topic Re: Can we talk offers and home prices for a moment? in Mortgage Loans

Can we talk offers and home prices for a moment?

BeingMaryJane — Thu, 05 Mar 2015 01:33:01 GMT

After working to get through the preapproval process and gettingmy scores up.. I thought it would be no problem to find a home in my price range. Wrong! I've stayed close to listings and such and recently in my area homes have just like skyrocketed due to low inventory. A home that was 350k in August or September of 2014 is now 425.. And I mean literally the same homes. I've driven myself batty looking at price histories and list histories from Q3-Q4 2014 and now. It's insane... That being said.. My realtor is complaining that I am low balling on offers. I don't think that I am... I think I'm looking at comps and based on that making a decision. This is not our forever home.. It's a home to stop us from paying $2200 rent with no tax deductions. I want to be able to at least break even in 5 years!

Do we think prices are raising too fast..?

Re: Can we talk offers and home prices for a moment?

Anonymous — Thu, 05 Mar 2015 01:46:24 GMT

I'm confused.

"I've stayed close to listings and such and recently in my area homes have just like skyrocketed due to low inventory. A home that was 350k in August or September of 2014 is now 425."

You're talking comps? Similar house in same neighborhood?

Re: Can we talk offers and home prices for a moment?

Lemmus — Thu, 05 Mar 2015 21:56:50 GMT

...depends on where you live ...here in south florida along the coasts its a sellers market ...but inland prices appear to be mostly sideways despite low inventory ...lots of people still underwater who can't afford to put their homes on the market ...lots of repos, shorts, and handyman specials ...and dear god, mobile homes everywhere

...persistence and patience ...don't buy something because you can get a deduction but because you really want to live there ...widen your search area ...set down with your realtor and really listen to her ...if you're not on the same page, move on ...hth

Re: Can we talk offers and home prices for a moment?

WhiskersTheCat — Thu, 05 Mar 2015 07:04:05 GMT

I hear what you are saying. I was looking at a house that was $190,000 less than two years ago and is now offered at $285,000. No way is that home worth that much more over such a short period of time. I know how you feel, although I must say I took a different course of action than paying $2200/month in rent. I rented a storage space and put most of my belongings in it and am renting a very small studio apartment for just under $700/month and saving the rest. I really hated the idea of living in such a small space at the time but now feel that prices must come down and I will very likely have the cash to pay for a house and be mortgage free. I know it’s not for everyone; if you have pets or kids a small apartment is not ideal, but I just refuse to follow that crowd and buy an overpriced house. I would say to you “don’t let any realtor bully you. It is your money you are spending not his/hers.

Re: Can we talk offers and home prices for a moment?

mynameainttracy — Thu, 05 Mar 2015 11:06:17 GMT

We live in one of those markets where the realtors are a big part of the problem, encouarging sellers to overprice their houses. We also had a Realtor continue to show us properties above our max. We had to let her go and just wait for the right opportunity to come by. It was frustrating and took a long time but eventually the perfect opportunity eventually presented itself.

Re: Can we talk offers and home prices for a moment?

StartingOver10 — Thu, 05 Mar 2015 12:24:53 GMT

In every market there are sellers that need to sell for less than market value to get out quickly. Your Realtor needs to work on finding that seller for you with the home that has the criteria you seek. Naturally there is more than one seller in this position, but it isn't always obvious which sellers are in a bind. It isn't the list price that counts as much as the selling/contract price. If the current comps are in your range, then you can achieve your goal. It is possible you may need to review and change the Realtor you are using. We aren't all the same. Find one that is experienced and supports your goals. You may have to interview several to find one that meshes with your values.

Re: Can we talk offers and home prices for a moment?

Anonymous — Fri, 06 Mar 2015 01:51:40 GMT

Obviously listing price is different than selling prices. Your realator should be able to find the selling price and if there were selling concessions. We thought some houses were overpriced in our area base off public records, but my realtor found out the sellers concessions in the form of sellers assist to get the actual net value. We didn't need sellers assist and we had no contingencies to make us a stronger buyer. We made an fair offer 15k under list and they accepted our offer even though there were higher offers. The sellers had a house under contract and needed the most reliable offer.

Re: Can we talk offers and home prices for a moment?

DallasLoanGuy — Fri, 06 Mar 2015 02:18:47 GMT

@BeingMaryJane wrote:
My realtor is complaining that I am low balling on offers. I don't think that I am... I think I'm looking at comps and based on that making a decision. This is not our forever home.. It's a home to stop us from paying $2200 rent with no tax deductions. I want to be able to at least break even in 5 years!

Do we think prices are raising too fast..?

Supply and demand.

In some of my markets people offer OVER asking and don't win the bid. Happened to my sister several times before she won her deal.

Real Estate is local..... Either trust the realtor or find another.

