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Ok, so looking at buying a second home on a lake that will likely become primary residence once kids move out (lol). Previous owner moved into a nursing home, so I am working with his kids. The house is in...not great shape, but I am very very familiar with the area and that family so I'm pricing in what it will need, risk, etc. The particular situation: they got an insurance payout to replace the roof after it got hail damage, which it needs. But they chose to keep the money and not replace the roof, which would cost much more than their payout, but insurance would, or would have, covered that. I'm trying to see if they can get a company out there to do it under the claim, but not sure where they ended up. What happens to me if I buy it? I assume any insurance claim would just be "no, we already paid out this roof, it's gotta be rebuilt out of your pocket". Is there a set number of years before that resets? If they DON'T disclose that to another buyer, is that actionable?
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Aug 20, 2023 02:44
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That was what I was thinking. Do you know what the disclosure rules would be for a situation like that?
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Aug 20, 2023 03:28
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DoubleT2172 posted:I think "make the sellers put on a roof" is a good place to start with the offer Well yes, there's a bunch of stuff like that, but if they fixed up everything they'd be able to ask for a lot more, it's under a reverse mortgage and no one is in it so they want to move it ASAP. If it was just "needs new roof" it'd be easy to factor that in + risk etc, but the fact they actually made a claim throws a wrench in this. I'm trying to suss out the impact so I can either get them to try to fix it under the claim, or price all this other bullshit into it. They are effectively broke so they can't put any of their own money in it.
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Aug 20, 2023 04:24
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1. Appraisal was done last week and it's in the ballpark of what we're talking. Lots of stuff would come up in an inspection but it wouldn't be condemned or anything. 2. The insurance claim was very recent, they may still be able to get it replaced. There was a hail storm here that got disaster relief, I had my roof replaced at my house and in this area at least 4 other neighbors within a few houses got theirs replaced. My insurance cut me a check for like $9k but the replacement was like $15k but that money came when the work started/finished. In their equivalent they just pocketed the 9k but I know they had roofers out there at one point so they may still be able to have their insurance cover, the roofing queue is so backed up that delay is normal. Given this houses kind of odd footprint I think it will for sure be on the higher end. 3. We can afford to replace it. The roof is functional, not leaking or anything. I'm asking because insurance may be able to still cover that gap between the payout and actual replacement, and I'm trying to figure out what they got themselves into to make a real bid.
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Aug 20, 2023 14:09
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Motronic posted:What does this mean? I just went through this. The insurance company cut me a check to replace my roof, 9 months later the project was able to start and it cost more than the check they cut, you didn't need to have, like, the work done to get that first check. I submitted the work order and the insurance covered the difference. After the work was done there were additional costs that came up while the work was being done, and insurance cut a 3rd check. I know they had roofers out on this house so ideally I'd like them to pick that back up, but I don't know where they are in the process or when things were done.
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Aug 20, 2023 15:19
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If they pass the line where they owe $25k I don't really understand why they wouldn't just stay there for the 2 months they paid for. My guess is you're right about the DoR thing, so they will probably then demand a cash for keys to leave early. I don't see them leaving on their own accord AND THEN asking you for money. Their leverage is they legally can stay there for 2 months. This is a hosed up situation, though I don't know what a lawyer would really help with here as there is a contract with an A or B option and it looks like the sellers intend to take the B option. I don't really know why you entered that contract in the first place.
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Sep 13, 2023 16:20
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Ham Equity posted:Rentbacks are pretty normal in Seattle real estate. Until relatively recently, people were doing zero-holdback rentbacks for like six months on all-cash offers with no contingencies and waiving inspections. We had all the usual contingencies (title, inspection, appraisal), just with a short rentback. That makes some sense. But yeah, it looks like they are communicating that they intend to cross that date without giving up the house, which is pretty straightforward based on what you said the contract was. I wouldn't believe them for a second that they are just "going to be staying a couple extra days". I think they're going to try to do a cash for keys, and maybe you can work out a deal with them maybe not. In particular I have no idea how that would work as income (the 25k you get from escrow) vs a deductible expense (giving back money to get keys) so you may need to figure that out ahead of time before you start negotiating. Part of my might be tempted to uno reverse them, part of me would rather this whole mess went away.
