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Christobevii3 posted:$450k house with upkeep of a run down Winnebago??? What the... One word: Maui
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Nov 5, 2014 01:16
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0.11% upkeep seems very cheap. Except we all know it's going to be 11.1% pretty soon when that line bursts from pressure washing. Don't buy a house with a known bad sewer line...
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Nov 5, 2014 02:41
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QuarkJets posted:One word: Maui
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Nov 5, 2014 04:21
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We're going all out: the quote for repair is $50k, so we want a $50k drop in price or we walk. I'd be satisfied with thatmoana posted:If you ever need something built on a plot of land, my mom's boyfriend is a great contractor. Super hippie dude that lives on an off-the-grid commune over in Haiku that he built himself, but he was also an MIT engineer. We did look at a nice plot of land awhile ago, but our finances just aren't right for doing something like that. Not right now, anyway. But thank you for the offer. Maybe in a couple more years of renting we'd be able to afford something cool like that
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Nov 5, 2014 05:49
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What happens if a seller has lied on a seller's disclosure form? We're dealing with the original owner of the house, and there's clear evidence that part of the sewer line was replaced at some point. There's about a 10 foot long rectangular section of concrete in the garage that was replaced, and this replaced section is directly over the sewer line, and the inside of the sewer line looks like it had a long section replaced. No repairs of any sort were disclosed, even though the form requires that the seller disclose plumbing repairs.
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Nov 5, 2014 05:54
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Just ran my credit report today, and 2 years of living like an actual grownup has finally paid off. I'm pretty well plugged into my community, have 2 kids, have a relatively stable income, and some savings. Here's where it gets weird: I am self-employed, and only made $24,000 last year. The income was low because I wanted to put as much as possible back into the business We were still able to end up with savings of about $5,000 beyond the emergency fund and super extra pants making GBS threads emergency fund. My wife and I don't buy consumer goods or eat out, and live like basic hippies. We are currently paying $800/month renting a tiny (800sqft) farmhouse. I have about 10k cash in the business right now but will probably do my best to spend a good chunk of it before the end of the year so I don't have to pay tax on it, and about 10k available in a line of credit through the business. We have no debt. Our county has a $7500-10,000 down payment assistance program for low income first time home buyers that's a 0% non amortized loan they tack onto the back of your mortgage to get people buying houses out in unincorporated county land. I called the county today and we qualify. There are plenty of decent ~1,200sqft houses with acreage for $60-100k in our area. Is considering buying right now insane? I'm meeting with my bank tomorrow to ask them the same question, but I thought it would be interesting to see what the bfc hivemind thinks. tl;dr Can poors play the home ownership game too?
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Nov 5, 2014 05:55
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QuarkJets posted:What happens if a seller has lied on a seller's disclosure form? We're dealing with the original owner of the house, and there's clear evidence that part of the sewer line was replaced at some point. There's about a 10 foot long rectangular section of concrete in the garage that was replaced, and this replaced section is directly over the sewer line, and the inside of the sewer line looks like it had a long section replaced. No repairs of any sort were disclosed, even though the form requires that the seller disclose plumbing repairs. Have you been negatively effected? Unless you've had serious repercussions, there's not likely to be any value in pursuing this.
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Nov 5, 2014 06:17
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QuarkJets posted:What happens if a seller has lied on a seller's disclosure form? We're dealing with the original owner of the house, and there's clear evidence that part of the sewer line was replaced at some point. There's about a 10 foot long rectangular section of concrete in the garage that was replaced, and this replaced section is directly over the sewer line, and the inside of the sewer line looks like it had a long section replaced. No repairs of any sort were disclosed, even though the form requires that the seller disclose plumbing repairs. It's bad that they lied and it's fraud if proven that they did it with intent to deceive you for gain in a real estate transaction, but hard to prove and didn't cost you anything (you were going to inspect the house anyways in your diligence). If you walk away from the sale they and their agent are ethically and legally obligated to update their disclosures with your findings of material defects but how that is enforced varies. I'm with you on your strategy of asking for a price reduction to cover the cost of repairs, accepting that there is a big risk they will say no and you're going to have to walk away. You don't want a time bomb like that.
