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1st time home buyers help me


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We are pre approved and searching. We have found 2 we wanted, and lost the offer war against other buyers both times. I know what to look for structurely but the rest is getting frustrating. One of the houses was a foreclosure and I think we just got beat out because someone gave the bank a cash offer and they snatched it instead of taking financing even if our offer was higher? The house was last assessed for $125,000 and the bank was asking 65,900 our realtor told us that our bid was beat and we then went to 70000 and still lost...any advice?

Edited by GreenStreak
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Don't give up, buying a house is a bitch, my house was a foreclosure too and got for a great price but had to play the games with the bank which was in possession but in the end it all worked out

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i have bought a few repos. its all risk but it can pay off. this seems to be how it works here . bank takes the house the owners trash it 6months later the bank sends a plumber out to winterize it usually in january on a day the temp is -20. if the plumbing is pex tubing it may be ok. plastic pvc its broke somewhere. always broke at the shower heads. no way of draining it there. hot boiler might be ok if your real lucky. if everything was drained before it got cold ok if not??? if you need to replace any pipeing use pex easy real easy.   a house that was repoed 2 yrs ago is easier to buy than one thats been a few months. another trick the banks have. i have had this happen. i have to be at the banks laywers office at 10 am with a 10k deposit in case i am high bidder. i am the only one there. the house was trashed it went thru 2 winters cold and they wount let me inside till i buy it. i bid 55k the laywer bids 129k for the bank. then a real a state co lists it for 130. now they dont have to put it out to bid again

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As was mentioned just be persistent and keep looking and yeah most realtors are basically used car salesman so if you can find one you trust and like stick with them. :bc:

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2 hours ago, GreenStreak said:

We are pre approved and searching. We have found 2 we wanted, and lost the offer war against other buyers both times. I know what to look for structurely but the rest is getting frustrating. One of the houses was a foreclosure and I think we just got beat out because someone gave the bank a cash offer and they snatched it instead of taking financing even if our offer was higher? The house was last assessed for $125,000 and the bank was asking 65,900 our realtor told us that our bid was beat and we then went to 70000 and still lost...any advice?

if it was city assessed for 125 k u were way way of at 70k . closer to 90 to 105k in my parts any way .

remember homes in that 70 to 125k in even 1/2 respectable hoods are snatched up by investors all with cash all with the ability to close in under a week . U are searching in a tough market .know any lawyers who are fiduciaries for old people ? and home care givers for old people ? and drivers for old people ? any one delivering meals on wheels?

ask around those people know who is about to go to the home before the stuff hits the market . and most old people take care of the mechanical's just let the yrs go by on updates.

that is how I get all the flips I have ever done .

if working with say a lawyer with power of attorney they do have to list the place legally but your offer can already be on the table and the offer can be accepted right away .

anything decent in your price in my parts is a tough find in open market

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2 hours ago, GreenStreak said:

We are pre approved and searching. We have found 2 we wanted, and lost the offer war against other buyers both times. I know what to look for structurely but the rest is getting frustrating. One of the houses was a foreclosure and I think we just got beat out because someone gave the bank a cash offer and they snatched it instead of taking financing even if our offer was higher? The house was last assessed for $125,000 and the bank was asking 65,900 our realtor told us that our bid was beat and we then went to 70000 and still lost...any advice?

You're gonna have a hard time buying a good location repo with just a pre-approval letter unless you go high and move fast.  I've bought a few and while I'm standing there with a handful of cash....others are bidding and needing to go through a financial closing.  They never had a chance.  It's the way it works.  It's gotta be worth the banks time to wait on your process of finance or they are taking cash and wiping it off the books.  Now, something else you've got going against you, it sounds like you are looking in the price range that flippers swim in.  You are in a pool with some pretty sharp and well financed real estate sharks.  You can do it...but don't fuck around...if you find something you like, go hard and fast, have an inspector on tow, even if you cant get in, he cans sort out what may be going on inside through a good exterior inspection.  

Good luck my man!  Grab the horns!

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Don't get frustrated.   Same thing happened to us when we bought our first house.  Thought we had it for sure offering full asking price, but we got out bid by $1,000 to someone else who submitted an offer the same day as we did. It just wasn't meant to be.  I truly believe that things like that happen for a reason. Be patient. :thumb:

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also 70k is not a huge pile of cash . if looking in those prices u will have way better luck with cash offers . if u are approved for day 80 ask a bud or family with cash if he wants to make a quick 5 to 8k . borrow the cash then refinance to pay them back . it will not be ez competing in that market with out cash unless values in your aria are low . also a lot of these foreclosed homes do not even qualify for financing . all systems must be working and most of the time they are not 

