All Encompassing Mortgage and Real Estate Thread

[Aqua Buddha 14600]

4 hours ago, Incredulity said:

Too much money chasing too few assets.  Inflation, how does it work?

Supply and demand is still a thing, too.  Demand for housing is still very strong.  Look at the rental market.  As long as supply is constrained, prices will stay what they are and we’re not in a bubble, in the traditional sense.

[Guest Lobo]

Probably nothing immediately changes, but Washington Prime declares for bankruptcy (c.11) earlier today.  

Their holdings in Austin include Lakeline Mall, Arbor Walk, the Arboretum shopping center, Gateway shopping center, and Georgetown.  In addition, several in Texas and several dozens around the nation.  Covid is their main reason for declaring.  Mostly held through REIT structure obviously.  Most properties expected to continue functionining as normal but yet another early domino.  

[tokamak 6433]

10 hours ago, Incredulity said:

Too much money chasing too few assets.  Inflation, how does it work?

Fed says it’s NBD. Don’t you believe them?

[UT_OB1 2224]

Lumber futures biggest drop ever!  Woo hoo!  We’re down to only 3x the 2015-2019 average 

[DonkeyCigars 143]

Is it crazy or illegal to do this (asking because it's financed conventionally, not cash bought):

1) Enter into a contract to buy a house when the prices were lower, builder was providing concessions, and lumber/supply chain issues were a blip

2) Finalize/Close on house after it's built, in the middle of housing and material shortage chaos

3) Don't even move into the house but flip it immediately for $100k+ profit

Asking for multiple friends

Edited June 16, 2021 by DonkeyCigars

[Gil Bang 25988]

Nothing illegal about that.   Happens ALL THE TIME. 

 

Is it crazy?  Depends on your situation.  

[Trey3216 15351]

1 hour ago, DonkeyCigars said:

Is it crazy or illegal to do this (asking because it's financed conventionally, not cash bought):

1) Enter into a contract to buy a house when the prices were lower, builder was providing concessions, and lumber/supply chain issues were a blip

2) Finalize/Close on house after it's built, in the middle of housing and material shortage chaos

3) Don't even move into the house but flip it immediately for $100k+ profit

Asking for multiple friends

Nothing illegal, but you don't get that tax benefit, or a place to live.  Have fun in the greenbelts  

[UT_OB1 2224]

Yeah, do what rich people do - get a heloc on it and get your equity and the increased property value in cash. Don’t pay taxes on the increased home value you got in cash (rent it so some else pays the loan).  Buy a boat. I think that is how it works. 

[Chewbacca 7781]

2 hours ago, Trey3216 said:

Nothing illegal, but you don't get that tax benefit, or a place to live.  Have fun in the greenbelts  

And transactional costs of selling a house are not inconsequential.  Commissions would eat a big chunk of that $100k and Uncle Sam would take another bite.  

[Chewbacca 7781]

35 minutes ago, UT_OB1 said:

Yeah, do what rich people do - get a heloc on it and get your equity and the increased property value in cash. Don’t pay taxes on the increased home value you got in cash (rent it so some else pays the loan).  Buy a boat. I think that is how it works. 

Edited June 16, 2021 by Chewbacca

[UTPhil2006 3809]

I just vote everyone cashes out up to the 80% limit in Texas on 3% interest rates 

[UT_OB1 2224]

Sounds great!  Is the check in the mail yet?

[StruggleBus 3922]

My home is worth a fuckton!

So are the ones I want to buy after selling this one. 

Fuck it, I'll just stay here. 

[Gil Bang 25988]

5 hours ago, DonkeyCigars said:

Is it crazy or illegal to do this (asking because it's financed conventionally, not cash bought):

1) Enter into a contract to buy a house when the prices were lower, builder was providing concessions, and lumber/supply chain issues were a blip

2) Finalize/Close on house after it's built, in the middle of housing and material shortage chaos

3) Don't even move into the house but flip it immediately for $100k+ profit

Asking for multiple friends

I want to re-state my answer to this:

If you intend to do the above, and you purchase the home with an owner-occupied mortgage, then, "technically", you "could" be guilty of mortgage fraud.  The chances of being prosecuted are nil, but yeah, it could be "illegal".

Now, if you intend to occupy the home but shit happens and you are unable to do so...that's a different story.  NOT LEGAL ADVICE.

[closetohumping 17456]

16 hours ago, Chewbacca said:

And transactional costs of selling a house are not inconsequential.  Commissions would eat a big chunk of that $100k and Uncle Sam would take another bite.  

