Real Estate Crash thread

[4matic]

On my BOA purchase, they found mold during the inspection. The inspector took really good notes, with pictures and I got an estimate of $15k for remediation.
I was able to negotiate a $12K discount and then used a bunch of skibum tradesmen to fix everything and paint for about $15K.
The mid valley Roaring Fork market was still pretty soft at the time, so your ability to negotiate may vary?

Thanks. Similar problem and my hope is that the bank will give something just to move the transaction forward since it has fallen out a few times and I'm a strong buyer. But, the market has changed significantly in the last few months likely affecting my ability to get a concession.

[4matic]

Appraisal came in $40k above purchase price. While that is just a number I think I will move ahead regardless of push back on the bank.

[CS]

Outbid again, and we were coming in with cash, 10 day escrow and 20k over asking. And I felt we were offering too much (and so did our broker), this is getting ridiculous. I blame people like meatdrink. Punks.

[snowsprite]

^^I wish that bidding war would happen to me. I have to unload the 'stead in Connecticut VERY soon...and will be taking quite the hit (albeit doing so as FSBO will bring in a *bit* of profit I hope instead of going to the realtor). However, despite the los it's more important to unload than to nickel and dime about things right now...

Anybody want a house on a cul de sac w/ 4 car garage pretty cheap-o?

[Cyber Cop]

^^^ yes, how much for shipping to santa fe?

[GiBo]

The City I work for, Stockton CA, will become the largest city in American history to file for bankruptcy. Look for it all over the news early next week if not sooner. Sure, a lot of factors were at play (mismanagement, rising health care costs etc..), but the root cause was the real estate crash. This city made a lot of money off of the boom and spent like it would never end. Now here we are. It's crazy around here today with lifetime civil servants reviewing the just released pendency plans- which are essentially the reworked MOU's for bargaining groups telling employees: here's what you get. Take it or leave it. Good times!

[XXX-er]

http://www.cbc.ca/news/business/stor...gage-cmhc.html

up here the feds have tightened up on RE lending rules to protect the consumer from themselves

[liv2ski]

It's crazy around here today with lifetime civil servants reviewing the just released pendency plans- which are essentially the reworked MOU's for bargaining groups telling employees: here's what you get. Take it or leave it. Good times!

Those days are coming to all. My wife a teacher is in the Calsters retirement shitbag. I have told her to get ready for about a 35% reduction in promised pension down the road, as it is pretty hard for Calstrs or any fund to generate those 6%-7% returns needed to keep their promises going when Helicopter Ben is pushing his ZIRP. I see all the pensions/social security talking a nice 35% cut. O, but not the politicians retirement plans, they get all their money. Just the sheeple get sheared.

[4matic]

I close on the short sale purchase tomorrow and collected first and last months rent from the former owners today. Very nice young couple and they are happy to stay. I'll probably invest $10-12k in repairs to be done with it and avoid problems going ahead. So far so good.

[liv2ski]

Welcome to the Landlord Club. Screen your tenants well and with luck it isn't that bad.

[snowsprite]

It's official, I'm selling and it's on like donkey kong! Doing FSBO but also represented by realtor. If I end up selling FSBO I just reimburse his marketing costs. Having my own open house tomorrow. Wish me luck!

Sprite

[liv2ski]

Well damn, here is a nice place north of Reno with an opening bid price of $15k that goes on the block Wed July 25th. Sold in 2004 for about $280k
http://www.zillow.com/homedetails/60...15254052_zpid/
There are deals like this everywhere if you just take the time to look for them.

[Hugh Conway]

Well damn, here is a nice place north of Reno with an opening bid price of $15k that goes on the block Wed July 25th. Sold in 2004 for about $280k
http://www.zillow.com/homedetails/60...15254052_zpid/
There are deals like this everywhere if you just take the time to look for them.

So wtf is there to do for work in Loyalton? What's it going for it other than being in the great state of Taxifornia? i.e. it's cheap... why the fuck wouldn't it be other than the real estate insanity of the bubble?

