All Encompassing Mortgage and Real Estate Thread

[Neonmoon 38130]

1 hour ago, Wulaw Horn said:

The power to correct the market pricing is in the realtors hands?

[jimmyjazz 47309]

There is no MSRP on a house.  It's very location dependent.  If I'm OK paying $5K above MSRP on a Camry, I'll pay the same in Cali as Ohio (small taxes, etc. difference).

I fail to be convinced that there is "overpricing" going on in local real estate markets.  The concept makes zero sense.  The price is the price, the selling price is the value.  Will that drop in the future?  Sure, maybe.  It may go up.  Such is the nature of the real estate market.

Edited April 13, 2023 by jimmyjazz

[Gil Bang 26250]

4 hours ago, Wulaw Horn said:

The power to correct the market pricing is in the realtors hands?  

Dude. It's like maybe you understand a little bit how this works while completely not understanding how this works.  Agents have little to no power over how much a house sells for.  Mortgage guys have zero power.  Appraisers in the aggregate have a little but in reality not much at all. You are talking about trying to hold back the tide man.  That's not how this works. 

The only thing in THIS realtor's hands is my rather pedestrian cock.

[Gravy Train 976]

42 minutes ago, jimmyjazz said:

I fail to be convinced that there is "overpricing" going on in local real estate markets.  The concept makes zero sense.  The price is the price, the selling price is the value.  

The concept makes plenty of sense to me when price appreciation unhinges from local economic fundamentals of wage growth and current construction costs.  

Moody's finds that current pricing among nearly all markets in the U.S. is overvalued.  

If "the price is the price," realtors wouldn't be playing games like delisting, then relisting (with a marginal change in price) just to reset the DoM indicator.  This has become more of a trend with flip inventory in attempt to secure a seller's desired margin. 

 

Edited April 13, 2023 by Gravy Train

[jimmyjazz 47309]

Eh, list price means little.  Selling price means everything.  If you're arguing that selling price is "overvalued", then you're just flat wrong.

[LCHorn 2751]

17 minutes ago, Gravy Train said:

The concept makes plenty of sense to me when price appreciation unhinges from local economic fundamentals of wage growth and current construction costs.  

Moody's finds that current pricing among nearly all markets in the U.S. is overvalued.  

If "the price is the price," realtors wouldn't be playing games like delisting, then relisting (with a marginal change in price) just to reset the DoM indicator.  This has become more of a trend with flip inventory in attempt to secure a seller's desired margin. 

 

It sounds like what you're saying is that you expect (and desire) greater price volatility for residential real estate; am I understanding that correctly?

I think you're thinking that the seller's preference for a certain amount of profit dictates more selling decisions that it does.  In my experience, sellers typically are selling because they need the money for something else.  Maybe it's different for institutional investors who have the ability to write off portfolio losses but they can't lose money indefinitely, either. 

[Gravy Train 976]

10 minutes ago, LCHorn said:

It sounds like what you're saying is that you expect (and desire) greater price volatility for residential real estate; am I understanding that correctly?

I think you're thinking that the seller's preference for a certain amount of profit dictates more selling decisions that it does.  In my experience, sellers typically are selling because they need the money for something else.  

Yes, where mortgage origination activity has been reduced by over 75% and the cost to purchase dramatically outpaces current rents, it's logical to expect greater price volatility. Should the cost to rent remain competitive (or become more aggressive as more units come online), this will pressure those investors who bought at the peak of the market.

Time to close often dictates listing price where an experienced agent should offer guidance to achieve the best outcome of both variables. 

Edited April 13, 2023 by Gravy Train

[LTtxfan 50035]

Thx for this discussion folks... definitely getting an education in this debate. 

Been wondering why new buyers that currently don't own a home are struggling to find what they want at an affordable price.

[Gil Bang 26250]

FWIW, my last closed deal was a waterfront condo in San Diego County for 1,125,000.  It was all-cash, and will be a 2nd home for a young couple (with a toddler and an infant).

My current deal which will close next week, is a block from the beach in San Diego County, the price is 832,500, my buyers are putting 600K down, and it will be a 2nd home for a couple with 3 teenage kids.

