iSpyJupiter
149858
1324
32
Put another offer in on a home. Fully verified mortgage letters, $15,000 over asking, promising to pay the difference with cash if it didn’t meet the appraisal value. We received this email the next day, after it had been in the market for a total of 72 hours.
My husband & I left Colorado during the pandemic because rent kept skyrocketing & the housing market is a battle zone. Now we’re in Michigan and seems things are no better.
800 credit score, good down payment, consistent employment, no more debts, but I keep getting outbid with jerks with cash. TLDR: I just want to give my paycheck & soul to a bank for the next 15-30 years but cash beats conventional
UPDATE: this house sold for $78,000 over asking price, all cash, no inspection. Whooooboy. Guess we weren’t even close!
kydn
Housing market is utter bollocks. All self fellating and made up money buisnesses.
VirtualHugger
01010101011100110110010101110010011011100110000101101101e
Wife and I beat the housing boom in Austin last year by literally 48 hours
BeerBatteredandBold
I feel you on leaving Colorado. My spouse and I are moving soon to the east coast. Not excited for the house buying process at this point.
Bridgiebird
Yeah the people with cash out here are called "investors" who quickly and cheaply flip a house
SleeperSix
So, is there no relief in sight for banks buying up homes for rental properties? This shit is ridiculous.
WTHdoicare
I read this a lot and can’t understand why my house won’t sell. Only asking $55k. Listed for 6 months.
BJA007
Friend of mine here in Maryland having the same issue. He went 20K over and still got shut down. The house was complete shit too.
xanius
When I sold my house last May I specifically ignored cash offers because I wanted to help someone out in the asinine market.
iSpyJupiter
teacupsquid
Yep. Same here. Been sloppy crying all day because it was our (very modest) dream house. We went 25k over and have perfect credit. It sucks.
teacupsquid
Fyi - 25k is an OBSCENE amount for us, but we desperately wanted this house. We've been saving for 12 years. Still didn't cut it.
ImageAberration
Be patient. Many more homes go on the market in spring, there will be less competition when there is more inventory.
ImageAberration
Maybe talk to your bank about a bridge loan, so you can make a cash offer and then mortgage the house back to the bank.
godwithashotgun
corporations are rushing to buy up every home so they can rent to us until we die
alternatereality543
I'm in CO. Realtor suggested offering 25k-30k above asking. Fuck. Me.
Mibuzo
Sold my house early 2021. Priced it fairly. On the market 3 days, I got 77 showings, 28 offers, all kinds of extras. Went 75k over asking
Mibuzo
With a roof, furnace, and central air all approaching 30 yes old. It was wild
TheFriendlyVoid
This is a bad situation and increasingly common. You are doing things right.
legalizegillyweed
I plan on selling within the next year and I really want to accept an actual human who wants a home offer
Grurim
Sold my house a year ago, 30k over asking, but I turned down any all cash offers that came in so real peeps could get it.
SnakuPlisskin
Forgive my naivete but can cash offers only come from corporations and is there no other way of knowing who you're selling to?
Grurim
So, if you get a cash offer, at asking, site unseen, no inspection needed (which was all of them) that is not a person, its a corp.
aluminumonkey
We try not to use the word hero much, but you sir are one!
thevortexmaster
My house in Canada went up 39% this year. I wouldn't be able to afford it now. Check this out
SirenBrick
Between Chinese billionaires hiding tax income, and REIT's getting first dibs on subsidized housing to flip or rent for profit, prices crazy
Doso777
What's up with the Germany figure? Houses have been getting expensive here too, no way we saw prices going down that long.
jlist
I'm going to send that link to the Animal Spirits podcast, that's great info
DKB13
What makes the german market different?
thevortexmaster
No idea
StatisticallyInsignificantCanadian
While you're right and it sucks, this being common knowledge is why foreign investment is so damn high.
thevortexmaster
Yup
StatisticallyInsignificantCanadian
Not to mention that graph is pre-pandemic. House we had built 5 years ago is worth more than double what I paid. Shit is bonkers.
thevortexmaster
Ya exactly. Like I said 39% just this year. Truly is nutty i bought it right when covid hit and the whole situation was lucky for us.
Paradox1111
My neighbor listed at 850k.. got 1.2M$
thevortexmaster
Jesus
LordHosk
The Canadian prices are distorted by Vancouver, Victoria and Toronto. They are up nationwide but those cities are up 500% in 10 years.
thevortexmaster
In my tiny hometown no where near anything with no roads in or out the prices have all gone up by at least $200k in the last few years.
thevortexmaster
Probably true but I imagine that's a huge chunk of people in Canada. I don't live in any of those cities and my house went up 39%
ChelseaBun28
I live about an hour out of Toronto, our 700sf condo value has increased by 70% in 2 years.
thevortexmaster
Crazy!
