Building A Home

[wonka27]

I'm back

So over the last few weeks the g/f and I have been chatting about homes etc., and have come to the conclusion that we might be willing to get moving on it a little quicker.

The idea is if it is right now, opposed to maybe Summer '05, we'd have to definately go for the "starter home" route. I'm getting antsy because these low rates can't last forever, and it seems like the one area of some value in the market right now is the townhomes. What I've found is two semi-new (1986) townhouses in a suburban area that would be perfect for our situation. We'd both have about a 10-15 mile commute to work and it would put us right smack dab between our families. Furthermore, the townhomes are smaller, so for first timers, it wouldn't be quite as much shock to the system with working on the place. Links to the homes:

Townhome 1
Townhome 2

As you look at them, you'll see they are small, but they come with basically all the appliances, and both have new roofs.

The questions:

1. Right now between the both of us, can $10K in the bank get the job done. We realize we need to buy stuff for house we'd need to put it on credit, but with income tax time coming around it would only be a short time and we'd be able to pay that debt off. So could that amount of money get us a down payment (3-5%), closing costs, and leave a little in the bank for protection?

2. Does anyone know about construction in the 80's (fire...are ya out there yet

). Are there things that went on that maybe I should look for as red flags?

3. If we do go ahead with this after some more pondering and looking, any advice with negotiating or things to ask for in the offer. One person adviced asking for a home warranty. Another said to make the sale contingent on an inspection. Both sound like good ideas. Do you think with a house like the first that has been on the market for two months, trying to low-ball an offer would be a good idea? If so, what is standard (% wise)?

Thanks for your help. I've enjoyed the advice in this thread so far, although it has been dead for a couple weeks. Time to fire it back up!

 

[Dancing Fire]

Wonka
make sure you have a solid roof that will last you for yrs ,just had a new one put on cost me $24k

 

[wonka27]

Oh I will! One has a new roof in 2002, the other in 2003! Plan will be to stay in it for 5-7 years if we go the starter home route.

When you put a new roof on a house, do they come with some sort of warranty?

 

[fire&ice]

Yes, always make the offer contigent upon financing & home inspection.

I may be off base for your area - but townhouses do not have the resale value that a single residence has. Townhouses are a good option when real estate is highly inflated. Your area is quite affordable. I wouldn't buy a townhouse. Also, the bank will probably figure in your homeowners dues which can be very subjective & change on a dime.

My thoughts off the top of my head.

 

[fire&ice]

I would work with a realtor. They know the biz. Also, buy a book w/ the basics. I'm sure the Dummies seriers has "buying a house for dummies". Most of that series are full of great information.

 

[wonka27]

----------------
On 10/2/2004 9:50:23 AM fire&ice wrote:



I may be off base for your area - but townhouses do not have the resale value that a single residence has. Townhouses are a good option when real estate is highly inflated. Your area is quite affordable. I wouldn't buy a townhouse. Also, the bank will probably figure in your homeowners dues which can be very subjective & change on a dime. ----------------

Unfortunately, right at this point in time, buying a townhouse is really the only option. It is the cheapest option and really, considering I've never owned a home, I'd like to take it slow. The townhome would be a lot less upkeep than a bigger single.

The two I'm looking at in the same development as per my post do not require a HOA fee. Additionally, one was sold about a month ago that was listed for $95K, but they sold it at $88K. From the buyer's point of view, there is some value there. Now selling it might hurt a little down the road, but one never knows where the rates are going. 5-7 years from now the rates could explode and people may be looking for townhomes over singles because of price. Either way, it would put us in our own little place for $800-$900/mo. including taxes, ins., etc. At that price, owning a house is actually cheaper than renting a 2BR apt. in our area, and we will most likely take some equity out when we sell. We will be able to save up a substantial amount of money for the next house without struggling opposed to buying something like a small single for more and barely saving anything. I think this option really helps us build down the road for something better than trying to get it all right now.

I do appreciate the advice, and if anyone else wants to chime in, feel free!

