[twoeeyy]

Originally Posted by airics

Curious. What was the ratio of cash buyer to finance? And what price point was the house at? And congrats by the way. At most I’m holding on 1 more year to sell but I’m thinking this year. Did you stay in the area? If so then you didn’t make money considering what you would pay for the new house

We had 2 cash offers
price point was asking price of 250. We accepted an over asking traditional FHA loan. we priced low expecting a bidding war

we built a new home in pahrump so we actually did make out well

[beachhead]

Originally Posted by twoeeyy

We had 2 cash offers
price point was asking price of 250. We accepted an over asking traditional FHA loan. we priced low expecting a bidding war

we built a new home in pahrump so we actually did make out well

Regardless of what anyone else says, if you and the buyer are happy, that's all that matters. Congratulations on your good fortune.

[foundapeanut]

^^^ exactly. We all aren't looking for the same thing. Which is a good thing. I heard 1/3 of buyers paying cash. Could just be my hood.

So for those waiting for homes at rock bottom, the game has changed a lot. From the requirements, proof of money for down payments, proof of jobs that can afford the home) the lender now has, it will not happpen again.

Originally Posted by lvmensch

And I know a number of agents who worked the high end...my brokerage has a set of people who specialize in it. I would also note they tend to be the powerful salesman type...not the technical RE type. And they often have a very high BS quotient.

The facts however are quite clear. Normal homes have 1.6 months of inventory. Condo Townhouses have 1.2 months. Houses above one million however have 11 months. So about 10 times as long to sell as the low end.

We are about to list a nice super view home in Sun City Summerlin. We expect it will eventually sell for around $750,000. But it may well still be with us next fall.

There were many strange things in 2005 and 2006. But they do not exist in this or most normal markets. And this is a strong seller's market. When things go to a more normal one the time to sell an expensive house will grow.

You know the agents I'm talking about. I won't use there names here, they get all the publicity they need. The ones that put out the super fancy magazines of homes. The ones that wouldn't touch a home in this price range as they work home at least triple that and more.

If it is taking 11 months to sell a $750,000 home, something is wrong, this is the most expensive home there, the cliental that buys that price range, does't want to live there? Stating facts as it applies to Summerlin. Retirement community which hurts number of buyers right from the start for that price range. New competitive retirement communities where that is not such a high number. Wide open access, where no screening of people entering. A friend of mine who deceased husband says she lived there in the very early 90's, so older community. Lots of variables which can help or hurt a home pricing sale.

Will admit 2005 was strange year, which is why we moved. A 7 figure gain no longer is a home, it has become an investment.

Lots of BS with agents. Am hearing from agent friends, some agents won't show competiting agents listings. Petty crap that should not be done by 'professional' RE agents.

[ragabnh]

In the street where I live, homes above $500K sell in less than two months if priced right, the ones that are not moving are priced way above market price.

[MAXIALE02]

Originally Posted by airics

In a hot market. Do the 1% to seller. 3% to buyer agent. Otherwise figure it into price of house

With this market, there are tons of cash offers. I’ll take a lower cash offer over finances anyday

Just sold our sfr in 89081. Listed under 250K. Three offers the first day. One was full asking price (w/ financing) sight unseen. Our agent suggested buyer to come see the home first. Second offer was $10K under asking price, third offer was a super lowball investor type.

The next day we countered the second buyer $5K under asking. He accepted and we took it because of cash buy/quick closing. Also with the full price offer, we were not sure if the appraisal would come back at what we were asking? This was our first time selling and feels like sellers are at the mercy of appraisers. I know enough to know that I don't know enough.

We initially listed in September when we went under contract for our new home but pulled it off because we didn't want the pressure of moving before the new house would be built. We listed at $20k less and that was only 4 months ago! Closing at the end of the month and happy to have it off our hands, at the same time...wonder what its going to do over the next year for the new owner...who declared its going to be a rental.

How do these investors make money by paying cash and renting out? Seems like that would take a long time to recoup the costs. Can anyone please explain?

Also: It needs some work. Good bones but needs bathroom flooring and whole house painting.

Maxine

[ddrhazy]

"How do these investors make money by paying cash and renting out? Seems like that would take a long time to recoup the costs. Can anyone please explain?"

Honestly the ROI numbers are becoming harder to justify. It made sense from 2009-2015 to buy all cash and rent out. These days you're looking at 5-7% ROI depending on the type of deal you can get. 5-7% is better than a 2% CD, but worse than putting that money in an index fund that is getting 10% or perhaps better. Whether or not an individual believes the risk is higher in the real estate play or by putting it in an index fund is subjective.

You also have to consider the belief structure of the investor. One that invests in RE probably believes the housing market will also go up and is also calculating the eventual proceeds from selling in the future.

[airics]

Originally Posted by MAXIALE02

Just sold our sfr in 89081. Listed under 250K. Three offers the first day. One was full asking price (w/ financing) sight unseen. Our agent suggested buyer to come see the home first. Second offer was $10K under asking price, third offer was a super lowball investor type.

The next day we countered the second buyer $5K under asking. He accepted and we took it because of cash buy/quick closing. Also with the full price offer, we were not sure if the appraisal would come back at what we were asking? This was our first time selling and feels like sellers are at the mercy of appraisers. I know enough to know that I don't know enough.

We initially listed in September when we went under contract for our new home but pulled it off because we didn't want the pressure of moving before the new house would be built. We listed at $20k less and that was only 4 months ago! Closing at the end of the month and happy to have it off our hands, at the same time...wonder what its going to do over the next year for the new owner...who declared its going to be a rental.

How do these investors make money by paying cash and renting out? Seems like that would take a long time to recoup the costs. Can anyone please explain?

Also: It needs some work. Good bones but needs bathroom flooring and whole house painting.

Maxine

Was this in the Cottages of Centennial Hills?

[SportyandMisty]

Originally Posted by lvmensch

And I know a number of agents who worked the high end... And they often have a very high BS quotient.

Wait. You're saying some real estate agents have a very high BS quotient?

I'm shocked. SHOCKED, I tell you. Round up the usual suspects.

[SportyandMisty]

Originally Posted by lvmensch

The facts however are quite clear. Normal homes have 1.6 months of inventory. Condo Townhouses have 1.2 months. Houses above one million however have 11 months. So about 10 times as long to sell as the low end.

As a non-real estate professional, it seems to me your data indicates the agents for homes above $1 Million haven't priced the assets appropriately. If the above-$1M months-of-inventory were about 4 or 5 months, I would understand it. But 11 months of inventory just seems to me to be indicative of a big mismatch between seller hopes and actual, you know, buyers willingness to spend.

[MAXIALE02]

Airics - Not in the Cottages of Centennial Hills.