DKB13
Same with the UK and London, but the. 25% of the country lives in and around London
MileHighLivin
I know it sucks if others get such an upper hand,but one thing that home sellers can do is ensure they're selling to an actual family ->
MileHighLivin
->At least then its going to someone who will use it and love it.Other than some Corp that milks it and its renters for every penny they can
lindabelchersfirstcousin
“Money talks. Bullshit walks.” - America ??
MileHighLivin
Apparently so. Seeing how I got downvoted for saying homeowners should sell to families instead of corporations.
lindabelchersfirstcousin
Homeowners don’t give a shit.
MileHighLivin
Until the sell their home and need somewhere to go, lol
RuffleMyFluffles
imo asking price means nothing. I offered 100k over asking on a ~500k condo, but was just 10k above market price since lowballed list price.
RuffleMyFluffles
Dunno why the listing realtor wanted more work getting blind bidding offers that wasn't anywhere near the market price
RuffleMyFluffles
Market price refers to what other same units on diff floors or diff units in same building sold for within last month.
M4GNETR0N
Average bid in Amsterdam is currently 100k over asking and no conditions
jlist
Yes, Americans think their housing is so expensive but it’s much worse in certain parts of Europe. Why is that?
noid20
100k average? Do you have a source?
GoodOleBunburyist
Yikes. Where in Michigan? I just helped a friend sell a house in SE MI, good house good neighborhood, and they got a single, normal offer.
iSpyJupiter
This ones Waterford Twp. Also happened to us in Plymouth & Royal Oak so far.
GoodOleBunburyist
That's terrible. Are these "cheap" houses being bought for rentals, maybe?
LordHosk
Those are all upper middleclass areas with top 20 in the state school districts.
lindabelchersfirstcousin
This is me AND I live in CO. I gave up and have accepted the fact that I’ll die homeless. Zillow is always gonna outbid me.
RingyDingy
I work retail and I was actually able to buy in the West Metro area, Colorado has some good first time home buyer programs
flacoloco
not any more, they stopped buying houses, Blackrock is your competition
lindabelchersfirstcousin
Atomic2
Blackstone?
whitegirlcanteven
This is yet another reason why corporations should never be allowed to own single-family homes and we need strict property ownership limits.
jlist
Or if they do, they pay 2x property taxes as penance for their sins
SnakuPlisskin
Make it more than that. Or better yet, yeah, just don't let them own them.
whitegirlcanteven
THIS! Like, 4-5x and it is illegal to pass that on to the renters. Make it painful for them to hoard property, then they MIGHT stop.
jlist
I also support Adding extra taxes for homes or condos that are bought for investment purposes and left empty all the time, they should
jlist
Be used, rented out if the owners aren’t using them, which creates community and generates lots of tax revenue, not left empty
whitegirlcanteven
They should be sold, not rented. Single-family homes should be a way to build equity for single families.
Skyff
Could wait for the next housing market crash, should start soonish the way the economy and inflation is going.
schlockchurch
Depending on where you're looking, this may not be feasible. It's not gonna happen where I am, but in less desirable areas it may.
YouCanCallMeCal
As a first time home buyer last year. Fuck you. A price re adjustment is great, housing crashes cost lives.
LordHosk
There simply aren't enough homes to go around, 30-40 years ago we build over 2 million homes a year in the US, now we build 300-400,000/Year
StigsMilwaukeeCousin
Just drove through rural Indiana, there's entire towns, completely empty, homes vacant, everything abandoned. Plenty of homes, dirt cheap.
spoiledbabykitty101
At the least there should be stabilization or adjustment down when they finally raiser the interest rate.
MeEmBot
No crash is anticipated by experts. Forbearance is now under $1M. Fewer foreclosures
djzapz
Waiting for the next market crash might get you to wait until you're priced out of home ownership. Be careful.
billyrayvirus
7% inflation will still outpace your ability to save up.
billyrayvirus
IamGelatinSkelly
They've been saying that for years. I waited patiently, working my ass off until the pandemic hit.
Imalwaysready
Unless said crash also puts your job and income at risk and tanks the value of your savings and investments along with it.
st9man
This feels just like 2007. I have a feeling a lot of people are going to be pretty upside down on their houses
KodiakSamurai
I don't know. 2008 was all about bad loans backfiring. That's not happening now.
