Anyone else who will likely never be a home owner?

[Anonymous]

Anonymous wrote:Can't an actual cash offer close almost immediately? A buyer planning to use a mortgage who waives the financing contingency will still need time to actually get the mortgage. That seems like a big difference.

No, all cash offers can't close immediately. Even rich people are unlikely to have millions of dollars just sitting in a checking account. They will ordinarily need to sell stocks or pull money out of a money market account, so that will take at least a few days to a week.

The reality is that even true "all cash" offers will usually have a 2-4 week close.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can't an actual cash offer close almost immediately? A buyer planning to use a mortgage who waives the financing contingency will still need time to actually get the mortgage. That seems like a big difference.

No, all cash offers can't close immediately. Even rich people are unlikely to have millions of dollars just sitting in a checking account. They will ordinarily need to sell stocks or pull money out of a money market account, so that will take at least a few days to a week.

The reality is that even true "all cash" offers will usually have a 2-4 week close.

+1 Plus the title company needs 2-3 weeks. It's rare to see a closing in under 2 weeks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can't an actual cash offer close almost immediately? A buyer planning to use a mortgage who waives the financing contingency will still need time to actually get the mortgage. That seems like a big difference.

No, all cash offers can't close immediately. Even rich people are unlikely to have millions of dollars just sitting in a checking account. They will ordinarily need to sell stocks or pull money out of a money market account, so that will take at least a few days to a week.

The reality is that even true "all cash" offers will usually have a 2-4 week close.

+1 Plus the title company needs 2-3 weeks. It's rare to see a closing in under 2 weeks.

Are we pretending that it isn’t an enormous advantage in hot markets and it’s something everyone can do?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can't an actual cash offer close almost immediately? A buyer planning to use a mortgage who waives the financing contingency will still need time to actually get the mortgage. That seems like a big difference.

No, all cash offers can't close immediately. Even rich people are unlikely to have millions of dollars just sitting in a checking account. They will ordinarily need to sell stocks or pull money out of a money market account, so that will take at least a few days to a week.

The reality is that even true "all cash" offers will usually have a 2-4 week close.

+1 Plus the title company needs 2-3 weeks. It's rare to see a closing in under 2 weeks.

Are we pretending that it isn’t an enormous advantage in hot markets and it’s something everyone can do?

No one said that. If you read the posts that you responded to, then you'll see that people are simply saying that it usually take the title company 2 weeks to close even if the buyer purchases with cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can't an actual cash offer close almost immediately? A buyer planning to use a mortgage who waives the financing contingency will still need time to actually get the mortgage. That seems like a big difference.

No, all cash offers can't close immediately. Even rich people are unlikely to have millions of dollars just sitting in a checking account. They will ordinarily need to sell stocks or pull money out of a money market account, so that will take at least a few days to a week.

The reality is that even true "all cash" offers will usually have a 2-4 week close.

+1 Plus the title company needs 2-3 weeks. It's rare to see a closing in under 2 weeks.

Are we pretending that it isn’t an enormous advantage in hot markets and it’s something everyone can do?

No one said that. If you read the posts that you responded to, then you'll see that people are simply saying that it usually take the title company 2 weeks to close even if the buyer purchases with cash.

Which all came from a conversation about all cash offers winning contracts and preventing regular loans and buyers from taking advantage of the low interest rates. It seems like a couple finance people here are really desperate to pretend the pandemic real estate boom didn’t primarily benefit the wealthiest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think one way to make home-ownership feasible is to really hustle and save even starting in your teens and 20's.

My hair stylist (now in her 40's) bought a condo at age 18 with her own money that she had saved from waitressing and working in hair salons. She literally saved every penny.

She came from a very poor immigrant family. (Her mom was a house-cleaner, and her dad had a disability.)

So I still think it can be done. She worked so hard in her teens, but it paid off! She's been able to trade up and now lives in a beautiful townhouse in a desirable neighborhood in Moco.

Good for her, but you understand that the whole point of this thread is that a hairstylist today could not afford that condo, right? Have you not followed the news? Whatever someone could afford in 2020, they can now afford about half of that in 2022. There’s been a completely unprecedented spike in housings costs that no one could have predicted or planned for.