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Sep 13, 2023 17:08
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They're not squatters if they prepaid rent and security deposit with a contract. I do think their is a real danger of Ham Equity buying a house he can't move into and people who are going to try to use that to squeeze.
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Sep 13, 2023 20:31
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Pro-move would be to use their 2 months and sub-let it out to someone else under the table.
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Sep 13, 2023 21:01
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QuarkJets posted:This is what I would be worried about. OK, so you got this $25k from escrow for 2 months rent and security deposit, and on Friday these people say "we have moved out today, please return our security deposit." What now? Do you give it to them? If you do, will the DoR send you a bill 6 months from now? Actually that situation is fine. The people haven't lived there for 2 months, if all they want is the deposit back you give them that then make sure you have money aside in case the DoR comes back (I honestly have never heard of the DoR going after the landlord for rent paid, but who knows I guess). If you just have to give back the deposit amount again then OP came out way ahead on this. The current people could absolutely just live there 2 months and OP can't do anything. They could leave today and the $25k goes poof from escrow and OP doesn't need to care where it went. There is no "good" reason the people don't want to leave until Friday unless they have some plan C in mind. I'm not sure what you can do until they show their cards though.
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Sep 13, 2023 21:28
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Mind_Taker posted:Hi thread. My house payment has been lower than a rental would have been for at least the last 6 years (probably more) and I am on a 15 year mortgage that only has a little over 4 years left, at which point my living cost would probably be less than a 1 bedroom apartment for my 2300 sqft, 3 bed 3 bath in a nice neighborhood in Saint Paul. Of course I am buying a "cabin" that is worth significantly more than my home but that is only because I make bad decisions.
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Sep 14, 2023 20:45
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evilweasel posted:the idea that the entire landlord industry exists due to bad math on comparing rents to profits from selling is...well, it's a claim. it's not a very good claim. given that there are large corporations that exist to landlord. That's not what he's saying at all.
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Sep 14, 2023 21:16
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drk posted:In American units, am I right in understanding that a ~640 sq foot townhome costs $320k in an "affordable" city? And $1M+ in the more expensive cities? 640 sqft townhouses are very rare in "affordable" areas, most are considerably larger. Outside of a few cities most places in the US are much larger than EU or AUS counterparts. Something like this is very common in my city, and this is in a decent, desirable area of Saint Paul: https://www.trulia.com/p/mn/saint-paul/250-saint-albans-st-n-saint-paul-mn-55104--2101721054 But in San Fran or NY? Yeah that place would be $1M+ If you go out into the sticks you might even find a place that size for $150k or less. Lockback fucked around with this message at 15:29 on Sep 15, 2023 |
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Sep 15, 2023 15:27
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pmchem posted:the rural home hate is a little overdone on internet forums full of city dwelling tech nerds. if you have good internet and access to good essentials (safety, highway, schools, food, etc) then there can be some real good situations for efficient cost of living non-megacity life, including affordable homes. Absolutely agree This doesn't apply to Peoria though.
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Sep 15, 2023 16:12
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Eric the Mauve posted:We could do with a Mod Challenge that HE can't post in this thread again until he admits he did not talk to a lawyer Didn't he say he talked with the lawyer 2 days ago?
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Sep 15, 2023 18:04
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Eric the Mauve posted:Nope, he only said "I have a call with a lawyer today" and has not commented since. If you're less cynical than I am and you believe this whole thing isn't a gimmick, you can believe he talked to the lawyer and the lawyer said "holy poo poo stop posting about this on the internet you nincompoop". Ham Equity posted:I expect most of the thread feels similarly. I can definitely understand the win/win of "I hope this goes well for you, but if it doesn't, there's always schadenfreude." Although honestly I don't think there is much to talk about until the sellers actually say what they're going to do.
