From the WSJ (Hat tip ChiFi):
• When it comes to price, be realistic. Two years ago, when sales were still slow, buyers could sometimes get away with lowball offers. Now that things have heated up, make sure your initial bid isn’t insulting.
• At the same time, pick your “walkaway number”—and stick with it.
Don’t get carried away by a frenzied bidding war, experts say. Heated back-and-forth offers can be exciting and competitive, and agents warn that it is easy to get carried away. What might start as just a few thousand dollars to top another offer could end up costing far more if buyers lose their head. Pick a number at the beginning of your search that is the absolute maximum and don’t stray from it.
• Be flexible on other offer terms. While price may be what matters most to a seller, being flexible on other selling conditions can set your offer apart. Let the sellers know if you are open to discussing closing dates and moving arrangements, or offering “rent back” to sellers who want to stay in their house beyond closing in order to finish out their children’s school year or until they have bought another property.
• Once you know you want to buy, don’t dawdle. After losing four other bidding wars, Meredith Bolton moved as quickly as she could on a two-bedroom house in Waltham, Mass. She and her husband saw the house the morning after it hit the market and within an hour, they made an offer of $400,000, which was $10,000 over the asking price.
• Get prequalified. If you are getting a mortgage, be sure to get prequalified by a bank. If mortgage rates continue to rise, you will need to get reapproved, says Mr. Lamacchia, the real-estate agent, because sellers will want to know that the rate increase hasn’t pushed you out of their price range.
• Decide what you will do if the home appraisal is below the asking price. A deal can fall apart if the property appraisal comes in below the agreed-upon price. When that happens, buyers will have to put down more cash to save the deal. This is a big reason why sellers prefer all-cash offers, as well as those where the buyer can make a large down payment.
• Position yourself as a backup in case another buyer pulls out. In this market, it isn’t unusual for sales to fall through because of low appraisals, difficult buyers or for other reasons. If you really like a property, have your agent communicate your interest even after another bid has been accepted, says Mr. Dickinson. If the buyers pull out, you could be the first in line to get the house.
• Connect with the sellers. Consider another boom-era tactic: writing a letter introducing yourself to the seller and making a personal appeal, says Carrie Georgitsis, a real-estate agent on Chicago’s North Side.
frist
Second. Principal house inspections today. Saw two houses yesterday that came on the market after we made our offer. So we have backups in case sellers are unyielding.
Nom with how your wife moves around you sure that is a good idea : )
buy now or be priced out forever. Jeez the collective memory hole of these people is amazing it used to be 20 years before stupidity re-entered a market now it is less than 8.
In a hot market why would anyone accept an offer contingent upon an appraisal?.
Decide what you will do if the home appraisal is below the asking price. A deal can fall apart if the property appraisal comes in below the agreed-upon price. When that happens, buyers will have to put down more cash to save the deal. This is a big reason why sellers prefer all-cash offers, as well as those where the buyer can make a large down payment.
Blame the Hipsters for not buying your POS.
http://www.marketwatch.com/story/the-kids-arent-buying-homes-2013-07-25
Not saying this is anyone we know….
http://finance.yahoo.com/news/sometimes-boss-really-psycho-100000866.html
[3] pain
Gave that a lot of thought. My primary criteria in my search is whether the house is one I can easily sell or rent out if need be. Especially for rental, there is precious little SFH rental inventory in this area.
Second is that we are in a good area with good schools and we need stability now for the kids. So I may not agree to move again–we may go back to commuter marriage if she decides to change jobs again. I’ll just hire a really hot nanny.
[6] condo
I’ve worked for two truly pathological people. Both were jr partners in law firms where I worked. And it wasn’t just me who thought they were nuts. They were known in the firms and in their areas for being a bit whacko.
So a real real estate question.
So I get someone who is willing to rent my place at full price. Seems nice talk to her on the phone, coming with her husband and two kids. That is it. So on phone I tell her it is available but I only do payment via a secure method safe for both of us that is set up and I need a contract and photo ID, women immediately sends me the money, with fees and deposit, it is non-refundable but I did not want to hit accept.
