Real Estate Crash thread

[glademaster]

We are getting an appraisal done for a refinance. I’m only slightly worried if a guy walks through our house, I presume he will wear gloves and won’t take long. It’s pretty obvious the house is not a shithole and worth financing. Wife and I will talk it over before he comes, I’m sure.

Gloves aren't the issue. You know that in the time it takes him or her to walk through, they'll cough or clear their throat or sneeze at least once, they'll put their filthy camera/phone/tablet down on something, they'll touch their face and then flick a light switch, and you have no way of knowing the gloves they are wearing aren't already contaminated, etc. It's just not worth the risk.

[pepperdawg]

We are getting an appraisal done for a refinance. I’m only slightly worried if a guy walks through our house, I presume he will wear gloves and won’t take long. It’s pretty obvious the house is not a shithole and worth financing. Wife and I will talk it over before he comes, I’m sure.

There are about 80 cases in our county, out of 1.1 million total people, risk is low. But if no appraiser Is taking jobs, fine, it’s worth trying to refinance save a shitload of money. Hopefully its not all for nothing.

Ask for a virtual /drive by appraisal on a re-fi?

[fastfred]

If you ever wanted to replace your own wax ring all willy-nilly, now's the time. You heard it here first.

Ha ha funny shit
Trying to fast track a structural repair project since there is no building dept make my life so much more fun by not having to get a permit

My luck is the open back up just after we start

[CascadeLuke]

The RE future is uncertain and too early to tell but some areas will drop for sure. In another respect with this shelter in place way of life - who doesn’t want a enjoyable place to dwell? If I’m not spending as much out in life I can afford more home. Which now has more inherent value to me in response to social distancing. Then add in future WFH policies. .
The real wildcard is the yet foreseen downstream casualties.

ETA Have 5 RE transactions at escrow right now. Each one of those persons wants the deal to close asap before more hell breaks loose. Goes for buyers and sellers. The listings/Sellers want to lock in their payday and the buyers want their new place to lock down in (and solid mtg rate).

[iceman]

Lots of millennials now pondering the urbanism they've so widely embraced. Two of them here in this house right now. Suddenly the safe suburbs seem, well, safe. Between perceived safety, telecommuting and the approach of the era of driverless cars (so you can be working while moving) I feel the suburbs have some new life.

[Mazderati]

^ https://www.cnn.com/2019/02/08/succe...ate/index.html

Article focuses on the luxury segment but it may speak to a larger trend of valuing land and open space more than in recent years.

[dunfree]

True Driverless cars? Real ones are still a bit out, the economics don’t work.

[Benny Profane]

Lots of millennials now pondering the urbanism they've so widely embraced. Two of them here in this house right now. Suddenly the safe suburbs seem, well, safe. Between perceived safety, telecommuting and the approach of the era of driverless cars (so you can be working while moving) I feel the suburbs have some new life.

I posted this in the rat flue thread. I'm guessing that Italy has such problems because of their tight conditions in cities and large towns. Shame if that goes away, and it probably won't, that country has been dealing with pandemics for centuries.



https://www.washingtonpost.com/opini...t-coronavirus/

Interesting piece. If you can't get past the paywall, the theory is that America will have an easier time with this disease because we are a spread out, suburban country that commutes by car, except the NYC region, so, harder to spread.

[liv2ski]

That's decided upon by market value. Doubtful a bank is going to sign off on February's values. Whole new world coming up. Maybe the same, maybe not.

Does not work on speculation of what may happen Benny. The bank goes off the comps that closed in the last 3 -6 months, which is helpful in a declining market and makes it harder as prices are going up. I am certain Glademasters landlord will have that rent increase in the mail stat for being so understanding.

[liv2ski]

We are getting an appraisal done for a refinance. I’m only slightly worried if a guy walks through our house, I presume he will wear gloves and won’t take long. It’s pretty obvious the house is not a shithole and worth financing. Wife and I will talk it over before he comes, I’m sure.

There are about 80 cases in our county, out of 1.1 million total people, risk is low. But if no appraiser Is taking jobs, fine, it’s worth trying to refinance save a shitload of money. Hopefully its not all for nothing.

Just be sure your water heater is double strapped and you have a fire and carbon monoxide alarm up for him to takes photos of and leave as he just wants to take a few photos for the bank.

[liv2ski]

Ask for a virtual /drive by appraisal on a re-fi?

Nope, it all depends on the findings spit out by Desktop Underwriter. On a rate and term (no cash out) loan with lots of equity that has been owned for 2+ years, it is common for no appraisal to be required. Otherwise it is a full appraisal. I have not seen a drive by (exterior only) finding in years except for Helocs.

[Self Jupiter]

Put me down in the urban life feels claustrophobic camp and I’m 34. Kind of felt that way already but it’s exacerbated.

