Buying a house ... advice?

[Ó Flannagáin]

The home warranty thread made me think about the invaluable advice available from the lot of you. My wife and I are buying our first house when we move to August, GA in a few months. She's excited and internet shopping like crazy, I'm freaking out. Anyone have advice on things I should be SURE to check before writing the check? I already know to have the main drainage to the sewars checked. That can be a nightmare and slip under the radar. Buuutttt... I doubt that's it.

.. and, anyone from the Augusta area know what neighborhood have the best resell? We only planning on staying for 2 or 3 years.

 

[Cheesefood]

Get a good home inspector. Best $300 you'll spend.

 

[the_bird]

Get a good home inspector. Best $300 you'll spend.

+1

Hell, +1,000,000

 

[Ó Flannagáin]

Get a good home inspector. Best $300 you'll spend.

I guess that would about cover it then, huh?

 

[Parker36]

Make sure you have a heated basement, preferably with stove and running water for brewing

 

[Soulive]

Get a good home inspector. Best $300 you'll spend.

If they know what they're doing. Mine didn't for $275. I recommend trying to find a house thru social networking, then a realtor won't be involved. Don't get an interest only and/or adjustable rate mortgage. Do get something that needs some fixing-upping, sweat equity is nice. Do research the area, since its all about location. Don't let the process give you a coronary...

 

[the_bird]

Don't buy the best house in a bad (or mediocre) neighborhood. Better to buy a house that's a little run down (which you can do something about) in a good neighborhood.

 

[Beerrific]

A good realtor is a great help too. They read the fine print and make sure everything is legit. And as a buyer it costs you nothing (assuming you are looking at 'For Sale By Owner').

And if you are just planning on staying 2-3 years, I would recommend buying a house you think you can make improvements to and sell for higher. On average it takes 4-5 years of living in a house to break even (after closing costs, interest on the mortgage, etc.).

 

[Cheesefood]

My home inspector decided the water heater sucked, so we got a new one. Cost for the inspector: $300. Cost of the heater: $500. Benefit to us: $200.

Also, check the local sex offender registry to see what's in your neighborhood.

Check the school districts. Good districts mean good people. Make sure you're not right on a busy road or near power lines or under a flight pattern.

 

[Ó Flannagáin]

A good realtor is a great help too. They read the fine print and make sure everything is legit. And as a buyer it costs you nothing (assuming you are looking at 'For Sale By Owner').

And if you are just planning on staying 2-3 years, I would recommend buying a house you think you can make improvements to and sell for higher. On average it takes 4-5 years of living in a house to break even (after closing costs, interest on the mortgage, etc.).

Realtor's scare me. Seems like they are out to make a quick buck.

 

[Cheesefood]

A good realtor is a great help too. They read the fine print and make sure everything is legit. And as a buyer it costs you nothing (assuming you are looking at 'For Sale By Owner').

I agree with using a realtor. A good one will steer your right. Find one your parents know or someone knowledgeable knows or has used. Make sure they show you a lot of houses out of their own network.

 

[rdwj]

yep - buy the least expensive house in the best subdivision you can afford. You'll make the most money that way. Also, make sure you pay off ALL your credit cards and DON'T carry a balance.

I find that home inspectors are over-rated. I've known several people that spent the money for them and they missed fairly significant things. I know they claim to waranty their work, but trying to collect is a huge ordeal.

This is a great market for buying - look to rob somebody blind. There are LOTS of people desperate to sell.

I think your CRAZY to use a realtor. I've never had one. Why pay someone for things you're more than able to do on your own. Just get a decent real estate lawyer and save the money.

 

[Soulive]

Realtor's scare me. Seems like they are out to make a quick buck.

Yeah some of them suck, but not all. Make sure your lawyer knows what they're doing as well. When you make an offer, plan on it being countered...

 

[Parker36]

Also, check the local sex offender registry to see what's in your neighborhood.

I only live in neighborhoods with high quality, classy pedophiles.

 

[Soulive]

I only live in neighborhoods with high quality, classy pedophiles.

Pedophiles know no social status/class. I used to live next to millionaire sex offenders...

 

[Beerrific]

I agree with using a realtor. A good one will steer your right. Find one your parents know or someone knowledgeable knows or has used. Make sure they show you a lot of houses out of their own network.

