Real estate General topic

[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

 

[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.