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Nov 5, 2014 06:21
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Leroy Diplowski posted:Just ran my credit report today, and 2 years of living like an actual grownup has finally paid off. If you are self employed you'll need to document your income over multiple years of tax returns, which is difficult if you're just starting a business. Any money "in your business" or available via a line of credit is completely immaterial to a mortgage and your business and personal finances need to be carefully and meticulously documented. It's probably worth looking into it with an eye towards buying in a couple of years but see what the broker has to say. I will caution you that brokers tend to blow smoke up your rear end to reel you in and let their underwriters stumble over the problems later, so be sure to get very specific when asking about the income and documentation requirements, and insist on a full preapproval with tax returns etc, not just a BS credit report based form letter, before you get as far as serious shopping or offering.
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Nov 5, 2014 06:34
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QuarkJets posted:What happens if a seller has lied on a seller's disclosure form? We're dealing with the original owner of the house, and there's clear evidence that part of the sewer line was replaced at some point. There's about a 10 foot long rectangular section of concrete in the garage that was replaced, and this replaced section is directly over the sewer line, and the inside of the sewer line looks like it had a long section replaced. No repairs of any sort were disclosed, even though the form requires that the seller disclose plumbing repairs.
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Nov 5, 2014 13:22
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Dik Hz posted:If they lied about the poo poo that's obvious, what else did they lie about? I'd walk away at this point. I second this opinion. The potential plumbing issue would have made me walk no matter what they promise. 50 grand off the cost does nothing for you if the pipe bursts a month after you move in (unless you're paying cash for the full transaction). And then you have evidence of a repair that they hid, also involving sewer. Too much potential for this to go sour for you to be worth it if you ask me.
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Nov 5, 2014 15:59
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QuarkJets posted:What happens if a seller has lied on a seller's disclosure form? That's why you hired an inspector.  Sellers often lie on disclosure forms. It often doesn't matter.
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Nov 5, 2014 17:43
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Could the sewer repair have been done by the previous owner? Not sure why you would lie about something that's so easy to spot.
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Nov 5, 2014 18:07
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BEHOLD: MY CAPE posted:It's bad that they lied and it's fraud if proven that they did it with intent to deceive you for gain in a real estate transaction, but hard to prove and didn't cost you anything (you were going to inspect the house anyways in your diligence). If you walk away from the sale they and their agent are ethically and legally obligated to update their disclosures with your findings of material defects but how that is enforced varies. I said this earlier in the thread, but the bolded part is not true in all states. In Ohio, the property disclosure statement only has to be accurate at the time it is filled out and the seller is under no obligation to update it. Also, you need to check your state's property disclosure form, but in Ohio the form only goes back 5 years and the sellers are under no obligation to disclose anything that hasn't been a problem in the past 5 years.
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Nov 5, 2014 20:04
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http://www.ahousebythepark.com/journal/archive/2008/07/ Someone linked this guys blog a few pages ago and I'm finally reading it. I am just baffled at his thoughts on purchasing the house. Real estate agent gives him a range of $200,000 to offer. He bids $100,000 lower than the real estate agent says is the absolute bottom of the range. This offer is $300,000 from the top of the range the realtor spoke of. Then he brags about listening to his gut and not playing by the real estate agents rules. The offer gets rejected with a "gently caress you, that's insulting" response. He figures that the real estate agent is in the way and complicating things, so he contacts the seller direct. He then offers $150,000 more than his previous offer, which is more than his realtor said to offer, and still somehow pats himself on the back for 'listening to his gut' and 'not playing by the real estate agents rules.' So the end result is the real estate agent told him to offer $50,000 less than he ended up paying and this guy thinks he's some kind of real estate wizard? I hope the whole blog is this delusional. If he had offered what the real estate agent advised him in the first place he might have saved $50,000 by not pissing off and insulting the seller. 
