Real estate General topic

[paulsharvey]

We're still waiting for the appraisal that the mortgage company ordered. That'll be interesting. We've been looking at places in a 4 county area and prices vary wildly. Of course the quality of the houses and and land vary wildly too. Our buyer's agent really struggled to find comps because there's so much variation in rural properties. It's pretty much impossible to find a comp that is really comparable. It's nothing like getting comps in a suburban neighborhood of similar houses. The only way I could back into a price was to ask myself "what would this house sell for on a postage stamp sized lot" then add the value of raw acreage in the area. I don't know if that's a valid way of doing it or not.

We experienced the same thing. I think they ended up widening the comp area to like 25 mile radius, and 9 months. Seller wanted to include comps from neighboring county as well, but appraiser wouldn't. Part of that is, our new house, 1 property line is the county line, and we are almost perfectly in the NW corner of the county. Issue with crossing county lines, schools, county services, "stigma", all affect value

 

[WinterDeere]

We ended up finding our own comp's, since the appraisers did such a bad job of it. In our case, both the appraiser and mortgage company liked our comp's better.

We live in a small high-wealth neighborhood, where housing prices are 3x the surrounding area. Couple that with an unusual 300 year old house of 8000 square feet, and it gets really tough to find useful comp's.

 

[paulsharvey]

So, plumbers called and ask if they could do water heater today. Sure. Get there, i kinda just mention, "yall got a pan". "No, I guess I can run up to Ace". I know dang well a water heater pan is required for an interior installation...

 

[thclimer]

OMG!

 

[paulsharvey]

So, plumbers called and ask if they could do water heater today. Sure. Get there, i kinda just mention, "yall got a pan". "No, I guess I can run up to Ace". I know dang well a water heater pan is required for an interior installation...

That escalated into 2 trips to ace, 1 trip back to their shop. Despite being given Written opening sizes, as they requested, they didn't pass those to the guys actually pulling the WH from warehouse, and the 1st one was too wide. WH#2 was too tall for existing electric connections, so that was 2nd trip for wire and connectors

 

[kenmbz]

That escalated into 2 trips to ace, 1 trip back to their shop. Despite being given Written opening sizes, as they requested, they didn't pass those to the guys actually pulling the WH from warehouse, and the 1st one was too wide. WH#2 was too tall for existing electric connections, so that was 2nd trip for wire and connectors

That's just sad. Do they even have a license to operate in your state?

 

[ultrarunner]

I’d expect 99% to be on the truck when paying commercial freight.

Very sad but obligation is on the professional to honor the accepted bid.

 

[paulsharvey]

That's just sad. Do they even have a license to operate in your state?

Yes, I think it's mostly a failure to communicate.

 

[paulsharvey]

I’d expect 99% to be on the truck when paying commercial freight.

Very sad but obligation is on the professional to honor the accepted bid.

My understanding, the boss told these two guys "go grab a 30 gal water heater and go install at xxx". The plumber did mention he even saw the measurements on bosses desk.

In the end, they had to grab a 40 gal, tall, thin one, as the short, fat, 30 gal wouldn't fit. No additional cost for the 40 vs 30. The pan thing, that's code pretty much anywhere; although I could see garage install, at floor level, not thinking of it; but technically still required. It's a $5 part; less than most pipe fittings

 

[paulsharvey]

Well, we "pre signed" our part of the closing documents Friday. Get a call from our real estate transaction agent... The buyer is moving from Philly (i knew that, I did my Google research), and she told her loan folks that she would continue employment, telecommuting from FLa. Well, apparently that was false, and she quit her job while in the closing process... Supposedly she already has a job in FLa, but her lender wants to see a pay stub before finalizing the loan. So, no matter what, we aren't closing this week.

Our real estate folks pointed out, the buyer is technically in breach of contract, and we can take their binder, and relist. I made the point, $2000 binder, vs relist, and wait another 60 days, and we didn't have a huge list of offers... I think i would rather extend the purchase contract for 21 days: BUT, I dont want to extend and then it fall through, and I miss a month on the market.

 

[paulsharvey]

Our buyer defaulted, apparently in addition to quitting her job, she also lied about her available cash... So, we relisted, and got 2 offers, 1 full price, conventional, 30 day close; and an other 14 day close, cash, 3% discount off asking. We selected the cash offer.

Then we get into irrational decisions part of real estate; so Buyer #1, she is in breach of contract, so we keep her binder. Buyer #2 offered Buyer #1 to pay 50% of her cost of her inspections, simply for a copy of the inspection report. She declined. Now, 100%, I get she's mad, she's probably out around $3000, between binder and inspections; but why not sell your copy of the inspection for $500? Better mad and out $2500, then mad and out $3000.

I told our real estate folks, I kinda feel bad for her, BUT, I just did $3000 in betterment per her demands; so I dont feel bad enough to not take her $2000 binder.

