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We had the sellers buy us a warranty and it was a joke. Coverage included roof leaks and trying to make a claim on that was impossible. The warranty company kept assigning contractors that didn't call us or come to the house. Some contractors they assigned didn't even have CCB licenses. We finally gave up after several weeks of no-call/no-shows and paid to fix it ourselves. If someone wants to buy you a warranty then great, but I don't think that they're worth the money and I doubt that there are "good ones" vs. "bad ones". If you're pissed at the seller then just go with the most expensive one you can find.
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Jan 30, 2015 23:33
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Of course any warranty provided by the seller is going to the lowest bidder and they're going to be poo poo. Are there no home warranty companies that charge a premium but provide good service?
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Jan 31, 2015 01:44
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Elephanthead posted:Interest rates are very low Yes they are. My mortgage guy called and asked if it was ok if he ran some numbers since rates are down from when I bought 5 months ago. No harm in him doing that, so I say sure. He calls me back 10 minutes later because there's a hit on my credit report. Something for $54. That dropped my credit score by 70 loving points. From 2.5 years ago that I was never contacted about because the only address they have is one that I haven't lived at for over 4 loving years. Gonna see if I can pay it and get them to list it as an error or something so it's completely off my record. If not I might look into a credit counselor or whatever and pay 5x the cost to get it fixed out of sheer spite. I guess the one positive is that it didn't show up until after I bought?
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Jan 31, 2015 01:52
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dietcokefiend posted:I would never dip into retirement funds for a house purchase. My first home I was all the "great investment" mindset. I dumped about 20k into it finishing basement and doing other bits here and there, and I still came to the closing table with a 7k wire transfer. I think that the decision of whether or not to dip into retirement funds for a house purchase is really going to depend on that person's financial situation. Given the choice between only having a 15% down payment or having a 20% down payment + some left over for emergency funds by taking out a 401k loan, I think that the 401k loan would be a way better proposition. All of the money winds up back in your retirement account, including interest payments that you're making, so you're really only incurring a small opportunity cost by taking out the loan (because the interest payments to yourself are probably less than what you'd earn from leaving the money alone). It's certainly not a winning investment scenario, in any case, unless you're in the extremely rare situation where the cost of ownership really is cheaper than the cost of renting (keeping in mind that even the people who think that they're in this situation are often just doing the math wrong or leaving out some of the typical expenses of home ownership). Basically, I'm saying that there could be situations where a 401k loan while making a home purchase makes sense, although in most cases you should definitely leave that money alone. e: That said, I don't think that I'd ever dip into IRA funds, but that's pretty different from dipping into a 401k. QuarkJets fucked around with this message at 02:29 on Jan 31, 2015 |
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Jan 31, 2015 02:19
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Edit: nevermind
Cythereal fucked around with this message at 15:40 on Jan 31, 2015 |
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Jan 31, 2015 03:01
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Wow, sounds a lot like me, except I have a wife instead of a girlfriend. Married over 6 years, so poo poo seems stable. Living in a 1 bdrm apartment on top of each other. We've been renting in the same lovely apartment complex for 6 years, we've looked at all the other area rentals and they suck. Rent in this area seems hosed up, everything under $1000 is trash, then there's a gap and it goes from $1300 on up into the stratosphere. (DuPage County, suburbs west of Chicago) I feel like I can't justify paying $1300+ in rent rather than buying, even if it's a condo or townhome with an HOA. I have $30,000 saved, plus a 401k that I can borrow up to $19,000 from for a home purchase, and my wife had an old 403b that we rolled into a traditional IRA in Dec which you can do a one time withdrawl from up to $10,000 towards the purchase of a "first home," without penalty, but it counts as income on your next taxes... I thought I had poo poo covered, but after getting a pre-approval letter last night, I just don't know what the gently caress. I thought maxing out at $130k was responsible, but there's about 4.5k in closing costs and possible additional escrow of $4000 for first year property tax and homeowners insurance?! I had no idea. And I haven't even looked at property yet, need to get a buyers' agent, don't know how that's going to go since I'm looking for relatively "cheap" property. When I talked to the loan officer last night, I only gave my info, not my wife's. I've worked for the same company for 8 years, got promoted in 2013. She had a steady but low-paying job for 5 years, then got a new job that paid 20% more, but that only last 6months before the owner was indicted for Medicare fraud around this time last year. Now we're not even getting a W2 for that company and can't e-file... Ever since then my wife has worked 3 different, temporary part time jobs - I don't know, can that possibly hurt getting mortgage approval? Like am I better off just applying for the mortgage as though she's a housewife, or would it actually be better to include her financials even if they've been unsteady during the past year? I hear there are Real Estate agents that will help find you a place to rent... is there like some secret underground society of rentals that don't suck that aren't advertised, that you need a secret handshake and an agent to get? My mother has been buzzing in my ear for years telling me to buy buy buy something, anything, just own property!!! She seems to think it's the only way to accumulate wealth and says things like, "you'll always have to live somewhere!" and "rent is just throwing money down a hole!" Sorry to ramble on, but my mind is buzzing with all this poo poo.
