Real Estate Crash thread

[Ted Striker]

A FUCKING TEXAN

Are you sure it's a second home? We're seeing an unprecedented number of Texans buying here to stay. Basically political and climate refugees.

[Ted Striker]

From what I'm reading pre-inspections are ordered by the seller and I can't imagine they'd risk doing that if they have any concerns about skeletons in the closets.
Do you mean that we should roll in with an inspector when we visit a place and do an informal inspection at that time?

If there isn't a pre-inspection provided by the seller, you can request that you have an inspection done (on your dime). Obviously you're only going to do this on houses you're planning to make an offer on.

In a hot market, inspections have little/no value in negotiations, but one might convince you to walk away from a money pit.

[skaredshtles]

<snip> one might convince you to walk away from a money pit.

'Round here this invariably involves some MASSIVE structural/foundation issues.

[spanky]

In a hot market, inspections have little/no value in negotiations, but one might convince you to walk away from a money pit.

Exactly. We recently bought a home “as-is” but still had an inspection before going into contract. Any seller wanting you to waive any inspection rights shouldn’t be trusted.

[liv2ski]

No way would I buy without the inspection. That Texan was obviously out of his mind. Sucks for you Boissal, but the market sucks for buyers now. I have a dozen loans pre-approved for buyers, but they keep getting over bid, no contingencies, all cash, whatever. They are so frustrated, I don't know how they hang in there.
I was reading an article on rent increases across the country. Thank Dog CA is one of 3 states with rent increase laws, as people in other states can't buy and the rents are going ballistic on them. I wonder when enough will be enough and peoples apathy finally turns to action?

[oldnew_guy]

Exactly. We recently bought a home “as-is” but still had an inspection before going into contract. Any seller wanting you to waive any inspection rights shouldn’t be trusted.

This. Be willing to forfeit your earnest money with this approach.

This is how the market is currently plus showing up with all cash or an appraisal waiver.

[4matic]

You dodged a bullet. Never waive inspection...

I waived inspection. The seller provided one. I got the deal.. no problems so far.

[skaredshtles]

I waived inspection. The seller provided one. I got the deal.. no problems so far.

[4matic]

Inspections are a shell game anyway. They don’t find every big problem so it’s always a gamble

[Boissal]

Inspections are a shell game anyway. They don’t find every big problem so it’s always a gamble

In your case the seller provided an inspection so you weren't walking in the deal completely blind. I'd be open to that but it wasn't an option.

When I was buying my place in 2011 I had an offer out on a really dope house at the upper end of my budget. Shit looked fantastic until the inspector sniffed out unreported serious water damage that had been fixed in a sketchy manner and would make the house uninsurable. OOoops. Dodged an intercontinental ballistic missile that day.

[Harry]

You dodged a bullet. Never waive inspection...

Yeah, that’s what pushed me over the edge on my sale. When one of the 100+ people in the bidding war on my condo offered to waive all inspections, I accepted and pocketed their money. Dumb move on their part, but whatever.


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[4matic]

Yeah, that’s what pushed me over the edge on my sale. When one of the 100+ people in the bidding war on my condo offered to waive all inspections, I accepted and pocketed their money. Dumb move on their part, but whatever.


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What would they have found? You were an HOA officer so if there were any disclosures..

[dan_pdx]

Yeah, Bellingham has been a trip - you can't have any inspection contingencies, even a pass/fail inspection contingency means the seller will choose another offer. So you do a pre-offer inspection just to find out what you're getting into / whether you want to bid at all. We've paid for 3 or 4 inspections at this point and haven't been the best offer yet, so that's getting old.

[Tips^Up]

We're under contract! Only 1 other offer, they came back for highest and best. We offered $6k escalation clause because our realtor said $5k is common; got it for 2% over asking. Inspection scheduled for Friday, $595 was the cheapest of 3 bids.

We're planning to rent out our current place because we're locked in for 30 at 2.75% so it'd be silly to sell that note at this time. But...our junky old house has electrical issues, plumbing problems, basically no insulation and drainage concerns. Maybe now would be a good time to cash out if we could get someone to waive an inspection.

[4matic]

We're under contract! Only 1 other offer, they came back for highest and best. We offered $6k escalation clause because our realtor said $5k is common; got it for 2% over asking. Inspection scheduled for Friday, $595 was the cheapest of 3 bids.

We're planning to rent out our current place because we're locked in for 30 at 2.75% so it'd be silly to sell that note at this time. But...our junky old house has electrical issues, plumbing problems, basically no insulation and drainage concerns. Maybe now would be a good time to cash out if we could get someone to waive an inspection.

