All Encompassing Mortgage and Real Estate Thread

[TurkeyChew 383]

15 minutes ago, Gil Bang said:

Was your property listed on the MLS?  If not, you only THINK you maxed out what you could have gotten. 

Yes it was. And you are doing the No True Scotsman thing I was talking about.

[jimmyjazz 45055]

I can't remember the last time I sold and bought in Austin without getting my seller's agent to discount their fee as the subsequent buyer's agent.  I think that speaks to the level of risk and effort involved.  Basically, I paid 3% on the sale (plus 3% to the buyer's agent) but then got 1%-2% rebated to me on the new purchase out of their proceeds.  My risk was that I wouldn't find something to buy.  Their risk was minimal, because I did all the buyer legwork anyway.

[Gil Bang 25507]

4 minutes ago, TurkeyChew said:

Yes it was. And you are doing the No True Scotsman thing I was talking about.

How did you get it on the MLS?

[UTPhil2006 3753]

2 minutes ago, jimmyjazz said:

I can't remember the last time I sold and bought in Austin without getting my seller's agent to discount their fee as the subsequent buyer's agent.  I think that speaks to the level of risk and effort involved.  Basically, I paid 3% on the sale (plus 3% to the buyer's agent) but then got 1%-2% rebated to me on the new purchase out of their proceeds.  My risk was that I wouldn't find something to buy.  Their risk was minimal, because I did all the buyer legwork anyway.

That's what we do pretty standard.  1% on the sale (to net higher) and then 3% on the buy (someone else paying)

[TurkeyChew 383]

Just now, Gil Bang said:

How did you get it on the MLS?

The package of software I paid for in the $500 I mentioned in my first post…

[Gil Bang 25507]

Do you mind telling me what that software is called?   That wouldn't happen on my MLS. 

[TurkeyChew 383]

Just now, Gil Bang said:

Do you mind telling me what that software is called?   That wouldn't happen on my MLS. 

Yea I can dig it up when I get home; there are a few that do this. Essentially you pay a flat fee for a portal and you get listed on the MLS with a dummy Realtor name/info, but it’s a shell thing. I’ll dm you later.

[Gil Bang 25507]

Thanks, if you don’t mind, don’t bother with the DM. Just put it up here for discussion

[harpercollins 394]

I did this. It was called Creekview realty. It wasn’t a software, it was just me paying someone $600 to put my FSBO on the mls.

[Neonmoon 38126]

Fannie retired the self-employed P/L and 3 months bank statements thank god. (if you have 2021 tax returns)

[Wulaw Horn 18917]

6 hours ago, Neonmoon said:

Fannie retired the self-employed P/L and 3 months bank statements thank god. (if you have 2021 tax returns)

Thats great news. So aggravating. 

[Esque 135]

On 1/31/2022 at 12:09 PM, Dbeasy said:

I am a tech guy with a real estate license who is heavily in tune with the value propositions of the tech companies trying to change the real estate game, but also the value proposition of realtors.

The answer to your question depends specifically on the situation of the purchase or sale you are anticipating. In some cases, bypassing the realtor world might make sense, or at least engaging it differently under specific financial conditions. If you want to share a scenario we can comment on it. 

This is a mess of a story and hard to relay.  In short, saw a house on a Friday and made an offer Saturday morning.  Offers were due Saturday night.  Later in the morning found out we knew two others who also made an offer on the house.  In the afternoon, we began receiving calls from our respective Buyer's brokers pushing us to increase our offers.  The Seller's agent was sharing other offer details and then falsifying other offers to get everyone to increase their respective offers.  We all spoke in the afternoon and agreed to disclose each other's offers to each other but also agreed we weren't going to undercut each other.  Found out we were second, but were not too far off.  So all three declined to play the game and we just sat at our offers.  Pissed the Seller's agent off and they voiced significant displeasure.  Somehow even though we were the highest bids, another offer won.  Buyers' agents could not explain what happened.  Pretty sure Seller's agent had grown accustomed to squeezing out Buyers and was upset it didn't occur, so miss represented offers.  It is all sort of a mess and Seller's agent already has a local reputation for doing similar things, so while I was frustrated and disappointed, am not surprised.  Pretty sure there's some code of ethics violations on all fronts, but good luck trying to prove it or bother wasting your time on this.  You just move on.

