Ooops, I OVERPAID For a House, Now WHAT?
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- Опубликовано: 16 сен 2024
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Many are recent homebuyers who paid over asking price for their new homes are frustrated to discover that their new home needed costly repairs or otherwise has a problem that was missed in a home inspection. So they sue to recoup the costs of the repairs.
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HUGE iBuyer LOSSES NO LOVE For The BROKE And DESPERATE ruclips.net/video/JehORA2L3TA/видео.html
You asked in a previous video about selling branded sunglasses.
I think you should start off more modestly, because the sunglasses game is very competitive and you could easily lose a bunch of money.
Some ideas:
1. Affiliate link from your channel to the sunglasses brand(s) you like, and you get a cut of the sales, of course;
2. Have your own JIT (just in time) merch store with branded sunglass cases (cheaper and easier to do) that come with a pair of sunglasses (and sell other stuff, too).
3. Get a sunglass company to be a paid sponsor
Just Google "how to set up a merch store for RUclips" and/or reach out to other RUclipsrs who have that stuff and see how they did it.
Good luck!
Whenever I watch these all I can think of is the *"FARK"* days of the Internet News Agregation and how there was a separate section just for the entire State of Florida.
Hey I’m curious about the luxury/premium Miami Beach are market, hopefully you can give an on the grounds opinion. Thanks and I appreciate your stuff you post.
We all make mistake. Love tp
My Wife and I sold our Primary Residence and two Rental Properties in the Tampa/St.Pete area last Feb . We both had close to 10 years till we could both Retire . But Thanks to the Pandemic and the rush by people to Pay almost anything in our area for a Property . We are now both Happily Retired in another State . So , for those Buyers who paid what we thought was way to much for our Properties ? We Graciously Thank You . And Thank You Sir for such Great content on Real Estate .
Haha good perspective from the other side that benefited greatly from this, nicely done 👍
Awesome
I like you sold two investment properties in early 2022. Multiple offers over list price. However you don’t say if you did a Section 453 installment sale or a Section 1031 exchange of some sort, or if you invested your net proceeds in a Delaware Statutory Trust or DST Syndicated Fund property in order to delay, defer or otherwise eliminate any capital gains tax on the disposition of your investment properties? Did you merely sell your investment properties and pay taxes on the gains? If so please realize that there is a better way. I paid nothing and most likely never will and I earned substantial gains from my initial investment. Remember it is important to maximize what you keep and minimize what you pay in taxes. My 2 Cents.
My wife and I sold our house in homestead FL last June for double what we paid in 2018. When the realtor told me how much we were going to sale it for we were worried it wouldn't sale as it was about 50 over what I thought it would go for. It ended up going 20 over asking.
Am from Pinellas but living in Brasil, bought a nice 2br condo for $26,000 ! Living on $500 a month. By the way, what state did you run to ?
I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.
May I ask which investments are good? I've been looking at a few different ones but want others' opinions as well
What I think everyone need is a Financial Adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit
*ROCH DUNGCA-SCHREIBER,* That's whom i work with
is ROCH DUNGCA-SCHREIBER on youtube? please how do i reach her!
No she's not!... RUclips is a public place; i can't drop her information here but You can just put her name on google and you will be directed to her website and drop her your message.
You get some people getting an extra warranty, for example, on a $900 laptop, or a $1500 TV. You now have people in the past couple of years, waiving home inspection, engineer inspection, and buying a $500,000 home. It makes one shake their head. 👍🇨🇦
I got rid of all tell lie visions 8 years ago
I had been planning to buy a house. I'm 100% ready but just can't bring myself to pay $100k+ more for a house than it was 2 years ago..I can't do it. Unless I win lotto and have more money than I can ever spend, I can't imagine being so wasteful! Even if I can afford the payment, I tried to imagine what I'd do if someone gave me $100k in cash today. That is (to me) life-changing money so I tried to use that to justify continuing to rent another year. My rent went up another 10% but I'd rather wait another year and see how things shake out. I really hope we can watch these corporate investors lose everything they have. They're so blinded by greed they can't see the irreparable damage they're doing to the country.
Trust your instincts and don't do it. I found a house I just loved but it was double what the sellers paid for it just three years ago and I will not throw my money away.
Don't wait for karma to sort out the corporate investors: you and I as taxpayers will bail them out, guaranteed. That's why they make so many reckless decisions: they're playing a game they can't lose.
silly. you threw away 100k and as a lesson learned you are prepared to throw away more.
U r the BEST!...thanks for always updating ur knowledge !!!!!!!
I knew this would happen. I kept trying to tell people last year to not buy a house like that and everyone kept telling me it was supply and demand and ALL the homes were worth more. I think it's funny how the price came down a lot and everyone is so surprised.
