Newsflash: California – 5 bed / 3 ba, $850k “It has become a common practice to allow the seller to stay in the property after closing rent free.”

Making an offer on a pretty decent house in my same neighborhood. My agent in writing the offer, tells me this:”I would like to note that the seller’s agent told me that the seller would like a 2 week rent back after closing. You will see the “Seller License to Remain in Possession Addendum” on page xx of the attachment. It has become a common practice to allow the seller to stay in the property after closing rent free. This also makes your offer look great against other offers because a lot of buyers do not include this in their initial paperwork. I do request that the seller provide a $1,000 security deposit held in escrow for peace of mind that the property is in the same condition as when you first saw it. Please let me know if you have any questions.”I wrote back that I would be happy to extend COE 15 or 30 days for this guy to find a place to live but I was not crazy about a rent-back… furthermore, if I did consider a rentback, there is no chance it would be for $0.Am I crazy? Is this really common place?

Read more at https://www.reddit.com/r/RealEstate/comments/8nmmvt/california_5_bed_3_ba_850k_it_has_become_a_common/?utm_source=ifttt

Advertisements

Newsflash: First time homebuyer (NEW YORK)

The house used to be a foreclosure, however it isn’t your traditional foreclosure because the bank currently owns it. About to sign contract, I know I need to get an inspector. My lawyer told me there isn’t much leeway with banks but the banks broker said if there is anything wrong with the house that we can “figure something out”,,,, Does this mean price can still be negotiated if something is found?What are things I need to worry about? Questions I need to ask? Things to look for? The house looks great I have been in it twice.House was built in 2006, all the mechanics are in working order and have been in house since its inception. A good Friend of mine lives 3 houses down. He has the same layout and same build. His house was bought for 490k in 2014. The house next door to him ( 2 houses from me) just sold for 675k, again same build and layout.I appreciate any help as I have done by due diligence just trying to make sure I don’t miss anything. Below are the details. THANK YOU!Purchase Price: 605,000 Mortgage Amt: 544,500 Loan term 360 Interest rate 4.5% Down Payment: 60,500 Principal & interest 2758.91 Estimated Monthly Payment 3528.28

Read more at https://www.reddit.com/r/RealEstate/comments/8nly74/first_time_homebuyer_new_york/?utm_source=ifttt

Newsflash: Co-op is offering chance to buy apartments

I own a studio co-op in an apartment complex right outside New York City. I’ve owned it for 5 years and am currently renting out to a tenant. Renting it for $1,200 per month and my fixed monthly costs are $375 so it’s a nice little source of income.I received a letter that the co-op is offering the chance to buy some “renovated and ready-for-sale”, tenant-occupied apartments in the complex. Has to be bought in cash and buyer would have to pay closing costs. I’ve included a link to the details of all of the units for sale…Does this seem like a wise investment? Has anyone ever heard of a co-op doing this? Why would they be selling all of these? How much above the “Minimum Bid Price” makes sense?https://imgur.com/a/KiBNbi9The only fixed costs is the monthly maintenance (this includes property taxes).Currently married and live in an apartment 10 minutes away, no kids. Don’t need the money anytime soon.Any feedback would be appreciated!

Read more at https://www.reddit.com/r/RealEstate/comments/8nmc49/coop_is_offering_chance_to_buy_apartments/?utm_source=ifttt

Newsflash: New build

Location: Durham,NCI’m interested in purchasing in a new development. However there are no available properties but a new phase of building is coming soon. Not sure how it works. Agent told me new property move in could be a year away. Do I have to take mortgage out now and wait 12 months to move in?

Read more at https://www.reddit.com/r/RealEstate/comments/8nl8g7/new_build/?utm_source=ifttt

New Story Just Out: Last Straw For Plastic Straws? Cities, Restaurants Move To Toss These Sippers

Yet another interesting headline in the world of health and well-being. Last Straw For Plastic Straws? Cities, Restaurants Move To Toss These Sippers
As awareness grows about the environmental toll of single-use plastics, U.S. retailers and regulators alike are finding ways to decrease their use. And straws have become a prime target.

Read the full story here

Newsflash: Realtor decided closing date without us

EDIT for location: INDIANAWe made an offer to purchase a home, and in the offer we listed that we had a flexible closing timeline because we currently rent and our lease was not up until July 31.Our inspection turned up a lot of issues, and instead of making repairs, the seller has offered a flat amount in the form of cashiers checks to vendors in lieu of making repairs to the home. Ok fine. The sellers gave us a few estimates, we’ve needed to gather a few of our own as well, which we’ve been working on, and have more coming today. I was under the impression we were good to get estimates into next week, with our own vendors.I get a call and a text chain from her today that says closing is set for Monday at 10:00 am. I have no written estimates for the sellers, just verbal, and I’ve been calling the contractors to get writtens ASAP, but if we don’t have them by Monday, we don’t get that work paid for…it’s health and safety issues too.She texted again saying she looked back in her paperwork and noted that we had a flexible closing date, and that the seller’s agent had suggested the 4th and since “it fell within our timline” she agreed to it. We were never consulted on this date and feel caught off guard. How should I handle this?

Read more at https://www.reddit.com/r/RealEstate/comments/8njyxm/realtor_decided_closing_date_without_us/?utm_source=ifttt

Newsflash: Northern California Real Estate Market Overheated?

