The Big Short, Volume 2.

This is unsustainable. No one took a lesson from 2008. I hope to God the bubble pops sooner rather than later. I am piling up cash tenable currency.

Just another big bail out and higher taxes, nothing to see here.

This is not comparable to 2008.......the banks are not leveraged like they were then. They are much tighter giving credit to home buyers..... where is the bubble your planning for?

100% agree Marc! Not the same as 2008. Too many uneducated folks chiming in on this topic.

Uneducated? I bet Mr. HuntnFly knows a thing or two about real estate...

I have been hearing about a lot of no down etc. 100% financed stuff lately, makes me shake my head.

if the "foo chits"

scams, in this hot market most sellers are not even entertaining such nonsense.

If the lender approves the buyer the seller doesnt have a clue what they are putting down, at that point its cash to them as long as it appraises etc.

What is unsustainable about it? The coasts have had these prices for years and years. The difference now is the money is flowing into the middle of the country and the south. The level of appreciation we are seeing will eventually level off, but values will likely remain pretty consistent. Even in 2008-2010 home values in Texas didn't take a big hit.

There's a lot of money out there.

A vibrant TX economy saddled hordes coming in spell a double digit inflationary pressure on the local real estate markets. 2008 was much a result of federally backed (ie: guaranteed) mortgages issued with reduced underwriting (remember stated income) in an effort to spur home ownership.

Anyways & personally, I don't see how long it can last. Not sure if a seam is going to rip or if there will be a more minor correction. I do know this, what goes up must come down.

I concur.

How WRONG you are. Under contract on a property as we speak. Close on 4/11. I know everything about the buyer we chose including their down payment and who their lender is.

The rules for lending are completely different than 2008. Back then I got a home mortgage off of stated income, credit report, and employment contract. Now even with large money down they want everything but a blood sample and the rights to your first born son for a home loan.

The purchase contract states the amount down, loan amount, etc, so the seller does care. Also, an all cash buyer doesn't need an appraisal and you can close in 7-14 days if the title company is fast.

Several are talking about having their values locked in but in my experience that doesn’t really happen. I was 66 when I bought my present house the appraisal district said my value was locked in but my taxes go up every year because property values go up and the law allows the district to raise the value by up to 10% a year. To me my house is on a 10% a year increase.

If you are 65 and you have your house homesteaded the taxes freeze. I bet you don't have it as homestead exemption, or you haven't filled out the proper form.

At 65 years old, you can file to freeze the school portion. The remainder is subject to regular and steady increases.

The appraised value will continue to climb, but your bill will only increase on the "non school" portion.
Where I am, the school portion is close to 75% of the total tax bill, so only 25% of my tax bill sees incremental increases.

Marc

Gotcha, I didn't realize that was the case. Thanks for the clarification, Marc.

The amount of financing is on the first page of the contract, plus another addendum. In these multiple offer situations it is the seller that chooses the offer.

Highest price isn't always what is chosen. If you are the seller are you going to take the offer from the buyer that is getting one of those 97% loans if he is only a few thousand over the buyer that is borrowing 80%, 50%, or paying CASH? Remember, with financing it has to appraise.

https://www.trec.texas.gov/sites/default/files/pdf-forms/20-14_0.pdf

Depends, which one has a contingency for sale of current property? If the the person putting down 20% or 50% has a contingency, then the person financing 97% may be a better option. Would you immediately toss out an offer that’s 100% financing if it’s a VA loan?

Agents are supposed to present all offers. It is the seller's choice. Agents can only make recommendations.

If the high loan amount or 100% VA or USDA is considerably over what the home would appraise for it is likely just wasting the seller's time.

Our office doesn't usually recommend taking offers with the contingency of sale of current property. It puts the listing in "Active Contingent" on MLS, meaning it is considered "Under Contract." A lot of agents pass over those when searching for properties. It all depends on the circumstances too. If the buyer wanting to put a contingent offer is in a highly marketable home then maybe so.

A few years ago my client in Farmersville took a contingent on sale of other property with a "Kick Out." The other property was in a great area in Lavon. A week later somebody driving by my client's property saw it, called, looked at it, and made a 100% cash offer. The seller activated the kick out and sold it.

I would make an exception in this case as long as there were no contingencies.

The guberment does not finance above appraisal so the seller would have to come up with the difference in cash.

Since everyone knows everything a question. A 150 acre property next to me sold. They are going to divide it and resell in say 10 plus acre parcels. This place has direct access to over a quarter mile of county road. Now a 140 acre place also next to me is being sold to the same party that bought the first place. The 140 acre place travels through mine to access it. Now since the two places will be owned by the same person and can access the 140 acres through the 150 acre place can I now lock the gate so they can no longer travel through mine? Oh, and the 140 acre place does not have a recorded easement to travel through mine.

I think you should lock the gate immediately and if asked say that no one has ever once traveled through that gate to/from the other property.

If not a recorded easement, pull the plug. Ex FIL did this up in Brown county year's ago. Would consult a real estate attorney.

Honest don’t have a clue but someone driving through my property at all would upset me enough to lock the gate if their wasn’t a legal easement on record. Nobody wants to be that JackWad guy causing problems but that would be a no brainer for me, it sounds like your about to have other issues in the form of a lot of new neighbors anyway lol.. At the rate smaller properties are being busted up and sold off in chunks in a hundred years their won’t be many small properties left but we will be dead and gone so history will continue to repeat itself and the next group won’t know the difference.


FYI I’ve enjoyed reading this thread, I know very little about real estate and this has opened my eyes as to what’s occurring right now. Crazy times,,, I’d like to know where all of these younger people tossing all this cash around got it from myself, more power to them and I’m proud they can do it but I guess I’ve lived a different life than them, I’ve had to bust my hump to make it to 47 with what I have and I still don’t have the liquid cash to plop down $500,000 like it was nothing. I’ll continue to read the posts and take some with a grain of salt

You can do an appraisal waiver in a lot of cases these days. I went that route when I sold my house a few months ago. The offer was well beyond what it would have appraised for.