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Jan 31, 2015 03:38
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LabyaMynora posted:I don't know, can that possibly hurt getting mortgage approval? Like am I better off just applying for the mortgage as though she's a housewife, or would it actually be better to include her financials even if they've been unsteady during the past year? Secondly, there is a hidden market for rentals in most markets, but it's people who want to sell their homes but can't get enough money to do so, so instead they rent them out. Real estate agents get paid referrals for hooking up renters with owner-rented homes. They'd much rather get the commission, but it is a decent consolation prize.
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Jan 31, 2015 04:56
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swenblack posted:I'll field these two. Adding a borrower can't really hurt your application, because the banks look at qualified income. Not having a W-2 makes things hard, but you'll probably just have to send them a copy of your entire tax return. Some banks frown on this and others are fine with it. Either way, a decent mortgage broker can help you. They don't get paid if you don't get a home, so they're highly motivated to make things work. Just check whatever rate you're getting against bankrate and zillow to make sure you're not paying above market rates. Thank you very much! Also, they only seem to want 2012 and 2013 tax return (so far) which is a world of difference. 2012 is each of at 1 job. 2013 is me at 1 job, her at 2 jobs in an obvious step up. 2014 is still me at 1 job, but her at 4 different jobs (one of which is not sending a W2 'cuz they bankrupt and indicted.) So, thread that's motto is "Do Never Buy," should I buy, or should I try to see what the secret underground fight club of realtor referred rentals looks like?
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Jan 31, 2015 05:43
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LabyaMynora posted:Thank you very much! Also, they only seem to want 2012 and 2013 tax return (so far) which is a world of difference. 2012 is each of at 1 job. 2013 is me at 1 job, her at 2 jobs in an obvious step up. 2014 is still me at 1 job, but her at 4 different jobs (one of which is not sending a W2 'cuz they bankrupt and indicted.) Keep in mind you'll probably pay a couple months of rent to the broker. I think you should buy if you have kids and / or are expecting to stay in the area ~5-7 years.
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Jan 31, 2015 05:51
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Highly recommend talking to a few realtors about renting. We did this and ended up with a short-term snowbird's rental. Met the couple, had dinner, went for a hike, and they ended up renting the place to us for $1600 when the going rate for a house around here is $2500+. It's nice to shoot for owners who weren't really planning to rent, because they consider the rent just "extra" on top of having a housesitter. Don't borrow from your 401k. Don't do it.
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Jan 31, 2015 05:54
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LabyaMynora posted:I hear there are Real Estate agents that will help find you a place to rent... is there like some secret underground society of rentals that don't suck that aren't advertised, that you need a secret handshake and an agent to get?
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Jan 31, 2015 14:00
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As far as renting goes. Get on the Facebook groups for certain neighborhoods you like. Usually stuff for rent gets posted there before it gets advertised, and you can probably get a deal as well. Also don't be afraid to negotiate. I wrote my landlord a letter about why I would be a good tenant and why she should lower the rent by15% to get me in. I've been renting from her for 2.5 years now and the arrangement has worked out for both of us. Not having w2s wasn't a problem for me. I just had to submit my last three years tax return. Don't worry about your mom or anyone else. Owning a house makes sense for some people and not for others. That calculus takes into consideration your life plans, your temperament, your risk tolerance, your identity, the dynamics of your relationship, and a bunch of other personal factors in addition to the financial 'numbers' consideration. Therefore, don't let anyone tell you why you should or shouldn't buy. Do some introspection and own the decision of weather or not to take the plunge.
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Jan 31, 2015 14:46
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Print the OP and send it to your mom.
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Jan 31, 2015 15:35
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So how do I find a good home inspector? I need a guy that can find important things not broken dishwasher and things under $10k to fix. I need someone to test boiler pipes, pool lines, termite infestation, and death mold. Every guy I see is just some ahole you pay to give you a report to squeeze $2,000 worth of concessions from the seller. Should I look for someone who isn't a home inspector?
