The Benefits of Home Ownership?

[lordxizor]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

[jingle.boy]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

Someone want to explain to my why (in the US) "paying cash" makes a difference?  I've never heard of this as having any kind of meaningful impact or relevance here in Canada.  As a seller, I don't care where the money comes from, so long as I get the price on the contract paid on the date of the contract.

What gives?

[Stadler]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

Someone want to explain to my why (in the US) "paying cash" makes a difference?  I've never heard of this as having any kind of meaningful impact or relevance here in Canada.  As a seller, I don't care where the money comes from, so long as I get the price on the contract paid on the date of the contract.

What gives?

It doesn't to the Seller, unless "timing" is your thing.  Having a mortgage takes longer from offer to close, and there is always the risk that after you're under contract, the Buyer can't get a mortgage and you lost x amount of time off market (plus the perception of having had a failed transaction; people might wonder why).  For the Buyer, there are more hoops to go through and likely it will cost more in out of pocket money. 

[lordxizor]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

Someone want to explain to my why (in the US) "paying cash" makes a difference?  I've never heard of this as having any kind of meaningful impact or relevance here in Canada.  As a seller, I don't care where the money comes from, so long as I get the price on the contract paid on the date of the contract.

What gives?

It doesn't to the Seller, unless "timing" is your thing.  Having a mortgage takes longer from offer to close, and there is always the risk that after you're under contract, the Buyer can't get a mortgage and you lost x amount of time off market (plus the perception of having had a failed transaction; people might wonder why).  For the Buyer, there are more hoops to go through and likely it will cost more in out of pocket money. 

Yeah, it's all a risk and timing thing for the seller. Mortgages fall through at the last second for lots of reasons. And a cash buyer can close within days potentially, whereas 3-4 weeks is the minimum for someone getting a mortgage.

[jingle.boy]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

Someone want to explain to my why (in the US) "paying cash" makes a difference?  I've never heard of this as having any kind of meaningful impact or relevance here in Canada.  As a seller, I don't care where the money comes from, so long as I get the price on the contract paid on the date of the contract.

What gives?

It doesn't to the Seller, unless "timing" is your thing.  Having a mortgage takes longer from offer to close, and there is always the risk that after you're under contract, the Buyer can't get a mortgage and you lost x amount of time off market (plus the perception of having had a failed transaction; people might wonder why).  For the Buyer, there are more hoops to go through and likely it will cost more in out of pocket money. 

Yeah, it's all a risk and timing thing for the seller. Mortgages fall through at the last second for lots of reasons. And a cash buyer can close within days potentially, whereas 3-4 weeks is the minimum for someone getting a mortgage.

Is pre-approval not a thing in the US?  I've never *not* gotten a pre-approval from my lender before house-hunting.  Then again, I've never bought/sold an empty house that could be turned over in a matter of days.

[lordxizor]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

Someone want to explain to my why (in the US) "paying cash" makes a difference?  I've never heard of this as having any kind of meaningful impact or relevance here in Canada.  As a seller, I don't care where the money comes from, so long as I get the price on the contract paid on the date of the contract.

What gives?

It doesn't to the Seller, unless "timing" is your thing.  Having a mortgage takes longer from offer to close, and there is always the risk that after you're under contract, the Buyer can't get a mortgage and you lost x amount of time off market (plus the perception of having had a failed transaction; people might wonder why).  For the Buyer, there are more hoops to go through and likely it will cost more in out of pocket money. 

Yeah, it's all a risk and timing thing for the seller. Mortgages fall through at the last second for lots of reasons. And a cash buyer can close within days potentially, whereas 3-4 weeks is the minimum for someone getting a mortgage.

Is pre-approval not a thing in the US?  I've never *not* gotten a pre-approval from my lender before house-hunting.  Then again, I've never bought/sold an empty house that could be turned over in a matter of days.

Pre-approval is basically required these days. Our realtor literally wouldn't have even showed us a house without one. Closing still takes at least 3 weeks after an offer is accepted even with pre-approval. It almost seems like the mortgage companies don't actually do anything with the pre-approval info until there's actually an accepted offer.

[gmillerdrake]

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

[lordxizor]

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

I would love so much to do this. We just moved and in our hurry we didn't have time to properly purge. My wife and I have a fundamental disagreement on what we need, so it'll never happen, but I would throw out literally half of the stuff we have in our home that isn't furniture. I would be a full on minimalist if it were up to me. I love purging and getting rid of stuff.

