All Encompassing Mortgage and Real Estate Thread

[UT_OB1 2197]

6 hours ago, 52-80 said:

i hadnt increased the rent on my tenant for 3 years, and it already started below market when I offered to him.

was gonna send a notice of increase when he made unsolicited proposal to buy the place instead.  numbers will come later.  i think i wanna do it...but dont wanna take the tax hit

1031 it in to a new rental?  I thought I’d read that you could even 1031 in to some rei 

[UTPhil2006 3773]

Not earth shattering news, but Rocket Mortgage upped their conventional loan limit to 715k yesterday, and UWM followed suit today with the same.

[Neonmoon 38126]

2 hours ago, UTPhil2006 said:

Not earth shattering news, but Rocket Mortgage upped their conventional loan limit to 715k yesterday, and UWM followed suit today with the same.

Buying a 715K house and only putting down 21K is stupid good. 

[Mother mopar 3275]

Buying a 715K house and only putting down 21K is stupid good. 

Tracking...I'll put down 22K.

[closetohumping 17302]

I think dual agency is illegal in 8 states including Texas.  But curious what the groups thoughts are?   Can you be ethical representing both sides of a transaction?

[Neonmoon 38126]

43 minutes ago, closetohumping said:

I think dual agency is illegal in 8 states including Texas.  But curious what the groups thoughts are?   Can you be ethical representing both sides of a transaction?

Define ethical

[closetohumping 17302]

Just now, Neonmoon said:

Define ethical

Ability to make sure both sides get what they feel is the best deal?  Not attacking realtors or even the practice but just curious on your thoughts.  For example you know the sellers bottom number.  Do you tell the buyer this?

[MAUFRAIS 6561]

I choose business ethics.

[Neonmoon 38126]

3 hours ago, closetohumping said:

Ability to make sure both sides get what they feel is the best deal?  Not attacking realtors or even the practice but just curious on your thoughts.  For example you know the sellers bottom number.  Do you tell the buyer this?

If you know the seller's bottom number, telling the buyer would be considered unethical. At the same time, withholding valuable information from your buyer is also unethical. You are representing competing interests. You cannot represent both equally, and thus should be disallowed from doing do. 

[Dbeasy 14791]

No, you shouldn’t represent both sides. However, I did have a client who wanted to make an offer and purchase without an agent. I informed him I worked for the seller, and made him sign an acknowledgement of that, then  helped him with the forms and process so he understood how to proceed. Worked great for everyone. He got a better price because there was no buying agent and my client paid less commission. 

[ChickenSandwich 9769]

20 minutes ago, Dbeasy said:

No, you shouldn’t represent both sides. However, I did have a client who wanted to make an offer and purchase without an agent. I informed him I worked for the seller, and made him sign an acknowledgement of that, then  helped him with the forms and process so he understood how to proceed. Worked great for everyone. He got a better price because there was no buying agent and my client paid less commission. 

Had that situation come up before and the selling agent told her client he signed for 6% and if there was no buyers agent she would simply keep the 6% for herself instead of passing the savings to the deal. She was a real winner 

Edited September 8, 2022 by ChickenSandwich

[Wulaw Horn 18919]

5 minutes ago, ChickenSandwich said:

Had that situation come up before and the selling agent told her client he signed for 6% and if there was no buyers agent she would simply keep the 6% for herself instead of passing the savings to the deal. She was a real winner 

What a cunt. So stupid. 

[closetohumping 17302]

46 minutes ago, Neonmoon said:

If you know the seller's bottom number, telling the buyer would be considered unethical. At the same time, withholding valuable information from your buyer is also unethical. You are representing competing interests. You cannot represent both equally, and thus should be disallowed from doing do. 

But i believe it’s legal in 42 states excluding Texas.  My house isn’t on the market but realtors have wanted to list my house and said “I’ve already got a buyer for you.”   
 

