[ScoopLV]

Originally Posted by phillk6751

I've only lived here for about a year and a half...and didn't have the best credit then...now I have it and I'm ready...but I didn't realize and was never told that I had to add an additional $5000-15000 contingency to my savings....nor should I have to, appraisers should be able to keep up with the market and apparently they aren't.

You can never have too much cash when purchasing real estate. I'm a cash buyer, and I miss out on deal after deal because someone over-bids me. And a couple times, my offers weren't even shown to the buyer. I know this for a fact, because I asked the homeowners. The deals were too good, and they went to agents at the listing broker's office. That shouldn't be legal. But that's how it is.

You're new here, so you probably don't know that I'm "Mr. Anti-Agent." But you cannot lay the blame at the agents for this. They didn't create this crazy market. They're just doing what they've always done -- collecting their 6%.

If you want to do your own real estate transactions without an agent, that's great. I'm all for it. If you want to get your own license to do your own transactions, that's great, too. (That's what I did.) But you will find that it won't help matters. Agency or lack thereof isn't going to change the market. You are still going to have problems financing a house. And anything resembling a "deal" is going to go to cash buyers.

That's just how it is right now. If you really want a house, settle for something that is less of a deal. You won't compete with the cash buyers that way.

[Everdeen]

Originally Posted by phillk6751

As much as I would like to do so, I am under pressure from my wife as well. This home-buying "adventure" has probably been the absolute most stressful point in our relationship and is starting to affect it. Maybe I should look into some solutions to this to make her happy while we "sit and wait" basically for the right deal.

Be very careful. It's easy for me to say, I know. You don't want to let your emotions get involved to the point that it affects your marriage. No house is worth it.

[phillk6751]

Originally Posted by Onlyliveonce

Properties are only worth what buyers are willing to pay. You have discovered this is a sellers market and buyers are willing to come out of pocket with additional cash. You have two options , either wait the market out ( unknown time ) or pay what other buyers are paying NOW.

ok...buyers market is what I've thought for a short while here (about a few weeks)...both my lender and my agent's manager say it's quickly flipping back to a buyers market, but I'm starting to think that maybe the pool homes are going to be the slowest to flip back...as I'm noticing a massive jump in inventory of homes without pools, but the ones with are dropping like flies off the market. I'm also hearing things about how most investors are done buying here as the prices were creeping upwards, but few are still snagging deals. Apparently they have flooded the rental market which is costing the investors in the short run as there's not enough people to rent them all (but i'm sure they'll profit in the long run when prices are up 30-50% from now)

[ScoopLV]

Originally Posted by phillk6751

...both my lender and my agent's manager say it's quickly flipping back to a buyers market,

They haven't been right about anything else. Their 2006 predictions about the real estate bubble were wrong. Their 2007 predictions about the depth of the crash were wrong. Their 2008-2010 predictions that "we've hit the bottom" were wrong.

They have never been right. Don't listen to them. Buy the best house that you can afford and get off the rental merry-go-round. If you need to save for another year to make it financially easier to purchase a house, do so.

The only person looking out for your best interest is you. Never forget that.

[bayview6]

Originally Posted by phillk6751

I have been searching for homes in the $100-200k range for almost 6 months now...in the last 2-3 months making offers and receiving the same old song and dance: "If the house doesn't appraise are you willing to pay the difference in cash". WHAT!??! NO WAY! I'm financing via FHA (and the MLS states they're accepting FHA). What are these agents/sellers smoking thinking that your average FHA buyer can afford the additional 5-15k+ out of pocket to OVERPAY for a home? I'm affraid to even dish out the $400-500 on an appraisal after hearing this request from the seller's agent if they were to accept my offer. I cannot afford to lose that money and find out that not only is it overpriced, but that the seller isn't even willing to match the value.

Has anyone else here been running into the same scenario? I'm starting to give up on the houses with a pool, maybe that might eliminate the issue for the most part (as i was told appraisers aren't even including the value of a pool in their appraisals).


The last property was a corporate flip, claimed fast response on offers...placed the offer over the weekend and didn't hear back until Thursday that if i'm not willing to cover the gap, that they want to wait a few more weeks to see if any better offers come (and it's already been on the market for over 2 weeks...and homes are flying off the shelves in the first week of being on the market that are priced reasonably).

Don't buy a house with a pool. Increased water and electrical cost plus pool guy cost plus equipment costs if something breaks. Not to mention the cost of a plaster job.

Pools lose about 50 to 60 gallons of water a day to evaporation in the summer. With water restrictions and water price hikes coming down the pike, don't get stuck with a white elephant.

[logline]

Bayview is right: pools are a big cost (and hassle) to maintain. Trust me.