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Sep 15, 2023 18:18
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Sundae posted:You have not fixed the safety issue because you haven't moved in / they haven't moved out. That part wouldn't be a solid argument. You are the owner of the property, you hold the deed, there's no reason why you can't fix something while you have someone else living there. Every state has conditions of how to fix a safety issue while someone is residing in your house. Now, how liable would you be? Depends on the situation. At the very least they couldn't claim the tenant didn't know about the issue, but how it breaks down would depend on the situation.
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Sep 15, 2023 20:43
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I've never heard of the DoR going after a landlord because someone who owed money for taxes paid their rent. Maybe it could happen but it does strike me as extremely unlikely.Arsenic Lupin posted:Have you talked to your lawyer about what to do if they don't hand over the keys? Better still, is your lawyer coming to this meeting? They have 2 months in which they can live there before its a problem. They paid a deposit that was "We get 2 months rent or we get the money back". They didn't leave so as of now they have 2 months to live there. They want to meet anyway and its almost certainly going to be to try to negotiate a cash for keys situation, but HE doesn't know what the request is going to be yet.
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Sep 15, 2023 21:11
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The dogpiling from people who don't understand the issue or are just willfully ignoring what's been said really tanks what could be a useful thread for people.
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Sep 15, 2023 22:25
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Leperflesh posted:So there's two rentbacks I don't think there is, HE just closed like a week ago. That's what spawned this whole conversation. There's 1 rentback agreement, for 2 months that just went into effect last night at 9pm. Before that it was the seller's property.
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Sep 15, 2023 23:05
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We're the sellers just libertarians who just didn't want the government to get any money?
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Sep 16, 2023 04:30
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Congrats on the house Ham!
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Sep 16, 2023 06:30
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SmuglyDismissed posted:At least it gives me some solace that I'm not the only one who's broke brain spirals off into every little possible nightmare scenario whenever there is some amount of risk in life that takes time to resolve. "I'm just like an SA mod" should not bring you solace.
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Sep 16, 2023 14:44
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Eric the Mauve posted:Probably no one in this thread has the expertise to actually know, but the question still lingering in my mind is... I don't know for sure, but honestly this is likely not HE's issue. Like you said, the DoR said "Don't give the money to Tax Cheat", but they didn't put conditionals anywhere else. It's not like there's a law making it illegal to give money to people who owe taxes, so he's not in any danger of fraud. Like, people who owe taxes spend money, its not like the DoR goes and claws back money spent on hamburgers, rent or car leases. An escrow as part of a property sale probably gets auto flagged by the DoR but beyond that I would seriously doubt they'd give a poo poo about about 15k or whatever HE would send back and I don't know their standing to claw that back. HE should listen to his lawyer but "Don't worry about it" seems like the most likely answer for that tiny amount of money.
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Sep 16, 2023 15:43
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Baddog posted:Ehh for me it's that this whole situation seems like it was created just to save some cash from the tax man. When it's that transparent, I think you run risks being the guy who holds the $$$ in the scheme. I would imagine the more egregious you make this the more likely to draw additional scrutiny. 60 days is a really common rentback agreement though. Also, rentbacks aren't weird or uncommon. They have pretty standard agreements you can get off rocket mortgage or wherever. I don't know I would have done it with sellers who were dealing with a lien but I don't know the order that HE found out about stuff and it worked out anyway. And yeah, if I was HE I absolutely wouldn't give them the full amount back, but they did give back the keys and I wouldn't want to try to gently caress them over either. I absolutely would talk to a lawyer and see if there needs to be any other sort of release, take that fee out of the refund and then take a cut from whatever is left minus the deposit. Lawyer might have an idea on what a fair cut is.
