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DerbyDad03 DerbyDad03 is offline
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Default OT: House Offer Accepted. What A Crazy Market!

On Thursday, May 6, 2021 at 10:13:28 AM UTC-4, Leon wrote:
On 5/5/2021 2:01 PM, wrote:
On Wed, 5 May 2021 08:30:29 -0500, Leon lcb11211@swbelldotnet wrote:

On 5/4/2021 8:07 PM, wrote:
On Tue, 4 May 2021 13:35:40 -0500, Leon lcb11211@swbelldotnet wrote:

On 5/4/2021 10:41 AM, Clare Snyder wrote:
On Tue, 4 May 2021 10:16:44 -0500, Leon lcb11211@swbelldotnet wrote:

On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
On 5/2/2021 8:32 PM, Clare Snyder wrote:
On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski wrote:

On 5/2/2021 4:42 PM, Bill wrote:
On 5/2/2021 3:43 PM, DerbyDad03 wrote:

Their offer was accepted, not just based on the offer price, but also
based on the appraisal clause. Another offer also had an escalation
clause that maxed out at $410K, but the appraisal clause was only
$13K above the appraisal value, $2K less than their offer. That was
close!

I'll assume my previous message has been read. Color my cynical but all
I have to say is "what a coincidence!". That said, I congratulate the
buyers on their new home. The way property is appreciating, it will
surely be a great investment in the long run, and you can live in
it!


I wonder in 3 to 5 years if the house price today will still be a good
investment when interest rates are back up.
I'm betting there will be a lot of people with upside down mortgages
in 5 to 10 years in several areas of the country. Our area is less
likely to see it than many others due to our resiliant economy - but
%7 would definitely be painfull for MANY buyers - even here.


Exactly. A scenario like: I paid 500k for this house, owe 400k and the
highest offer is 300k.

Live there long enough and you are ok, but if you have to relocate, you
are screwed.


This is what is happening now. It will be interesting to see how many
people will be upside down in 2~5 Years.


I paid $63700 39 years ago. That is about $170,000 in 2021 dollars. I
assumed a 6.3% mortgage when the going rate was 23% - 18% if you were
lucky and had an 800 credit score.

40 years and 4 months ago my wife and I paid 60K. 30 years, 12%
interest in Jan 1981 Refinanced 6 years later for 9% for 15 years. We
accelerated the payments after refinance and paid the mortgage off Feb,
1997.

When we first started (July) looking for our first home ('82, I think)
we were looking at 18% interest. We bought in September, with a 14%
30-year mortgage. A couple of years later we re-fi'd to 8%. We paid
$60K.

I recall mortgage rates going up to 18 % shortly after we closed at 12%



Estimated value today $164K. $98K 10 years ago when we sold.

Ours is now $304K (Zillow).

Cash for the next home in 2010.

I wish. The next house was in VT. We paid $150 and sold 14 years
later ('07) for $300. It's now $404. Last I looked the taxes were
$8K but it's not listed now.

Farkin taxes! You can afford to buy a home but can one afford to pay
the taxes on it.

We moved from VT to AL. We bought there for about the same as the
house in VT for ($300K). Taxes, close to $4K. It was about 1.5x the
size and *far* nicer. SWMBO loved the kitchen. She was rather ****ed
when we moved here.

When we asked the RE agent about property tax, she said $1200, maybe
$1500. Wife asked "is that half year", quite seriously. The RE agent
looked at her like she had a third eye.

That wasn't in rural AL, either. It's major employer was Auburn
University. Football weekends were nuts - corporate jets by the dozens
(and dozens) flying in from all over and Class-A motorhomes by the
hundreds, standing ear to in the tailgating area for the weekend.
There is a lot of money among Auburn alum and they show it.

Anyway, we moved here and the taxes are now $3K after about a 30%
discount for being over 65. In this county, school taxes go away
completely after 72. Other counties forgive it at 65. GA is a very
retiree friendly state. Essentially, there is no state income tax on
retirement (pensions, IRA withdrawals, SS, etc.).


That was when people WERE upside-down on their mortgages in a lot of
cases because of the 1980s recession with high rates causing prices to
drop. My MIL was in real estate in Windsor and people were walking
away from $800000 homes. Sadly for Windsor some of those homes are
still not worth very much more than that - - -

The dangers of ARMs. Without enough equity there's no way to
refinance when the interest rate climbs. Same problem in '07-'11.


We almost went with an ARM in 2010. It was locked in for 5 years. We
were only going to borrow about 20K, just to give us some kush after
moving in. We would have paid it off within the next couple of years so
the rate would not have ever gone up on us. But we decided to go all
cash to get and additional 3% discount off of the negotiated sale price.


An ARM in 2010 probably would have been so bad. The neutron bomb had
already been dropped by then.

I remember you buying that house. Have I really been around here that
long?

You should check out Arkansas property taxes.. :~)

Hundreds od dollars vs. thousands.

Swingman has a home in West University TX and a home in Hot Springs AR.
The AR home is certainly smaller than the West U home but not 40 times
smaller. IIRC $24K per year vs.
$6 hundred.


Yet somehow services are provided in both states. Obviously we're lacking
some details.