I just had a meeting with my property/landlord attorney of 20yrs. He could not stop talking about how hundreds of properties his clients owned as rentals had tens of thousands of dollars in deferred maintenance due to Covid. And they all sold in bidding wars during 2021. He said many of these had roof failures, plumbing and electrical failures and still went over asking. These folks are honestly just complete fools.
Are you in a "hot market" area, Jason?
Yeah I see houses here in the Midwest that are pieces of shot and there selling over asking. Those buyers are going to regret it in more ways than just overpaying.
🤣
Very few people who regret buying a house will admit it, because people don't like to look foolish and gullible. People don't like to admit they made a mistake. So, they just keep smiling and saying how happy they are with their decision. I guarantee that 20% figure is actually a lot higher.
I'm one who does NOT regret buying our house in 2021. Why? Because we love our new house. A really desirable house in a very desirable location. And the fact that we sold our last home to buy the new. Although, suppose to be, we paid "too much" for new house.. BUT, we sold our last house for a MASSIVE amount. So in this case, it kind of offsets this
Thats another way to look at it
I think you're right
@@fueledbymusic3 Good for you. glad it worked out so well. But I will wait.
@@MichaelBordenaro It's a cynical way of looking at it, but in these times, I think cynicism is justified. 😉
I live in SW Florida. A friend of mine has a 2300 sq ft. 2 bedroom, 2 bath house. He had aninterior water leak. He just paid $13,000 for repiping and drywall repair. Painting is additional. WOW. Waive an inspection? No way.
so you think an inspection will prevent an interior water leak after you buy ??? 🤔 I had an inspection and then an interior wall leak. probably 95% of people that had a interior wall leak had an inspection.
if there is no sign of water damage, you will pass inspection.
Ouch that is a costly one!
Don't use an inspector. They are a joke. I always hire an electrician, Plumber, hvac, and general contractor to inspect my homes (if it has a septic system, I hire a septic professional.) Many inspectors have no construction experience and get their certificate through online courses. It will cost you a little more but it is worth it in the long run.
I was almost the guy that fomo’d in recently. I’m glad things forced me to wait. All cash buyers put me in my place. It’s been awful waiting but I know it’ll pay off big once I decide to pull the trigger. I’ve never been in a better position financially.
Same here! I wanna buy and have cash but am going back and forth if I should do it or wait
@@AshleyCherv. get into the foreclosures that shall be happening, you can go drive by and check them out, you only need 5% down, buy a duplex, rent out 1 side, or whatever
That is the right attitude! And I have no doubt that since you've been watching your market closely, you'll be able to easily identify a good deal when it comes along
A realtor here on RUclips made his clients sign a disclosure during the FOMO that he let them know their home could go down in value should the market change. Now that the lawsuits are flooding in, he doesn't look so crazy.
Good idea, in fact after this I wouldn't be surprised if a new addendum comes out for all agents with a similar disclosure to avoid suits.
Holy cow. I'd never never sign anything, but that's due to the duh factor. Lol
That's one way of putting it because markets always change. I'd make sure to include in there that the realtor believes that the current price is overinflated already and highly likely to come down.
You nailed it Michael! 😟Depression both emotional and financial along with desperation is setting in‼️
Don’t ever buy a property without an inspection. This could save you money in the future and you have more negotiating power!
Thank you so much for addressing these issues. This almost happened to me, but I followed my gut instead and dodged the bullet, so to speak. RA tried to pressure me, but I knew I didn't know enough yet to make the right decision - and dropped the RA. I tried to work with him for over a year. (Oregon, was trying to move to Ohio)
My pleasure! Always important to go with your gut 👌
It’s time your channel really blows up. These videos are too good.
I keep giving a thumbs up on everything and commenting on as many videos as I can to try to get it to push through the algorithm, but not sure how else to help.
I appreciate that! Every time you watch a video from me and the if you watch the whole thing are the best things you can do to support the channel 👌
@@MichaelBordenaro Awesome 😎 I watch every one of them to the end - and it’s sure not difficult to do because your videos are some of the few on RUclips that are interesting all the way through.
Keep rocking Michael. Information that mainstream media never gets right, or tells the truth about
I bought a couple homes during that whole run up to now, one for the wife and I and one for Gma. It is like you said "do the research so you understand where the housing market pricing sits" and do your inspections. Then walk away when things do not seem right. Yes you will loose time and inspection money. But you want to know if there is going to be problem after moving in. Some super expansive like you talked about at the beginning of this video. With patience you can get what you want / need. The other thing like Michael also points out, do not purchase a gigantic house that straps you financially. That can strain relationships that were perfectly fine before.