[Upgrayedd 5916]

20 minutes ago, Gil Bang said:

FWIW, my last closed deal was a waterfront condo in San Diego County for 1,125,000.  It was all-cash, and will be a 2nd home for a young couple (with a toddler and an infant).

My current deal which will close next week, is a block from the beach in San Diego County, the price is 832,500, my buyers are putting 600K down, and it will be a 2nd home for a couple with 3 teenage kids.

So, normal folks

[Neonmoon 38130]

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 investors. If you look at low wage growth and construction costs, the house is really worth 500K

Client: But someone will pay 700K

Realtor: That’s not right though. If I allow you to take advantage of current economic conditions, it will only contribute to the problem, and some people might not be able to afford a lake house 

Client: your fired 

[bluto 5000]

Just 6 weeks ago a house goes on market in a desirable hood at 375k, starter-ish 3-2 1600 sq ft. Dozens of offers in 24 hours, I bid 400 and lose the deal to another buyer who came in 401. Soooo ya

[Gravy Train 976]

1 hour ago, Neonmoon said:

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 investors. If you look at low wage growth and construction costs, the house is really worth 500K

Client: But someone will pay 700K

Realtor: That’s not right though. If I allow you to take advantage of current economic conditions, it will only contribute to the problem, and some people might not be able to afford a lake house 

Client: your fired 

Realtor:  We have three offers already at $550, $589, $590, would you like to entertain any of them?

Client: I'm just going to hold out for an offer near $700.  But our listing is already 68 days old, I'm concerned nobody is taking this seriously anymore

Realtor:  Should I share feedback from the last showings?  The first couple noted your HVAC system is 14 years old, the second couple shared concern of the rotting fence, the third stated they'd like to finance some home improvement funds to redo the kitchen.  None are able to qualify for loan amounts that exceed $630, as we're unsure your home will appraise for anything more than $550.

Client: Well isn't that convenient?  It's not like their appraisals from 2006 protected lenders from 2012 valuations, did they?!

 

[Wulaw Horn 19599]

14 minutes ago, Gravy Train said:

Realtor:  We have three offers already at $550, $589, $590, would you like to entertain any of them?

Client: I'm just going to hold out for an offer near $700.  But our listing is already 68 days old, I'm concerned nobody is taking this seriously anymore

Realtor:  Should I share feedback from the last showings?  The first couple noted your HVAC system is 14 years old, the second couple shared concern of the rotting fence, the third stated they'd like to finance some home improvement funds to redo the kitchen.  None are able to qualify for loan amounts that exceed $630, as we're unsure your home will appraise for anything more than $550.

Client: Well isn't that convenient?  It's not like their appraisals from 2006 protected lenders from 2012 valuations, did they?!

 

That’s literally not at all how it works dude. 
that client would get fired by a good agent and that client certainly isn’t pushing values higher than the market which was your contention. 
You really really don’t seem to understand how this works but here’s something pretty simple/ neither the realtor nor the agent nor the appraiser nor the sellers hopes and dreams and aspirations set the market value of a house- that’s set by what buyers are willing to pay for it in the maker and none of those factors I mentioned can Jack the price of a house up 10k, let alone 10% or something silly. 

[Gravy Train 976]

No, I completely get that, which is why in my very first post, I mentioned "I'm sidelined like the rest," either unwilling or not budgeted for the $200K premium in price escalation over just two years' time.  Nothing about these properties justifies their price, but there's usually another buyer who needs that home more than you do. That's not a justification of value to me, it's just a bubble that hasn't deflated yet.

Really, very few people are eager to jump into this historic affordability crunch, which is why this market is wiped out and we're in stalemate.  Wages will never come close to match, so "wanting this house more than the next guy" comes down to sometimes really unsound financial decisions or more creative ways to improve income.

With Texas' property tax structure, we're lucky this is a nondisclosure state.  But really, a $40K decrease in price is far more valuable to the buyer than $50K in concessions at closing.

[LCHorn 2751]

Well, I'll say this @Gravy Train, you have very interesting observations even if they appear to be somewhat obstinately misreading the mechanics of how the property market works. 