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Jan 31, 2015 16:52
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I'm putting an offer in for a FSBO house as a first time homebuyer without an agent (I have a well regarded real estate attorney retained). I have some questions about negotiation that go beyond legal questions. It is currently not on MLS in any way, just Zillow pretty much. The seller inherited it from his aunt who had it designed and built for her in 1969. The sellers are an older couple from the area with a house they've lived in for 20+ years, so they have no interest in moving. It's not in a great place to rent either. They've owned it for about 5 years, their son stayed in it until recently. It has been on the market for 60 days so far. It is ~1200 sq ft, 2 bd 1.5 bath. It was architected (that's not a word) for them, and is very unique looking. The architect was a student of Frank Lloyd Wright, and you can tell, it kind of looks like that. It does not appear to need much work at all (although of course I will have it inspected, so that might change), but the windows are old. The only item on the real estate disclosure is that the seller had to clean up some water pools in the basement. It is across the street from a lake. If I were to buy it, I would like to eventually convert parts of the basement. I don't really need the space, and I could see myself living in this house for a very long time, but in case I do decide to resell it, having 3 BD and 2 full baths would help a lot, and I believe it will be easy to do (assuming the water in the basement isn't a problem -- my biggest concern). It is right on the edge of a very nice neighborhood. $150-$200k is about median home price around here, and just a couple of blocks over from this place, all the houses are $500K+++ It is listed for $212k. My feeling is that I have some time to negotiate, since it is not listed on MLS, the seller doesn't live in the house, it's the middle of winter, and it's uniqueness automatically lowers the pool of buyers. It seems like I should offer a low amount and be prepared to play it slowly. $212k is a lot for a ~1200 2bd house around here, but I'm sure the seller feels it's uniqueness, proximity to the lake and nice neighborhood, and ready to sell nature make it worth more (and I agree). It's not a stretch for me at $212k (I'd probably be getting a 15 year mortgage), but my original plan wasn't to get a house for another year or two, so I still have a lease, and while I have enough saved up to not be screwed if things go wrong, I'd probably be doing a ~10% down payment instead of 20+% like I'd like so I'd still have savings for repairs/oh poo poo/etc. So, after all that setup, what is too low for a first offer? I'm thinking of the house as priced at $200k, since neither of us have a real estate agent (I realize the seller might not feel this charitable, but I think it is telling that $212k-6% is the very round number of ~$200k). Is it crazy to offer $180k? I think it might be. I'd do that if I were negotiating for a car, but houses have more emotional attachment, and asking for $20k off a $200k purchase is the same percentage as $2k off of a $20k, but obviously is a lot more money in real dollars. If $180 is crazy, what isn't? $185? $190? I really like this house, and I'm not going to find another like it, and my financial situation is good. It wouldn't be the end of the world if this fell through and I waited another year or two and bought with 20% down. That said, I'm as sure as anyone can be that I'm happy in this city, I have a ton of job prospects around here, am in a stable LTR (buying it with only my name for now, but marriage is probably coming very soon). I realize how stupid this sounds, since no one can predict the future, but I could easily see myself in this house for 30+ years. Help goons!
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Jan 31, 2015 18:17
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What have nearby 2 br 1.5 bath sold for? Your question is impossible to answer without recent comparable sales and accounting for interior trim etc. In the $200/sq ft ballpark in random average non-urban real estate markets most buyers are looking for finish like stainless appliances, granite countertops, and hardwood floors. Beyond that and just entirely off the cuff offering $180k with limited contingencies on a $212k listing that had been sitting on the market for 60 days wouldn't be outrageous in an average market, but the fact that it has been sitting on the market for 60 days says one of two things 1) there is no buyer interest or 2) the sellers are being picky about offers. I'd be somewhat suspicious of the latter if as you say the sellers are unmotivated. Whatever you offer, do it on an actual offer sheet (most state real estate associations have one that they issue). Get your financing approval process started ASAP and provide a pre-approval letter with your offer. Give yourself about 30 days between your offer date and a proposed closing date. Keep your contingencies limited to access for inspection and financing. Start looking for a home inspector now and get estimates on the specific stuff you plan to do like the windows. I personally would assume that the water in the basement is going to be a significant/expensive problem with finishing, and be pleasantly surprised if it isn't. Unless the roof has been redone in the last ten years I would also assume that needs work and if as you say it is some kind of custom Frank Lloyd Wright business that could be more expensive than you expect - price accordingly. BEHOLD: MY CAPE fucked around with this message at 18:51 on Jan 31, 2015 |
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Jan 31, 2015 18:48
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Finally back under contract again after looking through a pool of houses this winter. Pocket listing and basically offered the price they wanted. Place is awesome, so not worried about that. Downside right now is closing is 74 days out  Spoke with my loan guy today on rates for a 90 day lock or waiting for the 60-day span for those rates in a couple weeks. With a close date of April 13, I think we are pushing close to a year in this apartment after selling our old home. Do never sell when can never buy?
