Buying a House, Your $.02 Requested.

[SpunGirl]

Jake and I will be buying a house sometime in the next two weeks. We've been approved for our financing (5.5% fixed 30 year) and given a price range. We're working with a real estate agent we really like and that has shown us a lot of great places.

We're trying to ask all the right questions, but we've never done this before and it's kind of overwhelming. Any relevant advice/experiences/whatever anyone can share would be welcome.

-K

[Betheny]

Can I live in your basement?!

[SpunGirl]

I don't think we'll be getting a house with a basement:(

-K

[Betheny]

WENCH!

[Tsa`ah]

The thing about real estate is that the critical items change from region to region.

You'll want to know when it was built and who did the construction. Check for complaints and violations.

Just like buying a car you'll want to know the history of the home you are looking at. Has there been any fires, flooding, etc.

You'll want to know how old the water heater, heater, and ac are.

Do some prodding around. Check around the windows and gutters for wood rot. Check along the foundation for cracking and leakage. Check the pipes for leaks and patches.

I would suggest not even looking at homes that don't have the outlets grounded, don't have copper water pipes. and have the look of needing electrical and plumbing work.

Check the property lines. Are parts of the property you're interested in hanging over into the neighbors property? That's going to be a headache for you. Neighbors property hanging over into the property you're interested in? Still a headache.

Your best bet is to get some insight into what appraisers look for and become a novice appraiser yourself.

[HarmNone]

Also, I'd be sure to find out when big jobs were last done...like the roof. Look carefully for wood rot, and examine the foundation. (If you don't want to tackle this yourself, there are knowledgeable people you can hire to do it for you. )Then, be sure to have any house you're considering appraised by your own appraiser. That can save you a lot of misery. :)

HarmNone

[AnticorRifling]

Anything promised to you by the seller, real estate agent, etc. get in writing. I don't care who they are or how much you trust them put it in writing.

[Suppa Hobbit Mage]

Get a GOOD inspector. My inspector was so thorough I was amazed at the tiny, seemingly inconsequential things he caught.

[Prestius]

Congrats Miss Spun!! Owning a home is part of the American Dream!!

I second Magely's advice above. I assume that you're moving somewhere in Vegas where most of the housing is relatively new, but you can't underestimate the value of a good inspector who will see things that your eyes can't see and the agent won;t tell you.

Also, drive through the neighborhood at different times of the day to see what it's like.

Finally -- I'd get a couple of slot machines and a BJ table and set em up in the living room to help pay the mortgage ;-)

-P

[peam]

Originally posted by Prestius
... and a BJ table and set em up in the living room to help pay the mortgage ;-)

-P

I don't think she's that type of girl.

[Jorddyn]

Originally posted by SpunGirl
We're trying to ask all the right questions, but we've never done this before and it's kind of overwhelming. Any relevant advice/experiences/whatever anyone can share would be welcome.

-K

It is very, very tempting to overspend. Don't!

Don't think that you had $800 rent a month, so you can handle an $800 house payment. There are a ton of extras - higher utilities (if you're moving from an apartment), real estate taxes, property insurance, lawn mowers, exterminators.

Do decide what is important to you to have. I decided to buy a small new condo as opposed to a bigger older house. It was important to me that I not have to fix anything. It may be more important to you to have a big yard, or lots of living space.

On the other end, make a list of deal breakers - too far from work, too close to train tracks, neighbors are mass murderers, etc. If the house you're looking at has any of those, move on.

If your first impression of a house is that you don't like it, don't waste your time convincing yourself that you will eventually like it. You may wind up buying a house you hate.

Find a real estate agent who actually returns your calls, and who seems like s/he will actually help you find something you love.

If you need PMI (which you usually do if you don't have 20% down), check with your bank to learn their rules. They'll most often just tack it on to every month's bill, but you can sometimes buy it through another broker, or pay it all up front at a substantial discount.

Don't rush.

Wear sunscreen :P

Jorddyn

[Valthissa]

We built one house in 1987. I'll say what Anticor said differently: Everyone in real estate will turn their back on you after the closing. Anything that is not in writing will not be done. Some of the things that are in writing will only be done after you threaten legal action.

The current house we live in is a brick rancher from the 60's.

We were able to substantially increase the amount of land (which tends to translate into privacy) by doing so.

