Housing market is the wild wild west. Any real-estate fellas on here?

[XplodingRavioli]

We recently sold our condo (all cash offer) and went under contract on another home way faster than expected. I truly didn't believe we would be under contract this fast for any home less than listing price, but it turns out that being flexible with our closing date and offering all closing costs were the main reasons the buyer went with us.

This market is insane as you're well aware, but coming in flexible with closing date to help the sellers find time for their next home/move as well as offering all closing costs helps the seller come out of pocket even less.

One issue to also consider is the appraisal. Currently we are awaiting our 2nd appraisal because our first appraisal came in $9k under our agreed purchase price with a "desktop appraisal" (Which is highway robbery). We were lucky enough to come to terms with the seller during due diligence that if the 2nd appraisal (new lender waived 2nd appraisal fee) comes in low again, we will be able to adjust the purchase price to reflect the 2nd appraisal. That could be good for us, but you need to consider if you're paying $10k+ over listing and the appraisal comes in significantly lower, you're stuck with the difference of what the lender believes your house is worth vs the agreed purchase price. Most sellers have so many offers on the table that the buyers have to decide to eat the cost or walk away.

TL;DR: Make a strong offer, but be flexible on closing date and offer to pay all closing costs. Be aware of paying over asking as your appraisal may not be near the amount you and the seller have agreed to purchase.

 

[Realtor]

I’d be happy to help
There are a few things I can recommend in this market.. I don’t mind giving out free advice if it will help you get a house..

I just went under contract on a house in ball ground today using these strategies..

if your realtor is not already implementing this, then you may need to question who your using...

1- use a lender that can compete with cash offers on closing times.. my preferred lender can close in 15 days from binding date... big competing factor .. most lenders are 30-60 days out

2- use escalation clauses , if you don’t know what this is, call me... we can discuss ... example; appraisal gap coverage, bona fied offer beating by x dollars , etc

3- be first on the scene and use quick expiration offers ( some instances ) ... do not let the agent tell you “ we are waiting until Monday to view all offers”

4- letter helps , short due diligence helps, little to no contingencies help...

Call me if you need help!

Joe

thank you for the kind words folks, @OttoMan @Molon Labe

 

[Spas-12 Owner]

OP- If you are not able to go over appraisal value ( Which I understand) then short time frames in the contract.

Closing in less then 21 days, some at 14 day closing. Short inspection/ due diligence periods.

Clean offers with POF and a letter on why you want this house.

Recommend short expiration dates on offers but let the listing agent know.

I've gotten a few buyers under contract in this market using these simple tricks. However, every buyer I worked with had to wrote 6 or more offers that got rejected before under contract.

I'm looking to sell soon. In Canton (easy access to Roswell by Hwy 140). I'm looking to do a "for sale by owner". House needs the interior "updated" but I'm pricing it based on that. I can send details if interested.

If you need anything, I'm willing to help. I also do real-estate, lol.

Licensed Realtor in Ga!

 

[Alphacpa]

Sorry, in your situation, unless you are somehow in an unsafe housing situation, DON'T BUY RIGHT NOW is ideal advice. Existing homeowners selling to buy another home can get a great price for their existing home, which helps justify overpaying for their next home. You, as only a buyer and not a seller, are limited to experience the penalty of an inflated price.

Wait it out. Guard/build your credit. Save more cash.

Very strongly suspect, in a year, you'll have pick of the litter, at firesale prices. Saw this movie in 2007, and honestly having trouble believing it's back already for a re-run, but it sure seems like it is. Was just talking with a friend who has been in the title search business for 30 years. He's lived this cycle a number of times and confirmed my own view: Housing will crash within a year.

This is horrible advice. Buy now while rates are still low. Inflation coming.

 

[CostaRicaBound]

Buying a house right now is like buying a stock at it's peak, then you're doomed to watch it freefall and not be able to do a thing about it. Take my house, I built it in 2010-12 and I know construction extremely well, know the area and know what a reasonable value is for it. I could put it on the market for $550k and have several offers in a day. In reality, the house is worth $275-300k TOPS. When the market resets (and it will, VERY soon), whoever buys something at today's prices will be so upside down that they're gonna sh*t through their ears for a few years until it crawls back up. Do not, and I say again, DO NOT buy now. Wait it out, save some more, and within a very short 12-18 months you'll see much better deals out there.

