These forums have been archived and are now read-only.

The new forums are live and can be found at https://forums.eveonline.com/

Out of Pod Experience

 
  • Topic is locked indefinitely.
 

I need realtor advice

Author
irishFour
Garoun Investment Bank
#1 - 2013-01-20 23:06:39 UTC
Hello all,

First time home buyer, and I would like some popular consensus. I have looked at about 10 homes in person, and scoured through hundreds on line. I have one Id like to make an offer on.
Its listed at 144.9k USD, and its a short sale. What would be an appropriate offer.
Personally, I want to put my "FBig smileck you face" an offer fairly low. Initially i thought about 125, but others have suggested considerably lower, approximately 100. My realtor suggest staying within 5-10% of the asking price.

What should I do.

I like to have my cake and eat it too

Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#2 - 2013-01-20 23:15:40 UTC
I'd listen to my realtor as this is what they do. Yes they get a commission but on the other hand if they don't sell it they get nothing so it's in their best interests to offer good advice.

"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny

Micheal Dietrich
Kings Gambit Black
#3 - 2013-01-20 23:59:31 UTC
Internet realtors can't offer you much advice, each license is per state as rules vary. All I can say is have the home inspected before you talk, it will give you an advantage when you want to cut prices (if there is immediate work that needs to be done).

Out of Pod is getting In the Pod - Join in game channel **IG OOPE **

Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#4 - 2013-01-21 00:04:27 UTC
Micheal Dietrich wrote:
Internet realtors can't offer you much advice, each license is per state as rules vary. All I can say is have the home inspected before you talk, it will give you an advantage when you want to cut prices (if there is immediate work that needs to be done).


Internet realtors? Better chance of pinning all listings to the wall and throwing a dart to decide which house to buy without looking at it first Big smile

"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny

Akita T
Caldari Navy Volunteer Task Force
#5 - 2013-01-21 00:17:52 UTC  |  Edited by: Akita T
irishFour wrote:
First time home buyer, and I would like some popular consensus.

IMO, not a good time to buy houses.
Prices are holding steady or only slightly increasing, noticeably less than the inflation rate.
I would keep renting for another 4 years or so.
My gut tells me house prices will resume dropping (and most likely at a rapid rate) before then.
Lowball an offer at least 10% below similar properties in the area "for a limited time", and just wait it out, then if they accept it tell them the offer expired and offer even less.
And if you do buy it, be prepared to sell it in 2 years or so just as prices start dropping again.

Of course, my gut could be wrong.
Bane Necran
Appono Astos
#6 - 2013-01-21 00:53:41 UTC
The housing 'bubble' is popping in Canada as we speak. US can't be far behind. I'd wait a few months or even a year to buy anything.

"In the void is virtue, and no evil. Wisdom has existence, principle has existence, the Way has existence, spirit is nothingness." ~Miyamoto Musashi

Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#7 - 2013-01-21 01:28:40 UTC
Bane Necran wrote:
The housing 'bubble' is popping in Canada as we speak. US can't be far behind. I'd wait a few months or even a year to buy anything.


We had our pop first, our housing prices are going up again Big smile

My house in Morro Bay, California dropped to below $500k but now it's back up to $530k and climbing Big smile


"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny

Akita T
Caldari Navy Volunteer Task Force
#8 - 2013-01-21 04:44:54 UTC  |  Edited by: Akita T
Surfin's PlunderBunny wrote:
We had our pop first, our housing prices are going up again Big smile
My house in Morro Bay, California dropped to below $500k but now it's back up to $530k and climbing Big smile

In most places it climbs back up at a rate similar to or even lower than the recent years average inflation rate (grand total in last 3 years is roughly 7%). In other places, it's still going down slowly. Only in very few places it goes up noticeably.

Yours went up by 6% or a bit higher. IF we're talking a 6% price climb in the past 3 years from an early 2010 minimum, then your house's "real" inflation-adjusted price either slightly dropped or barely changed. If we're talking longer, it's even worse for you, as total inflation over a longer period is even higher.

The inflation-adjusted average house prices were almost two times higher than they should have been during the peak in 2006.
They dropped massively, to about 35% above where they should have been by 2008. That was the great bubble bursting, but it's not completely deflated yet.
Prices kept slowly going down to just about 20% above where they should have been, to this day.
They need to fall by that much again, and that's assuming the economy gets better - if it goes through another hiccup, they might drop far more than that.

Of course, different areas in the country were affected differently. Those are USA nation-wide averages.
Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#9 - 2013-01-21 05:31:11 UTC
Akita T wrote:
Surfin's PlunderBunny wrote:
We had our pop first, our housing prices are going up again Big smile
My house in Morro Bay, California dropped to below $500k but now it's back up to $530k and climbing Big smile

In most places it climbs back up at a rate similar to or even lower than the recent years average inflation rate (grand total in last 3 years is roughly 7%). In other places, it's still going down slowly. Only in very few places it goes up noticeably.