 

[hoorray]

I've owned 2 townhomes (and loved both of them). The pros of townhomes are that they are less maintenance since the HOA takes care of the exterior, grounds, etc., and they typically less expensive. They can be very nice and much simpler than single family homes. The cons (financially) are that 1. HOA fees can change rather quickly depending on how well managed they are, etc. and 2. in a slower market, townhomes and condos are usually harder to sell than single family homes. Your thought about them being cheaper and thus more desirable doesn't make sense to me. If, down the road, they are relativly cheaper compared to SF homes than they are now, they might sell quickly, but at what price and gain or loss to you? Interest rates tend to impact the entire market on a relative basis, so if they go up to high, everything will come down accordingly.

I think townhomes can be a great way to get started in your own home as opposed to renting. But, I think single family homes tend to be where the real investment potential is.

 

[aljdewey]

Wonka, believe me, I feel your pain. My husband and I have talked about possibly going the townhouse route as well, even though that isn't what we really want.




We've thought long and hard on it and have come to the conclusion that it would be a mistake for a number of reasons. As someone pointed out, when the market goes down, it's the townhomes/condos that don't move....and you could be stuck with it for a period of time.




Second, the primary benefit to a townhouse/condo is that someone else does the maintenance. Not so, though, if you are going to one with no HOA. That also means no economic handicap either....if the water heater breaks, you pay for it and fix it yourself. Land? Yup, there may be less, but not by much compared to a small single family with a small plot of land. A townhome isn't significantly less work (maintenance wise) than a small single family.




Assume you do go for one with the HOA fee? Then you need to worry about the HOA board. Are they scrupulous? Do they manage the association's money well? You have no control over how often/how much they increase the HOA fees either, and that element could prevent you from moving your property later.....maybe you price it well, but folks don't want to buy it because of the exorbitant HOA fee. Totally out of your control, but it could prevent you from selling when you want to.




Third, townhomes can be much harder to resell because they appeal to a limited segment of the market - usually couples buying their first place or single folks. They aren't as easy to sell as singles.




Last, it could be an obstacle to you when you decide it's time to move on. What if you find the perfect single family house down the line, and you cannot move on it because you cannot sell your townhouse fast enough. Sellers typically prefer buyers with no contingencies....meaning your offer doesn't depend on selling your townhome.




I'm not saying it's not the right move for some folks......maybe it is. Just some things to consider as you think about it. There's a reason those are less expensive on the surface.

 

[Todd07]

Hi Wonka,


My 0.02c


I bought a townhouse to stop renting and start building equity that I could later put towards a proper house. I thought this a safe route. We expect to get a house next year.




I've read and believe that your home should be about housing and not making a killer investment deal. Be it a townhouse or a home, it should be somewhere you enjoy and be affordable, in case you drop down to one income etc. Just like it's not wise to have your retirement all in your company stock (i.e. Enron) it's not wise to have all your savings tied up in your home.




When interest rates rise, house prices will drop. If my Town house drops more than a house, I'm OK with that since I'm not stretched too thin.

 

[wonka27]

Hey guys! Sorry I haven't posted here in a couple days. Busy looking for houses online

Fire - Although we haven't gone out and looked at a house with a realtor yet, we have something lined up. A teacher at the school I work out has been doing part time real estate for the past 15 years. He is incredibly sharp and has taken at least 2 hours over the past two weeks to talk to me about the process and things to consider. It is nice having someone like that at your disposal. My g/f and I decided he will give serve us well with the experience and knowledge he has.

Lop - Ha Ha! Who knows how things go around in my mind! Since I'm not an expert in the field, I'm not saying what goes throw my mind is right. Understanding townhouses in this area would probably be best served by talking to my agent.

Alj - Thanks for your analysis of townhomes. After a few days of talking about things, I think my g/f and I are going to work toward a single family home. While we may not have enough money for much of a down payment at all (maybe none), it is probably in our best interest to get in something that can serve us for life as we have life planned right now, and if down the road 10-15 years things look different, we can reevaluate the situation then. Ultimately, for us buying a $150K single family cape cod or ranch will be a struggle as far as savings and being able to have money to do tons of things, but it can be done. I guess when most people buy their first home there will always be a financial struggle for a few years, and my ultimate thinking now is the sooner we struggle, the sooner it is over with. The rates are still too good to play games, even if the home costs are a bit inflated.