 

[ultrarunner]

When is a done deal done is a recurring theme in Real Estate which becomes more fragile as additional parties are involved.

One of my better buys came about because the seller had several times accepted contingent offers that never closed.

The listing agent was then given written instruction seller wanted a cash offer.

I took this at face value and scraped together a all cash as-is offer at 80% of list and also much lower than all previous accepted offers and it worked.

One full price offer was FHA which came with seller costs plus work required prior to close… several other offers were contingent on city First Time Buyer Programs with limited funding.

On the flip side I was a lender in escrow on a commercial project refi and the day before close the borrower backed out saying he had a more attractive funding option…

Long story short is the more attractive option never materialized and he came begging back but my funds were now committed to something else… that borrower ended up losing the property when the bank foreclosed.

 

[check]

Seeing some extremes in single family home prices and costs…

Home that was a solid 850k a few years back is now a solid 550k which is dramatic especially when mortgages are in the picture because time has proven upside down owners will walk.

It’s also interesting insurance premiums without any claim history are seeing 20-50% year over year increase if you are not dropped…

A good friend has a small Tahoe cabin for decades and premium 3 years ago was $3500 and now $13,500…

I predict the rank of uninsured homeowners to dramatically increase just like uninsured drivers…

I’ve already gone with max 10k deductibles to provide some relief…

Maybe the above is a reflection of California?

$850k to $550k?!! Wow, that is a 35% drop! Is this typical in CA these days?

 

[ultrarunner]

$850k to $550k?!! Wow, that is a 35% drop! Is this typical in CA these days?

I’ve seen documented 80% drop from purchase price to foreclosure sale price in the neighborhood back in 2009-12 implosion.

Not typical for all of California but cities such as Oakland and San Francisco have and do experience wild swings.

The company my brother works for just picked up a city block in the SF Bay Area for 100 million dollars in a top rated location.

The property had a 180 million bank loan on it from a few years back on a purchase price at the time of 200 million.

Just one example of a 50% haircut as he calls it with a 100 million combined loss between the seller and lender bank… plus a huge hit to the city tax base…

On paper my real estate is down 35 to 40% here from 2020… but rents remain steady.

 

[paulsharvey]

So, we are closing in on the closing next week. Wife actually got a call at work from the buyer, which of coarse she didn't answer. I got in email, a kinda odd list of requests, shingles colors, where well is, how old tank is, paint colors, details on pool pump, ect; and they buyer requested that I meet him, and walk him through breakers, water shut offs, ect... I was a bit worried about him trying to make a "honey do" list. So, call my real estate agent, and mention this too him. "Yeah, he's made a bunch of odd requests, including multiple requests for your phone number". I told him they guy somehow got wife's number, and that she didn't answer. He said good, you should Not be talking to the buyer. Agent did ask me to mow the yard one last time, and in email, I told the buyer, CCing agents, that I would try to find the paint colors, shingles make, ect

 

[paulsharvey]

When I First met with my sales agent, I did ask, "What if I get a direct call, as I've lived here for 18 years". He said "Refer them our number, dont talk/negotiate, ect, directly with anyone.

 

[domin]

When I First met with my sales agent, I did ask, "What if I get a direct call, as I've lived here for 18 years". He said "Refer them our number, dont talk/negotiate, ect, directly with anyone.

That was a great advice. We finally upgraded our security system with blink home cameras and it's been a total game-changer. The app sends real-time alerts, the video quality is super clear, and it was easy to install without professional help. I feel so much better knowing we can keep an eye on the house even when we’re away.

 

[MinnesotaEric]

That was a great advice

Every agent and broker should tell their sellers to have any inquires directed to them. You're hiring a pro for a reason.

 

[BackRoad]

We sold our last house to a young couple who worked through the RE agent as expected.

We did spend an afternoon walking them through the house and pointing out the stuff they might need to know to keep the place running more efficiently.

Things like who the pool folks were which knew our pool for the previous 17 years, the heating guys who installed the new HE heating system and how it worked, the main water shutoff, the 1st floor thermostat mounted on the wall with a 2nd floor heat duct behind the drywall influencing it's accuracy! Details on the roof shingle warranty, etc.

We also handed over a 3 ring binder with all the operation and maintenance manuals for the pool stuff, house HVAC and appliances staying with the house and warranties.

Several years later - they still send us annual Christmas cards.

There's just some activities that are more effective with a face to face conversation...

 

[EscapedSuburbia]

I've bought and sold a lot of motorcycles over the years and I always use a temporary email and Google voice phone number because there are some buyers who will just pester you to death with questions or buyer's remorse fueled accusations. Our house will go on the market next month and there's no way I'm giving a buyer my contact information and if they somehow get it I'll block them on my phone. I'd love to be an occasional helpful resource to the new owner of a house I built and lived in for 30+ years but there are too many downsides.