[Dbeasy 14733]

3 minutes ago, Esque said:

This is a mess of a story and hard to relay.  In short, saw a house on a Friday and made an offer Saturday morning.  Offers were due Saturday night.  Later in the morning found out we knew two others who also made an offer on the house.  In the afternoon, we began receiving calls from our respective Buyer's brokers pushing us to increase our offers.  The Seller's agent was sharing other offer details and then falsifying other offers to get everyone to increase their respective offers.  We all spoke in the afternoon and agreed to disclose each other's offers to each other but also agreed we weren't going to undercut each other.  Found out we were second, but were not too far off.  So all three declined to play the game and we just sat at our offers.  Pissed the Seller's agent off and they voiced significant displeasure.  Somehow even though we were the highest bids, another offer won.  Buyers' agents could not explain what happened.  Pretty sure Seller's agent had grown accustomed to squeezing out Buyers and was upset it didn't occur, so miss represented offers.  It is all sort of a mess and Seller's agent already has a local reputation for doing similar things, so while I was frustrated and disappointed, am not surprised.  Pretty sure there's some code of ethics violations on all fronts, but good luck trying to prove it or bother wasting your time on this.  You just move on.

There definitely is a violation by the seller’s agent and if you have proof among the bidders that they lied about the offers you should report them to TREC. Unethical realtors tarnish the industry and should be called out. 

[Neonmoon 38126]

Is there a reason the 10 yr yield just jumped up to 1.90?

edit: nevermind. just saw jobs report

Quote

Stocks mixed following shockingly strong jobs report

From CNN Business' Paul R. La Monica

Stocks opened mixed Friday morning after the US government reported that 467,000 jobs were added last month, much better than expected. Yet the solid numbers may raise fears that the Federal Reserve will have to boost interest rates more rapidly to fight inflation. Bond yields spiked after the jobs report. 

 

Edited February 4, 2022 by Neonmoon

[Wulaw Horn 18917]

2 hours ago, Neonmoon said:

Is there a reason the 10 yr yield just jumped up to 1.90?

edit: nevermind. just saw jobs report

 

Lost 86 basis points (and counting) since I sent out 4 or 5 quotes/prequals. I'm sure nobody will think I'm a worthless shit head liar when I explain that the deal I quoted them 30 hours ago is now 1/4 of a point worse, will they?

In case they did I followed up with all of them and said- re-pricing for the worse- make up your freaking mind.

I expect when I post monday that there will be a 4 as the first number in that chart that I post most Mondays.  If not- damn close to it.

I seem to recall just a month ago talking about how we were trying to hold the line and get people a deal that started with a 2 on a 30.  Now, we are fighting and scrapping to make sure their 15 starts with a 2. 

 

[UTPhil2006 3753]

Yep came here to post as of this morning we hit a 52 week (realistically a 2.5 year) high this AM.

[UTPhil2006 3753]

15 hours ago, Dbeasy said:

There definitely is a violation by the seller’s agent and if you have proof among the bidders that they lied about the offers you should report them to TREC. Unethical realtors tarnish the industry and should be called out. 

Yeah it's worth notating it to TREC and letting them sort it out.  Shady shit.

[Neonmoon 38126]

21 minutes ago, Wulaw Horn said:

Lost 86 basis points (and counting) since I sent out 4 or 5 quotes/prequals. I'm sure nobody will think I'm a worthless shit head liar when I explain that the deal I quoted them 30 hours ago is now 1/4 of a point worse, will they?

In case they did I followed up with all of them and said- re-pricing for the worse- make up your freaking mind.

I expect when I post monday that there will be a 4 as the first number in that chart that I post most Mondays.  If not- damn close to it.

I seem to recall just a month ago talking about how we were trying to hold the line and get people a deal that started with a 2 on a 30.  Now, we are fighting and scrapping to make sure their 15 starts with a 2. 

 

We just started pricing in new second home rates. We get a lot of people here wanting second homes

This is me right now

[UTPhil2006 3753]

1 hour ago, Neonmoon said:

We just started pricing in new second home rates. We get a lot of people here wanting second homes

This is me right now

Check CMG if you have them.

[TurkeyChew 383]

On 2/1/2022 at 5:03 PM, Gil Bang said:

Thanks, if you don’t mind, don’t bother with the DM. Just put it up here for discussion

https://www.houzeo.com/

[Gil Bang 25507]

17 hours ago, Dbeasy said:

There definitely is a violation by the seller’s agent and if you have proof among the bidders that they lied about the offers you should report them to TREC. Unethical realtors tarnish the industry and should be called out. 

 

2 hours ago, UTPhil2006 said:

Yeah it's worth notating it to TREC and letting them sort it out.  Shady shit.

Yeah, no.

If the agent in question is a Realtor, then file a complaint with the Texas Board of Realtors, or his local board if you can find out what that is.

 

Keep in mind, one can be a licensed agent without being a Realtor.    

