Real Estate Market. Thoughts?

[RMAC757]

Noticed the house I put an offer on is under contract. No notification, no contract rejection, nothing. Some people.

Thats just freaking rude. I hate that crap. They beg for your business when the market is down and then turn right around and treat you like hell when homes start selling. Totally unacceptable.

[RMAC757]

1st, Thanks for being responsible with your money.

2nd. people do because someone at the bank / loan office etc tells them You know with your credit you can afford a more expensive home. HOOKED & REELED IN.

Old story. we were finally splurging on a new vehicle. Loan guy says, with your credit you can afford a $600 mthly payment, sure you don't want to upgrade?
The spouse says why would we go in more debt just because "we can Afford it" This is our limit for monthly ($250) payment. Finish the paperwork or we walk. Paid that note off second year.

Damn good woman, most aren't like that.

[DeusExMachina]

We've met some very rude agents. One offer, my agent asked when they would let us know because another property had offers due later in the day and we were considering put an offer in. The agent replied, "Oh, you're free to put the offer in on the other property now". That was the one I offered $25k over list and they accepted $50k (12% over). The other property was already under contract, about 8 hours before offers were "due".

[RMAC757]

We've met some very rude agents. One offer, my agent asked when they would let us know because another property had offers due later in the day and we were considering put an offer in. The agent replied, "Oh, you're free to put the offer in on the other property now". That was the one I offered $25k over list and they accepted $50k (12% over). The other property was already under contract, about 8 hours before offers were "due".

Wow, $50K over. I don't see this stopping anytime soon. A bidding war started in our neighborhood on a house ( same model as ours ) and someone ended up getting an offer accepted for 4 something last week. The funny thing is, they still held an open house on the weekend ( with the house under contract ) because it had already been scheduled . WTF what a waste of people's time and effort.

[DeusExMachina]

It might not be a waste. Only 40% of houses that go under contract get sold in the area. People put in insane offers, the house appraises for much less, and they bail.

[Dave_L]

Yup the appraisal is the tricky part. If it appraises low, you got to give cash to make up the difference.

[Madeinhb]

It might not be a waste. Only 40% of houses that go under contract get sold in the area. People put in insane offers, the house appraises for much less, and they bail.

You could write in contract about waving appraisal and they have to put cash up for whatever above

[DeusExMachina]

You could write in contract about waving appraisal and they have to put cash up for whatever above

Waiving appraisal is essentially meaningless, since they can always back out on inspection or financing. If they waive appraisal, the bank has to appraise it anyway, and if they don't have the cash to put on top the financing falls through. It's just a tactic. My realtor suggested offering cash on top of the appraisal amount to demonstrate seriousness...it says, if the house appraises for less than purchase price, I'll still pay you X above it. Whereas other buyers might bail when the house they offered $400k on appraises for $350k.

Finally got the official word on the offer from the listing agent. "The sellers on this property chose a different offer last night." I guess they couldn't be assed to email anyone.

[Aloha_Shooter]

This is sounding like 2006 all over again -- or maybe 1999. The behaviors are just like they were before the market crashed and I'm still not seeing why the stock market or housing market are worth what they're priced at today. Absent the Fed simply printing money there's just no way things should cost what they do.

[MarkUSMC88]

Low supply, high demand - sucks