Todd - Your thinking was my original thinking. I certainly appreciate and respect your angle. It was my way of thinking! Over the past week or two, I got the realization on what buying and selling a house actually costs. It is pretty staggering. From what I'm seeing around here, to buy a $100K home around here costs approx. $3-$5K in closing costs that are basically fees (don't go toward anything such as taxes, down payment, etc.) that ultimately helps you out. Now, you can shop around for the best fees, and possibly use the Internet where there are some "No Closing" fees, but I've talked to two people who have tried it and found it to be a nightmare. Then, you need to sell that house which will cost you a nice commission and transfer tax in PA, not to mention the possiblity of low offers coming in etc. In the end, I can easily see spending $10K or more in fees that go to businesses involved in the process. Will the equity I build and increase in price over a 5-7 year time period cover all this. I doubt it. Furthermore, the cost of a house I'd want to buy now may be more down the road, and the interest rates can be higher. There isn't much room for them to go too much lower than where they are right now. This is just my thinking as my learning has evolved, and again appreciate your input.

Anyway, as it sits right now. We've changed our search to SF homes that are priced up to $160-$170K. We'll be stretching ourselves pretty thin, but we can do it. The one thing we have going for ourselves is pretty good security in our jobs (knowing our jobs should continue to exist so we can make the payments) as I am a teacher and she works in health care.

 

[aljdewey]

Wonka, you are RIGHT on target with many of your observations. I think nearly everyone in the work-a-day situation feels the same thing.....an initial struggle, an initial feeling of your payment being uncomfortable. But just like breaking in a new pair of shoes, you typically adjust to the bills and it's fine after that.




My hubby had another bout of doubt last night as we thought about putting an offer on a house. We are planning to take a bit from 401Ks to boost a greater down payment (there's a rate break if you put down 10%). As we talked about it, he says "why don't we just wipe out the 401K and keep the house payment as low as possible." Well, fine....except that it doesn't do much for us. It only drops the payment about $250 a month....just the cost of the 2nd mortgage.




He freaked and started worrying about "what happens if reach a point where we aren't making as much....we have no guarantee that we'll make this level of money for the next 30 years." After much thought, my reply was this:




When my parents bought their house in 1978 (for 36,900), it was a struggle. There was only ONE income - my military dad. Our friends bought a house last year....and only one of them pays the mortgage. He pays it by himself, and it's tight, but he does it. My point: EVERYONE takes a "risk"....a leap of faith....because there are NO guarantees. BUT.....if we reach a point where we can't make payments on the house, we can sell it. We have an out.




Something else. When I was a teenager, a loaf of bread was 50 cents. Now it's more like two dollars. A stamp then was 20 cents...now it's 37. Do you ever remember the price of bread and stamps going down? No. The price of goods has gone up, and so too have wages. What what a lot of money then is a pittance now....and if history holds as it has been, the same will be true going forward. So while the initial years of housepayment may feel lean, 5-10 years down the line, it will feel much more comfortable.




We have lamented many times this summer how much prices have gone up in just one year. (Nearly 60-70K on the houses we're looking at!). If we were to wait until next year, how much harder will it be then? We live in an area where the buildable land is pretty much exhausted and demand to live in a "commutable" distance is high. Prices around here won't go down much.




He finally agreed that we need to just bite the bullet......and we made an offer (that I expect will be rejected) today. We'll see what happens.

 

[Todd07]

As you noted, you both have secure jobs in fields that will remain in demand. Buy the house you love and can live in for many years.

Your incomes will rise while your fixed rate mortgage remains flat.




I went with a Townhouse because I was single. Now that I'm engaged, choosing a house together that meets both our needs is our next step.

 

[wonka27]

Thanks guys!

