Housing market is too far gone.

lescivic

OT Supporter
Oct 13, 2003
1,841
Space Coast FL
Fannie Mae and other lenders have special loan programs that they'll use to provide financing on those type of properties so long as the entire neighborhood is owned by the investor and there are no actual personally owned residences there. I'm fine with a ground up development geared towards institutional ownership for rent as these are essentially glorified apartment notes. Not really fine with institutional investors buying up individual homes within a neighborhood that is primarily made up of personally owned primary residences.
I’ve seen two new developments where they sell out a third or so and then the build for lease sign comes up. Would be pretty ticked off. We’ve been in our place for about a year now. Was or is a golf community for now. Golf course is in the process of being bought and converted to single family homes. Both situations suck but what can you do?
 

Menger

OT Supporter
Nov 23, 2011
23,796
This is one of the very few houses built in the last 60 or 70 years within short walking distance of the bars, restaurants, and breweries downtown, so I feel kind of inclined to just buy it. There are maybe 2 dozen that fit the profile so do I want to wait for another to go on the market? :dunno:

(some of you might die if I told you how cheap houses are there lol)
 
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TheProwler

OT Supporter
Aug 18, 2002
105,494
They are fine if used properly.

The ARMs that helped tank the economy in 2008 were only fixed for a very short period of time, had massive adjustments, and had pre-payment penalties if you tried to get out of them too soon. People made it work by refinancing over and over again from one shit loan to the next, until the equity dried up and they couldn't keep getting bailed out.

The average amount of time people live in their home is 7 years. The average amount of time people keep their same mortgage is about 4-5 years. If ARM rates are lower, then why pay a premium to lock in your rate for a 30 year term when you will most likely not be there for the full 30 years?

An ARM is a 30-year loan where the interest rate is fixed for the first 3, 5, 7, or 10 years. After the fixed period, it has the ability to adjust up or down, to align with where the costs of borrowing money are. It's not an automatic "FUCK YOU" trigger and all of the sudden your rate goes from 4.5% to 12%. There are caps and limits to the adjustments. If you are moving to a place and know you only plan on being there for 3-4 years, then a 5-yr ARM might be a good option. If you want to take the lower rate now, and think within the next 5-7 years, rates will improve to where you can lock in, then an ARM might be a good option. For the last several years it has been cheaper to do a 30yr fixed, so hardly anyone has done ARMs. Now that the rates are rising, there is a gap between ARM and fixed where some people are considering it, if it makes sense for their situation.
yep. I had a 7-year ARM on my first house, because I was doing a 5 year residency, starting in 2010. Moved and sold the house after 5 years. Interest rate was a fair amount better than the fixed rate.
 

TenSteel

*walks in Spanish*
OT Supporter
Nov 11, 2001
46,138
San Diego
The private section on some of these MLS sheets absolutely ooze with greed. Fuck these people.

Not sure if the MLS private section is where this kind of information would end up, but I have a story.

We started seriously house shopping in early 2020, so the market was fairly competitive.

First house we bid on:
It was an estate that was being sold by a few siblings that inherited the property from their late mother. They turned down our offer despite being pre-qualified for more than the value of the house. Our realtor said it was because we were a young couple and they assumed we didn’t really have the money. We verified that it was communicated that we were pre-qualified but they didn’t care.

The joke ended up on them because after they sold it to someone else, we heard from our realtor they got into a financial tussle with their buyer over repairs that needed to be completed. It ended in them paying for a whole new roof before close of escrow.

So yeah, age discrimination laid bare.
 

TheProwler

OT Supporter
Aug 18, 2002
105,494
Not sure if the MLS private section is where this kind of information would end up, but I have a story.

We started seriously house shopping in early 2020, so the market was fairly competitive.

First house we bid on:
It was an estate that was being sold by a few siblings that inherited the property from their late mother. They turned down our offer despite being pre-qualified for more than the value of the house. Our realtor said it was because we were a young couple and they assumed we didn’t really have the money. We verified that it was communicated that we were pre-qualified but they didn’t care.

The joke ended up on them because after they sold it to someone else, we heard from our realtor they got into a financial tussle with their buyer over repairs that needed to be completed. It ended in them paying for a whole new roof before close of escrow.

So yeah, age discrimination laid bare.
that's weird. how old were you then?
 

