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UTPhil2006

By UTPhil2006
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UTPhil2006

UTPhil2006 3807

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28 minutes ago, KYHorn said:

Any recs for someone trying to sell right now? Just continue to keep it on the market and hope for a buyer, keep lowering the price, wait until next spring...? Trying to help my brother sell his house in Corpus in the 210-230k range. 3/2. 

DM the link to the listing. 

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mchookem
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alrighty...i haven't wanted to jinx anything so i've been pretty quiet... but we just closed on our new home in Denver this morning so i can now officially say YEAH! 😃 in a nutshell - we sold

Esque
Esque

Thank you for this - gave me a good laugh.  But also a good reminder of how the general public does not understand what is going on in real estate and thus why so many get caught offsides when the tid

Neonmoon
Neonmoon

Realtor: You should list your house at 500K Client: But three houses down the street sold for 700K Realtor: Yeah, but those are overvalued due to pandemic Fed policy and institutional invest

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KYHorn

KYHorn 17094

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18 minutes ago, Wulaw Horn said:

I mean- the market almost everywhere still favors sellers if the seller is at all reasonable in their list price/expectations. 
make sure the pictures and MLS listing are really good would be the first place I would look to if it’s not getting any traffic. Beyond that, make sure the price is in the middle of the comp range if he actually wants to sell vs hit a pie in the sky number. 

Pics are absolutely the main problem I'm working on right now. Realtor must have a damn flip phone. Also considering staging. 

17 minutes ago, UTPhil2006 said:

DM the link to the listing. 

Will do. Thanks.

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Wulaw Horn

Wulaw Horn 19123

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At least we are only down 53 basis points at this moment in time which is another 1/8 of a point in the market.  6.25 here we come (as of tomorrow- if we don't rally).  

I told my processor she should just go on vacation in October so that she can tell herself she's on vacation and not unemployed (she's a contract processor and awesome- I wasn't firing her or anything, just a little gallows humor).  It's tough out there right now. Borrowers. Professionals, etc.  This feels like a bigger shitburger than 2008. I was in title during that time and not in mortgage, so I'm not comparing apples to apples or anything, but yeah- pretty brutal right now. I wonder how many people are exiting the business or preparing to exit the business as we speak? 

I'm in this longterm b/c I love the nature of getting paid by someone else to help a buyer in the most important financial decision of their life, and I think we help people navigate the process pretty well.  People jumping out of the industry, on some level, is good for me, but I also have a bunch of friends in the business and it hurts to see so many people hurting.  Last numbers I saw yesterday were refi apps down 85% and purchase apps down 29% YOY.  What we had was too overheated and boy did we suck a ton of future value out and spend it all during the last 2 or 3 years setting up a pretty bleak time right now in the industry.      

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crash_davis

crash_davis 23114

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Austin Centric posts. I came across two interesting real estate things.

1. Good article about the NIMBYism in Austin, and prob the rest of the state.

https://www.texasmonthly.com/news-politics/austin-affordable-housing-nimby/

2. Map of AirBNBs in Austin. That's a lot of homes/condos/apartments which are not owned by single families and renters. I imagine this is similar to maps of major cities all across the US. We wonder why we have availability and affordability issues.

3phe18wi3vn91.png?width=960&crop=smart&a

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Wulaw Horn

Wulaw Horn 19123

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2 hours ago, StassneyHorn said:

With a lot of money shifting out of equities does it make more sense to start making extra payments towards principal as an owner in 78745? I love the idea of dollar cost averaging down, but I am looking to sell within 3 years and thought paying down would be a better choice.

What’s your interest rate?

if it starts with a 2 I can’t imagine it being a better decision to pay down your mortgage than doing something else with it. Buy inflation bonds or something like that. Or even a damn CD and you should be able to beat the likely 2.75 you have on your rate. 
 

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StassneyHorn

StassneyHorn 6618

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5 hours ago, Wulaw Horn said:

What’s your interest rate?

if it starts with a 2 I can’t imagine it being a better decision to pay down your mortgage than doing something else with it. Buy inflation bonds or something like that. Or even a damn CD and you should be able to beat the likely 2.75 you have on your rate. 
 

