3rd time was the charm for me.Holy crap.
We should find out by 5pm on Wednesday (at the latest) if they accepted it or not.
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)...I love the back and forth part of the offer/counter offer circus.
Its a buyers market. Don't take no ****.
That started happening in a few places about 6 months ago.We went through 3 homes because we always got beat out by cash offers that were more than the asking price.
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.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.
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....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.
Yeah, but again, he does not live in Michigan.you offered above asking price and only asked for 3% sellers concessions in this market?
I'm going to guess 600k. Purely a guess.Try and guess how much a 2 bedroom 1 bath with garage goes for here...
$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.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...
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.you offered above asking price and only asked for 3% sellers concessions in this market?
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.
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.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.
Yeah, me neither, my house is from the '70's. I'd be curious to hear where that figure comes from...There's no way I spend 10K a year in maintenance and my house is 50 years old....
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).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.
You guys have wives?Yeah, me neither, my house is from the '70's. I'd be curious to hear where that figure comes from...
LOLYou guys have wives?
... So when your wife demands ... $25K in landscaping ...
Right, and doesn't california also rank very high in the number of foreclosures and falling home prices? I thought they did.Yeah, but again, he does not live in Michigan.
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.Sellers are desperate to sell.
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.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.
Same in So Cal.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.
I doubt at that price in Santa Cruz it's anywhere NEAR what its peak price was.<snip>
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?