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Nov 6, 2014 22:28
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Spermy Smurf posted:http://www.ahousebythepark.com/journal/archive/2008/07/ I think you're misreading, he bid $100k below the range suggested by his agent, then after he was rejected came back at $150k over his original offer, which was $50k from the bottom of the range and still $50k less than his agent suggest he offer initially. He did end up eating the agent fees though and it's not clear how much that cost him.
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Nov 7, 2014 01:06
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Well, he says the agent says to offer the max he is comfortable with, and then the accepted offer is the complete max he is comfortable with. So the same? So apparently I did misread that. Either way the guy sure takes the long route.
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Nov 7, 2014 01:55
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Spermy Smurf posted:Well, he says the agent says to offer the max he is comfortable with, and then the accepted offer is the complete max he is comfortable with. So the same? Not really, because he surely would have paid somewhat more than the starting point of negotiations his agent suggested that was higher than his eventual offer, and he cut commissions and closing fees out of the deal by making an end run around the agents trying to get the seller under contract. Honestly I find nothing to criticize about how this guy went about getting his dream house: he set a budget, shopped and researched patiently, from a comfortable position without an expiring lease or house for sale, where he was under no pressure to buy, then he bargained firmly as an attractive cash-flush buyer and got a better price than listening to his agent would have gotten him. Reading more of his blog it looks like the $1.1 m he spent on construction turned a huge equity in the end as well so 
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Nov 8, 2014 00:54
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BEHOLD: MY CAPE posted:Not really, because he surely would have paid somewhat more than the starting point of negotiations his agent suggested that was higher than his eventual offer, and he cut commissions and closing fees out of the deal by making an end run around the agents trying to get the seller under contract. All the things you mentioned though are so atypical of the average home buyer and so, while a great story, it is hardly proof or an example of how to do things typically.
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Nov 8, 2014 01:14
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Mahoning posted:All the things you mentioned though are so atypical of the average home buyer and so, while a great story, it is hardly proof or an example of how to do things typically. A lot of these things the average buyer can in fact do; the most important is to research carefully and position yourself (e.g. month-to-month rental) to be flexible and patient, and (respectfully) negotiate in your interests rather than the interest of commission seeking agents, you can get a house you like and pay the best price possible for it. Obviously not everyone is going to install a rooftop jacuzzi with a view of Puget Sound, but getting a good deal on a house that needs work is also a real option for many buyers with renovation loans - as long as you clearly understand what you are getting into and are willing to walk away after a diligence period if/when you find bigger problems than you expected. Having enough cash that you can put up $100,000 earnest money and write financing contingencies out of your sales contract are definitely nice luxuries but not the entire deal.
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Nov 8, 2014 01:58
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BEHOLD: MY CAPE posted:A lot of these things the average buyer can in fact do; the most important is to research carefully and position yourself (e.g. month-to-month rental) to be flexible and patient, and (respectfully) negotiate in your interests rather than the interest of commission seeking agents, you can get a house you like and pay the best price possible for it. Obviously not everyone is going to install a rooftop jacuzzi with a view of Puget Sound, but getting a good deal on a house that needs work is also a real option for many buyers with renovation loans - as long as you clearly understand what you are getting into and are willing to walk away after a diligence period if/when you find bigger problems than you expected. Having enough cash that you can put up $100,000 earnest money and write financing contingencies out of your sales contract are definitely nice luxuries but not the entire deal. "Can in fact do" and willing to do are two completely different things. The reality is, a ton of home buyers are coming into the transaction in no position to throw their weight around during negotiations. Also, the story is an example of a bad Realtor, not that all Realtors are bad. Mahoning fucked around with this message at 02:26 on Nov 8, 2014 |
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Nov 8, 2014 02:18
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Mahoning posted:"Can in fact do" and willing to do are two completely different things. The reality is, a ton of home buyers are coming into the transaction in no position to throw their weight around during negotiations. That's not the point. One of the purposes of this thread (imo) is to help people make house buying as financially sound and 'not horrific' as possible. Those are all things that perfectly characterizes what readers who are potential buyers should model themselves after. Also about realtors. It doesn't matter if not all realtors are bad if it's amazingly difficult to be able to determine that without having deep connections into the industry. It's pretty good advice to do your own research and take your realtor with a grain of salt unless you have very good reason to (and even then). Rurutia fucked around with this message at 02:34 on Nov 8, 2014 |
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Nov 8, 2014 02:31
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Model themselves after, sure. But in my experience, as someone who has been a part of more home transactions than probably this whole thread combined (some of which involved absolutely zero commission), people should be realistic even while trying to get themselves a good deal. And if me saying "this is unlikely or rare" is damaging the home buying dreams of the would-be home buyer superstars, then we probably have a different definition of "help".