Jagerbeast
Nah, corporations will just keep the houses/land, and write it off on taxes
lindabelchersfirstcousin
This.
Eldis
AND IT IS LEGAL WHOOOOOOOO GREAT SYSTEM
mohavewolfpup
If you think it’s bad now with investors throwing a briefcase on the table, just wait until the crash happens. Investors would buy>
mohavewolfpup
Whole blocks of houses here in Vegas when the market crashed. Briefcase got bigger and heavier and realtor pieces of shit loved the payday
Jacksk3lton7
There is not going to be a crash. It's a supply problem. If you wait to long you are just going to pay for it in higher interest rate.
JAPONfan
that's my plan. I know only two types of people: ones that have like 5 property for lease and ones that rent room with 3 others.
EchoOfSnac
Also the people who have already had their homes for decades or even multiple generations, and people who get lucky.
EyeSpyABreathtakingPerson
All these people waiting for a crash, but I don't see why the current market is likely to change either situation any time soon.
JAPONfan
the prices go up people can't afford to rent by themselves, landlords are left with empty spaces. they sell those to not accumulate mortgage
LordDebuchan
Guess who is just gonna continue to buy them?
JAPONfan
zillow on larger scale. And then they will try to offset the price by the rent price and then people will not be able to afford it
Skizzlesnap
Take it from me, you might want to hold off on buying right now. I realize it sucks, especially if you’re on a tight timeframe but this…
IMakeMyOwnSweat
I agree but I don't see an end in sight
Skizzlesnap
Oh you won’t. Just like in 2008, nobody saw it coming except a small few. Just gotta ride it out or you’ll be underwater when it happens.
IMakeMyOwnSweat
People can see these things coming they just have no idea when the shoe will drop
Skizzlesnap
…ain’t the market you want to buy a house in. You’re gonna get dragged over the coals and I would NEVER buy a house without inspection.
AccountCreatedToUpvoteDogs
I did a pre-inspection on a few homes before putting in the offer. Sure I lost two if them, so fees down the drain, but worth the 1/
AccountCreatedToUpvoteDogs
few hundred dollars to come in without the contingency and still know I'm not at risk of major issues. 2/2
djzapz
What if you hold off on buying a house now and it continues to get worse though?
BorkBork7
Sunk cost fallacy.
djzapz
I don't think it applies here. The price of the asset has historically climbed faster than wages. Over decades.
BorkBork7
Even if that's true, why would anyone willingly chain themselves up in 30yrs worth of debt and still risk losing everything via foreclosure?
browsererror
The FOMO is strong. I've been through a couple of bubbles and this feels like one. I just don't know when it will peak and/or bust.
djzapz
Lots of analysts are saying this isn't a bubble, and the price of housing has been increasing over the years. Even if a bubble popped, gone
djzapz
are the days of houses being affordable in urban centers. People have been getting priced out over decades of growth.
Xecryo
That said never waive an inspection. People will try and hide mold by painting over it and do all sorts of scuzzy shit to make a sale and>
Xecryo
scandia
Looked to buy in 2004 during last bubble. Foundation cracked, leak. Seller offered wrench (to fix pipe) in counter. Never waive inspection!
upfr0mhere
Almost guaranteed that buying cash with no inspection are buy to let landlords who don't care about slum condition housing
Ripplingtwinkie
That blows. The market is so fucked right now
LucidPariah
Ugh! Paid 118k for my condo 10 years ago can sell for 300k+, but new place same square footage +1 bathroom at double current mortgage...
schizznatt
We offered 20% more than the asking price and waived all contingencies in order to get our house. We would have lost it otherwise. It was
schizznatt
our 6th offer and we didn’t want to lose again.
TacosAreDelicious
Completely unsustainable. If the market crashes it’ll probably be worse than 2007/8
datester35
What about purchasing land and building yourself/with hires?
SnakuPlisskin
I imagine land is probably at a premium now too but I agree that's probably a better option. In-laws live on an acre lot and we're trying (1
SnakuPlisskin
to get them to split the lot and let us build there as it's the only realistic way we'll ever own a home (2/2)
Fairemont
You'll pay at least 50% more to build the same house you could have two years ago.
datester35
Hmm that's true with wood prices, but with bricks/siding/concrete it likely wouldn't be much more?
Fairemont
I don't know about bricks, but most siding has also increased. Granted, unlike lumber, those prices will never go down
lightfoot2
Best not to buy now then.
