On 5/2/2021 8:32 PM, Clare Snyder wrote:
> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>
>> On 5/2/2021 4:42 PM, Bill wrote:
>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>
>>>> Their offer was accepted, not just based on the offer price, but also
>>>> based on the appraisal clause. Another offer also had an escalation
>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>> close!
>>>
>>> I'll assume my previous message has been read. Color my cynical but all
>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>> buyers on their new home. The way property is appreciating, it will
>>> surely be a great investment in the long run, and you can live in it! :)
>>>
>>
>> I wonder in 3 to 5 years if the house price today will still be a good
>> investment when interest rates are back up.
> I'm betting there will be a lot of people with upside down mortgages
> in 5 to 10 years in several areas of the country. Our area is less
> likely to see it than many others due to our resiliant economy - but
> %7 would definitely be painfull for MANY buyers - even here.
>

Exactly. A scenario like: I paid 500k for this house, owe 400k and the
highest offer is 300k.

Live there long enough and you are ok, but if you have to relocate, you
are screwed.

On Sunday, May 2, 2021 at 11:22:58 PM UTC-4, k...@notreal.com wrote:
> On Sun, 2 May 2021 20:07:29 -0700 (PDT), DerbyDad03
> <teama...@eznet.net> wrote:
>
> >On Sunday, May 2, 2021 at 9:35:40 PM UTC-4, k...@notreal.com wrote:
> >> On Sun, 2 May 2021 12:43:35 -0700 (PDT), DerbyDad03
> >> <teama...@eznet.net> wrote:
> >>
> >> >What a crazy housing market this is! My #1 son and his GF just
> >> >found out that their offer has been accepted.
> >> >
> >> >Here is how houses are being bought these days…
> >> >
> >> >First, I should note that the submission period for offers was the 48
> >> >hours after the house hit the market. This was one of those listings
> >> >where all offers would be reviewed at the same time and the sellers
> >> >would choose the one that they liked the best.
> >> >
> >> >Since my son and his GF are relocating to a different state, they
> >> >haven’t even seen the house in person. Just pictures, a video tour
> >> >and their agent’s assurance that the house was listed at a great
> >> >price, way under what she expected it to sell for. (She was right)
> >> >They submitted their offer within a few hours of the house being
> >> >listed. There was a total of 12 offers submitted in that 48 hour period.
> >> >
> >> >They submitted an offer at full asking price ($370K), no contingencies.
> >> >The offer included an escalation clause. The escalation clause would
> >> >automatically increase their offer to $1000 more than the highest offer
> >> >submitted, but not to exceed $410K. They also included an "appraisal
> >> >clause" which stated that they would give the sellers up to $15K above
> >> >the appraised value, not to exceed $425K.
> >> >
> >> >Their offer was accepted, not just based on the offer price, but also
> >> >based on the appraisal clause. Another offer also had an escalation
> >> >clause that maxed out at $410K, but the appraisal clause was only
> >> >$13K above the appraisal value, $2K less than their offer. That was
> >> >close!
> >> >
> >> >So they may pay as much as $425K, but they may pay less than the
> >> >$410K if the appraisal is low – assuming it’s not so low that the seller
> >> >backs out. Their agent is sure that the appraised value won’t be low
> >> >enough for that to happen. The seller is moving out of town and needs
> >> >to get the house sold, thus the comparatively low asking price.
> >> >
> >> >One other clause was a 15 day due-diligence clause, which was
> >> >accepted. Even though the offer was “as-is” and not contingent on an
> >> >inspection, they are still going to have one done and can use that to
> >> >negotiate repairs or get out of the contract if the seller’s disclosure form
> >> >is not accurate. They are hoping that at least one of them can be present
> >> >for the inspection.
> >> The last two houses we've bought didn't allow us to be present at
> >> inspection. One was new, so I wasn't worried but this one concerned
> >> me a bit (foreclosure)
> >
> >Who said that you weren't allowed? Wasn't he working on your dime?
> Agent and inspector.
> >For the 2 houses that my daughter put offers in on, both inspectors let her,
> >me and SWMBO be present at the inspection. They answered every question
> >I had as I followed them around taking notes. Real nice guys. The inspectors
> >worked for my daughter and we made sure we got her money's worth.
> Mine did in NY and VT, too.
> >Good thing too. She was infatuated with the first house but it needed way too
> >many repairs. It was the inspection that allowed her to get out of the contract.
> >If Mom and I hadn't been there I don't think she would have heard a thing that
> >the inspector said.
> I didn't say they couldn't be inspected, just that I couldn't be
> there. I did get the inspection reports.

Our discussion was related to be allowed to tag along with the inspector, not
about the allowance of the inspection itself.

Mentally insert the words "we allowed to be there" after "Good thing" and re-read
that paragraph.

On 5/3/2021 9:34 AM, Ed Pawlowski wrote:

> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
> highest offer is 300k.

On the positive side, if that's true, then you would probably be able to
get your "next" house for 300k. So, you only get soaked once.

--
This email has been checked for viruses by Avast antivirus software.
https://www.avast.com/antivirus

hubops@ccanoemail.ca writes:
>On Sun, 02 May 2021 20:32:45 -0400, Clare Snyder <clare@snyder.on.ca>
>wrote:
>
>>On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>
>>>On 5/2/2021 4:42 PM, Bill wrote:
>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>
>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>> close!
>>>>
>>>> I'll assume my previous message has been read. Color my cynical but all
>>>> I have to say is "what a coincidence!".�� That said, I congratulate the
>>>> buyers on their new home. The way property is appreciating, it will
>>>> surely be a great investment in the long run, and you can live in it! :)
>>>>
>>>
>>>I wonder in 3 to 5 years if the house price today will still be a good
>>>investment when interest rates are back up.
>>
>> I'm betting there will be a lot of people with upside down mortgages
>>in 5 to 10 years in several areas of the country. Our area is less
>>likely to see it than many others due to our resiliant economy - but
>>%7 would definitely be painfull for MANY buyers - even here.
>>
>
>
>... move to Milverton ! :-)
>
>https://www.remax.ca/on/milverton-real-estate/58-main-street-n-wp_id292973981-lst
>

Hmm. Bedroom without a window is a no-no around here.

Note that that 426k cad is about 330k usd.

I think one of the variables leaked through:

Sqft: details.size

Bad programmer.

