Have prices the last month jumped the shark?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I grew up near both of those 600 K range homes--- those are total bargains for what they are. Mature landscaping, great schools, great communities. I'll be curious to see what they go for because where I live now you can't find a SFH for that pirce.

This makes it extra hard - if they being listed low, a buyer just has no idea what to bid for the house if appraisal is an issue. If I'm waiving appraisal and offering over 100K over ask, that's a huge chunk of cash.

Okay, so this is an additional question I have. I am the (naively?) optimistic buyer trying to buy this summer without all cash. We have enough cash to put 30% down on a purchase price of 1 million, in a normal market (averaging numbers for simplicity). But let's say I actually buy a house that appraises at 900, but sells for 1 million. Is my 300k in cash at all helpful in this situation? Can I use some of it to make up the difference between appraisal and actual price? I'm not a first time homebuyer, but this is a new situation for me.

Yes, you can fill some of the gap with the cash on hand, assuming you want to stay at 20% down for the mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I grew up near both of those 600 K range homes--- those are total bargains for what they are. Mature landscaping, great schools, great communities. I'll be curious to see what they go for because where I live now you can't find a SFH for that pirce.

This makes it extra hard - if they being listed low, a buyer just has no idea what to bid for the house if appraisal is an issue. If I'm waiving appraisal and offering over 100K over ask, that's a huge chunk of cash.

Okay, so this is an additional question I have. I am the (naively?) optimistic buyer trying to buy this summer without all cash. We have enough cash to put 30% down on a purchase price of 1 million, in a normal market (averaging numbers for simplicity). But let's say I actually buy a house that appraises at 900, but sells for 1 million. Is my 300k in cash at all helpful in this situation? Can I use some of it to make up the difference between appraisal and actual price? I'm not a first time homebuyer, but this is a new situation for me.

If I were you, I would only offer 200K down and hold on to an extra 100K. Then if it appraises at the K price, or not significantly over, just put the rest of 100K into the downpayment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

Rent-backs are limited to 60 days.

Unless the buyer is paying cash. A friend just sold his house and asked for a 3 month rent back. He got it, plus 75k over, plus they waived the rent-back fees.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

Rent-backs are limited to 60 days.

Unless the buyer is paying cash. A friend just sold his house and asked for a 3 month rent back. He got it, plus 75k over, plus they waived the rent-back fees.

This buyer isn't paying cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

Rent-backs are limited to 60 days.

Unless the buyer is paying cash. A friend just sold his house and asked for a 3 month rent back. He got it, plus 75k over, plus they waived the rent-back fees.

This buyer isn't paying cash.

This person is selling a house and asking for 3 months rent back. They may be presuming they get an all-cash offer. However, they are then turning around and trying to buy a new house using a conventional loan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

We're renting, [trying to be] first time buyers so just continuing with our month-to-month apartment in the city. I keep mentally giving up and then stalking every listing every week. Assuming will be in this boat for awhile. We've lost a handful of offers so far.

Yeah, we can't do that- I mean, we could but it would be a total nightmare. Two toddlers and a third on the way.

Yep, we have a three year old and an infant. It's pretty rough.

(Congratulations on the newbie!)

Thank you! and all my sympathies with your month to month situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

We're renting, [trying to be] first time buyers so just continuing with our month-to-month apartment in the city. I keep mentally giving up and then stalking every listing every week. Assuming will be in this boat for awhile. We've lost a handful of offers so far.

Yeah, we can't do that- I mean, we could but it would be a total nightmare. Two toddlers and a third on the way.

Yep, we have a three year old and an infant. It's pretty rough.

(Congratulations on the newbie!)

Thank you! and all my sympathies with your month to month situation.

Hoping for some luck for us both!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

We're renting, [trying to be] first time buyers so just continuing with our month-to-month apartment in the city. I keep mentally giving up and then stalking every listing every week. Assuming will be in this boat for awhile. We've lost a handful of offers so far.