IMakeMyOwnSweat
Then you just have to rent and it's even worse
Hyndisfox
Each year the market gets more fucked. Each year I get older. I can't wait forever for the market to become more sane.
djzapz
Maybe. Maybe it's fucked now and it'll be even more fucked later though.
TA2019
Doubt it.
djzapz
Historically prices have been going up, pricing people out. What evidence do you have for the reversal of a decades-long trend that is being
djzapz
made worse by investors being increasingly interested in houses? Even if a bubble popped, it'd then start climbing back, pricing people out
lightfoot2
Oh no, it's FOMO! (I love the album Oh no, it's DEVO)
Imalwaysready
I mean, there's the fear of missing out, but then there's also the risk of actually missing out.
djzapz
Yeah FOMO is real. Seeing people getting priced out over the years is a bit scary.
horseman05
Those Jerks with cash are most likely Corporate Buyers.
Aaronb1138
It's all been Californians here in DFW and the rest of Texas. Plenty are buying second homes to use as rentals.
copingcabana
It's the next phase of economic slavery.
craycray606
Blackstone Group is a major residential property buyer in almost all states.
[deleted]
[deleted]
noveltyanomaly
Welcome to Vancouver, BC
craycray606
Used to be true. Not true in 2021. Chinese can’t get money out of their country. RMB to USD conversion is expensive & watched in big amounts
CNChapeL
So much this.
MacklinBurtMacklinFBI
Our first home 2007 and new home 2019 both cash. How’s it go? in god I trust the rest pay cash. Stack money folks even if it’s a dollar
MacklinBurtMacklinFBI
Cash is king in purchase power. Selling for 150k show up with 120k cash it’s sold. Same with Craigslist 10k for car, show up with 8k cash.
DriveByShitting
JRSYJAY
1 in 7 homes are owned by Wall Street. Or so I’ve read..
IceyStars
This has been happening for years now https://youtu.be/BXTPzFSx6oI?t=550 Corporate Buyers aka Black Rock
aCoolBreezeOnAHotSummerDay
Can’t someone look at property records to figure out how extensive this is?
SirenBrick
A lot of this is management companies. You buy the (second/third) home, they assist with buying and managing, but you "own" it.
Userlivewire
Hedge funds are parking money in housing, getting appreciation off of it, and then charging rent to boot. They’re doing it in every city.
aCoolBreezeOnAHotSummerDay
Another thing, I don’t see a lot of homes being advertised for rental after being sold. Wouldn’t a Corp buyer have to do that next?
SaveitforQueenDoppelpoppolus
yeah if theres one thing corporations like its spending way more money than necessary on things that are supposed to be investments
SaveitforQueenDoppelpoppolus
like zillow was buying all those houses and made so much money that their home buying department lost $300 million and had to shut down
AbeoLogos
But, uh, that is direct evidence that corporations do love to do that? Corporations have chased every bubble in the history of economics.
Dustorn
You're evidence of corporations not doing that is a corporation doing it too much? You're not very good at this.
SaveitforQueenDoppelpoppolus
my evidence that most cash buyers aren't corporations is the company that literally controls the housing market cant make money doing it yes
SaveitforQueenDoppelpoppolus
the problem is theres ahuge shortage of SFHs and buyers willing to spend to get one. cash buyers have cash from selling their previous house
SaveitforQueenDoppelpoppolus
this is because of NIMBYs and restrictive development rules, not corporations
mardukkur
Sucks to be right about the fact that all evil in the world isn't actually a corporate conspiracy on imgur.
Frenchiepantsfan
The downvotes are funny. What you are saying is true. The housing shortage is real and that is a major cause
Ninjainslippers
I've gotten multiple fake handwritten letters inquiring about buying my house. Fuck you, I live here.
magicrhombus
A real shot at home ownership was perhaps the most important element of the New Deal, and it is evaporating.
AccountCreatedToUpvoteDogs
My friend used a company that makes cash offers while financing your mortgage on the back end to buy it from them.
reallynotmikepence
You can do that without the company middle man if you have the cash too.
caedescorvidus
Yeah big old if
reallynotmikepence
Still need the cash first even if you buy it through a company.
ColdestOne
How can I find more info about this?
Joejitsu
They sell points on the back end of the loan.
AccountCreatedToUpvoteDogs
Flyhomes is the company he used. I don't know how expensive their fees are. They also have to be your realtor so they get the commissions.
UraniumNight
Don't forget fuckin hedgies, buy up all the homes so nobody else can have any. That way rent is a captive market you can never escape from.