[cramx3]

I've been wanting to get a small dumpster myself to clean out my shed and basement.  I hate clutter so much and I have quite a bit of it now in my storage areas that need to go.  I've just been lazy but I keep telling myself I want to get it done this year. 

[Stadler]

At the height of the buying frenzy last year, I know of one person who borrowed the cash for their new house from their parents and then took out a mortgage after the purchase was complete to repay them. Other people were selling their homes for millions in high cost of living areas like CA and then moving to a lower cost of living place and using the cash to buy their new home outright. People were using many different means to come up with the cash to be a more attractive offer so they had a chance at snagging the home they wanted.

Someone want to explain to my why (in the US) "paying cash" makes a difference?  I've never heard of this as having any kind of meaningful impact or relevance here in Canada.  As a seller, I don't care where the money comes from, so long as I get the price on the contract paid on the date of the contract.

What gives?

It doesn't to the Seller, unless "timing" is your thing.  Having a mortgage takes longer from offer to close, and there is always the risk that after you're under contract, the Buyer can't get a mortgage and you lost x amount of time off market (plus the perception of having had a failed transaction; people might wonder why).  For the Buyer, there are more hoops to go through and likely it will cost more in out of pocket money. 

Yeah, it's all a risk and timing thing for the seller. Mortgages fall through at the last second for lots of reasons. And a cash buyer can close within days potentially, whereas 3-4 weeks is the minimum for someone getting a mortgage.

Is pre-approval not a thing in the US?  I've never *not* gotten a pre-approval from my lender before house-hunting.  Then again, I've never bought/sold an empty house that could be turned over in a matter of days.

Pre-approval is basically required these days. Our realtor literally wouldn't have even showed us a house without one. Closing still takes at least 3 weeks after an offer is accepted even with pre-approval. It almost seems like the mortgage companies don't actually do anything with the pre-approval info until there's actually an accepted offer.

This exactly.  When I moved last July, 90% of the houses we looked at needed a "pre-approval", so I got one and gave it to my agent.   My sale required a pre-approval for each visit, though I think we allowed one couple to come see it without.  Just because you have a pre-approval does NOT mean you are going to close.  Not even close.  I think it's a fair question "what are pre-approvals for", but there is a reason; it does weed out a certain portion of the potential market, and it does absolutely preclude the "lookie-Lou's" from showing up; I know the thought had crossed our mind that my wife's ex (douche) would come through the house, with only his agent as "tour guide".

[cramx3]

If I recall from my experience, the pre-approval was super easy to get too.  It does seem to weed some people out of bothering house sellers for a house they can't afford especially in a market like today where you're going to get a lot of interest when you put the house up for sale. 

My good friend who just got a town house had to actually up his pre-approval working with his agent.  It was originally blocking him from a lot of the houses he wanted and I guess they agreed that it could be higher since he got a higher amount pre-approved and eventually got a mortgage and the town house he wanted.

[Stadler]

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

I'm with you 100%.  I can't fill an entire dumpster in a timeframe that makes it feasible, but I've taken to every Saturday taking a load to the dump, then stopping at Dave's Luncheonette for breakfast.  I'm usually home before the rest of the fam is up and at 'em, so it's a win win.  I get the release from throwing shit away, and a home-cooked breakfast to boot.

[jingle.boy]

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

Here's your motto for the next week - When in doubt, throw it out.

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

I'm with you 100%.  I can't fill an entire dumpster in a timeframe that makes it feasible, but I've taken to every Saturday taking a load to the dump, then stopping at Dave's Luncheonette for breakfast.  I'm usually home before the rest of the fam is up and at 'em, so it's a win win.  I get the release from throwing shit away, and a home-cooked breakfast to boot.

Which is it? 

[Stadler]

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

Here's your motto for the next week - When in doubt, throw it out.

We split a 20 cubic yard dumpster with some neighbors and it's sitting in my driveway right now.....and just throwing away 8 years of stuff that we either haven't touched since we moved into our house or that was just taking up space. It's such a nice feeling decluttering like this. We have it until next Monday so I'm just taking a few hours a night and chucking stuff in there...as are our neighbors.

I'm with you 100%.  I can't fill an entire dumpster in a timeframe that makes it feasible, but I've taken to every Saturday taking a load to the dump, then stopping at Dave's Luncheonette for breakfast.  I'm usually home before the rest of the fam is up and at 'em, so it's a win win.  I get the release from throwing shit away, and a home-cooked breakfast to boot.

Which is it? 

If and/or when you come visit, we'll go to Dave's and you'll realize there is no inconsistency there at all.

