2022 |
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Jun 17, 2022 02:42
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Maybe I'm muddying the waters a bit here, but if you're going to put in an offer with short expiration, maybe it should be a better offer. We had a couple short expiration offers, one 12hr and one 2hr. We kind of disregarded the deadline with the first one and negotiated with them a little to try and get more out of them, and the second one we didn't bother to respond. It would have needed to be over asking and from someone with the ability to make up an appraisal gap for me to take that one, and it wasn't. For reference, we bought in 2020 and sold in 2021, and the appraised value went up 3.7% in that time. We ended up selling at asking, which was the 2021 appraised value, and I don't think we reasonably could have gotten more. For the size/type/quality and location of our house, we were never going to get anyone who wasn't using FHA or VA, and none of those buyers had cash to make up an appraisal gap, nor would they have been required to and they'd have gotten back their $1000 of earnest money while we had to relist.
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Jun 17, 2022 03:05
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I'm closing on Wednesday, which means it's time to start to get my current place on the market. A couple months ago would have been perfect, but when is the optimal time to put it up do yall think? ASAP? Is there a point where it is 'too late' and I should just wait for Spring? My monthly out of pocket to maintain my current place (taxes, interest, insurance, etc) is only $500 a month so I don't mind waiting if it drives up the price by a good amount, but if it won't do that much than I just want to get it sold so we can put money into the new house. Looking at my market, I'm seeing some places stick around for 2+ weeks, even when they're cute. My place is kind of unique - the PO took a bedroom and turned it into a BEAUTIFUL bathroom, which means there are only 2 bedrooms, but it's 1200 sqft and has a large backyard. Basically, it's perfect for 1-2 people who want to live in the 'fun/music & bars' neighborhood in my city, but not the best for families. Which I think may make it take a bit longer to sell
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Jun 17, 2022 15:51
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Nothing to contribute because I'm a noob but I close on Wednesday as well 
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Jun 17, 2022 16:02
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Thom Yorke raps posted:I'm closing on Wednesday, which means it's time to start to get my current place on the market. A couple months ago would have been perfect, but when is the optimal time to put it up do yall think? ASAP? Is there a point where it is 'too late' and I should just wait for Spring? My monthly out of pocket to maintain my current place (taxes, interest, insurance, etc) is only $500 a month so I don't mind waiting if it drives up the price by a good amount, but if it won't do that much than I just want to get it sold so we can put money into the new house. This is a question for a local real estate agent who knows you local market. But in general you want to sell. Unoccupied properties are problematic. Your homeowner insurance is certainly an owner occupied policy, and as soon as you move that won't be correct anymore. When they find out you're not living there they will cancel the policy, which will make your mortgage lender freak out and you'll have to pay double/triple for vacant property insurance. So just skip all of this bullshit and sell the house you're not using anymore as soon as possible, especially in this market of historically low housing inventory.
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Jun 17, 2022 16:11
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Thom Yorke raps posted:I'm closing on Wednesday, which means it's time to start to get my current place on the market. A couple months ago would have been perfect, but when is the optimal time to put it up do yall think? ASAP? Is there a point where it is 'too late' and I should just wait for Spring? My monthly out of pocket to maintain my current place (taxes, interest, insurance, etc) is only $500 a month so I don't mind waiting if it drives up the price by a good amount, but if it won't do that much than I just want to get it sold so we can put money into the new house. Timing the market is never a good idea; this is, in general, the busiest time of year for real estate and not everyone has families that have to be considered. If you're expecting it to take longer, why not get started sooner?
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Jun 17, 2022 16:13
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Pollyanna posted:I think demand is going to drop as interest rates rise and people figure that purchasing at current prices isn’t feasible or worth it. Then a whole bunch of sellers are going to get deeply hosed over. Maybe all the young folk don't care or realize but outside of the last decade rates are still historically low at 5-6%. Here is a good short write up on the rates over the decades: https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed Or you can look at this graph: https://fred.stlouisfed.org/series/MORTGAGE30US Granted rates have changed very quickly this time, maybe that is different, maybe not. spwrozek fucked around with this message at 18:24 on Jun 17, 2022 |
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Jun 17, 2022 18:19
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I'd love to see that Fred graph with the Case-Schiller index alongside or rate of home price change.
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Jun 17, 2022 18:37
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carticket posted:I'd love to see that Fred graph with the Case-Schiller index alongside or rate of home price change. Definitely a lot more work needed to really compare. Home prices, size, wages, buying power (monthly payment ultimately), etc. I am not the person to figure that out.
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Jun 17, 2022 18:53
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I'm a week after closing and the new owner hasn't put utilities in her name. Is it a dick move to shut them off? Should I bother reaching out to her through the realtors?
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Jun 17, 2022 19:06
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Leviathan Song posted:I'm a week after closing and the new owner hasn't put utilities in her name. Is it a dick move to shut them off? Nope. Just do it. You should have done it days ago.
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Jun 17, 2022 19:12
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Leviathan Song posted:I'm a week after closing and the new owner hasn't put utilities in her name. You're only contractually obligated (if at all) to keep utilities on until closing. Once you've closed, and especially after the deed is recorded, call the utilities and tell them you're no longer the owner and are closing the account. If the buyer hasn't transferred it, that's their problem. Realistically you probably could have called a few weeks ago and scheduled a shut-off for 2-3 days after closing. This gives them a grace period to transfer it without interruption, as well as time for you to react and re-activate it in case closing is delayed or falls through. Honestly your realtor should have told you exactly what to do and when to do it here. But it's done so whatever! Leviathan Song posted:Is it a dick move to shut them off? Nah, a dick move would be sending them an invoice for the week worth of utilities that they've used (so far, could be more by the time the cancellation is processed).