On 5/3/2021 9:34 AM, Ed Pawlowski wrote:
> On 5/2/2021 8:32 PM, Clare Snyder wrote:
>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>
>>> On 5/2/2021 4:42 PM, Bill wrote:
>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>
>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>> close!
>>>>
>>>> I'll assume my previous message has been read. Color my cynical but all
>>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>>> buyers on their new home. The way property is appreciating, it will
>>>> surely be a great investment in the long run, and you can live in
>>>> it! :)
>>>>
>>>
>>> I wonder in 3 to 5 years if the house price today will still be a good
>>> investment when interest rates are back up.
>>    I'm betting there will be a lot of people with upside down mortgages
>> in 5 to 10 years in several areas of the country. Our area is less
>> likely to see it than many others due to our resiliant economy - 
but
>> %7 would definitely be painfull for MANY buyers - even here.
>>
>
> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
> highest offer is 300k.
>
> Live there long enough and you are ok, but if you have to relocate, you

> are screwed.
The investment firm we use said stand pat in Pelosi's 2009 down turn. We
listened to him and as far as our investments we are now ahead.

There were people who got all excited when the housing market went to
.... and sold their house when the value went upside down relative to
the mortgage. I could understand if you were relocating where it was
no longer possible to commute from the old house and it was required.
However to sell because you were upside down, and then pay the same
amount as you mortgage for rent, did not seem like a good economic decision.

On Mon, 3 May 2021 13:53:59 -0400, knuttle
<keith_nuttle@sbcglobal.net> wrote:

>On 5/3/2021 9:34 AM, Ed Pawlowski wrote:
>> On 5/2/2021 8:32 PM, Clare Snyder wrote:
>>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>>
>>>> On 5/2/2021 4:42 PM, Bill wrote:
>>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>>
>>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>>> close!
>>>>>
>>>>> I'll assume my previous message has been read. Color my cynical but all
>>>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>>>> buyers on their new home. The way property is appreciating, it will
>>>>> surely be a great investment in the long run, and you can live in
>>>>> it! :)
>>>>>
>>>>
>>>> I wonder in 3 to 5 years if the house price today will still be a good
>>>> investment when interest rates are back up.
>>>    I'm betting there will be a lot of people with upside down mortgages
>>> in 5 to 10 years in several areas of the country. Our area is less
>>> likely to see it than many others due to our resiliant economy - 
>but
>>> %7 would definitely be painfull for MANY buyers - even here.
>>>
>>
>> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
>> highest offer is 300k.
>>
>> Live there long enough and you are ok, but if you have to relocate, you
>
>> are screwed.
>The investment firm we use said stand pat in Pelosi's 2009 down turn. We
>listened to him and as far as our investments we are now ahead.
>
>There were people who got all excited when the housing market went to
>.... and sold their house when the value went upside down relative to
>the mortgage. I could understand if you were relocating where it was
>no longer possible to commute from the old house and it was required.
>However to sell because you were upside down, and then pay the same
>amount as you mortgage for rent, did not seem like a good economic decision.

Who was it that said "buy in a falling market and sell in a rising
one"?

Of course there's also the classic "buy low, sell high". But both
involve knowing what "low" and "high" are and having the luxury of
waiting.

On Monday, May 3, 2021 at 2:20:58 PM UTC-4, J. Clarke wrote:
> On Mon, 3 May 2021 13:53:59 -0400, knuttle
> <keith_...@sbcglobal.net> wrote:
>
> >On 5/3/2021 9:34 AM, Ed Pawlowski wrote:
> >> On 5/2/2021 8:32 PM, Clare Snyder wrote:
> >>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <e...@snet.xxx> wrote:
> >>>
> >>>> On 5/2/2021 4:42 PM, Bill wrote:
> >>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
> >>>>>
> >>>>>> Their offer was accepted, not just based on the offer price, but also
> >>>>>> based on the appraisal clause. Another offer also had an escalation
> >>>>>> clause that maxed out at $410K, but the appraisal clause was only
> >>>>>> $13K above the appraisal value, $2K less than their offer. That was
> >>>>>> close!
> >>>>>
> >>>>> I'll assume my previous message has been read. Color my cynical but all
> >>>>> I have to say is "what a coincidence!". That said, I congratulate the
> >>>>> buyers on their new home. The way property is appreciating, it will
> >>>>> surely be a great investment in the long run, and you can live in
> >>>>> it! :)
> >>>>>
> >>>>
> >>>> I wonder in 3 to 5 years if the house price today will still be a good
> >>>> investment when interest rates are back up.
> >>> I'm betting there will be a lot of people with upside down mortgages
> >>> in 5 to 10 years in several areas of the country. Our area is less
> >>> likely to see it than many others due to our resiliant economy -
> >but
> >>> %7 would definitely be painfull for MANY buyers - even here.
> >>>
> >>
> >> Exactly. A scenario like: I paid 500k for this house, owe 400k and the
> >> highest offer is 300k.
> >>
> >> Live there long enough and you are ok, but if you have to relocate, you
> >
> >> are screwed.
> >The investment firm we use said stand pat in Pelosi's 2009 down turn. We
> >listened to him and as far as our investments we are now ahead.
> >
> >There were people who got all excited when the housing market went to
> >.... and sold their house when the value went upside down relative to
> >the mortgage. I could understand if you were relocating where it was
> >no longer possible to commute from the old house and it was required.
> >However to sell because you were upside down, and then pay the same
> >amount as you mortgage for rent, did not seem like a good economic decision.
> Who was it that said "buy in a falling market and sell in a rising
> one"?
>
> Of course there's also the classic "buy low, sell high". But both
> involve knowing what "low" and "high" are and having the luxury of
> waiting.

....and there's nothing wrong with selling low and buying low if
what you buy is expected to recover faster/higher than
what you sold.

Reversals often offer opportunities.

Similarly, buying high is perfectly OK if you what you buy is
expected to outperform what you currently own.

Active managers do this all the time.

