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Andy Dufresne posted:I don't want to get too finely into my financial details, but I am cash poor because my 401k contribution has been abnormally high. I'm not going to bleed it dry. That's cool, it's the same position I was in, and the reason I pulled from my retirement plan as part of a down payment. I wasn't saying you risk bleeding it dry, just that you should prepare to have to lay out cash for regular maintenance as well as poo poo that starts breaking after you get into the house. Seriously read some of the horror stories here and make peace with the finite probability that you will have some outlay after purchasing, is all I'm getting at.
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Feb 10, 2015 01:13
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mastershakeman posted:Has anyone ever bought a condo with an impending special assessment for roof repairs? I understand you could negotiate with the seller to put a large amount of the sale price into escrow to cover the assessment but everything about this screams run away. I guess it really depends, I mean all properties require periodic roof maintenance and assessments for exterior maintenance are a fact of life for condo owners. You could include payment of the assessment by the seller as a sale contingency but of course they are under no obligation to accept (as are you under no obligation to buy the place). Alternately if you are patient and you don't think the unit is going to move (or there are multiple units listed in the same complex), you could just wait out the roof repairs and consider offering at that time.
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Feb 10, 2015 01:19
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uwaeve posted:That's cool, it's the same position I was in, and the reason I pulled from my retirement plan as part of a down payment. I wasn't saying you risk bleeding it dry, just that you should prepare to have to lay out cash for regular maintenance as well as poo poo that starts breaking after you get into the house. Seriously read some of the horror stories here and make peace with the finite probability that you will have some outlay after purchasing, is all I'm getting at. Thanks, I am with you. I've done a lot of reading which put me off buying for a while, but I think I've finally reached the point where it makes sense. I was reading back through some of your posts and noticed that you looked on and off for several years. Is there a tactful way to hire an agent or even contact sellers directly knowing that I'm looking for many months down the line? I can only do so much on Zillow and I really want to set foot in some of these houses.
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Feb 10, 2015 01:20
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Economic Sinkhole posted:Rushing to find a house is the worst possible way to buy. You will feel pressured to buy something, anything, by whatever your drop-dead date is. Conventional wisdom is that you should plan to spend 5-7 years in your house before selling in order to break even on transaction costs. Do you want to rush in to a decision that involves a quarter of a million of your dollars and 7 years of your life? Consider just switching to a month-to-month lease once your current lease is up and start looking at houses today. Plan on doing the month-to-month thing but look earnestly. If you find something, great. If not, it's cool because you have a lease that you can leave at any time. With that kind of plan you can take your time to make this very large decision. This is exactly correct. Patience and flexibility are your friends when it comes to house shopping and help you get the best house for you at the best price the market will bear. I lived in a month to month while shopping for my second house, ready to move out on 30 days notice, and I'd highly recommend such a strategy if it works for your immediate living situation needs. October is generally a better time to buy anyways, at least where I live.
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Feb 10, 2015 01:25
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Andy Dufresne posted:Thanks, I am with you. I've done a lot of reading which put me off buying for a while, but I think I've finally reached the point where it makes sense. I was reading back through some of your posts and noticed that you looked on and off for several years. Is there a tactful way to hire an agent or even contact sellers directly knowing that I'm looking for many months down the line? I can only do so much on Zillow and I really want to set foot in some of these houses. You can always sit down and explain your needs and plan to meet in the future. If there's something great currently on the market you can show now, but you can understand why a realtor isn't going to be too interested in devoting a lot of time if you aren't ready to offer. Same with sellers, you can contact them directly to arrange a showing if you see something interesting. There's no real point in showing if you wouldn't consider offering, though, because they aren't going to sit around and wait for you. Your time might be better spent figuring out what size and style house you want and picking neighborhoods to focus on at this point.
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Feb 10, 2015 01:32
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My dad just got an offer on his house, selling privately. The buyer has an agent, though, so the offer included clauses that the agent could display a sold sign on his lawn, and use my dad's house in 'sold listings' promotional stuff. Oh and a 5% commission. Haha I hate realtors.
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Feb 10, 2015 01:50
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mastershakeman posted:Has anyone ever bought a condo with an impending special assessment for roof repairs? I understand you could negotiate with the seller to put a large amount of the sale price into escrow to cover the assessment but everything about this screams run away.
