The Chronicle of the Horse
MagazineNewsHorse SportsHorse CareCOTH StoreVoicesThe Chronicle UntackedDirectoriesMarketplaceDates & Results
 
Results 1 to 11 of 11
  1. #1
    Join Date
    Dec. 4, 2005
    Location
    washington state
    Posts
    6,562

    Question Buying a House Rundown/Tips/Advice

    I am going to start serious looking in a few weeks. I am in the process of prequalifying for my mortgage but need to wait until my 6 mos newbie probation at work is up at the beginning of march for the loan program I am using ( have to be permanent full time to qualify, no probation). I already took the Home Buyers Class offered here in WA that qualifies me for interest rates at 2.5-3.5% interest so I know the basics. I have a realtor.

    I am buying in the $100,000 range, the house will be a rental in 5-10 years. I have no interest in having to make a big mortgage payment to have the showiest place on the block LOL!!

    I am poking around on Redfin (which I love) and am looking at quite a few houses that fit the bill.

    I am noticing quite a few of the "short sales" and foreclosure homes have multiple pending sales then are re-listed. What gives?

    Please share everything from the perfect home buying experience to the horrors you have endured, I'm all ears!
    The Knotted Pony

    Proud and upstanding member of the Snort and Blow Clique.



  2. #2
    Join Date
    Jan. 5, 2011
    Posts
    238

    Default

    Quote Originally Posted by twotrudoc View Post
    I am noticing quite a few of the "short sales" and foreclosure homes have multiple pending sales then are re-listed. What gives?
    I looked at a short sale horse property and almost immediately the property was under contract. That contract was broken, then I put in an offer. I wanted the bank to take their time getting back to me so I had time to sell my place. Nope, got an answer within a week or 2 that the bank wanted their share to be more than the listing price. I think they wanted $236,000. I broke the contract, the place was then listed at an even lower price. It ended up selling for about $190,000. (Seems like fraud to me, to list it for less than the bank says they will accept?! Then the bank took less.)



  3. #3

    Default

    Make sure the terms of your mortgage allow you to rent the property. There may be commercial property rules you need to look into.

    Personally, I would avoid any area with condo or association rules. I've heard more unpleasant stories than benefits.

    When you do rent the property, use a rental agency. You do NOT want your tenant knowing you personally or having your phone number. It will be a 24/7 nightmare unless you get a dream of a tenant.

    If you are looking at fixer uppers, get good estimates and unless you are a contracter yourself, don't plan on doing most of the work yourself. And add 25% to what you expect to spend. Jobs like this never come in under. Then figure your expenses to your planned rental income and figure out if the numbers work.

    Don't underestimate curb appeal. Keeping the exterior attractive is just as important is the interior.

    Pay attention to school district. Even if you don't have kids, your future tenants may.

    Off street parking is a huge bonus, especially in city residences.

    In a two story, a powder room on the first floor is a bonus.

    A washer/dryer isn't a necessity in a rental, but a great kindness. It makes the property more attractive and may be worth a couple of extra bucks in rent.

    Know owner/rental law. In some states it's very tricky to get rid of a bad tenant.

    When I was a Realtor, the first rule was location, location, location.
    http://www.tbhsa.com/index.html

    Originally Posted by JSwan
    I love feral children. They taste like chicken.



  4. #4
    Join Date
    Dec. 4, 2005
    Location
    washington state
    Posts
    6,562

    Default

    Wow thanks!! Let's see, no fixer uppers, I am in college full time in addition to work, no time.

    I am curious why they would advertise a price below what the bank would take??
    The Knotted Pony

    Proud and upstanding member of the Snort and Blow Clique.



  5. #5
    Join Date
    Apr. 9, 2004
    Posts
    216

    Default

    Always make sure to get an inspection, and make sure you get a good inspector. Be there during the inspection so you can hear what the inspector is saying firsthand, and you can ask questions. An inspection does not guarantee there are no hidden problems, but if you get a good inspector, you should have a good idea what issues the house has. You might need specialized contractors to come look at the property as well. It may cost more, but will be worth it in the end. If the house is on a well, you will want the water tested. If there is a fireplace, you might want a chimney expert to look at the fireplace. A good electrician can also be worth the money. If there is a basement, get the radon test.

    Location is important both for rental reasons and for re-sale. Good school districts (goes along with location) will also potentially affect the ability to rent or re-sell the property.



  6. #6
    Join Date
    Aug. 12, 2002
    Location
    Calera, AL
    Posts
    1,901

    Default

    What andreab said - get a GOOD inspector. I bought my house in '09 and my inspector checked out everything - even tested every single outlet so now know that a outlet in my garage and one in the barn are wired backwards. They still work but there's just something funky about them. (I don't know elect. but my SO got it and he'd be doing any work on them anyway.)

    My inspector checked the floors, dampness in the basement walls, the foundation, the roof, trees rubbing the roof, plumbing - everything - and provided both a written report and a dvd. Based on that, my realtor and I could ask for stuff to be fixed. I loved that guy! He saved me some serious money and stress.