Absolutely! So many people over pay and over buy in size and it becomes a massive financial burden
I’m born and raised in Miami Beach and my mother used to own a few hotels on the beach and prices, an HOA’s have never been this high I feel bad for families
Yes it is crazy how expensive it is here now
It's similar to all the people that rushed out to buy tons of toilet paper and paper towels during the pandemic. These regretful homeowners who rushed into the panicked marketplace will pay up and eat their losses. Most of the bad decisions were probably from people who relocated from out of sate and felt pressured to rush.
The toilet paper wasn’t pandemic buying. It was a shift in the market, because people needed more TP while they stayed at home. In addition, the TP (giant rolls) that were used in office, had a different supply chain and couldn’t easily be converted for home use.
But people eventually used the TP🤷🏻♀️
@@TheRachag I bought a bidet. Best idea ever.
Any decision based on fear is always a bad one.
So many people regret buying.... Glad we waited!!
We were looking at houses last Jan-March and it was peak fomo. Everyone was rushing in simultaneously.
I felt this sense of deja vu, and then I remembered when I felt this before. It was around 2007. This feeling was everywhere that you had to buy at any price because soon the housing market would become too unaffordable for you ever to get in.
I remembered that exact feeling. And it also reminded me that, if you can’t afford it, then that means the entire class of buyers in your position can’t either. And if you’re actually in decent financial shape, that means, sooner or later, the market is going to run out of buyers.
So, we didn’t buy. Now J. Powell is doing his darnedest to make sure housing prices go down, which is pretty nice.
I MADE THE 07 BUYING MISTAKE, NEVER AGAIN. NO FOMO HERE, WAITING.
Michael. I don't think the owners of the houses you pointed out in your video are "fishing". Unless they fish with no bait and in a lake with no fish! I think it's more likely they cannot afford to lower the prices of those homes. They are overextended. Those houses will be in foreclosure by year-end. Case in point. We sold our second home in Vegas in January 2022. Before we sold it, we explored the idea of renting it out. We had two reputable Vegas management companies come in and price it at about $1500.00 a month. In the end, my wife and I didn't want to be landlords and decided to sell it as the market was close to peaking. It was a good move. We made a killing on the unit. The buyer grossly overpaid, and planned to use it as a rental property. That was a year ago. Two weeks ago we were notified that he listed the unit as a $3600 a month rental. Yes, more than double the price we were told just a year earlier. Is he being greedy? No. He's trying to break even. He can't sell it for what he purchased it for... and he can't rent it for less than this amount or he will be in the red every month. Rising HOA, insurance, utilities, management company costs, etc., surely wasn't as he expected either. At some point in the next year or so he won't be able to cover the monthly mortgage, and it will go in foreclosure. It's a no win situation and he was doomed as soon as he signed the purchase contract.
We bought our house is June 2021 it’s was $450k but after appraisal it was $435k so we asked the guy to lower and he did (Seminole FL) I would say yes I have buyers remorse and also sellers because we sold our brand new home (Vancouver WA) over 2k sq ft beautiful home 🤦🏼♀️ and bought 1959 home because of location and 10 minutes from the beach(my husbands dream) unfortunately our payment went up $700+ in last 1 1/2 😬😱 so our payment went from $1,786 to almost $2,400+ like you said an average American can’t handle extra $400 expense but we have $700+ expense ohh and our electric bill in 70 degrees weather is $287 like how? Florida just makes me mad the bills and FEE FO FA fees crazy fees for nothing 😡🤦🏼♀️ yes we have homestead and conventional loan, also our home is at 3.25% I get it person who bought and remodeled our house for $260k and we bought it for $435k so yes our taxes went up first time $319 so payment went right away from $1,786 to $2,100 🤦🏼♀️ but it went again up this month $372 that’s 18% more from our month mortgage of $2,100
Here in Vancouver Washington we had brand new home no crazy taxes or high electric /water bills
Ohh and I forgot to mention no good paying jobs like how do natives survive their?
that electric bill doesn't sound right, maybe the HVAC needs a cleaning/tuneup or replacement, ask an electrician to check things, maybe the water heater has gone wanky. good luck
Your bill sounds super high. I have electric and gas through Tampa Electric it’s 200$ a month. You may need some insulation or window and door weatherstripping and caulking.
Tampa electric is cheaper than Duke always unfortunately you can’t get Tampa electric everywhere in Fl
I think most wealthy people who moved here either didn't need to work or came in w/remote jobs because prior to having a superstar governor, the median household ANNUAL income in FL was $57k so really most people wouldn't qualify for most of the homes on the market today- in any major city for sure.
@@amandathomas784 I have Duke now and in FL, cheapest electric bill compared to up north.