I have no issue with colleagues at the same brokerage working opposite sides of course

[closetohumping 17302]

9 minutes ago, ChickenSandwich said:

Had that situation come up before and the selling agent told her client he signed for 6% and if there was no buyers agent she would simply keep the 6% for herself instead of passing the savings to the deal. She was a real winner 

Things like this is what makes non realtors nervous to sign 

[Dbeasy 14791]

1 hour ago, ChickenSandwich said:

Had that situation come up before and the selling agent told her client he signed for 6% and if there was no buyers agent she would simply keep the 6% for herself instead of passing the savings to the deal. She was a real winner 

To be fair, the agent keeping all 6% was probably entitled to it as per the contract she signed with the seller, but this is another example of why clients like working with me. I often give them a contract that waives that 3% if I find a buyer that doesn’t want an agent representing them. 

[Catpfish 618]

You should be able to specify in the listing agreement that you will not allow dual agency and make that a prerequisite for listing the house.  You could allow an intermediary which is the form that the same office representation takes in Texas.  Essentially, the broker/designated broker is the intermediary and then you have your agent and the buyer has theirs.  The agents should not disclose anything to each other anything that is not required.

 

 

[Wulaw Horn 18919]

Good article with some inside Baseball about what’s going on with mortgage companies for people that are interested. If you are in the industry not surprising and you probably already know all of this but interesting for lay people 

 

https://wolfstreet.com/2022/09/07/mortgage-lender-woes/

[LCHorn 2564]

30 minutes ago, Wulaw Horn said:

Good article with some inside Baseball about what’s going on with mortgage companies for people that are interested. If you are in the industry not surprising and you probably already know all of this but interesting for lay people 

 

https://wolfstreet.com/2022/09/07/mortgage-lender-woes/

Thanks for sharing; I don't know who his audience is but the goobers in the comment section are fit for TexAgs.  All of them want to pile on mortgage lenders like something unethical has gone on. 

 

[Wulaw Horn 18919]

3 minutes ago, LCHorn said:

Thanks for sharing; I don't know who his audience is but the goobers in the comment section are fit for TexAgs.  All of them want to pile on mortgage lenders like something unethical has gone on. 

 

I don’t ever read comments section on anything. 

[Scipio 61]

On 9/7/2022 at 9:54 AM, UT_OB1 said:

1031 it in to a new rental?  I thought I’d read that you could even 1031 in to some rei 

Too often, 1031s are a seductive trap where investors let the tax tail wag the investment dog. The time to identify and close on the new property passes much more quickly than you perceive. You end up rushing into a C level asset with extreme pressure to close, no matter what due diligence reveals.

I'd look at CRE investing where you can offset capital gains with Year 1 depreciation losses.

Delaware Statutory Trusts are for marks or the elderly content to earn their fee laden 5.5% so they can enjoy life. 

[closetohumping 17302]

2 hours ago, Scipio said:

Too often, 1031s are a seductive trap 

You leave @South Austins mom out of this

[Incredulity 11198]

 

I literally remember being pissed when she ate Boba Fett

[Sam Lin 3535]

8 hours ago, Wulaw Horn said:

I don’t ever read comments section on anything. 

You do realize Surly is basically one big comments section?

[Wulaw Horn 18919]

8 hours ago, Sam Lin said:

You do realize Surly is basically one big comments section?

Populated by smart people, with an ignore function, not morons. 

[Sam Lin 3535]

12 minutes ago, Wulaw Horn said:

Populated by smart people, with an ignore function, not morons. 

Are you sure you aren't thinking of Sarlyhorns?

[Neonmoon 38126]

With these rates, I might just sort of take the next couple months off. Not really, but…sort of 

[UTPhil2006 3773]

Just now, Neonmoon said:

With these rates, I might just sort of take the next couple months off. Not really, but…sort of 

Won’t be missing out on much. 