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1 hour ago, Ez ryder said:

if it was city assessed for 125 k u were way way of at 70k . closer to 90 to 105k in my parts any way .

remember homes in that 70 to 125k in even 1/2 respectable hoods are snatched up by investors all with cash all with the ability to close in under a week . U are searching in a tough market .know any lawyers who are fiduciaries for old people ? and home care givers for old people ? and drivers for old people ? any one delivering meals on wheels?

ask around those people know who is about to go to the home before the stuff hits the market . and most old people take care of the mechanical's just let the yrs go by on updates.

that is how I get all the flips I have ever done .

if working with say a lawyer with power of attorney they do have to list the place legally but your offer can already be on the table and the offer can be accepted right away .

anything decent in your price in my parts is a tough find in open market

man I don't know, that just don't sound right :lol:

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keep at it and something will come up,  lack of inventory is driving up prices and making it difficult.  I put out 3-5 prequal letters for offers every weekend,  lucky if 1 of my buyers get the house and they are for the most part 5% over list

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2 hours ago, Zambroski said:

You're gonna have a hard time buying a good location repo with just a pre-approval letter unless you go high and move fast.  I've bought a few and while I'm standing there with a handful of cash....others are bidding and needing to go through a financial closing.  They never had a chance.  It's the way it works.  It's gotta be worth the banks time to wait on your process of finance or they are taking cash and wiping it off the books.  Now, something else you've got going against you, it sounds like you are looking in the price range that flippers swim in.  You are in a pool with some pretty sharp and well financed real estate sharks.  You can do it...but don't fuck around...if you find something you like, go hard and fast, have an inspector on tow, even if you cant get in, he cans sort out what may be going on inside through a good exterior inspection.  

Good luck my man!  Grab the horns!

Correct, I paid cash for 2 of my 3 homes, that wins the bid almost every time.

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1 hour ago, hayward said:

man I don't know, that just don't sound right :lol:

ok I will make my self sound worse lol. when dealing with old people U have to remember they have there whole life ties in to that home for the most part,

pets  buried in the yard memory's of kids playing in the yard . most of the time there spouse spent there last days in that home.

U have to have some on write a over the top letter explaining how when u saw there home is was perfect and u could imagine u raising your family in there home. if it is a woman add a hart over a I or some little thing poss pick of a young family even if not yours.

laugh if u will but the shit works well even on non old people who have spent a lot of time in a home. it is a lot more than a business transaction for a lot of

people .

emotions are sometimes worth a lot more than cash or a quick closing to a lot of people.

this could help u  I am finding for some reason beyond my comprehension  in certain neighborhoods they are giving first priority to owner occupied before investors . I get the rental thing but not the flippers . but that was what I found on 1 property last mo  . and we found the same thing on a property last summer we had a offer in .I don't get it these are not great homes in great neighborhoods just solid lower middle class one would think a fixed up home in there neighborhood would class the whole place up.

only thing I can think is  with in 4 or 5 blocks  both of the property's I have run it to this at had a lot of fresh flips and tore out old junk replaced with new and the owners want to preserve that run down charm?  

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i fought against buying a house, but can't fucking take apartment living. and fuck condos. i'm just gonna have to bite the bullet and mow some lawn. with that said,,,repos can be a fast moving act. if it's an interesting property you can bet they'll go fast and bidding can be brutal. i avoid the "falling in love" with a home or car when buying. just stick hard to the facts and be honest with yourself about what you're willing to pay both before and after the purchase. patience does pay off. 

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Unless your in a hurry or old I would wait. Hold onto your cash and keep saving. The top of the residential market is right now and in another year or so its gonna drop like a rock and thats when not owning a home to sell and having a larger down payment will be your best bud.

Patience grasshopper

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8 minutes ago, Mainecat said:

Unless your in a hurry or old I would wait. Hold onto your cash and keep saving. The top of the residential market is right now and in another year or so its gonna drop like a rock and thats when not owning a home to sell and having a larger down payment will be your best bud.

Patience grasshopper

It's hard to time the market. I'm sure many thought the top was already hit in Canada a few years ago but prices keep skyrocketing. If money stays cheap it could keep chugging up here as well. Eventually something with give with wage stagnation and the bubble will pop again, but when, where, and how bad is the question. :bc:

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5 minutes ago, Mainecat said:

Unless your in a hurry or old I would wait. Hold onto your cash and keep saving. The top of the residential market is right now and in another year or so its gonna drop like a rock and thats when not owning a home to sell and having a larger down payment will be your best bud.

Patience grasshopper

clearly if his market has 70k homes it is a totally different market than you and I are in.  

TBH right now given the market I would love to punt my house.  prices are high,  inventory is low enough that some of the things I should finish like a the interior repaint needed on more than half the rooms and some outside trim work needing replacing would be overlooked. I found a 3 bed condo i like but can't get the wife to bite on,  sure I'd overpay in my mind 50k for it but I'd be making enough on the other end it is OK.   

