Real Estate Market

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The house across the street from me sold for $975,000 a few months ago. The lady that bought it is now stuck with about $100-150K in repairs from the previous owner not doing anything. The house was never really on the market, the previous owner died and left it to his girlfriend. She had an agent say there were offers on the house and took the highest one.
 
Coming from 12% or 200k over, 3-5% over seems like a cool off to me.

The cooling happens already, but this can also be seasonal as SFH tends to be in market in the summer. Families want to move when the school year is off.

The rental market has cooled quite a bit for both the renters (looking for deals) and landlords (being picky about tenants because of eviction ban fear).

I am going to have a deep discussion with my family to see what to do when next year Prop 19 starts and how it will impact our tax base, and whether it is time to sell or inherit them early.
Depends on the local area. Homes were selling for asking price 6 months ago, now it is well over asking.

Silicon Valley does seem to have cooled compared to some of the suburban areas.
 
The house across the street from me sold for $975,000 a few months ago. The lady that bought it is now stuck with about $100-150K in repairs from the previous owner not doing anything. The house was never really on the market, the previous owner died and left it to his girlfriend. She had an agent say there were offers on the house and took the highest one.
Uh, that lady stuck herself with the home repairs.

Wut? All of the certified home inspectors fled Kalifornia for Texas?

Yeah, I know: home listings are crazy, with selling prices well above the initial listing price and oftentimes a buyer wants the house so badly THEY OFFER TO FOREGO A THOROUGH HOME INSPECTION. Or the seller sells it AS IS, with no inspection allowed. And people agree to it!

I’ve seen it happen in this neck of the woods.

And while you can fix the roof, plumbing, HVAC, and electrical, you can’t fix STUPID.
 
Uh, that lady stuck herself with the home repairs.

Wut? All of the certified home inspectors fled Kalifornia for Texas?

Yeah, I know: home listings are crazy, with selling prices well above the initial listing price and oftentimes a buyer wants the house so badly THEY OFFER TO FOREGO A THOROUGH HOME INSPECTION. Or the seller sells it AS IS, with no inspection allowed. And people agree to it!

I’ve seen it happen in this neck of the woods.

And while you can fix the roof, plumbing, HVAC, and electrical, you can’t fix STUPID.
The inspector did catch some of the issues. However when they brought it up at closing the seller offered nothing. Crazy market for sure. I had some people talk to me about the house while I was out front working on my truck. I saw them after this all happened and they were glad they dodged a bullet. All the houses in the neighborhood were built in the late 60s/early 70s so issues are to be expected. We have actually corrected more than a few real estate agents trying to say the houses were newer than they were. My grandparents bought the house in August of 1968 and we had a realtor try to tell us it was built in 1981.
 
Uh, that lady stuck herself with the home repairs.

Wut? All of the certified home inspectors fled Kalifornia for Texas?

Yeah, I know: home listings are crazy, with selling prices well above the initial listing price and oftentimes a buyer wants the house so badly THEY OFFER TO FOREGO A THOROUGH HOME INSPECTION. Or the seller sells it AS IS, with no inspection allowed. And people agree to it!

I’ve seen it happen in this neck of the woods.

And while you can fix the roof, plumbing, HVAC, and electrical, you can’t fix STUPID.

I hate to go way OT, but the only way I got my previous and current home was because I didn't play the home inspection game.

If I can see the basement walls & floor, the majority of the electrical, plumbing, roof, yard grading, etc.. I'll go through it myself.

When selling my last two homes, they buyers and prospective buyers all played the home inspection game. All of them find something different, most of it being trivial and could be seen by anyone with even a marginal aptitude for the stuff. Then the counter offer games begin based on the "inspection". What a joke most of it is.

If I was buying a $1.5M mansion would I have it inspected? Probably. That's above my pay grade anyway.
 
The inspector did catch some of the issues. However when they brought it up at closing the seller offered nothing. Crazy market for sure. I had some people talk to me about the house while I was out front working on my truck. I saw them after this all happened and they were glad they dodged a bullet. All the houses in the neighborhood were built in the late 60s/early 70s so issues are to be expected. We have actually corrected more than a few real estate agents trying to say the houses were newer than they were. My grandparents bought the house in August of 1968 and we had a realtor try to tell us it was built in 1981.
There is no “certified” inspector in California. Anyone can call themselves one. It’s a scam. If you know anything about construction, inspect it yourself.
 
I feel like we're going to see a period of urban flight which will tend to reduce demand. With all the recent chaos in urban centers, combined with a huge surge of remote white collar working, people will start to realize that they can do their jobs from say, rural Nevada instead of San Francisco.