[Gil Bang 25689]

On 9/8/2022 at 5:42 AM, closetohumping said:

I think dual agency is illegal in 8 states including Texas.  But curious what the groups thoughts are?   Can you be ethical representing both sides of a transaction?

Yes, and if dual agency weren't allowed, the industry  would suffer greatly.  Here's why:  In CA (and I assume elsewhere), the "BROKER" does the transaction.  The agent works under the broker's name/license.  My broker has a few thousand agents.  That scale allows my broker to provide amazing training, technology, and advertising that a smaller office simply couldn't provide (we have several full-time graphic artists in house, for example).  If dual agency were prohibited, large brokerages would disappear overnight, and you'd end up with a bunch of mom and pop shops in shitty strip malls with 2 or 4 agents, no training, and no advertising budget. 

On 9/8/2022 at 10:32 AM, closetohumping said:

But i believe it’s legal in 42 states excluding Texas.  My house isn’t on the market but realtors have wanted to list my house and said “I’ve already got a buyer for you.”   
 

I have no issue with colleagues at the same brokerage working opposite sides of course

Those realtors are bullshitting you.   They don't have a buyer.   And if they did, your answer should be "great...when my house hits the MLS, your buyer can  make an offer".  Don't fall for that bullshit.  Or, say "you don't need a listing to bring me an offer".   I know where you are...your house isn't a tough sale. 

[closetohumping 17302]

45 minutes ago, Gil Bang said:

Yes, and if dual agency weren't allowed, the industry  would suffer greatly.  Here's why:  In CA (and I assume elsewhere), the "BROKER" does the transaction.  The agent works under the broker's name/license.  My broker has a few thousand agents.  That scale allows my broker to provide amazing training, technology, and advertising that a smaller office simply couldn't provide (we have several full-time graphic artists in house, for example).  If dual agency were prohibited, large brokerages would disappear overnight, and you'd end up with a bunch of mom and pop shops in shitty strip malls with 2 or 4 agents, no training, and no advertising budget. 

Those realtors are bullshitting you.   They don't have a buyer.   And if they did, your answer should be "great...when my house hits the MLS, your buyer can  make an offer".  Don't fall for that bullshit.  Or, say "you don't need a listing to bring me an offer".   I know where you are...your house isn't a tough sale. 

I think I’m a bit uneducated here.   So I have no issues with two reps from Coldwell working a deal.   My issue would be one agent repping both.   I’d feel awkward at best.  
 

good and bad in every industry.   I once told my moms agent her bottom number and what do you know the offer was for that number.   No counter 

[Gil Bang 25689]

8 minutes ago, closetohumping said:

I think I’m a bit uneducated here.   So I have no issues with two reps from Coldwell working a deal.   My issue would be one agent repping both.   I’d feel awkward at best.  
 

good and bad in every industry.   I once told my moms agent her bottom number and what do you know the offer was for that number.   No counter 

Yeah, the two reps from Coldwell...that's "dual agency".  And you fucked up telling that agent that number. 

But seriously, as an agent I do what I think is "best" for my client, be they buyer or seller.   You and I may disagree about what's best, but I'm probably right about it.  I've told many a seller "hey, this is a good offer and they aren't asking for much, and you should give them what they want and close this deal and get on with your life".  And, I've told many a buyer "I will do whatever you direct me to do, but it's my opinion that  you're being unreasonable here and the seller is gonna tell you to fuck right off and then we're starting over at square one". 

Like I said, I'm usually right.  Once in a while a client makes it a dick-measuring contest, and almost always, both parties lose when that happens.  

And, if we're arguing over a few bucks, or a few thousand bucks, well, i'll usually try to eat the shit sandwich myself out of my commission. 

[closetohumping 17302]

2 minutes ago, Gil Bang said:

Yeah, the two reps from Coldwell...that's "dual agency".  And you fucked up telling that agent that number. 