I'm glad my thinking is coming around. One of the biggest thing that helped with the struggle aspect was when I talked to a guy I bowl with.

30 years ago he bought a ranch. Monthly payment...$150. That just shows with time, one your income will increase and two money will inflate, but your home is locked in for life at that price (unless of course with a ARM). But even then if the rates go sky high...20 years from now the struggle will be a distant memory.

We're going out looking tomorrow. We both checked out the MLS this past week individually and have three or four both on our list. And we both had one that was ranked very high. Maybe it will work out

 

[hoorray]

You are right Wonka. My first boss told me that when I bought my first townhouse years ago, and he was right. Your income goes up, and your payments stay fixed, making it easier and easier to afford your home. Add equity growth, tax breaks, and other good things, and once you take the first step, homeownership gets easier and is typically a good financial decision. (Although I believe the investment is an investment in your housing, not a pure financial investment since you always have to live somewhere, so can't take the money and run very easily!

)

Good luck in your search!

 

[fire&ice]

Wonka, seriously consider looking into a no closing cost loan. We used the one I pm'd you. It was by far the smoothest transaction ever. They are the darlings of all the local attorney's. I heard about them from my best friend whose hubby is an attorney. They have closed three loans for them. All going smooth as anything. Closing costs are a total waste of money. You can really make a difference to shop around.

 

[aljdewey]

F&I.....can you forward that info to me too?




Heck, we're getting quoted 5-6K in closing costs on a no-points loan, and that's just outrageous.

 

[Todd07]

I'm curious about this no closing cost option too! Just found this link while searching for info


http://www.kiplinger.com/columns/ask/archive/2004/q0505.htm

 

[wonka27]

----------------
On 10/7/2004 11:48:33 AM fire&ice wrote:

Wonka, seriously consider looking into a no closing cost loan. We used the one I pm'd you. It was by far the smoothest transaction ever. They are the darlings of all the local attorney's. I heard about them from my best friend whose hubby is an attorney. They have closed three loans for them. All going smooth as anything. Closing costs are a total waste of money. You can really make a difference to shop around. ----------------

Fire -

I am definately going to work my way around to a couple different places! We talked to our first broker today, and I plan on checking in with a some others. Today was for the sake of getting the "letter" so we have some clout when making an offer. From what my agent tells me, many of his clients have been prequalified several places and were able to cherry pick the best program for themselves out of the bunch. Further, he said in a couple cases where rates were the same, it created a little competition with the fees and got the people the best deal.

I did check out that site. Unfortunately, they don't serve PA. I will looksy around and consider that option though! There are some advertised in the newspaper, although it makes me weary too

The way it is looking right now, I have enough money to cover these terrible closing costs but will have to go with a 0% down approach.

I'm a pretty sharp guy, so I promise I won't do a thing without checking my options!

BTW, we did 5 drive-bys today and are interested in seeing all of them. This can be a fun and busy weekend and week! Here is our #1 pick at the moment:

Our Fave Home

It is in a great location...within a mile of the major highway we both need access too and is in the boundaries of the best school district in our neck of the woods! Plus it is just a heck of a nice looking piece of property in an urban, but secluded area

 

[wonka27]

----------------
On 10/7/2004 9:53:28 PM Todd07 wrote:


I'm curious about this no closing cost option too! Just found this link while searching for info

http://www.kiplinger.com/columns/ask/archive/2004/q0505.htm

----------------

Great little piece, Todd. The no fee loans I saw did carry a higher rate and some money will still be needed. For example, I would still need to escrow 1 yr &2 mos of taxes and property insurance. That is $3K right there. None the less...gotta check out all the options!

The broker mentioned an 80/20 loan to me too. I'd be curious to see how that worked itself out as far as payments. No PMI...so if the payments worked out to be about the same...I'd be a happy camper because at least some of that is going toward building equity.

 

[fire&ice]

----------------
On 10/7/2004 10:37:04 PM wonka27 wrote:

----------------
On 10/7/2004 9:53:28 PM Todd07 wrote:


<
Great little piece, Todd. The no fee loans I saw did carry a higher rate and some money will still be needed. For example, I would still need to escrow 1 yr &2 mos of taxes and property insurance. That is $3K right there. None the less...gotta check out all the options!