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Sep 16, 2023 17:28
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I don't think HE ever had major questions about the agreement other than "I don't know what the sellers are going to do" or "I don't understand why they want to give the keys up right after the contract date". It was mostly other goons who were making up weirdo scenarios. There wasn't much need for a lawyer because nothing outside of the contract happened. NOW there is because they are asking for money back but before last night there was literally nothing happening that he needed advice on.
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Sep 16, 2023 20:12
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It depends. You can call insurance companies and ask though. How big of a deal depends too, but the house hasn't burned down in the 80+ years it's had it so that's a point in it's favor. Basically depending on the area and whatnot it can range from "insurance companies don't care" to "your choices for insurance are limited and premiums are higher". I imagine it mostly comes down to how familiar the local branches are with how houses were built in the area. Lockback fucked around with this message at 04:10 on Sep 17, 2023 |
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Sep 17, 2023 04:08
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marchantia posted:Our household income is around $140k and are in a similar situation as well (current rate under 3%, bought for ~230k in 2017, house is now valued around 410k) and even thinking about a 750k mortgage makes my skin crawl. I think that's a huge cost that a lot of people are slamming up against. Sure you'll have a big down payment when you sell your current house. But kiss that 3% APR goodbye and say hello to a ~7%. A really good case study on why you probably shouldn't buy a "starter house" in general (though I don't think thats what OP did).
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Sep 19, 2023 16:32
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TheBacon posted:I am curious what you people should do if not buy a “starter house”? Rent and hope to catch up to the middle of the train to be able to afford 2k+ sqft and also close enough to not have a poor commute? Or just everyone should roll the dice like Ham Equity? It's ok to buy a cheaper home, but don't buy a home that you know you will be forced to sell or otherwise can't stay in long term. Like, if you know you need a 3 bedroom and can't afford one, it's better to rent and save. Buying a house that you think you will NEED to sell in the short term is tremendously risky.
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Sep 19, 2023 17:31
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Leperflesh posted:To me the phrase "starter home" translates to "don't overreach when you're buying your first house, get what you can afford today." Usually starter home (to me) doesn't just mean "Not a forever home" but implies a direct plan to sell because you know it won't meet needs after a few years. If you're living in a place for 10-20 years that's not a starter home. It's when people buy a home and intend to move in 2-4 years. That's probably a bad plan if you know you're really not able to stay at that place after that period. Uthor posted:I'm single with no kids buying a small house. Perfect for me. My mom asked why I'm not getting a bigger place in case I meet someone and get married and we have kids. Yeah, that's not what I'm talking about. You might get something later but it's not like your plan is to flip that house at a certain date.
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Sep 19, 2023 17:39
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TheBacon posted:So your point is basically timeline? Like I’ll talk about myself. I just bought a 3 bedroom 1300sqft “starter home”. I have some personal goals of children within the next 10 years. If that comes to fruition I imagine I would want a larger house sometime in 7-10 years, but in the meantime wanted the equity and more importantly the ability to do whatever I wanted with my house (especially have a garage) even at the potential expense of 7% if rates do not come back down. I may never have kids and then this house is great, but if I do I do not see having multiple kids growing to adults without desiring a bigger house. Is that reasonable or do you think I would have been better served trying to get a 4-5 bed 2k+ sqft house of the jump? Timeline and need. So you have a long enough timeline, and let's say the market gets more hosed in the next 10 years. Would you have to postpone your life or potentially walk away from your house? Probably not, if you had kids you could probably make due for a while. If you were to say "I won't have kids while I own this house, but don't worry, I'm sure I'll be able to sell it and upgrade in 3 years" then I would say you're taking a risk. It comes down to using a house and the costs that come with it financing, closing, maintaining, etc as a means to build equity when its not really what you want to live in but do anyway is a risk. Sometimes it works out, sometimes it leaves you screwed.
