bostonbubble.com

Optimus4 · Guest

This is more of a rant than anything else.

I lost a house recently to someone who bid over $20K over asking with 3% down. My bid was close to asking with 35% down.

3%! What the heck. Guidelines are that downpayments should be 20% but it seems like no one especially in this state follows them.

Optimus4 · Guest

Oops I meant 25% down not 35%

Guest · Posted: Tue Mar 22, 2016 11:44 am GMT Post subject:

If I am the seller, why would I care about how much % the buyer put down as downpayment? Of course you should lose the bid when your bid is lower. The reality is when housing price going upward, the lending industry will start to loose up on loan standard, 3% down loan will get charged with higher interest rate, meaning more potential profit for the loaner.
This is 2006 housing bubble re_playing again. The irresponsible get awarded, the responsible get punished. Too bad as average joe, you and i have no vote to stop bail out when shit hits the fan back in 2008, as well as any similar acts in the future.

Optimus4 · Guest

Seller has the right to accept the largest offer they get. I would to if I was in their position. The problem is the banks and mortgage companies who approve these loans.

admin · Posted: Tue Mar 22, 2016 12:37 pm GMT Post subject:

Guest · Posted: Tue Mar 22, 2016 2:21 pm GMT Post subject:

A large down payment (and 25% isn't that large) doesn't mean shit when financing is loose and sellers know that 3% loan is going to be approved. For fuck's sake, we're back to the instant approval days, with that Rocket app, or whatever the fuck it's called. Get ready to pay into another bailout in a few years.

Richthofen · Joined: 02 Apr 2014 Posts: 69

I guess if we're all reading a website called bostonbubble.com and we're still trying to buy anyways, competing with buyers using multiple bids, does that mean we're insane? I mean, we know there's a housing bubble by definition of this website but we're all still trying to buy a house. Jeez I need therapy, this housing bubble has made me certifiable.

Guest · Posted: Thu Mar 24, 2016 6:07 pm GMT Post subject:

Just because there's a bubble it doesn't mean that every single house is overvalued. I nearly closed on a place in Belmont at $39K under ask in January. And then I found another $50K of work at inspection and decided, fuck it. Soon after, some putz closed on that house $10K over my winning bid. He can have fun fixing the water issues, missing vapor barrier, and DIY wiring.

Guest · Posted: Thu Mar 24, 2016 10:04 pm GMT Post subject:

I think we just don't know which stage of the bubble we stand in. And some of us do really want to own a house some time in our lives.

A bubble also might not end up bursted, but deflated. And all the calculation and reasoning you gave yourself to wait for better price, might end up being destroyed by some QE acts.

Everyone just don't want to buy in on the top, and a lot of us really don't mind buying in half way to the top. That emotion makes you want to jump the fence and buy the house and get it over with. And after you did jump, you are just praying you are not the biggest fool that hold the bag last.

This is not crazy act, just simple consumer behaviors.