  7. #7
    Join Date
    Feb. 14, 2012
    Location
    Fern Creek, KY
    Posts
    3,010

    Default

    When we were house shopping, the first thing DH did was go right to the basement and go over every inch with a fine toothed comb for cracks/dampness. We'd found the PERFECT house, that ended up having a huge gap between the foundation and the house (like I could stick my hand through it and touch the grass on the other side). It was a good thing that he went down there, because I was in love with the house otherwise!

    I third all the other suggestions about a GOOD inspector.

    Good luck! House shopping is a bit a like horse shopping... really fun, really frustrating, and exhausting!
    Quote Originally Posted by MistyBlue View Post
    I prefer them outside playing as opposed to standing in the barn aisle playing "I can crap more than you"
    New Year, New Blog... follow Willow and I here.



  8. #8
    Join Date
    Aug. 28, 2007
    Location
    Triangle Area, NC
    Posts
    6,704

    Default

    Inspection for sure!

    Have $10k handy just in case

    Negotiate a home warranty.
    www.destinationconsensusequus.com
    chaque pas est fait ensemble



  9. #9
    Join Date
    Dec. 31, 2000
    Location
    El Paso, TX
    Posts
    12,185

    Default

    Quote Originally Posted by twotrudoc View Post
    Wow thanks!! Let's see, no fixer uppers, I am in college full time in addition to work, no time.

    I am curious why they would advertise a price below what the bank would take??
    The agents are just trying to get the ball rolling. You can check with the agents to find out if the home has already been approved for a short sale at that amount. You can also check with your county deeds records and see what the amount of the mortgage is. Generally the bank will try to recoup 80%, since if they had PMI ins, it covers 20%.



  10. #10
    Join Date
    Dec. 4, 2005
    Location
    washington state
    Posts
    6,562

    Default

    Jetsmom, you rock. Thanks!!
    The Knotted Pony

    Proud and upstanding member of the Snort and Blow Clique.



  11. #11
    Join Date
    Dec. 31, 2000
    Location
    El Paso, TX
    Posts
    12,185

    Default

    Quote Originally Posted by twotrudoc View Post
    Jetsmom, you rock. Thanks!!
    You might want to go to Homepath.com website and look at Fannie Mae Foreclosures in your area. They allow owner occupants to buy with 3.5% dn and help with some closing costs. Investors pay 10% dn if you have less than 5 financed properties. If you have 5 or more, you need 25% dn.

    Homepath offers Homepath renovation financing as well which will allow you to finance in the cost of repairs. There is no PMI on Homepath financing which makes it cheaper than FHA loans. You get a 10 day inspection period, and can back out if you find items needing repair that they refuse to fix. But it isn't an "option" period like on regular contracts because on them, you can back out for any reason, even just changing your mind.

    Short sales may take a long while if they just started the process. (like 4-8 months). If the process is already underway, and the owner agrees to your amount, and it's over the 80% of the original sales price, then you stand a good chance of getting it.

    Corporate Relos, are often a good deal. many times they offer special financing on them, with good terms, and they are priced below market. A real estate agent in your area can help you find them.

    There are also programs, for special financing thru HUD, if you are a police officer, teacher or Firefighter. They will sell foreclosed homes in certain areas for 50% of their value. You must agree to live in the home for 3 yrs. What they do, is sell it for the full price, but 50% of the amount is written up as a 2nd note, with payment considered paid off in 3 yrs, if you stay there that whole time. If you rent it out/move/sell, they will call the pmt due on the 2nd, or include it in the payoff amount of the loan.
    That program's homes are usually in areas where they are trying to make the area more desireable, by having people with "reputable" jobs live there. So the areas may not be the best right now. Depends on what you feel comfortable with. But you cannot rent/sell for 3 yrs to make it worthwhile. The program is called "Good Neighbor Program".

    There are also usually programs for first time buyers, that uses bond money from your city. They provide down pmt assistance, but usually have income caps, and make you attend a financial responsibility course. Local Mortgage companies can tell you about them. USDA programs can also be good. And not all of the USDA eligible homes are in the country. Some are regular homes in subdivisions, that just aren't close enough in to the city center. They will also provide dn pmt assistance. Just be sure you understand the occupancy requirements. Some are ok after a certain time period with you selling/renting out, some aren't.



Similar Threads

  1. Is anyone contemplating buying a house?
    By pony4me in forum Off Topic
    Replies: 30
    Last Post: Dec. 26, 2012, 08:27 PM
  2. Replies: 47
    Last Post: Sep. 19, 2011, 09:56 PM
  3. Am I totally insane?? (Buying a house??)
    By FrenchFrytheEqHorse in forum Off Topic
    Replies: 13
    Last Post: May. 30, 2011, 05:30 AM
  4. Buying a house / land - when?
    By Blugal in forum Off Topic
    Replies: 10
    Last Post: Sep. 2, 2010, 08:51 AM
  5. Tips for buying/leasing
    By aks710 in forum Hunter/Jumper
    Replies: 2
    Last Post: Sep. 12, 2009, 09:24 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
randomness