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Nov 8, 2014 02:42
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Mahoning posted:"Can in fact do" and willing to do are two completely different things. The reality is, a ton of home buyers are coming into the transaction in no position to throw their weight around during negotiations. Waiting for and researching good opportunities (at any or all of the level of the individual property, the neighborhood, the annual real estate cycle, broader market conditions, personal finances/situation) and offering a little less than what your realtor thinks you should is hardly throwing your weight around. Realtors are not bad, but all of them are trying to get paid by getting parties under contract and closing sales more than they are trying to save you money or find your true dream home. It is possible to have a perfectly amicable and productive relationship with your agent with the conscious awareness that you have different incentives at different points in the process. BEHOLD: MY CAPE fucked around with this message at 02:47 on Nov 8, 2014 |
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Nov 8, 2014 02:43
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Mahoning posted:Model themselves after, sure. But in my experience, as someone who has been a part of more home transactions than probably this whole thread combined (some of which involved absolutely zero commission), people should be realistic even while trying to get themselves a good deal. And if me saying "this is unlikely or rare" is damaging the home buying dreams of the would-be home buyer superstars, then we probably have a different definition of "help". I'm not sure I follow. You said that this guy's situation was rare. That's fair, but then that's why he's an example of what kind of advantageous position we should aim for to do this business transaction. But why is it unlikely? It's unlikely for you, as a realtor, to encounter a buyer like this, yes. But what does that have to do with his post about being a buyer, in a thread of people who are mostly educated buyers? Honestly, I just didn't see how it was relevant. Which is why my post started with "That's not the point". If you were trying to make a point relevant to buyers, I didn't find it very clear from your replies to BEHOLD: MY CAPE. It seemed like you were trying to, but I just couldn't find it.
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Nov 8, 2014 02:47
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BEHOLD: MY CAPE posted:Waiting for and researching good opportunities (at any or all of the level of the individual property, the neighborhood, the annual real estate cycle, broader market conditions, personal finances/situation) and offering a little less than what your realtor thinks you should is hardly throwing your weight around. Realtors are not bad, but all of them are trying to get paid by getting parties under contract and closing sales more than they are trying to save you money or find your true dream home. It is possible to have a perfectly amicable and productive relationship with your agent with the conscious awareness that you have different incentives at the time of offer negotiation. I mostly agree with everything you said, except that I'm not gonna base my advice in this thread on the experts that already know how to buy a house or negotiate a deal. I imagine there's plenty of people lurking and not posting, and I'm not gonna act like the advice in that blog is or can be typical because it absolutely is not. Something to shoot for? Maybe. But I'm trying to be helpful AND realistic instead of just "here's the perfect way to do things every time" which I know is an exaggeration by me but I still see too much of "here's the answer" when there is in fact more than one answer.
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Nov 8, 2014 02:50
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Mahoning posted:I mostly agree with everything you said, except that I'm not gonna base my advice in this thread on the experts that already know how to buy a house or negotiate a deal. I imagine there's plenty of people lurking and not posting, and I'm not gonna act like the advice in that blog is or can be typical because it absolutely is not. Something to shoot for? Maybe. But I'm trying to be helpful AND realistic instead of just "here's the perfect way to do things every time" which I know is an exaggeration by me but I still see too much of "here's the answer" when there is in fact more than one answer. You're probably referring to me sarcastically as one of the 'experts' but I'm the exact opposite. That's why I'm in this thread. I find you, as a poster, extremely exasperating because I'd LOVE to hear what you think about how to negotiate, how to put yourself into the best position, how to network. But so far your advice has been: offer another 1% to get a realtor that actually might have your best interests at heart (beneficial to realtors), listen to your realtor and don't think that negotiating will always go that well (beneficial to realtors). Why don't you actually give us an inside scoop without making me feel like you're here just to vouch that realtors can be helpful?