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
> What a crazy housing market this is! My #1 son and his GF just
> found out that their offer has been accepted.
>
> Here is how houses are being bought these days…
>
> First, I should note that the submission period for offers was the 48
> hours after the house hit the market. This was one of those listings
> where all offers would be reviewed at the same time and the sellers
> would choose the one that they liked the best.
>
> Since my son and his GF are relocating to a different state, they
> haven’t even seen the house in person. Just pictures, a video tour
> and their agent’s assurance that the house was listed at a great
> price, way under what she expected it to sell for. (She was right)
> They submitted their offer within a few hours of the house being
> listed. There was a total of 12 offers submitted in that 48 hour period.
>
> They submitted an offer at full asking price ($370K), no contingencies.
> The offer included an escalation clause. The escalation clause would
> automatically increase their offer to $1000 more than the highest offer
> submitted, but not to exceed $410K. They also included an "appraisal
> clause" which stated that they would give the sellers up to $15K above
> the appraised value, not to exceed $425K.
>
> Their offer was accepted, not just based on the offer price, but also
> based on the appraisal clause. Another offer also had an escalation
> clause that maxed out at $410K, but the appraisal clause was only
> $13K above the appraisal value, $2K less than their offer. That was
> close!
>
> So they may pay as much as $425K, but they may pay less than the
> $410K if the appraisal is low – assuming it’s not so low that the seller
> backs out. Their agent is sure that the appraised value won’t be low
> enough for that to happen. The seller is moving out of town and needs
> to get the house sold, thus the comparatively low asking price.
>
> One other clause was a 15 day due-diligence clause, which was
> accepted. Even though the offer was “as-is” and not contingent on an
> inspection, they are still going to have one done and can use that to
> negotiate repairs or get out of the contract if the seller’s disclosure form
> is not accurate. They are hoping that at least one of them can be present
> for the inspection.
>
> If the house appraises at the $410K level, they will end up paying $55K
> (15%) over the listing price. Holy crap!
>
>

Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:

>On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>> What a crazy housing market this is! My #1 son and his GF just
>> found out that their offer has been accepted.
>>
>> Here is how houses are being bought these days…
>>
>> First, I should note that the submission period for offers was the 48
>> hours after the house hit the market. This was one of those listings
>> where all offers would be reviewed at the same time and the sellers
>> would choose the one that they liked the best.
>>
>> Since my son and his GF are relocating to a different state, they
>> haven’t even seen the house in person. Just pictures, a video tour
>> and their agent’s assurance that the house was listed at a great
>> price, way under what she expected it to sell for. (She was right)
>> They submitted their offer within a few hours of the house being
>> listed. There was a total of 12 offers submitted in that 48 hour period.
>>
>> They submitted an offer at full asking price ($370K), no contingencies.
>> The offer included an escalation clause. The escalation clause would
>> automatically increase their offer to $1000 more than the highest offer
>> submitted, but not to exceed $410K. They also included an "appraisal
>> clause" which stated that they would give the sellers up to $15K above
>> the appraised value, not to exceed $425K.
>>
>> Their offer was accepted, not just based on the offer price, but also
>> based on the appraisal clause. Another offer also had an escalation
>> clause that maxed out at $410K, but the appraisal clause was only
>> $13K above the appraisal value, $2K less than their offer. That was
>> close!
>>
>> So they may pay as much as $425K, but they may pay less than the
>> $410K if the appraisal is low – assuming it’s not so low that the seller
>> backs out. Their agent is sure that the appraised value won’t be low
>> enough for that to happen. The seller is moving out of town and needs
>> to get the house sold, thus the comparatively low asking price.
>>
>> One other clause was a 15 day due-diligence clause, which was
>> accepted. Even though the offer was “as-is” and not contingent on an
>> inspection, they are still going to have one done and can use that to
>> negotiate repairs or get out of the contract if the seller’s disclosure form
>> is not accurate. They are hoping that at least one of them can be present
>> for the inspection.
>>
>> If the house appraises at the $410K level, they will end up paying $55K
>> (15%) over the listing price. Holy crap!
>>
>>
>
>
>Not a good idea to buy a home for the time being. Prices are going
>crazy and for no good reason. It is a fluke.

Seems to be an urban phenomenon, we are rural area near a university.
Prices are normal you can buy a house for 100 thousand that is really
decent. But we will look to move at some point, mowing about 2 1/2
acres with ruts and mole hills realigns things here and there.

Markem618 <markrm618@hotmail.com> writes:
>On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:
>
>>On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>>> What a crazy housing market this is! My #1 son and his GF just
>>> found out that their offer has been accepted.
>>>
>>> Here is how houses are being bought these days�
>>>
>>> First, I should note that the submission period for offers was the 48
>>> hours after the house hit the market. This was one of those listings
>>> where all offers would be reviewed at the same time and the sellers
>>> would choose the one that they liked the best.
[snip]

>>>
>>> If the house appraises at the $410K level, they will end up paying $55K
>>> (15%) over the listing price. Holy crap!
>>>
>>>
>>
>>
>>Not a good idea to buy a home for the time being. Prices are going
>>crazy and for no good reason. It is a fluke.
>
>Seems to be an urban phenomenon, we are rural area near a university.

Ames Iowa is pretty rural, near a university, and you can't find much
for less than $200k, and modern family-sized homes run $300 to $1M.

Even condo's are going for $300k.

https://www.realtor.com/realestateandhomes-search/Ames_IA

On Monday, May 3, 2021 at 7:28:36 PM UTC-4, Markem618 wrote:
> On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:
>
> >On 5/2/2021 2:43 PM, DerbyDad03 wrote:
> >> What a crazy housing market this is! My #1 son and his GF just
> >> found out that their offer has been accepted.
> >>
> >> Here is how houses are being bought these days…
> >>
> >> First, I should note that the submission period for offers was the 48
> >> hours after the house hit the market. This was one of those listings
> >> where all offers would be reviewed at the same time and the sellers
> >> would choose the one that they liked the best.
> >>
> >> Since my son and his GF are relocating to a different state, they
> >> haven’t even seen the house in person. Just pictures, a video tour
> >> and their agent’s assurance that the house was listed at a great
> >> price, way under what she expected it to sell for. (She was right)
> >> They submitted their offer within a few hours of the house being
> >> listed. There was a total of 12 offers submitted in that 48 hour period.
> >>
> >> They submitted an offer at full asking price ($370K), no contingencies..
> >> The offer included an escalation clause. The escalation clause would
> >> automatically increase their offer to $1000 more than the highest offer
> >> submitted, but not to exceed $410K. They also included an "appraisal
> >> clause" which stated that they would give the sellers up to $15K above
> >> the appraised value, not to exceed $425K.
> >>
> >> Their offer was accepted, not just based on the offer price, but also
> >> based on the appraisal clause. Another offer also had an escalation
> >> clause that maxed out at $410K, but the appraisal clause was only
> >> $13K above the appraisal value, $2K less than their offer. That was
> >> close!
> >>
> >> So they may pay as much as $425K, but they may pay less than the
> >> $410K if the appraisal is low – assuming it’s not so low that the seller
> >> backs out. Their agent is sure that the appraised value won’t be low
> >> enough for that to happen. The seller is moving out of town and needs
> >> to get the house sold, thus the comparatively low asking price.
> >>
> >> One other clause was a 15 day due-diligence clause, which was
> >> accepted. Even though the offer was “as-is” and not contingent on an
> >> inspection, they are still going to have one done and can use that to
> >> negotiate repairs or get out of the contract if the seller’s disclosure form
> >> is not accurate. They are hoping that at least one of them can be present
> >> for the inspection.
> >>
> >> If the house appraises at the $410K level, they will end up paying $55K
> >> (15%) over the listing price. Holy crap!
> >>
> >>
> >
> >
> >Not a good idea to buy a home for the time being. Prices are going
> >crazy and for no good reason. It is a fluke.
> Seems to be an urban phenomenon, we are rural area near a university.
> Prices are normal you can buy a house for 100 thousand that is really
> decent. But we will look to move at some point, mowing about 2 1/2
> acres with ruts and mole hills realigns things here and there.