In Virginia the demand is for new construction so buying an older home and improving it worked well for our family.

Good luck, choose wisely - outside of selecting a good spouse, selecting a good home may well be the most important decision you make.

C/Valth

[PeaceDisturbance]

I can go on all day long about this subject.

You want to buy in a good school system. Property values usually appreciate the best in these areas.

Never buy the biggest house in the neighborhood. This homes value will appreciate the slowest.

Cul-de-sacs are very sought after, hardly no traffic. Great for kids.

Meet the neighbors before you commit. Drive through the neighborhood on a Fri and Sat night, never know what's going on. Also don't get a home with rentals near it. Rentals draw out the worst kind of people. I hate neighbors, so I bought a house with 2 acres, then bought 6 acres behind me. No neighbors now!

Lawn work. This one kills me...:). I mow 2 acres of land out of 8. 4 hours on a riding lawn mower. Now I pay 120 bucks a month to some kids to mow it. Get a Condo if you can't stand lawns or outside maintenance.

Don't get to big of a house to keep up. I am single and have 2200 sq feet of mainly carpet(off white) and a big basement. I am to the point of paying someone to clean for me. Between work and trying to find my future ex-wife, I have no time.

If you are going to live inside the city. Make sure you can get access to a highway easily. People look for this when buying a home incase they have a commute. Plus you can just get around easier.

Hope this helped some.

[Trinitis]

Between work and trying to find my future ex-wife, I have no time.

:lol:

[Latrinsorm]

Central air is an Extraordinarily Good Thing. So sayeth the Lugger of Window-Mounted Air Conditioners. If you're going to have kids, a decent lawn is really really good to have.

[Chyrain]

talk to the neighbors! Ask them if there are any trouble folks around the 'hood who might just drive you absolutely nuts. Also, ask them about the previous owners. Sometimes when houses are being sold, they look all cleaned up and nice. But if it isn't typically cleaned up and nice, you might expect that they didn't take care of proper maintenance.

Also -

I have a friend who bought a home with a hair salon in it because she's wanted her own salon. Turns out the previous owner ran a whore house out of that place. When she and her husband were rennovating the basement, they found a hole in the wall stacked with crack pipes, drugs and old needles. The house looked clean when they got it...

Anyway, the worst part is that her salon is open and these random guys will still come in, she'll cut their hair then they'll ask her how much they owe her for "extras." You never know!

[Shari]

HO-LY SHIT. Okay, makes me realize that my neighbors aren't that bad after hearing what Chyrain said.

Anyway, I can't really add much else from what everyone else has suggested. I know that you live in Nevada and pretty much all housing communities there are similar to ones in AZ.

CHECK OUT YOUR NEIGHBORS. I know this sounds like a hassle, but seriously drive through there over the weekend when everyone is home. We neglected to do that and we have a mexican family that lives across the street with 7 people living in it that is actually designed for 5 people max to live in. To top that off they blare the music during the weeknight until all hours (yes I've called the cops cause my boyfriend and I work and I'm a bitch like that) AND there are ALWAYS like 6 cars parked out there. So bad, infact that they spill over onto our side of the street and make backing out a total nightmare with their huge U-haul appliances van parked out there.

With that being said, does it have a Home owners Association? Some of those can be a total nightmare being expensive/strict/annoying. Though if OUR neighborhood had one, we wouldn't have 6 cars congesting the street. Check and see what they all include if you have one, do they allow satellites to be put up? Can you keep your cars parked in your driveway overnight? Are you only allowed to plant certain vegitation in your front yard?

And if its an older house, does it already have landscaping or is it barren? I thought it would be nice to have a clean slate with dirt in the front and back yard because I wanted to landscape myself. THIS IS EXPENSIVE. We've been moved in for about 8 months and we still have dirt in the front and back. :(

Buying your first house is an AMAZING experience, and being the GS barbie you are, decorating your house will be even MORE fun. Good luck and make sure to post pictures once you close on it!

[PeaceDisturbance]

Ya, landscaping... You wouldn't think a tree would cost so much! I was wanting to buy like 30 medium size trees. Around 6 foot tall. Not even going to tell you how much...::groan:: I will get the small ones now, where half die the first year.

[Shari]

Screw the trees...I was telling my boyfriend, "Yeah 1 ton of granite would be enough for the backyard, right?"