Also, if you KNOW that appraisals are going to come in $5000-$15000 over what you can buy for, why not look for a slightly smaller home and take that extra expense into account? Seems like a logical way to deal with this problem.

[lvoc]

You have to get over the belief that an appraisal tells you what market value is. It tells you what a bank is willing to finance for whatever kind of buyer present. But that is not what the home is worth on the open market. Whenever you get a sharply rising market the appraisers always shoot behind the duck. And there is substantial bank pressure on them to do so. They do value pools...generally 20 to 30 percent of what they cost.

So being prepared to go a few percent over appraisal is likely wise and is not overpaying.

ONe way out is to watch very closely for HUD and Homepath sales. I generally recommend over bidding a little there also.

Do your own comps or get your agent to help you. It feels much better if you have a reasonable idea what a home is actually worth.

I just finished with a below $100,000 buyer and it was a bit of a chore. But we got it done. I also have one house in contingency at just below $200K where we are waiting with baited breath for the appraisal. This is a gorgeous little house but looking at the comps I could easily pick a set to get from 15K under to 15K over. Our best hope is that appraisers tend to go high on nice looking houses.

So hang in there and try to figure the house value rather than the appraisal.

[phillk6751]

Originally Posted by lvoc

You have to get over the belief that an appraisal tells you what market value is. It tells you what a bank is willing to finance for whatever kind of buyer present. But that is not what the home is worth on the open market. Whenever you get a sharply rising market the appraisers always shoot behind the duck. And there is substantial bank pressure on them to do so. They do value pools...generally 20 to 30 percent of what they cost.

So being prepared to go a few percent over appraisal is likely wise and is not overpaying.

ONe way out is to watch very closely for HUD and Homepath sales. I generally recommend over bidding a little there also.

Do your own comps or get your agent to help you. It feels much better if you have a reasonable idea what a home is actually worth.

I just finished with a below $100,000 buyer and it was a bit of a chore. But we got it done. I also have one house in contingency at just below $200K where we are waiting with baited breath for the appraisal. This is a gorgeous little house but looking at the comps I could easily pick a set to get from 15K under to 15K over. Our best hope is that appraisers tend to go high on nice looking houses.

So hang in there and try to figure the house value rather than the appraisal.

Thank you...I tend to disagree a bit with the homepath/hud sales btw...I have been seeing the opposite, where they're asking like $120-140+/sq ft for something that's practically a dump when the rest of the market is asking $95-110/per for mint homes. I see a house currently (60 Megan Dr) where they're asking $246k...if you check zillow (and I know it can be off) is estimating at 168k and maybe as high as 210k at the very top end.


There was another house that 2 houses over was asking about 8k more and was absolutely beautiful with a spa and 15x30 pool (albeit a smaller lot) and the repo that was cheaper at 192k had tenants with dogs and the urine smell was so bad it was ridiculous; the garage door was busted up; and the place needed some work upstairs too...same layout, sq footage, etc...my guess it was more than 8k worth of repairs.


However I don't completely disagree, repos can definitely save you some money if you find the right one.

[phillk6751]

Originally Posted by logline

Bayview is right: pools are a big cost (and hassle) to maintain. Trust me.

Also, if you KNOW that appraisals are going to come in $5000-$15000 over what you can buy for, why not look for a slightly smaller home and take that extra expense into account? Seems like a logical way to deal with this problem.

I know they can be costly to maintain, but i'm dead set on one...I plan on maintaining it myself, and on top of that I am really into upgrading to either salt water or UV. We will find more use in a pool than we will an open yard. I'm really also set on an Aquaponic garden as well to be self-sufficient...and have found it to work very well out here in the desert.

[airics]

Originally Posted by phillk6751

I know they can be costly to maintain, but i'm dead set on one...I plan on maintaining it myself, and on top of that I am really into upgrading to either salt water or UV. We will find more use in a pool than we will an open yard. I'm really also set on an Aquaponic garden as well to be self-sufficient...and have found it to work very well out here in the desert.

I have a pool and I disagree. It hasn't cost me much at all. I had the pool built. The only thing I changed which I was unhappy with was the pump which was a single speed. I went to Leslies, paid 900 installed for a pentair variable speed and save a ton on the electric. I'm paying about 25 bucks a month in electric compared to about 80-90 with the single speed. I then took the single speed and sold it in 2 days on craigslist for $300.
I even heat the pool when I want to..... I run it to 102 degrees. I have jets in the pool so i can have a giant hottub. Costs me about $20 for the gas for a couple days in the winter.
I can't tell you about replastering since i have pebble tech as the floor.

My pool guy (aa702) is awesome and reasonable. The cost varies on what you want him to do.... You can pick a chemical package (cheapest) where he just does chemicals or full service which i have.