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Trying to buy a 2nd house for my daughter to rent. It is so discouraging. We have placed offers on about 5 houses so far, all to fall through. Mostly them accepting another offer. We are not rich and can only go so far price wise . Houses go so fast these days. Even when we put offer quickly within one day of listing we are outbid.
We have the same issue on Long Island.
I have several buyers who can't seem to bid enough over asking to get an accepted offer - their pre-approval goes only so far. Too many buyers chasing low inventory in our area.
One example:
Asking price $539,000
we offered $560,000
it sold for $591,000
Last month I went to an open house on Sunday and sent an offer next day.
The asking price was $629k and I offered $680k, and it did not work out. The agent said they got 10 offers!
It is in Massachusetts.
Trying to buy a 2nd house for my daughter to rent. It is so discouraging. We have placed offers on about 5 houses so far, all to fall through. Mostly them accepting another offer. We are not rich and can only go so far price wise . Houses go so fast these days. Even when we put offer quickly within one day of listing we are outbid.
I know it's really frustrating, but there's a lot of factors going on which are *still* affecting prices:
1 - Extremely / record low interest rates
2 - Telework phenomenon (people leaving SF, LA, NYC, CHI and moving elsewhere with a lot of money)
3 - Pent-up Demand from a full year of nothing
4 - Foreign Investors
5 - Corporate Investors
6 - Private Investors (people like you and me)
7 - Powerball Phenomenon
#4 is the frustrating one. As humans, we often seem like Lemmings sometimes. Once a large enough group of people start doing something, everyone else feels like they need to do it also, otherwise they will miss out.
But all of these things compounded... it's really difficult. A lot of people are looking for investment properties. I myself have operated a rental house since 2017. A house I bought in 2003, and have been renting it out since 2017. Everyone wants to get in on that... including foreign investors who simply make full cash offers. I sold a house in Texas (San Antonio), and made almost $200k in equity in the 4 years I was there, and then accepted an offer of $40k over asking price. There were times I thought... this seems unfair for all those people who really wanted my house. I know this because everyone seemed to want to have deep discussions with their realtor right outside my front door where I had a Ring Camera / Doorbell... so I heard everything. But at the end of the day, everyone is in the same situation, and I didn't see any reason to deny myself $40k, which I would then /also/ need when I went to go buy the home I'm living in now.
It's great if you're selling... but horrible if you're buying.
What I've noticed too... rent prices have skyrocketed as well.... which was not something I expected.
#4 is the frustrating one. As humans, we often seem like Lemmings sometimes. Once a large enough group of people start doing something, everyone else feels like they need to do it also, otherwise they will miss out.
Sorry, where I say #4, I meant #7. The Powerball Phenomenon is where as people start to see the value increase, more and more people want to get in on it.
LLs are making up for lost rent during the eviction moratoria.
My tenant continued to make their mortgage payment throughout all of the lockdowns and nonsense.
He's been my tenant now for 5 years, and I've never raised his rent in the 5 years he's rented from me. I charge him $2,800, and the going rate is now $3,500 in the area. I'll continue to only charge $2,800 because he's a good tenant that pays on time... and I still make money. But as soon as he leaves, or if he stopped paying and I had to evict him, I'd immediately start charging the going rate. I already spend many thousands of dollars a year in charity to various international causes (World Vision, etc.). No reason why I need to provide charity to a middle class American that has more opportunity in this world than 90% of the planet.
The pent-up demand is from 13 years of under-building. Remember 2002-2006? Cornfields converted into housing-tracts. Starting in 2007, it was hammers-down. What has been built since then?
Quote:
Originally Posted by Atari2600
I sold a house in Texas (San Antonio), and made almost $200k in equity in the 4 years I was there, and then accepted an offer of $40k over asking price. There were times I thought... this seems unfair for all those people who really wanted my house.
This however is highly regional and situational. My house was sold, after 20 years, for less than what I paid for it. Who wants a dilapidated place out in the country, in the Rust Belt, in a dying community, with harsh weather and comparatively high taxes?
What we're seeing is a national sorting-out. WFH may mean that cash-flush people are abandoning San Francisco for Boise or Reno, but they're not moving to Youngstown or Peoria.
Trying to buy a 2nd house for my daughter to rent. It is so discouraging. We have placed offers on about 5 houses so far, all to fall through. Mostly them accepting another offer. We are not rich and can only go so far price wise . Houses go so fast these days. Even when we put offer quickly within one day of listing we are outbid.
This is an everyday occurrence here in SW Florida. Example: neighbor behind me listed his home for sale. Had showings on one day only, told buyers to make your best offer. His home sold for $69k over original list price.
Another neighbor has her home for sale at $499.9k. Sold at asking price in one day.
It is crazy out there OP. Might be best to wait and continue saving $$$$ until the market comes back to reality. Personally, I would not be buying at the top of the market.
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