Vengeraxe
I bought a house in october here in St Johns with cash offer, Only had 2 other people bidding. Had mine inspected. Keep looking.
tr26
Around Austin, they’re Californians selling their hovels and buying big here
meowwoofgrr
Thats the running joke, but its likely llc's buying up all the stock to convert all residences into rentals.
tr26
Every property I’ve sold in the past 3 years (6 total) has been to a Californian or New Jerseyian, but you’re very probably right.
PartyAtYourMomsHouse
I do a lot of home renos here in Texas for people that just moved here from Cali... Like a lot
SirenBrick
From what I hear, they sold their second home, but still have a main residence in Cali, just easier flipping if you live there first.
Omni21
Same in Montana. We have decided to live permanently in an RV. The country is headed nowhere good and we want to be able to pick up and 1/
Omni21
Hide in the mountains when all hell breaks loose.2/2
SirSandwich
Farnham’s freehold style
craycray606
The ones buying are Tech Bros. People who work in Tech. Apple, FB, Twitter, Yelp, Tesla etc stocks are raged in 2021. They sold big time.
skellyten
Yup. I'm finally of age to buy a home for myself, but now I will never be able to afford a home in the place I grew up bc of these snobs.
tr26
Ironically I have a few rentals here but also rent, I can’t afford a house for myself anymore! It may be time to try Lockhart.
Kittynomnoms
They're snobs for trying to escape pretty much the exact same situation...?
skellyten
Either you are one or you haven't met very many californians that move here. I do AV work in the homes these people move into. They're snobs
Sensiblyinteresting
You got outbid by Zillow or Blackrock
blubberymuffin
Or people who see the stock market crash/"correction" coming and want a safer place to park savings.
CharliePapaBravo
My limited understanding of economics leads me to think if the stock market crashes, the housing market will crash harder.
HypersonicHero
People who do that are the dumbest motherfuckers I've heard of.
Perfextion1620
Why?
HypersonicHero
Well from the get go you are gonna lose money on closing costs and on fixing shit from your lack of inspections. Then you are paying premium
HypersonicHero
S on your investment every month from taxes and the like. Even if you rent it out you have other issues. It's a stupid fucking idea
Syrpynt
Moving "with the wave" is how people go under the wave when it crashes. The wave is moving to real estate. But the supply won't let it crash
Syrpynt
So instead we are going to simply create an unfixable class divide. The movement is bringing back serfdom in a modern way.
Perfextion1620
I don't have faith in a large drop because of the lack of supply. It takes years to get more supply into the market and we move slow
Neorago
Or people with a lot of money. I moved during the pandemic. Finding a house to buy was a nightmare, but selling my old house was a breeze-
Neorago
-ended up selling to a guy wanting to buy a house for his daughter since she was moving for college. All cash offer, inspection waived.
strongseth
This was my word for word thought. It would be creepy if it wasn't sad.
aCoolBreezeOnAHotSummerDay
Is there strong evidence? If this is a bubble it doesn’t feel like the 2008 one bc I don’t hear about people using homes as their ATM.
Xakharhl
Or people who had a ton of equity in their house from another state, cashed out and are just paying cash for a home somewhere else.
SirenBrick
On average, 2/3 of Americans are home owners, the average home owner will own ~4 homes at a time and rent 3 of them for profit. yay.
imissmaplesyrup
Your math is impossible
FloodingWaters
It's happening way too often, in too many places and has been going on for too long for that explanation to be the whole story.
TheS4ndm4n
That my plan. My home increased more in value than my yearly income before tax...
MelfsAcidArrow
That is specifically my parents story, but there were definitely many corporate competitors. It’s why my parents wrote a nice letter
Zatchery
I disagree with you about that, but that's ok. We can have different opinions.
PartyAtYourMomsHouse
People are moving in droves from California to Texas for this exact reason. They sell there house in cali and move here for low cost housing
PartyAtYourMomsHouse
I see it a lot working in construction. Seems like all remodels lately are for someone who moved from cali to get a 'cheap' house.
ImHidingFromMyKids
Happening in Las Vegas too, hubby and I got lucky we found a house, we close tomorrow.
Evergrey
For marked up, dilapidated rentals, or airbnb style vacation rentals. Zillow, Black Rock, a ton of out of state "investors."
lightfoot2
Yep. Slumlords are back!
gunnexx
In Ireland we prefer the term vulture funds
StarwarsGuy
Is there anyway to report one? I believe my soon to be ex landlord could easily qualify as one.