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Feb 10, 2015 01:53
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Trillian posted:My dad just got an offer on his house, selling privately. The buyer has an agent, though, so the offer included clauses that the agent could display a sold sign on his lawn, and use my dad's house in 'sold listings' promotional stuff. Oh and a 5% commission. Haha I hate realtors. mastershakeman posted:Has anyone ever bought a condo with an impending special assessment for roof repairs? I understand you could negotiate with the seller to put a large amount of the sale price into escrow to cover the assessment but everything about this screams run away.
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Feb 10, 2015 01:59
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Trillian posted:My dad just got an offer on his house, selling privately. The buyer has an agent, though, so the offer included clauses that the agent could display a sold sign on his lawn, and use my dad's house in 'sold listings' promotional stuff. Oh and a 5% commission. Haha I hate realtors. If the buyer walked up with their own agent that is not contracted with the seller they ultimately are responsible for paying their own commission, not you. Of course it's all a shell game around the sale price, so you can always counteroffer with the commission factored in or out depending upon how big a favor you think the agent is doing you by bringing a buyer. My understanding of the practice here is that agents (at least the smart ones) will contact FSBO sellers to negotiate a limited contract with respect to commission before showing their buyers. 2-3% wouldn't be a bad cut for a buyer only agent in an average market with a savvy seller doing everything on their end. Of course they will want to double represent you with their firm and take a full 6% if they can talk you into it. BEHOLD: MY CAPE fucked around with this message at 02:08 on Feb 10, 2015 |
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Feb 10, 2015 02:03
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Just locked in a rate for the mortgage and got the final closing costs. 4.117% APR. Now I just need to come up with a giant pile of financial, tax and other documentation, hope it appraises and hope the house doesn't burn down in the next 8 weeks. No anxiety at all, nosiree.
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Feb 10, 2015 03:47
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slap me silly posted:not the sociophilosophy-of-housing thread
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Feb 10, 2015 03:51
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gvibes posted:He should pay 2.5% at worst. No, it's a 90 year old building that has a $500/mo assessment (Evanston, IL; 24 units). I'm not in any rush to make an offer but it seems like a ton of effort to be figuring out condo financials vs just looking elsewhere. I'm pretty much trying to build a case of 'never buy a condo' with my wife since a ~250k condo w/ $450ish assessment is pretty much the same monthly payment as a ~350k house (albeit the house would need more maintenance budgeted for).
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Feb 10, 2015 04:11
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Trillian posted:My dad just got an offer on his house, selling privately. The buyer has an agent, though, so the offer included clauses that the agent could display a sold sign on his lawn, and use my dad's house in 'sold listings' promotional stuff. Oh and a 5% commission. Haha I hate realtors. Yeah, they suck, but not as much as your dad getting ripped off that hard does. Is he past the age where scams start to sound reasonable or something?
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Feb 10, 2015 04:27
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My personal opinion: Poop on Condos. Tell her its like buying a loving apartment. Tell her its like buying a room, in a big house, but not being allowed to do anything with, or to it without asking the landlord first. The only difference between an apartment and a condo is that in 22 or so years, you'll have $3,256.92 in equity in your loving not-an-apartment, because you have to factor in the thousands of dollars in assessments, fees, fines, hidden costs, and repairs (thats right, they don't repair everything for free!) that you had to pay. Oh, and you can't sell it, except back to, and through the Condo Association at whatever price and under whatever terms they tell you. Oh, and you can't alter, amend, improve, update or refurbish, except through and with the approval of the Condo Association at whatever cost and under whatever terms they tell you. Oh, and you can't rent or sublet it without using the Association's "rental service", which means they charge you a fee to 'manage' the unit and they basically act like an apartment complex - and they skim every cent of profit over and above your mortgage payment; but those months where no one is renting the unit? You're still paying both your mortgage, and their listing/letting/management fee.