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Sep 19, 2023 18:25
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TheBacon posted:It’s a very interesting thing to think about, maybe just due to where I have lived but looking back 50 years the correct thing to do has always been buy yesterday if possible, today if you can’t. Every indication has been to me that getting on the treadmill is the correct move independent of intangible things. For me personally the intangible things are very strong and so I pushed slightly past what I would prefer to be in a situation I was happy with. I understand the overall point, it does seem awfully conservative to me though or maybe is just general when more of it really matters the location/market. This post is from 2007. Its not always a slam dunk, although for a lot of people any kind of saving is impossible so a home is better just because you lose the house if you don't stop paying into it. A lot of people have lost their shirts because they panicked into the FOMO "I should have bought yesterday". I do think owning is just far better than renting, but you have to be in the right place to own. If you think you're going to want to sell/upgrade/whatever in a short amount of time, that margin for owning becomes a lot smaller
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Sep 19, 2023 20:51
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Leperflesh posted:
Yeah, I kinda kicked off this topic trying to make a point that folding to FOMO to buy a house you don't really want to stay in for more than a couple years is super risky. I'm old enough to remember people picking up properties in 2006 because "I'll just flip it", and I know several people who walked away from properties or had to wait out being underwater in places they did not want to be in for way longer than they wanted to be. But for others (myself included) buying a house (and refinancing) has been a great financial decision. The point is, there's no one true strategy.
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Sep 20, 2023 16:39
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Baddog posted:Yah, that was sort of my point back there, the 20x leverage on my initial just 5% down enables these massive returns (as long as housing prices keep going up, but our whole political system is engaged in making sure that happens). I have similar warnings about trying to time a market. Any market.
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Sep 20, 2023 18:48
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It is super unusual for insurance to not want to insure you for branches on the roof and railing on a deck (unless its a raised deck with no railing, in which case wtf?) State Farm told me they were perfectly happy to insure me despite the roof of the place I am buying having recently paid out a complete replacement claim and no replacement done. They just wouldn't cover roof damage. I'm not sure how an inspector could speak to what an insurance company does or does not want to do. All they can do is point out the stuff.
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Sep 23, 2023 17:49
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If you live in an area with basements, finishing or adding a bathroom in a basement isn't horrid. Adding bedrooms can be tough because you need eggress but usually if you can run a vent and access the plumbing then it's a pretty doable. I had a basement bathroom with a large steam shower put in and it really was pretty reasonable, around 25-30k all in. We had an unfinished laundry room that didn't hold the laundry anymore to work with though, so it made it pretty straightforward.
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Sep 26, 2023 00:42
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If you don't think you can contact the owners, what does an appraisal do for you? You'll need to contact them anyway, it should be the first thing you do. Also, just be prepared if they are that hands off and just quietly making a good income stream with long-term tenants who obviously love the place then their price will probably be above market. You never know though.
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Sep 26, 2023 15:15
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BonerGhost posted:This is a big part of why I don't want to interact with them unless we're very confident we can afford it, and if we can't get concrete info on the value and costs, then only ask about it a couple months before we leave. There's lots of better ways to ballpark a house than paying $700 for an appraiser to do it. Sell price may have nothing to do with appraisal either. If the appraisal comes back $550k and the sellers don't want to sell it for under $650k then the sell price is $650k. Find comparables that have sold. Neighborhood, sqft, bedrooms and bathrooms are the things that matter most, you should be able to dial in to a rough estimate pretty quickly. Then you'll need to have the conversation when you're ready. You can get pre-approved with a lender if you want, but it probably won't make a difference. I would assume the owners would not want to sell, but you never know and it's not particularly rude of problematic to ask if you are willing to accept no.
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Sep 26, 2023 19:16
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Through an ironclad will and a series of hilarious deceptions the owner is actually a golden retriever, which is why you've never met them. Disney's PoochLord
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Sep 26, 2023 20:32
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Betray them Ham. Take everything. Do it before they do it to you.
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Sep 27, 2023 16:58
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