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Jan 31, 2015 18:54
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DrBouvenstein posted:Yeah, that's what I figured. Living in your own home is loving rad. Owning your own home loving sucks.
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Jan 31, 2015 22:51
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Final offer extended to seller post-negotiation. Time to see if he's willing to walk over $2k on a $289k house, because we are! The negotiation process has really been draining, and wasn't like this last time. 3 counter-offers intially, and now 2 counters post-inspection, each offer with 1-2 days in between.
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Jan 31, 2015 23:11
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Elephanthead posted:So how do I find a good home inspector? I need a guy that can find important things not broken dishwasher and things under $10k to fix. I need someone to test boiler pipes, pool lines, termite infestation, and death mold. Every guy I see is just some ahole you pay to give you a report to squeeze $2,000 worth of concessions from the seller. Should I look for someone who isn't a home inspector? Home inspectors are generalists; they can't be experts in every area; if any at all. They're very limited in what they can actually do to search for problems. If you want something particularly inspected thoroughly, you're best off hiring a professional in that particular trade.
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Jan 31, 2015 23:54
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baquerd posted:Final offer extended to seller post-negotiation. Time to see if he's willing to walk over $2k on a $289k house, because we are! The negotiation process has really been draining, and wasn't like this last time. 3 counter-offers intially, and now 2 counters post-inspection, each offer with 1-2 days in between. You're willing to walk over a sum that's <1% of the purchase price? That seems... remarkably picky.
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Feb 1, 2015 00:21
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LemonDrizzle posted:You're willing to walk over a sum that's <1% of the purchase price? That seems... remarkably picky. I'm not all that happy over the current offer, and I'm sure the seller isn't very happy either, which probably means it'd be a deal well struck. I can't look at this as 1%, it's $2000, which is what the seller is looking at losing out of pocket.
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Feb 1, 2015 01:16
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baquerd posted:I'm not all that happy over the current offer, and I'm sure the seller isn't very happy either, which probably means it'd be a deal well struck. I can't look at this as 1%, it's $2000, which is what the seller is looking at losing out of pocket. 1) Why make an offer you're not happy about? 2) Would $2,000 make you happy about the offer? 3) Didn't you say you'd be out $1,500 if this falls through?
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Feb 1, 2015 06:21
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Haha I went and saw a home Thursday and was really interested in it so I set up a second visit today (Saturday). When we got there there was furniture and a dog inside. The owner had rented it out without telling anything to his agent or to mine. What a world.
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Feb 1, 2015 06:24
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OneWhoKnows posted:1) Why make an offer you're not happy about? 1. My wife and I want the house, but we don't want to be dicked over on the negotiation phase. Humans, including us, react very badly to perceived unfairness even when it's against our rational interests, all while we want things that are unfair to our advantage. Therefore, I'm not happy about the offer because I'm not getting everything (or even most of what) I want but it's relatively fair. The previous seller response was not seen as fair. 2. Yeah, it would. $5000 would make me even happier, and $10000 would make me extremely happy. See #1. 3. I'm already out that. As silly as it may sound to walk over $2k, how would it not be just as silly for the seller to do so? Sure, they can't amortize it easily while we certainly could, but at the end of the day, someone's just gotten hosed out of a week's pay.
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Feb 1, 2015 07:42
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It hurts you very mildly over a really long term ($9 per month maybe?) but it's $2k right out of the seller's pocket - who is probably also paying 8-$12k commission on the sale. Not saying you're wrong. Get what you can get - just putting it in perspective.
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Feb 1, 2015 08:51
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Spamtron7000 posted:It hurts you very mildly over a really long term ($9 per month maybe?) but it's $2k right out of the seller's pocket - who is probably also paying 8-$12k commission on the sale. Not saying you're wrong. Get what you can get - just putting it in perspective. I think looking at things on a per-month basis is not a great way to look at the deal. Ultimately, it costs me more than $2k due to interest, though admittedly due to opportunity cost and inflation it hurts the seller more. Also, it's a total buyer's market right now and this house has been on the market on and off for over a year.