Perhaps we're trying to self-sooth with these kinds of hopes, but those of us in the industry think rates coming back down into the 5's and staying there is going to provide a psychological boost to the buyers needing to make a move.  If that happens it's not going to deflate your presumed bubble, it's just going to lock in what you categorize as a $200K premium further.  I suppose you can throw up your hands and complain about how stupid they are but there's 50 years of homeownership data supporting a conclusion it'll end up working out for them. 

I don't know where you're located but I'll add we'll likely need significant job losses, outflow of residents leaving the state, or both, to result in your desired outcome.  Both are the kinds of policy results that get elites fired or replaced while high property values are mostly just fucking over those who haven't got in yet. 

[Incredulity 11880]

Hot Take warning.

Unless one of the big institutions decides its time to get out of residential RE any decline in prices is going to take place over a years long period.  Individual home sellers are going to ask for what the neighbor down the street got and hold onto that ask like grim death.   

[UTPhil2006 3930]

9 minutes ago, LCHorn said:

Perhaps we're trying to self-sooth with these kinds of hopes, but those of us in the industry think rates coming back down into the 5's and staying there is going to provide a psychological boost to the buyers needing to make a move. 

Already is. Especially with >30yo buyers 

[gmr548 16704]

Realtor:  We have three offers already at $550, $589, $590, would you like to entertain any of them?
Client: I'm just going to hold out for an offer near $700.  But our listing is already 68 days old, I'm concerned nobody is taking this seriously anymore
Realtor:  Should I share feedback from the last showings?  The first couple noted your HVAC system is 14 years old, the second couple shared concern of the rotting fence, the third stated they'd like to finance some home improvement funds to redo the kitchen.  None are able to qualify for loan amounts that exceed $630, as we're unsure your home will appraise for anything more than $550.
Client: Well isn't that convenient?  It's not like their appraisals from 2006 protected lenders from 2012 valuations, did they?!
 

[Gravy Train 976]

19 minutes ago, LCHorn said:

Well, I'll say this @Gravy Train, you have very interesting observations even if they appear to be somewhat obstinately misreading the mechanics of how the property market works. 

Perhaps we're trying to self-sooth with these kinds of hopes, but those of us in the industry think rates coming back down into the 5's and staying there is going to provide a psychological boost to the buyers needing to make a move.  If that happens it's not going to deflate your presumed bubble, it's just going to lock in what you categorize as a $200K premium further.  I suppose you can throw up your hands and complain about how stupid they are but there's 50 years of homeownership data supporting a conclusion it'll end up working out for them. 

I don't know where you're located but I'll add we'll likely need significant job losses, outflow of residents leaving the state, or both, to result in your desired outcome.  Both are the kinds of policy results that get elites fired or replaced while high property values are mostly just fucking over those who haven't got in yet. 

Agreed and rates falling back into the 5s or upper 4s kinda cements this new standard of pricing.

13 minutes ago, Incredulity said:

Hot Take warning.

Unless one of the big institutions decides its time to get out of residential RE any decline in prices is going to take place over a years long period.  Individual home sellers are going to ask for what the neighbor down the street got and hold onto that ask like grim death.   

Not a hot take.  I considered what mechanics are needed to drive a more significant price correction across the country and it would take someone like a Blackstone or Invitation Homes to falter and turn over nearly all their inventory at once... or, another 2008-like financial crisis with a significant uptick in foreclosures, and that's not good for anyone, especially those who realize it just offers a better buying opportunity for other investors who had liquidity parked in places with less exposure.

But high property values fucks over everyone paying property tax and insurance, even those who don't need to sell, as the things that go into Escrow must be supplanted with additional income, and that's clearly not happening.

@gmr548: inflated price and/or mortgage terms keeps people from doing fun things with their homes, while others defer maintenance because so much of their income is locked into a monthly payment. Have a look at some listings now, realizing what that kind of money could have purchased just two years ago.

[Wulaw Horn 19599]

1 hour ago, Gravy Train said:

No, I completely get that, which is why in my very first post, I mentioned "I'm sidelined like the rest," either unwilling or not budgeted for the $200K premium in price escalation over just two years' time.  Nothing about these properties justifies their price, but there's usually another buyer who needs that home more than you do. That's not a justification of value to me, it's just a bubble that hasn't deflated yet.