Appraisals being done remotely / virtually here in MA. Closings too. Touchiest subject du jour appears to be getting the fire department in to ensure smoke detector compliance prior to closing.

Purchases down 35% week to week here in MA (per individual lender private data).

[Benny Profane]

Does not work on speculation of what may happen Benny. The bank goes of the comps that closed in the last 3 -6 months, which is helpful in a declining market and makes it harder as prices are going up. I am certain Glademasters landlord will have that rent increase in the mail stat for being so understanding.

I just dont think it's very smart to sign off on an obligation for hundreds of thousands of dollars backed by an asset that may very well be worth less in the near future. You want to start that relationship 10 to maybe 30% underwater? Talk to the millions of homeowners that are still underwater from '08. Sure, if you're going to live there for twenty years, go ahead, but, who knows. That's a long time.

[pepperdawg]

Nope, it all depends on the findings spit out by Desktop Underwriter. On a rate and term (no cash out) loan with lots of equity that has been owned for 2+ years, it is common for no appraisal to be required. Otherwise it is a full appraisal. I have not seen a drive by (exterior only) finding in years except for Helocs.

Gothca - We fell into the no cashout and lots of equity/time in place category last time we re-fi'd Tx

[liv2ski]

Lots of millennials now pondering the urbanism they've so widely embraced. Two of them here in this house right now. Suddenly the safe suburbs seem, well, safe. Between perceived safety, telecommuting and the approach of the era of driverless cars (so you can be working while moving) I feel the suburbs have some new life.

Your home is nice, so if they could work from home and you agree upon a price, bam, winner winner, chicken dinner, sold!

[zion zig zag]

Put me down in the urban life feels claustrophobic camp and I’m 34. Kind of felt that way already but it’s exacerbated.

Appraisals being done remotely / virtually here in MA. Closings too. Touchiest subject du jour appears to be getting the fire department in to ensure smoke detector compliance prior to closing.

Purchases down 35% week to week here in MA (per individual lender private data).

Like the FD comes and signs off that a single family residence has working smoke detectors? Why would any FD in the country do that?

[::: :::]

that country has been dealing with pandemics for centuries

There’s your answer

[glademaster]

I just dont think it's very smart to sign off on an obligation for hundreds of thousands of dollars backed by an asset that may very well be worth less in the near future. You want to start that relationship 10 to maybe 30% underwater? Talk to the millions of homeowners that are still underwater from '08. Sure, if you're going to live there for twenty years, go ahead, but, who knows. That's a long time.

I'm not sure of my LL's situation, but I know they own 6-10 residential rental properties in the area, and that they bought they duplex I'm renting half of in May of 2019 for ~$470k. The county appraised it at $425k for property tax purposes, the tax bill is $5100/year, and they're generating $3500-4500/month in gross rental income from it.

[Toadman]

Closing on our place moved up a day. So glad that we have a really solid buyer, and that our RE agent recommended putting our house on the market a week earlier than we had planned. Vibes to those in different circumstances.

[4matic]

Sales of existing home in February jumped 6.5% month-to-month to a seasonally adjusted annualized rate of 5.77 million units, according to the National Association of Realtors. That is the highest monthly pace in 13 years. Sales were up 7.2% year over year.

[liv2ski]

I just dont think it's very smart to sign off on an obligation for hundreds of thousands of dollars backed by an asset that may very well be worth less in the near future. You want to start that relationship 10 to maybe 30% underwater? Talk to the millions of homeowners that are still underwater from '08. Sure, if you're going to live there for twenty years, go ahead, but, who knows. That's a long time.

If the banks tries that they would never close any loans. It does not work that way.

[iceman]

True Driverless cars? Real ones are still a bit out, the economics don’t work.

No doubt but I think the perception that they're coming is enough to make them a factor at some level, e.g. "The commute will suck but at least driverless cars are coming so we won't have to do the driving forever." Hey it's a hypothesis.

[Self Jupiter]

Like the FD comes and signs off that a single family residence has working smoke detectors? Why would any FD in the country do that?

Yes.

They shouldn’t have to right now.

Just pointing out what is the biggest bottleneck to current transactions closing in MA right now. Closing without a smoke cert on a financed transaction is nearly impossible.

[goldenboy]

Yes.

They shouldn’t have to right now.

Just pointing out what is the biggest bottleneck to current transactions closing in MA right now. Closing without a smoke cert on a financed transaction is nearly impossible.

Really? Weird. Sometimes a missing smoke detector comes up in inspection and the seller will just leave a new one from home depot in a kitchen drawer or something. That's about it.

[Self Jupiter]

Here we need a certificate from the fire department signing off on smoke / CO detector compliance prior to any closing