Florida sun looks so good. We are in ice 3 days now. WWEEEEE
Its not warm, it is HOT here right now 👍
After watching your videos we finally sold our one bedroom condo in San Diego and moved to our new home close to the beach in central Florida .
Probably top of the market and a dollar for dollar exchange. Keep the videos coming. Thank you Mike.
That is awesome!
I bought in late 2020 and paid $5k over asking, but they paid closing costs. I still think I paid more than I should have, but not nearly as much as some people were paying in my area! The inspector overlooked the windows which costed me $8500 just 1 year into home ownership... On a good note, my credit was a little rough but I still managed to get a VA mortgage at 2.75% fixed, so my payment is $875/monthly with insurance. I think I did well for my first home and I don't know anywhere else I can live this cheap. Don't know if that rate is ever gonna be back though, just doesn't seem feasible.
good deal. but of course you can live somewhere else that cheap. and of course rates could go back to that number. and of course houses can be cheaper than 2020. and of course this won't be the last $8500 you drop on the house.
best of luck.
As much as it sucks to pay over asking, you have a very low monthly payment and as long as you hold on to that, and don't go beyond, hopefully you can start saving and investing having it easy on the house payment.
@@MichaelBordenaro You're reading my mind! I am 44 and have mainly wasted my money my entire Ife. I am starting to put money into High Yield Savings accounts and opening CD's etc. I am overwhelmed by the stock market but I'm gonna take the plunge soon. Your channel is amazing and it's cool to hear from you. Thanks for the comment and I will definitely take your advice! 👍
@@Bendover-s3b Thanks for your response! I am going to start exploring things like you mentioned! 👍
Love the content keep em coming...very informative...glad i listened to yt folks like yourself looking for next rental...bought one last year and asked for a price with inflation of 15% and they caved ...winning and not underwater
11:32 I guess a good way to make this point would be to take the 2021/22 prices and plot a monthly payment. Then take nows prices and plot it. Eventually, it if was cheaper at some point the lines would meet and there's when it becomes cheaper. To prove it could happen, use the last housing crash data.
Thats intersting idea
Finally, a video which calls out real estate agents for price fixing.
they are to blame as well!
true.. the lower the interest rate, the more buyers pre-qualify for loan, the more competition for each listing, the higher the price. Better to get a low price even if interest rate is higher at the time, re-fi later.
You shouldn’t worry about being underwater if you got a sub 3% rate. I’m upside down on a rental property right now, but I could care less because I got a 2.75% and the home is cash flowing 700 a month after expenses.
I wouldn't care if it was investment property that cash flows nicely either! However most people buy a home, live in it and then want to sell and move up 5-7 years later.
It's sad and perhaps being cold but it's really the buyers responsibility if they overpay. Real estate is generally a safe asset but like everything else, especially larger purchases it comes with risk.
Your doing a good job, man. Don’t mind the nitpickers. I’ve been watching your channel about a year and a half now.
Thanks Ronnie, I appreciate you being here!
FOMO buyer says, "I feel like I overpaid for my house that doubled in asking price before I bought it." The rest of us thinking... NO SHIT SHERLOCK!!!
No kidding 😆
Lol
We sold in May 2022. Was a wise decision looking back. Will buy a dream house this year, expecting a huge crash Q2-Q3 2023.
A couple of times in this video, you referred to people paying over asking price for the house. To me, paying more than asking price isn't necessarily bad; paying more than FMV almost always is bad. In my experience, sellers don't mind asking more than FMV for their sticks and stucco.
That is one in the same almost always. Hardly ever is a home priced below FMV unless it has problems
I'm glad that i got outbid during the mania mid 2022. It was very interesting how peoples sentiments changed back than. We talked to my in laws and showed them the the home. They were like you should never pay the asking price. After showing them that houses went 12.5% over asking in our area they turned pretty quickly. They were like make sure you overbid enough or you will be priced out of the market by next year. House prices were going up 20% per year.... and guess what our wages only go up by 1.5% here lol.
thats going to be a very hard lesson learned for many
Thank God for unanswered prayers "song Garth Brooks"
Same thing happend to us. We offered asking a year ago, 510k plus 2 months of free rent. The house sold for 599k, 20% over asking. Beautiful house but now I think it would appraise around 450k.
Little bird is telling me that 90% of buyers in the last two years will have buyers remorse in the next 2 years lmao
Seems like they already do!
You do some excellent presentations, Michael. I appreciate your hard work in putting these together, and your honesty. I'm not looking for information that makes me feel the best. I just want the facts.....which you consistently deliver.
Thanks a lot Tom!