[Chino]

I get what you mean, Stads. The Cosmic Omelet and Uncle Bob's Ham and Eggers come to mind. Definitely "home-cooked".

[jingle.boy]

I was mostly being facetious - it's a nit of mine when people refer to restaurant meals as "home cooked".  The two things are literally the opposite of one another - unless Dave's Luncheonette has you sitting at his kitchen table.   

[Stadler]

I was mostly being facetious - it's a nit of mine when people refer to restaurant meals as "home cooked".  The two things are literally the opposite of one another - unless Dave's Luncheonette has you sitting at his kitchen table.   

Ah, then you're right.  But at Dave's, you can see in the window to the kitchen, he'll shoot the shit with you while he cooks and you see it from skittle to counter.   It's home cooked in every sense EXCEPT I didn't sleep there the night before (Dave may have.)

[jingle.boy]

I was mostly being facetious - it's a nit of mine when people refer to restaurant meals as "home cooked".  The two things are literally the opposite of one another - unless Dave's Luncheonette has you sitting at his kitchen table.   

Ah, then you're right.  But at Dave's, you can see in the window to the kitchen, he'll shoot the shit with you while he cooks and you see it from skittle to counter.   It's home cooked in every sense EXCEPT I didn't sleep there the night before (Dave may have.)

That's awesome.  Those places are the best.

[Grappler]

Looks like I might be buying a new house this summer. 

We closed on the home from my prior post and moved in a week ago today.  The process was smooth overall, though not without a couple of mental breakdowns from me (I've never moved from one home to another - just simple moves from home to college, to apartment, to a house).  The amount of "stuff" that we had to pack was ridiculous, and I underestimated how much we had.  That caused some issues with the movers and not having enough space in the trucks, but we fit the excess into several car-loads and made it. 

The new house is an extra 1,000 square feet than we used to have and the space is amazing.  I've been shaking my head at the laziness of the prior owners - the second night in the home, I was on a ladder at 2am to re-hang a ceiling fan that was wobbling so badly that it made a loud ticking sound all night long.  Things all around the house are missing screws or busted (like the forced air floor vents, or old door knobs that stuck so badly you could lock yourself out, despite the door being unlocked) - they spent their time and money on entertaining space.  So that's a big plus, but there are lots of little things I have to tweak and upgrade.  That caused a second breakdown yesterday as I've spent a full week stressing about packing up, moving, unpacking and starting to fix things...then trying to get back to my job, of which I missed a ton of work while off.

Today is a much better day for me and I'm finally relaxing after talking with my wife about my stress and I settling into a new routine here. 

[jingle.boy]

Congrats!!  The tasks never end. Key word there - NEVER. 

 

[Stadler]

Looks like I might be buying a new house this summer. 

We closed on the home from my prior post and moved in a week ago today.  The process was smooth overall, though not without a couple of mental breakdowns from me (I've never moved from one home to another - just simple moves from home to college, to apartment, to a house).  The amount of "stuff" that we had to pack was ridiculous, and I underestimated how much we had.  That caused some issues with the movers and not having enough space in the trucks, but we fit the excess into several car-loads and made it. 

The new house is an extra 1,000 square feet than we used to have and the space is amazing.  I've been shaking my head at the laziness of the prior owners - the second night in the home, I was on a ladder at 2am to re-hang a ceiling fan that was wobbling so badly that it made a loud ticking sound all night long.  Things all around the house are missing screws or busted (like the forced air floor vents, or old door knobs that stuck so badly you could lock yourself out, despite the door being unlocked) - they spent their time and money on entertaining space.  So that's a big plus, but there are lots of little things I have to tweak and upgrade.  That caused a second breakdown yesterday as I've spent a full week stressing about packing up, moving, unpacking and starting to fix things...then trying to get back to my job, of which I missed a ton of work while off.

Today is a much better day for me and I'm finally relaxing after talking with my wife about my stress and I settling into a new routine here.

Dude, I've done that move now... I've owned six homes.  And EVERY. SINGLE. ONE. I've gone through and painted every room and in all but one case I've changed out each switch and electrical socket (and cover).  In doing so, you always find stuff like loose fixtures, etc.   It's part of opening the "present" of your new home.  This last one, we've changed out probably 75% of the light fixtures as well, and I'll probably do a few more, as well as more detailed cleaning (I have a duct cleaner coming in not next week but the week after; another good tip for a new homeowner!)

[Grappler]

Congrats!!  The tasks never end. Key word there - NEVER. 