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Jun 17, 2022 19:21
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I would have the utility accounts closed immediately (today! It's a long weekend), and then also today as a courtesy text your realtor and tell them you just did it and if they feel like extending a professional courtesy to their counterpart, that'd be a nice to let them know what you've just done so their client can immediately call the utilities and maybe not have them be shut off on them. e. to put it differently; you should not let the new owners mooch off you, but we live in a society and when it's minimal effort to be nice to a stranger, I think that's a good thing to do.
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Jun 17, 2022 19:23
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carticket posted:I'd love to see that Fred graph with the Case-Schiller index alongside or rate of home price change. 
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Jun 17, 2022 19:26
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DaveSauce posted:You're only contractually obligated (if at all) to keep utilities on until closing. Once you've closed, and especially after the deed is recorded, call the utilities and tell them you're no longer the owner and are closing the account. If the buyer hasn't transferred it, that's their problem. When I bought the property, the seller had shut the utilities off before closing and we had to scramble to get them turned on for the final walkthrough. I guess I overcorrected a bit. Fair enough.
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Jun 17, 2022 19:33
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Leviathan Song posted:When I bought the property, the seller had shut the utilities off before closing and we had to scramble to get them turned on for the final walkthrough. I guess I overcorrected a bit. Fair enough. Yeah I'd have given the seller poo poo over that. Around here the standard contract says that the seller has to keep utilities on until closing. Can't imagine that's much different throughout the country. I definitely would NOT close on a house that I couldn't walk through and confirm everything works... don't want to find out they shut off the water because of a huge leak or something. Also shutting off heat or something in say the dead of winter can be disastrous, so that's a pretty big no-no. Keeping things on as long as you have is more than generous. I mean, don't be a dick about it, but don't feel obligated to ask them first. Start the process to shut it all down, because that could take time, and throw a heads up their way (via your agent, I wouldn't work too hard to get in to contact with them).
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Jun 17, 2022 19:44
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Leviathan Song posted:When I bought the property, the seller had shut the utilities off before closing and we had to scramble to get them turned on for the final walkthrough. I guess I overcorrected a bit. Fair enough. It clearly depends on where you live, but in all of the houses we've bought and sold over the years, utility transfers were a function of paperwork or account setup and not actual connection or disconnection of service. You should be able to turn off your accounts so you're no longer being billed and let the buyer deal with backdating their account when they get around to it without actual stoppage of service.
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Jun 17, 2022 20:28
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Beef Of Ages posted:You should be able to turn off your accounts so you're no longer being billed and let the buyer deal with backdating their account when they get around to it without actual stoppage of service. This is not a thing that happens in PECOland. You need to get to them to transfer the account into your name before the sellers turn off the service/PECO gets there to do the disconnect. Your real estate agent should leave closing saying "congratulations, now call the local utility and transfer the account right now before you do anything else."
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Jun 17, 2022 20:32
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Looked at my first house and uh, it was probably $30k to high for what it was and smelled like sewage, and the guy showing it couldn't even get to the crawlspace to check on what the nature of the sewage leak was because it was padlocked. Even the guy showing it wasn't that enthused. Really nice view and one half of the house was well finished.
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Jun 17, 2022 20:45
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Panzeh posted:Looked at my first house and uh, it was probably $30k to high for what it was and smelled like sewage, and the guy showing it couldn't even get to the crawlspace to check on what the nature of the sewage leak was because it was padlocked. Even the guy showing it wasn't that enthused. So you're saying it's a fixxer upper with great fundamentals and after minor fixes it will only go up in value? 
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Jun 17, 2022 20:46
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Motronic posted:This is not a thing that happens in PECOland. I figured that still happened in some places, but it seems wild to me. It has to be more expensive to physically turn services on and off (truck roll, person to go out and do that, etc.) than missing a day (or seven in this case) of revenue? An expert I'm not, but it doesn't make a lot of sense.
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Jun 17, 2022 20:48
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Motronic posted:This is not a thing that happens in PECOland. And if it's PECO, usually you wish the other person luck or godspeed as well. Especially if they're coming from a non-PECO residence. PPL wasn't so bad.
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Jun 17, 2022 20:53
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In Colorado it was water/sewer transferred for me, electric/gas/internet for me to do.
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Jun 17, 2022 20:54
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Beef Of Ages posted:I figured that still happened in some places, but it seems wild to me. It has to be more expensive to physically turn services on and off (truck roll, person to go out and do that, etc.) than missing a day (or seven in this case) of revenue? An expert I'm not, but it doesn't make a lot of sense. Truck rolls are increasingly unnecessary in an era of smart meters. Also, policies "making sense" have little to do with how regulated utilities function.
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Jun 17, 2022 21:12
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When I put in the request to switch city utilities the city took six months to complete it and then billed me for six months at once. During that six months when I received no bills and called to see what was going on I was told that that’s the typical delay.
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Jun 17, 2022 21:17
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Beef Of Ages posted:I figured that still happened in some places, but it seems wild to me. It has to be more expensive to physically turn services on and off (truck roll, person to go out and do that, etc.) than missing a day (or seven in this case) of revenue? An expert I'm not, but it doesn't make a lot of sense. Yea we used to let it go for about a week or two before doing a shut off like that, back when the meters needed boots. Now if there is no account there is no electricity the next business day with a remote disconnect. Saves lots of money and pisses off a lot of lovely landlords.
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Jun 18, 2022 06:23
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That feeling when a house you put an offer on goes pending but you haven’t heard anything from your realtor. Not a fan.
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Jun 18, 2022 16:07
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