Making an Offer on a Home

[Ja Rhule]

I’m under contract on new build in Fort Mill.  My wife and I pulled a trigger.  There is a serious shortage of building materials.  I expect home prices to sky rocket in next few years.

[thefuzz]

20 hours ago, Captroop said:

Hey, it was in the contract we signed. They had 3 days to respond. The contract clearly stipulated, bold and underlined, that no response is considered an acceptance of our addendum.

Shew...man, I hope that works for you.  That is something that I have never heard of before.

Keep us in the loop on how it shakes down.

[LinvilleGorge]

11 hours ago, Ja Rhule said:

I’m under contract on new build in Fort Mill.  My wife and I pulled a trigger.  There is a serious shortage of building materials.  I expect home prices to sky rocket in next few years.

You may be right, but I'm hedging the opposite direction.

What Is a Bubble?

A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst."

 

Typically, a bubble is created by a surge in asset prices that is driven by exuberant market behavior. During a bubble, assets typically trade at a price, or within a price range, that greatly exceeds the asset's intrinsic value (the price does not align with the fundamentals of the asset).

[Ja Rhule]

3 hours ago, LinvilleGorge said:

You may be right, but I'm hedging the opposite direction.

What Is a Bubble?

A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst."

 

Typically, a bubble is created by a surge in asset prices that is driven by exuberant market behavior. During a bubble, assets typically trade at a price, or within a price range, that greatly exceeds the asset's intrinsic value (the price does not align with the fundamentals of the asset).

The rate is record low and inflation is about to blow up with these stimulus payments.  Everyone is moving to Charlotte.  Corporations are flooding Charlotte due to cheap labor and cheap house cost.  There is no bubble.  You need to put down 20% for conventional loan now.  Only prime buyers really buying homes now.  Charlotte also jacked up tax values of all homes last year which contribute to rapid increase.

[LinvilleGorge]

35 minutes ago, Ja Rhule said:

The rate is record low and inflation is about to blow up with these stimulus payments.  Everyone is moving to Charlotte.  Corporations are flooding Charlotte due to cheap labor and cheap house cost.  There is no bubble.  You need to put down 20% for conventional loan now.  Only prime buyers really buying homes now.  Charlotte also jacked up tax values of all homes last year which contribute to rapid increase.

So you're telling me there are a lot of short-term factors driving prices up rapidly? 

Yep, sounds like a bubble.

[Ja Rhule]

24 minutes ago, LinvilleGorge said:

So you're telling me there are a lot of short-term factors driving prices up rapidly? 

Yep, sounds like a bubble.

One of the lowest interest rates in history is designed to stimulate economic growth. There is no bubble.  We are almost $30 trillion in debt... we are hitting record inflation.  People who sit on cash will lose some money.

https://www.cnbc.com/2020/10/14/inflation-comeback-is-pervasive-and-persistent-lakshman-achuthan.html

[LinvilleGorge]

18 minutes ago, Ja Rhule said:

One of the lowest interest rates in history is designed to stimulate economic growth. There is no bubble.  We are almost $30 trillion in debt... we are hitting record inflation.  People who sit on cash will lose some money.

https://www.cnbc.com/2020/10/14/inflation-comeback-is-pervasive-and-persistent-lakshman-achuthan.html

Historically low rates for the better part of a decade now will be one of the biggest factor when people look back on this current bubble.

Never been a better time to refinance but I honestly think it's a dangerous time to buy. We'll see how it all works out.

[Inimicus]

On 10/13/2020 at 3:50 PM, Captroop said:

We put in our addendum to the offer that they would have a licensed roofer inspect and they would do whatever remediation was suggested at their expense.

In total, we made 11 other requested fixes based on our inspection and a 1 year warranty. Expecting a negotiation we wanted to have a couple items we could drop. Interestingly, because their clueless realtor missed the deadline to make a counteroffer, they legally have accepted our proposal unconditionally, and are on the hook for ALL the fixes!

So now the only question outstanding, is can they find a licensed roofer, who will look at the cut corner roofing job and say, "It's fine. No remediation needed." Because that's their only out. Otherwise, they're on the hook to pay for the fix, whatever it is, up to and including a new roof.

 

So, kids, here are the 3 big takeaways I've gleaned from this experience:

• Get a pre-inspection
• Get a realtor who is profoundly detail oriented, and knows real estate law like the back of their hands. No exception.
• Don't get your cousin to repair your roof. Seriously. It was his cousin.

The National Roofing Contractors Association is a client of mine that I have a strong relationship with.  PM me if you need a recommendation or a string pulled.  Dunno if I can get you much but I can reach out to them if you're feeling unsure about your situation.

[LinvilleGorge]

On 10/15/2020 at 3:46 PM, Ja Rhule said:

One of the lowest interest rates in history is designed to stimulate economic growth. There is no bubble.  We are almost $30 trillion in debt... we are hitting record inflation.  People who sit on cash will lose some money.

https://www.cnbc.com/2020/10/14/inflation-comeback-is-pervasive-and-persistent-lakshman-achuthan.html

150 day mortgage delinquencies just hit a 20 year high. Double what we saw in the Great Recession. 

[Ja Rhule]

6 hours ago, LinvilleGorge said:

150 day mortgage delinquencies just hit a 20 year high. Double what we saw in the Great Recession. 

Not in NC. 

[LinvilleGorge]

29 minutes ago, Ja Rhule said:

Not in NC. 

I'm honestly not paying any attention to NC. I'm not buying here. Too hot, too many people.

 

[Ja Rhule]

51 minutes ago, LinvilleGorge said:

I'm honestly not paying any attention to NC. I'm not buying here. Too hot, too many people.

 

NC is extremely hot.  So many corporations are moving here and it bring too many people from Cali, NY and Chicago.

[LinvilleGorge]

18 minutes ago, Ja Rhule said:

NC is extremely hot.  So many corporations are moving here and it bring too many people from Cali, NY and Chicago.

I wasn't talking that kinda hot. The temperature. It's too damn high.