[Shredhead]

Well damn, here is a nice place north of Reno with an opening bid price of $15k that goes on the block Wed July 25th. Sold in 2004 for about $280k

Auction.com is just a shill for BOA. Per thier agreement, you will have no rights and no recourse. I wouldn't waste your time!

[Danno]

Well damn, here is a nice place north of Reno with an opening bid price of $15k that goes on the block Wed July 25th. Sold in 2004 for about $280k
http://www.zillow.com/homedetails/60...15254052_zpid/

and wasn't selling in 2012 even as they dropped the price from $100k to under $70k.

[Benny Profane]

Reno has some awesome deals. Looked at a few in March. One hour to Squaw. Unfortunately, not a town for me.

[liv2ski]

Guys, just pointing out there are some smokin deals out there if you don't need to live there, whether in Taxifornia, Detroit or Memphis

[liv2ski]

And this just in: http://finance.yahoo.com/news/home-p...170146503.html

"Home prices rose, just barely, in the second quarter of this year annually for the first time since 2007, according to online real estate firm Zillow. That prompted the popular site to call a "bottom" to home prices nationally. The increase was a mere 0.2 percent, but in today's touch and go housing recovery, that was enough.

Nearly one third of the 167 markets Zillow tracks in this survey saw annual price gains from a year ago.

"After four months with rising home values and increasingly positive forecast data, it seems clear that the country has hit a bottom in home values," said Zillow Chief Economist Dr. Stan Humphries. "The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own."

[More From CNBC: The World's Hottest RealEstate Markets]

Zillow's report, which compares prices of homes sold in the same neighborhood, also showed a stronger 2.1 percent gain quarter to quarter, which is the biggest uptick since 2005. The biggest price gains, however, are in the markets that saw the biggest price drops during the latest housing crash. Phoenix, for example, saw a 12 percent annual price gain on the Zillow index.

That has other analysts claiming that the overall surge in national prices is due to price bubbles in certain markets.

"Strong demand, particularly in areas of California, Arizona and Nevada, are pushing up home prices very quickly in the short-term. And because many of the home purchases in these areas are cash transactions, there appears to be less braking of prices by our current appraisal system than seen in other parts of the country," noted Thomas Popik, research director for Campbell Surveys and chief analyst for HousingPulse. "The trend raises the distinct possibility of housing price bubbles emerging in some of these hot housing markets."

The supply of foreclosed properties for sale has been dropping steadily, as lenders try to modify more loans or actively pursue foreclosure alternatives, like short sales (where the home is sold for less than the value of the mortgage). Investors, eager to take advantage of the hot rental market, are having to spread out to more markets in order to find the best deals.

[More From CNBC: The Most Expensive States to Live 2012]

"We were heavily into Phoenix early in the cycle. Those markets are heating up," said James Breitenstein, CEO of investment firm Landsmith in an interview on CNBC Monday. "We see a shift more to the east, states like North Carolina, Michigan, Florida."

While home prices on the Zillow index are improving most in formerly distressed markets, like Miami, Orlando and much of California, they are still dropping in other non-distressed markets, like St. Louis (down 4 percent annually) Chicago (down 5.8 percent annually) and Philadelphia (down 3.5 percent annually).

"Those people looking at current results and calling a bottom are being dangerously short-sighted," said Michael Feder, CEO of Radar Logic, a real estate data and analytics company. "Not only are the immediate signs inconclusive, but the broad dynamics are still quite scary. We think housing is still a short."

Radar Logic sees price increases as well, but blames that on mild winter weather that temporarily boosted demand. This means there will be payback, or weakness in prices during the latter half of this year. And even without the weather hypothesis, they see further trouble ahead:

[More From CNBC: US Housing Markets That Have Bottomed]

"On the supply side, higher prices will entice financial institutions to sell more of their inventories of foreclosed homes and allow households that were previously unable to sell due to negative equity to put their homes on the market. As a result, the supply of homes for sale will increase, placing downward pressure on prices. On the demand side, rising prices could reduce investment buying," according to the Radar Logic report.

