| Oct 3 @ 2:28 AM |
Buying a home
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kjac
Posts: 8,163
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I couldn't find anything on the subject in any of the forums, so I'm putting it here.
For a while now, I've been putting off buying a home. More because of my relationship status (lack thereof) than anything else. I always felt like I needed a family to make a house a home.
Recent events have changed that. The buyers market we are in won't last forever. And if I must live my life alone, I've decided to do so in comfort. So I'm entering the market for the first time.
I was hoping for any useful advice the good people of matchdoctor might have.
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| Oct 3 @ 2:34 AM |
Buying a home |
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sweet5red
Posts: 9,687
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good luck.. try to get a fixed rate.. DO NOT get an ARM * adjustable rate mortgage.. dont get more house than you can afford.. but dont get a crackerbox..
get a single detached home and not a condo.. * condo you dont own the land.. avoid homeowners associations.. watch out on those fixer uppers.. Sweet N L
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| Oct 3 @ 4:05 AM |
Buying a home
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SensualGemini
Posts: 6,858
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kjac:I was hoping for any useful advice the good people of matchdoctor might have.
...First and foremost, cash is always king.
...Second, if not the cash, then have your financing approved and ready to go.
Conventional...
...If using a Realtor, every offer has to be taken to the seller and you don't need anything more than $1 attached; don't be putting down large sums as a deposit for an offer, as it is not legally required.
...Consider using a Buyer's agent; one that has your interest at heart and beware of the dual agents that represent both buyer and seller, which is nothing more than a normal Realtor.
...Consider purchasing through a listing Broker that is a one man show and when you have negotiated down to the bottom nickel, you can then negotiate with the Broker of the property to further negotiate down their commission. I did this once and saved another 4% on a property that had been listed for almost a year and not sold.
Self search...
...Home buying is like searching for airfare pricing; you can use the retail appraisal and negotiate off of retail, or search for wholesale prices, as they are out there.
...Some of the best deals I have found, were at the courthouse, where you will find pre-foreclosure filings. You will not only find stressed properties, but a motivated seller who you can help save what is left of their credit, as well as a financial institution that might be motivated for a short sale.
...I know several people still buying and flipping properties and 60% of appraisal is their magic number.
Timing...
...The price of homes in any area, is based upon the affordable monthly payment and little to do with the cost of the home itself. Personally, I don't believe that we have found bottom for unemployment and thus, real estate prices will continue to fall.
...Today, there is a dilemma of defining when real estate prices will bottom and when interest rates will rise; back to the affordable monthly payment for the average home buyer.
...This last Stimulus Bill bailed out some $10 Trillion in bad Fannie and Freddie sub-loans, which are beginning to surface again. I don't think the Feds will let them fail, as the alternative is affording these sub-prime loans into Section 8 housing, which is basically a wash out... as long as the Fed has the money to do so.
...Yet, those non sub-prime ARMS are coming due as well and do check the foreclosure graphs in the area you are searching for an indication of the bottom.
...Maybe that will help a little...
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| Oct 3 @ 9:33 AM |
Buying a home |
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Jalon
Posts: 1,610
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Gem has good advice. In addition, if you can squeeze out a 20% down payment, DO IT.
When it's time for the home inspection, make sure the owners have cleared out room so that the attic can be accessed. Also if there's a basement, make sure the walls do not have boxes stacked to the ceiling...access is vital. (These are things I've learned the hard way.)
And you're right, you don't need a relationship to own a home. This is your life...go get what you want from it. 
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| Oct 3 @ 9:45 AM |
Buying a home
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oct_cat
Posts: 1,374
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Before making any offer, check basement walls for any type of peeling/chipping paint, or discoloration on walls; which indicates possibility of standing water at one time.
Also, check under every sink; look at condition of plumbing pipes, check base of under-sink area for any indication of water leakage.
Check circuit breaker and/or electrical; having to rewire can be very time-consuming & expensive.
If you see a house you really like, spend time outside there at different times of day weekdays & weekends so you get a "feel" for traffic, noise, etc.
Sellers & the realtors that represent the seller are required to disclose anything wrong with the house/property, but always ask directly.
Take a good look at property taxes & average utility bills & make sure they are from within the last year. There's nothing worse than thinking you found your "inexpensive" home & find out utilities & taxes clean out your pocketbook.
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| Oct 3 @ 10:01 AM |
Buying a home |
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BandTMom
Posts: 38,039
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Good luck, K. Buying a home was one of the best things I ever did.
I can't give you too much more advise than the good folks here did, but just remember, if it's too good to be true, it probably is. 
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| Oct 3 @ 10:54 AM |
Buying a home
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Loreli
Posts: 25,398
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If listing states that all appliances stay-check their condition.
If they're really raggedy/old, you may want to either ask that they are replaced, or hauled away. If your bid is accepted.
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| Oct 3 @ 1:21 PM |
Buying a home |
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sweet5red
Posts: 9,687
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oh the first time home buyers 8000 credit is still available till 1st of december...
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| Oct 3 @ 1:42 PM |
Buying a home
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SallyF
Posts: 341
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Be present for your home inspection....notepad in hand. A good home inspector will talk about everything he/she sees; you will end up with a priority list for those repairs that are not lender required, as well as those that are. Best free learning experience ever!
