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Buying a home - need some advice/opinions

Discussion in 'Random Ramblings' started by TwistedSerpent, May 20, 2010.

  1. TwistedSerpent

    TwistedSerpent Songster

    Apr 28, 2010
    Me and my BF are looking into buying our first house, we both want the same thing, somewhere away from the city with some land. We found a nice place on 11 acres but by chance ended up talking to the realtor who tried selling the place a year ago and found out the place is worth about $50,000 less then what the owners are selling for. They weren't able to make many payments which we would have to take over if we got it and deal with what they couldnt do. We love the area and land, but just dont want to deal with being out so much money.

    The option came up today to find someplace not exactly what we're looking for but what we can deal with, in an area thats going to be developed in the next few years making the value of the land we get go up and we can actually make a little bit when we sell it. Its not ideal, but its affordable and may work out better considering the BF is in the military. It would give us time to find a perfect place or decide if we want to move out of state even, we just feel right now we need our own space instead of renting a small run down little house with no yard. Are there any other options we may be missing? This will be a first time for both of us so we're jumping in kind of blindly so any and all advice is greatly appreciated.
  2. bigredfeather

    bigredfeather Songster

    Oct 1, 2008
    Yorkshire, Ohio
    I would check the Sheriff's auctions. In most areas of the country right now, there are many properties that have been forclosed on and are selling for much less than they are worth. If you go online, you should be able to find a listing for your area. Just a thought and goodluck.
  3. If I understand your first part, the home you really want is overpriced by $50,000. Ask the realtor if there has been an appraisal done on it, and if not, you might want to consider one. It will cost close to $300 depending upon where you live, and that is our price in midwest Il. You won't be able to get a bank loan on that house unless you can come up with the difference between the appraised value and the selling price agreed upon. Or the seller has to back down and drop the price to come in line with the appraisal. Even if you put an contract on it, your loan officer will order an appraisal anyway, (and if it falls through, you will have to pay for it, otherwise its incorporated into your closing costs) and that will be the telling tale. Either way, you pay for the appraisal, or at least in Il. you do.

    As far as the other, listen to your heart. IF you don't feel you would be happy as a hog in mud there, don't buy it. There will always be that "what if" hanging over you on the first place. Even making a profit down the road is a certainty in todays market, and unless you really see yourselves being content, skip it. One thing I have learned in selling Real Estate is if it didn't work out the first go round, it wasn't suppose too, the right home is coming . . .good luck, and keep us posted on this.
  4. TwistedSerpent

    TwistedSerpent Songster

    Apr 28, 2010
    Not sure about an appraisal, but with the VA loan they would send someone out for us. As far a sI understand the owners have negitive equity, which is why theyre selling it for so much more (they also lied about the square footage). We just arent that into taking on someone elses negitive equity so we are kind of turned off by it.

    We did check out another place today, least drove by it. We love the area a lot more, its a little cheaper, we like the house a lot more but its only on 2.44 acres. In reality though while 11 acres sounds nice unless we plan on ranching a little we really arent going to use all that land. This new place already has mature trees around it and a cute little screened in gazebo and seems to be in good condition on the outside, will post when we are able to see what its line inside though.
  5. Chook-A-Holic

    Chook-A-Holic Songster

    Oct 5, 2009
    Central, N.C.
    I would keep looking. It's not your problem that the owners are upside down on the mortgage. Why would you make their problem yours? If they are having problems making payments I would skip the owners and the Realtor and talk directly with the bank. The real estate market is a crap shoot right now and there is no need to start out $50,000.00 in the hole that may get bigger. Yes we have all heard the same ole stories about how much it will be worth in a few years but that's pure speculation that's gotten the market in the mess it's in today. There are still great deals out there to be had. Good luck in you search.
  6. CityChicker

    CityChicker Songster

    Mar 21, 2009
    Some of what you are saying doesn't make a lot of sense. Are you saying that you are taking over an assumable mortgage? I have to assume that is what you mean. If not, however much the seller owes or how upside down they are is absolutely none of your concern as the buyer. None at all. Assumable mortgages are not common at all these days. I haven't seen one in twenty years as a real estate broker. If you are going in with a regular VA loan, you will not overpay for the house. VA is very strict about the inspection and appraisals, as well as non-allowables- expenses the seller has to pay, not the buyer. I would really talk to your loan officer and get more information. If the house is $50k over value, you are not going to get your loan, period...not in this market and certainly not with a VA loan.

