Real Estate Crash thread

[lowsparkco]

Working an equation backwards rarely works, but there’s nothing wrong with a fishing expedition if everyone is onboard.

What seems to be absent is other broker opinions. Get the house really ready to sell. Really ready. Then have her bring trusted brokers in (give away a few gift cards or restaurant vouchers) and have them do a real CMA for you. Look at all the comps closely and make up your own mind.

[Ted Striker]

Honestly, I'd just offer 2.5/2.5 % commission, and price it at what you're comfortable clearing. I'd also be up front about not even entertaining low offers.

But if I were going to propose a tiered compensation, I'd go the other direction. So offer straight percentage to the buyer's agent, and incentivize the listing agent with an escalation.

I'll use 500k @ 2.5% for an easy math example
Sell at list - agent gets $12500
For every thousand over, listing agent gets an extra $200
At 10k over that's about 2.85% and at 15k it's 3.0%

[dan_pdx]

Working an equation backwards rarely works, but there’s nothing wrong with a fishing expedition if everyone is onboard.

Yeah, I hear that re: working the math to come up with the number we asked for. Honestly was hoping for an independent assessment. She would say that her independent assessment supported the number we mentioned, I'm sure.

Honestly, I'd just offer 2.5/2.5 % commission, and price it at what you're comfortable clearing. I'd also be up front about not even entertaining low offers.

But if I were going to propose a tiered compensation, I'd go the other direction. So offer straight percentage to the buyer's agent, and incentivize the listing agent with an escalation.

I'll use 500k @ 2.5% for an easy math example
Sell at list - agent gets $12500
For every thousand over, listing agent gets an extra $200
At 10k over that's about 2.85% and at 15k it's 3.0%

I get it, but the number we're comfortable clearing is also the very top of the reasonable range - getting more than that is not in the cards, I think. I guess I came up with those tiers because I was thinking more about how to make a less than list deal palatable vs. maximizing our listing agent's incentive to sell for above list. I'm happy to offer our listing agent 20% of any amount over list, do you think that would move the needle?

[Ted Striker]

I don't think it'll move the needle because you're going to ask top dollar. Plus, an agent that needs extra incentive (or disincentives) should be avoided at all cost. You're also going to be in the pointy end of the market.

Kinda bummed that Spokane didn't work out. That's such a cool house (random pandora's boxes that previous owners left behind aside)

[dan_pdx]

Kinda bummed that Spokane didn't work out. That's such a cool house (random pandora's boxes that previous owners left behind aside)

QFT. We've squashed a bunch of gremlins, and the only remaining issues are cosmetic. With no state income tax and ADU rental income, the financials here are great and I did like the best gravel ride of my life 7 miles from the house on Sunday, when I'm a little more fit, I can ride to that ride. Alas, Mrs PDX is doing a fair amount of work travel, and getting to the east coast from here is crappy, and in other ways, we're not quite jelling here.

[Mazderati]

Have you tried jamming?

[Ted Striker]

Now I have that damn song stuck in my head!

[liv2ski]

If Redfin will accept 1.5% to list a home (less if you buy the next one with them) why would you offer a listing agent more? And if the listing agent is at 1.5% why offer more than 2% to the buyers agent unless the price is sub $300k. If over $1M, I would grind them lower depending on the price.

[Whiteroom_Guardian]

It would be interesting to hear WRG's take on whether Bozeman is a buyer's market.

March 2024 in Greater Bozeman Area is 2.25 months of inventory. Down 30% from February. Definitely still a seller's market for most SFH.

Greater Big Sky (including Gallatin AND Madison Counties) is currently at 4.66 months of inventory and coming down. Madison County is essentially Moonlight Basin/Big Sky Mountain Village. If you exclude Madison and calculate for Gallatin only aka The Meadow it's just a hair over 6 months supply so pushing it into Buyer's Market territory. I suspect that number will fall back into the 5s when we get April's numbers.

Median sales price still been forging upwards all along.

[4matic]

Been shopping for insurance after getting notice of non-renewal. Best I've done is $3500. Almost triple my current and that quote is $1200 less than 2nd best. Albeit, my Lemonade premium was $1200 less than any other quote. So, not that outrageous in the larger scheme of insurance inflation and general inflation. Still hurts.. it's gotta be hurting home sales around here. High rates and high insurance. The next best quote I got was $4600.

Hoping chaos creates opportunity down the road.

