r/nova • u/SneakyTactics • 1h ago
Iâm just going to vent here about how shitty the whole homebuying experience is in a high cost real estate market
Iâm in a townhouse right now looking to buy a single family home. In NOVA, thatâs a million dollar decision. But one thing Iâve learnt is that it goes way beyond just affordability. You could have 20% down saved up, and the income to support the monthly mortgage payments, but your skin has got to be thick enough to deal with all the other bullshit thatâs been going on right now.
Agents: these people do very little work and expect to be paid 5% of the sale. On a $1.5M home, each agent can expect to be paid $30-40k. And their incentives are totally misaligned with the buyers. I want to buy a home at the lowest price possible. But their comp is tied to the price so they constantly try to beef up the sale price. They tend to have zero sense of value, and any home Iâve ever been interested in, no matter how long theyâve been sitting, the agents always push you to offer at asking price or better. So if youâre trying to negotiate and get the best value, you have to do that homework yourself.
The lenders: mortgage rates are absolutely brutal right now. Youâre looking at 6.5%+ with perfect FICOs. ARM or even interest only rates arenât much better either. Now one thing you need to know is that the agents all work with local lenders because obviously they share commissions. I bring clients to you - I screw them once, then you screw them on the rate. And we screw them together and share the commission. They will badmouth any lender that can beat their offers (typically the big banks, the Zillow/rockets). And all lenders will seem super friendly and timely at first but when origination is done and youâre working with underwriting, thatâs when you become their bitch. Meetings and followups are on their schedule. You play the waiting game. And they all collude on the rate as well - âIâll match the lowest rateâ. But if everyoneâs saying that then there is no lowest rate anymore is there? And then they do the whole âIâm disappointed you didnât choose my high rates and points buydown even though I wrote a letter for you so Iâm not going to work with you againâ emotional blackmail.
The sellers - these motherfuckers think itâs still 2021. They havenât put any money into their homes, and they expect top dollar when they list their homes. The kitchens are old. Bathrooms are old. Windows need replacing. HVAC unit is on its final Odyssey. You havenât even bothered to pay some guy $200 to power wash the patio on a $1.5m listing. The zestimate is $1.4m btw. And thankfully the market is slowing down. Theyâre finally realising this and inventory is starting to pile up, some sitting for 2+ months and have already gotten 2-3 price reductions.
On top of this, youâre also dealing with inspection people, appraisal people, contractors, and getting clapped left and right along the way.
So after six months of dealing with all the bullshit, as Michael Corleone once said: hereâs my offer. Nothing.