Yep, on a 800k house, commission is 48k.  Yes, I know it's negotiable....

[closetohumping 17456]

14 hours ago, StruggleBus said:

My home is worth a fuckton!

So are the ones I want to buy after selling this one. 

Fuck it, I'll just stay here. 

That's the other thing.  "I paid 300k for this house, it's now worth 700k!"  Ok, great, are you willing to take a similar house at 700?  Or are you going up to a million?  Or are you moving to a lesser market?

[jimmyjazz 46049]

1 hour ago, closetohumping said:

Yep, on a 800k house, commission is 48k.  Yes, I know it's negotiable....

Probably closer to $56K-$60K, without negotiating realtor commissions.

[Guest Lobo]

This is a vague question, but it's the most appropriate thread for it (and may have been discussed way upthread)..........what are y'all's thoughts on disruptive companies in the residential transaction market like REX ( www.rexhomes.com )  ??????

[MoJames 8244]

1 minute ago, Lobo said:

This is a vague question, but it's the most appropriate thread for it (and may have been discussed way upthread)..........what are y'all's thoughts on disruptive companies in the residential transaction market like REX ( www.rexhomes.com )  ??????

Can you explain to me the thought process on your punctuation use. What type of question only requires 1 question mark vs 3 vs 6. Thanks.

[Guest Lobo]

Calm down Sally.  Typed it out at a stoplight and I guess held it down without noticing and just moved my thumb 2mm to the submit button.  It's a small phone and thus a small keyboard and I have huge hands.  out of all my lunacy, this is where to choose to take a stand?  Da fuh? 

[ZB'Tejas 593]

6 minutes ago, Lobo said:

Calm down Sally.  Typed it out at a stoplight and I guess held it down without noticing and just moved my thumb 2mm to the submit button.  It's a small phone and thus a small keyboard and I have huge hands.  out of all my lunacy, this is where to choose to take a stand?  Da fuh? 

Humble brag

[Incredulity 11681]

15 minutes ago, MoJames said:

Can you explain to me the thought process on your punctuation use. What type of question only requires 1 question mark vs 3 vs 6. Thanks.

Its a STRENUOUS question.  

 

Like a STRENOUS objection...

 

[Guest Lobo]

This is outrageous, lascivious, and downright tedious.  

And yes, ZB'tejas...it was a humblebrag.  My "combine" measurement comes in at 10.5"  from thumb to pinky.  Weird thing is my left hand is a full 1/2" shorter despite being ambidextrous.  I gotta call me agent. 

 

Seriously though...any residential real estate folks wanna weigh in on REX, would really appreciate it.  ?..?..!..?

Edited June 17, 2021 by Lobo

[ZB'Tejas 593]

4 minutes ago, Lobo said:

My "combine" measurement comes in at 10.5"  from thumb to pinky.  Weird thing is my left hand is a full 1/2" shorter despite being ambidextrous.  I gotta call me agent. 

Hey Kawhi, your team needs you back on the court

[Guest Lobo]

Sorry coach, I'll get back out there.  I am freaking out, I never noticed my left hand was 1/2" shorter than my right hand.  

I mean South Austin's Mom said something about it once but I never pay attention to her post-coitus. 

[Gil Bang 25988]

5 hours ago, closetohumping said:

Yep, on a 800k house, commission is 48k.  Yes, I know it's negotiable....

If the house in question is in a tract that has a sales office, model homes, etc, I wouldn't list with a realtor.  I'd FSBO that mofo.   Let the builder's dollars bring the buyers to your sign.  

[closetohumping 17456]

2 hours ago, Lobo said:

Sorry coach, I'll get back out there.  I am freaking out, I never noticed my left hand was 1/2" shorter than my right hand.  

I mean South Austin's Mom said something about it once but I never pay attention to her post-coitus. 

This is why my left thumb is two inches shorter than my right one.  Her rotten crotch burned it off.

[TKthunder2 4997]

6 hours ago, Lobo said:

Sorry coach, I'll get back out there.  I am freaking out, I never noticed my left hand was 1/2" shorter than my right hand.

Calm down Hudson Card.

[South Austin 52552]

17 hours ago, Lobo said:

 I gotta call me agent. 

You go do that, Pirate Lobo.

