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Okay. So it sounds like you closed the sale on the 24th with an agreement that they would stay in your house at least until Friday, and any time past that is subject to this pseudo-rental agreement at $8,500/mo plus an $8,500 security deposit. The sellers were required to placed that deposit plus two months in escrow, which they have now released to you. You have also been notified that they expect to overstay by at least one day. Contra the posters in this thread, I do not think this $25k is freely yours. Contractually, I suspect that you are required to return at least the security deposit (assuming no damages) and the second month of rent (assuming they do not overstay by more than one month). Whether you return the first month given the overstay is your decision. And I don’t think whatever portion of this $25k that you return counts as taxable income; it’s an overpayment that you’ve refunded. Also, none of this seems suspicious to me, other than the usual risk of overstaying sellers. But of course you should talk to a lawyer to make sure you understand the legal and tax consequences of all of this. I don’t think there’s any point in going to a “handover” if they won’t haven’t moved out yet, though. Do the walkthrough when they’re actually leaving.
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Sep 13, 2023 17:14
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Walkthrough should always be before close. You can do a walkthrough after you close, but you’re just walking through your own house and have missed your opportunity to object to the seller taking the bathtubs.
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Sep 14, 2023 00:45
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Peoria is just a small-ish city. My wife got a job offer there to work at Caterpillar. I’m sure it sucks, but it’s not like the total sticks.
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Sep 15, 2023 18:00
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Ham, I think you can just ignore the dogpilers at this point. If the sellers actually have moved out already, and they’re just handing over the keys late for whatever reason, there’s not much risk they’re planning to squat, which is your biggest outstanding problem. If you’re acting on legal advice and running your plans past the DoR before refunding any portion of the rent advance / down payment to the sellers, legally you’re in as solid a place as you can be. Out of abundance of caution, I would not mention that you’re talking to the DoR to the sellers. If they ask about getting a refund right away, just tell them you’re still awaiting payment from escrow and you’ll send it on ASAP.
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Sep 15, 2023 22:20
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Sounds good, although I personally wouldn’t even mention lawyers. You have a tailor-made completely incontrovertible excuse for not writing them a check, which is that you haven’t gotten the money yourself yet.
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Sep 15, 2023 22:33
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I was inspired to check on my last house, and apparently our buyers just resold it in July, for about 9% more than what they paid six years ago. That’d be a real-money loss even without taxes and commission, and then they also did a lovely remodel of the kitchen and finished the basement into a studio apartment. But I’m pretty sure they tore up the trees we planted, so gently caress ‘em.
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Sep 19, 2023 07:15
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Realtor fees are a percentage of the entire sales price, not just appreciation.
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Sep 21, 2023 19:45
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Buyer’s closing costs on my current place were about $12k + 2.3%; thank you, New York, for the brutal buyer-paid taxes. You shouldn’t count prepaid property tax and insurance when you’re doing these calculations, though.
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Sep 21, 2023 20:37
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Pilfered Pallbearers posted:And why not? These are costs that will be paid out of the profit one way or another. Because you should be accounting for them already in your month-by-month costs. It matters for cash flow at purchase time, but if you include them in closing costs, you’ll end up double-counting them.
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Sep 21, 2023 20:45
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When I sold my previous house, in California, the closing costs were the commissions (6%), transfer tax (~.8%), about $1k in other taxes, fees, and inspections, and about $4k for staging (which obviously is an optional expense). Plus about 40 days of prorated property taxes because those were due trailing. But all of this is very location-specific.
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Sep 21, 2023 21:42
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Sounds like WA is a state where title insurance is split? That varies a lot — it was paid by the buyer in every transaction I’ve been in, but sometimes local custom is different.
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Sep 21, 2023 22:26
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GoGoGadgetChris posted:Are you saying, your agent (buyer's agent) passed on a portion of their commission to you, the buyer, as a credit at closing? I’m pretty sure this is by far the easiest way to do discounts as a buyer’s agent. And discounts are increasingly common because 3% is somewhat insane as prices go towards a million bucks.
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Sep 22, 2023 02:56
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The plan of just living with a single bathroom is pretty reasonable, especially if you don’t have kids, but yeah, adding one is a very expensive renovation unless the house is basically built for it already.
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Sep 25, 2023 22:55
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Overall inflation over that period in the US floated around 3% annually, so if home prices were level, they were actually getting cheaper. Anyway, we’re going to see a lot of selling over the next 5-10 years regardless of interest rates. The oldest boomers are 78.
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Sep 29, 2023 20:13
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Yeah, local landlords are the much bigger rival to individual ownership than investment firms.
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Sep 29, 2023 20:38
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You generally don’t know much about your buyer when you decide to accept an offer. I mean, if they approach your agent saying “We are a landlord and will be renting the property out,” your agent can pass that on, but if it’s a small-time operation and the owner(s) just come by and see the house like anyone else, you can’t really know in advance. And yeah, taking a significantly worse offer (or breaking the contract) in order to stand on your principle of not selling to a landlord is a pretty big ask.