 

It's part of opening the "present" of your new home. 

I know, I just had to come to terms with it, since we spent 13 years in our prior home and updated it to our liking.  I spent $600 at Menards a few days after moving in, buying all sorts of things that we want to change out soon. 

[jingle.boy]

Bill… I’m with ya. Our last house (we were there 15 years, every surface was altered at least once - all walls and ceiling painted one or two times; all floors redone (including the garage). Every switch changes (don’t think I changed all the outlets tho). And definitely all fixtures (so as to match mrs.jingle’s tastes)

Been at our current home 3 years now … pretty much close to the same already. Though, I hired painters for the main floor job.

Still gotta gather some before/after pics of our landscaping reno that was just completed.

[ReaperKK]

Congrats!!  The tasks never end. Key word there - NEVER. 

 

Congratulations, and to echo Jingle yes they never end. We bought a house in a new development so it was brand new and the task list was never ending.

[jingle.boy]

I'm off to build a little deck area for our dogs to sit in the shade when we're around the pool.   

[ReaperKK]

That's awesome Jingle. We had no intentions on fencing in our yard until we got a dog, then we had to build a fence

[Nick]

A little while back I experimented in some small areas with rubber mulch. That has done really well, so today while I was at work Jennie weeded the garden and then when I got home we bought 30 bags of rubber mulch. All garden areas are looking a lot better now.

Which is nice for us, and hopefully the next folks as well. After 6 years in the same spot we've both decided we'd like to get out of our townhouse and into a single home. We're lightly looking at places as they become available. That said we want to make the next home stick, and we're in no rush, so nothing imminent. But hopefully this time next year we are in a nearby, but different spot.

[jingle.boy]

I was looking at that rubber mulch. Hot damn it’s ‘spensive.

[Nick]

I was looking at that rubber mulch. Hot damn it’s ‘spensive.

Around here at least it wasn't too much more expensive, and I know in this case we might not see the benefit long term, but the thought of placing it once and being done really appeals to me.

[axeman90210]

This isn't quite home ownership, but there's no separate thread for home rentership As some of you may know, just a few days ago I up and moved down to Florida (Orlando suburbs) for a job I took during the pandemic. Still unpacking and in the process of buying a bunch of furniture, but I'm pretty excited. I've got a one year lease on this place, and once I get settled and have a feel for the area I'll be turning my attention towards buying.

The exterior (car not mine)


The main living room space when you first enter the house.

The plan here is a couple chairs near the front, records and guitars along the left wall, a counter height table in the middle, and then a tall drawer/shelf piece to serve as a bar along the back wall.

The kitchen

An electric stove is going to be a major adjustment, but overall happy with the amount of cabinet/counter space.

The family room off to the side of the kitchen

I've already got a new TV and a sound bar, they're just sitting on the floor right now. Should have a couch and an entertainment center in place by the weekend.

My bedroom

Currently sleeping on an inflatable mattress, my mattress should be arriving tomorrow (although the bed frame won't get here for a few weeks). Grabbed a nice dresser from a local antique store that fits perfectly against the back wall of the closet, so that's all loaded up.

Last but not least, the pool

It looks like there's a hot tub, but as best I can tell there aren't any controls for it and it's just a separate sitting area for the pool.

[gmillerdrake]

That looks fantastic!!!  I've seen that enclosed pool set up in a LOT of homes in Florida. I'm assuming it's due to a large amount of mosquitos or bugs? Or is there some other indigenous animal that is designed to keep out?

Either way....it looks like a sweet set up 

[Chino]

That looks fantastic!!!  I've seen that enclosed pool set up in a LOT of homes in Florida. I'm assuming it's due to a large amount of mosquitos or bugs? Or is there some other indigenous animal that is designed to keep out?

Either way....it looks like a sweet set up 

Keeps out gators too!

[Phoenix87x]

Do you guys think the housing market is getting ready to crash again? And if so when do you think this is going to happen?

[Nick]

I'm hoping it crashes between us closing a deal on selling our current home and putting in an offer on our next one.

Seriously though, things are coming down which is great for us since we're looking to upsize. I figure for every dollar that comes off of our current home, $1.50 is coming off of whatever we look to move into.

[Stadler]

Do you guys think the housing market is getting ready to crash again? And if so when do you think this is going to happen?

I don't think "CRASH"; I think leveling off.  Things will catch up slowly, and prices will regulate slowly. There's no real impetus for people to panic and scramble to keep their powder dry; that alone will help minimize the chances of a real crash.