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Nov 8, 2014 02:56
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Rurutia posted:I'm not sure I follow. You said that this guy's situation was rare. That's fair, but then that's why he's an example of what kind of advantageous position we should aim for to do this business transaction. But why is it unlikely? It's unlikely for you, as a realtor, to encounter a buyer like this, yes. But what does that have to do with his post about being a buyer, in a thread of people who are mostly educated buyers? Like I said, if I'm gonna base my advice in this thread on the people that already know what we're doing, then there probably won't be much to say. Maybe I'm wasting my time in this thread, I don't know. I'm just pretty hard wired to assume someone is not an expert home buyer because MOST people aren't, because it's something that most people do only 2 or maybe 3 times in their life and the market changes so quickly that many times one experience can have nothing in common with a second or third. I didn't think there was anything wrong with saying "this is rare" but I am apparently wrong. And not just rare for "I'm a Realtor" but rare overall. If people don't want me to give advice to the average home buyer and help the average home buyer separate themselves from other home buyers, then say so. But I'm not gonna do that based on the opinions of the seasoned veterans in this thread because I'm not trying to help them (unless they want me to).
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Nov 8, 2014 03:04
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Rurutia posted:You're probably referring to me sarcastically as one of the 'experts' but I'm the exact opposite. That's why I'm in this thread. I find you, as a poster, extremely exasperating because I'd LOVE to hear what you think about how to negotiate, how to put yourself into the best position, how to network. But so far your advice has been: offer another 1% to get a realtor that actually might have your best interests at heart (beneficial to realtors), listen to your realtor and don't think that negotiating will always go that well (beneficial to realtors). Why don't you actually give us an inside scoop without making me feel like you're here just to vouch that realtors can be helpful? I'd be more than happy to help, and I'm far from just defending Realtors. In fact I know that I said that most realtors are terrible. If you're going to pretend that all my posts have been in defense of realtors and all my advice has to do with things that are beneficial to realtors, then I don't know what to say. I gave plenty of advice on presenting offers, etc. If you have other questions for me, I have yet to hear them.
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Nov 8, 2014 03:10
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What exactly are we arguing about here? That the blog written by a dude doing an apparently fantastic job of first time home purchasing is or is not helpful to first time non-expert home buyers? I have never purchased a house, but I am thinking about it. I read through that entire blog and found in fantastically informative, despite the fact that I am not in the same cash flush position. Is there some specific reason you think it is counterproductive? If not, you aren't being helpful.
