Alright, Wise Old Men

Townhallsavoy · « **on:** June 12, 2009, 06:28:49 PM »

Your ideal home in your ideal location is priced at $194,000. You have $4000 in savings, and your parents (you're young, so your parents want to do this for you still) are offering $5000. Your wife is earning an additional $1000 (legally and morally) by the end of July. You've been saving an additional $800/month; you want to close on the house by August 1st; and you have three months rent left at your current apartment. All of your savings will be going towards paying rent at the apartment.

Down payment minimum must be 3.5% or $6790. Closing costs are estimated around $3000.

Do you buy the house?

Advise me, wise ones.

AUTailgatingRules · « **Reply #1 on:** June 12, 2009, 07:13:50 PM »

Quote from: townhallsavoy on June 12, 2009, 06:28:49 PM

Your ideal home in your ideal location is priced at $194,000. You have $4000 in savings, and your parents (you're young, so your parents want to do this for you still) are offering $5000. Your wife is earning an additional $1000 (legally and morally) by the end of July. You've been saving an additional $800/month; you want to close on the house by August 1st; and you have three months rent left at your current apartment. All of your savings will be going towards paying rent at the apartment.

Down payment minimum must be 3.5% or $6790. Closing costs are estimated around $3000.

Do you buy the house?

Advise me, wise ones.

First you need to make an offer that is less than the asking price (DUH). in this market I'm sure that the owner is ready to sell. Go and get pre-approved so that you have the buying power to make an offer and let the buyer know that you are serious. Make sure that the payment is not going to put you in any kind of financial strain ( in other words you should be able to make the payment on 1 income in case one of you loses your job). I may be wrong but I believe that any time you can spend your money on something you OWN it is better than throwing it away on rent.

A little tidbit of advice that I try to live by: If you have to finance something; buy when it is an appreciating purchase, rent or lease when it is a depreciating purchase.

Snaggletiger · « **Reply #2 on:** June 12, 2009, 09:14:39 PM »

Quote from: AUTailgatingRules on June 12, 2009, 07:13:50 PM

First you need to make an offer that is less than the asking price (DUH). in this market I'm sure that the owner is ready to sell. Go and get pre-approved so that you have the buying power to make an offer and let the buyer know that you are serious. Make sure that the payment is not going to put you in any kind of financial strain ( in other words you should be able to make the payment on 1 income in case one of you loses your job). I may be wrong but I believe that any time you can spend your money on something you OWN it is better than throwing it away on rent.

A little tidbit of advice that I try to live by: If you have to finance something; buy when it is an appreciating purchase, rent or lease when it is a depreciating purchase.

What he said. Sounds like you're on the right track with this. If you like the house and they're axing $194K...you can get it for $175K. Hey, our parents helped us with our first house too by throwing in a few duckies. I hope I can do the same for mine. If the house fits your needs and it's withing your budget, go for it.

Hogwally · « **Reply #3 on:** June 12, 2009, 11:26:45 PM »

My feelings have always been buy as much house as you can possibly afford. In a few years, you'll be making more money and the payments will just get easier and easier, meanwhile you're living in a nicer house than if you'd gone for something cheaper. Of course, I'm 38 and living paycheck to paycheck, so maybe I'm not the best person to ask.

Jumbo · « **Reply #4 on:** June 13, 2009, 02:23:08 AM »

Do it, this is a buyers market enjoy the benefits!

Townhallsavoy · « **Reply #5 on:** June 14, 2009, 08:24:54 PM »

Ok, next question and next step.

We're ready to buy this house. We have the money. We love the house. We love the property and the price.

The only snag I'm running into is there is a large power line about 100m from our property line. It's in between our (prospective) house and the neighbors. It's probably 50m back, so it doesn't divide the homes, but it's there and easily seen.

1. This obviously hurts resell value, but exactly how much?
2. Is it safe?

I have no clue what kind of power line it is. It's bigger than the average ones you see on the streets, but it's not one of those ginormous ones you see in the country.

It looks similar to this:

Godfather · « **Reply #6 on:** June 15, 2009, 04:01:38 PM »

Quote from: townhallsavoy on June 14, 2009, 08:24:54 PM

It looks similar to this:

As long as you don't mind that it might suck the paint off your house and give your kids permanent orange afros.

AUTailgatingRules · « **Reply #7 on:** June 15, 2009, 04:09:06 PM »

I would not want that thing in My front yard. In this market, if you are able to buy a house for $190,000, I would think you would go out and find one that meets ALL of your criteria. I would not settle for anything that has even the slightest down side.

Just my opinion so take it with a grain of salt.

wesfau2 · « **Reply #8 on:** June 15, 2009, 04:54:48 PM »

Quote from: AUTailgatingRules on June 15, 2009, 04:09:06 PM

I would not want that thing in My front yard. In this market, if you are able to buy a house for $190,000, I would think you would go out and find one that meets ALL of your criteria. I would not settle for anything that has even the slightest down side.

Just my opinion so take it with a grain of salt.

This man knows what the fuck is up.

Kaos · « **Reply #9 on:** June 15, 2009, 04:55:23 PM »

Quote from: townhallsavoy on June 14, 2009, 08:24:54 PM

Meh. I lived under one of those things for YEARS and I turned out okay, right? Right?

(Seriously? We looked at a beautiful house in a great neighborhood. Had everything we wanted, including a pool. Passed on it because of powerlines like that.)

Townhallsavoy · « **Reply #10 on:** June 15, 2009, 06:06:44 PM »

We decided to pass on it.

Back to the drawing board with my particularly picky wife.

Give me a backyard and a good location.

