Im bowing out

[SwaggyD]

*Insert "just because it's illegal doesn't mean it doesn't happen all the time!"*

To be fair, I've seen appraiser's pull some, uh, unusual comps to try and support sales prices. We usually go back and make them pull better (usually closer) comps. Either the comps support the value or they don't, (mostly) end of story.

Yes - this is exactly correct. Appraisers shouldn't be setting the market value, they should be giving market value and good comparable homes (which like you said, doesn't always happen).

 

[SAJ-99]

I'm not building right now. Guy's that are, are building for cash buyers at cost plus.

You have a reasonable estimate of the cost on that? Certainly better than my estimate. I get that builders just pass costs on to buyers, but image labor is still a sizable input. They can tell the buyer "my guys wanted a 20% raise, so the cost for you went up".

 

[88man]

Tons of wealth out their right now

 

[BigHornRam]

Banking regulations require banks to have no affiliation or contact with appraisers before an appraisal is complete. If they bank were caught instructing appraisers to do this, that would be very bad news for that bank.

Wink wink nod nod

 

[huntergirl_19]

Of looking for a home. GF and I have been looking for something a little bigger, with a 2 car garage, and the market is ridiculously overpriced here in Colorado. We've gone after 2 properties, one went 50k over asking from a sight unseen cash offer, the other went 22% over asking, which is about 130k!!! I'm not into feeding frenzies and our place is paid for. Anyone else just riding out the storm expecting some sort of a correction? Unless employers raise wages 15- 20% to every working person in Colorado, I don't see the current prices being sustainable, cash rich buyers are not an infinite resource.

I got lucky in Denver, but that was after getting beat out on multiple offers just like you were. The market is nuts, even out in the burbs.

 

[SAJ-99]

times might be changing. On my flight home on Monday, I sat next to a realtor from Texas who just got off the phone with an upset client because the appraisal came in way lower than his accepted offer price. He had to back out of the deal because he therefore couldn't get the financing.

The realtor went on to state that in the last two weeks, this is the third time this has happened to him where the bank appraisal came in significantly lower indicating that the banks are instructing the appraisers to stop overvaluing the homes due to the crazy market that has been set.

Yesterday I talked with a close friend who is a realtor. He had one instance of this happening in the last week.

The change in the market might be coming and its going to result from these accepted offers no longer going through due to financing

When I sold in MT last fall, cash buyers had an advantage to me as seller. When we bought, I waived the inspection contingency. Avoiding the hassle and potentially reopening up of negotiations is a huge plus for both, but particularly seller.
National rates are just under 4% this week and the first time 30yr mortgage is above 10yr long term average. That may change the times. But cash is still king.

 

[westbranch]

We bought our house in May 2019 and felt crazy paying what we did coming from the midwest. Value is up 80%+ in 3 years. A study from this past year showed that (edited) only 24% of Kootenai county residents can afford a home at the median sale price in Kootenai County which is >$500k. Median sale price in Coeur d'Alene is >$600k.


I have seen quite a few sales of higher end homes in the area that were purchased for around $1-1.5MM <5 yrs ago selling for $2.5-$4MM. Some more than doubling in 3-5 yrs. One was listed for 2.5MM in 2018 for 6+ months and did not sell. Sold almost immediately when listed in 2021 for $4.5MM. Wild stuff.

 

[LousyResident]

Borrowing half a million on a house! I don't care what the interest is, you still have to pay the principle back.

Is it sad that I'm like 500k what a steal...

Just a quick glance within about 45 minutes of me in East Tn. 26 listings between $500K and $550K, 3,000 or less SF, 1 acre or less lot size.

This is nothing compared to bigger cities or some other states. $500K is not crazy house money anymore by any stretch.

 

[BigHornRam]

You have a reasonable estimate of the cost on that? Certainly better than my estimate. I get that builders just pass costs on to buyers, but image labor is still a sizable input. They can tell the buyer "my guys wanted a 20% raise, so the cost for you went up".