Really, very few people are eager to jump into this historic affordability crunch, which is why this market is wiped out and we're in stalemate.  Wages will never come close to match, so "wanting this house more than the next guy" comes down to sometimes really unsound financial decisions or more creative ways to improve income.

With Texas' property tax structure, we're lucky this is a nondisclosure state.  But really, a $40K decrease in price is far more valuable to the buyer than $50K in concessions at closing.

Ok- see I agree with what you are saying here. Or if not agree per se believe it to be an imminently reasonable point of view. So why the nonsense about Appraisers, Brokers and agents having anything to do with setting higher prices for fat commissions?  That's just nonsensical and not a part of how anything operates.  

[Wulaw Horn 19599]

45 minutes ago, LCHorn said:

 

I don't know where you're located but I'll add we'll likely need significant job losses, outflow of residents leaving the state, or both, to result in your desired outcome.  Both are the kinds of policy results that get elites fired or replaced while high property values are mostly just fucking over those who haven't got in yet. 

This is what I tell everyone who asks me (usually in Houston) if they should sit it out and wait for prices to go down. 

Me- So- do you think there will be more or less people that live in Houston in 5 years from now?

Them- More of course

Me- Yeah- that's how I would bet

Me- so- when do you think God is going to make more land for us to build on?  Or, conversely how many more trees are there just waiting to be cut down to build more houses

Them- probably not going to happen- we don't have a ton of desirable places sitting around waiting for houses to be built.

Me- no- we don't. We are already a pretty sprawled out mess and everything that gets developed is less and less desireable.

Me- So- if there's more people going to be here and not an easy access to a ton of new houses to be built in desirable locations what's going to happen to price?

Them- Goes up? 

Me- yeah- that's the way I'd bet too.  That's not to say a certain house or neighborhood might not go down in value over a 6 month, year or 2 year period- but you are just hoping to get lucky and hoping to time the market. And by the way if you are wrong and they gain another 20% it might lock you out of buying totally and completely.  You want to risk that on the hope you might see a 5% depreciation in what you are looking to buy?

Them- probably not.

 

Note- this is a different conversation if the person is already a homeowner. In that case appreciation won't lock them out- it will just make their purchase more expensive while also making their sale more expensive.  So, that's not a big deal, but more for first timers- who are being hammered.  

[Wulaw Horn 19599]

42 minutes ago, UTPhil2006 said:

Already is. Especially with >30yo buyers 

Which is just kinda dumb b/c interest rates can always be renegotiated at a later date (for very little hassle and cost) if they get better. If they get worse you will wish you had that 6.5% or whatever rate it is.  But, feelings are a thing.  
Note- I'm not arguing to buy a house you cannot afford. That's never a good financial decision.  But, as I tell my buyers everyday- you don't spend interest rate at the grocery store, you spend dollars and cents. Get a house that makes sense for you financially. If rates get better- cool- your house got cheaper. If rates get worse- cool- you bought the house at the right time.  Good for you.  

[Gravy Train 976]

5 minutes ago, Wulaw Horn said:

Ok- see I agree with what you are saying here. Or if not agree per se believe it to be an imminently reasonable point of view. So why the nonsense about Appraisers, Brokers and agents having anything to do with setting higher prices for fat commissions?  That's just nonsensical and not a part of how anything operates.  

Because they're literally the agents of market transactions, even if they're mostly dickless wonders, but the truly shameful are in the Fed and House of Representatives for allowing REITs to shift from commerical to residential when COVID-19 and employers shifting to WFH gave them the green light.  It's amusing to me that some of those who made a killing in that era are griping that they have to return to their prior estetician jobs due to the current health of the market... that's the sandbox they play in.

Moody's can ring alarm bells about overpriced markets all day long, but someone out there is coaching a seller - and their buyers - to pay for unrealistic valuations that landed us in this market, where shelter costs account for 33% of CPI, and has been a bullseye on JPOW's dart board.  Of course, none of those working in this industry are financial advisors, despite a home being the most valuable purchase an American will make in their life.

