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Brian C
Joined: 13 Feb 2009
Posts: 98
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 Posted: Tue May 12, 2009 11:09 am GMT Post subject: |
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| balor123 wrote: | Ok... what's the location?  |
Inside the 128 belt. |
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melonrightcoast
Joined: 22 Feb 2009
Posts: 236
Location: metrowest
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| Posted: Wed May 13, 2009 2:35 am GMT Post subject: What have the MLS listings this spring taught us so far? |
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1)Many sellers are still pining for sky high 2005 prices and listing their homes accordingly. The overpriced homes sit, or they have already been taken off the market and are on the rental market at wildly inflated prices.
2)Homes that have been purchased within the last three years are selling at a 10 - 15% loss.
3)Homes that are updated, well-maintained, and PRICED AGGRESSIVELY are selling.
4)There seem to be fewer "greater fools" (aka buyers that purchase at 2005/2006 prices) this spring (so far). I hope the trend continues.
Sorry, I don't have any specific listings to substantiate my observations... that would reveal our "target town"  We're moving into another, slightly bigger, rental next month. We have flexible lease terms, and maybe we'll find a house to buy next fall/winter. If not, we'll keep our money and keep on renting.
_________________
melonrightcoast ... are you? |
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kicking_cans
Joined: 25 Apr 2009
Posts: 6
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| Posted: Wed May 13, 2009 3:43 am GMT Post subject: |
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[quote="Brian C"]Update: Im a homeowner! (well somewhat)
I will not disclose the location of the property but will give out the final numbers.
Originally priced 370k
Dropped to 340k after 30days
First offer 307k, their counter 330k
Second offer 310k, their counter 320k
Third offer 312k...they accepted!!
The house is assessed at 325k.
As for the work needed, its alot of sweat but im glad to be related to plumbers, electricians, carpenters who work for free beer and pizza.
Will answer any questions.[/quote]
How does the 312k compare to other properties that closed in the past 2 months?
Also, can you walk us through the home inspection/closing process as it occurs? Thanks! |
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balor123
Joined: 08 Mar 2008
Posts: 1204
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| Posted: Wed May 13, 2009 4:54 am GMT Post subject: |
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| Someone I know talked a guy down from like $650k to $430k in early 2008 in Wellesley. Sellers know that if they don't ask for a lot they won't get it. They probably won't get a lot if they do but I think they expect they won't anyway. Even an ugly guy can talk to 100 girls at a party and score a hot one. If you want to buy now, then you have to be willing to seriously lowball a lot of people. You might get slapped a few times and the person you end up buying from may slam the door on you on the way out but is it worth $200k? |
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Brian C
Joined: 13 Feb 2009
Posts: 98
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| Posted: Thu May 14, 2009 12:33 am GMT Post subject: |
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| kicking_cans wrote: |
How does the 312k compare to other properties that closed in the past 2 months?
Also, can you walk us through the home inspection/closing process as it occurs? Thanks! |
This area holds its value. A property slightly larger but updated sold for $445k last month. Found out through my agent, that the property was originally listed as a FSBO for $400k last fall.
What I can tell you, the sellers realtor did the shitty job marketing the home. All the pics on the MLS listing only showed its negatives so when I viewed the property I was surprised how it was a "repaint, refinish, reface" type of house.
As Ive stated in previous posts, my financing is solid. Because my credit score is 780, I got a 30yr fixed for 4.75%. Closing costs is around $4000 including appraisal and attorney.
Home inspection end of this week, will give you a update because I know they are going to find something. |
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JCK
Joined: 15 Feb 2007
Posts: 559
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| Posted: Thu May 14, 2009 2:23 pm GMT Post subject: |
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| You did well on those closing costs. Did you buy title insurance (for yourself, I know you have to buy it for the mortgage company..)? |
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Brian C
Joined: 13 Feb 2009
Posts: 98
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| Posted: Fri May 15, 2009 4:31 pm GMT Post subject: |
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| JCK wrote: | | You did well on those closing costs. Did you buy title insurance (for yourself, I know you have to buy it for the mortgage company..)? |
Actually my closing costs are alot less because that $4000 included my escrow. Did buy title v because my attorney demanded it.
Update: Home Inspection
Had Tiger Home Inspection come to the property today and he spent 3.5 hrs looking everything over. He found alot of issues that I missed and these problems are big (plumbing, roof, garage issues, termites!). My agent said we might need to start over with negotiations. Having a few contactors come to the property tomorrow to get estimates so I can send them back to the owners. Really didn't want this transaction to move this way but the sellers didn't really maintain the house right and that reflects on the price of the property.
