OT: Is this the most insane real estate market?
- Thread starter Morrischiano
- Start date
No, but you look at your monthly payment and know that you can’t do better renting.
Exactly. This is the devil of it all… millennials still, by︅ and large — not homeowners! That’s a big big big problem. And not goin away anytime soon.
This. People paying 3% probably aren’t in a hurry to sell, even if their paper equity is shrinking.
If you are in the realm of PMI on a 700k mortgage, you shouldn't be taking out a 700k mortgage.
Happens all the time. You have to keep in mind that there are a lot of home buyers in Norther NJ and there isn't all that much worthwhile under $650k. And if you are going less than that, you also better have another 100-250k to fix it up. And that was even before the housing prices went crazy.
So, let's even say you get rid of PMI, at 6+% on a 600k+ mortgage, your payment with taxes and insurance is crazy. So, if a current home owner wants to sell, they will have to drop down prices or it stays on the market.
Home prices drop.
#truth
Now is not the time to stretch financial limits.
We've already seen that this WILL happen, more often than you think. When "real estate only goes up" and people have to stretch to get into the house "they deserve" and get into bidding wars instead of buying downmarket, you will find this. It's another signal of a blow-off top to the market.
Just went to contract on my house at the beach. Had a valuation done end of last year. Listed it 3 weeks ago for $400K more that what the valuation was back in December. Received 5 offers in the first 10 days. Then told everyone Friday at 2 pm best and final offers. Received 6 offers and took one $125K over my asking price. Yesterday I received an unsolicited offer on a vacant lot I have in Florida. It was $200K more than valuation I had done last year too.
OK so an update. Our realtor just got a message yesterday from the listing agent saying the people who out bid us are d!cking around (still in attorney review from Tuesday) and if we match the accepted offer, the owner would kill the other deal.
Here's the rub. The house listed at 1.95M. We offered 2.15M. They want us to go up to 2.25M. My wife, as any wife, is willing.
I've never been divorced but from what I understand, I'm not sure it's worth $100K in hassle. I'm worried that we we top tick the market. FML...
Stonks only go up......oh, wait a minute......
Efff no. If you are the cover, stick to your number. Full disclaimer, I’m not a divorce attorney
I lost track, is this a second/beach house purchase? Regardless, the main question is, when are you going to sell this house? Never or very long-term, then I would probably be okay with the extra $100k. If you are unsure or planning to sell in the next 5 years or so, be aware that you will likely be selling at a lower price.
Cover = 2nd best.
If you own a bond and want to sell it, you might show it to 10 dealers. They will come back with a level and the 2nd best is the 'cover'. It tells you how competitive the offers were.
So in your case, if you were the 'cover' and were $100k less than the highest offer, you might want to ask yourself if paying an incremental $100k is a great idea since only one other person (the higher bidder) thought the place was worth more than you.
I also assume that it means he was 2nd highest bidder and maybe the winner of the bid had been 100k higher...which is crazy. The sellers are getting dicked around but now expect you to match the winning bid even though the winning bidder is dicking them.
Sellers seem like dicks but maybe they are smart if they still get the extra 100k...
But this is why I am going to keep renting for another year
I bought my 1st house in 1988 when the market was pretty strong. The market tanked shortly after buying it. I did some upgrades like all new windows, roof, front porch and widened driveway. 10 years later, the market still hadn't recovered and I sold it for $3K less than I paid. The market took off again right after I bought my next house.
My guess is this market is going to tank soon. I'd call the seller's bluff and repeat your original offer.
@jmc11201 explained it correctly. 100k seems like an outlier bid and the bidder realizes it now too. I think your best move is to go up 25k to 50k and see if the seller bites. Make it a win win situation. You know the old saying …..Happy wife
It’s in one of the better towns in Morris County. We were 45 LTV on our 2.15 offer. Winning offer was supposed all cash at 2.25.
I know a guy who bought a nice Hoboken apartment in 1987. Walking distance to PATH. Parking. By 1991 it was well underwater. He sold it in 1995 for what he paid for it. The people who bought it had a kid and offered it to me in 1998 at close to twice what they had paid for it. I passed and it continued to go up. In your case, the nice thing is that you bought your next house and retained your exposure thereby reaping the appreciation.
some advice for those younger couples just starting out on their home purchases. My wife and I always bought the worst house in a nice neighborhood, fixed them up ourselves and sold at a profit after a few years, which allowed us to slowly upgrade over the years. After 30 years of marriage we are hopefully on our 5th and final house since its only 2 years old and needs no work.
works well if you can do a lot of the fixing yourself. most young ppl aren't that handy...paying contractors to do everything can change the math on that.
Most of it isn't that hard especially with all the how to videos on Youtube. Sweat equity is the key. Obviously doing a kitchen renovation is a lot more difficult than a bathroom or landscaping, projects that big we paid someone to do.
We've had tenants who have claimed they did not know how (or refused to) tighten screws on doorknobs that loosened. I know people who are reluctant to replace a light fixture or a ceiling fan or a faucet. For us, half of it is doing it "right" and the other half is not having to wait and pay someone else for something we can do ourselves.
That's a good offer. I'd hold. That deal might fall apart for 2.25. Not a ton of people fishing in that price range.
You've been talking about Stone Harbor since you got married. I doubt you'll ever pull the trigger with the way the market acts like a roller coaster.
Besides they just passed a new rule in Stone Harbor and Avalon that the trash collectors will not be bringing the cans to your house after emptying. They will leave them on the curb and you have to get them yourself. People are pissed. True story
Definitely tough right now to buy. Sadly, one of our biggest obstacles to buying has been mitgated.....being able to stay down the shore the entire summer and work remotely. The latter won't change, so let's see how long it takes for prices to settle down.
Not passed yet (at least in SH). Still under discussion and being revised.
Stone Harbor Nears Ordinance Changes Dealing with Trash
STONE HARBOR – At a Borough Council meeting April 19, Stone Harbor’s standing committee on Public Works updated the full council on changes to a proposed ordinance dealing with trash pickup. After an April 5 council meeting in which discussion of the proposed ordinance led to a significant...
www.capemaycountyherald.com
Can you imagine how much longer it takes them to do their routes? I guess they don't like the empty cans laying in the street lol.Not passed yet (at least in SH). Still under discussion and being revised.
Stone Harbor Nears Ordinance Changes Dealing with Trash
STONE HARBOR – At a Borough Council meeting April 19, Stone Harbor’s standing committee on Public Works updated the full council on changes to a proposed ordinance dealing with trash pickup. After an April 5 council meeting in which discussion of the proposed ordinance led to a significant...
Well he's out if that passes. Might have to start slumming in Avalon or Cape May instead.
A lot of towns don't bring the garbage cans down to the street or back to the house
You put the garbage at the curb and return the can to your house yourself
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