Met today in their showroom. Its nice. He wants to stay under jumbo limits ,which I believe is $725K? . I would “break even” at $775K, and sale price would be $800k . I asked for 10% interest for being 2nd lien. This would be plan A.
Plan B We’re doing a lease purchase like mentioned above, but we both want plan A
Update: Looking at rental 1st, then purchase outright in 3-6 months when rates get better. Easier to evict than foreclose is my understanding.
My mortgage guy said rates are trending down but takes a while to thaw to get out to the public
You don’t need a mortgage guy to see that rates are “trending down”, you can just look at a chart:
However, there’s no way to know what will (or won’t) happen in 3-6 months. Just keep that in mind.
Good point
My guy and the market is predicting fed rate cuts 3-6 mo.s out and election year so our bet is lower rates then. Only Q is how it affects home pricing. Wonder if I can hedge that somehow in our contract.
Funny that Zillow is offering 1% down loans here in AZ , so hope he at least qualifies for that!
Rental also avoids RE commissions. (The realtor will still get my other properties)
I dont know that it’s necessarily easier, besides you’d need to foreclose and then evict, rather than just evict.
What happens when property values tank (or spike) 6 months from now? Or are you just pretending that your current conversations about price never happened, and you’ll talk sale price when the time comes?
Update: He’s now “able” to qualify for $780K. No other offers. So now plan A is to execute this part of my listing agreement 1st If Seller wishes to cancel the Listing Agreement before the end of the contract date, Seller agrees to pay Early Cancellation Fee only . Nothing else will be due or owed.
Q: is should I give him a reason? or just say I want to rent. I plan on listing another property with him so he’ll have that too and I’m also buying/closing with him by years end.
I dont think that applies to any leads that have already been generated through the listing. As a one-off you could try just playing stupid, but you still have a lot of ongoing business with him and at some point he will check to see you sold it immediately after cancelling the listing. At best, it’ll be really awkward.
Agree about it being awkward but thought he could get more business from us, so I don’t think it’ll come down to litigation. The exit fee covers his costs
it will be a one-off for sure. We would also wait to close for a couple of months while buyer exits his lease
Definitely you’d probably want to rent right now compared to taking on a new mortgage.
Right now landlords may have their properties on older low-interest loans so they don’t feel pressure to bump rents too much. But as soon as they purchase a new rental unit, they’d have no option but pass on the borrowing costs.
I’m not sure how long this trend will last though. If demand for rentals increases, that can only favor increase in lease payments, especially if landlords are well aware of the comparable cost of ownership. So this gap may narrow pretty soon (hopefully). Especially if at the same time, mortgage rates drop in the coming months after Fed drop rates.
We have a strong list price offer past BINSR. Hopefully will close @ EOM
We bought this month with a 6% mortgage with 1.25 % fees. will pay bulk off with closing funds if all goes well. If not ~$100/day interest 
I did work out a deal with the broker to rebate half the fees but need to keep a token amount in the mortgage so his $12K commission doesn’t get clawed back
Sold the home! at 50K more than we bought it last year 
But commissions/fees ate up all of it :(At least we won’t have a tax bill 
It was a navy retired VADM (thanks military-industrial complex!)
I tried negotiating with the realtor for lower commissions than 5% for 2 more properties that we have at 500K ea. He’s balking at it. I’m considering redfin at 1.5+2.5% or just 990 - About Us
Doesn’t look like the fed is in any hurry
Congrats! That’s a major accomplishment in most regions. That must be a load off your mind.
Thx! Yes the carrying costs were adding up
We did get the home for below market since it needed a lot of renovation. Realtors made about 100K b/t the two sales. No wonder there are class action suits. I’m going with a discount agent for the next listing
. Some days I miss the views, but happy wife…
Let the election season bribing begin! Biden wants to hand out $5k in BidenBucks to enrich real estate agents, er, “help working families”.
President Biden believes housing costs are too high, and significant investments are needed to address the large shortage of affordable homes inherited from his predecessor
Nothing’s his fault
mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years.
provide up to $25,000 in down payment assistance to first-generation homebuyers whose families haven’t benefited from the generational wealth building associated with
white supremacyhomeownership
what’s their “STARTER HOME” $ limit. I mean for Biden it’s probably a million now
Nice. Another superbly well targeted handout. 
I think I actually qualify for this one. I could really use the $25k to help get me started in the US. 
Would it not make more sense to find solution that are not simple handouts from taxpayers? How about capping realtor commissions or at least facilitating competition for realtor services? Shaving 1-2% on commissions would save much more across the board than these handouts, would not be exploitable by people who don’t really need them, and cost the taxpayer nothing.
In California we have Proposition 13 which allows owners to maintain a minimum increase to their property taxes, indefinitely. IIUC the intent was to keep property taxes reasonable as you age and don’t get kicked out of your own house.
My landlord is 80, and his mom bought the property, along with several others a long while ago. They are still benefiting from this as he manages at least 5 properties in the area. My rent is over 4k a month. I looked up the property tax and its around 2k, a YEAR.
I hope they get rid of Prop 13, or at the very least, limit it to 1 primary residence. I see the purpose for that, but not for landlords.
Mentioned in the article: “starter home, defined as homes below the area median home price”