Some interesting coincidences here...but not the same options.

They are buying this house in rural area, near a university. The lot
is about 2 1/2 acres. 2 sides of the lot border farmland. The
neighborhood was built on farmland. It’s the only neighborhood
for miles.

$100K houses are nonexistent. Well, I guess there might be a shack
or two. In fact, they can’t believe that this house was listed for *only*
$370K. We’ll see what it appraises at. I bet it will be more than that.

On Mon, 03 May 2021 06:56:06 -0400, hubops@ccanoemail.ca wrote:

>On Sun, 02 May 2021 22:11:48 -0400, krw@notreal.com wrote:
>
>>On Sun, 02 May 2021 20:59:01 -0400, hubops@ccanoemail.ca wrote:
>>
>>>On Sun, 02 May 2021 20:32:45 -0400, Clare Snyder <clare@snyder.on.ca>
>>>wrote:
>>>
>>>>On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>>>
>>>>>On 5/2/2021 4:42 PM, Bill wrote:
>>>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>>>
>>>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>>>> close!
>>>>>>
>>>>>> I'll assume my previous message has been read. Color my cynical but all
>>>>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>>>>> buyers on their new home. The way property is appreciating, it will
>>>>>> surely be a great investment in the long run, and you can live in it! :)
>>>>>>
>>>>>
>>>>>I wonder in 3 to 5 years if the house price today will still be a good
>>>>>investment when interest rates are back up.
>>>>
>>>> I'm betting there will be a lot of people with upside down mortgages
>>>>in 5 to 10 years in several areas of the country. Our area is less
>>>>likely to see it than many others due to our resiliant economy - but
>>>>%7 would definitely be painfull for MANY buyers - even here.
>>>>
>>>
>>>
>>>... move to Milverton ! :-)
>>>
>>>https://www.remax.ca/on/milverton-real-estate/58-main-street-n-wp_id292973981-lst
>>
>>Is that good or bad? That would be very expensive here but that money
>>wouldn't buy an outhouse in SF. What's with the N/A for the property
>>taxes?
>
>
>. . . " .. eye of the beholder "

That's what real estate (and life, in general) is all about.

>You'd need to visit Milverton and decide for yourself -
> .. watch out for horse & buggy traffic.

It is Canuckistan. Doesn't 90% of the population live within 50mi of
the border and 50% in ON? Milverton is kinda in the middle of
nowhere, though. The center city doesn't look too much different than
where I live, except much nicer (have never done anything but drive
through on the way to Woodcraft. ;-)

On Monday, May 3, 2021 at 7:10:33 PM UTC-4, Leon wrote:
> On 5/2/2021 2:43 PM, DerbyDad03 wrote:
> > What a crazy housing market this is! My #1 son and his GF just
> > found out that their offer has been accepted.
> >
> > Here is how houses are being bought these days…
> >
> > First, I should note that the submission period for offers was the 48
> > hours after the house hit the market. This was one of those listings
> > where all offers would be reviewed at the same time and the sellers
> > would choose the one that they liked the best.
> >
> > Since my son and his GF are relocating to a different state, they
> > haven’t even seen the house in person. Just pictures, a video tour
> > and their agent’s assurance that the house was listed at a great
> > price, way under what she expected it to sell for. (She was right)
> > They submitted their offer within a few hours of the house being
> > listed. There was a total of 12 offers submitted in that 48 hour period..
> >
> > They submitted an offer at full asking price ($370K), no contingencies.
> > The offer included an escalation clause. The escalation clause would
> > automatically increase their offer to $1000 more than the highest offer
> > submitted, but not to exceed $410K. They also included an "appraisal
> > clause" which stated that they would give the sellers up to $15K above
> > the appraised value, not to exceed $425K.
> >
> > Their offer was accepted, not just based on the offer price, but also
> > based on the appraisal clause. Another offer also had an escalation
> > clause that maxed out at $410K, but the appraisal clause was only
> > $13K above the appraisal value, $2K less than their offer. That was
> > close!
> >
> > So they may pay as much as $425K, but they may pay less than the
> > $410K if the appraisal is low – assuming it’s not so low that the seller
> > backs out. Their agent is sure that the appraised value won’t be low
> > enough for that to happen. The seller is moving out of town and needs
> > to get the house sold, thus the comparatively low asking price.
> >
> > One other clause was a 15 day due-diligence clause, which was
> > accepted. Even though the offer was “as-is” and not contingent on an
> > inspection, they are still going to have one done and can use that to
> > negotiate repairs or get out of the contract if the seller’s disclosure form
> > is not accurate. They are hoping that at least one of them can be present
> > for the inspection.
> >
> > If the house appraises at the $410K level, they will end up paying $55K
> > (15%) over the listing price. Holy crap!
> >
> >
> Not a good idea to buy a home for the time being. Prices are going
> crazy and for no good reason. It is a fluke.

Depends on the situation. They could throw money away on a rental
waiting for prices to come down, but who knows when that will happen?

They are relocating to another state for what they hope will be a long
time. It’s her “dream job”. Yes, dreams can change, but for now it’s the
perfect fit for her. She’s the breadwinner and she’ll be making a lot of
bread.

Of the 20ish items they had on their wish list, this house ticked
off 17 of them and included some other things that they would
have put on the list if they had thought of them.

