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Thread: Real Estate Crash thread
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03-12-2021, 01:17 PM #11701
I think a lot of first time homebuyers are getting scared away also with the 20% down payment .... that isn't a requirement.
You can get a conventional all the way to 5% for a down payment, and yes while you might pay PMI, just refi it in a year or two.
The entire concept of putting 20% down, so you can sell if the economy tanks (aka the worst time to sell and you still are going to have to live somewhere) and lose all that money anyways seems silly to me. If the shit has hit the fan that bad for you, you are losing that money either way. Might as well just put the 5er down and get in the game.Live Free or Die
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03-12-2021, 01:24 PM #11702"fuck off you asshat gaper shit for brains fucktard wanker." - Jesus Christ
"She was tossing her bean salad with the vigor of a Drunken Pop princess so I walked out of the corner and said.... "need a hand?"" - Odin
"everybody's got their hooks into you, fuck em....forge on motherfuckers, drag all those bitches across the goal line with you." - (not so) ill-advised strategy
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03-12-2021, 01:24 PM #11703
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03-12-2021, 01:28 PM #11704
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03-12-2021, 01:30 PM #11705
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03-12-2021, 01:49 PM #11706Registered User
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I’m not disputing the logic but...
I doubt sellers are going to bite on an offer for a house right now with 5% down when they likely have the same or better offer with closer to 20% down or all cash.
As far as I can tell the things differentiating buyers right now is the ability to bring large amounts of cash to the table, appraisal waivers and inspection waivers.
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03-12-2021, 02:00 PM #11707
Real Estate Crash thread
This is accurate. Buyers that have a mortgage contingency in their offer usually include written plan on how to meet the difference in appraised vs contract value whether or not it could be met with a portion of their down payment. And those are the ones that have contingencies in the first place. Buyers have been doing this to win bidding wars for 5+ years in many markets in and around Boston and the past 10 months has accelerated that behavior into new markets further out of the city.
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03-12-2021, 02:06 PM #11708
How does a seller know how much a buyer is financing? I get the obvious preference for a cash offer, but if the earnest money is sufficient and there is no financing/appraisal contingency, I don't really see why a seller would care or even know whether the buyer is putting down 5% or 90%.
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03-12-2021, 02:15 PM #11709
Real Estate Crash thread
In MA there are fields for those details in the boilerplate offer documents.
In most bidding war scenarios where the goal is to maximize the seller’s take away, the most attractive offer is the offer at the highest amount with the greatest likelihood of closing at that amount.
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03-12-2021, 02:19 PM #11710Registered User
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Same in Oregon. You detail price, earnest money and amount down.
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03-12-2021, 02:21 PM #11711
I think the appraisal thing is a fair point, notably in super hot markets like pretty much every ski town, but most of suburbia is not getting all cash offers for your 3 bed 2 bath 20 minutes like outside of say, Indianapolis.
I know dentists and TGR and all, but young people buying in ski towns are not a super large demographic all in all.Live Free or Die
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03-12-2021, 02:27 PM #11712
Some of us don't live in ski towns and are still seeing way-over-asking and all cash offers on the regular. It's not just ski towns.
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03-12-2021, 02:28 PM #11713
It’s not just ski towns
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03-12-2021, 02:28 PM #11714Registered User
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I’m not talking about ski towns.
And yes, at least where I am suburbia is a hot market with multiple offers. People are leaving the city core for larger lots and houses.
I sold a house in a town that barely shows up on the map last spring and we had multiple above ask offers for a not remarkable house. In no way would it ever show up in a discussion on pretty much any forum for a place to live for a outdoor lifestyle.
My only regret is that I’m pretty sure we ended up selling to a landlord who rented it out who made an all cash offer. Should have sold it to the young couple who was financing.
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03-12-2021, 02:37 PM #11715
You guys are high if you think every house is selling above asking everywhere, with all cash.
Bunny is going to show up any minute now....Live Free or Die
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03-12-2021, 02:38 PM #11716Registered User
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03-12-2021, 02:42 PM #11717
Pretty sure for many years now there are more above market offers & bidding wars in suburbia than “ski towns”, because there’s like 100x the homes sold in suburbia every year.
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03-12-2021, 02:43 PM #11718
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03-12-2021, 03:08 PM #11719Registered User
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03-12-2021, 03:15 PM #11720
Replace mountain biking with bouldering and I'm in. El Paso here we come.
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03-12-2021, 03:20 PM #11721
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03-12-2021, 03:34 PM #11722Banned
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Yeah, and yes. Money saved, I know what I can get a loan for, my credit score is strong, and I have some assistance from my folks (and preemptive fuck you to anyone that wants to judge me for it, plenty of Boomer mags talk openly about helping their children buy homes and don't catch flak for it).
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03-12-2021, 03:45 PM #11723
Its a wonder you a still single.
Aspen has one of the strongest affordable housing programs in the country, is that an option for you? I would think being a public employee you'd at least be a step or two above the average ski bum.Live Free or Die
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03-12-2021, 03:50 PM #11724Banned
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They do have a good affordable housing program, but for what those places cost, I would rather buy something free market with a longer commute.
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03-12-2021, 03:52 PM #11725Registered User
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With the juiced buyer demand nationwide, sure you can add contingencies and decrease money down. But you better be able to swing a hammer
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