[Catpfish 618]

Just an FYI, you don't reset the Days on the Market just by pulling a listing off the MLS.  It has to be off for a certain amount of time.  30 days to reset Active Days on the Market and 90 days to reset the Cumulative Days On the Market.  Even then, the information is still readily available with the listing to see the history of the listing (including instances where the listing number changes).

[Gravy Train 976]

16 minutes ago, Wulaw Horn said:

This is what I tell everyone who asks me (usually in Houston) if they should sit it out and wait for prices to go down. 

That's a much more realistic measure of explaining the agent's bullshit line of "Marry the house, date the rate!"  Okay, sure, you can refinance, but not after paying commissions, appraisal, and more closing fees.  It should be, "Marry the PRICE, date the rate."  The idea that the rate can be changed later should market conditions improve, but a bad price is locked in forever.  

Travis County price corrections are more than ancedotal evidence but it's worse elsewhere, where 10% of recent buyers are already underwater on their mortgages.

[Mother mopar 3388]

Which is just kinda dumb b/c interest rates can always be renegotiated at a later date (for very little hassle and cost) if they get better. If they get worse you will wish you had that 6.5% or whatever rate it is.  But, feelings are a thing.  
Note- I'm not arguing to buy a house you cannot afford. That's never a good financial decision.  But, as I tell my buyers everyday- you don't spend interest rate at the grocery store, you spend dollars and cents. Get a house that makes sense for you financially. If rates get better- cool- your house got cheaper. If rates get worse- cool- you bought the house at the right time.  Good for you.  

Date the rate, marry the house.

[jimmyjazz 47309]

Is this some weird version of "fuck, marry, kill"?

[Gravy Train 976]

1 minute ago, Catpfish said:

Just an FYI, you don't reset the Days on the Market just by pulling a listing off the MLS.  It has to be off for a certain amount of time.  30 days to reset Active Days on the Market and 90 days to reset the Cumulative Days On the Market.  Even then, the information is still readily available with the listing to see the history of the listing (including instances where the listing number changes).

I think any change in the listing, including price, can allow that home to be relisted, thuse resetting DoM.  Sure, the information is still available, but are prospective buyers also in the MLS to track down aged listing numbers?

[Incredulity 11880]

Fuck: the realtor (the bottle blonde high end home realtor)

Marry: the house

Kill:  the appraiser

[Gil Bang 26250]

You really don't understand how things work.

I've got a deal in escrow right now.  My clients are paying over-asking for a house near the beach.    Did I "coach" them to "pay too much"?  
Yeah, sure.  They told me "we really want this place...what do we need to get it".   My response was "make your first offer your BEST offer, because you probably won't get an opportunity to negotiate further.   So, we agreed to offer slightly over-asking.

Did I serve my clients' best interests?  I sure as fuck did. They wanted this house, and I helped them get it.  They were hootin' and hollerin' when I called them to tell them the deal was accepted.  They pulled their kids from school the next day to bring them down to show them the place. They're fucking stoked. 

Now, on my previous deal, I was the listing agent.  My client hired me to act in his interest.  I got him the highest price ever paid in the building.  He was pretty fucking happy too.  And guess what...they buyers were also happy that their offer was accepted.

 

[Gil Bang 26250]

5 minutes ago, Gravy Train said:

I think any change in the listing, including price, can allow that home to be relisted, thuse resetting DoM.  Sure, the information is still available, but are prospective buyers also in the MLS to track down aged listing numbers?

I agree that you think that.

[Catpfish 618]

9 minutes ago, Gravy Train said:

I think any change in the listing, including price, can allow that home to be relisted, thuse resetting DoM.  Sure, the information is still available, but are prospective buyers also in the MLS to track down aged listing numbers?

Again, Days on Market follow the address, not the listing number.  Making changes to the listing do not affect either measure.

The ADOM can be "stopped" by the house going pending, but they restart the second the house goes back active.  I can't see it making much sense to pull the house off of the market for 30 days to reset ADOM or 90 days to reset CDOM.  You are cutting off your nose to spite your face if you are really looking to sell.

 

Edited April 13, 2023 by Catpfish
Further clarification

[UTPhil2006 3930]

9 minutes ago, Incredulity said:

Kill:  the appraiser

The last few months - this!

