House Purchase Advice

[ScottyB]

Don't skimp on the home inspection/inspector.

Jen and I would be in serious crap if we had ignored this advice 2 years ago. ask around and see who uses who.

also, a shameless plug for Lee. he gave me some good wisdom when i needed it.

[BLINGMW]

I would buy a house we could afford on one income or come damn near close. Oh, and if you are planning to buy "with someone" and kids are in the near future (5-7yrs) you will spend at least 1000/month on daycare if you both have to work to afford the house. I only mention that because it's almost like buying a second house, a huge expense that can't be traded in for a lesser model (i.e.car payment).

yeah man, daycare costs suck. :vomit: Jess and I also tried to buy a house that either one of us could afford if need be, I second that idea! :thumbup:

[Jewels]

I would buy a house we could afford on one income or come damn near close. Oh, and if you are planning to buy "with someone" and kids are in the near future (5-7yrs) you will spend at least 1000/month on daycare if you both have to work to afford the house. I only mention that because it's almost like buying a second house, a huge expense that can't be traded in for a lesser model (i.e.car payment).

yeah man, daycare costs suck. :vomit: Jess and I also tried to buy a house that either one of us could afford if need be, I second that idea! :thumbup:

+1. We are right on the cusp, but that advice was passed down from our parents and I believe it to be the best advice.

[ScottyB]

oh - very minor compared to other points, but also see how much you can find out about the HOA if you choose a house that is in a neighborhood with one. especially for us car guys...HOA's can be helpful or an insidious facade for comformity-nazis to try to make sure your life stays as bland as theirs. i wouldn't want to hear about you getting fined for having a small parade of busted-ass SHO's in your driveway.

[WRXtranceformed]

oh - very minor compared to other points, but also see how much you can find out about the HOA if you choose a house that is in a neighborhood with one. especially for us car guys...HOA's can be helpful or an insidious facade for comformity-nazis to try to make sure your life stays as bland as theirs. i wouldn't want to hear about you getting fined for having a small parade of busted-ass SHO's in your driveway.

That's a really good point that's often overlooked by people who are choosing neighborhoods to live in. Also, definitely check into the amenities that the neighborhood offers. It is really nice to have a gated pool with a swipe card, we've used it a ton this summer.

[JustinG]

yea, im so glad i dont live in a community with an HOA, they are good for keeping the neighborhood nice, but a pain when your turning over a freshly built engine with no exhaust at 2 am on a wednesday night

[Jake]

My dad's a realtor with Remax Premier. Let me know if you want his contact info - he's based out of Dulles and would definitely be willing to chat. He's got a lender that he's used for 10+ years and they'd both make the process easy. I don't know who y'all are working with to get the comments about realtors being like used car dealers, etc. but price (and thus commission) is a non-issue to him, I know that. He'll put you where you want to be, not where he wants you to be.

I know about |-----| this much about the market right now, but things are on a slight upturn right now. Dad's been more active, so I can only assume realtors across the board are in the same boat.

Shoot me a PM and I'll forward contact info, if you want.

[REED]

I work with a few guys that are appraisers from MD, a couple are even brokers I believe. They have been in the real estate business for longer than most of us here have been alive so I'm certain they know who the quality people to go for inspections, realtors etc.

I can see who they recommend if you want.

[WRXtranceformed]

. I don't know who y'all are working with to get the comments about realtors being like used car dealers, etc. but price (and thus commission) is a non-issue to him, I know that.

Not saying your dad is one of them, but having worked in the industry I can tell you that there are VERY few TRULY competent realtors out there.

[ViPER1313]

Thanks for all of the advise - keep it coming.

Good info on the short sales and foreclosures - I didn't know that they took so long to get into and had such a large number of speculators looking at them.

Got to work on the loan approval side - I have been half-heartedly making calls to people. Need to sit down with my bank.

Thanks for the offer Jake but I'm looking in Frederick, so I really want someone local to the area.

[Ole]

oh - very minor compared to other points, but also see how much you can find out about the HOA if you choose a house that is in a neighborhood with one. especially for us car guys...HOA's can be helpful or an insidious facade for comformity-nazis to try to make sure your life stays as bland as theirs. i wouldn't want to hear about you getting fined for having a small parade of busted-ass SHO's in your driveway.