Re: Can we talk offers and home prices for a moment?

b1gr3dmachin3 — Fri, 06 Mar 2015 16:44:23 GMT

Going through that as well right now, home prices are skyrocketing and as soon as a good home is on the market it's being sold or has multiple offers within a few days.

Re: Can we talk offers and home prices for a moment?

ezdriver — Fri, 06 Mar 2015 19:13:49 GMT

The market here in Northeast Floria is a sellers' market. We have had two price increases in four months in my neighborhood [I'm a sales counselor for a national builder] and yet Realtors are coming into my office behaving like we are still in a down market. Their buyer clients are the ones who are losing out.

If you are in a rising market, then you may need to be more open to offering more ... but certainly not more than the properties are worth [supported by recent comps].

Re: Can we talk offers and home prices for a moment?

b1gr3dmachin3 — Fri, 06 Mar 2015 19:20:38 GMT

@ezdriver wrote:
The market here in Northeast Floria is a sellers' market. We have had two price increases in four months in my neighborhood [I'm a sales counselor for a national builder] and yet Realtors are coming into my office behaving like we are still in a down market. Their buyer clients are the ones who are losing out.

If you are in a rising market, then you may need to be more open to offering more ... but certainly not more than the properties are worth [supported by recent comps].

The problem with using recent comps in our area is it sems the homes are rising by the week! The house we are looking at, same model sold for 188 last nov, 200 in jan, and then 205 in feb! The one we are looking at for sale is at 210!

Re: Can we talk offers and home prices for a moment?

BeingMaryJane — Fri, 06 Mar 2015 19:28:32 GMT

Yup! Same house. I would post the Zillow history if I knew how from my iPad.

In one subdivision there are comps from 315K to 455K... The 455K had a fully finished basement and was 4200 sq feet. The midpoint of these was a house with 3786 sq feet and no basement for 348K. Now all of the listings in this subdivision are above 400K. I guess I should've just bought last year.

Re: Can we talk offers and home prices for a moment?

mynameainttracy — Fri, 06 Mar 2015 19:32:31 GMT

I see that here. Where a house is listed for say $450k that sold for $375k just a couple of years ago. The fact that they keep selling and appraising just blows my mind.

Re: Can we talk offers and home prices for a moment?

BeingMaryJane — Fri, 06 Mar 2015 19:35:59 GMT

I trust my realtor, but considering he gets paid more if I spend more... I trust my own gut more. Maybe trusting my gut won't get us into a house soon, but it will make me feel better that I at least asked the question of why such differences. His approach is let the appraisal shake it out... Make a full price offer.

I dont really agree with that approach for several reasons. One being that my earnest money is at risk if I change my mind. I've been underwater before, it was not fun and I lost a ton of sleep worrying about something I couldn't change. I bought new.. A 2 bd room 2 bath condo for almost 300K which was ridiculous... It appraised for 301, but 2 years later it was worth 135K. I know that's probably less likely to happen now, but I want to be smart.

Re: Can we talk offers and home prices for a moment?

BeingMaryJane — Fri, 06 Mar 2015 19:38:56 GMT

Exactly!!! There is nothing that could've been done to that house in 2 years (other than decrease in inventory) that would cause it to naturally appreciate 20%. I'm leery of the whole appraisal system due to that.

Re: Can we talk offers and home prices for a moment?

Anonymous — Fri, 06 Mar 2015 22:53:48 GMT

You should check the Bay Area and NYC.

Re: Can we talk offers and home prices for a moment?

dhakaia — Sat, 07 Mar 2015 02:50:22 GMT

We are having the same experience here in suburbs north of Dallas. We just offered $210k w/ no conditions on a 2100 sqft house, that was listed for $195k... and still didn't get it. Another one before this had 14 offers... lost again obviously. Everytime we've gone to view a house recently, there have been multiple realtors with their clients coming in. Houses are sometimes gone within hours! I've nick-named these people looking to buy now, "hungry hyenas'... cause that's how you'll have to behave if you want the house you like, lol.

Re: Can we talk offers and home prices for a moment?

b1gr3dmachin3 — Sat, 07 Mar 2015 14:58:25 GMT

@dhakaia wrote:
We are having the same experience here in suburbs north of Dallas. We just offered $210k w/ no conditions on a 2100 sqft house, that was listed for $195k... and still didn't get it. Another one before this had 14 offers... lost again obviously. Everytime we've gone to view a house recently, there have been multiple realtors with their clients coming in. Houses are sometimes gone within hours! I've nick-named these people looking to buy now, "hungry hyenas'... cause that's how you'll have to behave if you want the house you like, lol.

Yup, that's exactly how I feel. Offered 212 on a 200 house and was completely rejected. Is it best to just rent and wait this thing out and buy when it settles down?