If you declare everything and get a pre inspection it shouldn’t be a problem selling it. With rates on the rise there are places to park cash now at 2%+

[Dromond]

If you declare everything and get a pre inspection it shouldn’t be a problem selling it. With rates on the rise there are places to park cash now at 2%+

Where would you park it?

[4matic]

Where would you park it?

MAHQX
BOND

I like that MAHQX has a current high cash allotment For deployment. BOND hasn’t been below 100 practically ever and yields 2.68% and will likely go higher.

[yeahman]

Obviously I am not posting everything on my mind, so it is leaving you with an incomplete picture of my concerns. Sadly, whether I am concerned about what is going on in society or not doesn't really matter, as few of you will vote for candidates that will actually try and bring about change to our current situation because they are "shudder" Democratic Socialists. How many of you voted for Bernie? He was the only candidate who would of tried to make a positive difference in most peoples lives, but was laughed out for Bidet. Don't be so judgemental, as you don't know me if we have never met IRL.

It's nothing personal. I have kids graduating high school and I worry about how the fuck they will ever be able to afford a place to rent, much less a house. But I take issue with your opinion that this can go on for a "long time." Point me to a time in the history of this country when we haven't been headed for a market crash or recession within a matter of a few years. These good times never last forever. I don't know what will provide the catalyst to crash the real estate market--I doubt it will be anything to do with the RE market itself--but something will. And it's going to be ugly, but necessary.

[liv2ski]

My youngest has been living at home for 3 years saving up cash for a down payment and we will match her savings. Bad news is she lost her mgrs job in 2020. Ended up accepting an asst mgrs job in 2021 at about 50% less, so now she doesn't qualify for the loan needed. Add in higher prices and it sucks, so ya, I hear you.
Life is never easy but just because I don't like it doesn't mean it will stop being hard for the kids.

[jackstraw]

My youngest has been living at home for 3 years saving up cash for a down payment and we will match her savings. Bad news is she lost her mgrs job in 2020. Ended up accepting an asst mgrs job in 2021 at about 50% less, so now she doesn't qualify for the loan needed. Add in higher prices and it sucks, so ya, I hear you.
Life is never easy but just because I don't like it doesn't mean it will stop being hard for the kids.

My kids are in the same boat. They're not living at home, but if something drastic doesn't happen, whether it be a huge drop in the market, or they land some stupid paying job, or start their own company...and it's successful x yrs down the road, they'll never be able to afford a house in a place they want to be. It really broken right now. It shouldn't be this way. Being married to a mortgage is not a way to live.

[babybear]

I think you are both right- @yeaman and liv2ski
Housing/ Real estate is cyclical but the cycles were extremely disrupted by covid so it's somewhat new territory.
But things will slow down at some point and when it does, it will appear to be a huge drop bc of the huge growth it's compared against
covid upended interest rates, large swaths of people's behavior, govt moratoriums on rents, guaranteed income for a short period. All big if not somewhat unprecedented disruptors
I have no answers but definitely think about it a lot lol.

[Conundrum]

Being married to a mortgage is not a way to live.

Be married to perpetual crazy high rent isn't either.

[Bunion 2020]

During the same month the Reno City Council holds an emergency meeting on the affordable housing crisis, a Reno Navy veteran is priced out from the apartment he's lived in for almost two decades.

Mike Setner is in the twilight of his career at 56-years-old and has lived in The Verge Apartments since 2004. Setner says when he moved into The Verge Apartments 18 years ago, he paid $650 per month and a year later it went up to $750. He says when FPI Management took over in 2017, his rent went from $750 to $1585 over a 5 year period. That's more than a 200% increase.

After Setner's time in the military in the 1980's, he's been working full-time making about $25 per hour, but he says it's just not enough.

"It's 3200 a month bring home... and I can't afford to live," he said. "How much stuff do you have to give up in order to live?"

Setner says FPI Management has also tacked on new fees such as garbage, sewer, and water. He says the company has made no improvements to the property since he moved in almost 20 years ago.

News 4 reached out to FPI Management about Mike Setner's situation and has not heard back.

.

[Mazderati]

Be married to perpetual crazy high rent isn't either.

Or the whims of landlords.

[jackstraw]

Be married to perpetual crazy high rent isn't either.

Yeah, of course. But where's the down payment coming from? Granted, my kids live in Santa Cruz. Starting cost is 1 mil for a house there. My town is 5-600+ and those houses are all pos from my perspective.