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RE: Buying My First Home. - 3/25/2008 4:38:12 AM

LadyHathor

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My only advice is crawl under the house, and over the house, look at pipes, understand underground wiring and AC or heating units in the ceiling.

I wish you well!

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RE: Buying My First Home. - 3/25/2008 4:47:44 AM

lusciouslips19

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When yousee shows of people who end up with disasters. They didnt get the house inspected. Always pay for an inspection and get the owners to fix the problems or knock money off the purchase price for specific problems. Thats my only advice.

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RE: Buying My First Home. - 3/25/2008 5:08:04 AM

pahunkboy

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Cool. Lawyers kill deals.

Take a flash light. Look in the basement AND the attic.   Look under sinks, pipes and wires. You dont need to pay anyone- use the naked eyeball, and a flash light. Note if foundation is cracked or sagging.

Furnace and roof are important.

then- wiring and plumbing.

detect smells, mildew. rot.

also- cruize the block at 11pm sat night. you need to know how it is.

always think of resale.

i personally insist on a southern exposure, and off street parking. a corner house is always worth more.

ask about tax assements- both the annual and the improvemtns- if you need new sindwalks you pay.

a higly asseseed proerty isnt worth it.

2 houses- say 1 is taxed at 2k a year, the other , $700 a year.   30 yrs of taxes- is almost 40k higher!

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RE: Buying My First Home. - 3/25/2008 5:15:40 AM

pahunkboy

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I got my brother his 1st house. listen to this. he was scrimping at the time. the offer was 84k, 82k $ and a chevy auto, value 2k.

the owner exceptd.

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RE: Buying My First Home. - 3/25/2008 6:31:36 AM

KatyLied

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I think it's good advice not to purchase at the highest tier of your (lending) approval. I was shocked at what the bank approved me for when I was doing my construction loan. There is no way I ever would've considered borrowing that much money. Not on a single income.

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RE: Buying My First Home. - 3/25/2008 6:49:39 AM

LaTigresse

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Every time I've purchased a home I take the "approved for" amount and wack it in half......that is the price range I look into. This way I can double pay my house payments and save a ton of money in interest. Also, I know that IF I get in trouble financially I can afford the place AND by paying extra on the principle I am not just paying interest those first 10 years or so. I actually gain equity much more quickly whether the property appreciates in value or not.

When I look at a property I ignore cosmetic things like paint, carpet, tile, etc......those are things I can change myself. No big deal. I look at the bones of the house, the things that really matter to me. The things I cannot repair by myself and will cost a fortune to hire someone else to do so.

Fixeruppers are great, IF you can afford to fix it up. I made the mistake once of buying a small house on a large lot, thinking I could add on, easily. If not for the local building code hell I could have. I just decided it would be easier and far more cost effective to sell and move on. The bonus was that after 5 years, and very little investment in the property, I was able to walk out $20K ahead for the down payment on the next house. I had paid down principle and the value had gone up.

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RE: Buying My First Home. - 3/25/2008 7:28:28 AM

KatyLied

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Yes, it is prudent to give yourself a safety net and not grossly overspend on your home. As others have mentioned there will be routine maintenance things, such as water heaters that will need replaced. You may also get in the home and decide that you can't live without a new deck or patio, and it's nice to know you have some cash or borrowing power available for home improvements.

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RE: Buying My First Home. - 3/25/2008 10:26:17 PM

brightspot

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I want to give thanks to all of you for the wonderful advice.
From what you have all said I am doing pretty good so far.
I am going out to look at five more houses tomorrow, I'm very
excited.
I have a lawyer and a really good Realtor, here in Minneapolis
the prices have had to go really low and there are nice empty
houses everywhere that people just want to get off their hands.
I began looking at some forclosure houses, wanted to start at
the bottom and work my way up so that I could learn more and
more before I finally make any serious decision.

Someone asked me why I would ask this question here, well I
think the thread has answered your question.

Because I know there are a lot of very smart people here and
from all over the country and I got some very excellent advice!
When I go out tomorrow I will have all your advice tucked
under my hat, the houses I am looking at tomorrow are a bit
more up on the price scale, still damn well below market value.
I tend to be a person who thinks and trusts that my home is just
out there waiting for me to find it and I will know it when I do.