I think its going to work out but I know im getting this property less than the agreed $312k price. |
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JCK
Joined: 15 Feb 2007
Posts: 559
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| Posted: Fri May 15, 2009 4:36 pm GMT Post subject: |
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Eeeck.
Just make sure you know the extent of what you're getting yourself into, both in terms of $$$, and in terms of personal headaches.
You have every right at this point to back out, so don't get caught thinking otherwise. |
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balor123
Joined: 08 Mar 2008
Posts: 1204
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| Posted: Fri May 15, 2009 11:03 pm GMT Post subject: |
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| Make them an offer for price of land - price of demolition. |
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Brian C
Joined: 13 Feb 2009
Posts: 98
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| Posted: Sun May 17, 2009 3:35 am GMT Post subject: |
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| balor123 wrote: | | Make them an offer for price of land - price of demolition. |
The way things are going, we might have to. Had some estimates on repairing all the items and it was around $20k (contractor pricing). Not everything had to be done right away but we are going back to the sellers with another offer.
More details later as the develop |
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Brian C
Joined: 13 Feb 2009
Posts: 98
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| Posted: Fri May 22, 2009 1:58 am GMT Post subject: |
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Update: We submitted an offer for $290k based on the 20k worth of work. I asked to extend signing the P&S so I could have my guys come into the home, and the sellers agreed. I thought the home inspector was pretty harsh but im sure they need to protect themselves.
Had another set of repairmen come into the house to get some estimates and I feel a little bit better. Its now down to $5-6k worth of work which we are planning on going back to the sellers to take care of before buying. This would allow us to start the renovations and not deal with this stuff.
While this deal is still happening im still looking at whats coming on the market. This spring was truly a BUST for buyers. I was expecting some quality stuff (move-in ready) in my price range and it never happened. |
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Renting in Mass
Joined: 26 Jun 2008
Posts: 381
Location: In a house I bought in December 2011
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| Posted: Fri May 22, 2009 3:25 pm GMT Post subject: |
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| Thanks for the updates Brian C. Keep 'em coming! It's helpful to hear details from someone in the middle of the process in the current market. |
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JCK
Joined: 15 Feb 2007
Posts: 559
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| Posted: Fri May 22, 2009 3:36 pm GMT Post subject: |
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I agree with Brian. I think most of the move in ready places are overpriced in the market.
I hope you're getting a good deal. I think you're wise to have the seller take care of some of the problems, because that way they bear the risk of any cost overruns, should the problems/damage be more extensive than they appear right now. |
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RandomWalker
Joined: 23 May 2009
Posts: 4
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| Posted: Sat May 23, 2009 7:10 pm GMT Post subject: |
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Great discussion, thanks for sharing.
Do you have any insight into the seller psychology? Are they retiring, been there a long time, little incentive to do updates? (sounds that way). Certainly the 370->340 drop signals weakness and motivation.
Termites, roof, plumbing issues sound big..I'd have been out of there! |
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Brian C
Joined: 13 Feb 2009
Posts: 98
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| Posted: Sun May 24, 2009 12:59 am GMT Post subject: |
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| RandomWalker wrote: | Great discussion, thanks for sharing.
Do you have any insight into the seller psychology? Are they retiring, been there a long time, little incentive to do updates? (sounds that way). Certainly the 370->340 drop signals weakness and motivation.
Termites, roof, plumbing issues sound big..I'd have been out of there! |
They are moving into assisted living. The sellers have owned the house since 1956. Alot of the stuff is original (like the kitchen) but you benefit with some of the period details that you don't find anymore in newer homes. For example, this house has two built-in china closets, all original gumwood trim, and mint subway tile in the bathroom.
One thing that I didn't like is that the sellers agent is related to the homeowners. Usually that is disclosed in the listing, just like the termite damage. But she got real with them, the homeowners wanted $400k for the house because the house across the street sold for $375k in 2002.
Here's some tips on house hunting...get familiar now with a general contractor. Get a plumber, roofer, electrician, etc all lined up before the inspection. After the inspection, I was rushing around trying to get these people into the house before the P&S expired. Also take the home inspection a basis to get a second option. Because these "major" things came up but now are only 5-6k worth of work (that should be fixed by the homeowner). |
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