So I hold off a day and send her a formal lease agreement for her to sign via email and I get I am glad to sign it but I dont have a scanner or printer so I dont know how to get it back to you. Booking is too close to do mailing.
So then I say at least send me a photo ID. So she snaps a picture of her NYS License which as she told me on phone is some little town way way upstate NY but she only has a PO box. My wife goes look I dont care if she is paying up front, no contract, PO box. Our realtor told us sometimes these folks get in your place and wont get out. Without a formal lease and a real address what if they dont leave at end of 7 days. So we said no way. Now women who went and canceled her other reservation is saying she is between a rock and a hard place.
Place is all redone. I just finished on Saturday and is mint. I got a Senior Managing Director of JP Morgan coming later in October and a guy who is on Two boards whose wife is a SVP at JP Morgan. In other words real high quality customers who gave me real addresses, contracts, ID and had linked in profiles etc. and home phone numbers.
Wife is concerned we are operating a business model we rent at a reasonable price so we get more inquiries then I cherry pick the best and ones I think will repeat next summer. Reason is I want to do a test run, get a customer base for next year and since this was not a past rental property and next door neighbors are primary owners I want to start it right. Am I crazy for letting it sit empty for a week and walk away from $2,100? Or as wife says if it feels funny it most likely is funny. Also funny she asked very little about me and she was willing to pay immediately without confirming any details. Not even exact address. Either she is way too trusting or something is up. The SVP requested a contract, this lady does not want to sign a contract.
12 Hampton rentals myself and was no big deal that realtor asked for a copy of my license and for me to sign a contract. Not exactly deep stuff.
What do you landlords normally get when you rent. The summer rental is a little different as they pay first and since I do a 30 day non-refundable rule all of August is non refundable so I have their case up front so credit checks are not normally done.
#8..I learned early on that the “best” bosses seemed to have a much more “fluid” and “flexible” definition of what they said, what they meant and in things in general…..as opposed to my more black/white version of , say, the “truth”…lol!!!
Worse night with a boss every was a single career women boss on the day of her 40 birthday when she had no BF, no one to date, Dad was sick and siblings were busy and friends all married long ago. She did not tell us it was her birthday, she was furious that day and made us all work till midnight while she yelled at us for hours at end, even got into a pushing match with the manager who tried to leave at 11pm. WOW crazy time. I ran into her recently and she lost weight and is now over 50 and has accepted it is just her in her little coop with three cats for rest of her life. But man the insane button is high. Pretty much girls without marriage prospects starting on their 29 birthday it starts boiling, 30 is bad, 35 even worse, 40 is white fire crazy and then 50 they call it a day. Single women bosses who are a bit fat and pudgy between 35 and 45 are the worst
Comrade Nom Deplume, Halfwit dumbass says:
July 29, 2013 at 9:08 am
[6] condo
I’ve worked for two truly pathological people. Both were jr partners in law firms where I worked. And it wasn’t just me who thought they were nuts. They were known in the firms and in their areas for being a bit whacko
[3] pain,
Also, the bottom has dropped out of this market and I’m capitalizing. I’m UC for 25k under the asking price, and after inspections, I may demand another 15k off (I’ve already I.d.ed a third of that amt in defects and inspections aren’t done).
Since my demand will be 3 weeks before school starts, and they will be faced with the prospect of going back on the market with new defects to disclose, I’m hoping they cave. They have been there since 1989 and will collect a fat check regardless.
And just to work the agents, Ive been making noise about my misgivings over disclosure issues and have openly and loudly started looking at other houses, even to the point of telling the other agents exactly why i am looking at their houses on the chance it will filter back to the listing agent. I want the agents to think we will crater this deal to get a better one elsewhere.
They’ve been in the house since 1989 and will walk away with a fat check regardless.
“best” hookers are much more “fluid’ and “flexible”
1987 Condo says:
July 29, 2013 at 9:16 am
#8..I learned early on that the “best” bosses seemed to have a much more “fluid” and “flexible” definition of what they said, what they meant and in things in general…..as opposed to my more black/white version of , say, the “truth”…lol!!!
[12] redux
Just ignore that last duplicated line. I was rushing.
The $2100. is peanuts compared eth legal fees and hassles you’d have trying to get te out when the rental term is over.