As examples of this flexibility, all of our company's recent hires have been geographically dispersed around the US. Also, our neighbor's son who moved to LA to take a job this spring just moved back home as it's way cheaper to live with mom and dad than to be locked down in a studio appartment that costs over 2K a month.
And corporations will realize that they can employ folks outside of the major centers for less. I know of several firms that are reexamining their comp structure in light of this. May be some win/win scenarios will come out of this; companies will pay less for professional/technical work done outside of major population centers and younger workers will be able to actually afford decent living situations without seeing all of their salary go to rent or a mortgage, e.g. Silicon valley.
 
I'm amazed at that I see in far west-suburban Chicago. Despite the ridiculous property taxes, houses in my subdivision are hard to find, and when they do hit the market, they're not available for long.
We have a home in the NW burbs of Chicago that we have not been able to sell for years. Two acres, waterfront, can park thirty cars on the long driveway. Purchased it while I was stationed in Illinois in 2004- still not appraising at what we bought it for. My guess in Northern Illinois a few areas are recovering, but on a macro scale no. Hard to have a rise in real estate prices when an area in losing population- Illinois is often listed as the top state to lose population. Add in high taxes, huge unfunded pensions. Illinois might be the ugliest place to own a home in the USA. If we could just break even we would sell in a heartbeat.
 
Even though the interest rates are at historical lows, I was expecting slowdown due to high unemployment, loss of income and people not moving as much due to hiring freeze, less demand, etc. ... Wrong! Not the first time I've been wrong!!!

Same with the market, I can't figure out Dow 30K. I was expecting a revisit of 18K and then some ... I would be better off if I do the opposite of what I normally do ... i.e. sell when I'm buying and buy when I'm selling. lol

I mean people are NOT spending money. Why are the market and real estate so hot?
I think the people who are not impacted as much (typically richer people), are saving more and buying stocks and real estate and driving the market.

This is not a complaint but may explain it:
From Wikipedia:
"A September 2017 study by the Federal Reserve reported that the top 1% owned 38.5% of the country's wealth in 2016."
the market is going up because money is almost free now. most of the market is driven by electronic trading these days. the small guy is just along for the ride. when you can borrow short term money for almost free from the gov , use it to make more money.
 
I hate to go way OT, but the only way I got my previous and current home was because I didn't play the home inspection game.

If I can see the basement walls & floor, the majority of the electrical, plumbing, roof, yard grading, etc.. I'll go through it myself.

When selling my last two homes, they buyers and prospective buyers all played the home inspection game. All of them find something different, most of it being trivial and could be seen by anyone with even a marginal aptitude for the stuff. Then the counter offer games begin based on the "inspection". What a joke most of it is.

If I was buying a $1.5M mansion would I have it inspected? Probably. That's above my pay grade anyway.
Well, for most people home inspection isn’t “a game.”

And having to pony up an additional $100,000 to $150,000 in repairs after you bought at a premium doesn’t leave anyone laughing at your “joke.”
 
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There is no “certified” inspector in California. Anyone can call themselves one. It’s a scam. If you know anything about construction, inspect it yourself.
It’s not a sellers’ market there, it’s obvious a sucker’s market.
 
Well, for most people home inspection isn’t “a game.”

And having to pony up an additional $100,000 to $150,000 in repairs after you bought at a premium doesn’t leave anyone laughing at your “joke.”

All I can figure is your experiences are vastly different than mine in regards this. It doesn't make either one of us right or wrong.

I can see value in a good, legitimate home inspection in some circumstances for sure.
 
I hate to go way OT, but the only way I got my previous and current home was because I didn't play the home inspection game.

If I can see the basement walls & floor, the majority of the electrical, plumbing, roof, yard grading, etc.. I'll go through it myself.

When selling my last two homes, they buyers and prospective buyers all played the home inspection game. All of them find something different, most of it being trivial and could be seen by anyone with even a marginal aptitude for the stuff. Then the counter offer games begin based on the "inspection". What a joke most of it is.

If I was buying a $1.5M mansion would I have it inspected? Probably. That's above my pay grade anyway.
Do you know how home inspector works?

They are really there to check some obvious things and work with the appraisers, so the bank can give you a loan. They work for the bank and carry insurance just in case, so the bank can sell the loan and if something goes wrong then they have someone to sue for.

They are not general contractors giving out repair quotes.
 
Do you know how home inspector works?

They are really there to check some obvious things and work with the appraisers, so the bank can give you a loan. They work for the bank and carry insurance just in case, so the bank can sell the loan and if something goes wrong then they have someone to sue for.

To my knowledge only FHA loans require an inspection.

Conventional loans do not.
 
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