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Feb 10, 2015 16:17
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Andy Dufresne posted:Thanks, I am with you. I've done a lot of reading which put me off buying for a while, but I think I've finally reached the point where it makes sense. I was reading back through some of your posts and noticed that you looked on and off for several years. Is there a tactful way to hire an agent or even contact sellers directly knowing that I'm looking for many months down the line? I can only do so much on Zillow and I really want to set foot in some of these houses. Finding a good Real Estate agent is the key. Someone who's good enough at their job that they aren't so desperate for that commission that they will push you into buying. Buying right before a big trip seems like a bad idea, considering the amount of work buying a house requires. If I were you, I would do these things in this order: 1) go get pre-approved for a loan with your lender, before you leave, and 2) Do the math on how much you want to spend, what you want to put down. etc 3) Make living arrangements for at least two months after you get back; maybe even commit to a final 6 month term, starting now, then you'll have 4 months to buy/move/plan when you get back. ***** Go on your trip***** 4) Find a good Real Estate Agent. 5) Meet with your agent, discuss the time frame you have for buying, what you've been pre-approved for, what you're looking for, and where. I know a few in North Dallas, I'm not sure if their territory extends up into Plano, etc. PM me and I can get you some names.
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Feb 10, 2015 16:25
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mastershakeman posted:No, it's a 90 year old building that has a $500/mo assessment (Evanston, IL; 24 units). I'm not in any rush to make an offer but it seems like a ton of effort to be figuring out condo financials vs just looking elsewhere. I'm pretty much trying to build a case of 'never buy a condo' with my wife since a ~250k condo w/ $450ish assessment is pretty much the same monthly payment as a ~350k house (albeit the house would need more maintenance budgeted for). Hi. I live in Edgewater in a 90 year old building with 20 units and am on the HOA board. $500/month is crazy high for this area unless the building has a swimming pool, gym, elevators, and doorman (or the condo is a top-floor penthouse that's 10x the size of all the others - assessments are usually divided by square footage). I have heard of the escrow'd special assessment thing happening, for roof repairs, even, especially if the property has been on the market a while. That's not crazy, just part of the negotiation. Other people are right in that a special assessment can indicate finance problems - as would having over-high assessments (they're trying to catch up on low reserves). The rule of thumb around here is 2k per unit in reserve, barring recent big repairs like the roof or major tuck-pointing. I'm not as down as some people are on condos, but I'm betting you could find a better deal out there in this area if that is the direction you decide to go. Edit to add: blarzgh posted:[snip rarg condos] A lot of the bad things you posted are dependent on the HOA. So people definitely need to check the bylaws before buying, but shouldn't assume all condos are going to be like that right out of the gate. Rooster Brooster fucked around with this message at 16:47 on Feb 10, 2015 |
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Feb 10, 2015 16:44
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Well, it's more that it's a great idea to assume that all condos are like that, but then inspect the bylaws to see if any of those don't apply.
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Feb 10, 2015 16:59
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Rooster Brooster posted:A lot of the bad things you posted are dependent on the HOA. So people definitely need to check the bylaws before buying, but shouldn't assume all condos are going to be like that right out of the gate. You're absolutely right, and I do only deal with the bad ones so I'm particularly biased. I also tend to feel that buying a condo is better suited to an older person, who needs a full-service real estate proposition and is willing to pay a little overhead for it, as opposed to someone who is just entering the market and more likely needs flexibility to make or make up for their impending bad decisions and life changes.
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Feb 10, 2015 17:00
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Absolutely. I'd add that it's a good plan for younger people if know they don't want kids and know they'll stay in the area for a time. They do seem to think, "It'll be like renting, but I get equity!", but after all is said and done you wind up in the hole from taxes, repairs, fees, agents' percentages, and closing costs.
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Feb 10, 2015 17:27
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Is there any downside to doing a 15 year mortgage over a 30 year mortgage?
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Feb 10, 2015 20:38
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psydude posted:Is there any downside to doing a 15 year mortgage over a 30 year mortgage? You have a bigger payment that you can't get out of if you hit a financial roadbump such as losing your job, meaning your savings will not last as long.
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Feb 10, 2015 20:49
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Assuming no prepayment penalties on the 30-year, you do lose some flexibility if something "goes wrong" with a 15. If you're on a 30 and something bad happens financially you're in less of a bind month-to-month. But if you're in a stable spot the better rate on the 15 would probably be worth it. Ninja edit: dang, 2 seconds too slow Double edit: Also, there are 20 year mortgages if you want to try to split the difference in security vs interest rate.