[singlesline]

Been shopping for insurance after getting notice of non-renewal. Best I've done is $3500. Almost triple my current and that quote is $1200 less than 2nd best. Albeit, my Lemonade premium was $1200 less than any other quote. So, not that outrageous in the larger scheme of insurance inflation and general inflation. Still hurts.. it's gotta be hurting home sales around here. High rates and high insurance. The next best quote I got was $4600.

Hoping chaos creates opportunity down the road.

Have you tried playing with the deductible?

Coworker of mine quoted raising their deductible 5k and their quote went down like $4900. They literally wanted them to pay almost 5k for 5k worth of insurance. They were coming off 2 claims in 2 years so they were getting screwed no matter what, but that just seems egregious.

[BmillsSkier]

The hardest city to buy a house in is now ATL. So many people moving here (mostly young people; now the 6th biggest metro in the US), and without a lot of inventory and sizable down payment the outlook is bleak for those buyers. Doesn’t get better when they estimate that over 10% of the city’s rental units are owned by 3 institutional landlords too.

https://www.wsbtv.com/news/local/atl...PE6M7P55IUR5I/

Guess that’s why there’s so many cranes in the sky building apt high rises and the “affordable” communities are now 45 mins - 1 hr outside town.

Selfishly, I hope it all keeps up until we leave town permanently, but realistically I know it’s not good for everyone as a whole.

[byates1]

More money more problems

[4matic]

Have you tried playing with the deductible?

Coworker of mine quoted raising their deductible 5k and their quote went down like $4900. They literally wanted them to pay almost 5k for 5k worth of insurance. They were coming off 2 claims in 2 years so they were getting screwed no matter what, but that just seems egregious.

$5k deductible saves me $20 more a month. The higher quote is for a $5k deductible. I declined 25% rebuild overage to save $40 a month.

Most “brokers” don’t even call back. The agent I contacted took a week to get back and says she’s so busy had I not followed up she’d have not gotten back to me this week. Not a single one has answered within 24 hours.

[BmillsSkier]

How are lenders handling the insurance exits since going without is an event of default under any loan/mortgage?

[byates1]

$5k deductible saves me $20 more a month. The higher quote is for a $5k deductible. I declined 25% rebuild overage to save $40 a month.

Most “brokers” don’t even call back. The agent I contacted took a week to get back and says she’s so busy had I not followed up she’d have not gotten back to me this week. Not a single one has answered within 24 hours.

Sell it all move to slab city live in an old bus. Make wind chimes out of roadside garbage. Problem solved.

[neufox47]

Been shopping for insurance after getting notice of non-renewal. Best I've done is $3500. Almost triple my current and that quote is $1200 less than 2nd best. Albeit, my Lemonade premium was $1200 less than any other quote. So, not that outrageous in the larger scheme of insurance inflation and general inflation. Still hurts.. it's gotta be hurting home sales around here. High rates and high insurance. The next best quote I got was $4600.

Hoping chaos creates opportunity down the road.

I assume these are CA fair plan quotes at those prices? I’ll PM you the contact info for my broker if it’ll help.

[4matic]

I assume these are CA fair plan quotes at those prices? I’ll PM you the contact info for my broker if it’ll help.

No. Full HO-3 plans. Sage is my new carrier (un-admitted) and Safeco (admitted) was the $1200 more with a higher deductible. Fair Plan only covers major perils so if you want full comprehensive you have to get additional coverage.

I’m not worried about the un admitted part because the actual wild fire risk and total fire loss to my location is very low.

[yeahman]

I live in the dry, timbered urban-wildland interface in Montana. House is insured by State Farm. I wonder why they haven't come for me yet.

[liv2ski]

Don't say that dude letter in the mailbox in 3 2....

[fastfred]

Johnny Dimon says interest rates are going to sit at 8% for awhile

Between insurance costs interest rates taxes and over priced shit holes something has to give

Sent from my SM-A546V using Tapatalk

[The SnowShow]

Johnny Dimon says interest rates are going to sit at 8% for awhile

Between insurance costs interest rates taxes and over priced shit holes something has to give

Sent from my SM-A546V using Tapatalk

More and more loan defaults? Or millions and millions unable to pay off credit card debt and going bankrupt?

[liv2ski]

Or FTHB's simply not able to buy due wages never keeping pace with the price of RE.

[Danno]

Or FTHB's simply not able to buy due wages never keeping pace with the price of RE.

sadly, this seems the likely result

[yeahman]

Don't say that dude letter in the mailbox in 3 2....

Yeah well. If we can get our mortgage paid off in the next couple years I wouldn't be averse to self insuring. I don't think our house is worth much compared to our lot anyway.