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Nov 8, 2014 03:56
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Mahoning posted:Like I said, if I'm gonna base my advice in this thread on the people that already know what we're doing, then there probably won't be much to say. Maybe I'm wasting my time in this thread, I don't know. I'm just pretty hard wired to assume someone is not an expert home buyer because MOST people aren't, because it's something that most people do only 2 or maybe 3 times in their life and the market changes so quickly that many times one experience can have nothing in common with a second or third. I think we're not understanding each other. There's nothing wrong with saying 'this is rare', but rarity implies that there's probability involved. When you're speaking to the buyer, their circumstances are a) fixed in the present time and b) malleable to them for the future. So when you say "this is rare, so I wouldn't do this", it reads to me as a probabilistic argument where you give blanket advice that is applicable to most of the audience using an educated guess about an unknown. But, like I'd noted, it's not unknown or even fixed. Especially since we're talking about a particular case study. What I would have found to be a fair and appropriate advice would be: This worked in this particular circumstance that is rare amongst buyers. If you do not find yourself in this circumstance, I'd advise you take a) (course of action to achieve these circumstances) or b) (course of action to take if your circumstance is fixed). I know you have said most realtors are terrible. But you keep coming back to say "but not all are", which (as I said previously) is irrelevant to a buyer because they have no real way of knowing. Or at least as far as I'm aware. Good advice would be to tell us how to figure it out, that doesn't involve paying an even more exorbitant amount than already dictated by convention. My point is, you might not see it, but have you considered that your perspective is going to be very different than mine? When it comes down to it, by nature of the system, we have opposing goals for this business transaction. I'm giving you my honest opinion, take it or leave it. I gain nothing from typing all these words. Finally, I'm not currently buying a house, I read this thread mostly as a lurker to accumulate knowledge. But I've listed topics in that quote which are the specific topics that I read for including: code:
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Nov 8, 2014 04:03
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Steve French posted:
Because I think swinging your dick around with a lowball offer burns you more often than it works. Unless you're in a position where you're coming in with a ton of cash, are offering non-refundable earnest money in a large amount, or are in a position where you can take or leave the house, then it's not wise to gamble that much. Especially so if the seller is represented by a Realtor. And that's not because Realtors are necessarily bad (they often are), but because often times people who come in with lowball offers aren't serious homebuyers. Realtors are more likely to see that. The biggest enemy of Realtors isn't a well-informed independent buyer or seller, it's someone who THINKS they're a well-informed independent buyer or seller. And trust me, those are way more common than the well informed buyer or seller.
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Nov 8, 2014 04:13
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Rurutia posted:I think we're not understanding each other. There's nothing wrong with saying 'this is rare', but rarity implies that there's probability involved. When you're speaking to the buyer, their circumstances are a) fixed in the present time and b) malleable to them for the future. So when you say "this is rare, so I wouldn't do this", it reads to me as a probabilistic argument where you give blanket advice that is applicable to most of the audience using an educated guess about an unknown. But, like I'd noted, it's not unknown or even fixed. Especially since we're talking about a particular case study. What I would have found to be a fair and appropriate advice would be: This worked in this particular circumstance that is rare amongst buyers. If you do not find yourself in this circumstance, I'd advise you take a) (course of action to achieve these circumstances) or b) (course of action to take if your circumstance is fixed). Well gee, I thought saying "if you're in this exact situation this is good advice" would be a bit obvious and frankly, a bit lazy. I thought instead that I would say not to follow that advice if you're not that type of buyer. Maybe I could have said it differently, and I mean that sincerely. I know that you think that the only advice I've given on finding a good realtor is to find one that charges more but you would again be wrong because I know for sure I've described how to find a good realtor. Because you've chosen to skip this or ignore this, or if you have simply missed it, I'm here being accused of being a Realtor apologist. I'm not, I'm all for fair criticism of Realtors or the real estate industry, I just don't find it interesting or productive when not much is going to change any time soon. After you've reviewed my advice on finding a good realtor, let me know if you have any follow-up questions. As for me somehow knowing what questions you would need answered, I don't know what to say. Every buyer I deal with is different, and if I knew what kind of buyer you were I'd be in a much better place to answer your questions than "i expect you to know what to talk about". That would be like you being a teacher or a mechanic and mine just saying "tell me about teaching/fixing cars".
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Nov 8, 2014 04:29
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Mahoning posted:Well gee, I thought saying "if you're in this exact situation this is good advice" would be a bit obvious and frankly, a bit lazy. I thought instead that I would say not to follow that advice if you're not that type of buyer. Maybe I could have said it differently, and I mean that sincerely. What the Christ. I've tried really hard to engage you honestly and constructively. I gave you a list of 3 broad topics and 10 specific questions, and then noted that I expected you would know better than I what is important to know that I wouldn't be aware of due to your insider knowledge. I didn't say you were a realtor apologist, and nowhere did I imply you were. I said that saying that not all realtor were bad is irrelevant to the vast majority of buyers. I've read what you said before and found it to miss the mark in terms of what I wanted to know, which in expanded upon on my list. I gave examples where your advice really served realtors more than the buyer as examples only. They were the cases that stuck in my mind as being specific. Why are you so caustic in your defensiveness? Also, what you did say was overly simplistic and lazy. The example I gave was much more precise. Edit: phone posting now. Sorry if some of what I say is rambly. Rurutia fucked around with this message at 04:45 on Nov 8, 2014 |
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Nov 8, 2014 04:38
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Mahoning posted:Unless you're in a position where you're coming in with a ton of cash, are offering non-refundable earnest money in a large amount, or are in a position where you can take or leave the house, then it's not wise to gamble that much. From my point of view, if a person is not in a position to take or leave a house, they're very vulnerable to getting hosed hard by all parties involved. Being able to walk away from a deal is step number 1 in entering a deal. If you can't do step number one, don't get into a deal if you can avoid it unless you feel like gambling.