Sporkeldee
County health department/metro housing authority.
Sporkeldee
Probably won’t get them shut down, but will get revoked for section 8 which might prompt a clean
xj4low
Yep. Personally, I wouldn't consider a house without an independent inspector. My area is known for foundation and termite damage.
Nykidemus
In some places the only way to get an inspection is to get the inspector to come with you when you view the open house. For like 400 bucks
Nykidemus
Per house you visit. It's insane.
rhubarbarian
We did a full inspection (which caught a lot!), but we're still finding new stuff all the time. Couldn't imagine waiving it.
IReplyWithOldMemes
Try buying a house with a VA loan that requires inspections. I'll never get a seller to accept my offer.
NotSchmidt
Sorry about your VA loan situation. As some advice, try having your agent dig hard into withheld listings. Making the argument of having /1
NotSchmidt
A friendly buyer, and no inconvenience of opens/ a full weekend of showings is how I've got a few VAs through in this tough market. GL! /2
IEatAllTheFluffyAnimals
Fucking OpenDoor is buying them then marking them up 10-15% and putting them right back on the market. Shit should be illegal
IMakeMyOwnSweat
Seems like a shitty idea once you factor in closing costs and taxes on both buying and selling
IEatAllTheFluffyAnimals
When you have your own legal team, and you don't have two agents to deal with, etc, it's lower cost to just buy it cash outright.
craycray606
Zillow Group was doing this too—they stopped and sold their entire portfolio in 1 quarter! Imagine that. Sheesh!! It’s boom time!
Kiares
Yeah they really need to get companies out of SFH ownership.
Userlivewire
Cities love it. That’s the problem.
Nykidemus
yup, jacking up housing costs increases tax revenues.
Userlivewire
Plus it’s one less property they have to worry about maintaining if it goes into foreclosure someday.
DanteLidge
SFH?
IMakeMyOwnSweat
Shit fucked hugely
Mxlespxles
Sweaty Fart Holes
naught101
Why only single family homes?
BlacknCrimsonRose
Not only. Just starting with.
mardukkur
Because who else owns apartment buildings?
foximillian
The tenant union, hopefully. Landlords are unnecessary middlemen
Provos
Also foreign investors.
Powderhunter75
Kiares
Wasn't aware that was happening. Agreed!
RebelSkull
One of the big uptick was when China started causing a ruckus about wealth. They started divesting and everyone is getting on board.
Rovylern
It's the new way to launder money or stash it offshore (from other countries' points of view) for tax avoidance.
KillingTlme
Plus buying an american home is a great investment.
Lulabel73
I don’t think a high priced house is a good investment for a corporation. There are plenty of ordinary people with more money.
TurdHurdler
Corporate money laundering?
Lulabel73
Maybe but there are plenty of other business to do that through. Houses have a lot of maintenance and costs etc
kjb72
Slumlords don't do maintenance.
Lulabel73
That’s an issue for the government. In my country there are rules about maintenance.
IMakeMyOwnSweat
I don't think there are though
Lulabel73
Sure there are. Someone only needs $100 more than you.
IMakeMyOwnSweat
With more money than corporations?
Lulabel73
Yes that’s exactly what I’m saying?
mardukkur
Doubtful, institutional buyers are less than 3% of the single family home buyers and concentrated in a few major cities.
IMakeMyOwnSweat
no sauce
mardukkur
"Institutional investors make up less than 2% of the single-family U.S. home rental industry."
IMakeMyOwnSweat
What kind of shitty analysis is this, they call people with 10 homes "mom and pop"
mardukkur
It's the kind where they differentiate institutional investors like everyone is pretending are driving up housing prices from landlords.
mardukkur
https://www.loopnet.com/learn/investors-raise-their-bets-on-the-growing-single-family-home-rental-market/1583394708/
Largerabbit
It's boomers downsizing as their retirement plan. Two biggest generations in history are competing for the same houses
mardukkur
Partly yeah. Mostly it’s the new boomers (millennials) and 20 years of under building. Not enough homes and tons of new buyers.
SirenBrick
So many empty rentals that small incorporation's refuse to sell for anything less than the "lost" profit from not renting it for years.
mardukkur
A small subset of the under 3% of single family houses owned by institutional investors isn't a relevant drag on housing supply.
somtin
Yes it's mostly Private Equity groups like Black Stone and KKR who have nowhere else to park money with low bond yields. So right now they 1
somtin
are artificially putting a bubble in housing, because if they stop buying then they will cause their investment value to drop. Sadly these 2
Perfextion1620
They aren't buying to price support existing inventory, they're buying because they see opportunity and the current math says it's smart 1/
somtin
Current math says that the only thing bolstering the assets is reduced capacity. They stop buying, assets will drop severely.