Buyer asks wtf is taking so long. Builder says drywall sub wants 20% more or will go to other jobs first. Replacement sub is 30 % more and a drunk. What do you want to do? 20 % increase in material by next week too.

Industry is screwed right now. Best to wait if have a choice.

 

[LousyResident]

Wink wink nod nod

Banking regulations require banks to have no affiliation or contact with appraisers before an appraisal is complete. If they bank were caught instructing appraisers to do this, that would be very bad news for that bank.

Told you lol

 

[Deleted member 28227]

Just a quick glance within about 45 minutes of me in East Tn. 26 listings between $500K and $550K, 3,000 or less SF, 1 acre or less lot size.

This is nothing compared to bigger cities or some other states. $500K is not crazy house money anymore by any stretch.

As we plan our next chapter we are looking at various places, seems like a single family 2-3 bedroom at 1-2 baths ~1600-1800sqft is going to be are $500k in the cheaper areas we are considering and $1MM in any urban area.
(MI, MN, NC) versus (Seattle, Denver, Boston, etc)
Just kinda is what it is these days.

 

[SAJ-99]

Buyer asks wtf is taking so long. Builder says drywall sub wants 20% more or will go to other jobs first. Replacement sub is 30 % more and a drunk. What do you want to do? 20 % increase in material by next week too.

Industry is screwed right now. Best to wait if have a choice.

Sounds like a situation ripe for fleecing the buyer.
What are you doing now to pass the time? Might I suggest Tis Tok videos?

 

[TimeOnTarget]

Have you guys looked at vehicles lately?

 

[BigHornRam]

Told you lol

The banks just stop hiring appraisers that don't bring in appraisals they like. Appraisers learn fast or don't work.

 

[LousyResident]

As we plan our next chapter we are looking at various places, seems like a single family 2-3 bedroom at 1-2 baths ~1600-1800sqft is going to be are $500k in the cheaper areas we are considering and $1MM in any urban area.
(MI, MN, NC) versus (Seattle, Denver, Boston, etc)
Just kinda is what it is these days.

To be fair, there are quite a few houses around here cheaper than $500K too. I was just demonstrating that it's not that unusual.

 

[Deleted member 28227]

To be fair, there are quite a few houses around here cheaper than $500K too. I was just demonstrating that it's not that unusual.

100%

 

[SwaggyD]

The banks just stop hiring appraisers that don't bring in appraisals they like. Appraisers learn fast or don't work.

I'm not saying it doesn't happen, but I also know there is a way to stop it.

 

[rtraverdavis]

We first started planning our new home build in August of 2020. Property is already bought and paid for. Same plan, same builder; costs have risen more than 30% between then and now. It's teetering on the point where we're questioning whether or not we go through with it, as we're now going to have to finance quite a bit more than we planned for. Sucks. Meeting with the builder tomorrow and deciding what the hell we're going to do.

 

[LousyResident]

I'm not saying it doesn't happen, but I also know there is a way to stop it.

Kind of like builders lying about backlogs, turn times, and the cost of subs to screw clients out of additional money simply to line their own pockets, right? If it happens sometimes it must happen all the time.

 

[OntarioHunter]

Of looking for a home. GF and I have been looking for something a little bigger, with a 2 car garage, and the market is ridiculously overpriced here in Colorado. We've gone after 2 properties, one went 50k over asking from a sight unseen cash offer, the other went 22% over asking, which is about 130k!!! I'm not into feeding frenzies and our place is paid for. Anyone else just riding out the storm expecting some sort of a correction? Unless employers raise wages 15- 20% to every working person in Colorado, I don't see the current prices being sustainable, cash rich buyers are not an infinite resource.

Once intetest rates start climbing (and they must to curb this inflation), the housing bubble will burst overnight. If you have a good down payment in the bank, you'll be in good shape then.