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Home buying thread
- Thread starter Pasteton
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Guest, did you like the last podcast notification?? Well here's the second one, and for the third podcast! Yep. This Thursday 8-8-24 at 7pm Central
Go here to check out his podcast thread for info on topics and links!Go into the FoH discord and find the Happy Time Fun Hour channel and give it a listen!
Kiroy
Marine Biologist
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The_Black_Log Foler
PalsCo CEO - Stock Pals | Pantheon Pals
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Doesn’t the seller pay the commission for the buyers real estate agent? Maybe just Florida? I’d imagine in theory the seller would try to pass that cost on to you in some way.
There is going to be an entire generation stuck with 6% - 8%+ rates and it has nothing to do with their financial acuity, it was simply when they entered the market.
We can sit here and think they are idiots for buying at those rates, but it's also possible the rates continue to go up and in a few years people consider the current rates cheap, as it's possible they could be 10%
Palum
what Suineg set it to
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That's true, but I'm not sure you can dismiss the price inflation component for holding rates so low for so long. The supply constraints and lockdowns caused short cycles so prices skyrocketed faster than they reasonably can come down. So the problem isn't really a 7% mortgage it's the fact that the only way they don't lose on purchase price is with hyperinflation. I suppose that's possibly more likely at this point than any other resolution to the current situation but it is still a betting game.
Fucker
Log Wizard
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6-8% not the end of the world by any means. People older than us bought homes at 15% and survived.
People are just going to have to *gasp* buy homes that fit their budgets.
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Tmac
Adventurer
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With the advent of the McMansion there’s not a lot of inventory for first time buyers.
I think this is one reality that gets little coverage. New home buyers don’t want 3000+ sq ft homes, but that’s all that is available w new construction.
[edit] My fav style home is a ~1500 sq ft 1960’s brick ranch w an updated kitchen.
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Gravel
Mr. Poopybutthole
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Yep, I've brought that up a few times. The answer I got is that it basically costs a builder a very small amount more to go from a starter house size to McMansion size. So they're incentivized to just build the bigger houses that fetch a much higher selling price.
Add in that people apparently don't give a shit about land and they'll build a 3000 sqft home on a quarter acre lot right up next to their neighbor.
In the past even with interest rates being where we're at now at the historical average, at least you could buy a 1000 sqft house and it still be affordable. First time buyers now have to spend double what they would on a house that's way too big.
Add in that people apparently don't give a shit about land and they'll build a 3000 sqft home on a quarter acre lot right up next to their neighbor.
In the past even with interest rates being where we're at now at the historical average, at least you could buy a 1000 sqft house and it still be affordable. First time buyers now have to spend double what they would on a house that's way too big.
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Sanrith Descartes
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I wasn't speaking of rates. 6-8% is a historical norm. It's the 40 and 50 yr durations that's insane.
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Sanrith Descartes
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Agent for the builder I bought from said the initial builds were smaller (13-1500 sqft) as the majority. She said she couldn't sell them. They made the majority 2000 sqft+ and they sell like hotcakes.
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That's part of the problem right there though.. slightly higher cost for massively higher price. That disconnect needs to be hammered up someone's asshole right now it's the buyer. Fucking goblin math.
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Sanrith Descartes
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The land thing still amazes me. It's the land that is truly valuable. I love the privacy the size of my yard gives me.
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Jasker
EQ MegAutist
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Hi guys, I'm looking to buy a home. I have good to excellent credit. Should I be buying now? I have a bank that I've been for a long time that personally knows my family an myself, who I have a general money account with. I'm single and not looking for anything above like 130k. Anyone have any lending recommends? Foreclosure or cheap-unknowns websites? Tips on getting a loan and how to talk to a semi trusted bank about it?
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Well maybe people are just morons. Which is something we often fail to take into account. Shaqanika probably sees a 1500 and thinks she deserves better and the FHA provides some biden style socialism so her 520 credit score gets her a rate damn near the same as your 800 score.
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Jasker didn't you move close to Tampa? That 130k price point won't even buy you a trailerpark home. You might need to pack your shit and move to Bumfuck Alabama or something if you are looking for anything at that price point.
Jasker
EQ MegAutist
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I did but I'm back in New York upstate for the time being, around here I could buy something decent for 130k haha
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Jasker
EQ MegAutist
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Upstate, so basically not New York City. I live in a non-rich area. So you can see nice 800-1k square feet houses here for 110k or so.
Sanrith Descartes
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Sanrith Descartes
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I have used Rocket Mortgage in the past. They are great for the computer literate. They give a single list of every required document upfront and you just upload them to the website. It was a seamless process and had no hiccups. Rates at the time were competitive. They have no physical branches so they they run lower costs and can offer lower rates (relative to brick and mortar banks).
If you have 20% down and decent credit you get a conforming mortgage and it should be a breeze.
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