[CHIEF 5094]

Lobo, in this unprecedented seller's market where buyers are buying sight unseen REX makes some sense. If you are comfortable with getting the average price per square foot in your neighborhood, and if your house is nothing special, go for it. If the buyer has an agent you will still be responsible for their commission. The discount brokers around here charge 4%, 1% for them and 3% for the buyer's agent. On houses, we list, over $750k we charge 5% currently. I'm sure their is someone doing the same in your area. You need to decide if 1-2% of your home's value is enough money, that you are willing to take on the time and responsibility of all negotiations, time sensitivity of documents, negotiating repairs, picking offers that have the best chance of getting a finalized contract, etc. If you work 50-60 hours away from home, it's going to require a considerable amount of your work time. You will be the one responsible for scheduling repairs and letting the repairmen in and out.

CHIEF

[DonkeyCigars 143]

4 hours ago, CHIEF said:

Lobo, in this unprecedented seller's market where buyers are buying sight unseen REX makes some sense. If you are comfortable with getting the average price per square foot in your neighborhood, and if your house is nothing special, go for it. If the buyer has an agent you will still be responsible for their commission. The discount brokers around here charge 4%, 1% for them and 3% for the buyer's agent. On houses, we list, over $750k we charge 5% currently. I'm sure their is someone doing the same in your area. You need to decide if 1-2% of your home's value is enough money, that you are willing to take on the time and responsibility of all negotiations, time sensitivity of documents, negotiating repairs, picking offers that have the best chance of getting a finalized contract, etc. If you work 50-60 hours away from home, it's going to require a considerable amount of your work time. You will be the one responsible for scheduling repairs and letting the repairmen in and out.

CHIEF

Anecdote (your mileage may vary):

A friend of mine sold one of his rental houses for $602k. He paid $500 or so to direct list it so it hit the MLS. I had another friend sell a duplex for $1mm that he listed on Facebook marketplace and didn't even have to pay that $500 so that's an option too.

He offered 3.5% to the buyer agent because when they'd call he told them right off the jump: a) cash is preferred then conventional, nothing else will be entertained and b) you will be doing more little more work than usual because he doesn't have an RE. 

He took pictures with my iPhone and scheduled/was home for 2 showings, a grand total of 2 hours of time.

He saved $15k.

Out mutual buddy who is a Realtor actually agreed when he told us this. Just concurred that this market is too dang hot to fool around with a sellers agent. Anyone can look at comps that have sold, you then take your dream price you want to get for your house and you tack on 15-20%. Staging/photos/marketing-- all hogwash in this market.

Which brings me to my next point: I have another buddy I work with who has two DFW rental properties that are a couple of years old. One of the tenants was up and moved on, which he preferred because he was only getting $1900 from. He thought it was a good time to re-list, he listed for $2200 on Zillow. He got 30 calls in 30 minutes-- many offering "I'll pay $2500, etc.". There are just no rentals in the exurbs past Frisco (this is like Celina and Melissa and Anna, even).

Smoke 'em if you got 'em.

[DonkeyCigars 143]

23 hours ago, Gil Bang said:

If the house in question is in a tract that has a sales office, model homes, etc, I wouldn't list with a realtor.  I'd FSBO that mofo.   Let the builder's dollars bring the buyers to your sign.  

1000%

[Gil Bang 25988]

5 minutes ago, DonkeyCigars said:

Anecdote (your mileage may vary):

A friend of mine sold one of his rental houses for $602k. He paid $500 or so to direct list it so it hit the MLS. I had another friend sell a duplex for $1mm that he listed on Facebook marketplace and didn't even have to pay that $500 so that's an option too.

He offered 3.5% to the buyer agent because when they'd call he told them right off the jump: a) cash is preferred then conventional, nothing else will be entertained and b) you will be doing more little more work than usual because he doesn't have an RE. 

He took pictures with my iPhone and scheduled/was home for 2 showings a grand total of 2 hours of time.

He saved $15k.

Out mutual buddy who is a Realtor actually agreed when he told us this. Just concurred that this market is too dang hot to fool around with a sellers agent. Anyone can look at comps that have sold, you then take your dream price you want to get for your house and you tack on 15-20%. Staging/photos/marketing-- all hogwash in this market.

Which brings me to my next point: I have another buddy I work with who has two DFW rental properties that are a couple of years old. One of the tenants was up and moved on, which he preferred because he was only getting $1900 from. He thought it was a good time to re-list, he listed for $2200 on Zillow. He got 30 calls in 30 minutes-- many offering "I'll pay $2500, etc.". There are just no rentals in the exurbs past Frisco (this is like Celina and Melissa and Anna, even).

Smoke 'em if you got 'em.

The bolded part is where he fucked up, and almost certainly left money on the table.  