 

The BOR can and will get to the bottom of these hijinks.    If there's a state legal violation, the BOR will report their findings to the TREC.

[Dbeasy 14733]

21 minutes ago, Gil Bang said:

 

Yeah, no.

If the agent in question is a Realtor, then file a complaint with the Texas Board of Realtors, or his local board if you can find out what that is.

 

Keep in mind, one can be a licensed agent without being a Realtor.    

 

The BOR can and will get to the bottom of these hijinks.    If there's a state legal violation, the BOR will report their findings to the TREC.

Ah yes you are correct. 

[Gil Bang 25507]

I'm actually enrolled in a few classes that will qualify me to sit on the discipline committee of my board.   I can't wait to put the screws to agents that pull this kind of shit. 

[T’Boo Ted Marshall 2718]

Looks like we could be going the construction loan route on a new build.
Met with builder and they haven’t started so they suggested this route for flexibility with upgrades and changes.

This would be a first for me. I’m doing some research but any tips or things to look for would be greatly appreciated.

[Pato del Muerto 51914]

On 2/1/2022 at 4:44 PM, UTPhil2006 said:

That's what we do pretty standard.  1% on the sale (to net higher) and then 3% on the buy (someone else paying)

Probably discussed somewhere here but does your place have realtors and loan officers, or does it allow one person to be both (in the same transaction)?

[Pato del Muerto 51914]

On 2/1/2022 at 4:46 PM, Gil Bang said:

Do you mind telling me what that software is called?   That wouldn't happen on my MLS. 

I’m pretty sure that’s one of the options Redfin offers. 

[Gil Bang 25507]

Looks like we could be going the construction loan route on a new build.
Met with builder and they haven’t started so they suggested this route for flexibility with upgrades and changes.

This would be a first for me. I’m doing some research but any tips or things to look for would be greatly appreciated.

That’s my wheelhouse. How does lender handle disbursements? Vouchers? Draws? Frequency?

[UTPhil2006 3753]

1 hour ago, Pato del Muerto said:

Probably discussed somewhere here but does your place have realtors and loan officers, or does it allow one person to be both (in the same transaction)?

We have both. We have 13 LO’s and then me and Thad run the RE side. Two separate companies. If it’s something we do both on Danna is technically the LO on the deal 

[Beantown Express 2.0 6489]

Was hoping to get some advice/opinions on a new build.  In a nutshell I have been waiting for a lake lot in my neighborhood to go up for sale for a few years.  I live in a "master planned" type community so the lots are owned by big builders (Highland Homes, American Legend, Britton Homes, etc...).  I have been on a list to be able to get one of these lots which are highly sought after.  The lots won't be availble I am guessing until next month at which point I will need to decide if I should buy and build a new home.  My question is about what you experts see as the future of construction costs.  The builder I have to use is Britton Homes and they told me their prices on the homes have gone up $85K in the last 6 months and they expect these to continue to go up over the next year.  I know there are all the shortages in labor and building supplies but is this still going on in the future or are they gouging at this point.  They also said that the only way to lock in the "new build" is to pay a $100K extra in their "buy now, build now" program.  If you pay that extra $100K it locks in the price and you are guaranteed the home.  If you don't do the $100K you have to wait until the framing stage of the house (built as a spec home) but then you risk another customer coming in and offering them the $100K and they will boot me out and my place on their wait list for a lake lot and give that lot to the other customer.    Seems really shitty to me to put that $100K premium on a house just to be allowed to build with them but maybe that is the norm now.

[Gil Bang 25507]

oh, fuck those guys.  

[Beantown Express 2.0 6489]

3 minutes ago, Gil Bang said:

oh, fuck those guys.  

If referring to my post a little more detail on your response please. 

[Dbeasy 14733]

23 minutes ago, Beantown Express 2.0 said:

If referring to my post a little more detail on your response please. 

You are captive to them. It’s a lake front house. The real estate market is still hot. Inflation is still hot. Try to negotiate the $100k down if you can. Then you might as well commit. You’re going to get bent over either way in a seller’s market. 

[Wulaw Horn 18917]

Dude, you are on a years long waiting list in the hottest sellers market we have maybe ever seen in texas. BOHICA man, bohica. 

[Beantown Express 2.0 6489]

4 minutes ago, Wulaw Horn said:

Dude, you are on a years long waiting list in the hottest sellers market we have maybe ever seen in texas. BOHICA man, bohica. 