3.99

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Incredulity

Incredulity 11675

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12 hours ago, StassneyHorn said:

With a lot of money shifting out of equities does it make more sense to start making extra payments towards principal as an owner in 78745? I love the idea of dollar cost averaging down, but I am looking to sell within 3 years and thought paying down would be a better choice.

No more dip buying?  Interesting.

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smoothlonghorn

smoothlonghorn 83

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Alright Pros, another question (let's be honest, it's not like we have much better to do and my butter knives are getting dull against my wrists).

Daughter & Father are buying home together (TX). They've all decided they only want the parents on title--I know Conventional allows Co-Signers, but Title is going to require her to be removed from Purchase Contract = I think that is still ok from our (lending) side? Also, side note: will it matter how she checks the "Do you intend to occupy this property box"? = I think she intends to live there = can you have an occupying Co-Signer? Thanks all!

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Neonmoon

Neonmoon 38129

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2 minutes ago, smoothlonghorn said:

Alright Pros, another question (let's be honest, it's not like we have much better to do and my butter knives are getting dull against my wrists).

Daughter & Father are buying home together (TX). They've all decided they only want the parents on title--I know Conventional allows Co-Signers, but Title is going to require her to be removed from Purchase Contract = I think that is still ok from our (lending) side? Also, side note: will it matter how she checks the "Do you intend to occupy this property box"? = I think she intends to live there = can you have an occupying Co-Signer? Thanks all!

For it to be a primary residence loan, she has to move in within 60 days. Unless she is the non-occupant co-borrower in the situation. She also has to be on title.

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UTPhil2006

UTPhil2006 3807

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11 minutes ago, smoothlonghorn said:

Alright Pros, another question (let's be honest, it's not like we have much better to do and my butter knives are getting dull against my wrists).

Daughter & Father are buying home together (TX). They've all decided they only want the parents on title--I know Conventional allows Co-Signers, but Title is going to require her to be removed from Purchase Contract = I think that is still ok from our (lending) side? Also, side note: will it matter how she checks the "Do you intend to occupy this property box"? = I think she intends to live there = can you have an occupying Co-Signer? Thanks all!

If I'm reading this right, she would be a non occupying co borrower.

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UTPhil2006

UTPhil2006 3807

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14 minutes ago, smoothlonghorn said:

Alright Pros, another question (let's be honest, it's not like we have much better to do and my butter knives are getting dull against my wrists).

Daughter & Father are buying home together (TX). They've all decided they only want the parents on title--I know Conventional allows Co-Signers, but Title is going to require her to be removed from Purchase Contract = I think that is still ok from our (lending) side? Also, side note: will it matter how she checks the "Do you intend to occupy this property box"? = I think she intends to live there = can you have an occupying Co-Signer? Thanks all!

Do you have other properties?  I'm assuming this would be a secondary residence?

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Wulaw Horn

Wulaw Horn 19123

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Got a mom selling to son in law and lender is fine CTC but getting push back from title. Anyone know a title company that’s ok with an affidavit of- we are moving out or something like that?  They actually are so that’s not Bs, but mom is moving in with another kid to help them with some health stuff etc. and leave the newleyweds alone. 
thanks

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UTPhil2006

UTPhil2006 3807

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9 minutes ago, Wulaw Horn said:

Got a mom selling to son in law and lender is fine CTC but getting push back from title. Anyone know a title company that’s ok with an affidavit of- we are moving out or something like that?  They actually are so that’s not Bs, but mom is moving in with another kid to help them with some health stuff etc. and leave the newleyweds alone. 
thanks

If anyone can do it the lady we use can do it.  I'll PM her info.

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hornian

hornian 5219

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7 hours ago, Wulaw Horn said:

Got a mom selling to son in law and lender is fine CTC but getting push back from title. Anyone know a title company that’s ok with an affidavit of- we are moving out or something like that?  They actually are so that’s not Bs, but mom is moving in with another kid to help them with some health stuff etc. and leave the newleyweds alone. 
thanks

Man I hate that shit. Assuming this is in Texas I pushed back for my law partner when she was buying her mothers house. Title Co Atty sent the case law they thought was their ace in the hole. We shot all kids of holes in it, it had literally nothing to do with the actual situation (in the case the lender lent money to someone for a “purchase money mortgage” to buy a family members house on a sale that didn’t actually happen, so the person who signed the deed of trust didn’t actually own the home, and there was no ability to foreclose). Got the message back that essentially “we don’t care. We still won’t issue a title policy, good luck finding someone who does.” It wasn’t worth the fight so we gave it up; but it goes to show you; it doesn’t matter what’s legally correct in this situation.  
 

