What the **** am I missing.....?
Sep 13th 2012, 11:49 pm
#16
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Re: What the **** am I missing.....?
Housing has started to turn upward in the bay area so the seller can be more picky. Do you have a pre-approved mortgage (required in a rising market)? What type of mortgage and the amount down are you pursuing?
When I sold my townhouse about 6 years ago, I got two offers and the only difference was that one family required a 5% loan (even though they were pre-approved, the loan can still fall through) and the other had at least 20% down so with all other factors being the same, so the offer from the family with the large down payment was accepted to guarantee the sell.
It is crazy to waive appraisal since the bank will only loan a certain percent based on their appraisal so if the bank appraisal is $100,000 less than the selling price, you'd need an extra $100,000 to purchase the home. I've never heard of anyone waiving appraisal.
When I sold my townhouse about 6 years ago, I got two offers and the only difference was that one family required a 5% loan (even though they were pre-approved, the loan can still fall through) and the other had at least 20% down so with all other factors being the same, so the offer from the family with the large down payment was accepted to guarantee the sell.
It is crazy to waive appraisal since the bank will only loan a certain percent based on their appraisal so if the bank appraisal is $100,000 less than the selling price, you'd need an extra $100,000 to purchase the home. I've never heard of anyone waiving appraisal.
And you are right, it's crazy but true. I wish I could show you some counter offers that I hve with me.....$ xx but buyer will waive appraisal...absolutely insane if you ask me.
It basically is just greed from seller because they want more money but also want to insulate for buyer madness (bidding up beyond what the seller things that property is valued at).
Here is an example. We saw a house the other day, listed at 580K. Our agent (good friends with selling agent) called up and asked about it..the seller's agent said that if the price goes beyond 600 K the seller will ask for appraisal contingency removal. So even before the open house the sller knew their game plan!
Sure enough we offered 599K and the counter was 615K with no appraisal contingency!!...clearly a no deal for us. So our agent called and asked if they would consider 620K with appraisal. the seller agent said actuall we have a 100% cash offer of 620K with appraial contingency and 20% down offer at 615K counter without appraisal contingency....and the seller was going to let the all cash offer go and chose the no appraisal contigency offer. [of course the two offers sellers agent had she did not share the exact amounts but jsut as example].
To clarify "No appraisal contingency" = whatever valuation happens, buyer will still buy!!
Sep 13th 2012, 11:51 pm
#17
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Re: What the **** am I missing.....?
No - I actually mean that they are waiving the right to get out of the contract should the appraisal come in lower than offer price.
Sep 14th 2012, 12:42 am
#18
Lost in BE Cyberspace
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Re: What the **** am I missing.....?
It's just a fact of life really that areas with plenty of well-paid work and other desirable factors will cost more to live in.
Sep 14th 2012, 1:02 am
#19
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Re: What the **** am I missing.....?
The one situation where I might forego an inspection contingency is when a recent inspection and termite report is included in the seller's disclosures. At least then you've got an inspection although I don't think you could sue the inspector if their report turns out to be negligent etc.
Sep 14th 2012, 1:29 am
#20
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Re: What the **** am I missing.....?
The one situation where I might forego an inspection contingency is when a recent inspection and termite report is included in the seller's disclosures. At least then you've got an inspection although I don't think you could sue the inspector if their report turns out to be negligent etc.
Sep 15th 2012, 2:34 pm
#21
Under blue skies
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Sep 15th 2012, 5:17 pm
#22
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Re: What the **** am I missing.....?
I spent around a year looking to buy in SF up until a couple of months ago - the stock was woeful, the returns almost non-existent (was going to buy a small building and rent out one or two units) and anything even remotely sensible had people offering way above the advertised price in the first couple of days on the market.
I realized I was wasting my time and gave up.
I realized I was wasting my time and gave up.
Sep 15th 2012, 5:27 pm
#23
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Re: What the **** am I missing.....?
I spent around a year looking to buy in SF up until a couple of months ago - the stock was woeful, the returns almost non-existent (was going to buy a small building and rent out one or two units) and anything even remotely sensible had people offering way above the advertised price in the first couple of days on the market.
I realized I was wasting my time and gave up.
I realized I was wasting my time and gave up.
http://www.sfgate.com/realestate/art...st-3867301.php
Sep 19th 2012, 6:30 pm
#24
gurt mint nit?
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Re: What the **** am I missing.....?
Don't you find the way of life in the bay area to be rather two dimensional?
Sep 22nd 2012, 4:09 pm
#25
Lost in BE Cyberspace
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Re: What the **** am I missing.....?
Wow, this is the first I've heard of a serious recovery going on in the Bay Area housing market!
It just so happens that my g/f has finally agreed that we should sell the house in Walnut Creek and consolidate for now in my condo in Scottsdale, since she's no longer employed and is getting worried about money. I had assumed the market was bad, and that it would be a long, slow process to sell with lots of heavily-contingent low-ball offers.
Are there any articles you guys have read that confirms the observations of this thread?
My ultimate goal is to have a home there, but much smaller than the one I have now and with much less maintenance ... perhaps a condo.
It just so happens that my g/f has finally agreed that we should sell the house in Walnut Creek and consolidate for now in my condo in Scottsdale, since she's no longer employed and is getting worried about money. I had assumed the market was bad, and that it would be a long, slow process to sell with lots of heavily-contingent low-ball offers.
Are there any articles you guys have read that confirms the observations of this thread?
