Housing will be volatile like the stock market

www.yahoo.com...

When institutional investors buy and sell properties, the mindset is different from a traditional homebuyer or seller.

An iBuyer is going to price ahead of the market and mark it down every week until it sells [and] makes the market more like the stock market, more volatile, more up and down,” Kelman said. “If you've lived in a house for 30 years and raised your kids there, there's no way you're going to mark it down after two weeks on the market.”

“[REITs and iBuyers] are going to liquidate their inventory much faster, and they're the ones causing a correction more than anything,” Kelman said. “It's good when home prices go down.”

They always tell us before they do something.
This is such an interesting article. Investors are buying huge chunks of the housing market. Some reports say up to 18% of sales are investors.That is an incredible amount.

This article is leaving out a lot of meat! What happens is investors scoop up properties (often single family now). They drive up prices because new buyers can’t compete with investors with massive immediate funds and all their tricks. These investors do the bare bones to keep these places running. Taxes go up for everyone and then…..when things get bad they start dumping these places. Taxes do not go down, do they? When this happens all over there is no where for people to move because they would be selling only to downgrade, and who would do that?

We aren’t talking about stocks or investments, we are talking about your house, your home, your neighborhood.
This is the biggest scam being placed on American Families. How did we let this happen?

a reply to: JAGStorm

Here is one of the “Games”.

When I had to sell my parents house the very first offer I got was from an investor. I’m not new to real estate and I know these investors are in cahoots with a lot of realtors. Pay ATTENTION youngin’s here’s how the jig works:
Inexperienced sellers put house on the market with realtor
Realtor tells investor they have something in the pipeline
Realtor tells inexperienced sellers that the first offer is “usually the best” —— that is horsesh*t! (Look this up, realtors houses stay on the market longer than average!, because they know first isn’t usually the best)
Sellers get an offer that is well below your asking from investor, it isn’t horrible, but not what you expected. It comes with a huge sense of urgency. Don’t FALL for it! (Offer might be high in super hot areas, but they will play this same game)

I was selling it AS IS, but wait, that won’t necessarily protect you. This offer came in with a request to inspect right away. Don’t FALL for it. (I told them to get lost at this point) But here is what happens.
Inexperienced buyer says sure get the inspection. Now keep in mind no house is perfect, and an inspector can and will find something. Once they find something (oh it will be an expensive something) you will have to correct it or report it to every single buyer going forward. Realtor tells you that you have to fix or reduce the price dramatically. Inexperienced seller doesn’t want to deal with that and now they accept the low offer. Investor wins, Realtor wins, YOU LOSE!

#1 You as a seller want to get the biggest bang for your dollar. Here are some things you can do to protect yourself. Get your house inspected before you go on the market, but wait!! Not just any inspection, get it done by the president of the Home Inspection services in your region or someone they recommend, or one that was a former president. Advertise that it’s pre inspected. Sometimes this will be enough to scare off shady people. Get a real estate attorney, this is extremely important. Don’t sign anything and don’t be pressured into anything without attorney review. You would not believe how many realtors have tried to persuade me not to do this, or say ridiculous things, or outright lies. Both an inspection and attorney are incredibly cheap and will save you tons in the long run. Be firm on your price and don’t tell your realtor if you are in a hurry. Absolutely do not give your financial information to your realtor, they do NOT need it. They do not need to know how much you owe on your house. It does NOT matter. All that matters is what the house is worth and if you can sell it for that amount. If you are underwater that’s a different scenario.

a reply to: JAGStorm

I just bought a house (not my first time) and had it inspected.
The inspector *I* hired was about $400.
I got a report, and didn't have to disclose anything to the seller, which means had I not bought it that inspection report wouldn't be passed down to anybody.

To have a seller get a report that needs to be disclosed to every potential buyer might as well be criminal, because the inspector could simply neglect to report on any given problem... For a little extra money on the side.

did you see the 60 minutes report on the housing crises? Very good story and everything you stated. Big corps buying up all the housing sight unseen. no inspections. cash money and over asking. Making it impossible for middle to lower class to afford the houses or even get the chance to bid o them.Then it drives up the rental market because people cant afford a house so everyone is renting. Feel sorry for couples starting out. I bought my hose 30 years ago in NJ for $150,000. Now it is worth about $850,000. To be that is insane . and the property taxes are over $15,000 a year. I am lucky my house is paid off and i own it. I

a reply to: JAGStorm

So they're hedging their bets that housing will correct back to 2019 - 20 levels and shorting the markets on the way down?

I mean, some areas might go back to those prices, but in most places they went 40 - 70%, I guess from an investment point of view it's a smart move because even if it goes down 30% you're still turning a profit.

Ever since you could just hop on a interactive map and see house prices this has been happening. The internet really screwed up the real estate industry.