Yours went up by 6% or a bit higher. IF we're talking a 6% price climb in the past 3 years from an early 2010 minimum, then your house's "real" inflation-adjusted price either slightly dropped or barely changed. If we're talking longer, it's even worse for you, as total inflation over a longer period is even higher.

The inflation-adjusted average house prices were almost two times higher than they should have been during the peak in 2006.
They dropped massively, to about 35% above where they should have been by 2008. That was the great bubble bursting, but it's not completely deflated yet.
Prices kept slowly going down to just about 20% above where they should have been, to this day.
They need to fall by that much again, and that's assuming the economy gets better - if it goes through another hiccup, they might drop far more than that.

Of course, different areas in the country were affected differently. Those are USA nation-wide averages.


Well, it's about a 30 second drive from the beach too... that probably helps a bit

"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny

Jhagiti Tyran
Caldari Provisions
Caldari State
#10 - 2013-01-21 06:07:08 UTC
Micheal Dietrich wrote:
All I can say is have the home inspected before you talk, it will give you an advantage when you want to cut prices (if there is immediate work that needs to be done).


Getting it inspected by a 3rd party (not your estate agent) is good advice anyway, you are going to spending a lot of money so you want the plumbing, electrics, drains and structure checked. Basically everything, getting a survey done on the boundaries and confirmation on liabilities and responsibilities is worthwhile to. Finding out the whole streets sewer system runs under your property and you are responsible for any costs if anyone else has problems can be painful. Any pending planning permissions is something you might want to be aware of too.
Micheal Dietrich
Kings Gambit Black
#11 - 2013-01-21 06:39:31 UTC
Keep in mind that he said Short Sale, and that says the house is worth more than what is being offered now, and that means that when the market does come back up, he will be sitting that much prettier. However the OP should also keep in mind that if he has to deal with BoA, he may as well forget it because they will sit on that paperwork.

Out of Pod is getting In the Pod - Join in game channel **IG OOPE **

Brujo Loco
Brujeria Teologica
#12 - 2013-01-21 12:30:15 UTC
This thread made me realize, Im still waiting for the Bubble to burst in Panama, I mean, there are hundreds of units for sale and they all are super expensive in the Capital.

Its about 1200 to 2000$ per sq meter, thats ridiculous in a country where min wage is 400$ a month.

And prices keep going up Shocked . So many foreigners investing here its crazy! Big smile

Inner Sayings of BrujoLoco: http://eve-files.com/sig/brujoloco

Akita T
Caldari Navy Volunteer Task Force
#13 - 2013-01-21 14:38:47 UTC
Brujo Loco wrote:
about 1200 to 2000$ per sq meter, thats ridiculous in a country where min wage is 400$ a month

Ours dropped even as low as 500 euro/sqm (especially for older buildings in less desirable areas) and are still dropping. However, minimum wage is under 200 euro/month (with the average wage at around 370 euro/month).
Khergit Deserters
Crom's Angels
#14 - 2013-01-21 18:11:46 UTC
You might want to check your local property tax assessor's website. Where I live, the tax assessor has information on the property's assessed value (of course). But it also has info on nearby properties that have sold, and for how much. If you're getting a mortgage, the lender is going to be looking at those stats before approving your loan. They don't want to lend more than something's worth, anymore than you want to pay more than it's worth.

But: My only experience is with one regular listing, not a short sale. Short sales are a different kind of animal.
Khergit Deserters
Crom's Angels
#15 - 2013-01-21 18:16:27 UTC
Jhagiti Tyran wrote:
Micheal Dietrich wrote:
All I can say is have the home inspected before you talk, it will give you an advantage when you want to cut prices (if there is immediate work that needs to be done).


Getting it inspected by a 3rd party (not your estate agent) is good advice anyway, you are going to spending a lot of money so you want the plumbing, electrics, drains and structure checked. Basically everything, getting a survey done on the boundaries and confirmation on liabilities and responsibilities is worthwhile to. Finding out the whole streets sewer system runs under your property and you are responsible for any costs if anyone else has problems can be painful. Any pending planning permissions is something you might want to be aware of too.


Here in NY that's called an engineer's inspection. Highly, highly recommended. Even if you're buying a fixer-upper, you want to know what kind of problems/expenses you're getting into with the foundation, plumbing, electricals, mold or termites.
Mark Munoz
The Scope
Gallente Federation
#16 - 2013-01-21 22:04:28 UTC
All have good points here, the biggest is the home inspection. It will probably run you 300-500. Most lenders require it before they will finance a home anyway.

You have to be careful with your realtor as mentioned they work for you but they also make a percentage of the total sale price so it is in their best interest for that to be as high as possible. At the end of the day I would offer whatever the hell you think its worth. If it is low the bank will just decline your offer. There is no rule that says you can't make a higher counter offer if they decline. Your only real risk is if you have multiple people putting offers on the house. Either way in that scenario I would stay far away as you no longer have the upper-hand in the transaction. Don't get too emotional or attached to any property as it will cloud your judgement. Set limits as to what you will "accept" and be prepared to walk away if you don't get what you want.