Yeah, we can't do that- I mean, we could but it would be a total nightmare. Two toddlers and a third on the way.

Yep, we have a three year old and an infant. It's pretty rough.

(Congratulations on the newbie!)

Thank you! and all my sympathies with your month to month situation.

Hoping for some luck for us both!

Actually, now that I think about it, maybe my family can buy your house and we can come up with some off book rentback until you buy yours! Ha, if only.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

Rent-backs are limited to 60 days.

Unless the buyer is paying cash. A friend just sold his house and asked for a 3 month rent back. He got it, plus 75k over, plus they waived the rent-back fees.

This buyer isn't paying cash.

This person is selling a house and asking for 3 months rent back. They may be presuming they get an all-cash offer. However, they are then turning around and trying to buy a new house using a conventional loan.

ahhh got it

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

We make plans, God laughs. Good luck. Hope you have a lot of cash - wish we did!

So you just, what, gave up? Rented? I mean, I know we are going to have a hard time. We are building in a 3 month rent back when we sell our current house, and plan to just keep trying until we find a place.

We're renting, [trying to be] first time buyers so just continuing with our month-to-month apartment in the city. I keep mentally giving up and then stalking every listing every week. Assuming will be in this boat for awhile. We've lost a handful of offers so far.

Yeah, we can't do that- I mean, we could but it would be a total nightmare. Two toddlers and a third on the way.

Yep, we have a three year old and an infant. It's pretty rough.

(Congratulations on the newbie!)

Thank you! and all my sympathies with your month to month situation.

Hoping for some luck for us both!

Actually, now that I think about it, maybe my family can buy your house and we can come up with some off book rentback until you buy yours! Ha, if only.

I'm in! Let's do it. Although, I have to caveat that we bought our little house before having kids- it's too small, which is why we're moving. Might honestly be smaller than your apartment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

A house down the street from me apparently went for all cash. It was listed at $800k. Probably went for more. This is in Fairfax.

Yes. But the question is if appraisals are matching the rise in sale prices?

If it is all cash, does the appraisal even matter?

No. And if you waive the appraisal, you're on the hook for the difference. I don't see how the appraisals can keep up when the prices have jumped so much in just a couple of months.

You're not on the hook for the difference. You're on the hook for the difference OR your EMD, because you can still choose to walk away and lose your EMD. At least they can't seize your assets if you can't pay the difference for the appraisal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

I'd also like to know this. We are planning on buying next month and can't do cash.

A house down the street from me apparently went for all cash. It was listed at $800k. Probably went for more. This is in Fairfax.

Yes. But the question is if appraisals are matching the rise in sale prices?

If it is all cash, does the appraisal even matter?

No. And if you waive the appraisal, you're on the hook for the difference. I don't see how the appraisals can keep up when the prices have jumped so much in just a couple of months.

You're not on the hook for the difference. You're on the hook for the difference OR your EMD, because you can still choose to walk away and lose your EMD. At least they can't seize your assets if you can't pay the difference for the appraisal.

Good point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I grew up near both of those 600 K range homes--- those are total bargains for what they are. Mature landscaping, great schools, great communities. I'll be curious to see what they go for because where I live now you can't find a SFH for that pirce.

This makes it extra hard - if they being listed low, a buyer just has no idea what to bid for the house if appraisal is an issue. If I'm waiving appraisal and offering over 100K over ask, that's a huge chunk of cash.

Okay, so this is an additional question I have. I am the (naively?) optimistic buyer trying to buy this summer without all cash. We have enough cash to put 30% down on a purchase price of 1 million, in a normal market (averaging numbers for simplicity). But let's say I actually buy a house that appraises at 900, but sells for 1 million. Is my 300k in cash at all helpful in this situation? Can I use some of it to make up the difference between appraisal and actual price? I'm not a first time homebuyer, but this is a new situation for me.