TenSteel

*walks in Spanish*
OT Supporter
Nov 11, 2001
46,138
San Diego
that was pretty dumb on their part. you can be doctors/lawyers/etc at that age, or whatever, and have plenty of money.
It was, and we had plenty of liquid cash on top of our pre-qualification.

I think they were looking for a quick sale and wanted to make sure they could cash out.

It all worked out ok. We ended up with an even bigger house than that one in better condition for the same money.

But had we waited any longer to buy it, we couldn’t afford it now. Sheeeeit.
 
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Leonard Washington

Well-Known Member
Aug 15, 2004
45,806

My house I bought in 2016 is identical to this, paid $179k. Terrible crowded hood, one car driveways, backs on a major highway etc etc

lOBpqfs.jpg


Shit is insane
 
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May 8, 2001
39,761
Colorado
Not sure if the MLS private section is where this kind of information would end up, but I have a story.

We started seriously house shopping in early 2020, so the market was fairly competitive.

First house we bid on:
It was an estate that was being sold by a few siblings that inherited the property from their late mother. They turned down our offer despite being pre-qualified for more than the value of the house. Our realtor said it was because we were a young couple and they assumed we didn’t really have the money. We verified that it was communicated that we were pre-qualified but they didn’t care.

The joke ended up on them because after they sold it to someone else, we heard from our realtor they got into a financial tussle with their buyer over repairs that needed to be completed. It ended in them paying for a whole new roof before close of escrow.

So yeah, age discrimination laid bare.

It was, and we had plenty of liquid cash on top of our pre-qualification.

I think they were looking for a quick sale and wanted to make sure they could cash out.
Fed law doesn't prohibit age discrim when selling a home unfortunately. But it would be widely frowned upon.

It's perfectly okay to decline your offer if they don't think you're able to get the financing though. So that's a legitimate excuse that it sounds like they were rolling with. Maybe your agent just had a good inclination that it was due to your age, and tossed that reason in there.

Either way, no. That sort of information would not be in the comments section. Hopefully no agent would be dumb enough to put that in writing for all of the RE world to see and document.

You might be right. Maybe they were just looking for a quick close. Makes sense in a hot market.
 

zizi

OT Supporter
Jan 11, 2005
9,810
I’ve seen two new developments where they sell out a third or so and then the build for lease sign comes up. Would be pretty ticked off. We’ve been in our place for about a year now. Was or is a golf community for now. Golf course is in the process of being bought and converted to single family homes. Both situations suck but what can you do?

I wanted to buy in a newer area but now I'm kind of glad we're buying in an established older neighborhood especially when I see stuff like trees being cleared for a rock quarry and zoning for manufacturing plants. We're also getting a much larger lot size than newer homes usually get.
 
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Menger

OT Supporter
Nov 23, 2011
23,796
What are the components of an aggressive offer that I should be willing to do? Don’t want to waive inspection, but appraisal gap, longer waiting time to move in?
 

kwhitelaw

OT Supporter
Sep 1, 2004
41,757
virginia
What are the components of an aggressive offer that I should be willing to do? Don’t want to waive inspection, but appraisal gap, longer waiting time to move in?

make inspection for informational purposes only (agree up front you won't ask for any credits/repairs). agree to do the inspection <2 days so the seller can put it right back on the market if your bail
make a portion of your deposit non refundable
offer to pay a portion or all of seller closing costs
offer free rent back to the sellers (confirm max time allowed with your lender)
agree to cover any or all of short appraisal
 
May 8, 2001
39,761
Colorado
make inspection for informational purposes only (agree up front you won't ask for any credits/repairs). agree to do the inspection <2 days so the seller can put it right back on the market if your bail
make a portion of your deposit non refundable
offer to pay a portion or all of seller closing costs
offer free rent back to the sellers (confirm max time allowed with your lender)
agree to cover any or all of short appraisal
You can also speak to your lender about quick closing options as well. Most seller's in the Denver market either need a post-occupancy, or they want to close as quickly as possible.
 

monolith

Hey, Herbie! How's life? Taking forever.
OT Supporter
May 9, 2004
44,604
Southern California
make inspection for informational purposes only (agree up front you won't ask for any credits/repairs). agree to do the inspection <2 days so the seller can put it right back on the market if your bail
make a portion of your deposit non refundable
offer to pay a portion or all of seller closing costs
offer free rent back to the sellers (confirm max time allowed with your lender)
agree to cover any or all of short appraisal
We did all of this except the inspection part and it ended up working out.
 

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