BG Homeowner and DIY Thread - Out of the Basement Edition

[archibaldcrane]

I fucked us over I think. My agent recommended a rent back with our buyer, and it sounded great so I said yes. Now I find out you can only legally do a rent back for one month.

We could end up homeless, guys. I totally fucked up about doing this.

Isn't the sale of your current house contingent on finding a new one?

[Ksandra]

Isn't the sale of your current house contingent on finding a new one?

My agents insisted that getting rid of the contigency will help us in our bids. In order to do a rentback also means no longer being contingent.

I was totally find with doing a rent back since our buyer seems really flexible. Apparently he is all for extending the rentback as long as we needed. But I found on from our agents AFTER the fact that by law a rent back can't be longer than a month.

They keep telling me I'll find something before then, but I really don't think so.

I know zillow et. al. seems like their are a lot of homes on the market, but that is a lie. 1. Zillow is severely outdated and doesn't always get notified when a house is under contract/sold. 2. Zillow is listing mello roos homes, too. In SCV most of the mello roos add $400-$500 a month to your mortgage. We can't afford to do that, and quite frankly, wouldn't want to do it, either.

To give a picture, when we look out our MLS website, there are 7 homes in the entire city that fit our criteria (single family home, $650k cap, 3+ bedrooms). 3 of which already have multiple offers. 2 are also contingent on finding a home, so we can't really use them.

This is about where it's been at the last two weeks.

The home THAT IS SLOWLY SLIDING DOWN THE HILL. Found a buyer within 4 days 15k over their asking price.


It's that insane.

There is a home we got a counter offer on for "best and highest" and we may try to overbid on it somehow, but we don't know what to put. And, that contract may not go through anyway because for some dumb as fuck reason the house has solar panels that are a $293 a month purchase 30 year loan and it's only 2 years in. Who the fuck pays that much for solar?

Sucks because the house is really nice and what we wanted. But, it does need cosmetic repairs, and if we bid too high we wouldn't have the money to repair it. And that solar thing sounds really stupid. Like really really stupid. And from my research there's no way out of it.

I just honestly do not know what to do at this point. I guess in desperation, I'ma say fuck it and start posting the houses. I may delete the links later for safety purposes. But I am legit no good at bidding. I can haggle to make prices lower, but I am a complete idiot about how high to go on a bid. So here's the solar panel home:

https://www.zillow.com/homedetails/2...20191537_zpid/

Note: pictures look nicer than some of the stuff. It needs new floors, paint, doorknobs, etc. Minor stuff, but still needed.

How much should I bid? Don't tell me "what you feel comfortable with" because I am so stressed to the max the numbers don't matter anymore. I need guidance.

As a reminder, we will only have 10k cash once everything is said and done to go over what the banks would loan us based on the appraisal.

And that sucks because the 10k could go towards the repairs, but it is what it is.

(Note, the two white rooms in the back are nonpermitted, so the house is really about 1800 sq. ft. if you include them.)

[archibaldcrane]

$239/mo for 30 years for solar is insanity

[Melena]

God damn, that's almost 100k just for solar. I thought it was supposed to be cheaper than that?

[archibaldcrane]

God damn, that's almost 100k just for solar. I thought it was supposed to be cheaper than that?

It's way cheaper than that, they got spectacularly ripped off

[TsingTao]

Yeah, hard pass. Don't pay off their stupidly overpriced solar.

[archibaldcrane]

That house is reasonably priced otherwise though. Also you could probably refinance their solar loan at a better rate and make it cheaper (or just pay it off).

[archibaldcrane]

For a mid-sized solar panel system that would cover a $250/mo electric bill on average, here's Tesla's quote on a system with a 6% 20 year loan.

[archibaldcrane]

The tricky thing is you get the incentive in a lump sum (30% of the cost) but then pay the pre-incentive price on the loan (unless you refi and fold the incentive back in)

[Boyiee]

Ksan I'm not reading all that but get a new agent.

[Ksandra]

So, they were able to get the contract, and the seller’s agent was incorrect. It’s a 20 not a 30 year loan at 4.99%. Their electric bill is about $6. And they used some purchase incentives to buy a new hvac so that is band new.

We’re seeing two more homes tomorrow, but if they fall through We are gonna counter on that house.

Does 600k sound still too low? Too high? I am no good at this.

[Ksandra]

Ksan I'm not reading all that but get a new agent.

What are the red flags you are seeing?

[Boyiee]

The contingency for one, trying to put toddler in crib so didn't go through everything. Your lawyer would kill that guy.

[archibaldcrane]

So, they were able to get the contract, and the seller’s agent was incorrect. It’s a 20 not a 30 year loan at 4.99%. Their electric bill is about $6. And they used some purchase incentives to buy a new hvac so that is band new.

We’re seeing two more homes tomorrow, but if they fall through We are gonna counter on that house.

Does 600k sound still too low? Too high? I am no good at this.

20 year at 4.99% is more reasonable.

Offer 605k. The house has 4 bedrooms, is good size, and you are desperate. You probably still won't get it but.

[Ksandra]

20 year at 4.99% is more reasonable.

Offer 605k. The house has 4 bedrooms, is good size, and you are desperate. You probably still won't get it but.

Ok thank you. I'll give it a shot if the other ones are no good.

[archibaldcrane]

Ok thank you. I'll give it a shot if the other ones are no good.

Give it a shot even if there's another good one. You can make more than one offer at a time.

[Ksandra]

Give it a shot even if there's another good one. You can make more than one offer at a time.

This is illegal in our area without specifying it in the offer, and no one in this market is going to take an offer if it's known you put in multiple.

[archibaldcrane]

Never heard of such a thing. Bleh.

[Corrderio]

Pardon my ignorance but what exactly is PMI? A penalty of sorts if I don't have the 20% for a down payment? Also would all banks/lenders have a PMI?

[archibaldcrane]

Pardon my ignorance but what exactly is PMI? A penalty of sorts if I don't have the 20% for a down payment? Also would all banks/lenders have a PMI?

Private mortgage insurance protects the lender in case there's a real estate downturn and you default on your mortgage and the property the lender has as collateral is worth less than the loan. Most lenders require it for loans with less than a 20% down payment, and you pay PMI until you have built up equity worth 20% of the loan amount.