    You really need to work with a buyer's agent. There is no substitute for this, especially for a first time buyer. There is no cost to you (usually). They are paid out of a portion of the commission the listing agent gets. Having an agent working for you and you alone will solve a lot of problems and answer a lot of your questions. Whatever you do, do not buy a house where you are in a situation in which the agent is representing you AND the seller. That can be a disaster to the point that it is even illegal in some places. How could one agent represent the best interests of two opposing parties? They can't. Pure and simple.

    Get a buyer's agent you are comfortable with. Go out and see several houses. Research the market yourself. Check assessed values through the county and online places like Zillow. When you find a house you like, demand that YOUR agent pull up very recent comparable SOLD homes. Find comparables that are similar in size, number of bedrooms, age, size of lot, condition, etc... and see what the SOLD price per square foot was and what other concessions the seller made like paying for closing costs. If based on this information the house is a good deal, go forward with writing a contract. Good luck.
  7. twentynine

    twentynine Songster

    Jun 14, 2009
    Never pay more for a place than it is worth. NEVER NEVER NEVER!

    In the specific case of the 50k deal. Just because they are asking 50k more than what it is worth , that don't mean you can't offer the real value. The current owners and the bank need to work out the 50k, not you as a perspective buyer.

    If you are worried about appreciation and depreciation, speculating may not be your thing.

    This is what I did 30+ years ago. I got property, built a home for my family, and here we sit. I am not worried about whether the property is worth more or less than I paid for it. I ain't worried about being able to "make" money on my home. Nearest I can see it don't work that way. Why?

    You buy a home and property for the 50k, ten years from now it is worth 100k, so in your opinion you made 50k, right!

    Think about it, your property is/was not the only piece of land to appreciate, every piece of property in the area pretty much appreciated at the same rate. So all that property you could have purchased ten years ago is now more expensive, at the same rate of appreciation as where you are currently living.

    So you sell your home and property for a 50k profit, that 50k profit is then used up buying a replacement home and property. So you are right back where you started ten years previously.

    My advise, buy the land and property you want once-- the first time, raise your family, enjoy your home. And for sure---- NEVER NEVER NEVER pay more than what the property is really worth.
  8. skeeter03

    skeeter03 Songster

    Jun 23, 2009
    make a low offer on the place - you dont have to give what the people want - tell them why the offer is lower - property is overpriced house is smaller then said. And their debt load is NOT your problem.
    maybe get some prices of houses in that area on same amount of land for comparison. Maybe they have it high hoping to at least get what they bought it for - you know wheel and deal. I would get an inspection done by a professional or at least get someone with good house sense to come look at it - we always got our brother who has worked in construction his whole life to come look at the houses we were looking at
    Check out the water and sewer. you can also put in the buyers clause things that they have to take care of before they leave.
    best bet is to get an agent, Find someone that comes recommended by a few people. (even though most of them are brainless twits and will screw anyone out of money) at least here they are. lol
    And like the last one said DO NOT GET THE AGENT WHO HAS THE HOUSE FOR SALE!!
    We got the run around for months from that when we did it. she was eventually canned from the agent office she worked for cause she forged signatures on our papers saying things that had been done were when they werent and we busted her big time for it.
    buying a house is so exciting but so stressful lol.
  9. My SIL bought a plot/build a house some years back. She was told that the land in front of this 'development' would be made into more houses, but that the land in back was reserved for Green.

    Yeah, not so much. The Green ended up being back to back cookie cutter houses, no more pretty view but not fatal.

    But that land in front? Section 8 housing that killed everyone's property values.

    Bonus points were when, due to the new houses in back they had to redraw the school boundaries and her kids were going to be shipped off to a MUCH lower grade (pardon the pun) school clear across town instead of the nice school right down the road.

    It took them two years to finally sell the house because of that and even then they lost big time... this was years before the economy/mortgage mess.

    After their experience, there's no way I'd move to any area where they are scheming development. That's one of the (many) things I'm going to be hunting out when our time comes to shop.

    Value wise, look up the tax value... easiest thing really. That's assessed by the county/etc true, but the owners can fight it if they feel it's too high. There is no way on earth I'd pay more than the tax value for a property, unless they can show me receipts from improvements made (new A/C, new roof, etc) since the last assessment date.
  10. herfrds

    herfrds Songster

    Jan 11, 2010
    From my experience walk away and keep looking. There are tons of good places coming up for sale everyday.

    I bet you will find one you both will just love.

    What "ranching" are you thinking of doing?

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