Building A Home

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On 10/20/2004 8:46:18 AM wonka27 wrote:

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This is quite complicated! I wish I could do all that research, but it is tough in today's market. When houses go up and down in 48 hours, how does one get the full analysis. ----------------

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Note: Chainsaw Not Sold Separately.

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On 10/20/2004 8:46:18 AM wonka27 wrote:

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The listing says the roof was in 97 (which I suppose isn't terrible), newer storm doors, and replacement insulated windows. As for the heating/central air systems, I don't know, but will definately find out.----------------

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On 10/20/2004 10:39:51 AM fire&ice wrote:

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Al, while I admire your research, we have never bought a house like that for us to live in or for spec.

We identify a neighborhood (location location location)& go on my gut & my husbands schooling in Arch & construction----------------

Well, perhaps that's the reason you've never had to "buy a house like that".....if me or my husband had schooling in architecture and construction, we too would likely be able to eliminate the need for such research.    Perhaps the market wasn't as insane when you bought as it is now......hell, in my area, homes have risen more than 25% of their value in the last 12 months.  Without doing a bit of research to see that it's indeed so for this area, I'd be suspect.  It's hard to understand why.....until you see that plots of land that were selling for $50K just four months ago are going for $100K now because there is SO little developable land left. 

For those of us who don't have construction schooling, it's very easy to be deceived on what a house *should* run.  For example, the house we placed a bid on this afternoon:  when we saw the house on Saturday, I noted that the asking price ($369,900) was quite a bit steeper than other homes in the area.  The response was to point to the ONE house that just sold for $375K.  Little did he know, though, that Rich and I had been IN that house. 

We know that it had $10K custom kitchen cabinets, hand-laid hardwood all around, ceramic tile, upgraded trex decking, pull out shelving in the maple cabinets, steel I-beam construction in the basement, 2x6 exterior walls with more insulation, light fixtures that were WAY above standard, a built-by-hand front brick porch, and ethernet wiring throughout.  OH.....and that house was also 400 sf. bigger, although 3000 sf less land.

The house we're bidding on had NONE of that.....he admits he's used $30 cheapo light fixtures from Home Depot (because people change them anyway to what they like.)  Fine....but then the price of the house should be adjusted accordingly.  This guys wants the same price for his house even though his outside porch light was $6 and the other house was $50.  These two houses weren't even remotely comparable.  It would be like comparing a KIA with a Volvo. 

Without doing the research, I wouldn't have known that.  Three months ago, I had no idea what 2 x 6 construction was, what trex decking was, what constituted conservation land, what it means when a road is "on paper" but not in existence......and these are ALL things that a) affect the value of your house down the line and b) affect the reasonability of the asking price.

I'm not saying it's the only way to buy a house.  Clearly some folks buy diamonds by the numbers, and there are a bunch of folks who, like you, rely on their gut.  Heck, some folks give more thought to what they are going to wear to a party next week than they do to what's involved in getting married, having children, or buying homes.      Do what works for you.  I'm simply sharing what is working best for me and what has helped me get a grasp on how to make an informed decision on housing. 

Most people that come to PS are researchers by nature.....they want to make sure they are getting a fair price.  If they willing to do that for a diamond, I can't imagine being unwilling to do that for a home purchase.

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Note: Chainsaw Not Sold Separately.

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On 10/20/2004 9:21:50 PM aljdewey wrote:

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---------------- Perhaps the market wasn't as insane when you bought as it is now......hell, in my area, homes have risen more than 25% of their value in the last 12 months.

. It would be like comparing a KIA with a Volvo.

Without doing the research, I wouldn't have known that. a) affect the value of your house down the line and b) affect the reasonability of the asking price.

I'm not saying it's the only way to buy a house. Clearly some folks buy diamonds by the numbers, and there are a bunch of folks who, like you, rely on their gut. P>

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Nope, we are still buying. The market is crazy every where. We aren't keeping the houses as I think the market is inflated. We are keeping the one we travel to as it was bought in that weird bubble right after 9/11. Admittedly, housing prices are really low compared to most parts of the country. In our neighborhood, a cute as a bug in a rug house with minimal problems 3 bedroom/2 bath can cost one less than 200k and we are in the most desirable zip code & an old established neighborhood (don't know if that's the way your real estate is judged).

Another car analogy.


I've said this before - just pick one. Your research time is costing you money. I identified our first house & neighborhood w/o the aid of my trusty Architect. I can't fathom someone not knowing what an updated electrical box looks like. Or what an updated heating system looks like. And, you go through the drill. When was the electric updated, systems etc, life of the roof? People should have all this information available. And, if they are lying, the home inspection will usually discover it. If anything, visiting new construction neighborhoods are the best education to see what a house should look like in terms of systems.

At the end of the day, it just should feel right. That's the way I buy. Not for everyone - but for some I think they can over analize things to the point that the right gem may be right in front of them.

And truly, real estate agents would not be happy with my revealing the best secret in real estate - estate sales. They get a lot of listings that way & being able to buy & flip. It's usually either to settle an estate or the older occupants are scaling down & moving. They usually have enormous equity (if not out right own) & while usually priced according to market, they are flexible. Another trick - if you see a really cool property that is for rent, call and ask if they would like to sell. These are the behind the scenes transactions. By the time it makes itself to MLS, it's too late.

Wonka, good luck.