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Feb 10, 2015 20:51
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A 30 year mortgage would let you make roughly the same monthly payments over the same time period as a 15 year, but would additionally let you reduce the payment at some point if poo poo hit the fan. It gives you a little more flexibility, in other words. Ninja edit: I have red hair and I don't live with my biological mother
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Feb 10, 2015 20:52
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Are they particularly harder to get, or are there any major cost savings (aside from interest) like lower fees?
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Feb 10, 2015 20:57
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psydude posted:Is there any downside to doing a 15 year mortgage over a 30 year mortgage? I was just considering the same. Make sure to put both loans in a calculator and figure out how much total you'd pay for the 15 year loan, then figure out how much total you'd pay for the 30 year loan, assuming you pay it off in 15 years. For me, the difference was small enough that the added flexibility of the 30 years was worth it. EDIT: To your above post, lenders will want you to have more income for the 15 year, since the payments are higher, but apart from that, they seemed comparable to me.
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Feb 10, 2015 21:03
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Won't you also have to consider the time value of money? You'll pay more in today's dollars with a 30 year but some of that extra will be "inflated" away, right? e: assuming we don't fall into a deflationary cycle 
spf3million fucked around with this message at 21:56 on Feb 10, 2015 |
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Feb 10, 2015 21:47
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Saint Fu posted:Won't you also have to consider the time value of money? You'll pay more in today's dollars with a 30 year but some of that extra will be "inflated" away, right? I always go for the 30 year in hopes that massive inflation will give me my house for free. What I should have done is got the mortgage in russian rubles.
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Feb 10, 2015 22:43
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Saint Fu posted:Won't you also have to consider the time value of money? You'll pay more in today's dollars with a 30 year but some of that extra will be "inflated" away, right? If you can afford to do a 15 year, you can afford to do a 30-year, double up payments, and have it paid off in like 7 or 8 years, but the flexibility to cut your payment schedule if poo poo hits the fan. My CU will give me 3% for a 15 year, or 3.875% for a 30 year. No way is that extra .875% worth the flexibility of smaller minimum payments.
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Feb 10, 2015 22:46
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I got a 15 year because it was a fractionally lower rate, I kinda wish I'd gotten the 30 year instead. Like people said, more flexibility.
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Feb 11, 2015 00:20
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Saint Fu posted:Won't you also have to consider the time value of money? You'll pay more in today's dollars with a 30 year but some of that extra will be "inflated" away, right? We are comparing paying off a 15 year loan in 15 years vs. paying off a 30 year loan in 15 years. The 30-year loan will have a slightly higher interest rate, which means you'll accrue slightly more interest each month before making your payment. So the cost is slightly higher. But the time value issue doesn't really come into it, because we're not considering the case of taking more than 15 years to pay off the loan (and therefore paying with presumably-cheaper future dollars in that 15+ year timeframe).
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Feb 11, 2015 00:27
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Elephanthead posted:I always go for the 30 year in hopes that massive inflation will give me my house for free. What I should have done is got the mortgage in russian rubles. I guess you could do a currency swap of long $YOUR_CURRENCY/RUB for your mortgage payment in each month, as far out the forward strip as you can find liquidity? I've sometimes wondered if people do that in countries that often do foreign currency mortgages, like people have sometimes done vs. CHF in places like Poland. It would reduce their foreign currency exposure. By the way, never do a foreign currency mortgage unless you get paid in that currency, unless you want to end up like people in Iceland.  You'll almost certainly get a better interest rate (because otherwise, why do it?) but your monthly payments will be much more volatile, and not in a good way.
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Feb 11, 2015 02:39
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Can I get advice about selling my house here? We want to do a For Sale By Owner because we don't want to pay the crazy selling agent fees. We know how to list it, pay to put it on an MLS, etc. I was wondering if anyone had any stories or advice about it?
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Feb 11, 2015 18:13
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Careful Drums posted:Can I get advice about selling my house here? We want to do a For Sale By Owner because we don't want to pay the crazy selling agent fees. We know how to list it, pay to put it on an MLS, etc. I was wondering if anyone had any stories or advice about it? From the buying side I can say all FSBO homes have been a disaster. Most don't look prepped to sell, scheduling showings is a PITA for individuals or agents, and pricing isn't adjusted well for the market. In some areas it might work, but those crazy agent fees come into play when a FSBO house lists and never sells or ends up selling far below market because it wasn't managed correctly. If you can prep your house well, not act crazy to potential buyers, accept a 3% commission from the buyers side and have a phone number listed someone can call to see the drat place you will probably be ahead of most FSBO scenarios.
