Holy crap.
We should find out by 5pm on Wednesday (at the latest) if they accepted it or not.
We should find out by 5pm on Wednesday (at the latest) if they accepted it or not.
Just submitted an offer on my first home.
- Thread starter Total Heckler
- Start date
make sure you get one of those adjustable mortgage rates. i hear they are the best
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I love the back and forth part of the offer/counter offer circus.
Its a buyers market. Don't take no ****.
Its a buyers market. Don't take no ****.
This. Sellers are desperate to sell. Since I'm assuming that your bid is contingent on the home inspection, don't be afraid to ask for money off based on things that need fixing. We got a couple extra grand knocked off for electrical and plumbing work that needed to be done, and probably could've asked for a lot more (although it's a 50 year old house)...
That started happening in a few places about 6 months ago.
Someone explained that it was a bunch of whore developers coming in, buying up what they can find, and falsely elevating the market.
Its all a scam.
True, but its been happening in California quite a lot. It sucks because it can make buyers out there feel panicked, like the market is rebounding and you're about to miss the bus. It's all BS.
You just sort of have to chill out and keep searching for a house you like.
Then, once your offer has been accepted and your loan is approved and all that good stuff, the real frustrating part begins: Getting your loan rep to actually call you back.
Whatever you do, get a conventional loan (if possible), not one of those rip-off FHA loans. Dear god how they try to eff you out of thousands with those....
In the screwz?
Reading this makes me so glad I'm not in banking anymore. I wish you and your family all the best and hope that you lowballed them so bad with your offer that not even you wouldn't accept it.
We are doing a FHA because we don't have enough saved for a large down payment (we have a good amount, but just not enough for like a 20% down). So FHA is by far our best way to get into a home.
The house already has 2 offers on it (on the newly reduced price) that the sellers are supposed to decide on by the end of today (Monday). But we were told that the offers were below the asking price and were also asking for the sellers to cover closing costs etc. Our offer was above the current asking price but still asking for the sellers to cover 3% for closing costs. So well see how our offer sits with the sellers by Wednesday at 5pm at the latest.
Very scary doing this for the first time. If this happens, this will be very life changing. I am pretty dang excited and a little nervous.
Nate, it is in Santa Cruz.
Try and guess how much a 2 bedroom 1 bath with garage goes for here...
The house already has 2 offers on it (on the newly reduced price) that the sellers are supposed to decide on by the end of today (Monday). But we were told that the offers were below the asking price and were also asking for the sellers to cover closing costs etc. Our offer was above the current asking price but still asking for the sellers to cover 3% for closing costs. So well see how our offer sits with the sellers by Wednesday at 5pm at the latest.
Very scary doing this for the first time. If this happens, this will be very life changing. I am pretty dang excited and a little nervous.
Nate, it is in Santa Cruz.
Try and guess how much a 2 bedroom 1 bath with garage goes for here...
you offered above asking price and only asked for 3% sellers concessions in this market?
I am on my 3rd home offer in the last year, the first I offered asking price and asked for the full 6%, got outbid by a cash buyer, no biggie, the second I sat on an offer for a short sale for 6 months and decided to move on, the current I am in the final stages of closing on, hopefully the current hurdle (leaky faucet) is my last hurdle.
I am on my 3rd home offer in the last year, the first I offered asking price and asked for the full 6%, got outbid by a cash buyer, no biggie, the second I sat on an offer for a short sale for 6 months and decided to move on, the current I am in the final stages of closing on, hopefully the current hurdle (leaky faucet) is my last hurdle.
Yeah, but again, he does not live in Michigan.
$700kish? Whereabouts be it? I'm prepared to also submit an offer of a designer cat, a sixer of Utah beer, $14 in Sacajawea coins, and an Electra cruiser. I think I have good chances of beating you out.
West coast communities didn't really see a housing dropoff, more of a flattening in prices while retaining demand. Offering under asking is a good way to spend three months and lots of hair loss finding a place.
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Good luck w/ the home buying.
Reading everyone's reaction reminds me how I loathe the whole process - if it wasn't enough that you're about to make the largest purchase of your life, you have these vultures and crooks trying to add thousands upon thousands.
I wish loans and banks were removed from home buying - you either have the cash or you don't. That would change things wouldn't it. See ya banks, see ya real estate agents (as we know them today).
Reading everyone's reaction reminds me how I loathe the whole process - if it wasn't enough that you're about to make the largest purchase of your life, you have these vultures and crooks trying to add thousands upon thousands.