As you said, build a solid base. JP people will probably give a good word of mouth referral, and it will go from there.
What are you definitions of defects not being disclosed? Other than a cracked foundation what should buyer disclose?
Maybe I should put in my ad, house built pre-1979 may have lead paint and asbestos. In past 50 years may have had termites. House at one point took on five feet of water. Mold, who knows. I sprayed like crazy but who knows. Electrical, hey I got a thumbs up from some guy I never met. Permits. All up to date from 2000. Since I own home to best of my knowledge I did not need permits, not that I looked anything up. Oh year flat roof over deck and garage, throw lots of tar at it every 24 months or it leaks. What is holding up back extension? Plenty of cinder blocks I jammed inthere with some rocks and stuff.
Honestly, my house is great. But after 12 years I know tons of defects. But am I supposed to disclose them all. Isnt that buyers and home inspectors job?
Heck place I just bought I did not get one single receipt. Did not get to talk to buyer once.
So what do you call something you have to disclose?
For instance. I had five feet of water in lower level. I gutter with help. Did all mold abatement myself. Correctly as my kids are there. We rewired it, re-did plumbing and resheet rocked it. Looks great. What business is it to new buyer what I did, hire an inspector and check it out.
Comrade Nom Deplume, Halfwit dumbass says:
July 29, 2013 at 9:22 am
Nom I get it, she will probably be 1099 or work form home like all of us in this industry at some point. It almost makes no sense to house backroom staff in large office parks anymore. So you may get to see more of her than you think.
Thanks, my wife balances out my greed. Trouble is my unit now is really nice. Prior owner did new windows, new floors, new ceiling fans, new kitchen and a partial bathroom makeover and a new deck. He left me a ton of dirt, some electrical, a broken dishwasher, and a need to paint entire place, caulking, and lots of minor repairs. We did everything. It was unoccupied since Sandy. 7 months no heat can cause a lot of little problems. Place looks like it is a sponsor unit. Best thing I did that was cheap he had the brown wood 70s doors up. I had them sanded, primed, doubled painted white and they look all brand new.
Tiny Violin says:
July 29, 2013 at 9:23 am
The $2100. is peanuts compared eth legal fees and hassles you’d have trying to get te out when the rental term is over.
As you said, build a solid base. JP people will probably give a good word of mouth referral, and it will go from there.
JJ [11];
29/31
http://youtu.be/H-gfxjAaZg0
Fast Eddie was in the Bahamas this past week. Not that anyone really gives a f.uck but the ocean truly is beautiful. My advice? Go all inclusive or be prepared to spend a lot for food.
oops..
Bank repossesses wrong house, throws out everything inside
http://www.nj.com/news/index.ssf/2013/07/bank_reposesses_wrong_house_throws_out_everything_inside.html#incart_flyout_news
The following chart from Credit Suisse fully explains why the US housing “recovery” has just ground to a halt: in a few short weeks, US housing affordability (a topic we first covered a month ago) has collapsed as a result of the monthly payment on the median home sold soaring by nearly 40% from under $800 to just shy of $1100, a level not seen since 2008. Now if only US personal incomes would keep pace, instead of doing this…
http://www.zerohedge.com/news/2013-07-29/chart-day-monthly-home-payment-soars-40-2008-levels
#21 Brian,
this is probably the 6th article I read in which the bank pillages the wrong house. What I am always amazed by is how they always try to lowball the person on their belongings after the fact.
Ben [23];
That’s at least the sixth separate article I’ve read about THAT PARTICULAR INSTANCE. Man Bites Dog, as they say in the news biz.
Bank got what they deserved for hiring the lowest bid to trash out the house. NPR did a piece about a kid (mom was a realtor, natch) who was banking big bucks doing trash-outs for the banks on her mother’s listings plus flipping the stuff on eBay/Craigslist.
I don’t recall if the kid was doing any forcible entry trashouts.
#19 Aaron, these two are very funny and good!! Watched a few more videos , thanks for the find~~~! Cute and laughed. I don’t laugh that often~
Ben,
What I’m always amazed at is NO ONE is held responsible for breaking & entering, property damage, or a few other criminals acts I could name.