In Prescott, AZ, where I am waiting to buy, I'm seeing lots of new properties coming onto the market that were bought in the last two years. Their asking prices are about 10% above what they paid for the house. I'm going to go ahead and call it pandemic selling, since these houses were clearly bought in an effort to flea cities and states. With all of the low yield short term rentals hitting the market, coupled with new homes that are finished or near finished, I think we're on the verge of seeing inventory skyrocket.
Arizona is going to run out of water very soon and you will see plenty of inventory available. That’s something that nobody talks about dealing with real estate. When Southern California and Arizona go dry and it’s not desirable anymore how much do you think the homes are going to be in states nearby with plenty of water and no problems?
@@chriskillfacts I was so reluctant to move to Arizona for this reason, then I got here and the locals laughed at me when I brought it up. Apparently, no one here got the ‘mainstream media’ memo. Our reservoirs are overflowing in Prescott, Flagstaff got 62” of snow in January (20” is average), and the Rockies are getting pummeled with snow (which feeds the Colorado). When I share my concerns, the locals tell me “sure, it’s been a little dry, but we’ve got plenty of water.” Now I see it. Everywhere I go, there’s water, lol. The media sensationalizes anything that fits the climate change narrative.
That’s nothing. In Charleston people bought homes for 175-220k on average in 2020. Now they are listing them at 275-310k. They are trying to score there 100k like many of their neighbors. Sad part is some are still selling but nothing remotely like a year ago.
@@theflightsimulationexperie6894 When I say 10% above what they paid, I mean 10% on top of the peak pandemic price they paid either in ‘21 or ‘22, which was roughly $200K-$300K above what the house could be bought for pre-pandemic. Example 2019 = $400K, they bought 2021 for $650K, listing now for $725-$800K. We’re so close to Southern California that droves of them fled here and paid peak prices. Now, they think they’re going to make money or add in the commission and sell. It’s literally cheaper to buy the same house in California. These people didn’t even catch the caboose, but these realtors are encouraging high prices with sayings like “our area won’t be affected by the downturn.” 🤦🏻♂️
I think by the time summer hits many areas will see inventory levels that are close to prepandemic. That will really shake things up
I admire your honesty, humility and your good faith in addressing on real estate trends and giving advice.
I recently reviewed several foreclosures in a nice area of Indianapolis IN and they have a couple of great properties that are selling for less than they sold for brand new $/ft. Yes Austin City Limits is crashing and it’s still inflated from what it was in 2018-2019.
We just found out ours is a money pit too 😢. Asbestos issues 😮
I’m in contract for a house that has asbestos in the basement ceiling…not sure if I want to deal with fixing that!!
Oh no!
The PROBLEM: companies have become HORRIBLY dishonest, so multiple opinions, as well as knowing your OWN stuff via Home Inspector videos is a MUST. My home inspector missed TONS anyhow, so even THEY are corrupt.
Excellent video on when to buy and how to prepare to buy. Valuable information.
Thanks!
Great video as always.
Thanks again!
A lower interest rate is obviously preferable, but in my years of investing in real estate, I have never cared about the eventual interest rate I got. I only ever cared about the purchase price and as a result, I had interest rates exceeding 10% on some properties, but I got them so cheap. It didn’t matter. Another benefit of those high interest rates was it gave me every incentive to not buy a five dollar cup of coffee when I could throw that extra money at the end of the month at the highest interest rate, mortgage, and while may be throwing an extra few hundred dollars at a mortgage that is $100,000 Doesn’t seem to make a dent, if you are saving 10% or 12% interest on that extra $300 every month, that is like getting a 10% to 12% return in the stock market or in any other investment. No matter the size of the mortgage. I have always made every effort to pay them all off in less than 10 years and the overall savings even though the interest rates are high are phenomenal and then as a result, I have a fully paid for property that I bought at an amazing price each time.
Thats exactly why high interest things can be a good thing because it brings the price down
10% like 1990..
We are planning to relocate and this craziness of buying is still going on from what I'm seeing. We are looking at NC but I keep seeing people jumping for properties and paying exact price without any negotiations! When the price is double from 2/3 yrs ago. I guess NC is a hot spot for those northeastern people relocating. We will have to wait it out!
Check the market trends in your area to see where its headed
It says "salesperson" on the license. Buyer beware. No sympathy for these buyers who bought recently. We had a crash before and it's like that crash was 150 years ago and not 15 years ago; a very short memory span for many...In my state, it is cheaper to buy than to rent in Cumberland, MD. No jobs there buy if you can work at home full time, not a bad spot; there are mountains and halfway between Pittsburgh and DC. You said Baltimore and I can see that(only in the city limits though).
Facts!!! Good show brother 👏
Thanks!
Yes the struggle is real!