 

A competent realtor would have advised him to have multiple showings to generate multiple offers and get a bidding war started.

 

He lost more than 15,000 by only working with two buyers. 

[DonkeyCigars 143]

1 minute ago, Gil Bang said:

The bolded part is where he fucked up, and almost certainly left money on the table.  

 

A competent realtor would have advised him to have multiple showings to generate multiple offers and get a bidding war started.

 

He lost more than 15,000 by only working with two buyers. 

I think I agree with you.

I also think he thinks he got an Epic W. He got almost $100k more than what he thought was possible, etc. He just is ignorant to what the top could have really potentially been, maybe.

I guess if you want to move fast-- FSBO in a hot market will get you there the fastest and net you the most money in relation to speed. If you want to work the process and maximize every last dime, pay a professional.

[CHIEF 5094]

7 minutes ago, Gil Bang said:

The bolded part is where he fucked up, and almost certainly left money on the table.  

 

A competent realtor would have advised him to have multiple showings to generate multiple offers and get a bidding war started.

 

He lost more than 15,000 by only working with two buyers. 

We always advise to let a property show at least through one weekend. You never know when someone that works during the week sees a property on a Saturday or Sunday and absolutely falls in love and will bid whatever amount is needed to be the picked contract.

CHIEF

[Gil Bang 25988]

5 minutes ago, CHIEF said:

We always advise to let a property show at least through one weekend. You never know when someone that works during the week sees a property on a Saturday or Sunday and absolutely falls in love and will bid whatever amount is needed to be the picked contract.

CHIEF

Me too.  And now, post COVID here in CA, it's open houses on both weekend days. 

[Pato del Muerto 52555]

5 hours ago, CHIEF said:

Lobo, in this unprecedented seller's market where buyers are buying sight unseen REX makes some sense. If you are comfortable with getting the average price per square foot in your neighborhood, and if your house is nothing special, go for it. If the buyer has an agent you will still be responsible for their commission. The discount brokers around here charge 4%, 1% for them and 3% for the buyer's agent. On houses, we list, over $750k we charge 5% currently. I'm sure their is someone doing the same in your area. You need to decide if 1-2% of your home's value is enough money, that you are willing to take on the time and responsibility of all negotiations, time sensitivity of documents, negotiating repairs, picking offers that have the best chance of getting a finalized contract, etc. If you work 50-60 hours away from home, it's going to require a considerable amount of your work time. You will be the one responsible for scheduling repairs and letting the repairmen in and out.

CHIEF

In this unprecedented market, sellers don’t agree to making repairs. Houses are as is.  And if something is so bad that it can’t get a loan, then you look at cash buyers. 

[Mother mopar 3323]

Headed to Texas next weekend and we're looking at purchasing 10-50 acres of land (no home) around the Tyler area. Interest rates seems to be all over the place...any insight from thr experts? No debt, great credit..looking to put down cash for half of the purchase if it makes a difference.

[Wulaw Horn 19146]

36 minutes ago, Mother mopar said:

Headed to Texas next weekend and we're looking at purchasing 10-50 acres of land (no home) around the Tyler area. Interest rates seems to be all over the place...any insight from thr experts? No debt, great credit..looking to put down cash for half of the purchase if it makes a difference.
 

5 or 5.5 would be my guess?  I don’t do that myself. I’d call capital farm credit union but I don’t have a super strong opinion about that if someone else knows someone better. 

[Gil Bang 25988]

Yeah, I don't think the 50% down is anything special...that's about the norm for raw land purchases.

[Wulaw Horn 19146]

20 minutes ago, Gil Bang said:

Yeah, I don't think the 50% down is anything special...that's about the norm for raw land purchases.

30 is probably industry standard around here (greater Houston). 

[Guest Lobo]

7 hours ago, CHIEF said:

Lobo, in this unprecedented seller's market where buyers are buying sight unseen REX makes some sense. If you are comfortable with getting the average price per square foot in your neighborhood, and if your house is nothing special, go for it. If the buyer has an agent you will still be responsible for their commission. The discount brokers around here charge 4%, 1% for them and 3% for the buyer's agent. On houses, we list, over $750k we charge 5% currently. I'm sure their is someone doing the same in your area. You need to decide if 1-2% of your home's value is enough money, that you are willing to take on the time and responsibility of all negotiations, time sensitivity of documents, negotiating repairs, picking offers that have the best chance of getting a finalized contract, etc. If you work 50-60 hours away from home, it's going to require a considerable amount of your work time. You will be the one responsible for scheduling repairs and letting the repairmen in and out.