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Sep 29, 2023 20:50
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Hadlock posted:Is there any kind of somewhat common mechanism where a SFH owned by a megacorp rental company ever reenters the private ownership market? I would imagine all but the very worst get packaged into portfolios and traded in perpetuity I don’t think we know that there’s actually a significant number of these “megacorp rental companies” owning single-family houses. Big rental companies tend to prefer to operate apartment buildings; rental houses are mostly owned by small-time landlords who are either local or paying some local management company to take care of it. It’s just something that happened in small amounts and got talked about a lot. If a big company does own a lot of SFHs and wants to exit that position, I would guess that there’s usually going to be more upside selling into the general market over selling in tranches to other companies. rjmccall fucked around with this message at 20:58 on Sep 29, 2023 |
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Sep 29, 2023 20:56
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Hadlock posted:Do you have any data to back that up I haven’t looked at it recently, no. The last time I looked at it, it really seemed to be, like, one hedge fund, plus people pointing at Zillow (which was not for rental and which lost a shitload of money). If that’s wrong, okay. I still think my guess is probably right that there’s a lot more upside selling houses into the general market than in tranches to other investors.
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Sep 29, 2023 21:27
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Yeah, that definition of investor includes anyone who buys a second house just to rent it, and obviously that’s going to be really different in terms of how they eventually sell. The underlying CoreLogic survey says the percentage of sales that were to “mega” investors (more than a thousand homes) increased from 1% to 3%. Still, definitely more than a single fund, point taken.
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Sep 29, 2023 21:37
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RSUs are tricky for lenders. On the one hand, there’s definitely a lot more awareness of them these days, especially in tech-heavy markets. On the other hand, they’re not guaranteed, and that’s not a theoretical distinction — it’s common for RSU grants to vary a lot based on company health and how they’re feeling about you, and even your existing grants can rise or fall a lot based on market conditions. If you can point to a long-ish history of getting consistent RSU grants, you should be able to find a lender who’ll factor that in as part of your income, maybe not at full value but not completely dismissing it. But it is much safer to plan without relying on RSUs at all and treat them as a bonus that you can probably rely on to let you pay down your principal much, much faster than you otherwise would.
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Oct 7, 2023 02:37
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As a seller, you care about buyer financing only to the degree that you’re worried it might fall apart before closing (or just take longer to close). If you’re not in a rush, and it’s a seller’s market, you should generally just take the best offer; worst case, you have to re-list. Seller’s agents will make advice with this in mind, and their incentives align with yours — they want a good offer but also don’t want their time to be wasted and especially don’t want to have to list/show the house more than necessary. A buyer’s agent is at least theoretically supposed to encourage you to make good decisions and not buy a house you can’t afford. How much they actually live up to that, well, y’know. But that’s why they’re giving you different advice.
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Oct 7, 2023 02:57
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Duckman2008 posted:Rates suck now yes. What are the rules on later re financing ? Obviously I assume that you can’t buy based on it, and lower future rates aren’t guaranteed, but just curious. Not much in the way of rules. You’re taking out a new loan and using it to pay off your old one. You’ll pay some origination fees to your new lender and get totally new terms. I’d say odds are good that rates will come down a lot in the next five years, but we’ll see. Overall, with the caveat that I don’t know your market in specific, I’ll second that this is not a good time to buy. Eventually either the rates will come down or they’ll start driving down prices, but sellers are going to be stubborn for awhile, so right now you’re going to get squeezed at both ends. Start looking at houses, get an idea of what you’re looking for, and wait a year or two for things to play out.
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Oct 19, 2023 05:54
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I think you mean something like “payments on the loan shouldn’t come to more than 25% of take-home”. There’s not much point in only borrowing 25% of take-home, and it certainly shouldn’t take you 15 years to pay back.
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Oct 19, 2023 15:51
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I checked, and it is indeed the monthly payment that shouldn’t be more than 25% of take-home. But yeah, he does go on about it being better to save up and pay in cash if you can, and he strongly endorses getting at most a 15-year loan, and he has a lot of affiliates who would love to help you out if you have questions.
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Oct 19, 2023 16:17
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Yeah, it sounds like you have a comfortable amount of time to figure out the car situation, maybe even get it paid off, before you really need to move.
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Oct 22, 2023 18:28
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Is meth remediation a tear-down situation, or would they just need to, like, take the garage down to the studs?
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Oct 28, 2023 02:51
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I mean, like it or not, the way buyer’s agents get paid is usually out of those fees. If your buyers are working with an agent, they probably don’t really want to either stiff their agent or pay an extra 2-3%. I walked away from a house once because the seller’s agent refused to talk to our agent because they didn’t want to split the fee.
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Nov 16, 2023 04:00
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Congrats!