Investors are driving much of the housing market today, anywhere from one third to one quarter of home sales. That makes these supposedly national price gains more precarious than ever, because they are based on a finite supply of distressed homes and that supply is dependent on the nation's big banks. First time home buyers, who should be 40 percent of the market, are barely making up one third, and millions of potential move-up buyers are trapped in their homes due to negative and near negative equity".

[cramer]

So wtf is there to do for work in Loyalton? What's it going for it other than being in the great state of Taxifornia? i.e. it's cheap... why the fuck wouldn't it be other than the real estate insanity of the bubble?

You wouldnt hardly have to work. Thats like 4-500 a month including property tax and insurance. who cares what jobs are out there, lol.

[Mazderati]

Looking for information on upcoming foreclosures and property auctions. Outside of daily foreclosure publications in the paper, do local municipalities generally keep an aggregate list of upcoming foreclosure auctions? Found a prospect on Zillow but they link to paid subscription service on foreclosure.com.

[meatdrink9]

Here's a good resource that covers all of Utah. Not sure what other states do.

www.utahlegals.com

BTW, I have been getting solicited by lenders quite a bit lately. It feels like lending just keeps getting stronger. I'm currently doing a no cost refi on one of my investor properties that will drop the rate into the low 4's. This type of thing wasn't possible that long ago. I may tune-up the portfolio a little more if other properties will qualify.

[Supermoon]

Bought a house in October of last year that was on the market for over five months. Sellers needed to move it, so we got it for a steal.

Fast forward to today, we did a little work on the house over the last few months, and when we listed it on Friday, we had 5 showings and 2 offers in the first 24 hours for almost 40k more. Our realtor said that she's had four houses go under contract this week. I think all of the available inventory got sold last fall, and there just aren't any houses out there right now.

[ass-to-mouth]

Shit must be really slowing down in my area. Im getting all kinds of phone calls and emails from dirt pimps and mortgage brokers. Some of these assholes I haven't talked to in 2-3 years.

[liv2ski]

Canada Mags WTF??? I come to the Great White North and see this shit.

http://ca.finance.yahoo.com/news/van...181054920.html

VANCOUVER - July home sales in Vancouver, once the country's hottest real estate market, continued to slide and hit their lowest total for the month since 2000.

The Real Estate Board of Greater Vancouver reported Thursday 2,098 properties sold in the month, down 18.4 per cent from 2,571 in July 2011 and down 11.2 per cent from June's mark of 2,362, which was also the lowest total for that month since 2000.

Despite the sharp drop in the number of homes sold, the board says the MLS home price index composite benchmark price was $616,000, up 0.6 per cent from a year ago, but down 0.7 per cent from June.

"People appear to be cautious about making significant financial decisions right now," board president Eugen Klein said in a statement.

"While our local economy appears to be quite robust, there may be some concern about the impact of international markets and the federal government’s tightening of mortgage regulations."

The total number of active residential property listings on the MLS system was 18,081, up 18.8 per cent from a year ago, but down 2.2 per cent compared with a month ago.

The board says with a sales-to-active-listing ratio of 11.6 per cent, conditions have favoured buyers in the market recent months.

"That means buyers have more selection to choose from and more time to make a decision," Klein said.

Sales of detached properties on the MLS in July totalled 787, down 28.4 per cent from the 1,099 sales a year ago, while sales of apartment properties amounted to 927, down 10.9 per cent from 1,040 sales in July 2011.

Attached property sales in July totalled 384, down 11.1 per cent from 432.

The slow down comes as Ottawa tightens mortgage lending in Canada.

Finance Minister Jim Flaherty moved in June to cool the red hot condo markets in Toronto and Vancouver by tightening the rules for borrowers including cutting the maximum amortization period for government insured mortgages cut to 25 years from 30.

As well, the federal regulator of financial institutions has told lenders they can only issue home equity loans up to a maximum of 65 per cent of the property's value, down from the previous 80 per cent.

[Benny Profane]

What a coincidence. At the same time many are saying that China is tanking.