I plan on taking all the precautions, bring in the inspectors etc.
I have noticed that almost all the homes I have look at have put
in brand new furnaces and electric and I have been schooled by my
late father of the importance of making sure to look for wet basements
and cracks in the walls giving away the secrets of the health of the
foundation. I always look very carefully at the basement as I live
right in the middle of tornado country. Also of course the age and
condition of the roof. don't want any raindrops falling on my head .

I am really not scared of anything cosmetic as I am really a good
fix it person and imaginative interior designer, comes with being a
Taurus, same with the yard and curb appeal .

Thanks again everyone and I will keep you updated on how the
search is going, geesh just saying that made me giggle, like it is
almost simular to finding "the right" person on a dating site .

Huggz, Missy.

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RE: Buying My First Home. - 3/25/2008 10:39:35 PM

SugarMyChurro

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I don't feel like rereading the thread, but here's one more tip: visit the property at several different times of day, maybe more than once. Sometimes you discover the neighborhood is other than what you thought at night, or in the late afternoon, etc.

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RE: Buying My First Home. - 3/25/2008 11:16:36 PM

Real_Trouble

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Missy,

If you're looking at the Minneapolis market, are you going for a stand-alone house or a condo? I used to live out there and still have a few friends out there (some of whom just got shit-canned by GMAC, sadly); the condo market there is overbuilt with nice places and undersupplied with buyers.

That is one spot where, if you intend to buy a place and sit on it for a long time, you could probably make out very, very well. If you're looking for a house, stay away from all the tiny ramblers near Minneapolis or St. Paul proper. The suburbs just slightly out will have better properties for comparable prices with lower tax assessments and better school districts; long run gain for you there.

Lot of real nice condos around currently, though...

Good luck.

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RE: Buying My First Home. - 3/27/2008 8:04:22 PM

UtopianRanger

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quote:

ORIGINAL: brightspot

Because of the fire last August I am in the process
of looking to buy my new home soon.

Since this is the first time I will be walking out on this
limb, I would appreciate any advice on things you guy's
learned positive and negative when buying your first home.

Even though it is considered a buyer's market right now, I
feel I want to cover my ass in any ways possible.

Anything, anyone could share would be much appreciated.

Thanks Missy.

Way late on this one.....

Anyways....I always say the key is to become indifferent.

Remember that the prospective property you are purchasing is constructed from wood, metal and plastic ; it’s purely an inanimate object devoid of consciousness and emotion. So don’t let your heart become attached during the vetting process.

The other tactic I use, which is opposite to what Phunk has mentioned, is instead of me, the buyer, throwing something else in to sweeten the deal - I have my agent write up the offer stipulating that the new riding lawn mower in the garage/shop or the turn of the century pie safe in the kitchen comes with the property at no additional cost. The last non-rental I purchased, came with a restored orange 1941 Ford 9n tractor with a blade and brush hog. The older couple I purchased the property from were moving into town for the purpose of being closer to the hospital. They no longer needed the tractor.

Now….here is the part I hate. As much as I like and respect my pal Sugar - I slightly disagree with him here. Unless you are located in the vastly over-inflated markets--or you’re a cash buyer--- on the West coast /Florida /certain parts of the East coast - NOW is definitely the time to purchase. The ’’inter-bank’’ lending rate is at two-and-one-half percent… What are you going to do : Wait and hope that it drops another percentage point?!

What you need to do though….is come in with the mindset that says ''Who ever seller is - He’s going to negotiate down''….and I mean WAY down. It’s a total numbers game….sooner or later you'll find a seller that will collapse and bite.

The other thing to keep in mind…..is that within the framework of these depression / recessionary time periods, are converging cycles within cycles.

What we’re seeing /experiencing right now with these lending /financial institutions, is a combination liquidity /insolvency crisis; what we’re likely see in the near future--- through the process of the evolutionary cycle--- is the ‘deflationary’’ aspect of the cycle ; where interest rates rocket up---to stimulate the bond market and re-stabilize a falling currency---and financing becomes much harder to obtain.

So.....if you're prospective purchaser in need of financing - Buy now

Good luck and have fun.

- R

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