LOL, If my HOA only knew who they were letting into the "hood".......... Thank goodness for my "home away from home" garage at SP.

[WRXtranceformed]

You might want to ask your realtor how long that $8k tax credit is going to be around. I think I remember my friend who works in new home sales say last night that it was disappearing in November.

[JustinG]

You might want to ask your realtor how long that $8k tax credit is going to be around. I think I remember my friend who works in new home sales say last night that it was disappearing in November.

Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as the taxpayerÔÇÖs principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before Dec. 1, 2009, to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.

Linky to FAQ on first time homebuyer credit:
<!-- m --><a class="postlink" href="http://www.irs.gov/newsroom/article/0,">http://www.irs.gov/newsroom/article/0,</a><!-- m -->, ... 91,00.html

I would assume you have to close by Dec. 1?

[WRXtranceformed]

Ouch, that sucks for new home purchases if there is a long lead time from contract to close. People could potentially miss out on that credit because of builder delays.

[ViPER1313]

The more I dive into this the more I realize it's going to be a PITA.

Seems like every speculator in the world is snatching up homes as soon as they come onto the market.

Out of the 3 listings I was interested in, 2 already had 10+ offers, and the 3rd went to contract today.

:?

[.RJ]

Seems like every speculator in the world is snatching up homes as soon as they come onto the market.

Sounds like what happened 3-4 years ago as the shit started to crash and burn. ZOMG its cheaper than it should be BUY MOAR!!!! This only drove shit further down.

Maybe I'll wait a little longer.

[Sijray21]

best thing is to buy when you're completely ready regardless of how good the market is. my colleague just bought a house off foreclosure and now needs to replace the roof, parts of the plumbing, and a few other things that tally over $20k in repairs (she was expecting $5k based on the initial inspections)....

regarding the purchase hassle, i've heard similar stories since people were waiting for the bottom of the market when they've been ready for months/years to buy due to the market. i've had a couple friends buy on short sale recently (closing within the last few months), but also a bunch that stopped looking due to the amount of time invested (no real estate agents), bidding wars, and stress involved.

[Mike]

fuck it. if there's still a question as to whether someone who makes reasonable money can afford to buy a basic house where they want to, there's a problem. the problem is the market isn't right. it'll correct, but we're not there.

that's basically what i go by. i don't give a shit what joe douche at b&j realty says... i go by reality, and reality says he's wrong.

i have no car payment, i'm fairly frugal, i make good money, and i've always been a saver, but i couldn't afford anything more than a condo. even on our two incomes plus a roomie, a house would be a stretch. fuck that noise.

no, moving to some place i don't want to live is not an option. i value my lifestyle, which in no way should be a bank breaker. i'm not looking for much; an 1700sqft brick cookie cutter built in the 40s would make me happy enough.

[Apoc]

i have no car payment, i'm fairly frugal, i make good money, and i've always been a saver, but i couldn't afford anything more than a condo. even on our two incomes plus a roomie, a house would be a stretch. fuck that noise.

You have to remember that you're looking to buy relatively close (if not considered in) a major city. Show me a time in history when a 27 y/o with dual income could afford a "house in the city" and I'll be surprised. Our parents bought houses in the 'burbs, their parents bought houses in the 'burbs and their parents before them were lucky to own anything. My parents didn't live in Springfield because they wanted to live in the 'burbs. I'm sure they would have preferred the same thing close to where they worked (downtown DC) but it's where they could afford a single family home... it's just the way it is. It doesn't matter if you're making good money because to afford a house where you want to live, you need to make money that people make after having a job for 20-30 years. That really hasn't ever changed, I think you just have unreasonable expectations about where you should be able to afford to live in the house you want.

[Mike]

have you worked 20-30 years? because my house's value isn't that much more than yours... AND you spend a lot more "other" money than me... and i'm guessing (actually, i know) our combined income in about the same as yours... and i'm willing to take on a roommate.

in 2002, my house was valued less than 1/2 of what it appraised for last year. did family income double as well? no, leading me to believe we're still very much in a housing bubble.

we could make it happen, but the reality is it'd stretch us a bit more thin than we're comfortable with... it shouldn't be that way.

until we reach 2003 or 2004 levels, i won't be convinced the market is correct. you've gotta have buyers for this homes in which folks are dying, retiring, etc... i don't have many friends who are interested, and we are the market.