Thank you Michael 😊
For all of you who overpaid. It won’t matter in 10 years. Dont bail - wait. Don’t make the same mistake getting out as you did getting in
The problem with me and many living in Colorado state, the rents are high. Just for a 2 bedroom run about 1600 to 2200. All i am doing is to get a good offer on a house and have owner pay for all cost. Also looking into getting house for a cheaper price.
In regards to o.verpaying by $50k.. assuming they dont find the right place to buy and if they are spend $35k a year on rent, and end up not buying for 2-3 years from now.. they are still net ahead on saved rental. i agree ownership has additional costs as well, but it's just another factor to consider.
It is something to look at but like you said there is a lot more to ownership than just the monthly payment
The median mortgage payment is $800 more per month than a similar rental home. That is a $9600 savings. Overpaying for today's median priced home of 400k and in 2 years the home drops in value 20% on a median home is a loss of 80k. If you had financial trouble and had to sell with a realtor at 5% commission you can tack on another 20k. So essentially by renting and waiting for the correction a person would keep from losing 100k in 2 years time which doesn't even include closing costs of original purchase. The first few years of a mortgage is front loaded on interest so that is no different than "throwing away your money on rent".
Great content! I saw this as well and now I'm waiting around to snag an investment property when the prices get right
I am doing the same! Being patient
Michael are you not going to mention anything about the .25% mortgage rate hike, the Fed just announced!!! 2 hours ago!
It was too late since I recorded the day before. I will mention it in tomorrows video. I am always a day behind in that regard.
Probably recorded this before the hike.
@Michael Bordenaro love you my man! Keep up the amazing work 👏!!!
I live in S. California. Yesterday, I went to an Open House for a 2000 sq foot house with a large yard. The list price is $900,000. Over 100 people inspected the property. The house will sell for $1 million notwithstanding the high interest rates. Real estate is local.
Saw this 6 days ago “Florida dominates list of most overvalued housing markets”
by Paul Owers , Florida Atlantic University
that is correct!
Lol you tell the people where the housing market is headed and they accuse you of being pessimistic 😂😂😏
Do people really think properties only appreciate? this isn't NASDAQ people, suck it up it will come back.
Micheal you're doing great work. I agree with your analysis. Don't jump in without the research! So many mortgages will be upside down in the coming year. I'm staying put.
The markets are still trending down. The % of dissatisfaction among 2020-2022 buyers is likely to be trending upward from today.
Agreed
We ALL make mistakes! You, at least, are honest to admit a small mistake. Your information and advice are priceless! Thank you for your work!!
You are so welcome! If I make a mistake I have no problem saying so
You’re all good we all make mistakes! Appreciate your content!
Realtors here in the Raleigh Cary area are still encouring people to buy even though prices are high (although softening) and rents are equaully high . Good points on Redfin too but look at the graphs and month to month vs the Y over Y. Thanks Mike.
Absolutely a not people are touting that prices are still up yoy in many places and give it a few more months, that wont be the case anymore
Just sold a house in California, escrow closed January 27, 2023 and as seller I had all professional inspections done prior to MLS listing to disclose to serious buyer prospects. All minor plumbing and electrical fixes done. Minor roofing repair. Dropped the price 5% after 30 days and got full adjusted price with 30 day closing. This couldn't have happened without all the upfront preparation. New oven and windows screens as only concessions.
Well that upfront prep should be done when selling a home anyway....
I agree 💯 the point was that 18 months ago seller's often didn't and inspections often waved by purchasers.
Even now, the only way this thing stays a float is if Realtors can direct buyers to New Home construction because if that boat don’t stay a float, this whole housing market tanks
hilarious. if we didn't build one more house for a decade, you think house prices would crash...
you are definitely a supply side economist!
it's the reason the new house market crashes that matters. not whether it crashes.
Great video! Great advice!!!
Thank you very much Jeannie!
I love those tall privacy hedges @ 4:42 . What are they does anyone know? 🤣. Love the walk today Michael. I agree. I can’t believe the people that went over board. I called it too. I knew this would happen. Going to be a tough couple years at least for those who had FOMO.
Those are Ficus hedges. They do get a white fly disease if not sprayed.
@@markmansel9899 I thought they might be but wasn’t sure. Really? White fly. Ugh, I hate spraying insecticides. I know what they are, the white fly. Thanks Mark for the info. 👍 Appreciate it. 🤗
No No No. Don't Over Pay! :-).
Hi Michael, not sure if it has been pointed out yet, but the Case-Shiller is an index with a base 100 set on Jan 2000. So this 298.99 number is not a number in thousands dollar. But the ratio between the prices on oct 22 compared to the ones from January 2000. From this chart, prices are now x2.9899 higher than in Jan 2000. Anyway love your content😀
maybe this time is will sink in. yes, if you see 2000=100 those are not absolute numbers but a scaled (usually down) number.