[Gil Bang 26250]

7 minutes ago, Incredulity said:

Fuck: the realtor (the bottle blonde high end home realtor)

Marry: the house

Kill:  the appraiser

What's the appraiser's job?    Really, can all of you guys that have a hardon for appraisers even define what the appraiser is supposed to do? 

[Gravy Train 976]

4 minutes ago, Catpfish said:

Again, Days on Market follow the address, not the listing number.  Making changes to the listing do not affect either measure.

I see that now, MLS database integrity follows cumulatively on the address.  it's the third-party listing services (ie Redfin, Zillow) that are removed/relisted more frequently... but how can they be refreshed to show as "new" if the MLS doesn't change?

[UTPhil2006 3930]

10 minutes ago, Gil Bang said:

What's the appraiser's job?    Really, can all of you guys that have a hardon for appraisers even define what the appraiser is supposed to do? 

Take forever to turn in lazy and sometimes incorrect comps. 

[Incredulity 11880]

18 minutes ago, Gil Bang said:

What's the appraiser's job?    Really, can all of you guys that have a hardon for appraisers even define what the appraiser is supposed to do? 

Provide the bank an "independent" opinion on the value of a home to meet government regulations.

Edited April 13, 2023 by Incredulity

[Kwix 2497]

24 minutes ago, Catpfish said:

Again, Days on Market follow the address, not the listing number.  Making changes to the listing do not affect either measure.

The ADOM can be "stopped" by the house going pending, but they restart the second the house goes back active.  I can't see it making much sense to pull the house off of the market for 30 days to reset ADOM or 90 days to reset CDOM.  You are cutting off your nose to spite your face if you are really looking to sell.

 

I'm a prospective buyer with limited knowledge of the industry and no special access to anything, but It takes me about 15 seconds to see this info by looking at a listing on realtor.com.  Always scratch my head when I see one of these.

 

[UTPhil2006 3930]

3 minutes ago, Kwix said:

I'm a prospective buyer with limited knowledge of the industry and no special access to anything, but It takes me about 15 seconds to see this info by looking at a listing on realtor.com.  Always scratch my head when I see one of these.

 

Yeah the agent can see that plus status (active pending etc) plus the listing agent(s) plus pricing changes 

[Gil Bang 26250]

8 minutes ago, UTPhil2006 said:

Yeah the agent can see that plus status (active pending etc) plus the listing agent(s) plus pricing changes 

plus confidential remarks and showing instructions

[Gil Bang 26250]

20 minutes ago, Incredulity said:

Provide the bank an "independent" opinion on the value of a home to meet government regulations.

Yeah, what is "value"?  

It's defined as: "most probable sales price in an arm's-length transaction,  given reasonable exposure to the marketplace, with buyer and seller each motivated by self-interest".  And, it's a snapshot.  It's the most probable sales price on the day that the report is dated. 

I've had deals that appraised lower than my sales price, when I had MULTIPLE offers at my sales price.  I've argued with appraisers plenty of times. 

The waterfront deal I talked about upthead, the one with the fantastic views; it's a 17 story building.  16 stories with 4 units on each floor, with identical footprints, and 3 larger "penthouse" units up top.

My square footage is 1364.   The appraiser measured it at 1320. Meh, whatever.   Here's the pisser: he used other units in the building as comps, and dinged me for having lower square footage.  

MOTHERFUCKER, ALL OF THE UNITS HAVE THE SAME FOOTPRINT!

Edited April 13, 2023 by Gil Bang

[UTPhil2006 3930]

10 minutes ago, Gil Bang said:

plus confidential remarks and showing instructions

Right. I was moreso meaning on the transaction history tab 

[Wulaw Horn 19599]

2 hours ago, Catpfish said:

Just an FYI, you don't reset the Days on the Market just by pulling a listing off the MLS.  It has to be off for a certain amount of time.  30 days to reset Active Days on the Market and 90 days to reset the Cumulative Days On the Market.  Even then, the information is still readily available with the listing to see the history of the listing (including instances where the listing number changes).

Are you a dickless wonder?  How else would you know that.  

Thanks for the information.

[Gravy Train 976]

Wouldn't it be cool if the buyer had access to that information without asking their realtor for it, or even before considering the property for an offer? 