Also, makes me want to start a title company. “Fuck you, pay me” as a business model seems nice. 

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Wulaw Horn

Wulaw Horn 19123

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1 minute ago, hornian said:

Man I hate that shit. Assuming this is in Texas I pushed back for my law partner when she was buying her mothers house. Title Co Atty sent the case law they thought was their ace in the hole. We shot all kids of holes in it, it had literally nothing to do with the actual situation (in the case the lender lent money to someone for a “purchase money mortgage” to buy a family members house on a sale that didn’t actually happen, so the person who signed the deed of trust didn’t actually own the home, and there was no ability to foreclose). Got the message back that essentially “we don’t care. We still won’t issue a title policy, good luck finding someone who does.” It wasn’t worth the fight so we gave it up; but it goes to show you; it doesn’t matter what’s legally correct in this situation.  
 

Also, makes me want to start a title company. “Fuck you, pay me” as a business model seems nice. 

Look man as a real estate attorney and former title guy for a lot of years I get it. 
If it was on my desk there’d be an affidavit in the file and the deal would be closed already. 

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Incredulity

Incredulity 11675

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17 hours ago, Wulaw Horn said:

In the sense that prices weren’t going to collapse. The gridlock is from low supply which will keep prices up. That’s the difference this time, not that it won’t suck. 

Disagree.  Carrying costs are going through the roof.  The economics of debt financed landlording has been flipped on its head.  Compounded by inverse TINA.  

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jimmyjazz

jimmyjazz 45985

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On 9/14/2022 at 12:58 PM, jimmyjazz said:

Things might change in the August numbers, but so far Austin real estate still seems to be cooking, if perhaps at not quite the same pace as it was a year ago.  For July:

 

Median price:  + 11.1%

Months inventory: 2.4 months (6 months is considered "balanced")

Sales volume:  down 35.3% (sales dollar volume down 28.7%)

New listings: down 0.8%

August numbers (year over year):

Median price:  + 3%

Months inventory: 2.4 months (+1.5 months year over year, flat month over month)

Sales volume:  down 30% (sales dollar volume down 22%)

New listings:  down 12%

 

Sort of a mixed bag, depending on one's perspective.  Median price appears to be leveling off, months inventory appears to have leveled off, sales volume is declining but not as much as in July, new listings are declining at a more rapid rate.

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Wulaw Horn

Wulaw Horn 19123

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Same drill as always, not a commitment to lend. This is average loan size, we can often do better, blah blah blah.  Bleak.  At least we are already down 27 bips today making it even worse today.

30-YR. CONFORMING

6.192% +0.026

30-YR. JUMBO

5.899% +0.016

30-YR. FHA

5.930% +0.003

30-YR. VA

5.820% +0.036

30-YR. USDA

6.033% +0.101

15-YR. CONFORMING

5.354% +0.041
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bluto

bluto 4932

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6 hours ago, Wulaw Horn said:

If prices don’t fall then today is the right day to buy. This supply thing is a real motherfucker. Unless we end up with more of it prices will be supported. 

I’m no economist/housing expert but tend to agree to some extent. But there’s absolutely still fumes to burn off current list prices I’m seeing. Sellers still pricing at 3% interest rate monthly payment levels. 

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KYHorn

KYHorn 17094

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Are y'all seeing any sellers choose to rent their house out until a higher-demand season? Maybe not as much of a thing in Austin, but am currently considering it and have heard others choosing to do the same. Hard to imagine rates will still be this high in May, but who knows.

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Wulaw Horn

Wulaw Horn 19123

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2 minutes ago, KYHorn said:

Are y'all seeing any sellers choose to rent their house out until a higher-demand season? Maybe not as much of a thing in Austin, but am currently considering it and have heard others choosing to do the same. Hard to imagine rates will still be this high in May, but who knows.