I think he laughed heartily for the next 10 minutes.

[Wezas]

It's going to take alot more then a bunch of our $0.02 donations to buy a house.
:yes:

[HarmNone]

Spun, can you give us a better idea of what kind of house you're looking for? How old? How many bedrooms? One or two story (or more)? City, suburbs, or sticks?

HarmNone thinks there are different things one looks for depending on the particulars

[SpunGirl]

Sure. The houses we've been looking at are mostly condos. The condo market in Vegas, according to those in the know, is thisclose to exploding. Also, for the payment we're wanting to make and the area we want to live in, we're not going to get into a house that doesn't have, like, a missing roof or something. We decided that the location was the most important thing, being that the school Jake teaches at is very close, the area is nice (Green Valley/Henderson) and we're comfortable here. In other words, a smaller house in a nicer area over a bigger house in a scary area.

We're looking for 1100-1600 square feet, 2-3 bedrooms, 2-2 1/2 baths. We've looked at a few older places (older in Vegas is anything built after 1990).

Anway, I so appreciate all the advice, and Chyrain, your friend's experience made me laugh in a sympathetic fashion. That must suck! Keep it coming, and I'll keep y'all updated.

-K

[HarmNone]

When buying a condo, making sure the condo has not been a rental is important. Also, how well insulated and sound-proofed is it? Is there someone above you who'll drive you nuts stomping around at 3am? How about those on either side of you? If you can get an end unit, that eliminates one source of irritation. When were the appliances last replaced? Flush all toilets, turn on all water, push all buttons and operate all equipment to make sure it works. Look carefully at all windows to be sure they close/seal well.

HarmNone

[PeaceDisturbance]

Find out all the rules. The association can be a bunch of a**holes. Perfect example here. I use to help rent out one for my father. They added a rule where you couldn't have a pet over 20lbs, so we was forced to evict a renter. These renters had a big dog, they kept the condo in perfect condition though. Always picked up after it when walking it. Not a couple of deadbeats. Hell, they had to do a interveiw and approve anyone we rented to! Finally we said screw it, sold the condo. Just bought into 2 soon to built condos in Daytona(2 years from now). But they can be a hassle if you get some uptight group controlling the association. Be very very careful. They can ruin your property value and happiness.

Make sure you are locked into the association fee if possible. They like to try and raise it.

Get a gated community. Usually people in these are quiter and more respectfull of someones privacy. Plus no door to door sales.

But the best thing about condos is no lawn work!

Hope you enjoy your new home.

[SpunGirl]

That's lame that they evicted someone, they should have been grandfathered in to the pet rule. I want to know what all the rules are too, like the guy was explaining how what our insurance would cover, what the association was responsible for, etc. I mean, what if we want to tear down a wall or tear up a floor or something?

-K

[Jorddyn]

Originally posted by SpunGirl
That's lame that they evicted someone, they should have been grandfathered in to the pet rule. I want to know what all the rules are too, like the guy was explaining how what our insurance would cover, what the association was responsible for, etc. I mean, what if we want to tear down a wall or tear up a floor or something?

-K

In my condo, I am responsible for everything above the subfloor and everyting inside my walls. That means that they are responsible for the wiring/plumbing in the outer and shared walls, but I am responsible for the plumbing/wiring that runs through the walls that are mine alone.

It also means that I can tear down the wall between my bedrooms if I want. I can redo anything, so long as I leave the border walls instact.

I'm guessing that every place can be different, though, so make sure to read the fine print.

Oh! And because I'm not responsible for the building itself, just my walls and my contents, my homeowners insurance is insanely cheap ($220 last year).

Jorddyn, :heart: my condo

[SpunGirl]

Wowza. $220 a year for homeowner's insurance IS cheap. I love that. The one we're looking at seriously right now has solid granite countertops and oak cabinets in the kitchen, and the kitchen floors and bathrooms are all ceramic tile. What's weird is that there's a "warranty" program you can purchase on the appliances for $400. For a $45 deductible, they'll fix anything that goes wrong with the appliances or replace it. I don't get it. The agent told us that the appliances come with the home, so does that mean we don't own those? If we don't purchase the warranty and they won't fix them, does that mean we DO own them? That's something we have to ask him about, we're going back to look again tomorrow morning.