Nom,
Whats congestion and traffic like especially heading to Wilmington or Bucks from Chadds Ford in morning? May be getting out of NY metro if job hunt does not improve. Not going to live in area that wants to pay shite and charge insane house prices and taxes. Better life elsewhere.
Main house inspection done. Some pretty big defects. Inspector said siding job is a total fail, really shoddy work. Large crack in a wall that has anchors that were done half-assed. Garage slab dropped by about an inch. Then a lot of garden variety defects.
Afterward, I learned that a comp relied upon by sellers, and one I considered the closest comp, sold for 503 after being listed for 575, then under an offer with right of first refusal for 535. Guess that right was allowed to expire.
So I am thinking now that sellers were 70k overpriced, and my offer 45k overpriced, and thats assuming structural issue is a nonissue. Guess I’m going to kill this deal.
[27] bystander
Traffic isn’t bad at all. But this isn’t NJ, and Wilm isn’t manhattan.
All siding jobs are shoddy, basically mexicans from home depot lot who do that type of work.
The crack and garage floor could be something. Shoddy siding wont cause your house to fall down.
I better cement up my foundations cracks before I sell.
Comrade Nom Deplume, Halfwit dumbass says:
July 29, 2013 at 3:12 pm
Main house inspection done. Some pretty big defects. Inspector said siding job is a total fail, really shoddy work. Large crack in a wall that has anchors that were done half-assed. Garage slab dropped by about an inch. Then a lot of garden variety defects.
Afterward, I learned that a comp relied upon by sellers, and one I considered the closest comp, sold for 503 after being listed for 575, then under an offer with right of first refusal for 535. Guess that right was allowed to expire.
So I am thinking now that sellers were 70k overpriced, and my offer 45k overpriced, and thats assuming structural issue is a nonissue. Guess I’m going to kill this deal.
Where are these mystery reposessions occuring? In MD and OH where I own property, the police are required to forcibly enter the property and be present during the eviction. Not only would this be an embarassment for the bank but it would also be “egg on yo face” for the local law enforcement.
On the topic of renting the property for 2100$ with no signed contract, identification, with only a P.O. Box number: If the person you are renting to cannot not find a Shipping and Printing store or cannot afford 20$ to overnight you the documents then they can find another place. Too bad, so sad. We are not talking rocket science here, go to the public library, UPS, Kinkos, FedEx, USPS or other store with a copier and make a copy of your license and contract. Then ship it overnight for 20$.
You can split the cost with them for all you care. You just need the signed documents in place so that you can enforce the terms and agreements of the weekly rental.
There is too much fraud across the internet fueled by anonymity for you to be playing with fire. Next thing you know she is a no-show and she is asking for her money back, minus the non-refundable deposit. You send her a check and then your bank comes back and tells you that her original check bounced. Queue the sad trombone music…
I personally don’t rent to anyone that I haven’t met in person, perferably over dinner where I can see your eating habits. Spot inspections, I’m checking the bathrooms to make sure you are not pssing all over the floors and keeping them clean.
Realtor took me to a house once that had a two inch separation between the chiminy and house. I look up and say “whats happening there?” as your vision comes down from the top of the chiminy you spot that they lower corner of the house is falling away and the chiminy is just a symptom of the hill eroding under the house because of improper drainage from gutter system. Huge separations in the cinder block wall that forms the foundation of the house.
I won’t go back inside, for fear of the house collapsing. I let the realtor know that he is welcome to go back in and hang around in there some more but I’m not doing it. Four or more people were living in the house at the time and I would say it was one or two good rainstorms from becomming a pile of rubble.
http://www.clevescene.com/scene-and-heard/archives/2013/07/24/an-ohio-bank-accidentally-foreclosed-the-wrong-house-and-repossessed-all-of-the-owners-stuff
The police don’t seem to care
31.Nicholas says:
July 29, 2013 at 3:53 pm
Where are these mystery reposessions occuring? In MD and OH where I own property, the police are required to forcibly enter the property and be present during the eviction. Not only would this be an embarassment for the bank but it would also be “egg on yo face” for the local law enforcement.
