The house is up fo sale

[grampahol]

Finally after about a month solid of fixing up my dad's house, actually my house now since the old man died and left it to me it's finally done and up for sale with a realtor. Anyone in the mood to move to the Columbia, SC area it's a pretty decent place, 2 bedrooms, 2 bathrooms patio home? (meaning it's all on one floor with a patio slab in the backyard) The last tenant started to paint the place inside with a dark gray and messed it up big time, slopped it on. Ceiling, trim, you name it, ruined the carpet, had some sort of grease fire so I had to degrease about half the walls and trim, left all kinds of trash, junk and furniture in the place, never cut the grass in back so it was like a jungle. Bengals could have practiced back there except it's a tiny backyard thank goodness.
Anyway, it's back to looking pretty good and the structure is sound, everything works for the low, low price of $116,000..Thankfully the real estate market jumped up in the past year.
Now after I subtract all the paint, the sprayer, new carpet, new lighting fixtures, what I owe my old lady for all her help keeping the mortgage paid up, etc..I might have a few bucks leftover.. I'll net a buck twenty-five if I'm lucky.. LOL

[fredtoast]

The housing market is on fire. You should do fine.

[grampahol]

(10-05-2021, 02:46 PM)fredtoast Wrote: The housing market is on fire. You should do fine.

6 offers already including a few flippers. No way I'm selling it to a flipper for low ball offers..

[Stewy]

(10-08-2021, 02:25 PM)grampahol Wrote: 6 offers already including a few flippers. No way I'm selling it to a flipper for low ball offers..

be sure to check the solvency of the people making offers

[SladeX]

Just closed on selling our house. Make sure the deed matches the descriptions in the sales contract, etc. The signing is not necessarily just a formality, and title companies do make mistakes.
Congratulations, getting a house ready is a lot of work!

[CarolinaBengalFanGuy]

(10-05-2021, 02:46 PM)fredtoast Wrote: The housing market is on fire. You should do fine.

Tell me about it. I’m about to enter the buyers market. Need this bullshit market to collapse before then.

[fredtoast]

(10-09-2021, 08:48 AM)CarolinaBengalFanGuy Wrote: Tell me about it. I’m about to enter the buyers market. Need this bullshit market to collapse before then.

I would not even consider buying right now.

I know it sucks to pay rent, but it would be even worse to get locked into high "bubble level" mortgage payments for 20-30 years.

[*Synric*]

(10-09-2021, 11:26 AM)fredtoast Wrote: I would not even consider buying right now.

I know it sucks to pay rent, but it would be even worse to get locked into high "bubble level" mortgage payments for 20-30 years.

I work with an investment group out of Florida they are buying up real estate like crazy. They have me turning 2 houses they bought last month into Duplexes for HUD housing.

[grampahol]

(10-09-2021, 12:56 PM)Synric Wrote: I work with an investment group out of Florida they are buying up real estate like crazy. They have me turning 2 houses they bought last month into Duplexes for HUD housing.

There was an article in the NYTimes, maybe Washington Post bout the market in San Diego and what they're doing.. They're building in backyards all over the place out there putting up multiple family units on every piece of available ground in the exburbs.. There are companies building prefab units and dropping them in backyards with cranes.. It's crazy..  $800,000 single family that was built in the 50s and sold for around $15,000 and now worth millions with up to 6 units on the property..

[grampahol]

We got a contract already. If all is good it should close in November.
In the meantime I repaired the rear bearings on my truck today and managed to take about a 2x1" chunk out of my hand with a 5 pound slide hammer. I knew better than to let my hand get that close, but did it anyway when I was first getting started. Can you say OU(freakin)CH!?
I finished it all up with my hand wrapped up. lots of work if you've never done it..Gotta pull both axles out, drain the differential yank the old bearings out with the slide hammer, etc..then do it all in reverse again..

[George Cantstandya]

(10-09-2021, 11:26 AM)fredtoast Wrote: I would not even consider buying right now.

I know it sucks to pay rent, but it would be even worse to get locked into high "bubble level" mortgage payments for 20-30 years.

30 year fixed mortgage rates are actually fairly low right now.  30 year fixed about 3.38% 15 year fixed about 2.4% as of the time of this post.   This is actually a good time for someone to get into a stater home if they qualify and have the money for a decent down payment.   Better putting some of that rent money into equity and getting in while rates are low as opposed to later when the rates may go back up which will cost a lot more over the maturity of the loan. That's why prices on homes have gone up so much. Low interest rates and people are buying in at those low rates. It has become a sellers market.

But for a renter there is certainly no reason they can't get out of the renting cycle and buy a home as long as they have realistic expectations, positive credit, money for a down payment and can get into a fixed mortgage. I'd never try to talk someone out of renting if they want to own a house because renting is just that, money spent on something one will never own or have equity in.

[fredtoast]

(10-09-2021, 06:14 PM)George Cantstandya Wrote: 30 year fixed mortgage rates are actually fairly low right now.  30 year fixed about 3.38% 15 year fixed about 2.4% as of the time of this post.   This is actually a good time for someone to get into a stater home if they qualify and have the money for a decent down payment.   Better putting some of that rent money into equity and getting in while rates are low as opposed to later when the rates may go back up which will cost a lot more over the maturity of the loan.  That's why prices on homes have gone up so much.   Low interest rates and people are buying in at those low rates.    It has become a sellers market.  