If they weren’t moving they would probably continue to rent where
they are now because they never wanted to live or work there anyway.
It was a stepping stone that got them to where they really wanted to be.

They hope that this is the real beginning of their life and want to start it
in their own home.

On Mon, 3 May 2021 10:08:34 -0400, Bill <nonegiven@att.net> wrote:

>On 5/3/2021 9:34 AM, Ed Pawlowski wrote:
>
>> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
>> highest offer is 300k.
>
>On the positive side, if that's true, then you would probably be able to
>get your "next" house for 300k. So, you only get soaked once.

Only if you can get out of the first one.

That happened to me in 2012/13. We lost $40K on a house we'd just
bought three years before (2009). SWMBO was really worried about it
until I told her we'd make a lot more than that back on this house
(bought in 2012).

On Mon, 3 May 2021 13:56:52 -0700 (PDT), DerbyDad03
<teamarrows@eznet.net> wrote:

>On Monday, May 3, 2021 at 2:20:58 PM UTC-4, J. Clarke wrote:
>> On Mon, 3 May 2021 13:53:59 -0400, knuttle
>> <keith_...@sbcglobal.net> wrote:
>>
>> >On 5/3/2021 9:34 AM, Ed Pawlowski wrote:
>> >> On 5/2/2021 8:32 PM, Clare Snyder wrote:
>> >>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <e...@snet.xxx> wrote:
>> >>>
>> >>>> On 5/2/2021 4:42 PM, Bill wrote:
>> >>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>> >>>>>
>> >>>>>> Their offer was accepted, not just based on the offer price, but also
>> >>>>>> based on the appraisal clause. Another offer also had an escalation
>> >>>>>> clause that maxed out at $410K, but the appraisal clause was only
>> >>>>>> $13K above the appraisal value, $2K less than their offer. That was
>> >>>>>> close!
>> >>>>>
>> >>>>> I'll assume my previous message has been read. Color my cynical but all
>> >>>>> I have to say is "what a coincidence!". That said, I congratulate the
>> >>>>> buyers on their new home. The way property is appreciating, it will
>> >>>>> surely be a great investment in the long run, and you can live in
>> >>>>> it! :)
>> >>>>>
>> >>>>
>> >>>> I wonder in 3 to 5 years if the house price today will still be a good
>> >>>> investment when interest rates are back up.
>> >>> I'm betting there will be a lot of people with upside down mortgages
>> >>> in 5 to 10 years in several areas of the country. Our area is less
>> >>> likely to see it than many others due to our resiliant economy -
>> >but
>> >>> %7 would definitely be painfull for MANY buyers - even here.
>> >>>
>> >>
>> >> Exactly. A scenario like: I paid 500k for this house, owe 400k and the
>> >> highest offer is 300k.
>> >>
>> >> Live there long enough and you are ok, but if you have to relocate, you
>> >
>> >> are screwed.
>> >The investment firm we use said stand pat in Pelosi's 2009 down turn. We
>> >listened to him and as far as our investments we are now ahead.
>> >
>> >There were people who got all excited when the housing market went to
>> >.... and sold their house when the value went upside down relative to
>> >the mortgage. I could understand if you were relocating where it was
>> >no longer possible to commute from the old house and it was required.
>> >However to sell because you were upside down, and then pay the same
>> >amount as you mortgage for rent, did not seem like a good economic decision.
>> Who was it that said "buy in a falling market and sell in a rising
>> one"?
>>
>> Of course there's also the classic "buy low, sell high". But both
>> involve knowing what "low" and "high" are and having the luxury of
>> waiting.
>
>...and there's nothing wrong with selling low and buying low if
> what you buy is expected to recover faster/higher than
>what you sold.
>
>Reversals often offer opportunities.
>
>Similarly, buying high is perfectly OK if you what you buy is
>expected to outperform what you currently own.
>
>Active managers do this all the time.

Buying low and selling high isn't all that hard in real estate but you
have to live somewhere. Buying and selling doesn't matter much. It's
the first time buy that's so difficult, and getting more so.

The problem with the 2008-2012 downturn wasn't so much that people
were upside down but had adjustable mortgages they couldn't refinance
because they were upside down. When the interest rates spiked, they
were screwed. Now the interest rates are so low (artificially low,
thanks to the FED). The ones who will be burned in the next downturn
are those who lent the money.

On Mon, 3 May 2021 17:56:12 -0700 (PDT), DerbyDad03
<teamarrows@eznet.net> wrote:

>On Monday, May 3, 2021 at 7:28:36 PM UTC-4, Markem618 wrote:

>> Seems to be an urban phenomenon, we are rural area near a university.
>> Prices are normal you can buy a house for 100 thousand that is really
>> decent. But we will look to move at some point, mowing about 2 1/2
>> acres with ruts and mole hills realigns things here and there.
>
>Some interesting coincidences here...but not the same options.
>
>They are buying this house in rural area, near a university. The lot
>is about 2 1/2 acres. 2 sides of the lot border farmland. The
>neighborhood was built on farmland. It’s the only neighborhood
>for miles.
>
>$100K houses are nonexistent. Well, I guess there might be a shack
>or two. In fact, they can’t believe that this house was listed for *only*
>$370K. We’ll see what it appraises at. I bet it will be more than that.

Southern Illinois but the area has always been way behind as far as
housing costs, you can find big money houses. We are on 3.45 acres
paid 190k in 2007, the value on Zillow or Realtor.com is about at that
on the estimates. My wifes commute was 1 stop sign on the way to work,
3 on the way home about 5 minutes. We have done some hardscaping and
had Helitech fix the detroyed drainage. Had some redo of "the sun
room" an addition previous owner put on for his orchids.

So we have been stimulating the local economy as best we can.

