Family can't move into house they bought

[neech]

Originally Posted by Bugeater

I told them, in no uncertain terms, that there's no goddamn way in hell my home appreciated that much in one year. And it didn't.

Well good luck with that, in many cases I’ve heard you need an appraisal paid by you to get them to budge. I don’t know what they cost these days.

[sedated]

Hoping a bubble bursts might be too much, but I've bid on 2 houses recently - 25% over asking - and lost because someone else did the same while waiving inspection and appraisal. Is it really too much to ask to not have to blindly throw a ton of cash at someone to get a house? Apparently not because in both cases there were over 10 offers within 24 hours.

[tredadda]

Originally Posted by sedated

Hoping a bubble bursts might be too much, but I've bid on 2 houses recently - 25% over asking - and lost because someone else did the same while waiving inspection and appraisal. Is it really too much to ask to not have to blindly throw a ton of cash at someone to get a house? Apparently not because in both cases there were over 10 offers within 24 hours.

The bubble won't burst, but I do think once interest rates rise again there will be a slow down. The incentive is to buy now while rates are very low. People waiving that stuff is ridiculous and is a bad move, but also shows the desperation in trying to get a home no matter the cost.

[DaneMcCloud]

Originally Posted by tredadda

The bubble won't burst, but I do think once interest rates rise again there will be a slow down. The incentive is to buy now while rates are very low. People waiving that stuff is ridiculous and is a bad move, but also shows the desperation in trying to get a home no matter the cost.

The big question is this: Will interest rates rise again?

I tend to think the answer to that question is no.

[Rain Man]

Originally Posted by DaneMcCloud

The big question is this: Will interest rates rise again?

I tend to think the answer to that question is no.

They can't really go down, so it seems like at some point they'll go up. But I'll be happy if they don't.

Living in an expensive market, one of my concerns has been the impact of changes to mortgage interest deductions: https://www.nerdwallet.com/blog/mort...est-deduction/ It seems like this would hurt home values at the higher end of the spectrum in the long run. But I'm not seeing it right now.

[Chief Roundup]

Originally Posted by Rain Man

They can't really go down

Negative interest rates are a real thing. There is talk that we very well may be headed into that situation. When that situation has raised in the past banks generally charge a person a percentage rate, beyond their monthly account rate if they have one, for the amount of money that a person has in their account.

[DaneMcCloud]

Originally Posted by Rain Man

They can't really go down, so it seems like at some point they'll go up. But I'll be happy if they don't.

I think that interest rates will "rise" at some point but it won't be to levels that we saw around the year 2000, in which they're 6%-9%.

I'd be surprised if they even reach 4% before the end of the decade because it would leave millions homeless and without the ability to own a home.

[tredadda]

Originally Posted by DaneMcCloud

I think that interest rates will "rise" at some point but it won't be to levels that we saw around the year 2000, in which they're 6%-9%.

I'd be surprised if they even reach 4% before the end of the decade because it would leave millions homeless and without the ability to own a home.

Agreed. I believe these ridiculously low rates can't last forever, but at the same time high rates would be even more devastating and lead to economic bloodshed as well. 4% seems like a good balance.

[Halfcan]

Originally Posted by sedated

Hoping a bubble bursts might be too much, but I've bid on 2 houses recently - 25% over asking - and lost because someone else did the same while waiving inspection and appraisal. Is it really too much to ask to not have to blindly throw a ton of cash at someone to get a house? Apparently not because in both cases there were over 10 offers within 24 hours.

How are people waiving appraisals unless they are cash buyers?

FHA and VA buyers have mandatory inspections.

This is the kind of stuff that causes the housing market to crash. There has to be a check and balance on properties and loans. I guess people have forgotten the Obama years. The market was depressed by foreclosures and loans being very difficult to get.

[vailpass]

Originally Posted by Halfcan

How are people waiving appraisals unless they are cash buyers?

FHA and VA buyers have mandatory inspections.

This is the kind of stuff that causes the housing market to crash. There has to be a check and balance on properties and loans. I guess people have forgotten the Obama years. The market was depressed by foreclosures and loans being very difficult to get.

Inspections. Not appraisals.

[Halfcan]

Originally Posted by vailpass

Inspections. Not appraisals.

He stated Both in his post.

[vailpass]

Originally Posted by Halfcan

He stated Both in his post.

Sorry, I thought you were replying to my post.

[DaneMcCloud]

Originally Posted by vailpass

Inspections. Not appraisals.

Appraisals are ordered by the financing company but pre-Zillow/Trulia/Redifin, I paid for a few appraisals out of pocket for a few properties I considering purchasing.

As for inspections, they aren't the end all, either. We hired a supposedly "great" firm to do the inspection on our home but the guy missed all kinds of stuff, including a super leaky flat roof, a balcony that leaked into our laundry room and all kinds of electrical that wasn't even close to code.

When I asked our realtor about this crap six months after purchase, he said that there's nothing the inspector could have done because they're not allowed to perform any leak detection or electrical inspections.

Fortunately, we found all of the issues early on because we basically tore it down to stud, which is probably the same plan for those that are purchasing without inspections as well.

[DaneMcCloud]

Originally Posted by Halfcan

How are people waiving appraisals unless they are cash buyers?

FHA and VA buyers have mandatory inspections.

This is the kind of stuff that causes the housing market to crash. There has to be a check and balance on properties and loans. I guess people have forgotten the Obama years. The market was depressed by foreclosures and loans being very difficult to get.

People are dropping $1+ million dollars cash all over Los Angeles, without inspections and without appraisals because the interest rates are so cheap that investors can put a couple hundred thousand into them and rent them out for $6k-8k per month all day long.

[displacedinMN]

Originally Posted by DaneMcCloud

People are dropping $1+ million dollars cash all over Los Angeles, without inspections and without appraisals because the interest rates are so cheap that investors can put a couple hundred thousand into them and rent them out for $6k-8k per month all day long.

Anyone there doing teardowns?