But seriously, as an agent I do what I think is "best" for my client, be they buyer or seller.   You and I may disagree about what's best, but I'm probably right about it.  I've told many a seller "hey, this is a good offer and they aren't asking for much, and you should give them what they want and close this deal and get on with your life".  And, I've told many a buyer "I will do whatever you direct me to do, but it's my opinion that  you're being unreasonable here and the seller is gonna tell you to fuck right off and then we're starting over at square one". 

Like I said, I'm usually right.  Once in a while a client makes it a dick-measuring contest, and almost always, both parties lose when that happens.  

And, if we're arguing over a few bucks, or a few thousand bucks, well, i'll usually try to eat the shit sandwich myself out of my commission. 

This was an agent representing us not the buyer.  So do we keep that to ourselves?  I thought agents were advocates of their buyer or seller?

[Gil Bang 25689]

54 minutes ago, closetohumping said:

This was an agent representing us not the buyer.  So do we keep that to ourselves?  I thought agents were advocates of their buyer or seller?

Yes, the agent is supposed to be your advocate.  But you accomplish nothing by telling them about your hole card in terms of bottom line.  

But in reality, the agents want to get the deal done.  If I'm repping a buyer, I call the listing agent and ask "what are you looking to accomplish here?".   If they are smart, they will tell me.   Maybe it's maximum dollars.  Maybe it's a quick close.  Maybe it's no repairs because the house has deferred maintenance and the seller doesn't have the cash or ability to get the repairs done. 

If I've got the listing, a smart agent will ask the same questions.  Maybe the answer is "this is a divorce, both parties want to max out on net cash".  Or, "this is a military PCS, and the seller needs a quick close (to buy elsewhere) and a rent-back".  

Edited September 11, 2022 by Gil Bang

[closetohumping 17302]

3 minutes ago, Gil Bang said:

Yes, the agent is supposed to be your advocate.  But you accomplish nothing by telling them about your hole card in terms of bottom line.  

But in reality, the agents want to get the deal done.  If I'm repping a buyer, I call the listing agent and ask "what are you looking to accomplish here?".   If they are smart, they will tell me.   Maybe it's maximum dollars.  Maybe it's a quick close.  Maybe it's no repairs because the house has deferred maintenance and the seller doesn't have the cash or ability to get the repairs done. 

If I've got the listing, a smart agent will ask the same questions.  Maybe the answer is "this is a divorce, both parties want to max out on net cash".  Or, "this is a military PCS, and the seller needs a quick close (to by elsewhere) and a rent-back".  

Good to know.   

[Gil Bang 25689]

Let's assume that I'm repping a buyer.  Let's assume that the buyer is a Marine Officer that's being PCS'd out here.  Let's assume that he  wants to get moved in before the new school year because his kids have changed schools so many times before and he wants them settled in before September rolls around.  

I think I'm serving his best interests by sharing some of that information with the listing agent, so we can get a deal together that benefits both buyer and seller. 

[closetohumping 17302]

12 hours ago, Gil Bang said:

Let's assume that I'm repping a buyer.  Let's assume that the buyer is a Marine Officer that's being PCS'd out here.  Let's assume that he  wants to get moved in before the new school year because his kids have changed schools so many times before and he wants them settled in before September rolls around.  

I think I'm serving his best interests by sharing some of that information with the listing agent, so we can get a deal together that benefits both buyer and seller. 

I get it. We all have different motivations and I gave you limited information.  Best interest for your client is subjective.  I just thought it was a helluva coincidence  because the number was right on the dot, non negotiable.  If she told the buyer our bottom number, I think that’s a bit unethical.   But flip side is “hey got you what you want what’s the problem” as well

[Wulaw Horn 18919]

We are down again today right now 14 points.  I expect to see us in the 6's tomorrow morning.  I think it topped out at 6.08 or something like that on this metric.  Big inflation report tomorrow and then tough comparisons toward the end of the year.  Expectation is inflation down 0.1 in August and down to 8.1 in the YOY. If that happens should get the pressure out of interest rates and see them ease down between now and then. If the inflation report looks ugly again, who tf knows?