The VA loan officers sends out an inspector to get a VA Loan. My last bid I made on a house the VA said to the owner there was an issue with how something was done and made them lower the amount we owed to compensate for repairs we would want and need to make.

a reply to: HODOSKE

Big corps buying up all the housing sight unseen. no inspections. cash money and over asking.

And not just housing. I have 180 acres irrigated farm land for sale; just waiting for the best offer.
It will probably be subdivided in to housing lots for the developers.

originally posted by: lordcomac
a reply to: JAGStorm

I just bought a house (not my first time) and had it inspected.
The inspector *I* hired was about $400.
I got a report, and didn't have to disclose anything to the seller, which means had I not bought it that inspection report wouldn't be passed down to anybody.

To have a seller get a report that needs to be disclosed to every potential buyer might as well be criminal, because the inspector could simply neglect to report on any given problem... For a little extra money on the side.

Why would it be criminal? It would not prevent any potential buyer from getting their own inspection, and I would recommend that 100% of the time, even with new housing. What the seller inspection will do is to identify anything that needs to be taken care of before the sale of the house, or disclosed. It would also prevent shady investors from blowing something out of proportion, it's much harder to do after a legit inspection.

a reply to: HODOSKE

I bought my hose 30 years ago in NJ for $150,000. Now it is worth about $850,000. To be that is insane . and the property taxes are over $15,000 a year. I am lucky my house is paid off and i own it. I

That pretty much sums it all up. Those taxes are nuts, that is a mortgage payment for most.
Think about the people that don't have their houses paid off and their taxes go up that much. They are forced out, maybe to rent which they also probably can't afford.

The eviction moratorium set things in motion, and many saw the writing on the wall. When it was finally lifted, landlords increased rent to try and recoup lost profits, which sent property values skyrocketing.

Biden stepped in and ordered an assessment of property values across the nation, which raised property taxes 100% and more, putting property owners in a huge financial bind.

It didn't take long for inflation/recession to start bringing property value down again, yet many are stuck with taxes they can't afford and are being forced to sell/downsize.

Purely coincidental, or well played?

but what i do not understand is people keep spending. At least in new jersey. You would think with everything going up in price, people would cut back on spending. I do not see it. I own a business and have been more busy in the past few years than my 30 years in business. ANd from all the businesses around me, i hear the same story. Everyone is spending. Where is everyone getting the money? All the businesses are looking for help also. No one is working but spending money? Doesnt't make sense. reply to: JAGStorm

a reply to: JAGStorm

Realtors in my experience are at the same level of the scum off the bottom of the shoe that I just stepped on poo with. Worse than any of those shady used car lots next the the Marine Corps main gate. Sorry for any realtors here, but they really pissed me off more than once. Lying sack of potatoes!

It's exactly the same in the UK. The amount of new builds is insane. These are supposed to be affordable housing. Yes a year ago (not now as interest repayments are going through the roof) people could afford the repayments but couldn't afford the down payment, thereby leaving the door open for investors. The worst thing is they are being built on prime farming land or flood plains. A nice little earner for the farmers. For farm land approx £7,000 an acre, the same land for building, that jumps up to £400,000 an acre.

Im a realtor and I would not take the OP advice. Here is why!

An As IS contract doesn't mean the buyer doesn't have time to have their own inspection to insure a buyer knows what they are buying. A majority of As is offers I place for my clients end up with me getting them some sort of credit, repair, or both because of un expected issues! Even with a seller's inspection I would always suggest to my buyers that that have their own inspection.

Yes Realtors have investors they work with and yes in some cases they may communicate that to an investor but the OP's insinuation for Realtors and Investors are alway's in working together against the seller's best interest is BS. Maybe a handful of nad apples are out there but for me if a property is in good shape and the seller is willing to price it within +5% of the current value based on comps then WHOEVER makes and offer that works typically gets the deal.

Not all listings are the same! Some homes need a ton of work. Some wont make it through appraisal based on their condition. Other homes are more move in ready, turn key as you will. A majority of buyers looking to buy to owner occupy want these types of homes. Most of this type buyer don't want to deal with updating a home.

As with any market their are ups and downs. Yes we have seen a awesome recovery from the late 2000's perhaps to hot a market. In Florida price reductions which non existent 6 months ago are becoming main stream. In the 24 hours alone in my mls there where 400 price reductions. Honestly it good. Like all markets there needs to be balance in in my area for over 2 years it was a sellers market on steroids.

I could go on and on and ps FSBO typically sell for way less then the cost would have been to hire a seasoned realtor.

PSS HOMES ARE LIKE STOCKS THEY ARE AN INVESTMENT!



a reply to: JAGStorm

a reply to: sirlancelot

Im a realtor and I would not take the OP advice. Here is why!

An As IS contract doesn't mean the buyer doesn't have time to have their own inspection to insure a buyer knows what they are buying. A majority of As is offers I place for my clients end up with me getting them some sort of credit, repair, or both because of un expected issues! Even with a seller's inspection I would always suggest to my buyers that that have their own inspection.