Also it is pretty customary to put in an initial offer pending a home inspection. What that means is you agree to buy the house at the agreed price pending a clean inspection. If the inspection isn't clean you renegotiate from there.

Jno Aubrey
Galactic Patrol
#17 - 2013-01-24 03:17:21 UTC
irishFour wrote:
Hello all,

First time home buyer, and I would like some popular consensus. I have looked at about 10 homes in person, and scoured through hundreds on line. I have one Id like to make an offer on.
Its listed at 144.9k USD, and its a short sale. What would be an appropriate offer.
Personally, I want to put my "FBig smileck you face" an offer fairly low. Initially i thought about 125, but others have suggested considerably lower, approximately 100. My realtor suggest staying within 5-10% of the asking price.

What should I do.


Former Realtor® here . . .

I don't know what state you are in (my license was NC) but the best advice I can give you on a Short Sale is to practise patience.

The current owner of the house owes more money on his mortgage than can be paid back by selling the home. The mortgage holder has agreed to allow him to sell the home for less, and will (probably) write off the difference between the sales proceeds and the amount owed.

Because of this, the mortgage holder must approve the sale. The amount you offer must meet their internal guidelines for cost recovery. The annoying part (I have been through this more than once) is that they may "accept" your offer, then think about it for several months and decide to reject it. They can do this even if you offer the full asking price. If the mortgagee is Bank of America, they can make you wait as much as 6 months before saying "no" at which point you will hate them as much as I do. Almost.

One thing you should know - the bank may be able to force the Realtor to take a lower commission if the net proceeds are below their minimum threshold. This was the case in NC 2 years ago when I was active. That COULD have some bearing on the agent wanting you to not go with a lowball offer.

Good luck - every short sale is an adventure!

Name a shrub after me.  Something prickly and hard to eradicate.

Brujo Loco
Brujeria Teologica
#18 - 2013-01-24 18:24:28 UTC
Akita T wrote:
Brujo Loco wrote:
about 1200 to 2000$ per sq meter, thats ridiculous in a country where min wage is 400$ a month

Ours dropped even as low as 500 euro/sqm (especially for older buildings in less desirable areas) and are still dropping. However, minimum wage is under 200 euro/month (with the average wage at around 370 euro/month).


500sqm sounds nice to me, I can afford that with a good loan, but 1000kUSD and more? nuts!

Inner Sayings of BrujoLoco: http://eve-files.com/sig/brujoloco

Mars Theran
Foreign Interloper
#19 - 2013-01-26 03:30:49 UTC
Akita T wrote:
irishFour wrote:
First time home buyer, and I would like some popular consensus.

IMO, not a good time to buy houses.
Prices are holding steady or only slightly increasing, noticeably less than the inflation rate.
I would keep renting for another 4 years or so.
My gut tells me house prices will resume dropping (and most likely at a rapid rate) before then.
Lowball an offer at least 10% below similar properties in the area "for a limited time", and just wait it out, then if they accept it tell them the offer expired and offer even less.
And if you do buy it, be prepared to sell it in 2 years or so just as prices start dropping again.

Of course, my gut could be wrong.


Provided they have the ability to buy, 4 years at $1000 a month is $48000, assuming they are paying $1000/ month. Myself, the house I live in is $1250, and doesn't include power or gas, which adds up to another $450 every 2 months. It's also rather poor quality construction, and one has to wonder who bribed the inspectors to get it passed all the way through final.

Given that, it might be worth considering that housing prices are not likely to drop ~20% in 4 years. You might find something nicer in that time though, or even find that you have more to spend, or maybe, that you didn't have the money to spend. Life = unpredictable; we just like to think it so. I've learned the hard way, it is not.
zubzubzubzubzubzubzubzub
Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#20 - 2013-01-26 03:49:31 UTC
Mars Theran wrote:
Akita T wrote:
irishFour wrote:
First time home buyer, and I would like some popular consensus.

IMO, not a good time to buy houses.
Prices are holding steady or only slightly increasing, noticeably less than the inflation rate.
I would keep renting for another 4 years or so.
My gut tells me house prices will resume dropping (and most likely at a rapid rate) before then.
Lowball an offer at least 10% below similar properties in the area "for a limited time", and just wait it out, then if they accept it tell them the offer expired and offer even less.
And if you do buy it, be prepared to sell it in 2 years or so just as prices start dropping again.

Of course, my gut could be wrong.


Provided they have the ability to buy, 4 years at $1000 a month is $48000, assuming they are paying $1000/ month. Myself, the house I live in is $1250, and doesn't include power or gas, which adds up to another $450 every 2 months. It's also rather poor quality construction, and one has to wonder who bribed the inspectors to get it passed all the way through final.

Given that, it might be worth considering that housing prices are not likely to drop ~20% in 4 years. You might find something nicer in that time though, or even find that you have more to spend, or maybe, that you didn't have the money to spend. Life = unpredictable; we just like to think it so. I've learned the hard way, it is not.


You just predicted wrong Straight

"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny