Buying a House

[UTPhil2006 3,812]

9 hours ago, After irth said:

Will try to keep this short. 

House-hunting.  Planning long-term, but who the hell knows anymore...?

Found a great house that suits all my needs. Updated, well-cared for, on 3 acres...just perfect. 

Two lots down is a salvage yard. Looks like shit. 

Rest of the street is hit-or-miss in regards to size, quality, upkeep, etc.  Just your average rural road a few miles outside of the nearest town.  

After a few cursory internet searches, I discover terms such as “external obsolescence”. 

Regardless of the vocabulary, should I just forget this and run?  Will it just bite me in the ass when/if I ever have to sell?

What town is this?  Or near?

[After irth 1,244]

8 minutes ago, UTPhil2006 said:

What town is this?  Or near?

Lufkin

[UTPhil2006 3,812]

8 minutes ago, After irth said:

Lufkin

Gotcha.  Well the junkyard likely isn't going anywhere.  Just depends how much you really like the property, how long you're gonna stay there, if you're gonna go below asking price, what the appraisal comes back as, etc.  

[Gil Bang 26,020]

15 hours ago, After irth said:

Will try to keep this short. 

House-hunting.  Planning long-term, but who the hell knows anymore...?

Found a great house that suits all my needs. Updated, well-cared for, on 3 acres...just perfect. 

Two lots down is a salvage yard. Looks like shit. 

Rest of the street is hit-or-miss in regards to size, quality, upkeep, etc.  Just your average rural road a few miles outside of the nearest town.  

After a few cursory internet searches, I discover terms such as “external obsolescence”. 

Regardless of the vocabulary, should I just forget this and run?  Will it just bite me in the ass when/if I ever have to sell?

Don't walk away...RUN. 

[UTPhil2006 3,812]

Did you buy it?

[Nolacycling 893]

Closing Friday. My pyramid. I will die in this house.

[UTPhil2006 3,812]

Coming soon in Memorial 3/2 remodeled Townhome 1800 sq ft -$ 292,500

(new pics will be posted here when they get in)..

Coming soon in Spring 4/3 2600 sq ft - $389900 

Both will be up by Thursday

[Gil Bang 26,020]

those your flips?

[UTPhil2006 3,812]

The one in Memorial isn't ours ours, just one of the guys we work with and list for them

The one in Spring was supposed to be basically just a get them out of a foreclosure, but ended up being a decent amount of work upgrading it, so sort of a flip

[Gil Bang 26,020]

Are you seeing foreclosures?  

They are few out here. 

[Sbbruin 21,887]

3 minutes ago, Gil Bang said:

Are you seeing foreclosures?  

They are few out here. 

Because most people are able to sell their way out of them, yes?

[UTPhil2006 3,812]

Not that many.  This kind of fell in our laps, as it was a friend's friend or coworker or something and basically needed a quick cash close.

[Gil Bang 26,020]

30 minutes ago, Sbbruin said:

Because most people are able to sell their way out of them, yes?

Yes.  The market appreciation has been the key for that.  The only foreclosures I've seen have been folks that have been buried by HERO/PACE loans that they couldn't afford.

New windows, HVAC, Solar Panels, etc.

[Gil Bang 26,020]

hey Bruin...did you ever sell that family member's house?

[Dbeasy 15,092]

Not that many.  This kind of fell in our laps, as it was a friend's friend or coworker or something and basically needed a quick cash close.

Phil as you probably know I’ll look at those types of deals in Austin if they pop up.

[UTPhil2006 3,812]

10 hours ago, Dbeasy said:

Phil as you probably know I’ll look at those types of deals in Austin if they pop up.

For sure.  I'll be in Austin this weekend for the LSU series or Monday afterwards if you wanna grab drinks/lunch and sit down with Thad and figure out a plan.  A lot of these we take ourselves, but we have a client in Austin (the one on the Memorial home above) who is doing a lot of flips and may look to partner/assist etc.

[Sbbruin 21,887]

hey Bruin...did you ever sell that family member's house?

Estate sale this weekend and then it goes on the market.

[UTPhil2006 3,812]

Memorial home - https://www.redfin.com/TX/Houston/15179-Kimberley-Ct-77079/unit-54/home/30344592

[Guest]

I am moving 600 miles from current residence.

1) is it possible to leverage probable profits from selling and/ or equity in current home towards the financing of new home

2) what is the best way to have the best chance for timing the transition/ move  to only having one mortgage payment per month.

credit score is 810 and income/ debt ratio is solid with ONE mortgage, but I don’t see getting financed for two concurrent deals as described on what I have researched on bridge loans.

3) how dopeople make this work on the timing?

[Gil Bang 26,020]

1) That's a Phil question, but probably not.

As to 2 and 3, what you need to do is sell your current home with a pre-negotiated rent-back from the new buyer.  As to the new home, you purchase it "contingent"" on the sale of your existing home.  Your new loan will be approved with conditions, one of which is the full payoff of the existing mortgage. 

In a hot market, contingent offers aren't great, but in a stable market, they work fine. 

 

[Guest]

I have a feeling it will not take long to sell in H-town.  I am much more concerned with bullshit hiccups in closing on a new home.  I really don't want to move our shit twice either, even if it is to/ from storage for a month.

How does everyone else pull this off?  rent first in the new town?

[Gil Bang 26,020]

I'd worry  more about problems on the sale end, not on the buy. 

And yes, unless you are VERY familiar with the new town, I'd rent first.  Figure out what part of town you want to be in, etc. 

 

[Gil Bang 26,020]

where are you going?   New job or some other reason to celebrate, I hope?

[Guest]

same company, lateral move,  but a locale I vacated about 16 years ago with limited roles there; returning due to better family situation and we are older.  we are semi-familiar with the area.  First time we rented.  Now we are owners.

Our elderly parents would be less than 2 hours away, as opposed to 9.

Family on my dad's side less than 7 hours away, as opposed to 16+ now.

Much family on hers and my side  right at 2 hours away, as opposed to 9 now.

Very solid chance my son will end up less than 6 hours away when he gets out of Army.

 

[Gil Bang 26,020]

that's awesome dude.  Congrats

[Updawg 2,286]

Rent and put a lot of non essental stuff in a pod or something similar until you find a permanent place

[horn4life 3,783]

On 11/28/2018 at 9:27 PM, After irth said:

Will try to keep this short. 

House-hunting.  Planning long-term, but who the hell knows anymore...?

Found a great house that suits all my needs. Updated, well-cared for, on 3 acres...just perfect. 

Two lots down is a salvage yard. Looks like shit. 

Rest of the street is hit-or-miss in regards to size, quality, upkeep, etc.  Just your average rural road a few miles outside of the nearest town.  

After a few cursory internet searches, I discover terms such as “external obsolescence”. 

Regardless of the vocabulary, should I just forget this and run?  Will it just bite me in the ass when/if I ever have to sell?

The butt fucking you will get when trying to sell the house next to the salvage yard will far surpass anthing you ever thought of... because you will beg to get fucked and it will take FOREVER!!!!!

[Gil Bang 26,020]

I don't know...when the guy put the place next door to Fred Sanford on the market, Julio bought it right away, so YMMV

[Guest]

We had open house Saturday.  Several showings.

Family makes full price offer late Sunday afternoon, with request for us to pay Title Policy and warrantee($2k and not unusual for seller to cover)

Then wanted us to also pay $5 towards closing cost.

We counter that we'll pay the $2k, but they can kicks rocks on just taking $5k of our equity 2 days out of the box on selling the house.  

This morning they accept the offer.  About an hour ago they call back and say they gotta have the $5k in closing costs.  i tell agent to tell them GFThemsleves...only nicer.

Am I wrong?

[Gil Bang 26,020]

Nope not wrong. But, you should only be looking at your net. It don’t make a shit if you’re covering closing costs if you’re walking with nice money.

 

Three weeks from now, you may regret not taking this deal.

 

What price range are we talking? What % of a discount is the 5k?

[Sbbruin 21,887]

Why did you counter that you'd pay $1,995 more than what they had originally asked for?  Your negotiating skills need some fine tuning.

[Updawg 2,286]

I read it as $4995. But I'm no realtor

[Guest]

17 minutes ago, Sbbruin said:

Why did you counter that you'd pay $1,995 more than what they had originally asked for?  Your negotiating skills need some fine tuning.

Sorry it was $5k.  My mistake.

I gave $2k in good faith towards a meeting/ negotiable price.  I disagreed on the additional $5k towards selling costs.

Expected them to come back and ask for $2500.

I guess what bugs me is that they accepted our counter offer and then "thought about it" and the $5k just irked them that much 10 hours later.

 

WTF ever...

 

and gil... $5k is about 2.4% of asking price but about 7% of what we'd clear.  Margins matter to me.

I realize that it don't make a shit if there's no buyer.  It'd be different if we were not only 2 days in.

Edited April 2, 2019 by slorch

[Gil Bang 26,020]

1 hour ago, slorch said:

Sorry it was $5k.  My mistake.

I gave $2k in good faith towards a meeting/ negotiable price.  I disagreed on the additional $5k towards selling costs.

Expected them to come back and ask for $2500.

I guess what bugs me is that they accepted our counter offer and then "thought about it" and the $5k just irked them that much 10 hours later.

 

WTF ever...

 

and gil... $5k is about 2.4% of asking price but about 7% of what we'd clear.  Margins matter to me.

I realize that it don't make a shit if there's no buyer.  It'd be different if we were not only 2 days in.

So, (out here), the seller pays home warranty on 99% of deals.  And seller pays "owners" title insurance 99% of the time.  The buyer typically pays the title policy for the lender. 

Was this your situation, or did they ask you to pay ALL of the title insurance.  Was this a FHA deal?

[Guest]

8 minutes ago, Gil Bang said:

So, (out here), the seller pays home warranty on 99% of deals.  And seller pays "owners" title insurance 99% of the time.  The buyer typically pays the title policy for the lender. 

Was this your situation, or did they ask you to pay ALL of the title insurance.  Was this a FHA deal?

Their initial offer was "full price" if we picked up the title policy($1500) and home warranty($500) and paid $5000 of their closing cost.

We countered with  "full price" minus the title policy($1500) and home warranty($500)

They accepted.  Then recanted about 10 hours later.

VA financing.

 

To your point earlier, it's nickel and dime bullshit, but holy fuck, be a gotdam man about what you're going to do...and if you're unwilling to negotiate, then don't be asking concessions. JMHO.

Edited April 2, 2019 by slorch

[Gil Bang 26,020]

It's more likely a matter of "we don't have money for closing costs" rather than "not being a man". 

 

Did  you review a bank statement and a loan pre-approval before accepting? 

[Guest]

9 minutes ago, Gil Bang said:

It's more likely a matter of "we don't have money for closing costs" rather than "not being a man". 

 

Did  you review a bank statement and a loan pre-approval before accepting? 

My Realtor did and said cash flow isn't the issue.  Also have other intel( don't ask me how) that potential buyer has been a PITA for his own realtor.

 

We'll see.  i don't expect the world to come to me.  and if they'd said no to our initial counter, it would have been a hellofa lot more consistent.

 

Edited April 2, 2019 by slorch

[Gil Bang 26,020]

I'd ask to see that stuff myself if I were you.

As to the pre-approval, I'd direct my agent to call the lender to verbally confirm what they've looked at.  Have they done a full underwriting?  Credit report?  Or, did they just say fuck it and write the letter?

The other intel probably came from the buyer's agent.  Realtors must represent their client's best interest, but we also need to work together to get shit  done.  And, there's a good chance that two agents paths will cross again.  If my client's being a dick in the middle of the deal, I'll absolutely tell the other agent that my client's being a dick.  Otherwise, they think I'm a dick and they may not want to accept an offer from me in the future. 

[Guest]

that might have been exactly what happened.

[UTPhil2006 3,812]

10 hours ago, Gil Bang said:

It's more likely a matter of "we don't have money for closing costs" rather than "not being a man". 

 

Did  you review a bank statement and a loan pre-approval before accepting? 

This.  Tell them increase the offer 5k if they want 5k back. 

[UTPhil2006 3,812]

13 hours ago, Gil Bang said:

Nope not wrong. But, you should only be looking at your net. It don’t make a shit if you’re covering closing costs if you’re walking with nice money.

 

Three weeks from now, you may regret not taking this deal.

 

What price range are we talking? What % of a discount is the 5k?

Correct all you need to be looking at is net to seller.

 

11 hours ago, slorch said:

Their initial offer was "full price" if we picked up the title policy($1500) and home warranty($500) and paid $5000 of their closing cost.

We countered with  "full price" minus the title policy($1500) and home warranty($500)

They accepted.  Then recanted about 10 hours later.

VA financing.

 

To your point earlier, it's nickel and dime bullshit, but holy fuck, be a gotdam man about what you're going to do...and if you're unwilling to negotiate, then don't be asking concessions. JMHO.

It's common for seller to pay for home warranty and title.  Now as far as the above and not having 5k for a down payment, but it being VA which is 0% down, they may be running into a DTI issue which would be very concerning.  If they're sitting at 49% DTI on this deal and that 5k makes or breaks it, Underwriting could easily find little things (some people add too much under bonus/commission, some stuff doesn't count for various reasons, etc) that would bump it up over the threshold.  

[Guest]

I get all of that, and thank you for sharing the details. 

I just felt like it was a bullshit move to accept and then not give any ground on their subsequent counter. 

Who takes the very first offer( with concessions to the buyer) first rattle out of the box?

 

IDGAF about their financing issues either. I don’t owe them anything to ‘get them approved.’

Edited April 2, 2019 by slorch

[UTPhil2006 3,812]

34 minutes ago, slorch said:

IDGAF about their financing issues either. I don’t owe them anything to ‘get them approved.’

Correct.  I was just thinking of why they may need that, and their reasoning for asking for things.

[Gil Bang 26,020]

36 minutes ago, slorch said:

I get all of that, and thank you for sharing the details. 

I just felt like it was a bullshit move to accept and then not give any ground on their subsequent counter. 

Who takes the very first offer( with concessions to the buyer) first rattle out of the box?

 

IDGAF about their financing issues either. I don’t owe them anything to ‘get them approved.’

anybody with any sense, it it's otherwise a good offer.   I assume that your agent told you that your house is worth "X".  Did you price it at X, or did you price it at X+?

In a hot market, a house that goes pending right away, and then goes "back on market, buyer couldn't perform; well, there's no stigma to that at all.   But, a house that's been on the market for a few weeks...it starts to look a bit stale. 

[Iceman 2,725]

Priced competitively, not ‘x- plus’

 

I need it to sell n a hurry.  To be clear, I wasn’t opposed to taking the first offer.  It was the acceptance of our counter offer and then subsequent reneging that pissed me off.

[Dbeasy 15,092]

Priced competitively, not ‘x- plus’
 
I need it to sell n a hurry.  To be clear, I wasn’t opposed to taking the first offer.  It was the acceptance of our counter offer and then subsequent reneging that pissed me off.

Uh oh. Someone’s sock just got exposed?

[Guest]

 It’s not a sock. I got a new device about two   weeks ago and when I logged in that’s what  it freaking gave me. I reported it immediately on the borked thread. Of all the bullshit socks on this board, it sure is fucking amazing how people are concerned about mine

Edited April 2, 2019 by slorch

[Guest]

so UTPhil and Gil, would you typically advise your client to take that offer of "asking price" minus the Title policy and warranty, minus the $5k towards closing?

  Realtor offered us 3 tiers of pricing of the home, according to how fast we wanted it sold.  We chose the lowest price/ fastest time.  The asking price is NOT inflated.

I'm also open to negotiate, but don't like the general approach of the other party's "We want it all"

 

All I am asking is "what's normal."  What would you expect/ a seller to do?  Y'all do this shit all the time.  I do not.

[Gil Bang 26,020]

Well, if it's truly already "priced to sell" than maybe not. 

It depends on how hot your market is. 

Aside from the open house (not a good gauge of buyer interest, especially on the 1st one) how many showings are you getting?  

The 1st open house "may" have some real buyers in your price range, but it will also have just plain-ass nosy mofos from the neighborhood that like to poke around in other people's homes.  

How does your home show?  Is the wife the type to over-decorate?  Did y'all de-clutter?   I know that YOU like your house, but have you asked your agent to give it to you straight about how the house shows?  

[DaysOff 7,974]

The buyer sounds Asian.