Perfextion1620
Do you think they're buying now because they expect the price to drop? Or do you find it more plausible they looked at the supply/demand 1/
somtin
companies are also causing rent to skyrocket, and also refuse to do any upkeep to the properties that law doesn't require.When this bubble 3
somtin
bursts, we are going to have entire swaths of the country with dilapidated homes without people in them. Got to love Capitalism...
mls68
So you’re saying there’s a chance?!
cryborg
Skipping inspections is not a good idea.
InkyBlinkyPinkyAndClyde
Depends. Last time I was in the market, it was skip inspections or lose every offer you put in. If you wanted a house, you had to skip /1
InkyBlinkyPinkyAndClyde
the inspection. As long as you budget extra money for it, no problem. The one we bought needed work anyway, so we weren't surprised. /2
Alientongue
Corporations skip it because they dont care they are just renting it out or reselling it for an extra 100k
Walfas
The people buying these houses don't care whether or not it's a liveable house, they just want the property so they can park their money.
EvilBilbo
You aren't skipping inspection, you're waiving your right to terminate the contract because of something found during inspection. 1/?
EvilBilbo
You can (and will) still do an inspection, but lets say the foundation is ultra fucked and you don't want to buy it. You can still term 2/?
EvilBilbo
the contract, but you'll be out your earnest money. We bought this summer, our earnest money was 20k. We could have termed if something 3/4
EvilBilbo
was really, really awful but there honestly isn't much outside of major structural problems that would be worth it at that point.
SobchaksWorldOfPain
Why inspect? In my Los Angeles 'hood, every 80-90 YO house is a tear-down. Empty-nester selling before '24. LA was once affordable.
Imalwaysready
That's our neighborhood. Seems like at least 75% of the purchases are tear downs (60+ y.o. homes). If scrape-off is the plan, why inspect?
Lulabel73
It depends. If you’re going to strip the house and do a big renovation there’s really not much point.
Imalwaysready
It is for the seller.
ryankellyc112787
Great advice if you want to continue renting.
ChaosandKindness
Inspection was a non- negotiable when we were looking a few months ago. I didn't care how many houses we had to pass on.
Imalwaysready
You did it right. Probably made it harder, but still did it right.
ieatpiecesofshiplikeyouforbreakfast
I skipped inspection on my house, brand new construction. Horrible idea! Shoulda spent the 500 for the inspection…
Superflash4
What happened?
ieatpiecesofshiplikeyouforbreakfast
Roof is now leaking after 1 year/ no flashing electric out in about 1/3 of the house, drainage issues/ flooring that bows up during summer
ieatpiecesofshiplikeyouforbreakfast
Warranty up after 1 year
ageek3000
If it's new construction, isn't the builder on the hook for problems still?
Trashpandafan
2
francescajackson2000
Depends on country, some go bankrupt/stop trading so they don't have to pay.
ieatpiecesofshiplikeyouforbreakfast
Not always
SJBSavageInk
You honestly literally can't get a house right now unless you do though.
dschuma
I did
SJBSavageInk
Was it undesirable?
dschuma
No way. It's an amazing house, needed some repairs but I knew what I was in for. There's struggles, but I'll have a house to leave the kids
kickrole
If you have to, get your own inspection and find a realtor who can spot possible problems before you buy.
WellWellWellLookWhoItIs
You always get your own inspection anyway. The point here is people are buying as-is without doing that.
Imalwaysready
Great plan for a normal real estate market. In hot markets that just gets you kicked to the curb in favor of a faster, less hassle closer.
kickrole
Not all inspections will find ever problem. A friend of mine found rotted wood when they decided to pull their carpet up.
REDS1X
Yup. bought a house, had an inspection done. later found a 20x25 foot section of dryrot and termites. was over a year ago
REDS1X
still working on the bitch. I'm never going to financially recover from this.
netflixandwine
Inspections cannot damage the property in any way so hard to find some issues that end up being the biggest/most costly
FritoParadise
It is if you don't plan on living in it and are trying to save money while renting it out to people that don't know any better
mrthewhitee
Home buying has become speculative. Inspections are irrelevant now if you aren't planning on living there but just holding for investment
C110PR
These are companies making those offers, not people. They can afford to make repairs. They're doing it to fuck the housing market.
davidthemanlovely
I was under contract on 2 homes that I backed out of after inspection before finally finding a place, never skip inspection
Eclaircissement
Flippers don't care. Structural and plumbing is the next buyers problem.
wadenelson1
Take a home inspector along with you on the walk-thru. $200 will save you thousands.