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| Oct 3 @ 1:44 PM |
Buying a home |
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Heaveninawildflower
Posts: 18,602
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My first actual experience in buying a home was when I moved here in 2003, and my company (who 'made' us all move!) provided us with contacts with a solid realtor who made the whole thing pretty straightforward.
The two things I learned that helped the most were - when you're serious about a home, get a really thorough inspection by a professional - I fully agree with oct_cat, but unless you're really well trained in what to look for, you'll probably miss things. Everything looked fine to me, but he found termite damage, electrical wiring insufficiencies and a hot water heater that was about to go, part of which was amended by the seller, but I took a cut in price and did the electrical upgrades myself. The other was inclusion of a home warranty policy for the first year, guaranteeing that repairs wouldn't exceed 40 bucks a pop (service fee) even if it included replacing major appliances/fixtures (it did - two swamp coolers had to be replaced).
Oh yeah, and what Sally said!! You'll learn more about where everything is controlled during the inspection than any other time. You'll get a copy of the report of course, but I doubt I'd ever have found the water main without being shown. VERY different from NYC here in AZ.
[Edited on 10/3/2009 1:46 PM]
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| Oct 3 @ 1:45 PM |
Buying a home
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SallyF
Posts: 341
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Also, ask the sellers to provide a home warranty---this will cover the first year of appliances, heating/cooling system, hot water heater, etc.; and will protect you from expensive surprises for that first year.
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| Oct 3 @ 1:48 PM |
Buying a home |
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Heaveninawildflower
Posts: 18,602
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GMTA!! ^^^^^^^^
Yep - both were good things. I flew from NYC to PHX to be there for the inspection and it was well worth it, even though the seller was really good about showing us around, I saw things I'd never have thought to ask about.
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| Oct 3 @ 1:57 PM |
Buying a home
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painter007
Posts: 17,853
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I would recommend that YOU pay and pick the home inspector....................  and like the posters above have said.....for you to be there during the inspection...
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| Oct 3 @ 3:40 PM |
Buying a home |
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blueyes101
Posts: 12,034
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You can go by price, but before you start looking, decide what year home you wish to purchase.
If you get a 50+, 75+, 100 + year old home, you will need to have money set aside for unseen repairs.
You can get one already fixed up, then you are paying for all their hard work....
If you get one that needs fixing, you better be prepared to have the extra money to do so, or you may be stuck with the orange shag carpet for a while.
And the best thing to remember..... This is an investment !!!!!!!! Try very hard not to fall in love with it. Well, until it's finished that is....
One more........ grab your balls, and walk next door if you are very serious about buying, and meet the neighbors..... The perfect house ain't so perfect if you are entering a battle of the Hatfield's and the McCoy's.
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| Oct 3 @ 3:46 PM |
Buying a home
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burnslikethesun
Posts: 13,027
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1st off, I would never ever go to a singles sight for finical advise.
2ndly, Good luck.
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| Oct 3 @ 4:03 PM |
Buying a home |
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painter007
Posts: 17,853
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I think the advice that is given is spot on......It seems the ones who have given advice are/or have been homeowners.....so we can tell from experience....and no better way to learn then from those who have been there.................jmo I used to be a realtor..my mom was for 20 years and my aunt and uncle are still realtors......and the information listed is very accurate.....jmo
[Edited on 10/3/2009 5:24 PM]
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| Oct 3 @ 4:33 PM |
Buying a home
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SensualGemini
Posts: 6,858
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Oct: There's nothing worse than thinking you found your "inexpensive" home & find out utilities & taxes clean out your pocketbook.
...That is a very important part to consider after you think you have found your dream home and before making an offer.
...Many homes have not had their property taxes actually appraised by the taxman in years and do ask to see the tax bill itself to see what the property has been appraised at.
...Square footage is the key indicator for the lazy tax appraiser and I know they don't come by around here, until a building permit has been issued that indicates something has been done to the property. Even then, they will often go off the estimated permit cost.
...The difference between appraised by the taxman and the selling price, will tell you if the taxes are going to go up, or down. Some are now way over appraised, which is a good thing, as your taxes will be less than shown. But some could easily be under appraised and your taxes will be higher.
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...Location is also very important and especially school districts. Houses in different areas may be the same value, but the right school district will typically sell faster by more demand.
...If you don't know what you are searching for, the home inspection is imperative and most lenders require same, as well as the appraisal. If it is no cost to you, let the seller provide, but do get one of your own and compare. I would prefer to show my inspector what the other guy came up with, as that creates a little competition to find more issues, which are to your benefit.
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...I mentioned the $1 escrow with the offer, but do make sure you read all the fine print in any offers, as that is a contractual document. Most say you lose your escrow if you don't go through with the offer and big deal if a dollar. "Pending Financing" will usually give you an out, if you change your mind, but the variable will not typically get you the lowest negotiated price from a seller that is motivated to sell now. "Pending Home Inspection and Lender approval" is still maybe the best exclusion to write in.