It is amazing that this point continues to be lost. This same debate happens around college costs. I think people fundamentally cannot understand how much costs for certain things have gone up drastically (health care, housing, education) while for others have gone done (lots of consumer goods). It seems that some people respond by assuming that what you could get must be available to to others through SOME program or way of life, and that anyone who says otherwise is a complainer and lazy or stupid.

Actually, no. We bought our home in 2005 for about 530k. 18 years later it’s worth about 680k. That’s not an extraordinary major increase. There are still houses near us for $530k.

Most households wouldn't get approved for $500k+ at their income. That's still expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think one way to make home-ownership feasible is to really hustle and save even starting in your teens and 20's.

My hair stylist (now in her 40's) bought a condo at age 18 with her own money that she had saved from waitressing and working in hair salons. She literally saved every penny.

She came from a very poor immigrant family. (Her mom was a house-cleaner, and her dad had a disability.)

So I still think it can be done. She worked so hard in her teens, but it paid off! She's been able to trade up and now lives in a beautiful townhouse in a desirable neighborhood in Moco.

Good for her, but you understand that the whole point of this thread is that a hairstylist today could not afford that condo, right? Have you not followed the news? Whatever someone could afford in 2020, they can now afford about half of that in 2022. There’s been a completely unprecedented spike in housings costs that no one could have predicted or planned for.

It is amazing that this point continues to be lost. This same debate happens around college costs. I think people fundamentally cannot understand how much costs for certain things have gone up drastically (health care, housing, education) while for others have gone done (lots of consumer goods). It seems that some people respond by assuming that what you could get must be available to to others through SOME program or way of life, and that anyone who says otherwise is a complainer and lazy or stupid.

Actually, no. We bought our home in 2005 for about 530k. 18 years later it’s worth about 680k. That’s not an extraordinary major increase. There are still houses near us for $530k.

Most households wouldn't get approved for $500k+ at their income. That's still expensive.

I love how the person you responded to tried to defend being out of touch with prices by making the most out of touch with prices comment ever.

"Houses are only half a million dollars near me, that should be plenty affordable for a hairdresser!"

So let's see, $530K at 7.7%, throw in PMI because what service industry worker has $200K in cash for a down payment, you're looking at around $4,000 a month. No lender is going to touch you paying more than 40% of gross to your mortgage so that's a minimum of $120,000 a year income to qualify. But sure, I bet every hairdresser out there is clearing 6 figures...

[Anonymous]

Sheesh

[Anonymous]

Me as long as I live in DC. Maybe I might be able to by a condo after my parents pass away. But my home buying backup plan is basically taking my inheritance and buying one in my hometown when I desire to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can't an actual cash offer close almost immediately? A buyer planning to use a mortgage who waives the financing contingency will still need time to actually get the mortgage. That seems like a big difference.

No, all cash offers can't close immediately. Even rich people are unlikely to have millions of dollars just sitting in a checking account. They will ordinarily need to sell stocks or pull money out of a money market account, so that will take at least a few days to a week.

The reality is that even true "all cash" offers will usually have a 2-4 week close.

+1 Plus the title company needs 2-3 weeks. It's rare to see a closing in under 2 weeks.

The title company can do a title search to the platting of the subdivision in 2 days. If the seller has a loan, they can get the payoff from the lender in a few days at most. Unless the buyer wants a home inspection, property survey, or appraisal, the property can close in a week.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think one way to make home-ownership feasible is to really hustle and save even starting in your teens and 20's.

My hair stylist (now in her 40's) bought a condo at age 18 with her own money that she had saved from waitressing and working in hair salons. She literally saved every penny.

She came from a very poor immigrant family. (Her mom was a house-cleaner, and her dad had a disability.)

So I still think it can be done. She worked so hard in her teens, but it paid off! She's been able to trade up and now lives in a beautiful townhouse in a desirable neighborhood in Moco.