I wish loans and banks were removed from home buying - you either have the cash or you don't. That would change things wouldn't it. See ya banks, see ya real estate agents (as we know them today).
We were lucky enough to find this place for right around 400k. We got pre-approved for much more than that, but to make monthly costs affordable we wanted to keep the cost of the home as low as possible. And this isnt a large 2 bed, 1 bath, with garage. This is under 1,000sqft.
The place is right near Emiline and Ocean st. So right off of the freeway.
The place is right near Emiline and Ocean st. So right off of the freeway.
Is Santa Cruz in SoCal?
It's in California, which as a whole is grossly over priced.
Josh -
Before you accept anything, talk to you insurance company and find out how much FULL coverage on the house will be. Talk to your accountant and find out how much the City, County, and State taxes are. Factor in an estimated $10k/year in maintenance, association dues, etc. Only after you have added ALL of this is, do you know how much your true costs are. Also, don't forget to look into the local schools, etc.
And remember, there is a price you can pay, and what you can afford to pay. For most people, it is cheaper to actually rent long-term because if an opportunity for a new job arises, you can get up and leave. If you can't afford the 20% down on a home, you really can not afford the home.
Call me if you want my cynical outlook on housing in California, and my critical financial look at what is affordable.
Josh -
Before you accept anything, talk to you insurance company and find out how much FULL coverage on the house will be. Talk to your accountant and find out how much the City, County, and State taxes are. Factor in an estimated $10k/year in maintenance, association dues, etc. Only after you have added ALL of this is, do you know how much your true costs are. Also, don't forget to look into the local schools, etc.
And remember, there is a price you can pay, and what you can afford to pay. For most people, it is cheaper to actually rent long-term because if an opportunity for a new job arises, you can get up and leave. If you can't afford the 20% down on a home, you really can not afford the home.
Call me if you want my cynical outlook on housing in California, and my critical financial look at what is affordable.
this is one of the many reasons I left California, and why I will eventually be leaving NJ.
This is true but if you have the right kind of front and back end ratios you should have no problem covering other costs such as maintenance, HOA dues etc. I always use 28-30% for the front end and 35-38% for the back end ratio for monthly debts. Granted, this can vary slightly from state to state based on cost of living but if you are within or close to those parameters then you aren't stretching beyond your means.
I know FHA is the way to go for most people with less than 20% down but there are several programs out there that have much better incentives. How good is your credit score? If it's really good you could potentially get a 10% No MIP conventional loan that would save you anywhere from 7-10k in just the first 5 years of owning the home by avoiding the monthly MIP. It would also save you about 1k at the time of closing for not having to pay upfront MIP.
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good luck total heckler !
Congrats. I bought my house in So-Cal about 2 years ago. Pretty good investment so far. I went the FHA route as well. I bought a 3 bedroom and rent out the other two rooms. Reduces my costs quite a bit and the guys that rent from me are really chill. When all is said and done, it doesn't cost me all that much more that it would have been to rent a 1 bedroom apartment...which would be maybe $400 cheaper. There's no way I spend 10K a year in maintenance and my house is 50 years old....
Thanks guys. Lots to consider. The house is in Santa Cruz (central California coast).
We have my good friend and former landlord helping us with everything. This guy owns 40 properties in the area at 30 years old. Hes VERY successful in the area and I am super pumped to have his help. Hes really helping us so much with everything because he wants my wife and I to be happy, and not just get us in a home.
My wife's mom is also a financial planner so we have a ton of help in that department.
There are a lot of things going on right now, and we are just taking it one step at a time. This has been a life changing year. Got married, new job, looking for a home to buy, etc. Crazy. Thanks for all of the advice everyone.
We have my good friend and former landlord helping us with everything. This guy owns 40 properties in the area at 30 years old. Hes VERY successful in the area and I am super pumped to have his help. Hes really helping us so much with everything because he wants my wife and I to be happy, and not just get us in a home.
My wife's mom is also a financial planner so we have a ton of help in that department.
There are a lot of things going on right now, and we are just taking it one step at a time. This has been a life changing year. Got married, new job, looking for a home to buy, etc. Crazy. Thanks for all of the advice everyone.
I would read this article: http://www.zerohedge.com/article/guest-post-should-you-buy-house-now
I won't tell you what I would do since that's a moot point. Good luck with your [potential] purchase.
I won't tell you what I would do since that's a moot point. Good luck with your [potential] purchase.
I fondly remember buying my home... hanging curtains... taking down the crime scene tape... replacing the tiles with bullet holes in them.
Yeah, me neither, my house is from the '70's. I'd be curious to hear where that figure comes from...
