Home buying thread

Sanrith Descartes

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"Company lost money on 42% of its August resales after it failed to anticipate slide in housing demand. "
The illusion that people in finance are smart is a myth. Maybe it was true once, but a decade of hiring based on gender and skin color has destroyed the Financial sector's intellectual edge.
 

Lanx

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The illusion that people in finance are smart is a myth. Maybe it was true once, but a decade of hiring based on gender and skin color has destroyed the Financial sector's intellectual edge.
opendoor (houseflipper not the tattletale yelp site) is ccp company created to raise housing prices in america

cant wait for builders to crash and wood is cheap again, i guess then i'll make a fence, maybe.
 

Falstaff

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The illusion that people in finance are smart is a myth. Maybe it was true once, but a decade of hiring based on gender and skin color has destroyed the Financial sector's intellectual edge.
It’s true, most of us are even using excel 2013 still. The entire global financial system is run on 10 year old excel technology!
 

Haus

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Excel > all.
1663643397620.png
 

Jysin

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Tide27

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Damn sure wont be from mortgages.

We are literally one week out from closing on our new construction. We signed for the home at 3.85%, by the time we were able to lock the rate it was 5.9%. Now 7 days from close, there is no sod, no toilets, no shutters, no appliances, 5 holes in the wall from where they punched through looking for thermostat wiring.

Luck sure would have it that our lock only lasts until Oct 3rd, and now interest rate is over 7%. If we dont close by the 3rd, we will lose the house and still owe them $12 fucking grand for having to walk away from the home.

I fucking hate the god damn Democrats and Biden administration for fucking everything up.

Its all on god damn purpose too.
 

Sanrith Descartes

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Damn sure wont be from mortgages.

We are literally one week out from closing on our new construction. We signed for the home at 3.85%, by the time we were able to lock the rate it was 5.9%. Now 7 days from close, there is no sod, no toilets, no shutters, no appliances, 5 holes in the wall from where they punched through looking for thermostat wiring.

Luck sure would have it that our lock only lasts until Oct 3rd, and now interest rate is over 7%. If we dont close by the 3rd, we will lose the house and still owe them $12 fucking grand for having to walk away from the home.

I fucking hate the god damn Democrats and Biden administration for fucking everything up.

Its all on god damn purpose too.
Not saying this to be a dick, just doing some maths. Eating 12k is most assuredly the suck, but what is the difference in overall cost going to be over the life of the mortgage with that jump from 3.85% to 5.9%? Is it worth walking a way and waiting a year or two for housing to crash? Also consider with rates so high and people walking away from deals left and right, you might have some leverage with the builder to eat a point or so on the mortgage for you to prevent you from walking away and letting them eat the house. That 12k if good faith money may not come close to what they lose if they cant sell it for near the price you originally agreed to pay for it. You lose nothing by discussing it with them. Maybe tell them if they cant finish the house by your lock that they need to front the points on the mortgage to make up the increased rate or you will walk.

If you are in a high demand area then you got nothing to stand on, but if not then maybe you have a chance.
 

Tide27

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Not saying this to be a dick, just doing some maths. Eating 12k is most assuredly the suck, but what is the difference in overall cost going to be over the life of the mortgage with that jump from 3.85% to 5.9%? Is it worth walking a way and waiting a year or two for housing to crash? Also consider with rates so high and people walking away from deals left and right, you might have some leverage with the builder to eat a point or so on the mortgage for you to prevent you from walking away and letting them eat the house. That 12k if good faith money may not come close to what they lose if they cant sell it for near the price you originally agreed to pay for it. You lose nothing by discussing it with them. Maybe tell them if they cant finish the house by your lock that they need to front the points on the mortgage to make up the increased rate or you will walk.

If you are in a high demand area then you got nothing to stand on, but if not then maybe you have a chance.
I see where you are coming from.

We had a chance to purchase in Florida around 2012. 185k or so for a home in Davenport, but there were a ton of houses not selling and we were waiting for prices to drop.

Then we moved to TN...houses were a bit more, but everyone talked about the " bubble " and houses would crater around 2016 or so....so we didn't buy at 225k or so

Now we are in Indiana and prices continue to go up to where unless you offer 50k+ above ask....you can't get a home, and all new constructions start around 285k+

Our rent was 900 in 2012 and now we are up to 2250 in 2022. When the fuck does it stop?

Interest rates have now jumped yet again, so in 2 years we will be at around 15% interest and 500k+ entry level homes and completely out of reach. Rent by then will be 3k+....so never an opportunity to get ahead.

The only people walking away are folks in my situation, but there are ton of property management companies just buying every home for cash and jacking the prices up, making it unaffordable for pretty much everyone.
 

Sanrith Descartes

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I see where you are coming from.

We had a chance to purchase in Florida around 2012. 185k or so for a home in Davenport, but there were a ton of houses not selling and we were waiting for prices to drop.

Then we moved to TN...houses were a bit more, but everyone talked about the " bubble " and houses would crater around 2016 or so....so we didn't buy at 225k or so

Now we are in Indiana and prices continue to go up to where unless you offer 50k+ above ask....you can't get a home, and all new constructions start around 285k+

Our rent was 900 in 2012 and now we are up to 2250 in 2022. When the fuck does it stop?

Interest rates have now jumped yet again, so in 2 years we will be at around 15% interest and 500k+ entry level homes and completely out of reach. Rent by then will be 3k+....so never an opportunity to get ahead.

The only people walking away are folks in my situation, but there are ton of property management companies just buying every home for cash and jacking the prices up, making it unaffordable for pretty much everyone.
Its very geographically specific and I don't know what's happening there. I wanted to sell my house in April/May and take advantage of peak prices and reasonable interest rates for buyers but my wife nixed it. Cost us about $100k so far in opportunity costs as buyers are being priced out and demand slows.

There is no "good" answer for you. I think a return to normalcy in interest rates and mortgages is sometime in 2024. If you can financially handle the 5.9% then ride it out. If you aren't 100% sure the builder will have the house ready to close by rate expiration I would be talking to them and mentioning you walking away and them eating the house. When motivated, a builder can do magical things. Again, nothing bad comes from having the convo.
 

Fucker

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Damn sure wont be from mortgages.

We are literally one week out from closing on our new construction. We signed for the home at 3.85%, by the time we were able to lock the rate it was 5.9%. Now 7 days from close, there is no sod, no toilets, no shutters, no appliances, 5 holes in the wall from where they punched through looking for thermostat wiring.

Luck sure would have it that our lock only lasts until Oct 3rd, and now interest rate is over 7%. If we dont close by the 3rd, we will lose the house and still owe them $12 fucking grand for having to walk away from the home.

I fucking hate the god damn Democrats and Biden administration for fucking everything up.

Its all on god damn purpose too.
To make matters worse, it is all for window dressing. Rate hikes will do nothing to slow down inflation, much less reverse it. All it will do is hobble the economy and price people out of homes.
 

Lanx

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How many times am I allowed to sell my home to opendoor and buy it back? Infinite money glitch.
lulz noob

play hardcore and get a spraytan, frizzy hair and change your name,

then buy it back w/ zero downpayment and zero closing costs

but there are ton of property management companies just buying every home for cash and jacking the prices up, making it unaffordable for pretty much everyone.
yea these fucks are basically playing neighborhood monopoly and buying shit like baltic ave, and jackin it up, eventually someone has to rent