On Mon, 3 May 2021 06:49:10 -0700 (PDT), DerbyDad03
<teamarrows@eznet.net> wrote:

>On Sunday, May 2, 2021 at 11:22:58 PM UTC-4, k...@notreal.com wrote:
>> On Sun, 2 May 2021 20:07:29 -0700 (PDT), DerbyDad03
>> <teama...@eznet.net> wrote:
>>
>> >On Sunday, May 2, 2021 at 9:35:40 PM UTC-4, k...@notreal.com wrote:
>> >> On Sun, 2 May 2021 12:43:35 -0700 (PDT), DerbyDad03
>> >> <teama...@eznet.net> wrote:
>> >>
>> >> >What a crazy housing market this is! My #1 son and his GF just
>> >> >found out that their offer has been accepted.
>> >> >
>> >> >Here is how houses are being bought these days…
>> >> >
>> >> >First, I should note that the submission period for offers was the 48
>> >> >hours after the house hit the market. This was one of those listings
>> >> >where all offers would be reviewed at the same time and the sellers
>> >> >would choose the one that they liked the best.
>> >> >
>> >> >Since my son and his GF are relocating to a different state, they
>> >> >haven’t even seen the house in person. Just pictures, a video tour
>> >> >and their agent’s assurance that the house was listed at a great
>> >> >price, way under what she expected it to sell for. (She was right)
>> >> >They submitted their offer within a few hours of the house being
>> >> >listed. There was a total of 12 offers submitted in that 48 hour period.
>> >> >
>> >> >They submitted an offer at full asking price ($370K), no contingencies.
>> >> >The offer included an escalation clause. The escalation clause would
>> >> >automatically increase their offer to $1000 more than the highest offer
>> >> >submitted, but not to exceed $410K. They also included an "appraisal
>> >> >clause" which stated that they would give the sellers up to $15K above
>> >> >the appraised value, not to exceed $425K.
>> >> >
>> >> >Their offer was accepted, not just based on the offer price, but also
>> >> >based on the appraisal clause. Another offer also had an escalation
>> >> >clause that maxed out at $410K, but the appraisal clause was only
>> >> >$13K above the appraisal value, $2K less than their offer. That was
>> >> >close!
>> >> >
>> >> >So they may pay as much as $425K, but they may pay less than the
>> >> >$410K if the appraisal is low – assuming it’s not so low that the seller
>> >> >backs out. Their agent is sure that the appraised value won’t be low
>> >> >enough for that to happen. The seller is moving out of town and needs
>> >> >to get the house sold, thus the comparatively low asking price.
>> >> >
>> >> >One other clause was a 15 day due-diligence clause, which was
>> >> >accepted. Even though the offer was “as-is” and not contingent on an
>> >> >inspection, they are still going to have one done and can use that to
>> >> >negotiate repairs or get out of the contract if the seller’s disclosure form
>> >> >is not accurate. They are hoping that at least one of them can be present
>> >> >for the inspection.
>> >> The last two houses we've bought didn't allow us to be present at
>> >> inspection. One was new, so I wasn't worried but this one concerned
>> >> me a bit (foreclosure)
>> >
>> >Who said that you weren't allowed? Wasn't he working on your dime?
>> Agent and inspector.
>> >For the 2 houses that my daughter put offers in on, both inspectors let her,
>> >me and SWMBO be present at the inspection. They answered every question
>> >I had as I followed them around taking notes. Real nice guys. The inspectors
>> >worked for my daughter and we made sure we got her money's worth.
>> Mine did in NY and VT, too.
>> >Good thing too. She was infatuated with the first house but it needed way too
>> >many repairs. It was the inspection that allowed her to get out of the contract.
>> >If Mom and I hadn't been there I don't think she would have heard a thing that
>> >the inspector said.
>> I didn't say they couldn't be inspected, just that I couldn't be
>> there. I did get the inspection reports.
>
>Our discussion was related to be allowed to tag along with the inspector, not
>about the allowance of the inspection itself.

Right, I wasn't allowed to be there.

>Mentally insert the words "we allowed to be there" after "Good thing" and re-read
>that paragraph.

It was clunky but you did ask "Who said..." so it must have gotten the
point across. It really doesn't matter.

On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:

>On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>> What a crazy housing market this is! My #1 son and his GF just
>> found out that their offer has been accepted.
>>
>> Here is how houses are being bought these days…
>>
>> First, I should note that the submission period for offers was the 48
>> hours after the house hit the market. This was one of those listings
>> where all offers would be reviewed at the same time and the sellers
>> would choose the one that they liked the best.
>>
>> Since my son and his GF are relocating to a different state, they
>> haven’t even seen the house in person. Just pictures, a video tour
>> and their agent’s assurance that the house was listed at a great
>> price, way under what she expected it to sell for. (She was right)
>> They submitted their offer within a few hours of the house being
>> listed. There was a total of 12 offers submitted in that 48 hour period.
>>
>> They submitted an offer at full asking price ($370K), no contingencies.
>> The offer included an escalation clause. The escalation clause would
>> automatically increase their offer to $1000 more than the highest offer
>> submitted, but not to exceed $410K. They also included an "appraisal
>> clause" which stated that they would give the sellers up to $15K above
>> the appraised value, not to exceed $425K.
>>
>> Their offer was accepted, not just based on the offer price, but also
>> based on the appraisal clause. Another offer also had an escalation
>> clause that maxed out at $410K, but the appraisal clause was only
>> $13K above the appraisal value, $2K less than their offer. That was
>> close!
>>
>> So they may pay as much as $425K, but they may pay less than the
>> $410K if the appraisal is low – assuming it’s not so low that the seller
>> backs out. Their agent is sure that the appraised value won’t be low
>> enough for that to happen. The seller is moving out of town and needs
>> to get the house sold, thus the comparatively low asking price.
>>
>> One other clause was a 15 day due-diligence clause, which was
>> accepted. Even though the offer was “as-is” and not contingent on an
>> inspection, they are still going to have one done and can use that to
>> negotiate repairs or get out of the contract if the seller’s disclosure form
>> is not accurate. They are hoping that at least one of them can be present
>> for the inspection.
>>
>> If the house appraises at the $410K level, they will end up paying $55K
>> (15%) over the listing price. Holy crap!
>>
>>
>
>
>Not a good idea to buy a home for the time being. Prices are going
>crazy and for no good reason. It is a fluke.

I thought you were.