My ultimate goal is to have a home there, but much smaller than the one I have now and with much less maintenance ... perhaps a condo.
Sep 22nd 2012, 5:50 pm
#26
Septicity
Joined: May 2004
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Re: What the **** am I missing.....?
Interesting article on SF and its reliance on tech and effects on property prices and the city.
http://www.modernluxury.com/san-fran...-one-city-take
http://www.modernluxury.com/san-fran...-one-city-take
Sep 22nd 2012, 5:53 pm
#27
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Re: What the **** am I missing.....?
Another weekend another failure!
So we officially are doing everything in our power year fall short. We now have 5 offers on 5 places and still unsuccessful. 500K, 550K, 580K, 620K and 670K....
This this, we went all in at 670K and were the highest offer but were knocked down because some punk or very rich person offered little less than that but was all cash. I really would love to meet people who have that kinda cash.
So demotivated...!
So we officially are doing everything in our power year fall short. We now have 5 offers on 5 places and still unsuccessful. 500K, 550K, 580K, 620K and 670K....
This this, we went all in at 670K and were the highest offer but were knocked down because some punk or very rich person offered little less than that but was all cash. I really would love to meet people who have that kinda cash.
So demotivated...!
Sep 22nd 2012, 6:57 pm
#28
Boomshacalaca!!
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Re: What the **** am I missing.....?
Another weekend another failure!
So we officially are doing everything in our power year fall short. We now have 5 offers on 5 places and still unsuccessful. 500K, 550K, 580K, 620K and 670K....
This this, we went all in at 670K and were the highest offer but were knocked down because some punk or very rich person offered little less than that but was all cash. I really would love to meet people who have that kinda cash.
So demotivated...!
So we officially are doing everything in our power year fall short. We now have 5 offers on 5 places and still unsuccessful. 500K, 550K, 580K, 620K and 670K....
This this, we went all in at 670K and were the highest offer but were knocked down because some punk or very rich person offered little less than that but was all cash. I really would love to meet people who have that kinda cash.
So demotivated...!
By how much are you loosing out? - as suggested before, have a chat about whether or not somesort of an escalation clause is worth it.
... is it worth pursuing a back/up position? - downside is that you are basically being used as leverage; upside is that you would be in primary position incase the current contract goes tits up.
Appraisal contingencies vary depending of verbiage used. The removal of such can affect other sections and provisions of the contract and subsequent outages. Depending on how it is worded, the removal may be just a waiving a right to terminate due to determined appraised value... but you should double check if you are still protected by financing/loan contingency - (which could also depend on the appraised value). Buyers often will pitch outlandish dollar amount just to secure the house and then hopefully try to renegotiate by threat of terminating and waving the appraisal infront of the seller if there is a problem with the value... removing the appraisal condition one is basically hoping to hold the buyer to the price (which may be further contingent upon the bank approving the loan and its amount, but not always the case)... often a catch-22 circle. Have a chat with your agent/attorney etc to know how provisions and conditions may affect one another and their dates and deadlines if you start to remove them.
Sep 24th 2012, 6:42 pm
#29
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Re: What the **** am I missing.....?
The good properties go fast and get attention since buyers have seen all the remnant crud out there in comparison.
By how much are you loosing out? - as suggested before, have a chat about whether or not somesort of an escalation clause is worth it.
... is it worth pursuing a back/up position? - downside is that you are basically being used as leverage; upside is that you would be in primary position incase the current contract goes tits up.
Appraisal contingencies vary depending of verbiage used. The removal of such can affect other sections and provisions of the contract and subsequent outages. Depending on how it is worded, the removal may be just a waiving a right to terminate due to determined appraised value... but you should double check if you are still protected by financing/loan contingency - (which could also depend on the appraised value). Buyers often will pitch outlandish dollar amount just to secure the house and then hopefully try to renegotiate by threat of terminating and waving the appraisal infront of the seller if there is a problem with the value... removing the appraisal condition one is basically hoping to hold the buyer to the price (which may be further contingent upon the bank approving the loan and its amount, but not always the case)... often a catch-22 circle. Have a chat with your agent/attorney etc to know how provisions and conditions may affect one another and their dates and deadlines if you start to remove them.
By how much are you loosing out? - as suggested before, have a chat about whether or not somesort of an escalation clause is worth it.
... is it worth pursuing a back/up position? - downside is that you are basically being used as leverage; upside is that you would be in primary position incase the current contract goes tits up.
Appraisal contingencies vary depending of verbiage used. The removal of such can affect other sections and provisions of the contract and subsequent outages. Depending on how it is worded, the removal may be just a waiving a right to terminate due to determined appraised value... but you should double check if you are still protected by financing/loan contingency - (which could also depend on the appraised value). Buyers often will pitch outlandish dollar amount just to secure the house and then hopefully try to renegotiate by threat of terminating and waving the appraisal infront of the seller if there is a problem with the value... removing the appraisal condition one is basically hoping to hold the buyer to the price (which may be further contingent upon the bank approving the loan and its amount, but not always the case)... often a catch-22 circle. Have a chat with your agent/attorney etc to know how provisions and conditions may affect one another and their dates and deadlines if you start to remove them.
except for the first offer, all subsequent four offers we were countered and we matched the highest offers. So we were top of the pack.
All four, we lose because 1. others either chose to waive appraisal OR 2. cash offers.
Sep 24th 2012, 7:07 pm
#30
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Re: What the **** am I missing.....?