I agree, best realtors are reffered by friends/family. Ours was an old retired guy. He would tell it straight, "no, this is a bad area, you don't want to live here." Turns out many relators are reluctant to tell people what areas are 'good' and 'bad.'

Oh, and don't get a house with polybutylene plumbing, or do, and have the sellers fix it before you move in.

This was an issue with the houses we looked at...the first thing the realtor did in every house was look under the sinks at the plumbing.

 

[Ryanh1801]

http://www.familywatchdog.us/

 

[homebrewer_99]

yep - buy the least expensive house in the best subdivision you can afford. You'll make the most money that way. Also, make sure you pay off ALL your credit cards and DON'T carry a balance.

I find that home inspectors are over-rated. I've known several people that spent the money for them and they missed fairly significant things. I know they claim to waranty their work, but trying to collect is a huge ordeal.

This is a great market for buying - look to rob somebody blind. There are LOTS of people desperate to sell.

I think your CRAZY to use a realtor. I've never had one. Why pay someone for things you're more than able to do on your own. Just get a decent real estate lawyer and save the money.

Actually the worse looking house in a good neighborhood will sell faster than the best looking house in a bad neighborhood.

As for not using a realtor that's bad advice...the buyer doesn't pay the realtor the seller does.

Chances are you'll lose $$$ if you are only going to keep it 2-3 years...you'll be paying the realtor fees then.

 

[EdWort]

Don't buy a house in a cul-de-sac with A-Hole neighbors who have dogs that bark all night and cats that poop in your flowerbeds, and watch your every move and poke their noses in your mailbox.

 

[the_bird]

Theoretically, if you don't have a realator, you can negotiate the price down a bit more... but it's all part of the negotiation process. It's not a direct out-of-pocket savings.

 

[Brakeman_Brewing]

oh you said HOUSE, i thought it said you were buying a horse, and i was about to ask why

 

[Soulive]

As for not using a realtor that's bad advice...the buyer doesn't pay the realtor the seller does.

As usual I should've clarified. I meant find a house thru the grapevine where the seller doesn't have a realtor. My friends bought their house from a co-worker of a friend and paid 30% less than market value...

 

[Cheesefood]

Don't buy a house in a cul-de-sac with A-Hole neighbors who have dogs that bark all night and cats that poop in your flowerbeds, and watch your every move and poke their noses in your mailbox.

Yeah, make sure you uncheck that box in your realtor.com search.

 

[the_bird]

As usual I should've clarified. I meant find a house thru the grapevine where the seller doesn't have a realtor. My friends bought their house from a co-worker of a friend and paid 30% less than market value..

Lots easier to do when you're not new to the area, though. We got our house at about 20% - 25% less than it's appraised value (and a discount to the comps) through a friend of a friend, but that wouldn't have happened if we didn't have any friends in the area!

 

[rdwj]

Actually the worse looking house in a good neighborhood will sell faster than the best looking house in a bad neighborhood.

As for not using a realtor that's bad advice...the buyer doesn't pay the realtor the seller does.

Chances are you'll lose $$$ if you are only going to keep it 2-3 years...you'll be paying the realtor fees then.

The seller does pay them - true, but a seller is going to be more willing to come off his price because he DOESN'T have to pay the realtor. Honestly, what do they do for you? Show you houses? Big freaking deal! You can research areas on your own and there are TONS of houses available these days because the market is so slow. Your lawyer does all the heavy lifting, so why pay anyone else??

You can even use a site like buy.com and find all the listed properties. That, at a minimum, saves you almost half the fees.

 

[Soulive]

The seller does pay them - true, but a seller is going to be more willing to come off his price because he DOESN'T have to pay the realtor. Honestly, what do they do for you? Show you houses? Big freaking deal! You can research areas on your own and there are TONS of houses available these days because the market is so slow. Your lawyer does all the heavy lifting, so why pay anyone else??

You can even use a site like buy.com and find all the listed properties. That, at a minimum, saves you almost half the fees.

I love my real estate attorney. He earns his keep

 

[Kulprit]

Get a good realtor

Get a good home inspection

Get a good lawyer

I just bought my first home about 6 months ago with my wife after looking for about 2 years. It can be HIGHLY stressful - but it only really kicked in when we finally found the house we wanted and feared it not working out.

Having a good realtor helps. DO NOT try to do it yourself on your first transaction. I too felt I could educate myself and save a buck. After going through it - it would have been a nightmare. At times just having someone to call up and tell them to yell at the sellers agent was worth the price. Also you don't really pay their fee as the buyers agent gets a share of the sellers agent percentage.