But for a renter there is certainly no reason they can't get out of the renting cycle and buy a home as long as they have realistic expectations, positive credit, money for a down payment and can get into a fixed mortgage.  I'd never try to talk someone out of renting if they want to own a house because renting is just that, money spent on something one will never own or have equity in.

I know interest rates are low.  But just look what happened during the last housing bubble.  Many people ended up walking away from their mortgage when it was twice the value of the house.  Why keep paying on a $300K mortgage when the house is just worth $150K?

[George Cantstandya]

(10-10-2021, 01:16 PM)fredtoast Wrote: I know interest rates are low.  But just look what happened during the last housing bubble.  Many people ended up walking away from their mortgage when it was twice the value of the house.  Why keep paying on a $300K mortgage when the house is just worth $150K?

Banks are much more careful about over valued loans and bad loans than they were during the 08 crash.   Also I have not seen where home prices have doubled in recent years.   The article below says it has been an average 24% increase since 2019.  I also found the rest of the article interesting since it is on the topic at hand.

https://www.forbes.com/sites/billconerly/2021/10/05/the-housing-boom-is-not-a-bubble/

Here is a quote from the end of the article

Quote:Average families thinking about buying a house should be motivated by fundamental considerations: is this the right home for our family and can we afford it? If the answer is “Yes,” then go ahead and buy even if the price may decline for a year or two.

 

[SunsetBengal]

(10-10-2021, 02:32 PM)George Cantstandya Wrote: Banks are much more careful about over valued loans and bad loans than they were during the 08 crash.   Also I have not seen where home prices have doubled in recent years.   The article below says it has been an average 24% increase since 2019.  I also found the rest of the article interesting since it is on the topic at hand.

https://www.forbes.com/sites/billconerly/2021/10/05/the-housing-boom-is-not-a-bubble/

Here is a quote from the end of the article

 

It's a strange correlation that when market prices are up, banks seem to get much more free wheeling with the lending.  It's like a drug, and they can't resist it.  It's almost like no one learned a thing from all of the inflated home values and easily attainable funding that led to that huge housing crash and ensuing recession.

I should be building my new home, on the land that I already own free and clear, but I'm not.  Why?  Because lumber prices are still sky high.  I'm having my land timbered, at a great time to be selling wood.  I'll get the infrastructure and a large metal garage put on the property for now, and rent a home until the lumber prices come back to reasonable levels.

[plantmanky]

(10-09-2021, 11:26 AM)fredtoast Wrote: I would not even consider buying right now.

I know it sucks to pay rent, but it would be even worse to get locked into high "bubble level" mortgage payments for 20-30 years.

Its not really high bubble though. Sure there might be a 10% correction or so of prices if building supplies ever become available where people can build housing again at a normal rate.  

This isn't like the 07-09 bubble, prices on housing wont decrease as much.  If you actually play out the numbers housing prices are about where they should be had we not had the 07-09 bubble.  

[plantmanky]

Another thing is that foreclosures will be back on the market soon, some are now. After the first of the year you are going to see a significant increase in them. So if you get your cash right in advance, cheaper buys will be there. I know our county list of tax sale housing from 2020 taxes not paid is about double what it normally is.

[grampahol]

(10-10-2021, 04:59 PM)SunsetBengal Wrote: It's a strange correlation that when market prices are up, banks seem to get much more free wheeling with the lending.  It's like a drug, and they can't resist it.  It's almost like no one learned a thing from all of the inflated home values and easily attainable funding that led to that huge housing crash and ensuing recession.

I should be building my new home, on the land that I already own free and clear, but I'm not.  Why?  Because lumber prices are still sky high.  I'm having my land timbered, at a great time to be selling wood.  I'll get the infrastructure and a large metal garage put on the property for now, and rent a home until the lumber prices come back to reasonable levels.

Make sure they kiln dry everything and store it where insects won't get in it after drying..Otherwise you may end up with a lot of useless lumber..Air drying works, but it can take a very long time and it may end up splitting too much over that time..

[grampahol]

(10-10-2021, 06:08 PM)plantmanky Wrote: Another thing is that foreclosures will be back on the market soon, some are now.  After the first of the year you are going to see a significant increase in them.  So if you get your cash right in advance, cheaper buys will be there.  I know our county list of tax sale housing from 2020 taxes not paid is about double what it normally is.

Lots and lots of scammers out there in the foreclosure market.. Be very careful and always get a reputable inspector as well as attorney for the sale..

[SunsetBengal]

(10-10-2021, 09:34 PM)grampahol Wrote: Make sure they kiln dry everything and store it where insects won't get in it after drying..Otherwise you may end up with a lot of useless lumber..Air drying works, but it can take a very long time and it may end up splitting too much over that time..

I'm selling my logs to the mill.  It's up to them to dry store it and keep watch over it.

[grampahol]

(10-10-2021, 10:14 PM)SunsetBengal Wrote: I'm selling my logs to the mill.  It's up to them to dry store it and keep watch over it.

That's a good move..Better than leaving the whole process up to you..