Although I'd imagine any good realtor shares such background with their client before submitting an offer.  I haven't transacted since 2018, when shit seemed sensical and one could FSBO with a good RE atty and local title office.

[Catpfish 618]

54 minutes ago, Wulaw Horn said:

Are you a dickless wonder?  How else would you know that.  

Thanks for the information.

I thought about signing the post The Dickless Wonder, but that seemed presumptuous...besides, I'm a little sensitive about missing body parts

Edited April 13, 2023 by Catpfish

[UTPhil2006 3930]

54 minutes ago, Gravy Train said:

Wouldn't it be cool if the buyer had access to that information without asking their realtor for it, or even before considering the property for an offer? 

Although I'd imagine any good realtor shares such background with their client before submitting an offer.  I haven't transacted since 2018, when shit seemed sensical and one could FSBO with a good RE atty and local title office.

Yes that is pertinent information so any realtor worth a salt is going to go over that with the client before any offer is submitted 

[Gil Bang 26250]

Redfin has executed another round of layoffs, the latest round of cuts as the company reacts to a down housing market.

The company confirmed to Inman that 201 employees were impacted by the latest round of layoffs were primarily in the real estate support department, but some unidentified executives were also let go. Those affected were informed on Tuesday.

The portal and online brokerage cited general economic uncertainty alongside the ongoing housing downturn as its reasoning for the cuts, which made up 4 percent of its staff.

“While another layoff is painful, especially for those leaving the company, Redfin must continue to adapt to the current economic climate,” the firm said in a statement. “The people leaving Redfin have been wonderful colleagues, and if they wanted to return, we’d welcome them back in a stronger housing market.”

Those affected will receive 10-15 weeks of severance depending on tenure and healthcare coverage for three months.

It is the third round of cuts for the company since the housing market began to shift in 2022 on the heels of higher mortgage rates. In June it laid off about 470 employees, representing 8 percent of its headcount at the time. In the fourth quarter of 2022 it shed another 13 percent of its staff and shuttered its nascent iBuying operation RedfinNow.

The effect of the down market on Redfin’s finances was on full display in its fourth quarter earnings report. Its revenues during the quarter were down 25 percent from the year prior, and its losses increased to $61.9 million from $27 million a year before.

In announcing their November round of layoffs, CEO Glenn Kelman predicted that the market would continue to shrink throughout 2023.

“A layoff is awful but we can’t avoid it. We plan to keep increasing our share of the market, but that market in 2023 is likely to be 30% smaller than it was in 2021,” he wrote in an all hands email. “The June layoff was a response to our expectation that we’d sell fewer houses in 2022; this layoff assumes the downturn will last at least through 2023.”

The real estate industry at large has gradually been shedding staff since mortgage rates hit 20 year highs in 2022. Compass executed its third round of layoffs in January as it struggles to reduce its operating expenses. Anywhere has conducted two rounds of layoffs between August and January, reducing its staff by 11 percent total, while portal giant Zillow laid off 300 staffers in October.

One of the employees affected by the most recent cuts was Patty Rivas, who worked as a transaction coordinator for Redfin for four years.

Unfortunately I am one of the 200 people laid off from Redfin today. It’s been a big roller coaster ride the last 4 years with Redfin, but wouldn’t trade it for anything,” she wrote in a Linkedin post on Wednesday. “Redfin has laid off amazing, hard working, and dedicated employees, which are hard to find [nowadays]. I am a true believer, when one door closes, another one opens.”

[Gil Bang 26250]

59 minutes ago, Gravy Train said:

Wouldn't it be cool if the buyer had access to that information without asking their realtor for it, or even before considering the property for an offer? 

Although I'd imagine any good realtor shares such background with their client before submitting an offer.  I haven't transacted since 2018, when shit seemed sensical and one could FSBO with a good RE atty and local title office.

Yeah sure.  Realtors built and maintain the MLS, and pay for access ($640/yr in my case) but any swinging dick should be able to obtain all of the MLS information for free!

 

[jimmyjazz 47309]

Always love the "impacted by layoffs", "affected by layoffs", "reduction in force" mumbo jumbo.

You fired them.