CHIEF

Thanks for the detailed reply.  Upon further sniffing around, the last 6 homes in our HOA all sold off-market/off MLS.  Three didn't have seller's agents.  All sold and settled in cash within 30 days as-is/no contingencies (besides the legally required inspection for dead bodies/asbestos/meth labs/etc).  And all 6 went for $100k+ over asking.  I realize that's a huge set of outliers.  You're right, 1% more money to us is not worth that much headache and hassle to us.  

No, my real question to you and others is what do you think of a company like REX as a company?  As a sustainable model?  As a future disruptor in the space?  

[Gil Bang 25988]

Shitheads. 

[Wulaw Horn 19146]

17 minutes ago, Lobo said:

Thanks for the detailed reply.  Upon further sniffing around, the last 6 homes in our HOA all sold off-market/off MLS.  Three didn't have seller's agents.  All sold and settled in cash within 30 days as-is/no contingencies (besides the legally required inspection for dead bodies/asbestos/meth labs/etc).  And all 6 went for $100k+ over asking.  I realize that's a huge set of outliers.  You're right, 1% more money to us is not worth that much headache and hassle to us.  

No, my real question to you and others is what do you think of a company like REX as a company?  As a sustainable model?  As a future disruptor in the space?  

No it’s not sustainable. Because the market you are talking about right now is pure fantasy land and a good agent actually does bring value to what they are doing. 
but yeah- when a moron can fall backwards into a pile of money sure, why not? 

[TKthunder2 4997]

4 hours ago, Wulaw Horn said:

No it’s not sustainable. Because the market you are talking about right now is pure fantasy land and a good agent actually does bring value to what they are doing. 
but yeah- when a moron can fall backwards into a pile of money sure, why not? 

That’s the problem, there just aren’t a bunch of good, much less great, agents.  I have tons of respect for good/great realtors, but majority of people that have realtor’s licenses are just stealing equity for the cost of an MLS listing and a lockbox.

[Assman 1830]

Lumber is below $900 for the first time since March 19th.

 

[TKthunder2 4997]

On 5/29/2021 at 1:34 PM, TKthunder2 said:

Drove by and saw this in our neighborhood.  It’s like $100/sqft more than the highest selling house in this area.  The lot is a little bigger than most but they are clearly trying to hide the square footage in all the promotional materials.

https://www.redfin.com/TX/Austin/10224-Spicewood-Mesa-78759/home/31323779

UPDATE: $100k price cut, now under contract I assume for less than list or someone is an idiot.

[Guest Lobo]

4 hours ago, Wulaw Horn said:

No it’s not sustainable. Because the market you are talking about right now is pure fantasy land and a good agent actually does bring value to what they are doing. 
but yeah- when a moron can fall backwards into a pile of money sure, why not? 

I don't think it's sustainable and I'm condemning either side.  I'm asking for an inside baseball opinion on what a company like REXhomes is doing in the space right now.  I'm not going to be enlisting them to sell my home.  My reasons are much more sinister.

[Wulaw Horn 19146]

39 minutes ago, TKthunder2 said:

That’s the problem, there just aren’t a bunch of good, much less great, agents.  I have tons of respect for good/great realtors, but majority of people that have realtor’s licenses are just stealing equity for the cost of an MLS listing and a lockbox.

Completely true. 
also a good agent will take good pictures. That matters. And have a good Rolodex for other vendors that are competent. There is value there as well. It’s not earth shattering, but it does add when the market isn’t stupid. 

[TKthunder2 4997]

3 minutes ago, Wulaw Horn said:

Completely true. 
also a good agent will take good pictures. That matters. And have a good Rolodex for other vendors that are competent. There is value there as well. It’s not earth shattering, but it does add when the market isn’t stupid. 

Yep, my realtor got us a great deal on our property in an ultra competitive bidding process (actually had us winning two bids, as I almost bought hornian’s house) and helped us get inspections (and even repairs after we closed) and negotiated an amazing deal that got us a property below list (unheard of now in this market, but I posted a screenshot a few pages back) in June 2020 when the market was starting this crazy run and then listed our old house and got the highest price per sq/ft in our area at that time.  She helped with staging, minor repairs, and most importantly accurate market analysis and pricing to maximize searchability, that had us 60 tours in 4 days and 20 offers with most of them being above list.  FSBO or a below average realtor would have cost us far more during these transitions.

Not to take away from any surly referrals, but just in case anyone is interested in Austin: https://moatsteam.com