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Pit home buying tips thread

Certainly you're correct on both counts, but the seller can stipulate that their acceptance of the offer is contingent on the shortfall being forgiven. However, by entering a short sale position the owners are tacitly prepared to take less than what they owe on their house. Depending on the agreement that they signed with their lender, they may give up the right to accept or reject any offers on their own. Their obligation may be to simply convey all offers to the bank.
 
PhDeac said:
Random little tidbit. Try out your cell phone in the house and make sure you get a signal throughout the house. Also check coverage maps.
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Not that random. Good advice actually. When me and my wife were looking, there were houses that we didn't get reception in and it definitely played a role in our decision of whether to give the house a second look.

I was a first time buyer 2.5 years ago, so these are things I thought about. Mostly common sense stuff:

See what appliances the seller will throw in. If they are relatively new, it might save you some hassle and money later on. Plus, you can have a fridge stocked with beer right when you move in.

Walk around with the home inspector. It gives you a chance to ask questions about things you've found as both of you are standing in front of it. When selecting an inspector, get someone who will give you a full report afterward with pictures and descriptions of what he found (maybe most do this, our inspector did). When we foudn stuff later on, we were able to go back and see if it was something new or if it was present before we closed.

Check outdoor faucets for drips or water damage. Not deal breakers, but things you may have to replace later on.

Consider future repairs you may have to make like siding, roofing, windows. Will it be necessary soon or years down the road, giving you time to save up. Are you willing to spend the money on that kind of stuff? If you plan to live there a long time, it probably is worth the money for some of this stuff.

Pay attention to the neighboring houses to see how they are kept up.
 
DeaconSoDear said:
Our realtor suggested making an offer about 3k less than list price and I told him to drop that another 9k and ask for the washer and dryer to stay. We just got their counter back and we are going to end up getting the house 4k less than what our realtor suggested offering and they will leave the washer and dryer.
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I realize that it's a buyers' market, so low-balling a seller is pretty common, but this this is also highly location dependent. We sold not too long ago in a market where buyers would rather not offer than run the risk of insulting a seller by offering too little. I think it just underscores the point that you need to pick the right agent.
 
PhDeac said:
Random little tidbit. Try out your cell phone in the house and make sure you get a signal throughout the house. Also check coverage maps.
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Yeah, our current house is in a Sprint vortex and we switched to Verizon when we moved. Turned out for the best though.
 
The home where I learned this tip was just outside of every major carrier to the point that I lost a signal when I got to the driveway and had to walk around the neighborhood to have a long conversation.
 
MBDeac08 said:
Consider future repairs you may have to make like siding, roofing, windows. Will it be necessary soon or years down the road, giving you time to save up.
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This is a huge point. If the roof will need to be replaced in a couple of years, the HVAC units, you could be looking at $10,000-$40,000 depending on size of a starter home. At the very least you can use this as a negotiating point.

Also, not sure anyone has mentioned, but make the offer contingent on a Radon inspection. In NC solving a known radon issue is a seller's responsibility. Large portions of Winston have radon problems. Our foundation had to be probed to find where to install the venting system, the whole thing cost the sellers $2200 and we only paid for the inspection.
 
RacerDeac said:
FIFY. I can't imagine why you'd buy any house, new or used, without an inspector going through it first.
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Don't use the inspector that you realtor recommends unless you really trust your realtor. A lot of the inspectors they use work with them often and know that the realtor doesn't get paid unless the deal goes through. The old "I'll scratch your back if you scratch mine." I'm not saying that they break the law/commit fraud/etc... but they may not point everything out unless it is blantantly obvious and can't be ignored. I have heard horror stories about this happening.


ETA... it looks like a few people beat me to it but I will leave the post to reiterate the importance.
 
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ATT has microtowers that you can put in your house. My parents have one.
 
Any recommendations on how to find a good inspector? We really don't have many contacts in the area we can lean on for a referral outside of our realtor.
 
DeaconSoDear said:
Any recommendations on how to find a good inspector? We really don't have many contacts in the area we can lean on for a referral outside of our realtor.
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i can probably help. i'll get back to you via email soon.
 
Dented said:
I would personally go for the longer amortization based on the tax deductible nature of interest payments on a home and the time value of money.
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Just as an FYI there has been some talk about eliminating the mortgage interest deduction as a method to raise revenues.
 
DeaconCav06 said:
Just as an FYI there has been some talk about eliminating the mortgage interest deduction as a method to raise revenues.
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i knew that was a potential problem, but i would still say 30 year based on the time value of money. basically if you can make a 77 basis point spread (the difference between 15 and 30 year rates right now) after taxes on an investment then taking the 30 year is more ideal. if you cant make a 77 basis point spread over the next 15-30 years, the world has probably ended so it doesnt matter anyway.
 
DeaconSoDear said:
Any recommendations on how to find a good inspector? We really don't have many contacts in the area we can lean on for a referral outside of our realtor.
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You could try Angie's List or talk with a builder or general contractor on who they'd recommend.

On the 15 or 30 year mortgage, the amount you borrow will determine the length of your loan or how much of your monthly salary you want going to pay it. The rule is no more than 22% I think.
 
bojanglefunk said:
Any thoughts on 30 vs 15 year mortgage?
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assuming the difference in rate is around .50%, it may be beneficial to go with the 30 but pay it like a 15 if you can afford it. the extra amount you'll pay in interest (roughly $1000 annually for a $200,000 loan, although you'll recoup some of that in mortgage deduction) may be worth it for the cash flow flexibility in case things get a little tight. you'd be able to scale your payment back $500 on a 200,000 mortgage.
 
bmoneydeac said:
assuming the difference in rate is around .50%, it may be beneficial to go with the 30 but pay it like a 15 if you can afford it. the extra amount you'll pay in interest (roughly $1000 annually for a $200,000 loan, although you'll recoup some of that in mortgage deduction) may be worth it for the cash flow flexibility in case things get a little tight. you'd be able to scale your payment back $500 on a 200,000 mortgage.
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Do most banks allow you to over pay without penalty? (I have never owned a home and am at least a year away from starting to shop).
 
Dented said:
i knew that was a potential problem, but i would still say 30 year based on the time value of money. basically if you can make a 77 basis point spread (the difference between 15 and 30 year rates right now) after taxes on an investment then taking the 30 year is more ideal. if you cant make a 77 basis point spread over the next 15-30 years, the world has probably ended so it doesnt matter anyway.
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I think a 'real world' answer is go with the 30 year term, b/c you can always apply more on a monthly basis....if there is truly a 77 basis point difference in the two. Too much unknown to verify making higher payments based on your individual earning capacity. We originally went 30 years, then refi'd down to 20 after a few years as we began generating more revenue. Unless you have a sizable nest egg, you can't predict what lies in your future (i.e. unexpected expenses, medical, etc.)
 
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