1. The KillerFrogs

OT- Thoughts on Real Estate

Discussion in 'Scott & Wes Frog Fan Forum' started by AroundWorldFrog, Mar 14, 2020.

  1. #1 AroundWorldFrog, Mar 14, 2020
    Last edited: Mar 14, 2020
    For any and all real estate related professionals in our group, any thoughts on how this very unique situation may affect real estate values both in the short and long term? We are considering an offer on a nice acreage property, but obviously there are concerns about values in the future. Last thing I want or need is to get immediately upside down if values drop, but I also believe in continuing to do business as usual as much as possible without completely turtling up.

    Thoughts? Advice? Have you guys seen any immediate effect? Thanks!
     
  2. Don't forget title and escrow peeps...it all funnels through us so we see it all.

    There's a ton of uncertainty, for sure. We have a closing scheduled Tuesday but the seller just got back from a trip in Seattle and went into quarantine yesterday. Unless we can figure out a bubble boy situation, it's not closing any time soon.

    I was at the Coldwell Banker office on Hulen yesterday afternoon just minutes after they got the directive from their national office that all offices were closed through the end of the month. Agents can always work from home but you have to wonder about 1) their willingness to show homes and 2) buyer's willingness to view the homes. I'm in sales and if every office in town is closed and all networking is put to a hault, I literally have nothing to do but sit at home and make phone calls and send emails.

    So, with that being said, your pool of competition for the land will surely be more shallow and the sellers may be spooked enough to take considerably less than list price.

    In the end, if I'm going to put my money somewhere, my first choice will always be real estate. If a stock tanks or goes up in flames, what do you have to show? If real estate tanks, you still have an asset that should, eventually, rebound. Yes, it would suck if the value plummets in the short term but I doubt you're interested in this property for wholesale so the fact that you intend on holding on to it for a while should signal that you'll be ok.
     
    froginmn and AroundWorldFrog like this.
  3. Oh...I we had several contracts cancel this week during the option period...nothing really out of the ordinary because we normally see about a 20% cancellation rate anyway...but I had three Realtors tell me they think the buyers got spooked by everything and had second thoughts. I think in the very short-term it will be a heavy buyers' market.
     
    Francis Xav and AroundWorldFrog like this.
  4. Thanks for the response, AFKP. Looking at a specific property that was just listed at a very good value. It had at least a dozen \showings in the first two days and the listing realtor is expecting to present multiple offers to the sellers tomorrow.

    There's just so many unknowns right now that i thinking really hard about whether to make an offer or not.
     
  5. The listing agent won't tell you this but I would expect a percentage of the offers to be pulled. You may want to consider writing a letter explaining what you want the property for and furthering your commitment to going through with the purchase amid economic and social uncertainty.
     
    Realtorfrog likes this.
  6. I'm a mostly retired real estate auctioneer and sold scores of acreage tracts over a 30+ year period.. If you're buying and holding for the long term, you probably will do just okay and this current situation may be your best opportunity for awhile to deal with a scared seller.. With the slated population growth we're experiencing and should continue to experience in the area over the next 30 years, the value of land should increase well..

    That said, the yields on my real estate investments have under-performed indexed mutual funds during my career even after taking into account the beatings of the last two weeks in the stock market.. You should buy your acreage to enjoy as a quality of life issue, not as an investment to make a high return..
     
  7. Buy buy buy. This will pass soon enough. I put in offers on two rental houses this past week. People need places to live and virus or not, that need will always be there. In fact, I suspect people will prefer a single family or duplex over large congested with people apartments.
     
    netty2424 and AroundWorldFrog like this.
  8. We purchased our home 3 years ago and I left all of my filters on my real estate apps to keep up with the market, more out of curiosity than anything.

    I’ve wondered what’s going on with the real estate market leading up to this pandemic as it seems like it was kind of topping out. I see more price reduction notifications than I see new homes for sale. Just started getting the sense that it was trending back to a buyers market.

    I can’t see this pandemic doing anything to help, other than providing opportunities for wealthy to continue to buy low as prices start to dip. Seems like real estate always eventually rebounds.

    When we bought, you could find acreage up here as low as $3k/acre, but more often $5-7k. Lately it’s been $10k plus from property I’m seeing for sale now.
     
    AroundWorldFrog likes this.
  9. I am a franchise broker for the last 27 years. I seen it all. Resolution Trust, Great Recession, Radon gas, the first inspectors, short sales, bailouts, foreclosures on every street, my agents getting their cars repossessed in my parking lot, agents losing (loosing) their homes, and my bank account going to zero. In 2009. It's back over $100 now, thanks.

    What will happen this month? No fuggin' clue. But like YA said, real estate is a long term investment. A pretty good long term investment with the additional benefit that you can live in it.

    So, should you buy today? How the hell would I know?
     
  10. Congratulations on owning $100
     
  11. [​IMG]
     
  12. One could do the real estate agent 401k route. Buy a home, fix it up and live in it for a term. Build equity and use equity to buy new home. Rinse and repeat. Next thing you know you have 20 homes and a nice retirement.
     
    AroundWorldFrog likes this.
  13. Small business owners are getting scheissed over right now.

    Insurance doesn't cover pandemics, revenues are down etc. Housing market/stock market will take a major hit when owners and employees can't pay their mortgages.
     
    Eight, AroundWorldFrog and netty2424 like this.
  14. My wife is an agent and is as busy as ever right now. Broker is discouraging (or at least not boosting) open houses. But haven't seen an obvious slowdown. Maybe slightly less demand at certain price levels, but things are moving.
     
    AroundWorldFrog likes this.
  15. I'm not in real estate, but seems to me if you can buy land in this area now, do it. It is not going to lose value long term, they're not making more.
     
  16. I personally haven’t had anyone call and say they don’t want to continue looking but that could change tomorrow. I have a listing going active Monday, will be interesting for sure.
    TX, at least FW is still undervalued for the most part although definitely increasing. Make an offer you’re comfortable with and see what happens.....and yes a letter can do wonders, even if your not the highest offer. Make the offer look good on paper even if not the highest.
     
  17. The only thing you know for sure is what my old granddad used to say: "They don't make no more land."
     
    talor and AroundWorldFrog like this.
  18. Hows the investment market? Can you find decent homes that rent for 1% of sale price or higher?
     
  19. Thank you.
     
    illini_frog and Ron Swanson like this.
  20. agree the real threat to the real estate market is in the broader economic uncertainty you indicate. and oil at $32 could have regional impacts until opec/Russia fix their [ Cumbie’s red zone playcalling ] out.
     

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