Good for her, but you understand that the whole point of this thread is that a hairstylist today could not afford that condo, right? Have you not followed the news? Whatever someone could afford in 2020, they can now afford about half of that in 2022. There’s been a completely unprecedented spike in housings costs that no one could have predicted or planned for.

It is amazing that this point continues to be lost. This same debate happens around college costs. I think people fundamentally cannot understand how much costs for certain things have gone up drastically (health care, housing, education) while for others have gone done (lots of consumer goods). It seems that some people respond by assuming that what you could get must be available to to others through SOME program or way of life, and that anyone who says otherwise is a complainer and lazy or stupid.

Actually, no. We bought our home in 2005 for about 530k. 18 years later it’s worth about 680k. That’s not an extraordinary major increase. There are still houses near us for $530k.

Most households wouldn't get approved for $500k+ at their income. That's still expensive.

I love how the person you responded to tried to defend being out of touch with prices by making the most out of touch with prices comment ever.

"Houses are only half a million dollars near me, that should be plenty affordable for a hairdresser!"

So let's see, $530K at 7.7%, throw in PMI because what service industry worker has $200K in cash for a down payment, you're looking at around $4,000 a month. No lender is going to touch you paying more than 40% of gross to your mortgage so that's a minimum of $120,000 a year income to qualify. But sure, I bet every hairdresser out there is clearing 6 figures...

If you chose a low income profession, your expectation will be that you will not have the same life of someone who chooses a higher paying profession.

[Anonymous]

Home prices only shot up starting in 2020

[Anonymous]

Anonymous wrote:Mid thirties couple here with no way forward regarding buying a home. I feel sad knowing I won’t be able to have a home to call my own and decorate and build a family in.

Anyone else in this boat?

You can buy, you just don’t want to buy where you can afford. For example, I bet you’ve ruled out all of PG county. I wonder why that is….?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think one way to make home-ownership feasible is to really hustle and save even starting in your teens and 20's.

My hair stylist (now in her 40's) bought a condo at age 18 with her own money that she had saved from waitressing and working in hair salons. She literally saved every penny.

She came from a very poor immigrant family. (Her mom was a house-cleaner, and her dad had a disability.)

So I still think it can be done. She worked so hard in her teens, but it paid off! She's been able to trade up and now lives in a beautiful townhouse in a desirable neighborhood in Moco.

Good for her, but you understand that the whole point of this thread is that a hairstylist today could not afford that condo, right? Have you not followed the news? Whatever someone could afford in 2020, they can now afford about half of that in 2022. There’s been a completely unprecedented spike in housings costs that no one could have predicted or planned for.

It is amazing that this point continues to be lost. This same debate happens around college costs. I think people fundamentally cannot understand how much costs for certain things have gone up drastically (health care, housing, education) while for others have gone done (lots of consumer goods). It seems that some people respond by assuming that what you could get must be available to to others through SOME program or way of life, and that anyone who says otherwise is a complainer and lazy or stupid.

Actually, no. We bought our home in 2005 for about 530k. 18 years later it’s worth about 680k. That’s not an extraordinary major increase. There are still houses near us for $530k.

Most households wouldn't get approved for $500k+ at their income. That's still expensive.

I love how the person you responded to tried to defend being out of touch with prices by making the most out of touch with prices comment ever.

"Houses are only half a million dollars near me, that should be plenty affordable for a hairdresser!"

So let's see, $530K at 7.7%, throw in PMI because what service industry worker has $200K in cash for a down payment, you're looking at around $4,000 a month. No lender is going to touch you paying more than 40% of gross to your mortgage so that's a minimum of $120,000 a year income to qualify. But sure, I bet every hairdresser out there is clearing 6 figures...

No but he or she is likely making at least 60k and probably closer to 80k

Presumably people buying a home in an HCOL area are married or a couple.

A hairdresser could easily find a 300k condo if he or she is single.

[Anonymous]

I bought my house for $380k in 2000. It wasn’t in a bad neighborhood. It seemed, at the time, quite expensive. But my spouse and I hardly had to scrimp and save to afford it.

If houses were going up with inflation it would be now worth about $650k. Instead comparable houses are selling for $1.2 million! I feel sorry for folks trying to buy houses now.