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Feb 11, 2015 18:19
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dietcokefiend posted:From the buying side I can say all FSBO homes have been a disaster. Most don't look prepped to sell, scheduling showings is a PITA for individuals or agents, and pricing isn't adjusted well for the market. In some areas it might work, but those crazy agent fees come into play when a FSBO house lists and never sells or ends up selling far below market because it wasn't managed correctly. I guess we're okay then? We've packed up all our poo poo already, and my wife and I have been cleaning so much that the house is approaching spotless-status. I work from home so I would be able to take calls and show the house any time. I can definitely keep organized enough to make sure we don't double-book showings or anything. Hell, my wife is going to bake cookies for anyone who comes to look at it. I understand we'll have to pay buying agent fees anyway but saving the seller agent fees would really help us out. I'm also worried about legal stuff and making sure we cover our asses. I understand we'll have to pay a real estate lawyer or something. I'm not sure what to expect out of that.
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Feb 11, 2015 18:28
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You should find and start interviewing real estate lawyers immediately. They're a great tool even when selling with an agent, but without an agent they're absolutely indispensable. You will drive away buyers if you don't have the paperwork in order, whereas showing you clearly have all the (massive, ridiculous piles of) paperwork lined up and ready at each step in the process is going to reassure buyers (and their agents) that this is going to be a smooth sale. Also, without an agent advising you on pricing, I suggest you get your own appraisal up-front before you list the house, so there won't be any nasty surprises later.
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Feb 11, 2015 18:34
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Leperflesh posted:You should find and start interviewing real estate lawyers immediately. They're a great tool even when selling with an agent, but without an agent they're absolutely indispensable. You will drive away buyers if you don't have the paperwork in order, whereas showing you clearly have all the (massive, ridiculous piles of) paperwork lined up and ready at each step in the process is going to reassure buyers (and their agents) that this is going to be a smooth sale. Thanks for the advice. What kind of questions should I ask a real estate lawyer? What characteristics should I look for? As far as pricing the house, we only bought it 9 months ago and comps in our area are sliiiiightly increasing, so we're going to list it for the same as it was when we bought it (and we bought it for a few grand less than it was listed).
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Feb 11, 2015 18:37
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Someone else can tell you more about the lawyer than me, but, oh my god, you're selling after 9 months? For the same as you paid? You're obviously losing many thousands of dollars in that case, why are you doing this?
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Feb 11, 2015 18:41
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Leperflesh posted:Someone else can tell you more about the lawyer than me, but, oh my god, you're selling after 9 months? For the same as you paid? You're obviously losing many thousands of dollars in that case, why are you doing this? Long story short, we're moving cities. We should have never bought this house in the first place. You can see my post history in YOSPOS for more. just don't doxx me, thanks
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Feb 11, 2015 18:44
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Careful Drums posted:I guess we're okay then? We've packed up all our poo poo already, and my wife and I have been cleaning so much that the house is approaching spotless-status. I work from home so I would be able to take calls and show the house any time. I can definitely keep organized enough to make sure we don't double-book showings or anything. Hell, my wife is going to bake cookies for anyone who comes to look at it. I understand we'll have to pay buying agent fees anyway but saving the seller agent fees would really help us out. To be clear - you are not obligated in any way to pay commissions to buyer's agents. The buyer is under contract, not you. If market conditions and desirability of your property dictate, they can negotiate it out of you in the form of a pre-showing contract or as part of any offer submitted. If you don't feel like you need to concede a fee out of the sale proceeds - say for instance you have multiple offers - then the buyer will have to pay it to their agent. BEHOLD: MY CAPE fucked around with this message at 19:47 on Feb 11, 2015 |
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Feb 11, 2015 19:43
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Wait who in the hell would sign an agreement with a realtor as a buyer? Swing by 3 open houses and you will have 3 agents willing to send you any info, set up tailored searches, and show you houses all you want.
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Feb 11, 2015 20:07
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