I couldn't compete with these desperate buyers. Price wars, etc...
Great video Mike! Thanks for the Redfin tip!! 👍🏽👍🏽
No problem 👍
Thank you
They bought a big boat anchor....and RE agents possibly giving bad advice and not asking thier client's to cool their jets....they too are open to litigation....going to get very ugly....people pay a RE Agent big bucks to give good sound advice and the realtor should of had the buyer sign near the end that the RE agent advised against waiving home inspection etc ....stuff like this should force the RE agent to decline representing client....
I tend to agree but then remember their professional schooling is 63 hours of classroom.
my barber has 1500 hours school to cut my hair.
I'm not sure how liable someone is when there is 63 hours of class involved.
Absolutely. Having dealt with a ton of agents here in Miami, I can tell you firsthand. Many of them are very unscrupulous people. I've had them steal clients from me, lied to my clients about listings or the transaction as well as lied to their clients to make a deal. When I first entered the business, I was only 21 years old and quite naïve thinking I will be working amongst professionals.
Ty
ty
Didn't see that coming.
Hardly surprising some Realtors haven't even bought a home themselves, young kid's pass an exam and then let loose on the unsuspecting public. For God's sake people if your Realtor doesn't own property walk on by.
That stone cage rock wall is interesting looking
A big problem with the landlord that you mentioned who started $12,000, went up to $20,000, and drops down to $7000 is that their erratic history is public knowledge. Who on earth would want to landlord who is so screwy?
Really! You rent the place for 7k for a year next year they say they want 30k 😬
@@MichaelBordenaro That house is not a "serious rental"--it's some foreign tax dodger parking his cash who doesn't care if he rents it or not. He's hiding his money (successfully) from the tax authorities back home, and that's what counts.
You said the best bottom line, nobody’s holding a gun to our head. When do people take responsibility for their actions if they don’t know what’s going on in the world and can’t see past their emotions it’s their problem. Plus if we have no instinct for a real estate agent that’s working for us. That’s also on us.
Lower Home values, in most of those cities you mentioned, are HIGH crime areas.
Great Video! I learned so much from your channel. Love your voice btw. :)
Thank you!
Please look into Ft Myers, prices there are ridiculous high
I just walked away from a house after having it inspected by multiple experts, including a whole house, termite, foundation, and roofing inspection.
The person who'd purchased the house before me did not have any of this done, to her lasting regret. She's going to take a huge loss on the sale.
Foundation: Solid
Roof: Needs a new roof on the house and detached garage
Sewer line: Collapsed, needs to be replaced from the house to the street
Termites: Active infestation
Electrical: Breaker box needs replacing
HVAC: Needs a new furnace and central air
Driveway: Needs to be resurfaced because it's crumbling
Total cost of work: $35,000-$40,000
I was willing to do the work to rehab the house but walked away for three reasons:
1. Active termite infestation, which had gone on at least one year--the likelihood of structural damage in such a case is high and I couldn't get a structural engineer to inspect because they're scheduled months in advance in my area
2. Woman living in the house has four dogs that she keeps inside *all* the time and they urinate/defecate on the hardwood floors (she has some "issues")
3. The seller's agent is a lying so-and-so and I just couldn't deal with him--most buyers' agents in the area refuse to show any houses he lists and after dealing with him, I know why--he tricked this not-all-mentally-there lady into buying this house when he knew damned well it had massive, multiple problems
DO NOT WAIVE INSPECTION. Always have these items inspected:
1. Whole house inspection, including a radon test, mold test, and sewer scope
2. Followup inspection of roof by expert if indicated in the whole house inspection
3. Always have the foundation inspected by an expert, even if the whole house inspector says it's ok
4. Termite inspection
THE SELLER'S DISCLOSURE IS MOSTLY WORTHLESS and should be categorized as fiction. Yeah yeah yeah, you can sue them if you can prove they lied on the disclosure form--good luck with that.
DO NOT BE AFRAID TO WALK AWAY OR RENEGOTIATE THE PRICE. Had it not been for the active termite infestation, I might have gone through with the deal if we could've renegotiated the price.
The house is now under contract to a different buyer who is a professional investor/contractor who can rehab it. I hope he does a good job; it's basically a nice house that was badly neglected.
right, the investor will probably hide the damage and then flip lol
It's amazing how many people think termites are no big deal and they act like it isn't an issue. It's like living in a horror movie with eating monsters crawling between the walls
@@wildflorida8007 Many houses get termites, the key is early discovery and eradication to prevent significant damage. This house has sat vacant for two years and the pest inspector said there was a potential for significant damage--I'd have gotten a structural engineer, but they all said they were booked for next three months. Termite damage can be hidden. You have to have an annual inspection for termites--they only charge $75 in my area and it's worth it. A termite treatment can cost $1,000 but lasts for five to ten years.