I think she is honest, but wife said she may be a scam or at best just stupid. I think most likely stupid. But to be honest I dont need, “I dont know how AC works, can you give me directions, losing beach passes mumbo jumbo all week. My rule is I rent to people richer and smarter than me, dumber and broker should stay in a hotel.
Funny folks under 40 love the internet and hate realtors. My realtor cant believe I get people who pay ahead of time non-refundable without seeing place. I still get contract, proof of ID and secure payment. She is 55 and thinks it odd. Personally I find it amazing folks from Europe booked it for ten days send me money and are trusting it will be all set up. It will be, but still lots of trust involved.
Nicholas says:
July 29, 2013 at 3:53 pm
On the topic of renting the property for 2100$ with no signed contract, identification, with only a P.O. Box number: If the person you are renting to cannot not find a Shipping and Printing store or cannot afford 20$ to overnight you the documents then they can find another place. Too bad, so sad. We are not talking rocket science here, go to the public library, UPS, Kinkos, FedEx, USPS or other store with a copier and make a copy of your license and contract. Then ship it overnight for 20$.
I’m not saying everyone obeys the law but they are there for a reason. In Ohio you have to request permission to evict a tenant. You cannot just throw their things out on the street.
1. You place an orange “Notice to Leave Property” on all enterances to the property.
2. You wait three days full days.
3. You then go to the courts and indicate that you have given notice, waited the three days, and request that an eviction notice to be sent to the property.
4. You have to wait a minimum of seven days before a court case can be held.
5. Court case is held and judge gives you a right to evict the tenant.
6. A judge gives you the right to evict the tenant.
7. You contact local law enforcement and let them know that you will be performing a reclaimation and that you would like them available.
8. The law enforcement checks your documents, knocks on the door and annouces presence and then you have your locksmith, or sledgehammer, or window smashing brick handy.
Now lets say that you gave notice to the right house. Judge signs off on eviction and then you send your goons to go reclaim the property. Goons don’t contact law enforcement and just break into someones house nearby and start stealing property.
Second scenario, you gave notice to wrong house. Judge signs off on eviction because homeowner was on vacation. Goons go and reclaim property of wrong house. Goons contact law enforcement and they help them break into wrong house.
In both scenarios, subcontractor error and clerical error, you broke into and stole from someone. Both are forgivable offenses but you must make restitution for your mistake.
Moral of this story. Have someone house sit when you are on vacation. Collect the mail, look for orange “Notice to Vacate Property” tags, etc…
Don’t be afraid of stupid people there are plenty of them around and some of them even have money.
I’m more concerned with phantoms or ghosts on the internet who play stupid but are much smarter than you suspect. I was looking for a rental for a year or two and was scouring the internet for local deals. House for rent, call up the place and they tell me that the just left the country and that the place is empty. They will mail me the keys after I send them the security deposit.
I drive by the place to check it out and go knock on the door. Man answers and I ask, “is this place for rent”. He says “No, it is for sale though”. I let him know that someone is using his pictures that he put up on MLS for a craigslist post that is advertising it as a rental. Turns out it was a scam and pretty sophisticated at that.
Best thing I can say is that you need to follow the money and never let your eyes off it when dealing with strangers met via the internet. Don’t be the one picking up pennies in front of a steamroller.
Ouch. And I thought he was an Obama fan! I guess I was mistaken.
http://www.cnbc.com/id/100921428
I particularly liked the lemonade stand comment.
JJ [34];
Funny folks under 40 love the internet and hate realtors. My realtor cant believe I get people who pay ahead of time non-refundable without seeing place. I still get contract, proof of ID and secure payment. She is 55 and thinks it odd. Personally I find it amazing folks from Europe booked it for ten days send me money and are trusting it will be all set up. It will be, but still lots of trust involved.
That makes for an interesting party game question — who do you trust more: a random person on the other side of an internet transaction (and that can range the gamut from Fortune 50 corporation to Nigerian Prince) or an average realtor. If I had to choose… let me get back to you.
Thanks for the great article, i have been searching for my first residential in Hougang and so far the results have not been great. Any suggestion?
Let’s face it, this is probably a very narrow window for the Pacers. They might as well take a bath on the West deal regardless and deal with the catastrophe later.