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Dec 23, 2023 23:49
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Also the standard for “should we close this road” is basically “given that some crazy goddamn trucker is going to drive over this pass if it’s open at all, do we think they’re going to crash”
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Dec 28, 2023 20:11
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It looks like you’re also not considering the costs associated with both buying and selling.
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Jan 6, 2024 09:22
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GlyphGryph posted:I was just throwing those (and any initial maintenance) in the deposit column, since mentally I consider it all "the money you need to make this happen". It’s fine to say that this is money that in the rental scenario you’d be able to invest. What differentiates it from down payment is that it doesn’t become equity and so shouldn’t be counted in wealth. It just goes up in smoke as far as you’re concerned. This is a big part of why your analysis is putting the break-even point at like 3 years instead of the usual rule of 5. The usual story for this analysis is: you will live there for N years, and then you will sell whatever you’ve got and leave. This makes it very straightforward to compare the financial impact of renting vs buying because you end up in basically the same situation (you don’t own anything), just with a different amount of money. It is much harder to directly compare having a bunch of money in an index fund with having a house and a partially paid-off mortgage. But to do that, you do have to understand that what matters is not the notional value of your equity but the amount you will actually receive when you sell.
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Jan 6, 2024 18:17
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Your realtor probably has a kickback set up with that bank. Don’t treat it as honest advice. If their rates aren’t competitive, just go with somewhere else.
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Jan 16, 2024 19:03
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TooMuchAbstraction posted:I just spoke with a customer service rep at American Airlines Cargo, about shipping my dog Pavlov across the country. They have planes that have heated cargo bays, so dogs in approved crates can be moved that way. Problem: I want to do SFO -> PHL, and the plane that does that route can't take animals. In fact, Pavlov is a big enough dog that he can only be shipped in wide-body planes, and American Airlines, at least, shuffles their widebody planes around depending on the season. Right at this moment, they could do LAX -> PHL, but they can't guarantee that that would still be the case in a month or two, when I'd actually be ready to move. And LAX is like an eight-hour drive from where I live. Did you try SFO to Dulles, Newark, or even JFK? Any of those would be a lot closer to Philly than LA is from SF.
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Jan 17, 2024 00:38
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Our last movers packed, loaded, and unloaded a two-bedroom apartment in one day. (The move itself was only about thirty minutes.) We had some stuff pre-packed, but they still had to do about half the apartment. That included disassembling our bed (which takes actual tools, for reasons) and moving an (upright) piano. Unless you have way more stuff than that, or it’s weirdly complicated to pack for some reason, I doubt time is the controlling factor; my guess is that the packers and loaders are just different crews at that company, and it’s easier to schedule them this way.
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Jan 20, 2024 22:49
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I had no problem buying, insuring, or selling a house with energized knob-and-tube. That was in SF, though, not one of the counties that the insurers are essentially abandoning.
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Jan 31, 2024 18:28
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adnam posted:Yeah, my dad moved the entire family when I was in my second year of high school and it completely zeroed out my friend base/social growth for years. I'd say it actually was even more difficult for me in college to reestablish any semblance of normal. I tried to talk to him about it recently and it was a "What? You were fine. You got into college right?" kind of conversation. Anyways, I've told my spouse that when little adnams get to around the same time I'd rather drive 2 hours both ways in traffic than to make that kind of massive shift if possible. Moving in elementary or middle school is basically fine. We moved when I was seven. Kids are resilient, and they’ll have a long time to make new friends. Going into high school is a big social shift anyway. We moved again when I was 16, though, and I can confirm that moving in the middle of high school sucks rear end. The last few years of high school can be pretty socially scattered even without a move just because everyone’s doing different things, and then the move makes you feel so isolated. I lost track of everyone I knew with at my old school, and I felt like there wasn’t any point in making friends at the new school because we’d all be going our separate ways in two years. Throw in teenage awkwardness and all the natural resentment about the move and whew.
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Feb 27, 2024 11:02
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My in-laws recommended a buyer’s agent to us when we were house-shopping, and she was totally useless because she really only ever handled condos in lower Manhattan and downtown Brooklyn. But we spent long enough dragging her around to open houses that we felt guilty and walked away from one house after the seller’s agent refused to talk to her to try to cut her out of the commission.
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Mar 15, 2024 21:07
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That definition covers a lot of small-time local landlords and flippers.
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Apr 13, 2024 18:17
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Motronic posted:"Partially Finished Driveway" and "Expensive and Likely Unpermittable Reason Driveway is only Partially Finished and there is no house here" You are definitely going to get ambushed by goblins
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Apr 15, 2024 03:01
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There is one person who actually matters in the loan-making process: the underwriter. They live under a steel desk in a lightless subbasement of a fifty-story office building, have crippling OCD about financial documentation, can only be spoken to through five levels of handlers, and wield absolute authority over your loan. Everybody else is an empty suit.
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Apr 18, 2024 21:34
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