...A quick visit to your local ACORN might help, as they know all of the special government deals for first time home buyers, financing, etc. They were running refinance for HUD, but not sure after those "creative videos," where a hooker is to be a performing artist as employment.
...Speaking of HUD, if you wanted to do some repairs and knew how, then HUD, FHA and a few others, list their repo properties online. There is typically one broker in an area that represents these and that is the guy to talk to directly. With the Stimulus bill, I have not seen any of these worth the price lately, as the principle and payments were typically already reduced to about 31% of expendable monthly income and still foreclosed on. But, you never know, as the owner may have neglected to follow through and just lost it.
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...Buying a house is an investment and you want to search for appreciation, or at least the potential of it. You will be paying property taxes, insurance, maintenance and upkeep, where sometimes, renting is a whole lot easier and bank the difference. I know, people say you are paying for the house by renting, but that is not always the case when a rental has been paid for long ago, or the owner is upside down in a mortgage and cannot afford to sell it.
...Besides structurally sound, kitchens and baths sell a house to a woman, while garages and work shops appeal to the man. As well, kitchens and baths are expensive for the square footage involved. By demand, three and four bedroom houses often sell more per square footage than two bedroom, so you could get a great deal on a two bedroom that has room to expand later. Ranch types, or single pitch roofs are typically the easiest to expand if the property is large enough.
...High efficient heat (higher % efficient), air (lower SEER), etc. If they are 10 or 15 years old, you will likely have to replace before you sell the house again, or will need updated in another 10 or 15 years, which could be alright if you were expanding a 2 bedroom into a 3 bedroom at that same time.
Note: You can always tell a high efficient furnace or water heater by the fact they exhaust with plastic pipe and usually out the side of a house. Then talk to someone, or go to Consumer Reports and see if that brand has more or less problems than the competition.
...Insulation (R factor), as how thick are the walls, or how much is in the attic. And then the windows (U factor), where Low E insulated glass has been around a long time, air infiltration is a major factor.
...Landscaping is arm candy and a large return for the dollar invested; especially if you do it yourself. As well trees add value and 10 years adds a lot of size to trees that were recently planted.
...All in all, I would not be in any rush, but I would certainly start my investigation of what is out there for what price range, in what area, as well as look at what recently sold in what area, for what price. After a little while, you will find a pulse for the market and know value when you see it.
...Say_Yes is a Realtor and maybe he will stop by.
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| Oct 3 @ 7:37 PM |
Buying a home |
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Always_Striving
Posts: 8,794
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Thoroughly examine every linear foot of the foundation wall.
Do not purchase a house with active knob and tube wiring.
Try to find out about its insulation and windows. That will be a major deal for its energy costs.
Pest inspection for roaches, rats, termites, silverfish, mice, etc.....
Lead Paint decreases a homes value.
You might want to consider buying a house with solid wood tongue and groove floors instead of one with carpets.
Buy a house that has the living room and/or master bedroom facing South (This has become a major buying feature for me).
Attached Garage is a plus.
Make absolutely sure were the property lines exist..... trust me on that one.
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| Oct 3 @ 7:45 PM |
Buying a home
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SensualGemini
Posts: 6,858
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Burns: 1st off, I would never ever go to a singles sight for finical advise.
...A good thing this is a dating and friends site.
...Nevertheless, I would agree that I would not "advise" someone to accept advice from someone that does not know the difference of who is the recipient, nor would I consider their "finical" comprehension if they cannot even spell financial. And then that little issue over sight, which is vision related and site, which this is. 
 ...Send them to school, give them pencils and what do they do? 
PS: And "2ndly", always question advice from someone that has never bought, or owned a home.
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AS: Make absolutely sure were the property lines exist..... trust me on that one.
... That is a really good one!
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[Edited on 10/3/2009 7:57 PM]
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| Oct 4 @ 2:11 AM |
Buying a home |
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SpiritOrnery
Posts: 24,129
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Check to see if it is in a flood zone. Pick an elevated area unless you are buying in a desert. And even then...that can be a bitch when they have a sudden torrential downpour. Seriously...listen to what I am telling you. Many people have had to learn the hard way.
Check the police station to see what kind of activity they have in your neighborhood. Close to a high school? Make sure it is a good school. Otherwise some of the people from the school can be a problem. Go a mile or two in either direction to see what is hidden in the OTHER neighborhoods.
Who ever you get to represent you, when you have your inspection and personal 'I don't like this' list in your hand...make SURE the person writes EVERYthing down and goes back over it with you. My realtor screwed me big time. She spent all her time babysitting grandkids and didn't take care of me...her paycheck. Find out what your potential realtor does when he/she is not selling houses. They often are there JUST to take that percentage and not to make you happy. DON'T hire a friend or family. Or a friend of family. Just don't. 
AS: Make absolutely sure were the property lines exist..... trust me on that one.
... That is a really good one!
That is for sure... I paid for a survey on my last house to find out my fence was way inside the property line.
Oh! Look around for burglar bars. Bad news if you see them in more than one place. There will always be one paranoid, but if you see several...well, have them on yours as well. If you see LOTS of signs for burglar alarms as well. Beware.
[Edited on 10/4/2009 2:20 AM]
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