Author Topic: First Time Second Home Buyer - Advice  (Read 9363 times)

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Offline anteaterscientist

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Re: First Time Second Home Buyer - Advice
« Reply #15 on: June 07, 2021, 08:52:43 PM »
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

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Re: First Time Second Home Buyer - Advice
« Reply #16 on: June 07, 2021, 09:04:22 PM »
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.
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Re: First Time Second Home Buyer - Advice
« Reply #17 on: June 08, 2021, 12:07:26 AM »
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.

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Offline anteaterscientist

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Re: First Time Second Home Buyer - Advice
« Reply #18 on: June 08, 2021, 08:11:12 PM »
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.


That sounds reasonable. I looked at the recent sales for surrounding homes and nothing was over 10%. This is for a 2 bed / 2 bath condo.

Offline USCTrojanCPA

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Re: First Time Second Home Buyer - Advice
« Reply #19 on: June 09, 2021, 11:27:53 PM »
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.


That sounds reasonable. I looked at the recent sales for surrounding homes and nothing was over 10%. This is for a 2 bed / 2 bath condo.

This is because agents are beginning to move up listing prices closer to their true market value as prices have moved up significantly in the past 6 months.
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Offline Agent Joe

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Re: First Time Second Home Buyer - Advice
« Reply #20 on: June 12, 2021, 11:52:55 PM »
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
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Offline sleepy5136

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Re: First Time Second Home Buyer - Advice
« Reply #21 on: June 13, 2021, 12:06:29 PM »
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
I could be wrong but some people pay cash to win the bidding wars and will eventually get a mortgage after closing escrow.

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Re: First Time Second Home Buyer - Advice
« Reply #22 on: June 13, 2021, 01:00:02 PM »
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
I could be wrong but some people pay cash to win the bidding wars and will eventually get a mortgage after closing escrow.

Yup, I have a buyer just like that...they can pull cash via their brokerage account (low margin interest) and then will turn around and do a delayed purchase loan on the home (has to be done within 90 days of the purchase to not be considered a cash-out refi).
Martin Mania, CPA
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Re: First Time Second Home Buyer - Advice
« Reply #23 on: June 13, 2021, 05:58:37 PM »
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
I could be wrong but some people pay cash to win the bidding wars and will eventually get a mortgage after closing escrow.

Yup, I have a buyer just like that...they can pull cash via their brokerage account (low margin interest) and then will turn around and do a delayed purchase loan on the home (has to be done within 90 days of the purchase to not be considered a cash-out refi).

Delayed financing is always a cash out refinance. It is clear in the Fannie and Freddie guidelines that cash out rules and adjustments apply. The 90 day rule is for tax deduction purposes called "acquisition debt".

Offline anteaterscientist

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Re: First Time Second Home Buyer - Advice
« Reply #24 on: June 28, 2021, 06:18:03 PM »
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.

As I'm a first time second home buyer, I don't think lenders are giving loans for second homes or investment properties may have different rates? I don't know this property's category either because I'm buying a second home to house a relative rent free in one room and rent out the other room to a student or working professional. My primary home will be nearby the second home. Also gotta figure out the tax forms or implications.

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Re: First Time Second Home Buyer - Advice
« Reply #25 on: June 29, 2021, 07:25:29 AM »
A true second home is for your "Exclusive part time use and enjoyment" and is never to be rented. Pricing for second homes are equal to primary residences. Some lenders have "mileage restrictions" - as in Current House A must be at least 50 miles away from New Second Home B.

Investment Properties - which your purchase as self described is - will have interest rates at least a half percent or higher than a primary residence home loan and require in some cases more than 25% down.

My .02c
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Offline Cares

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Re: First Time Second Home Buyer - Advice
« Reply #26 on: June 29, 2021, 09:14:47 PM »
I'm seeing some lenders have LLPAs for second homes as well. Not as heavy as investment properties though.

Offline anteaterscientist

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Re: First Time Second Home Buyer - Advice
« Reply #27 on: July 06, 2021, 11:36:45 AM »
Update!

A unit I was eyeing came back on the market because the previous buyer's loan didn't get approved. The buyer offered 2% above listing.

The seller is entertaining our cash offer at the list price since no offers have been submitted since being back in the market. However, looking at similar previous sales that closed within 2 months, this unit list price is 5% higher. The list price seems a bit high to me.

What to do! I don't want to feel rushed nor am I in a rush.

Offline anteaterscientist

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Re: First Time Second Home Buyer - Advice
« Reply #28 on: July 06, 2021, 11:43:34 AM »
Update 2!

Also the purchase depends on the ability to modify a bathroom, maybe city permit is involved.

How to research the feasibility of a modification before deciding the purchase a place.

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Re: First Time Second Home Buyer - Advice
« Reply #29 on: July 06, 2021, 12:03:59 PM »
If you have to move any kind of plumbing fixture/piping, you'll need a permit. Why not bring in a plumbing contractor to get a quote?
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