Reading comprehension is very important. When did I ever say buyers shouldn't get an inspection? Even in the case of my parents house I didn't say the buyer even the invester shouldn't get an inspection. I just said I know the game!
Actually I said the opposite. I even said:

and I would recommend that 100% of the time, even with new housing. What the seller inspection will do is to identify anything that needs to be taken care of before the sale of the house, or disclosed. It would also prevent shady investors from blowing something out of proportion, it's much harder to do after a legit inspection.

You said

but the OP's insinuation for Realtors and Investors are alway's in working together against the seller's best interest is BS.

18% of houses are going to investors. That is a huge number, one could even say my insinuation might be an understatement.

originally posted by: 38181
a reply to: JAGStorm

Realtors in my experience are at the same level of the scum off the bottom of the shoe that I just stepped on poo with. Worse than any of those shady used car lots next the the Marine Corps main gate. Sorry for any realtors here, but they really pissed me off more than once. Lying sack of potatoes!

They do lie and often times they aren’t the sharpest tool in the shed either.

My realtor for my parents house broke the law. She tried to persuade me to discriminate against buyers because they were a lesbian couple even though their offer was significantly, and I mean significantly better than the deal she wanted me to take. She went so far as to say that “I would be able to sleep better at night”. F that, I told her straight up I’d be able to sleep better with the better deal. The only reason I didn’t turn her in is I was in the midst of taking care of my very ill mom.

Interesting - but here in the NJ flood zone the houses are selling like wildfire -
a house across the street right on the river bank went up for sale. That weekend there were hundreds of people on line, waiting to look at it.
It sold immediately for $400,000 and it is only a matter of time till the next flood slams our area and the house has to be renovated again.
Another house sold for $550,000 a few feet away from it.
I have no idea what the buyers are thinking, our area has been devastated 5 times in the last 23 years, so there is no escaping it.
All I know is, the prices on these houses are increasing (another house here on sale for $659,000) and being snapped up by New Yorkers who have been escaping the last few years.
I know the housing market goes in cycles - will the prices keep rising (how can they??) or will they come down soon?
Anyone know?

originally posted by: HODOSKE
but what i do not understand is people keep spending. At least in new jersey. You would think with everything going up in price, people would cut back on spending. I do not see it. I own a business and have been more busy in the past few years than my 30 years in business. ANd from all the businesses around me, i hear the same story. Everyone is spending. Where is everyone getting the money? All the businesses are looking for help also. No one is working but spending money? Doesnt't make sense. reply to: JAGStorm

Yep - I'm here in NJ and it seems nobody has to work!
I hear from my friends who work at the supermarkets - everybody (just about) has that Food Stamp card - worth upwards of $1,000 per month!
I wouldn't believe it if they hadn't told me, and they are furious that these customers have their hair done, their nails done, and walk out to a brand new car!
Yes, the 'free benefits' system is being very good to them.
Another neighbor told me how families are being 'placed' in free apartments, with brand new furniture, full benefits, PLUS $1,000 - $3,000 per month in cash. I found that hard to believe, but in watching these families, they are beyond huge, wearing beautiful clothing, and driving top of the line cars.
NJ is good to these people, and we are paying for them to live! And they don't even have to work.

originally posted by: HODOSKE
did you see the 60 minutes report on the housing crises? Very good story and everything you stated. Big corps buying up all the housing sight unseen. no inspections. cash money and over asking. Making it impossible for middle to lower class to afford the houses or even get the chance to bid o them.Then it drives up the rental market because people cant afford a house so everyone is renting. Feel sorry for couples starting out. I bought my hose 30 years ago in NJ for $150,000. Now it is worth about $850,000. To be that is insane . and the property taxes are over $15,000 a year. I am lucky my house is paid off and i own it. I

Here in the flood zones of NJ our taxes are in your category, and it is now the flood zone ghetto.

a reply to: lordcomac

I am a licensed builder and know about five people now doing inspections. I had some of these home inspector ask me about things and went to a few houses with two different ones years ago to help them identify the cause of problems with the home.

The house inspectors do not check everything, you are basically just getting an opinion from them and I know I know much more about houses than the vast majority of inspectors out there. I could easily get certified as a home inspector, but face it, if people knew all they were getting into they would never buy a house....realtors would quickly try to discredit me because they get paid if houses sell.

I could not give the people an accurate cost of the repairs like I used to, I have not kept up with what builders, electricians, heating contractors, and plumbers charge anymore. I used to know the basic rates of contractors from the area. Roofing estimates from roofers were pretty equal, and now it seems that waiting time for repairs is long....so high priced contractors are being utilized more often now.

I have more expertise at evaluating a house than the vast majority of home inspectors....Now I do not have as much experience with commercial and industrial projects inspecting, that I wouldn't even attempt to try.