If I were you, I would only offer 200K down and hold on to an extra 100K. Then if it appraises at the K price, or not significantly over, just put the rest of 100K into the downpayment.

Why couldn’t you offer $300K down in this situation? Why hold the $100K back? This wasn’t my post, but in this situation, if the $1M sales price house only appraises for $900K and a down payment of $300K is offered, the buyer doesn’t have to come up with any other funds even though the house didn’t appraise at the sales price, right? IOW, the $300K down payment is enough to cover the appraisal shortfall, right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I grew up near both of those 600 K range homes--- those are total bargains for what they are. Mature landscaping, great schools, great communities. I'll be curious to see what they go for because where I live now you can't find a SFH for that pirce.

This makes it extra hard - if they being listed low, a buyer just has no idea what to bid for the house if appraisal is an issue. If I'm waiving appraisal and offering over 100K over ask, that's a huge chunk of cash.

Okay, so this is an additional question I have. I am the (naively?) optimistic buyer trying to buy this summer without all cash. We have enough cash to put 30% down on a purchase price of 1 million, in a normal market (averaging numbers for simplicity). But let's say I actually buy a house that appraises at 900, but sells for 1 million. Is my 300k in cash at all helpful in this situation? Can I use some of it to make up the difference between appraisal and actual price? I'm not a first time homebuyer, but this is a new situation for me.

If I were you, I would only offer 200K down and hold on to an extra 100K. Then if it appraises at the K price, or not significantly over, just put the rest of 100K into the downpayment.

Why couldn’t you offer $300K down in this situation? Why hold the $100K back? This wasn’t my post, but in this situation, if the $1M sales price house only appraises for $900K and a down payment of $300K is offered, the buyer doesn’t have to come up with any other funds even though the house didn’t appraise at the sales price, right? IOW, the $300K down payment is enough to cover the appraisal shortfall, right?

I'm the poster asking this additional question. I don't understand what you mean, but I'm going to read it out loud to my mortgage broker and see if it's a thing We'd love to have a lower monthly payment (daycare poor).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I grew up near both of those 600 K range homes--- those are total bargains for what they are. Mature landscaping, great schools, great communities. I'll be curious to see what they go for because where I live now you can't find a SFH for that pirce.

This makes it extra hard - if they being listed low, a buyer just has no idea what to bid for the house if appraisal is an issue. If I'm waiving appraisal and offering over 100K over ask, that's a huge chunk of cash.

Okay, so this is an additional question I have. I am the (naively?) optimistic buyer trying to buy this summer without all cash. We have enough cash to put 30% down on a purchase price of 1 million, in a normal market (averaging numbers for simplicity). But let's say I actually buy a house that appraises at 900, but sells for 1 million. Is my 300k in cash at all helpful in this situation? Can I use some of it to make up the difference between appraisal and actual price? I'm not a first time homebuyer, but this is a new situation for me.

If I were you, I would only offer 200K down and hold on to an extra 100K. Then if it appraises at the K price, or not significantly over, just put the rest of 100K into the downpayment.

Why couldn’t you offer $300K down in this situation? Why hold the $100K back? This wasn’t my post, but in this situation, if the $1M sales price house only appraises for $900K and a down payment of $300K is offered, the buyer doesn’t have to come up with any other funds even though the house didn’t appraise at the sales price, right? IOW, the $300K down payment is enough to cover the appraisal shortfall, right?

I'm the poster asking this additional question. I don't understand what you mean, but I'm going to read it out loud to my mortgage broker and see if it's a thing We'd love to have a lower monthly payment (daycare poor).

I am not an expert, but I don't think so? If you are offering 300k on a 1M house, you are financing 700k, the difference between the price and the down payment. If the house appraises at 900K, the lender will only cover the difference between the appraisal price (900) and the down payment (300). In other words, you get a loan of 600k instead of 700k, so you have to come up with the additional 100k.