A good home inspection is absolutely essential. Don't just get the first one you find either. Do some research make sure they know what they are doing. It was easy for me as it was in the area I grew up and my dad is in construction so he recommended one It is a national (Canada too I think) company called AmeriSpec (sp?) and the guy was great and we got a full written report as well as a termite inspection for about $300. Trust me - you have so much stuff flying around during your closing - and soooo many doubts and worries - that just getting the relief of a good inspection is worth the money.

Lastly get a good lawyer. He can be really really invaluabe during negotiation. Especially if your inspection finds anything (ours didn't luckily). Our lawyer was very instrumental in negotiation a sellers concession (sp?) as well as moving up the closing date as all these mortgage nightmares just began as we were about to close and we didn't want to want anymore and risk something happening to our financing. Check, Double Check, Triple check for all CO's. These can be a huge nightmare down the road if not properly checked - a good lawyer should do this first thing.

DO NOT try to save money in these areas, it's just not smart. I know closing costs are ridiculous (we paid over 20k on a 450k home - WTF?) but if you go cheap on an inspection or a lawyer what do you do 5 years later when something happens and it's 30-40k to put on a new roof? Or you don't have a CO for an added room and it's discovered when yu are trying to sell 10 years down the road by your buyers good lawyer, yikes!

Lastly - go with a good solid loan. 30 or 40 year FIXED rate. The more you can put down the better but I wouldn't suggest totally evaporating your savings - make sure you have something in there (actually the banks need to see that you have access to a few payments worth in case a nightmare scenario happens). There are soooo many costs after they hand over the keys - like that new lawn mower and mailbox - the moving costs - etc you get the idea.

Personal advice - don't let the wife go with her mother-in-law to Ethan Allen - my goodness.



With all that said - it wasn't a really bad process. Your so focused on each individual step as they come that you don't really have time to worry as much as I thought. It doesn't all come at you at once - it comes in manageable waves for the most part - of which your realtor and lawyer will help you get through.

Best of luck, feel free to PM if you have any questions or just a general rant.

 

[homebrewer_99]

As usual I should've clarified. I meant find a house thru the grapevine where the seller doesn't have a realtor. My friends bought their house from a co-worker of a friend and paid 30% less than market value...

OK, I can agree with that.

That approach is called FSBO (pronounced fizz-bo) or For Sale By Owner. These are usually cheaper as (an honest) seller would have already deducted the agents fee (6-7% depending on your neighborhood) from the asking price. This way both seller and buyer would go through a lawyer.

FSBO's are on-line also. Google it for your state/city.

 

[EdWort]

Theoretically, if you don't have a realator, you can negotiate the price down a bit more... but it's all part of the negotiation process. It's not a direct out-of-pocket savings.

yeah, if you find the house yourself, find a Realtor, tell him you'll give him 1% to close the deal for you if he puts the other 2% back on the bottom line at closing. If he won't, then tell him it's his loss and ask another. You will find one.

Realtors have enjoyed an outrageous increase in income as home prices have increased. They don't do any more work selling a $100K home than the do selling a $300K home in my experience.

Realtors will negotiate in this market, so don't stop when you get one that says no. They are out there. I have used them.

 

[srm775]

I've bought and completely remodeled two homes. And, a few of the key points I could tell you about are:

1. Location, location and location. Check the neighborhoods thoroughly. Reseach the town and SCHOOL districts. Get a home in the best school district you can afford. Don't be afraid to drive around the neighborhood on your own and even meet the neighbors.

2. Get an inspector (only as insurance). Typically, I've found that they don't know **** and the first inspector I worked with never even did half the things he said he did. We threatened to sue and got our money back. Typically, they'll help you more than just you, but don't expect them to do every thing.

3. If it's investment house, look at the house in terms of how it CAN be and not necessarily how it is. If you don't want to do any work, make sure it's exactly as you want, and don't settle until you get it. Right now is one of the best buyers markets in the last 20 years. If you're buying a home that you plan to live in for the next 20 years and raise a family in, look for size and expandability.

4. I think realtors are worthless sacks of crap, but they typically are a necessary evil. Our 3 different realtors didn't do anything, beside open the door to the houses.