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Nov 8, 2014 04:56
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baquerd posted:From my point of view, if a person is not in a position to take or leave a house, they're very vulnerable to getting hosed hard by all parties involved. Being able to walk away from a deal is step number 1 in entering a deal. If you can't do step number one, don't get into a deal if you can avoid it unless you feel like gambling. Again, this is wishful thinking and is often not the case because you get emotions involved. Believe me, I try to advise my clients to leave emotions out of it but in most cases it's not possible. Which brings up a good myth: "treat real estate like an investment" Unless it literally is an investment (a piece of land or an income property), this is mostly impossible. And it's bad advice. Not because it's bad financial advice (it isn't) but because unlike every other investment, you're actually living in it. And so besides the financial side of it, you have to consider your own enjoyment of the house. After considering that first and foremost, then you can think of it as an investment.
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Nov 8, 2014 05:09
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Mahoning posted:Again, this is wishful thinking and is often not the case because you get emotions involved. Believe me, I try to advise my clients to leave emotions out of it but in most cases it's not possible. How can we take advantage of sellers that can't deal with business transactions because they get emotional? Is there any good strategy on the buy side to reliably play with the seller's emotions to your advantage? It seems counter-intuitive, that emotional attachment would increase their likelihood of trying to get more money or not selling, but perhaps if you know they're moving to get closer to family? Or perhaps you can try to bring a sob story of your own to their attention? quote:Which brings up a good myth: "treat real estate like an investment" I guess this is another one of those things where "investment" means one thing to your average fucktard/broker client and another to an educated investor. Read this article about creating the worst possible investment: http://jlcollinsnh.com/2013/05/29/why-your-house-is-a-terrible-investment/ It's certainly possible to save a bit of money over renting by owning over the years, but a home shouldn't be considered an investment unless and until you're renting it out, attempting to flip it, etc. It is a depreciating asset with constant liabilities associated with it even after the mortgage. Real estate agents contribute in a massive way by having this huge 5-6+% sales load on the transaction. Granted, through the magic of inflation and magic disappearing costs (repairs, commissions) that aren't factored into the "investment" cost basis, or sometimes through the vagaries of chance and the market, some few people can buy a home and realize a profit without trying explicitly to do so.
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Nov 8, 2014 05:30
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If an offer is really low, why does that equate to "not a serious buyer?". I'm confused on this. If I see a house your listing at $200K and I really want it, but only have $160K...how is that not "serious"? I seriously will give you that money for that house, yet you poo poo my offer? I mean clearly its a lot less than you want, but I'm very serious about it and I know I'd be turned off by any realtor that told me "oh ho ho ho that isn't serious unless its as high as *I* want it to be".
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Nov 8, 2014 06:27
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It's just posturing, there's no legitimacy to it. It's just unlikely that anyone is willing (or even able) to sell for a price well below what they're asking.
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Nov 8, 2014 06:43
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slap me silly posted:It's just posturing, there's no legitimacy to it. It's just unlikely that anyone is willing (or even able) to sell for a price well below what they're asking. But that all depends, right? If a neighborhood is full of houses that have sold for ~$500k, and the smallest and shittiest house in the neighborhood is listed at $600k, it's not unreasonable or illegitimate to offer that person $500k, or potentially even less
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Nov 8, 2014 08:47
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