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We’ve all heard the horror stories of people not receiving the money they were supposed to from a real estate transaction. I recently ran into a similar situation, and it made me stop and think. I was supposed to receive roughly $30k for the sale of my home, but instead I received $315k. Not quite $72 million, but still a lot of money!

I knew I had to take action right away and contacted my real estate agent to let them know what had happened. Our attorney and the title company were also notified. I was concerned that this could negatively affect me in any way tax-wise.

Fortunately, it was easy to correct the mistake. I wired the money back and the issue was resolved quickly. I was even able to get my wire transfer fees reimbursed and a corrected final closing statement. All I had to do was call the loan servicing company for the loan and ask them to correct the funds.

Seeing this large amount of money in my account was certainly a shock, and it made me think of the stories I’d heard about similar situations. I mean, I’m not going to uproot my life, move to a foreign country and change my identity for $300k. But for $72 million – you start thinking about it! Thankfully, my situation was much less dramatic and quickly resolved.

It’s important to be aware of the risks that come with real estate transactions and to be prepared to act quickly if something goes wrong. I’m glad that I was able to catch the mistake and get it all sorted out quickly and without any major taxes or fees. It’s a good reminder to stay alert and take action when needed.

President Biden’s office has recently announced a program designed to create more affordable housing near transportation hubs in major cities. The program will involve the use of low interest loans, some grants, tax incentives, and loan guarantees. This is an innovative yet practical approach to providing more affordable housing options in major cities.

The program will also help to preserve city centers as desirable destinations by allowing developers to purchase and convert under-occupied federally owned buildings into affordable housing. This is great news for city-dwellers who have been priced out of their neighborhoods due to a lack of affordable options.

The government’s involvement in this program is a welcome change from the traditional housing market, which relies heavily on private financing. The majority of buyers would not qualify for private financing, which limits the amount of affordable housing available to those who need it most. By providing incentives to developers to create affordable housing, the government is making it possible for more people to find a place to call home.

In addition to providing incentives to developers, the government is also helping to preserve city centers as desirable destinations. By allowing developers to purchase and convert under-occupied federally owned buildings into affordable housing, the government is helping to revitalize city centers and make them attractive to potential tenants. This is a great way to ensure that city centers remain vibrant and attractive for people of all income levels.

All in all, President Biden’s program for creating more affordable housing near transportation hubs in major cities is a great idea. Not only will it help to provide more affordable housing options to those who need it most, but it will also help to preserve city centers as desirable destinations. This is a win-win for everyone involved, and we can’t wait to see what this program will do to help create more affordable housing in major cities.

From 2008 to around 2016 new home builders stopped building and sat on their remaining lots. After the long wait, in around 2016, new home builders were able to get back out and build again, but at a much slower and more calculated pace. This slow and calculated pace is where we are today and what has lead to the shortage in inventory.

It’s been two years of searching for a new home and I’m finally under contract. It’s been an emotional roller coaster to say the least, and I’m thankful to be out of the mess. But I’m also sad for my fellow buyers and friends who are still in it.

I’m sure many of you have been wondering when the crash is coming. I’m here to tell you that there are no guarantees in life, however, the shortage in inventory is not just due to interest rates. I worked for a large new home builder in 2020 and 2021, and during this time I learned about the events that led to the inventory shortage.

Prior to the 2008 crash, new home builders were building and building with the assumption that there would always be buyers to buy their homes. Unfortunately, this assumption led them to lose millions and millions of dollars when the crash occurred. My particular builder lost so much money that they were actually selling some of their remaining homes in the negative. After the crash, builders stopped building and sat on their remaining lots from 2008 to 2016.

It wasn’t until 2016 that builders were able to get back out and build again, but the pace was much slower and more calculated. This slower and calculated pace is where we are today, and is the cause of the shortage in inventory.

So, if you’re one of the many people still searching for a home, I want you to know that it’s not just the interest rate that’s causing the shortage in inventory. The events of 2008-2016 have created the situation we’re in today. With that being said, I encourage you to use the Zillow mortgage calculator and enter a 20% down payment, and alter the interest rate from 8% to 2.75%. This estimation includes homeowners insurance and taxes, and is pretty darn accurate.

As I reflect on my two year journey I want to remind all the buyers and friends who are still in the hunt to keep your head up and stay positive. You’ll find your dream home soon enough.

It’s been an emotional roller coaster for sure, but I’m thankful to be out of the mess. To all my fellow buyers and friends still in the hunt, I wish you the best of luck and hope you find your dream home soon.

