First Time Second Home Buyer - Advice

[irvinebullhousing]

There is very little motivation for sellers to sell now, especially in prime areas:

1) Transactional costs are very high. Highly likely gain > 500k, thus portion has to be taxed and that amount sent to tax cannot be applied to next home. (Lost equity). Selling/buying costs.
2) Covid and significantly less relocations; thus homeowners are moving less. Also, mentally people are very grateful to own a home during pandemic and those who don?t are more desperate.
3) Interest rates are very low + high demand; incremental cost to pay additional 100k-200k are fairly low (350-700/month) compared to waiting around and waiting for more price hikes.
4) California tax rate is locked. Changing home now is likely to double one?s tax liability
5) Dumbest thing one can do is selling your home and rent waiting for a crash. More people understand/realize this now.

 

[Irvinehomeseeker]

There is very little motivation for sellers to sell now, especially in prime areas:

1) Transactional costs are very high. Highly likely gain > 500k, thus portion has to be taxed and that amount sent to tax cannot be applied to next home. (Lost equity). Selling/buying costs.
2) Covid and significantly less relocations; thus homeowners are moving less. Also, mentally people are very grateful to own a home during pandemic and those who don?t are more desperate.
3) Interest rates are very low + high demand; incremental cost to pay additional 100k-200k are fairly low (350-700/month) compared to waiting around and waiting for more price hikes.
4) California tax rate is locked. Changing home now is likely to double one?s tax liability
5) Dumbest thing one can do is selling your home and rent waiting for a crash. More people understand/realize this now.

For incremental cost - Consider property Taxes as well, which would be going up in addition to the loan amount!

 

[sleepy5136]

Isn?t there a prop that passed in ca where ppl age 55+ can carry over their old property taxes to the new place? But I guess ppl that age don?t need to upgrade and aren't willing to pay a premium in the current market.

 

[anteaterscientist]

Isn?t there a prop that passed in ca where ppl age 55+ can carry over their old property taxes to the new place? But I guess ppl that age don?t need to upgrade and pay the high premium

Prop 19

 

[fatduck]

Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?

They probably figure they may as well get your offer in case escrow falls through

 

[usctrojancpa]

Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?

They probably figure they may as well get your offer in case escrow falls through

I never change the status of a listing until the deposit is in escrow. With my experience, the majority of cancellations happen before the deposit is made.

 

[anteaterscientist]

Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?

They probably figure they may as well get your offer in case escrow falls through

I never change the status of a listing until the deposit is in escrow. With my experience, the majority of cancellations happen before the deposit is made.

Is the seller obligated or out of courtesy to tell the visiting buyer that "escrow is going to open in the morning, but feel free to check out the place"?

I'm aware of instances with people still visiting properties with full knowledge that it has opened escrow. However, I stepped onto the property with no knowledge.

 

[usctrojancpa]

Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?

They probably figure they may as well get your offer in case escrow falls through

I never change the status of a listing until the deposit is in escrow. With my experience, the majority of cancellations happen before the deposit is made.

Is the seller obligated or out of courtesy to tell the visiting buyer that "escrow is going to open in the morning, but feel free to check out the place"?

I'm aware of instances with people still visiting properties with full knowledge that it has opened escrow. However, I stepped onto the property with no knowledge.

There's no rule that the listing agent inform a buyer or buyer's agent voluntarily that they accepted an offer and are opening escrow.  However, if a buyer or buyer's agent asks if the home is still available to make an offer the listing should tell them that they have an accepted offer but that the deposit has not been received yet (there's no rule that they have to but it's common professional courtesy to do so). 

 

[sgip]

If an offer is sent and accompanied with a check from the Buyer for the Earnest Money Deposit, if I'm not mistaken isn't there a limited time the Selling Realtor has to cash the check into their brokers account?

 

[usctrojancpa]

If an offer is sent and accompanied with a check from the Buyer for the Earnest Money Deposit, if I'm not mistaken isn't there a limited time the Selling Realtor has to cash the check into their brokers account?

There's no more checks, 98% of all earnest money deposits now are make via wire transfer by the buyer.  Maybe some old school reatlors get checks from their buyers but I've only seen a copy of those EMD checks a few times in about 15 years.

 

[sgip]

True, as very, very few people today even know how to use a checking account. Checks are the fax machines of finance. Nice for a time. Obsolete in a few years.

That said, what would a realtor have to do with an offer that also included a check or money order attached physically to the contract?

 

[fatduck]

pretty soon you'll just send your deposit to $escrow on cash app

 

[akula1488]

pretty soon you'll just send your deposit to $escrow on cash app

Then crypto

 

[momopi]

@_@;;  I still write checks.  And gift silver coins to kids.

 

[sgip]

@momopi - hand most 10-18 year olds a book of matches and see how few know how to operate one. The lack of knowledge about basic items is astounding.

Not to hijack this thread too far, but Crypto adoption by lenders is really not very widespread. Most lenders if they see crypto assets/use in a transaction want a documentation trail from start to finish - cash in bank (years ago...) to purchase to storage (how many statements?)  to liquidation to conversion back to cash. Blegh. This will change within the decade but at a very slow pace compared to other disruptive ideas we've seen.

My .02c

 

[anteaterscientist]

Update 5.5: Requested to see in person a property owned by Z1ll0w. I hope they don't stay silent if they are just looking for backup offers. (insert crying face emoji)
This afternoon, have additional places to look at but still traumatized from last experience.