I’ve got a guy or two looking to do that. If you have enough for a downpayment on the next house I would say do it. 

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Wulaw Horn

Wulaw Horn 19123

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9 hours ago, bluto said:

I’m no economist/housing expert but tend to agree to some extent. But there’s absolutely still fumes to burn off current list prices I’m seeing. Sellers still pricing at 3% interest rate monthly payment levels. 

Very very very possible. And real estate is so localized. When I talk about price supports or trends or the like I have to use macro numbers or it’s nonsense and gibberish. 

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Esque

Esque 135

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I'm not struggling to find the article, but there were some statistics released of percent of total mortgages under 3% and under 4%, which were eye catching.  Given the environment, if you're locked into one of these mortgages - why would you EVER sell?  Would just hire a property management company and rent it out.  Free money given cost of capital.  At the bare minimum wait for a few years since carrying costs is so low and you'll get solid rent in the meantime.

This is one of my biggest concerns.  We had so much activity in new home sales and refinancing that there's zero reason to move if you're locked into a good rate.  This artificially restricts supply and encourages current owners to rent before they consider a sale.  Will only sell if they absolutely have to, and even then why would you sell then buy into a market at 6.50% interest rates?  The knock on your monthly payment is huge.  Better off to sit still and improve your current home to make it work for a few years.

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Neonmoon

Neonmoon 38129

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12 minutes ago, Esque said:

I'm not struggling to find the article, but there were some statistics released of percent of total mortgages under 3% and under 4%, which were eye catching.  Given the environment, if you're locked into one of these mortgages - why would you EVER sell?  Would just hire a property management company and rent it out.  Free money given cost of capital.  At the bare minimum wait for a few years since carrying costs is so low and you'll get solid rent in the meantime.

This is one of my biggest concerns.  We had so much activity in new home sales and refinancing that there's zero reason to move if you're locked into a good rate.  This artificially restricts supply and encourages current owners to rent before they consider a sale.  Will only sell if they absolutely have to, and even then why would you sell then buy into a market at 6.50% interest rates?  The knock on your monthly payment is huge.  Better off to sit still and improve your current home to make it work for a few years.

Different strokes for different folks. Maybe you’re getting divorced and have to sell. Maybe you’re leaving the hellfires of California or the sweatsack of Texas heat. Maybe you’re offered a new job in a different location. People move all the time that has nothing to do with interest rates in the conversation. 

For people that don’t have to move. There are some that will try to time the market. Which is fine, but they fail to recognize the supply issue. It’s not getting fixed anytime soon. So it’s a yo-yo right now. Either take a higher rate with a less competitive market and softening prices or wait for a lower rate with 25+ offer market and crazy over ask. 

pick your poison 

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Wulaw Horn

Wulaw Horn 19123

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37 minutes ago, Esque said:

I'm not struggling to find the article, but there were some statistics released of percent of total mortgages under 3% and under 4%, which were eye catching.  Given the environment, if you're locked into one of these mortgages - why would you EVER sell?  Would just hire a property management company and rent it out.  Free money given cost of capital.  At the bare minimum wait for a few years since carrying costs is so low and you'll get solid rent in the meantime.

This is one of my biggest concerns.  We had so much activity in new home sales and refinancing that there's zero reason to move if you're locked into a good rate.  This artificially restricts supply and encourages current owners to rent before they consider a sale.  Will only sell if they absolutely have to, and even then why would you sell then buy into a market at 6.50% interest rates?  The knock on your monthly payment is huge.  Better off to sit still and improve your current home to make it work for a few years.

Many people don’t want to be a landlord. 
many people need to sell their house for their next down payment. 
many people don’t want equity trapped in a rental house if they have something else they’d rather be doing with it financially. 
that said, everything you said about the benefits of retaining a house with a 3% interest rate in this market is true and many people will hold onto the house and rent it out for all the reasons you said. 

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Incredulity

Incredulity 11675

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psychologically

a loan on an asset with 40% equity, cashflow and operational headaches is one thing.

a loan on an asset with -20% equity, low/no cashflow and operational headaches is another.

 

as the equity erodes the motivation to sell increases until the accumulated lost equity becomes the motivation to not sell.

 

 

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