MacklinBurtMacklinFBI
I skipped inspection but also know what the hell I’m doing/ looking for spent close to an hour an each home we seriously considered.
VoodooChili
You can still get an inspection, and walk if the repairs are too much for you. AS IS still allows inspections, just can't ask for repairs.
lindabelchersfirstcousin
Inspections are a thing of the past now. You literally have to forego home inspections to be considered by the seller now.
wookietiddy
Depends on the local market. Depends on the house. Depends on other offers. Depends on lots of things. We didn't waive and got the house
iceph03nix
that must be a regional thing, because I haven't seen anything like that around here.
dschuma
Northern Ohio here, same
ImHidingFromMyKids
I just bought a house, close tomorrow, definitely had an inspection done
o0scottyboy0o
Good lord. Don't forego that!
schizznatt
In some markets you don’t have much of a choice if you want to be successful. Sometimes you can manage to get a pre-inspection in.
o0scottyboy0o
I understand that. It's just foolish to buy in that market if that's the case, imho.
schizznatt
But if that’s where you live…
dschuma
This is bull, I can't believe how stupid so many upvoters are. They are a law in many places and are still VERY common otherwise. I got one
lindabelchersfirstcousin
I’ve been trying to buy a house since 2019 in CO and I’ve given up now.
dschuma
Look somewhere else if you're able. I had to cast a wider net, but it was so worth it
schizznatt
In some markets, it’s just not possible. You will never have a successful offer if you insist on an inspection.
lindabelchersfirstcousin
I had to forgo inspections, increase hard cash by $10k, 2bids I put in, I had to let the sellers live there for 2mos after closing.
lindabelchersfirstcousin
A lot of sellers needed the money from the sale to purchase their next residence meaning they get to stay rent free for 2mos after closing.
lindabelchersfirstcousin
And fucking, Zillow.
bunnie93
Inspections are law here where I live.
WhisperingJeffGoldblum
And where is that? Inspectionville?
tracxinn
It’s a sellers market. So buyers will forego inspections to make it work. Smart buyers however, would/will never skip the steps.
schizznatt
You just have to factor it in the budget. In some places you will literally never have a successful offer if you insist on an inspection.
schizznatt
It’s just the way it is in certain markets (like houses in DC if you want to be in a good school district)
InkyBlinkyPinkyAndClyde
We did after losing more than a dozen bidding wars. We budgeted extra money because we expected problems. Made sense for us, because it /1
InkyBlinkyPinkyAndClyde
was either that, or no house at all. If you've never lived in a real estate market like that, consider yourself lucky. /2
DarkZalgo
I didn't. And would've been fucked if I did. The seller had to give me $4K cash because of the shit found in our inspection.
invisibulman
Inspections find shit to justify their fee. Doesn't matter if anything is actually wrong. It's worth about $5k to the seller to skip it.
DarkZalgo
Dude what. That's literally exactly what their job is. To provide a report on everything they can find, whether anything is wrong or not.
DarkZalgo
I'm not really sure why you would expect anything else from an inspector.
MeatPopsicleMultiPass
I offered to buy a house and after inspection dude said needed an entirely new roof. Foundation issues, too. I fucked off quick. Best $600.
schizznatt
In some places you will never be able to buy a house if you insist on an inspection. It’s too competitive and everyone else waives them.
WhisperingJeffGoldblum
Same. I got $2K.
IMakeMyOwnSweat
You have to offer 20 over asking to even get accepted these days so 4k is nothing by comparison
DarkZalgo
An additional $20K on a 30 year loan doesn't mean a whole lot, a check for $4K on the spot does.
IMakeMyOwnSweat
It does mean a whole lot though and people are taking cash offers over fianancers
IamMelonLordeYaYaYa
I mean, they’re required for a VA loan, so fuck me I guess
stlouiscardinalsfan7
VA, usda, and fha.
yourmomscheese
Home inspections aren’t - well and septic if applicable and termite depending on where are
stlouiscardinalsfan7
Which right now most sellers don’t want to consider any of those. Conventional loan with cash to cover appraisal gap is what sellers want.
stlouiscardinalsfan7
I was recently a seller and buyer. Went through a lot of this junk.