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Feb 1, 2015 16:01
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My wife and I recently moved back to a hot market (where we previously rented 5+ years ago) and would like to buy our first home ASAP. We're also planning on having our first kid in about a year or two. We'd like to stay in this city, so we're looking pretty far in to the future. Good public education is very important to us. There is one good high school in town and a bunch of mediocre ones. There is also a good high school in a wealthy suburb. Elementary schools aren't as much of an issue. Homes in the attendance zones for the good high schools are 20%+ more expensive than most others. We could technically afford some of the cheapest houses near a good high school, but it would make everything else very tight. We're struggling with the question of "buy a starter home and worry about the kid's education later" vs "buy into a good high school now because prices are going up faster than income growth and who knows if we'll be able to afford to move down the line." Has anyone else been in this situation? How did you resolve it?
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Feb 2, 2015 04:09
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blk posted:My wife and I recently moved back to a hot market (where we previously rented 5+ years ago) and would like to buy our first home ASAP. We're also planning on having our first kid in about a year or two. We'd like to stay in this city, so we're looking pretty far in to the future. I was in that exact situation and we opted to figure out education later. It was primarily because we realistically didn't see ourselves staying in our first house for more than 5-10 years. We'd end up moving for work or something before then.
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Feb 2, 2015 04:13
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Okay as it turns out I have a leaky faucet on my kitchen sink. There's a pinhole in the neck of the faucet that aerosol-sprays onto the sink. My inspector for the refinance is coming tomorrow afternoon. How big of a deal is a leaky kitchen faucet in the value of my home? Is it worth going to home depot at 6AM and trying to replace myself, or not a big deal and something I can fix later?
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Feb 2, 2015 07:08
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Steve Yun posted:Okay as it turns out I have a leaky faucet on my kitchen sink. There's a pinhole in the neck of the faucet that aerosol-sprays onto the sink. Like "dab-o-superglue" sized, or "sprays across the room" sized?
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Feb 2, 2015 15:27
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By "inspector" do you mean appraiser? An appraiser isn't gonna give a poo poo about a partly busted faucet. Maybe he will list it under "deferred maintenance" at $250.
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Feb 2, 2015 16:54
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Turn your water off, say you are replacing a sediment filter somewhere or something.
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Feb 2, 2015 17:04
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uwaeve posted:Turn your water off, say you are replacing a sediment filter somewhere or something. Why do so many people choose the dishonest path? Nobody's going to care about something that will cost $100 to fix. Every house has things wrong with it.
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Feb 2, 2015 19:38
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baquerd posted:3. I'm already out that. You're right, in that that's a sunk cost. However, you should instead consider the repeat of that cost should you walk away from this deal, and therefore have to spend money doing inspections and stuff on the next house you try to buy. Essentially, you're arguing that gaining $2k on this deal is worth the risk of a definitely non-zero amount of money you'll be forced to spend doing due diligence on the next deal. I'm not saying you shouldn't negotiate for what you think you can get. Two thousand bucks is two thousand bucks. But if the seller won't budge, you really should consider how much it'll cost you to walk away over that $2k.
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Feb 2, 2015 20:14
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Anyways, we made a deal. He didn't come down on the price, but we got a home warranty, and a bunch of personal stuff (a lot of which we need since we're no longer in the city and need to take care of outdoors things). I gotta say though, 18" of snow would really suck to clean off the longish and steep driveway, not looking forward to it. Guess I gotta go buy some crampons or something.
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Feb 2, 2015 20:54
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Having just cleared 8" off my 25% grade driveway this morning, you don't need crampons, just a good grip on a good snow blower. You'll probably be unhappy if it's not south facing, though.
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Feb 2, 2015 21:04
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Zhentar posted:Having just cleared 8" off my 25% grade driveway this morning, you don't need crampons, just a good grip on a good snow blower. You'll probably be unhappy if it's not south facing, though. It's kind of a combination of Northwest and South. Don't know the grade, but 20% grade for the first leg from the road wouldn't be out of the question. Apron in the southwest is flat, middle bit crossing in front is maybe 5-10% at most. Basically, it's downhill in every direction from the house. 
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Feb 2, 2015 21:09
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Ah, that little thing shouldn't be too bad. With no westward shading it'll still get good afternoon sun and shouldn't ice up too badly.
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Feb 2, 2015 22:29
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Got my hands on the inspection report from prior bidder on a foreclosure, you really need better inspectors the home guy found a bunch of minor things, neglected to mention the creek at the bottom of the hill was eroding the yard causing the swimming pool to slowly but surely reach a point of collapse. Only $60k to put in a retaining wall down to creekbed for perm fix, assuming you can get a permit and the neighbor on the other side allows access and is willing to sell you a little bit of marsh. Chase bank refused to concede the $5,000 the prior buyer asked for ahahahahahahahah. I will be passing. Do never buy never ever ever.
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Feb 2, 2015 23:12
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