When it comes to property taxes, California has a unique set of rules that can seem confusing and unfair. Prop 13 caps the amount of property taxes that can be collected in California each year, allowing only a maximum of 2% increase in assessment value per year. This means that if you buy a house for $600,000 in 2023, your neighbor who bought the same house next door for $150,000 in 1993 will pay a lot less than you in property taxes.

This is especially true for those lucky enough to have bought property in the 50s or earlier. Take my coworker, for example, who is an only child and inherited two waterfront homes in the Bay area from his parents. Despite owning probably $10 million in real estate, he pays something piddly in property taxes, like $10k/year.

Now, fast forward 20 years. Your new neighbor will be paying $10k in property taxes, and you will still be paying $5.4k. This can be incredibly frustrating, and it’s easy to understand why. But that’s Prop 13 for you.

The truth is, the same thing that’s happening to you right now is also happening to your future neighbors, who will be saying the same thing you are saying right now. Property taxes are the government’s way of reminding citizens that they never actually own the property.

If you don’t like the rules in California, you can always move somewhere else. Take Texas, for example, where property taxes are increased indiscriminately by 10% every year. But no matter where you go, you won’t be able to escape the fact that property taxes are a reality of life. So, take a deep breath and remember that Prop 13 is here to stay.

Plenty of people who are stuck in their current homes, and can’t afford to move, or upgrade.

The current housing market has been a wild ride over the past year. People have been dealing with huge prices, interest rates, and mortgage demand. It’s been a lot to take in, and I have to admit, I didn’t realize mortgage demand was at the level it is until recently. With the market being frozen, anyone who makes money off of real estate transactions is essentially unemployed right now. It makes sense that people don’t want to buy a house with high prices and interest rates that are through the roof. It’s too much for most people to manage.

The other day I spoke with a realtor from the Midwest who told me that everything was fine with the market. When I asked if it was just cash buyers or if people are financing too, she said it was all financed and that they would just refinance when interest rates drop. I had to call her out on that one because I knew that wasn’t true. This is why I saved all my income during the Covid-era. Now I can survive for the next year or two with just a few closings a month as things stabilize and the number of loan officers decreases.

It’s amazing how mortgage rates and mortgage demand are inversely correlated. People don’t want to buy houses at record high prices with a mortgage that’s 8% or more. But, unfortunately, housing prices aren’t falling. There are plenty of people who are stuck in their current homes and can’t afford to move or upgrade.

It’s clear that buyers and sellers need to be aware of the current state of the housing market. Prices and interest rates are still high, which means that mortgage demand is still low. But, hopefully, the market will stabilize soon and people will be able to afford to buy or sell a house. Until then, it’s important for people to be smart with their money and save as much as they can.

Life isn’t always as simple as it used to be. Life can be expensive and it can be hard to keep up. We wanted to renovate our house gradually over the course of 5-10 years, but with prices continually going up it’s been difficult to stick to that plan. We’re now watching the quality of work going down as people are burnt out and working many jobs just to make ends meet.

When I was a kid, my dad could build whatever he wanted and the cost of materials wasn’t an issue. That same mentality still applies to me, but the cost of materials is simply too high. For example, chlorine tablets that used to cost $89 at Costco now cost $189.

It’s no wonder that corporate profit margins are at the highest they’ve been in 70 years. As an economist I heard on NPR said, the cost of living is skyrocketing and the cost of labor has gone down. It’s a worrying trend, and it’s making it harder and harder for the average person to live a comfortable life.

It’s disheartening to see the cost of living continually go up, while wages remain stagnant. We all want to have a comfortable life, but it can be hard to keep up with the rising prices. Unfortunately, it looks like things aren’t going to get any easier anytime soon.

If you could go back in time fifty years and buy up property/land to eventually reap a large return, you’d want to choose the right location. Jackson Hole, Wyoming, Austin Texas, and the Tri-Valley area in the Bay Area of California would all have been great choices. 50 years ago, the Tri-Valley was all farm land, but now, three acre plots are selling for twenty million dollars due to high-density condos being built. My great uncle owned a huge farm in California which is now known as Carmel-by-the-sea. If I was alive back then, I would have certainly tried to buy his farm. In the 80s, condemned areas of NYC, such as Tribeca, were selling brownstones in Brooklyn and Harlem for only $200. If I had the chance, I’d buy at least fifty of them.

My exe’s father had a similar experience. After returning from WWII, one of his army buddies tried to convince him to join a small group buying about 12,000 acres of beachfront in a small South Carolina community. He made a quick stop there on his way home to Georgia but ultimately gave it a thumbs down. He went on to become a successful business owner, but regretted not buying into Hilton Head.