----------------

Yeah, you have to pay those upfront. Again, that biting the bullet. These are owed & you end up getting them back ultimately and you roll it over for the re-fi or next loan. Something to think about. If you can jockey it, leave your rental & move right into the home. You won't have to pay rent & the you skip a month of payments. Rent is paid upfront. Mortgage interest is paid in arrears. So, if you plan correctly, you will be able to bank one months house living expense. Am I making sense?

Al, I'll try to PM you. Something crazy happened w/ AOL & my ability to post/pm/email, etc. But, all of a sudden the problem is fixed.

 

[Kamuelamom]

----------------
On 10/7/2004 11:48:33 AM fire&ice wrote:

Wonka, seriously consider looking into a no closing cost loan. We used the one I pm'd you. It was by far the smoothest transaction ever. They are the darlings of all the local attorney's. I heard about them from my best friend whose hubby is an attorney. They have closed three loans for them. All going smooth as anything. Closing costs are a total waste of money. You can really make a difference to shop around. ----------------

Hi F&I! I'm interested in this too. Can you please PM me the info as well? Fees and closing costs are a hot button with me right now.

I'm open to all options.

 

[Kamuelamom]

----------------
On 10/6/2004 7:01:19 PM aljdewey wrote:


He finally agreed that we need to just bite the bullet......and we made an offer (that I expect will be rejected) today. We'll see what happens.
----

Yaaaaay Al! I hope it will go through for you, or whatever happens is meant to happen. Buying your first home is an exciting time but you seem well informed and educated about it so you should be fine. Good luck with the offer.

 

[wonka27]

Ha Ha!

Ok...here is how things went for the first house we were going to put an offer in on. Beautiful place, looked completely remodeled.

Saturday was the first day of showings. We were there at noon, and were the 6th group to check it out. We loved it, and asked the realtor to get us back in ASAP for a second look so we could make an offer. He called Sunday morning and left messages on three different phone lines, but couldn't get a hold of the seller's agent. This morning, he got a call from the seller's agent, and she said that between Saturday and Sunday, 16 people viewed the house and by Sunday afternoon they had 11 offers. The house was gone in about 36 hours! Needless to say, we never got our second look and certainly never got as far as writing up an offer!

Good gravey, this is going to be tough to do! People are going wild over the nice houses in my area...

 

[aljdewey]

Yup - we've seen that too. There are a bunch of people shopping in our price range, and if you don't move quick, you don't get a shot at it.

This has made me entirely rabid....fortunately I work at a workstation during the day where I have constant web access, so I check the MLS listings about...oh....FOUR TIMES a day! I have literally seen homes come on the listing at 2 p.m. and had our broker get us in that same night four hours later!

It would help if you make a list of "MUST-haves" and a list of "would-be-nice-to-haves". Take this list with you as you look at homes. If you really like a house, then take your second look at the same time you take your first look, because you may not get a second look if you wait.

Walk around outside and then come in again as though you were revisiting. Check out closet space, try to figure out where your furniture would fit, etc.

If you like the house, don't wait....make an offer. If it's accepted, you usually have 10 days during which you can get anyone you want to go look at it (plumber, home inspection, radon tester, psychic, astrologer, whatever!) before signing a purchase & sale agreement. This gives you time to take as many second looks as you want.....exclusively. If you decide to withdraw your offer in those days prior to the P&S, you typically get your deposit (your earnest money) back. You're not locked in until the P&S agreement is signed.

 

[fire&ice]

----------------
On 10/19/2004 5:26:11 PM aljdewey wrote:


It would help if you make a list of 'MUST-haves' and a list of 'would-be-nice-to-haves'. Take this list with you as you look at homes. If you really like a house, then take your second look at the same time you take your first look, because you may not get a second look if you wait.

Walk around outside and then come in again as though you were revisiting. Check out closet space, try to figure out where your furniture would fit, etc.