 

[Realtor]

Buying a house right now is like buying a stock at it's peak, then you're doomed to watch it freefall and not be able to do a thing about it. Take my house, I built it in 2010-12 and I know construction extremely well, know the area and know what a reasonable value is for it. I could put it on the market for $550k and have several offers in a day. In reality, the house is worth $275-300k TOPS. When the market resets (and it will, VERY soon), whoever buys something at today's prices will be so upside down that they're gonna sh*t through their ears for a few years until it crawls back up. Do not, and I say again, DO NOT buy now. Wait it out, save some more, and within a very short 12-18 months you'll see much better deals out there.

If you believe this so much then why not sell your home “ while the getting is good and everyone that buys now is doomed” ? While rampant inflation is going on and rates are historically low - Genuinely just curious .. not trying to provoke anyone.. thanks

 

[rbstern]

If you believe this so much then why not sell your home “ while the getting is good and everyone that buys now is doomed” ? While rampant inflation is going on and rates are historically low - Genuinely just curious .. not trying to provoke anyone.. thanks

Because he still has to live somewhere. A transaction is good for someone in your profession. Not necessarily for him.

No offense intended.

 

[rbstern]

This is horrible advice. Buy now while rates are still low. Inflation coming.

You might want to rethink that logic.

You're telling him to buy something that's already inflated by something like 50 to 100% in just the last year...to avoid inflation.

 

[Lionheart]

My house is for sale. $1.5 million. It would cost you way over $2 million to build it now.
I’m on 5+acres with a beautiful spring fed creek as property line all along the back. It’s a spectacular property with over 7500 heated sq ft and 10k sq ft under roof (counting the porches).
I’m in the best county in the whole damn state with the best school system.
My six month listing just expired with not a single offer. It is NOT overpriced...if anything it’s $300k too cheap. Honestly, I think Zillow and their computer algorithms called “zestimate” are killing me.
A few years ago I was in a battle with the IRS and they put a lien on the house and either they or the mortgage company started some kind of “auction” listing that I never saw. I won my IRS battle and lien is gone but the damage is done because of Zillow. Zillow is using a false “offering for sale” to value my property at less than half it’s real value. Hell if I was a buyer I would think my house is overpriced too...but it isn’t. I have challenged Zillow’s estimate...local realtor says they are buttheads and probably won’t listen.
So I’m frustrated as hell.
But, worse case scenario I’ll just stay here. It’s paid off now and a great place to live. Wife and I were just ready to downsize. It’s a bargain that would cost way more to build at todays insane material costs.
Any of you guys that want to get out of Cobb, Dekalb, Fulton, etc...pm me.

 

[Nate]

My house is for sale. $1.5 million. It would cost you way over $2 million to build it now.
I’m on 5+acres with a beautiful spring fed creek as property line all along the back. It’s a spectacular property with over 7500 heated sq ft and 10k sq ft under roof (counting the porches).
I’m in the best county in the whole damn state with the best school system.
My six month listing just expired with not a single offer. It is NOT overpriced...if anything it’s $300k too cheap. Honestly, I think Zillow and their computer algorithms called “zestimate” are killing me.
A few years ago I was in a battle with the IRS and they put a lien on the house and either they or the mortgage company started some kind of “auction” listing that I never saw. I won my IRS battle and lien is gone but the damage is done because of Zillow. Zillow is using a false “offering for sale” to value my property at less than half it’s real value. Hell if I was a buyer I would think my house is overpriced too...but it isn’t. I have challenged Zillow’s estimate...local realtor says they are buttheads and probably won’t listen.
So I’m frustrated as hell.
But, worse case scenario I’ll just stay here. It’s paid off now and a great place to live. Wife and I were just ready to downsize. It’s a bargain that would cost way more to build at todays insane material costs.
Any of you guys that want to get out of Cobb, Dekalb, Fulton, etc...pm me.

I've seen this home. Amazing! Just 3x too big and 3x too much for me haha. But an amazing home!