My grandparents also had a similar experience. In the early 70s, they moved out of crowded San Francisco and bought a nice chunk of land in a quiet little town south of there. That area is now practically Silicon Valley part two, so it was definitely a great decision.

So, if you could go back in time fifty years and buy up property/land, there were several great options. Jackson Hole, Wyoming, Austin Texas, the Tri-Valley area in the Bay Area of California, Tribeca in NYC, and the small South Carolina community near Hilton Head were all excellent choices. My great uncle’s farm, my grandparents’ land south of San Francisco, and the twelve thousand acres of beachfront were also great investments. If you had the chance to buy any of these locations fifty years ago, you’d be looking at a huge return today.

I’m looking to buy a condo in Northern NJ and it’s been on the market for over 6 months. The original asking price was $860K and it’s been lowered four times in the last 6 months to $810K. I want to make an offer of $650K. There was another condo in the same building that sold for $650K last year when the interest rates were 3.1%. Now the interest rates are 7.3%, so my realtor says prices in the area have gone up a lot and my offer is too low.

While I’m not sure my realtor is right in saying prices have gone up that much, I can understand why they might be hesitant to make a lowball offer. After all, if the seller accepts it, then the realtor will have to work for a lower commission. However, it’s worth remembering that the condo has been on the market for 6 months now. And it’s not like I’m trying to take advantage of someone—the seller can accept whatever offer they want, just like I can make whatever offer I want.

I remember making a lowball offer years ago and my realtor said it would be an insult to the seller. But I said, “What do we care? They’re not our friends.” To her credit, she made an honest presentation of my offer. They didn’t accept it, but they made a generous counteroffer that we accepted and everyone was happy.

Ultimately, I think it’s worth making a lowball offer on this condo. If the seller doesn’t accept it, then they don’t have to and there’s no harm done. Worst case scenario is that they refuse further offers from you—but best case scenario is that you get a great deal. So I think it’s worth taking the risk.

It’s a sad reality that scam artists exist in the home investor game. But there are some easy steps you can take to make sure you don’t fall victim to these types of unethical practices.

First of all, be aware of the tactics they use. Some will walk in and start talking about how much work needs to be done. They’ll use exaggerated and false statements to make the home seem like it’s not worth much. Other tactics include offering a low lump sum payment or a payment plan that spans a long period of time.

It’s important to remember that no matter how convincing they sound, you are not obligated to agree to any agreements. If you’re not comfortable with the offer, walk away. And if the offer seems too good to be true, it probably is.

Another thing to look out for is heavy advertising. If you see an investor with expensive advertising, chances are they are more interested in profits than helping you.

It’s always a good idea to get a second opinion. Ask a trusted friend or family member to take a look at the offer and consult with a real estate agent if necessary.

Finally, don’t be afraid to take your time. You don’t have to rush into any decision. Take your time to research the investor before signing any contracts.

At the end of the day, it’s important to remember that you are in control. If you feel like something is off or too good to be true, it probably is. Don’t be afraid to trust your gut and walk away if something doesn’t seem right. With a little bit of research and caution, you can protect yourself from the scam artists out there.

Moving homes is always an exciting process, and it was for us too. My husband and I recently decided to list our house, and within just four days we had an offer. We had already moved into our new home, so our old house was vacant. Little did we know that on the morning of our listing, a water main break had occurred in our neighborhood. This meant that all of the houses in our block had no water pressure.

Later that same afternoon, a potential buyer wanted to take a look at our house. During the visit, they messed around with the bidet attachment to one of the toilets, however, they failed to turn it off. It was later discovered that this was because they thought it was broken due to the lack of water pressure, so they didn’t bother to turn the nozzle back.

Once the city fixed the water main, the bidet started shooting water, and this caused significant water damage in our house. Our carpets upstairs were soaked, and the water had even leaked through to the second floor carpets.

We called our insurance company to file a claim, however, we had to pay the deductible and the house had to be taken off the market until the damages were fixed. I contacted the buyer’s agent, but they denied that their clients had messed with the bidet. We had a log of when the lock box was opened and who opened it, and neither myself or husband had access to the house since we had given the keys to our agent. No one else had come to see the house that day either.

It was an unfortunate situation, but we were grateful that our insurance was able to cover the costs of the damage. We had to wait a few weeks for the repairs to be completed before we were able to list the house again. Fortunately, we were still able to get a great offer and we were very happy with the outcome.

Moving homes can be a challenging process, but it can also be an exciting opportunity to start fresh. We learned a valuable lesson about water main breaks, and we were thankful that our insurance company was able to help us out during this time. We were thrilled to get an offer in just four days, and we couldn’t have been happier with the outcome.