So, if I don’t need to move, BUT really wanted a lake house is it stupid to be taken advantage of in this market?   The other builders are doing blind bids on their lot premiums.  They tell anyone and everyone that this lot is up for sale starting at $300K for example and then you can blind bid and the highest bidder gets the right to pay them for the lot.  This builder is basically going by a list (still charging the $300K for the lot) but I figure in a blind bid those lot prices may have doubled do to the influx of folks from CA with cash. Basically, I am trying to decide if the investment is worth it.  I strongly believe lake front (in Dallas near the HQ’s of Frito Lay, Dr. Pepper, Toyota, PGA, etc…) will appreciate at a high rate since these type of views are very limited in this area.  I am not real estate expert so I could be totally wrong on that assumption.

[Neonmoon 38126]

Is the juice worth the squeeze? Is having a lake house now worth 100K? That’s only something YOU can answer. Or you would wait X years. Everyone is getting taken to the cleaners because of supply shortages. 

[Beantown Express 2.0 6489]

11 minutes ago, Neonmoon said:

Is the juice worth the squeeze? Is having a lake house now worth 100K? That’s only something YOU can answer. Or you would wait X years. Everyone is getting taken to the cleaners because of supply shortages. 

I am basically screwed as I want to stay in this neighborhood but waiting isn’t an option because I am trying to downsize and move to a one story house.  Everyone that buys these lots puts a giant 4500 sq foot and up McMansion on them and I don’t need that at this point in my life.  So it puts me in the position where I have to get gouged now if I ever want the opportunity to have one of these lots.  It just sucks.

[CooterBrown 17695]

I am basically screwed as I want to stay in this neighborhood but waiting isn’t an option because I am trying to downsize and move to a one story house.  Everyone that buys these lots puts a giant 4500 sq foot and up McMansion on them and I don’t need that at this point in my life.  So it puts me in the position where I have to get gouged now if I ever want the opportunity to have one of these lots.  It just sucks.

Are you allowed to build smaller homes? Those builders may pass on you if they can get an extra couple hundred thousand out of a McMansion customer.

[Beantown Express 2.0 6489]

6 minutes ago, CooterBrown said:

Are you allowed to build smaller homes? Those builders may pass on you if they can get an extra couple hundred thousand out of a McMansion customer.

They are actually allowing people to build smaller one story homes (by small I mean 2500-3000 sq ft). The two stories start around 3700 and go up to 5K or something like that.  So yes, they are cool with that.

[Wulaw Horn 18917]

1 hour ago, Beantown Express 2.0 said:

So, if I don’t need to move, BUT really wanted a lake house is it stupid to be taken advantage of in this market?   The other builders are doing blind bids on their lot premiums.  They tell anyone and everyone that this lot is up for sale starting at $300K for example and then you can blind bid and the highest bidder gets the right to pay them for the lot.  This builder is basically going by a list (still charging the $300K for the lot) but I figure in a blind bid those lot prices may have doubled do to the influx of folks from CA with cash. Basically, I am trying to decide if the investment is worth it.  I strongly believe lake front (in Dallas near the HQ’s of Frito Lay, Dr. Pepper, Toyota, PGA, etc…) will appreciate at a high rate since these type of views are very limited in this area.  I am not real estate expert so I could be totally wrong on that assumption.

I mean, only you can answer if it’s worth it. Mom and dad had a lake house when I moved out to go

to UT and I lived there 3 of the next 6 summers when I was at UT and Law School and it was pretty awesome. 
My only point is there is zero chance you are getting a deal on this in this market. 

[Beantown Express 2.0 6489]

3 minutes ago, Wulaw Horn said:

I mean, only you can answer if it’s worth it. Mom and dad had a lake house when I moved out to go

to UT and I lived there 3 of the next 6 summers when I was at UT and Law School and it was pretty awesome. 
My only point is there is zero chance you are getting a deal on this in this market. 

Yeah, I get I am not getting a deal in this market, but my current home in the neighborhood should sell for more than I expected a few years ago also.  The question is in 10-15 years from now is that house with a lake view worth a lot more than my current house/property not with a lake view.  In another words, just using made up numbers, but does a $500K house with no view backing up to other homes become say $750K 15 years from now but a $1million dollar house become $1.5 million or higher based on the view.   I guess that is what I am contemplating.  

[Wulaw Horn 18917]

7 minutes ago, Beantown Express 2.0 said:

Yeah, I get I am not getting a deal in this market, but my current home in the neighborhood should sell for more than I expected a few years ago also.  The question is in 10-15 years from now is that house with a lake view worth a lot more than my current house/property not with a lake view.  In another words, just using made up numbers, but does a $500K house with no view backing up to other homes become say $750K 15 years from now but a $1million dollar house become $1.5 million or higher based on the view.   I guess that is what I am contemplating.  

Yes. The lake view is more scarce than the non lake view. It will appreciate a greater amount than your current house. 