As always, this is average of deals locked through my loansifter. We usually do better, this is not an offer to lend blah blah blah.

30-YR. CONFORMING

5.963% +0.019

30-YR. JUMBO

5.732% +0.031

30-YR. FHA

5.792% +0.043

30-YR. VA

5.583% +0.002

30-YR. USDA

5.716% +0.050

15-YR. CONFORMING

5.194% +0.059

[Neonmoon 38126]

CPI up to 8.3% 

10 year up to 3.42

cool 

[Wulaw Horn 18919]

https://www.housingwire.com/articles/do-we-have-a-mortgage-rate-lockdown-problem/

pricing isn’t getting lower bc of supply as I’ve maintained would be a problem with people not wanting to trade in their house with a low rate for a new one. 
it’s going to be a real shit Sandwhich if we can’t get a handle on inflation to state the obvious. 

[Neonmoon 38126]

Yep. Run into those people all the time. Why would I sell a 3% and jump into a 6%?

 

[Wulaw Horn 18919]

3 minutes ago, Neonmoon said:

Yep. Run into those people all the time. Why would I sell a 3% and jump into a 6%?

 

Some people have to move, obviously. Many people don’t have to move and as such won’t move. 

[UTPhil2006 3773]

1 hour ago, Wulaw Horn said:

https://www.housingwire.com/articles/do-we-have-a-mortgage-rate-lockdown-problem/

pricing isn’t getting lower bc of supply as I’ve maintained would be a problem with people not wanting to trade in their house with a low rate for a new one. 
it’s going to be a real shit Sandwhich if we can’t get a handle on inflation to state the obvious. 

Well the bread the plate and the shit is already out on the table 

[Wulaw Horn 18919]

13 minutes ago, UTPhil2006 said:

Well the bread the plate and the shit is already out on the table 

Oh no doubt. Now the question is what’s the duration of this bad boy. And I think it’s looking more like long and hard and jammed up the ass, like @South Austin’s mom likes it. 

[MeerkatBong 115]

On 9/8/2022 at 12:03 PM, Dbeasy said:

No, you shouldn’t represent both sides. However, I did have a client who wanted to make an offer and purchase without an agent. I informed him I worked for the seller, and made him sign an acknowledgement of that, then  helped him with the forms and process so he understood how to proceed. Worked great for everyone. He got a better price because there was no buying agent and my client paid less commission. 

I did exactly this. Would recommend 10/10.

[Chet Steadman 940]

Took a glance at the last ten MLS updates I received in the Highland Hills/NW Hills areas:

-Two new listings

-One back on market

-Seven price reductions

That seems not good Bob.  I don’t think I’ve seen more than five or six reductions in the last two years prior 

[UTPhil2006 3773]

58 minutes ago, Chet Steadman said:

Took a glance at the last ten MLS updates I received in the Highland Hills/NW Hills areas:

-Two new listings

-One back on market

-Seven price reductions

That seems not good Bob.  I don’t think I’ve seen more than five or six reductions in the last two years prior 

As mentioned above or in a report, a lot of people are standing pat, or moved over summer.  Usually slow after summer as it is, and with rates at ~6% most people are standing pat unless they absolutely have to move.

[jimmyjazz 45212]

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%

[LCHorn 2564]

1 hour ago, jimmyjazz said:

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

As someone who makes their living on this number, let me tell you it’s no small thing.  

[jimmyjazz 45212]

Just now, LCHorn said:

As someone who makes their living on this number, let me tell you it’s no small thing.  

Sure, I get it.  I'm coming at the issue from the position of a homeowner.  Outside of rising taxes, which are annually capped, I want to see prices continue to rise.  I don't really care that fewer houses are selling.  Those in the business of selling houses have a completely different motivation.

[KYHorn 16728]

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. 

[Wulaw Horn 18919]

25 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. 

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.