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Just now, GGNHL said:

It's hard to time the market. I'm sure many thought the top was already hit in Canada a few years ago but prices keep skyrocketing. If money stays cheap it could keep chugging up here as well. Eventually something with give with wage stagnation and the bubble will pop again, but when, where, and how bad is the question. :bc:

Every market is different within the states so I try to avoid making blanket statements like MC did.  Speaking locally while i believe the market is overheated right now much of the increase has been due to a lack of inventory and in most places where people really want to be there is not going to be significant new construction to alleviate that so that will remain an issue pushing people out into more rural areas or forcing them to decide to pay more.  At least in the market I see from MA to ME jobs are plentiful and pay well and overall I don't see us really putting blatantly unqualified borrowers into homes like we did during the 03-07 run where prices were similar so any correction should be no where near as bad as 08-11. The other thing is here there is a tight rental market so rents are still in many cases higher than what a mortgage would be so unless you need to sell in any downturn risk is minimilized.  Losses are only losses if you have to take them just like gains are only gains if you take them so if your looking at a 10-15 year property who really cares.  In my case I am only 30 months or so from looking to be out and I will be downsizing when i do so so now would be a good time to bail if i could convince the wife.  

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1 hour ago, Angry ginger said:

clearly if his market has 70k homes it is a totally different market than you and I are in.  

TBH right now given the market I would love to punt my house.  prices are high,  inventory is low enough that some of the things I should finish like a the interior repaint needed on more than half the rooms and some outside trim work needing replacing would be overlooked. I found a 3 bed condo i like but can't get the wife to bite on,  sure I'd overpay in my mind 50k for it but I'd be making enough on the other end it is OK.   

Maybe so but if the US market drops 20% his does too and that may allow him to pay cash in a year or so.

The drop is coming in residential and large retail real estate

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1 minute ago, Mainecat said:

Maybe so but if the US market drops 20% his does too and that may allow him to pay cash in a year or so.

The drop is coming in residential and large retail real estate

simplistic beyond belief and completely 

:wrong:

to say that everywhere will react the same.   There are many drivers of how the local RE market performs both in up and downturns. 

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6 minutes ago, Angry ginger said:

Every market is different within the states so I try to avoid making blanket statements like MC did.  Speaking locally while i believe the market is overheated right now much of the increase has been due to a lack of inventory and in most places where people really want to be there is not going to be significant new construction to alleviate that so that will remain an issue pushing people out into more rural areas or forcing them to decide to pay more.  At least in the market I see from MA to ME jobs are plentiful and pay well and overall I don't see us really putting blatantly unqualified borrowers into homes like we did during the 03-07 run where prices were similar so any correction should be no where near as bad as 08-11. The other thing is here there is a tight rental market so rents are still in many cases higher than what a mortgage would be so unless you need to sell in any downturn risk is minimilized.  Losses are only losses if you have to take them just like gains are only gains if you take them so if your looking at a 10-15 year property who really cares.  In my case I am only 30 months or so from looking to be out and I will be downsizing when i do so so now would be a good time to bail if i could convince the wife.  

Likely best to avoid him altogether:lol:

The markets here have been in a bull for about 20 years with no sigh of slowing down.  My home has more than quadrupled since 98 when it was purchased, insane really, however the supply is low and mortgage rates are just over 2%.  Though the run was over almost ten years ago and waiting for the correction, most so called experts who have been warning about the crash should keep their traps shut as they have zero credibility at this point.  Yes its going to correct.

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When interest rates go up sale prices go down.....always. When you can see a slowdown in demand (and you can) wait it out.

 

I could have written a term paper on why and why not but why bother on a sled forum? My opinion stands....WAIT it out

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5 minutes ago, Mainecat said:

When interest rates go up sale prices go down.....always. When you can see a slowdown in demand (and you can) wait it out.

 

I could have written a term paper on why and why not but why bother on a sled forum? My opinion stands....WAIT it out

Depends on the location. In the Toronto and surrounding area it's simply a matter of supply and demand. The demand has outstripped the supply for probably about 20 years and there aren't any signs of it slowing down any time soon. The demand STILL exceeds by far the supply. The average price of $1.21-million for detached properties sold in the GTA this past month smashed the former peak of $1.07-million set in January and climbed 32.5 per cent from a year earlier.

Would you have suggested someone simply wait out over 20 years.

We are seeing the lack of supply in Toronto driving up prices outside of the area. Barrie which is an hour north has seen prices go up significantly. For Barrie the year-to-date average price for all homes sold was $511,214, up 30.1% from 2016.

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