@@Falconlibrary the problem is is you have no idea how often the previous owners had the home inspected. It's too bad there's not some sort of X-ray equipment or something to see through the walls to see what's going on
@@Falconlibrary they may have had a house for decades with termite infestation and because they want to sell it they have it tented 🎪 a few months before and say there's no more termites or something to that effect
One more thing, the reason for the 3 month lag in Case/Shiller (currently reflecting November) is because the houses have to close before they can be counted. A house could easily fall through after it is sold and yet that number will be counted in the median. I like Redfin's data, but only for things like months of supply or price drops, not for median sold prices. If you follow median sold prices, you will be misguided and dumbfounded, just like you would have after the last housing crash.
Median sold price for redfin are homes that have already sold, just like cash schiller. They count pending homes as well, which are still under contract
if you follow median anything, you will get an estimate only. you need the distribution to interpret anything.
for example...
the median family net worth is 121k. the average family net worth is 749k.
yet we get quip after quip on videos about who can afford an 800k house?
back to house data... anyone can sell a house for under price. or not market. and that plays a factor. I had a neighbor sell a 600k house for 300k and another sell a 550k house for 450k.
@@hvaball150 Neither the median or the average will tell you the direction prices are going. Case/Shiller is based on a real change over time and is the best tool for determining the direction of house prices.
@@lizardking8388 if it's great, then which way does Case say house prices are going. I just want to know. down or up. pick one.
@@hvaball150 Down. Case/Shiller has shown the last 5 continuous months of decline. Note that it lags by 3 months, so we don't know anything past November. Now the decline in November wasn't that much, so Decembers number could be unchanged or even a little higher as prices never go down in a straight line because of market shocks, such as rates rising/falling. Buyers tend to foolishly jump in when rates drop a little. More buying for a short time tends to slow or reverse the fall, but it's not sustainable. House prices will continue to decline without the cheap credit that drove it up.
I can’t believe people were buying so recklessly!!
Lol agents being honest. I bought a condominium the agent owned in the same complex. The condominium was self managed. This agent did not disclose.That is a huge problem, when your agent says your place has no water problem. We first had to take down that self managed group. 13 years later we are now professionally managed. We are finally just starting to deal with 13 years of bullying & hundreds of thousands of dollars of damages. This cost us dearly, our health & financial being. At least we get to be proud that we helped our neighbour's not get screwed.
The real kick in the teeth. That agent was partvof the self management.
Don't you love it when you ask if there are any specific problems and they say "Not that I know of"
Have you said anything about the commercial real estate bubble?
I havent talked about it but I did see a story on it
Excellent videos Michael! I'm looking to buy my first house and these videos make a lot of sense and reaffirm what I've been thinking. Good Work!
Thank you Michael for your practicality of sharing the reality of the Real Estate Market. Also impressed you presented both sides of lawsuits against Agents in an unbiased way. Just out of curiosity, are you still representing Buyers and Sellers?
You’re welcome Harry I’m doing my best! I still do a few transactions per year with past clients, but I mostly refer everything out now as the main focus is making the next video
Hi Michael you are doing a great job with your videos take no notice of your critics, most would not be able to walk 100 yards, some would struggle to walk to their car. As for the Data so out of balance it is compiled by people who just look at the screens and have not been to any developments or visited any properties in the last 6 months.
I bought my house in 2014 and as interest rates went down, I refinanced. I now pay 2.5% interest. I don’t think I’ll ever refinance that rate, because the rate has gone nothing but up since I refinanced. I keep getting e-mail and notices from my lender and previous lenders to refinance and take out equity, I laugh.
You should keep that note forever, it will likely never get better, and don't pay it off early
I'd keep time between that prediction and reality. it was just over a year ago we had those rates.
as long as a six pack of beer doesn't cost 3 hours of labor... or even 1 hour... there is room for a lower rate potential.
just bought a cool house in pittsburgh. very climate safe, houses are affordable, so it felt like a no brainer. especially when the house wasn't polished/staged well, so went under market value
There is a reason California has Market Advisory Disclosure that buyers and sellers sign in a transaction to prevent these types of frivolous lawsuits
Hi Michael, do you know how many unrelated people can live in a property in the Miami - Dade and Broward Counties ? Like househacking for living with roommates. Thank you
They do have "household" limits but its just another one of those laws that arent enforced
Grey wife beater Mike in the streets 🤣👌🏽
I used to have packs and packs of those ready to go for those hot Miami summers
haha needed it today, it was HOT for February!
All the cities that you mentioned, that are still good places to buy, all have high crime rates.