On 5/3/2021 8:52 PM, krw@notreal.com wrote:
> On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:
>
>> On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>>> What a crazy housing market this is! My #1 son and his GF just
>>> found out that their offer has been accepted.
>>>
>>> Here is how houses are being bought these days…
>>>
>>> First, I should note that the submission period for offers was the 48
>>> hours after the house hit the market. This was one of those listings
>>> where all offers would be reviewed at the same time and the sellers
>>> would choose the one that they liked the best.
>>>
>>> Since my son and his GF are relocating to a different state, they
>>> haven’t even seen the house in person. Just pictures, a video tour
>>> and their agent’s assurance that the house was listed at a great
>>> price, way under what she expected it to sell for. (She was right)
>>> They submitted their offer within a few hours of the house being
>>> listed. There was a total of 12 offers submitted in that 48 hour period.
>>>
>>> They submitted an offer at full asking price ($370K), no contingencies.
>>> The offer included an escalation clause. The escalation clause would
>>> automatically increase their offer to $1000 more than the highest offer
>>> submitted, but not to exceed $410K. They also included an "appraisal
>>> clause" which stated that they would give the sellers up to $15K above
>>> the appraised value, not to exceed $425K.
>>>
>>> Their offer was accepted, not just based on the offer price, but also
>>> based on the appraisal clause. Another offer also had an escalation
>>> clause that maxed out at $410K, but the appraisal clause was only
>>> $13K above the appraisal value, $2K less than their offer. That was
>>> close!
>>>
>>> So they may pay as much as $425K, but they may pay less than the
>>> $410K if the appraisal is low – assuming it’s not so low that the seller
>>> backs out. Their agent is sure that the appraised value won’t be low
>>> enough for that to happen. The seller is moving out of town and needs
>>> to get the house sold, thus the comparatively low asking price.
>>>
>>> One other clause was a 15 day due-diligence clause, which was
>>> accepted. Even though the offer was “as-is” and not contingent on an
>>> inspection, they are still going to have one done and can use that to
>>> negotiate repairs or get out of the contract if the seller’s disclosure form
>>> is not accurate. They are hoping that at least one of them can be present
>>> for the inspection.
>>>
>>> If the house appraises at the $410K level, they will end up paying $55K
>>> (15%) over the listing price. Holy crap!
>>>
>>>
>>
>>
>> Not a good idea to buy a home for the time being. Prices are going
>> crazy and for no good reason. It is a fluke.
>
> I thought you were.
>

Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.

Leon <lcb11211@swbelldotnet> writes:
>On 5/3/2021 8:52 PM, krw@notreal.com wrote:
>> On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:
>>
>>> On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>>>> What a crazy housing market this is! My #1 son and his GF just
>>>> found out that their offer has been accepted.
>>>>
>>>> Here is how houses are being bought these days…
>>>>

>>>> If the house appraises at the $410K level, they will end up paying $55K
>>>> (15%) over the listing price. Holy crap!

>>>
>>> Not a good idea to buy a home for the time being. Prices are going
>>> crazy and for no good reason. It is a fluke.
>>
>> I thought you were.

>Yes we were. No longer. The home we went into contract for in late
>September, $365K is not welling for $430K. Almost 10K per month price
>increases in the last 7 months.
>
>Our home went up in value, in the past 7 months, from $232K to $274K.

There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.

Houses in south San Jose are going for $250,000 over list or more.

House next door out here in the sticks (1 Hectare, 45 miles south of SJC)
was listed for 1.3 and had close to a dozen offers, I haven't
seen the final price, but I suspect it was close to 1.7M.

On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
> On 5/2/2021 8:32 PM, Clare Snyder wrote:
>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>
>>> On 5/2/2021 4:42 PM, Bill wrote:
>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>
>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>> close!
>>>>
>>>> I'll assume my previous message has been read. Color my cynical but all
>>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>>> buyers on their new home. The way property is appreciating, it will
>>>> surely be a great investment in the long run, and you can live in
>>>> it! :)
>>>>
>>>
>>> I wonder in 3 to 5 years if the house price today will still be a good
>>> investment when interest rates are back up.
>>    I'm betting there will be a lot of people with upside down mortgages
>> in 5 to 10 years in several areas of the country. Our area is less
>> likely to see it than many others due to our resiliant economy -  but
>> %7 would definitely be painfull for MANY buyers - even here.
>>
>
> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
> highest offer is 300k.
>
> Live there long enough and you are ok, but if you have to relocate, you
> are screwed.

This is what is happening now. It will be interesting to see how many
people will be upside down in 2~5 Years.

On Tue, 4 May 2021 10:16:44 -0500, Leon <lcb11211@swbelldotnet> wrote:

>On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
>> On 5/2/2021 8:32 PM, Clare Snyder wrote:
>>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>>
>>>> On 5/2/2021 4:42 PM, Bill wrote:
>>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>>
>>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>>> close!
>>>>>
>>>>> I'll assume my previous message has been read. Color my cynical but all
>>>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>>>> buyers on their new home. The way property is appreciating, it will
>>>>> surely be a great investment in the long run, and you can live in
>>>>> it! :)
>>>>>
>>>>
>>>> I wonder in 3 to 5 years if the house price today will still be a good
>>>> investment when interest rates are back up.
>>>    I'm betting there will be a lot of people with upside down mortgages
>>> in 5 to 10 years in several areas of the country. Our area is less
>>> likely to see it than many others due to our resiliant economy -  but
>>> %7 would definitely be painfull for MANY buyers - even here.
>>>
>>
>> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
>> highest offer is 300k.
>>
>> Live there long enough and you are ok, but if you have to relocate, you
>> are screwed.
>
>
>This is what is happening now. It will be interesting to see how many
>people will be upside down in 2~5 Years.

I paid $63700 39 years ago. That is about $170,000 in 2021 dollars. I
assumed a 6.3% mortgage when the going rate was 23% - 18% if you were
lucky and had an 800 credit score.

That was when people WERE upside-down on their mortgages in a lot of
cases because of the 1980s recession with high rates causing prices to
drop. My MIL was in real estate in Windsor and people were walking
away from $800000 homes. Sadly for Windsor some of those homes are
still not worth very much more than that - - -

On Tue, 4 May 2021 09:11:09 -0500, Leon <lcb11211@swbelldotnet> wrote:

>On 5/3/2021 8:52 PM, krw@notreal.com wrote:
>> On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:
>>
>>> On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>>>> What a crazy housing market this is! My #1 son and his GF just
>>>> found out that their offer has been accepted.
>>>>
>>>> Here is how houses are being bought these days…
>>>>
>>>> First, I should note that the submission period for offers was the 48
>>>> hours after the house hit the market. This was one of those listings
>>>> where all offers would be reviewed at the same time and the sellers
>>>> would choose the one that they liked the best.
>>>>
>>>> Since my son and his GF are relocating to a different state, they
>>>> haven’t even seen the house in person. Just pictures, a video tour
>>>> and their agent’s assurance that the house was listed at a great
>>>> price, way under what she expected it to sell for. (She was right)
>>>> They submitted their offer within a few hours of the house being
>>>> listed. There was a total of 12 offers submitted in that 48 hour period.
>>>>
>>>> They submitted an offer at full asking price ($370K), no contingencies.
>>>> The offer included an escalation clause. The escalation clause would
>>>> automatically increase their offer to $1000 more than the highest offer
>>>> submitted, but not to exceed $410K. They also included an "appraisal
>>>> clause" which stated that they would give the sellers up to $15K above
>>>> the appraised value, not to exceed $425K.
>>>>
>>>> Their offer was accepted, not just based on the offer price, but also
>>>> based on the appraisal clause. Another offer also had an escalation
>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>> close!
>>>>
>>>> So they may pay as much as $425K, but they may pay less than the
>>>> $410K if the appraisal is low – assuming it’s not so low that the seller
>>>> backs out. Their agent is sure that the appraised value won’t be low
>>>> enough for that to happen. The seller is moving out of town and needs
>>>> to get the house sold, thus the comparatively low asking price.
>>>>
>>>> One other clause was a 15 day due-diligence clause, which was
>>>> accepted. Even though the offer was “as-is” and not contingent on an
>>>> inspection, they are still going to have one done and can use that to
>>>> negotiate repairs or get out of the contract if the seller’s disclosure form
>>>> is not accurate. They are hoping that at least one of them can be present
>>>> for the inspection.
>>>>
>>>> If the house appraises at the $410K level, they will end up paying $55K
>>>> (15%) over the listing price. Holy crap!
>>>>
>>>>
>>>
>>>
>>> Not a good idea to buy a home for the time being. Prices are going
>>> crazy and for no good reason. It is a fluke.
>>
>> I thought you were.
>>
>
>Yes we were. No longer. The home we went into contract for in late
>September, $365K is not welling for $430K. Almost 10K per month price
>increases in the last 7 months.
>
>Our home went up in value, in the past 7 months, from $232K to $274K.
Up here that price would hardly buy you a chicken coop - even taking
exchange into account.

On Tue, 04 May 2021 15:09:57 GMT, scott@slp53.sl.home (Scott Lurndal)
wrote:

>Leon <lcb11211@swbelldotnet> writes:
>>On 5/3/2021 8:52 PM, krw@notreal.com wrote:
>>> On Mon, 3 May 2021 18:10:26 -0500, Leon <lcb11211@swbelldotnet> wrote:
>>>
>>>> On 5/2/2021 2:43 PM, DerbyDad03 wrote:
>>>>> What a crazy housing market this is! My #1 son and his GF just
>>>>> found out that their offer has been accepted.
>>>>>
>>>>> Here is how houses are being bought these days…
>>>>>
>
>>>>> If the house appraises at the $410K level, they will end up paying $55K
>>>>> (15%) over the listing price. Holy crap!
>
>>>>
>>>> Not a good idea to buy a home for the time being. Prices are going
>>>> crazy and for no good reason. It is a fluke.
>>>
>>> I thought you were.
>
>>Yes we were. No longer. The home we went into contract for in late
>>September, $365K is not welling for $430K. Almost 10K per month price
>>increases in the last 7 months.
>>
>>Our home went up in value, in the past 7 months, from $232K to $274K.
>
>There is a "reason". Whether it is good or not depends on whether you
>are buying or selling.
>
>Lack of supply, high demand.
>
>Houses in south San Jose are going for $250,000 over list or more.
>
>House next door out here in the sticks (1 Hectare, 45 miles south of SJC)
>was listed for 1.3 and had close to a dozen offers, I haven't
>seen the final price, but I suspect it was close to 1.7M.
We had a semi locally went for $250 over asking. Almost $700Grand for
a SEMIDETATCHED home!!!!! Toronto buyers, to a large extent, getting
out of the city (60 to 70 km commute - but due to Covid working from
home)

On 5/4/2021 10:41 AM, Clare Snyder wrote:
> On Tue, 4 May 2021 10:16:44 -0500, Leon <lcb11211@swbelldotnet> wrote:
>
>> On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
>>> On 5/2/2021 8:32 PM, Clare Snyder wrote:
>>>> On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski <esp@snet.xxx> wrote:
>>>>
>>>>> On 5/2/2021 4:42 PM, Bill wrote:
>>>>>> On 5/2/2021 3:43 PM, DerbyDad03 wrote:
>>>>>>
>>>>>>> Their offer was accepted, not just based on the offer price, but also
>>>>>>> based on the appraisal clause. Another offer also had an escalation
>>>>>>> clause that maxed out at $410K, but the appraisal clause was only
>>>>>>> $13K above the appraisal value, $2K less than their offer. That was
>>>>>>> close!
>>>>>>
>>>>>> I'll assume my previous message has been read. Color my cynical but all
>>>>>> I have to say is "what a coincidence!".   That said, I congratulate the
>>>>>> buyers on their new home. The way property is appreciating, it will
>>>>>> surely be a great investment in the long run, and you can live in
>>>>>> it! :)
>>>>>>
>>>>>
>>>>> I wonder in 3 to 5 years if the house price today will still be a good
>>>>> investment when interest rates are back up.
>>>>    I'm betting there will be a lot of people with upside down mortgages
>>>> in 5 to 10 years in several areas of the country. Our area is less
>>>> likely to see it than many others due to our resiliant economy -  but
>>>> %7 would definitely be painfull for MANY buyers - even here.
>>>>
>>>
>>> Exactly.  A scenario like:  I paid 500k for this house, owe 400k and the
>>> highest offer is 300k.
>>>
>>> Live there long enough and you are ok, but if you have to relocate, you
>>> are screwed.
>>
>>
>> This is what is happening now. It will be interesting to see how many
>> people will be upside down in 2~5 Years.
>
>
> I paid $63700 39 years ago. That is about $170,000 in 2021 dollars. I
> assumed a 6.3% mortgage when the going rate was 23% - 18% if you were
> lucky and had an 800 credit score.

40 years and 4 months ago my wife and I paid 60K. 30 years, 12%
interest in Jan 1981 Refinanced 6 years later for 9% for 15 years. We
accelerated the payments after refinance and paid the mortgage off Feb,
1997.

Estimated value today $164K. $98K 10 years ago when we sold.

Cash for the next home in 2010.

>
> That was when people WERE upside-down on their mortgages in a lot of
> cases because of the 1980s recession with high rates causing prices to
> drop. My MIL was in real estate in Windsor and people were walking
> away from $800000 homes. Sadly for Windsor some of those homes are
> still not worth very much more than that - - -
>