Real estate rant..... ************!

[GodBlessTheUSA]

I've been researching the Fed's Central Bank's dealings in the mortgage based securities (MBS). Some articles discuss the increase purchases of MBS by the feds to prevent "massive" job losses in the real estate business (builders / developers included). Now the Feds are discussing selling MBS to others to reorient its balance sheet around treasuries.

Not to be a gloom and doomer, but, if there's another pandemic shut down, or the economy stutters deep enough and long enough, then there will be a lot of missed mortgage payments, if not loan defaults. Especially considering that some people really extended themselves to buy during this high market, who's gonna get stuck holding the bag if the MBS's tank like the 2008 subprime disaster?

 

[Joshua223]

Well, we were thinking about looking at one house tomorrow, but someone already offered 25% over list price to get it.

 

[chucklenut]

I've been researching the Fed's Central Bank's dealings in the mortgage based securities (MBS). Some articles discuss the increase purchases of MBS by the feds to prevent "massive" job losses in the real estate business (builders / developers included). Now the Feds are discussing selling MBS to others to reorient its balance sheet around treasuries.

Not to be a gloom and doomer, but, if there's another pandemic shut down, or the economy stutters deep enough and long enough, then there will be a lot of missed mortgage payments, if not loan defaults. Especially considering that some people really extended themselves to buy during this high market, who's gonna get stuck holding the bag if the MBS's tank like the 2008 subprime disaster?

anytime the FED gets involved it is an attempt to slap duct tape over the leaking hole; it should last long enough for it to be a problem for the next guy

 

[GeauxLSU]

So of the four homes I've put offers on, one just went under contract for $45k over, one was accepted (I canceled after the inspection) and it was $26k over list and the other two sold and closed for $95k over list.

 

[lostchild]

Well, we were thinking about looking at one house tomorrow, but someone already offered 25% over list price to get it.

Go look, and if you like it, make your offer as a backup contract.
Someone outbid us by $40,000, we went in as backup with our original offer. They dropped out (don’t know why), we got the house.

 

[Animal_Mother]

Go look, and if you like it, make your offer as a backup contract.
Someone outbid us by $40,000, we went in as backup with our original offer. They dropped out (don’t know why), we got the house.

That’s what I am doing. Still waiting fingers crossed.

 

[webicknell]

So of the four homes I've put offers on, one just went under contract for $45k over, one was accepted (I canceled after the inspection) and it was $26k over list and the other two sold and closed for $95k over list.

I have thought about selling and moving and take advantage of the significant profit in my home... But I do not want to get into bidding wars and over pay for a new home.... So I sit still

 

[Grub Master]

I've been attempting a relocation for the last 6 months. I assumed at the time the RE market had peaked. WRONG! It's gotten steadily worse.
Real kick in the gut this week. Put another offer in on a home. NOTHING like what we initially said we wanted (home on acreage in the boonies) but at this point, I'm just tired of it all and want to get there and get it done.
So we offered, all cash, $16k ABOVE asking, NO inspection/option period or inspection contingency, free leaseback, etc... etc.... I couldn't believe I was actually doing that but here is the stats from the listing agent.
We ended up with 35 showings and 17 offers in 3 days.
The lowest offer we received was $11k above asking.
11 offers were $xxx,xxx ($55k above asking) or more.
8 offers were cash.
Only 3 offers included a home warranty
The highest option fees were $500
Only 1 offer had a 10 day option period, the rest were 3-7 days.
4 offers waived the option period
10 offers included buyer paying title policy (expensive there)
all 17 offers included buyer paying for survey
4 offers had full appraisal waiver
3 offers had partial appraisal waiver
2 offers had no appraisal waiver.

Stuff I passed on 6 months ago because I thought it was too expensive is now another $100k. Insanity doesn't begin to describe it.

GeauxLSU You might look for a rental house that fits your needs and make an offer to buy it. I've sold 2 of my rentals that way. I wasn't looking to sell but someone wanted the house more than I did and the timing was right. Before the market went crazy, investors looked to get $1500 a month rent on a $150K house. Now you're lucky to get $2000 on a $300K house. While you are getting more rent your return isn't what you would like and cash in the bank might be more important.

 

[lostchild]

I have thought about selling and moving and take advantage of the significant profit in my home... But I do not want to get into bidding wars and over pay for a new home.... So I sit still

At the current rate, by the time you get through closing, you may not be able not to buy the house you’re selling.
Zillow is showing properties in our area going up 10% per month as we go into prime moving season.
Waiting to see what the house across the street lists/sells for when they put it up next month.

 

[GeauxLSU]

GeauxLSU You might look for a rental house that fits your needs and make an offer to buy it. I've sold 2 of my rentals that way. I wasn't looking to sell but someone wanted the house more than I did and the timing was right. Before the market went crazy, investors looked to get $1500 a month rent on a $150K house. Now you're lucky to get $2000 on a $300K house. While you are getting more rent your return isn't what you would like and cash in the bank might be more important.

The rents where I'm headed are about $3,500 month for anything worthwhile and the company will only pay to move me once and will pay for a lot of the closing costs if I move within a certain time frame (fast approaching). I can't afford to not find something to purchase that will work for at least a few years. The clock is ticking....