If you like the house, don't wait....make an offer. If it's accepted, you usually have 10 days during which you can get anyone you want to go look at it (plumber, home inspection, radon tester, psychic, astrologer, whatever!) before signing a purchase & sale agreement. This gives you time to take as many second looks as you want.....exclusively. If you decide to withdraw your offer in those days prior to the P&S, you typically get your deposit (your earnest money) back. You're not locked in until the P&S agreement is signed.



----------------

Yeah, in this heated up market, these are very good suggestions in the jungle that is currently the real estate market.

And, if you find a house you like that is "under contract" don't assume the sale will go through. Our second home was a home that didn't go through fruation because everyone freaked out shortly after 9/11. Weird - put housing temporarily on the back burner for many buyers. The owner freaked. We got the house for significantly less than the orginal contract because we could close in 2 weeks. We were pre-approved & had a relationship w/ many of the players already. Weird again, the owner met our price because she was to leave for Afganistan on a Missonary assignment. Once in, we realized it was *perfect* for us (could be meant to be). But, we had lots of choices.

I know my story is unusual. But, weird things happen in real estate. Also, check for "estate sales" in the paper. Often the house will be "on the market" but very quietly or juuuust not yet on the market. Gets you in the door first. On another funny real estate note, two homes my parents sold were sold when someone knocked on the door & asked if the house "could" be for sale. And, I'm embarrassed to say that we have knocked on someone's door in our area. It's our dream house & the location the best. We left our pertinent contacts w/ a please contact us first ask. They are lovely people that we talk to from time to time on how to appropriately renovate/restore aspects of the home.

 

[Matata]

In addition to the good advice Aljdewey has already given, if you know a contractor or talented handyman, take that person with you when you look at houses. He/she can help spot potential problem areas before you make an offer. I was lucky enough to be able to do this when I bought my house a year and a half ago and it gave me some peace of mind that I wouldn't get any surprises during the inspections or after I moved in.

Also, remember to kick the tires: check the water pressure (it's not fun to get in a shower that dribbles); pull out drawers and open and close doors; make sure appliances staying with the house are working properly and any special gadgets required for their operation are located; try not to let cosmetic touches blind you to underlying problems; and be aware of the tricks used to make a home appealing (the smell of fresh baked cookies or other aromas that can touch the heart but cloud the mind

.

Trying to buy a house in my neck of the woods is very difficult. A friend of mine sold her house last week 24 hours after it went on the market and her realtor had 2 interested parties engaged in a bidding war in the living room -- and this was for a basic starter home.

Good luck Wonka, I hope you find the house of your dreams very soon.

 

[wonka27]

Thanks for the moral support!

This house definately opened my eyes to what needs to be done. We have to know what we want, and be willing to jump at it when it comes available. You all gave great advice!!!

Tomorrow we're going to look at a pretty nice looking brick ranch. It has been on the market for three weeks and the price was just dropped $4K. I don't know what is wrong with it to still be around. My main guess is the fact that it has handicap fixtures (hall rails, fixtures in the bathroom, one of those sliding chairs for the cellar steps) and maybe that is turning people off. We'll see, if it is nice, but has those things, we may go after it, because they can always be removed! Might be a good chance to buy a good house at a lower than market price (although still to high by most standards)!

 

[aljdewey]

Wonka....a few tricks I've picked up in the process:




1. If your realtor provides access to MLS, you can probably do a search to find out what other houses on that street have sold for in the last 9-12 months....the more recent the data, the more pertinent. Compare things like sq. footage on the lot, gross living area, amenities like city/town water vs. private, garage/no garage, central air/no cooling....how does it heat (oil, gas.....steam, baseboard, forced air).....if yes on the garage, is it next to the house on ground level (worth more) or under the house (priced a bit less)....linoleum vs. ceramic tile; hardwood vs. carpet. Nicer kitchens/baths add more to a house's value than most other features.