[TKthunder2 4958]

You can’t fix location.  It’s worth it if you’ll enjoy it, don’t worry about what it’ll get you on the back end. Pay the $100k because in a few years it’ll be worth that and if you can cash out of your current home at a higher sales price it should take the sting away.

Construction cost aren’t going down so if you have any sort of guarantee I’d take that.  I’m 4 months in on a major add on/ remodel job that was only supposed to take 8 months and we’re already over budget.

[jimmyjazz 45055]

Find another lake, buy a dump, knock it down, build.

[Pato del Muerto 51914]

Lavon is nearby

[Beantown Express 2.0 6489]

7 minutes ago, jimmyjazz said:

Find another lake, buy a dump, knock it down, build.

I like my hood and its location to DFW airport unfortunately.  

[Mother mopar 3262]

I like my hood and its location to DFW airport unfortunately.  

Sounds like you have your $100K answer then.

[UTPhil2006 3753]

2 hours ago, Mother mopar said:

11 hours ago, Beantown Express 2.0 said:

I like my hood and its location to DFW airport unfortunately.  

Sounds like you have your $100K answer then.

Pretty much this.  Based on your responses sounds like you know how you're leaning.

[Gil Bang 25507]

On 2/6/2022 at 6:12 AM, T’Boo Ted Marshall said:

Looks like we could be going the construction loan route on a new build.
Met with builder and they haven’t started so they suggested this route for flexibility with upgrades and changes.

This would be a first for me. I’m doing some research but any tips or things to look for would be greatly appreciated.

So, I've got about 20 years experience in Construction lending and fund control.

Construction loans are almost always done 1 of 2 ways.  Draw, or Voucher. 

On draw loans, you have a pre-determined scheduled draws, like monthly, twice monthly, etc.  An inspector goes out and determines what work has been completed, and the bank releases that portion of funds.   

On Voucher loans, the borrower issues vouchers, which is similar to writing checks.  The payee then submits the voucher and other paperwork to the bank, the bank verifies that the work is completed, and issues a check to the payee named on the voucher.  The "other paperwork" should include the invoice, and relevant lien releases. 

There is almost always a line-item budget, and both draw and voucher loans will deduct from the appropriate budget line (Foundation, framing, plumbing, etc). 

There's usually a mechanism to move money between lines.  Drywall comes in a few-hundred under budget?  Transfer that money to plumbing fixtures and upgrade the shower valve, etc. 

So, one thing to keep in mind is that the inspectors aren't really inspectors all of the time.  Sometimes the Loan Officer himself will do the inspection, or an appraiser, or whatever.  I've seen deals go sideways because the inspector was a dumbfuck.  They often use a little spreadsheet cheat-sheet.  "OK, the foundation is complete, so, the house is 15% complete overall", because that's what the cheat sheet says.  I've gotten into many arguments about that.  Homes that require extensive foundation work; they can be 50% complete overall when the foundation is done, not 15.  

Also, the inspectors don't do shit about quality control.  They don't inspect the quality of the framing, they just notice lumber nailed together. 

[Dbeasy 14733]

Got a question from a real estate client that I couldn’t answer and thought someone in here might know the answer. 

There are always advertisements of new “ranch” land developments around Texas. The ads are mailers in the mail, or maybe Facebook ads, or flyer inserts in the mail, etc. They all have the same style, advertising a big sale that is about to happen for 10 acre lots or 2O acre lots. I know they are trying to get people out there for the grand opening and get them to buy on the spot. 

But I can’t figure out the bigger scheme. The pricing advertised is always very attractive. Is it all an illegal scam? Is it a bait and switch? Are there hidden costs down the line? This guy wants to buy one. 

[Neonmoon 38126]

18 minutes ago, Dbeasy said:

Got a question from a real estate client that I couldn’t answer and thought someone in here might know the answer. 

There are always advertisements of new “ranch” land developments around Texas. The ads are mailers in the mail, or maybe Facebook ads, or flyer inserts in the mail, etc. They all have the same style, advertising a big sale that is about to happen for 10 acre lots or 2O acre lots. I know they are trying to get people out there for the grand opening and get them to buy on the spot. 

But I can’t figure out the bigger scheme. The pricing advertised is always very attractive. Is it all an illegal scam? Is it a bait and switch? Are there hidden costs down the line? This guy wants to buy one. 

They buy land in bulk. They make money by dividing it up into single lots. Their financial model is spend as little amount of money as possible to attract buyers. Are there roads? Water? Septic? Electricity? The more infrastructure, the less profit. The hidden costs down the line is paying for all that infrastructure if they sellers didn’t.