I’m wondering if anyone has any thoughts on the Northern California Real Estate market, particularly the Sacramento area. The median price, at $400K currently, has surpassed the pre bubble number of $375K set back in 2005. Obviously that 2005 number was crazy and based upon shaky lending practices and other factors. I took a look at a graph of median prices going back to 1976 and tried to estimate a trend through the 70s, 80s and 90s, when it was more relatively stable. Extending that line, I get a median price of about $325K.Certainly other factors should be considered, i.e., the average new house is bigger and has more amenities than it did in 1976. Then again, that fact would presumably contribute to the trend line.Anecdotally I see other factors, which remind me of the pre bubble days, like crazy amounts of building (supposedly to satisfy a low inventory) and riskier lending practices rearing their ugly head again (albeit not as bad as 2005), homes selling in a matter of days, multiple offers and bidding wars.One reason often cited is the low inventory of homes on the market. If the inventory is so low relative to the needs of the area, where were these people living 3 years ago before the current building boom? The answer I get locally is that these buyers are coming from the San Francisco Bay area. Can that explain the thousands of homes that have been built in the Sacramento Metropolitan area over the last 3 years and the thousands of active building permits? Isn’t it true that the SF Bay area is also experiencing a building boom? How do those two ideas coexist?Anyway, just looking for some input.

Read more at https://www.reddit.com/r/RealEstate/comments/8nj9z1/northern_california_real_estate_market_overheated/?utm_source=ifttt

Newsflash: Appraisal issues

Hey everyone need some advice/guidance. I’m in Wisconsin if the laws are different.I have had my house for about 3 years. I wanted to drop my PMI so I called my mortgage they set up a appraiser, I didn’t have a say in who.Company shows up, is there for 5 minutes and leaves. We hardly speak. I’ve never had one before while owning a home so I thought ok.I bought my house for 165. After a few weeks my mortgage denied my request. So I requested more info. I got the appraisal. I was appraised at 155. Company shorted me (Dont have the numbers in front of me) about 400sqft furnished and 350sqft in the basement. Missed some stuff. Like a bathroom in the basement but it’s not enclosed/shower is old school hanging on wall so I don’t think the shower counts and according to the appraisal company they don’t count a toilet for anything.So I filed a dispute through mortgage. A few weeks later I receive another denial with a updated appraisal. Now at 165, still missing about 70sqft of furnished space and 40sqft of basement (unfurnished). The company did not change the comparable houses, they are still at 1200ish sqft, all but one having smaller garages as well. Also in the appraisal was put that our area has a housing shortage and increase in value.I contacted the company and they were super helpful, at first. Promised return call. About two weeks later. Nothing. Made multiple attempts to contact. Wasn’t angry or anything just wanted it fixed and some understanding.So now I’m going to file another dispute with my mortgage company.What are my options? I don’t want what’s not fair but I don’t feel like this is fair.Some additional info for what it may be. At 155k my house was 125$/sqft now at 165 it’s 105$/sqft these seems odd to me but I don’t know how this works.Houses in my neighborhood have been climbing and selling for over what they’re worth. Selling around me for 250ish which they are about the same size but have 2 bath.Sadly this company has a ton of 1 star reviews so I’m not sure what I can do to get a fair assessment.TLDR Shorted sqft, updated appraisal still shorted sqft. Disputing with mortgage company because appraisal company won’t respond. Options to get this adjusted correctly? Believe the value is to low as well.Full disclaimer. I do not know how appraisals work and I am open to any education/knowledge people want to drop on me! I do not want a unfair assessment just a fair assessment. Thus far I do not feel like they’re doing this.

Read more at https://www.reddit.com/r/RealEstate/comments/8njs6j/appraisal_issues/?utm_source=ifttt

Newsflash: What factors do you consider when deciding how much to money to commit for a home renovation?

My wife and I are doing a reno on our first house that we purchased for $445k in the northern NYC suburbs. Estimates so far put the reno at about $180k. The house is in decent shape but has not been updated in 30+ years. We plan to stay here for about 10 years. Are we making a mistake by investing so much into the house? The house is a 1947 cape cod w/ 1324 sq ft but will be closer to 1800 sq ft once we are done w/ the reno.Reno will include the following: -New kitchen w/ island and new stainless steel appliances +all new plumbing-Creation of master suite w/ walk-in closet, dual sinks, shower+bath tub-New powder room for guests on ground floor-Laundry room w/ new appliances on living level-New high-velocity air system w/ tankless combination boiler/water heater-New sliding glass door from kitchen into backyard-Installation of new, slightly bigger windows on first floor.-Insulation where required. (there is currently very little to no insulation in the house.)

Read more at https://www.reddit.com/r/RealEstate/comments/8nj874/what_factors_do_you_consider_when_deciding_how/?utm_source=ifttt

Newsflash: Real Estate Appraisers: Average Pay?

I work for my family appraisal business. It’s a small company, currently two appraisers (one is my dad, who is the owner). I’ll be taking my state test this summer to get my license in real estate appraising. I’ll be discussing wages in the near future with my dad and would love to get some input on what to expect and/or what to negotiate to? Wages are not widely discussed here, so I really have nothing to go off of. Are there any resources to research averages in commission’s and salary’s in this field?

Read more at https://www.reddit.com/r/RealEstate/comments/8nj8pp/real_estate_appraisers_average_pay/?utm_source=ifttt