 

[Soulive]

I think the most important advice here to remember is - don't let it stress you out. Just be glad you're in the position to purchase something. The right house will be yours sooner or later. Its not worth spiking your blood pressure for. Personally, I had to cut back on coffee while going through the seemingly endless process

 

[Cheesefood]

The seller does pay them - true, but a seller is going to be more willing to come off his price because he DOESN'T have to pay the realtor. Honestly, what do they do for you? Show you houses? Big freaking deal! You can research areas on your own and there are TONS of houses available these days because the market is so slow. Your lawyer does all the heavy lifting, so why pay anyone else??

You can even use a site like buy.com and find all the listed properties. That, at a minimum, saves you almost half the fees.

As a buyer, a realtor can be a real help.

As a seller, it's almost impossible to move your house without a realtor. Three letters: MLS. Without it, you're stuck trying to sell your house on CraigsList or BuyOwner.com, which means you're trying to sell to cheap-asses.And if you try to sell by yourself, you'd better make sure you can be home at a moment's notice when someone wants to see your place. In our area, I've heard no good stories out of selling a house without a realtor.

Then again, i'm hitting the 6 month mark on my house. Good news is that we might be renting it out soon.

 

[Ó Flannagáin]

We are talking about buyin ga duplex, since this will be short term, and renting out the other half. Any reason this is a bad idea? Duplexes harder to sell?

 

[rdwj]

As a buyer, a realtor can be a real help.

As a seller, it's almost impossible to move your house without a realtor. Three letters: MLS. Without it, you're stuck trying to sell your house on CraigsList or BuyOwner.com, which means you're trying to sell to cheap-asses.And if you try to sell by yourself, you'd better make sure you can be home at a moment's notice when someone wants to see your place. In our area, I've heard no good stories out of selling a house without a realtor.

Then again, i'm hitting the 6 month mark on my house. Good news is that we might be renting it out soon.

What do they do to help the buyer? Ó Flannagáin has nothing to sell, so HE can be the cheap ass looking for the steal. Why would you cut someone in on the deal for even 3% when they DO NOTHING but walk you around? Take that 3% and stick in in your own pocket!

 

[Cheesefood]

What do they do to help the buyer? Ó Flannagáin has nothing to sell, so HE can be the cheap ass looking for the steal. Why would you cut someone in on the deal for even 3% when they DO NOTHING but walk you around? Take that 3% and stick in in your own pocket!

He's not paying anything. And the selling agent isn't going to just take half the commission.

 

[Kulprit]

What do they do to help the buyer? Ó Flannagáin has nothing to sell, so HE can be the cheap ass looking for the steal. Why would you cut someone in on the deal for even 3% when they DO NOTHING but walk you around? Take that 3% and stick in in your own pocket!

Whether you have an agent or not doesn't effect the price of the home. Once the seller has a contract with a selling agent - they get their percentage. If you have a buying agent then they split the commission. If you have no agent - then the seller gets the entire commission.


To me especially on your first home - it's really stupid not to have an agent.

Going without an agent on a FSBO is like jumping into brewing straight into an AG setup. Sure it can be done but is it the smartest way to go? I don't think so.

 

[Ó Flannagáin]

What do they do to help the buyer? Ó Flannagáin has nothing to sell, so HE can be the cheap ass looking for the steal. Why would you cut someone in on the deal for even 3% when they DO NOTHING but walk you around? Take that 3% and stick in in your own pocket!

I think my main problem is I know NOBODY in the area. So I figure a realtor, although I would love to avoid one, would be better than me guessing what areas are nice. Then again, how do I know how to find a good realtor with NO hookups. God, I'm scared.

 

[Soulive]

I think my main problem is I know NOBODY in the area. So I figure a realtor, although I would love to avoid one, would be better than me guessing what areas are nice. Then again, how do I know how to find a good realtor with NO hookups. God, I'm scared.

Start talking to people from the area online. There are forums for everything now. There's gotta be some realtor rating/referral site...

 

[rdwj]

He's not paying anything. And the selling agent isn't going to just take half the commission.

It depends on how you look at it. The guy selling the house is going to have a number in his head where he's willing to sell. Involving a realtor raises that amount considerably. Why involve them?

 

[Cheesefood]

When you check out a neighborhood, look at the cars and backyards. If you see a two bedroom house with 10 bikes in the backyard, you can be pretty damn sure it's got 15 kids inside

Also look at the restaurants in the neighborhood.

Finally, MAKE SURE of this:


Get a place close to a LHBS.