I was able to get a conventional loan with 5% down, granted I do have to pay PMI. I think a combination of my credit score, salary and age/length of employment allowed that (the bank seemed to bend a bit in my favor, as they generally required 20% down and no PMI, and 10% down with PMI for conventional loans).
Monthly PMI isn't that bad, given how little I had to put down as a DP and no upfront PMI. As a comparison, FHA with 5% down wanted $4,000ish upfront PMI as well as monthly PMI. So, I look at it as worthwhile to put the $4,000 upfront PMI would have cost me with FHA towards the principle on the conventional loan, while being able to have the same DP.
You guys have wives?
'Cause the average Ston^H^H^H^HJoker is talking about is AVERAGE. So when your wife demands a $50K kitchen remodel and $25K in landscaping that average starts to look realistic.
Single guys need not worry about this "average."
Good luck. Hope it sticks!
LOLYou guys have wives?
... So when your wife demands ... $25K in landscaping ...
Honey, here's a shovel and a bag of bulbs. Get digging.
Oh, and I love you.
Edit: Good luck on the house hunting. I put in an offer on my place mid April, and finally closed July 1. Had to do battle with the seller's kids (seller just wanted out of the place) on the price. Had to do battle with the mortgage company on the appraisal (VT is kinda stagnant market, no comps). Super frustrating when you have 20%, 750+ credit, you're barely tapping into your income, and they still say no.
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Right, and doesn't california also rank very high in the number of foreclosures and falling home prices? I thought they did.
Anyway, 400k for a 1,000 sq ft 2 bed, DAMN Cali is out of control for cost of living eh? I am trying to close on 3/4 acre, 1800 sq ft, 4 bed, 2.5 bath, for 120k lol.
Granted, I have michigan winters to deal with, and I don't live in so cal, but I couldn't afford to live in so cal even if I wanted to.
Not really here in the Bay Area, yes it still is more of a buyers market, but most sellers aren't that desperate, at least for now. The RE market here has been slowly climbing back up.
There are certain areas that are really high in the number of foreclosures. Quite a few of the areas that are nice to live, it's actually pretty competetive for a place right now. Take in to consideration the economy has brought a lot of places in to reach for people that they never would have been able to afford before. In the around $400K market, it's very competetive, because that is mostly your first time buyers. FWIW my house is 1000 sq ft too.
Same in So Cal.
Would I like to live in a 4000 sq ft house and pay half of what I paid for my house and have a brand new 911 Turbo parked in the garage? Sure. Watching house hunters or looking at ads in other states can be depressing, but I still love it here.
I don't want to be negative because I want to be happy for a couple starting out, but what you're doing sounds absurd. There is still another wave of recession coming and prices will continue to go down on homes in the coming market.
I bought our first home at the start of the boom for $87k, mowed the grass for 3 years and sold it for $110k as the market was peaking. Bought our second home at part of the peak and maxed out on it and we're upside down on value right now. Would NEVER do that again.
If you're taking advise from a real estate agent who owns 40 properties, I'm even more confused and frankly SHOCKED. Not a realtor in the world with half a brain would ever buy a property for asking price.
And that's their practice in a boom market. In a recession, realtors buy for half of market value. For him to be patting you on the back and trying to outbid people makes no financial sense.
Could you maybe explain what it is that justifies buying a house at it's peak price, when you know it's destined to still fall in value in the next few years?
I bought our first home at the start of the boom for $87k, mowed the grass for 3 years and sold it for $110k as the market was peaking. Bought our second home at part of the peak and maxed out on it and we're upside down on value right now. Would NEVER do that again.
If you're taking advise from a real estate agent who owns 40 properties, I'm even more confused and frankly SHOCKED. Not a realtor in the world with half a brain would ever buy a property for asking price.
And that's their practice in a boom market. In a recession, realtors buy for half of market value. For him to be patting you on the back and trying to outbid people makes no financial sense.
Could you maybe explain what it is that justifies buying a house at it's peak price, when you know it's destined to still fall in value in the next few years?
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It depends on the market, asking price today in not the same asking price from 2005-06. Prices are fairly reasonable here in the Bay Area, getting "current" asking price is not as absurd as it sounds.
SO our offer got accepted over the other 2 that the sellers had. We are officially in contract with our first home. Pretty crazy how quickly all of this has come together. Home inspections (pest and general home) are hopefully getting scheduled for tomorrow. Were also going to the city hall to check out all of the homes records sometime this week too.
I am pumped!
I am pumped!
I doubt at that price in Santa Cruz it's anywhere NEAR what its peak price was.