I talked to a few friends who recently purchased homes in this market. One said he negotiated the price down $30k and made the seller pay closing costs.

My price limit just went from $210k to $230k if I can get a deal like that.

AUTailgatingRules · « **Reply #11 on:** June 15, 2009, 06:44:58 PM »

Quote from: townhallsavoy on June 15, 2009, 06:06:44 PM

We decided to pass on it.

Back to the drawing board with my particularly picky wife.

Give me a backyard and a good location.

I talked to a few friends who recently purchased homes in this market. One said he negotiated the price down $30k and made the seller pay closing costs.

My price limit just went from $210k to $230k if I can get a deal like that.

Being "picky" in this market is the right approach. Don't be afraid to search for that "dream" house and make what on normal ocasions would seem like a bat shit crazy offer. You will be surprised what someone is willing to accept. I think you guys made the right decision here, I would not want that horrible power line in my front yard.

Kaos · « **Reply #12 on:** June 16, 2009, 12:52:53 PM »

Quote from: townhallsavoy on June 15, 2009, 06:06:44 PM

We decided to pass on it.

Back to the drawing board with my particularly picky wife.

Give me a backyard and a good location.

I talked to a few friends who recently purchased homes in this market. One said he negotiated the price down $30k and made the seller pay closing costs.

My price limit just went from $210k to $230k if I can get a deal like that.

Make sure you know what the future plans are.

When we bought our house (only a year ago) there was a pasture behind us. The developer said they weren't expecting to begin parceling that out for at least five years.

Well fuck me running. A month after we moved in the lots were divided. Two months and there were Mexicans everywhere. six months? Houses on every lot. It's not TOO intrusive, but it definitely changes the landscape. Where I used to see cows and trees from the back porch now I see some old fart's head as he wanders around his back yard.

Had I known, or been able to concieve what this would be like I would have chosen a different lot on which to build.

Godfather · « **Reply #13 on:** June 16, 2009, 12:55:08 PM »

Quote from: Kaos on June 16, 2009, 12:52:53 PM

Make sure you know what the future plans are.

When we bought our house (only a year ago) there was a pasture behind us. The developer said they weren't expecting to begin parceling that out for at least five years.

Well fuck me running. A month after we moved in the lots were divided. Two months and there were Mexicans everywhere. six months? Houses on every lot. It's not TOO intrusive, but it definitely changes the landscape. Where I used to see cows and trees from the back porch now I see some old fart's head as he wanders around his back yard.

Had I known, or been able to concieve what this would be like I would have chosen a different lot on which to build.

I didn't know you lived close to Pell City.

Kaos · « **Reply #14 on:** June 16, 2009, 01:14:21 PM »

Quote from: Godfather on June 16, 2009, 12:55:08 PM

I didn't know you lived close to Pell City.

Moved to LA last summer.

Ogre · « **Reply #15 on:** June 16, 2009, 09:24:18 PM »

Quote from: townhallsavoy on June 15, 2009, 06:06:44 PM

We decided to pass on it.

Back to the drawing board with my particularly picky wife.

Give me a backyard and a good location.

I talked to a few friends who recently purchased homes in this market. One said he negotiated the price down $30k and made the seller pay closing costs.

My price limit just went from $210k to $230k if I can get a deal like that.

I've got a 3/3, 2700 sq ft, that I'll sell you for $285k in Hoover. No closing costs and a 2 year home warranty.

It's not that much more...

Townhallsavoy · « **Reply #16 on:** June 16, 2009, 10:01:38 PM »

Quote from: Ogre on June 16, 2009, 09:24:18 PM

I've got a 3/3, 2700 sq ft, that I'll sell you for $285k in Hoover. No closing costs and a 2 year home warranty.

It's not that much more...

I wish I could help you out, but 285k is impossible. A $210k loan would be the limit if we want to continue living comfortably.

For those curious, we found a nice little house in Meadow Brook in the Oak Mountain area for $219k. It's been on the market since June 2008. I smell a negotiation in the works.

AWK · « **Reply #17 on:** June 16, 2009, 10:46:59 PM »

Quote from: townhallsavoy on June 16, 2009, 10:01:38 PM

I wish I could help you out, but 285k is impossible. A $210k loan would be the limit if we want to continue living comfortably.

For those curious, we found a nice little house in Meadow Brook in the Oak Mountain area for $219k. It's been on the market since June 2008. I smell a negotiation in the works.

I'm sure you already know this, but don't live in Homewood. You will end up getting a house that will cost you $300,000, that is 10 years old, and falling apart.

Jumbo · « **Reply #18 on:** June 17, 2009, 05:52:37 AM »

In Gardendale you can get a 5 bedroom 4 1/2 bath for $215, less than 2 years old!

Townhallsavoy · « **Reply #19 on:** June 17, 2009, 09:47:15 AM »

Quote from: Jumbo on June 17, 2009, 05:52:37 AM

In Gardendale you can get a 5 bedroom 4 1/2 bath for $215, less than 2 years old!

Found one in Helena that's 5 bedroom 4 bath with a bonus room, screened in porch, huge backyard for $203k. But screw Helena traffic. I dealt with that enough in high school to know to stay away from that shit. Oh, and I lived in Helena during high school, so screw that place for many reasons.

AWK - I would never live in Homewood. It blows my mind that people pay that much money for tiny homes on 1/4 of an acre.

By the way, for anyone interested, there's a house right off of HWY 119 that is sitting on 1.5 acres. It's 5 bedrooms, four baths with a finished basement. Beautiful back deck, and like I said, it's sitting on 1.5 acres. It's only $225k. I thought it was a steal, but the house needs some updating.