We found this helpful - we looked at a house on Houston Street that was a 50-yr old cape.....another that was nearly identical had sold a month earlier for 10K less than the asking on the one we were looking at. They knew it because the price was adjusted when we did the showing.




2. Also do a search for the last 3 years on the street --- has the house been bought and sold a lot in the last few years? If so, I'd want to know why.




3. If there is "something wrong" with it, find out for sure what it is first! Hubby and I were all set to put an offer on a house that was perfect for us.....we were told that the buildings on the other side of the chain link fence in the backyard were "elderly housing". We took a ride over there......found out it was "section 8/low income/gov't subsidized housing".....and let me tell you, it didn't look like Pleasantville. Plus, I called the zoning board for the town and learned there was a street (approved on paper but not in existence yet) that would run right next to that house and CONNECT this neighborhood to our house. No thanks. We'd have had a hard time reselling that.




4. On that note, call the building inspector and the zoning engineer. They are usually frustrated, unappreciated folk who will tell you loads if you ask, or tell you who can help you if they can't. Ask about the street, etc. If there are neighbors out and about, ask them how well the town plows the street in the winter or parking restrictions, etc. Check your local police station and ask about the crime rate in the area. Ask your realtor if he/she can fathom why the house isn't selling (overpriced, dicey location, too dated or abused.....etc.)




4. Check out your local registry of deeds. In Massachusetts, I can find them online, so I can look up by street what other people's deeds are worth. They don't reflect full purchase price, of course, but I know that the $318 mortgage on house #1 likely means the house went for $360. It can also tell you what someone bought a house for when they bought it (or if they've refinanced 18 times and pulled out equity) --which gives you a good idea if they can be flexible on the price now.




If it's still on the market and you don't know why, you ABSOLUTELY have to find out the why first. It could be the "why" doesn't matter to you. (Rich and I know many folks wouldn't buy where we are going to because the school system is atrocious, but we aren't having children, so it's fine with us that the schools aren't great.) Look to see if there are building restrictions on your land (conservation land, etc.). Is there standing water from a pond (mosquitos in the summer)?




On older homes, when was the heating system last updated? The roof? The plumbing? What is the foundation.....fieldstone or poured concrete? Does it have a bulkhead? Check the basement carefully - does it smell musty from water? Are the water stains around the foundation suggesting possible water problems in the basement?




Careful, too, when looking for a "deal".....sometimes the cost to update things is more than buying a house that has what you already want. Make sure you consider this.




I've concluded that buying a house is like a juiced up version of chess or game of Clue...it's up to me to learn about Colonel Mustard with the rope in the hall. No one will tell me if I don't ask, and I don't want surprises later. Or, more accurately, if problems do arise later, I don't want to feel like I didn't do enough diligence to reasonably avoid it.




Rich and I didn't get the house last week....they are priced too high (for what we'd get) and we won't pay what they want. We are putting an offer in tomorrow on a house that I think we stand an EXCELLENT chance of getting. We have watched as it's being built, and it hasn't even hit the market yet. We saw it (builder showed it to us this weekend), and we think it's the one. Hopefully we can get it.....will let you all know.

 

[aljdewey]

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On 10/19/2004 10:52:35 PM wonka27 wrote:





Tomorrow we're going to look at a pretty nice looking brick ranch. It has been on the market for three weeks and the price was just dropped $4K. I don't know what is wrong with it to still be around. My main guess is the fact that it has handicap fixtures (hall rails, fixtures in the bathroom, one of those sliding chairs for the cellar steps) and maybe that is turning people off. We'll see, if it is nice, but has those things, we may go after it, because they can always be removed! Might be a good chance to buy a good house at a lower than market price (although still to high by most standards)!
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On this house you mention above, I'd especially want to get info on maintenance done in the last 10 years or so. The equipment you describe means either handicapped or potentially elderly occupants previously....and they may not have had the income/labor resources to keep up with major stuff like the roof, heating, water heater, plumbing, etc. I'd ask seller's agent for this information.

 

[wonka27]

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. I will definately ask my realtor for pricing info on the street, and look into the dating/upkeep on all the major systems. 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.