Another nice thing about this place is that it's on the third floor of a three-story unit, so no flood insurance necessary. No noisy upstairs neighbors, either.

-K

[Suppa Hobbit Mage]

It floods in LV?

[HarmNone]

If the appliances come with the home, and you purchase the home, you also own the appliances. Also, if you're living on the top floor, insulation will become even more important. Heat rises. ;)

HarmNone

[Jazuela]

Originally posted by SpunGirl
Wowza. $220 a year for homeowner's insurance IS cheap. I love that. The one we're looking at seriously right now has solid granite countertops and oak cabinets in the kitchen, and the kitchen floors and bathrooms are all ceramic tile. What's weird is that there's a "warranty" program you can purchase on the appliances for $400. For a $45 deductible, they'll fix anything that goes wrong with the appliances or replace it. I don't get it. The agent told us that the appliances come with the home, so does that mean we don't own those? If we don't purchase the warranty and they won't fix them, does that mean we DO own them? That's something we have to ask him about, we're going back to look again tomorrow morning.

Another nice thing about this place is that it's on the third floor of a three-story unit, so no flood insurance necessary. No noisy upstairs neighbors, either.

-K

1) If they're new appliances then the warranty they originally come with probably isn't expired yet, and you don't need double coverage.

2) Most appliances such as ovens and refrigerators are made durable enough that paying for a warranty isn't worth the money.

3) Washers and driers can be inexpensive enough to replace that it isn't worth $400 to buy a seperate warranty on them. You can get an apartment-designed stacked washer/drier unit for around $600, brand new, that comes with its OWN warranty that doesn't cost extra.

4) Consider the age of the appliances, and whether or not they're a brand name or something obscure or "elite" enough that paying for the repairs yourself would be too expensive, if they needed them.

Chances are, you won't ever see $400 worth of damage to ALL your appliances, combined, in any given year.

5) When they say they'll repair or replace, read the fine print VERY carefully. The warranty might state that "repair" means "anything that 5 inches of duct tape can cure until it breaks again next month." They might repair you into a monthly $45-deductible debt. Warranties are really good at that. If it can be repaired to THEIR satisfaction - not yours - then they will not replace the item.

[Jorddyn]

Originally posted by HarmNone
If the appliances come with the home, and you purchase the home, you also own the appliances. Also, if you're living on the top floor, insulation will become even more important. Heat rises. ;)

HarmNone

The major benefit I've noticed of living on an upper floor is exactly that. I can sap the heat out of my lower neighbors' places, and keep mine turned down :)

I love my winter utility bills... around $22.

Jorddyn, mean

[Shari]

Someone please slap Jorddyn? Kthx.

When I lived in a townhome (condo, whatever you wanna call it) our HOA was 90 dollars A FUCKING MONTH. We were responsible for only our little 15x8 foot patio thing but the grass outside of that was usually dry and/or dead, there was always debris on the ground due to the very large ucaliptus (I killed that, didn't I?) trees next to us, and they would NEVER clean off the pine neeldes on the roof and just let them collect and hang over in these massive bunches from the roof. (Fire hazard anyone?)

And THEN, when the tree outside died, it took them a YEAR to replace it, and in my frustration I actually thought to do them a favor and plant my own tree with my own money out there. It was the EXACT same species as the one in the back of the house and I ended up getting a notice to remove it.

So I petitioned to allow them to plant the tree....and was shot down. My only comfort was in knowing that 80% of the people living in the area were over 70 years old and were going to die soon.

:devilsmile:

[Jorddyn]

Originally posted by Jesae
Someone please slap Jorddyn? Kthx.

When I lived in a townhome (condo, whatever you wanna call it) our HOA was 90 dollars A FUCKING MONTH.

You don't have to smack me :( I have to pay association dues, too. But, since I don't have to tend to anything outside (no snow removal, no grass cutting, no maintenance on windows, deck, or siding), I consider it a small price to pay.

If I really wanted to get smacked, I'd mention my house payment. But I'm going out tonight and don't want the bruise :saint:

Jorddyn, it pays to live in Iowa sometimes

[Shari]

Oh, THAT'S why...Iowa. <snickers>

[PeaceDisturbance]

>So I petitioned to allow them to plant the tree....and was shot down. My only comfort was in knowing that 80% of the people living in the area were over 70 years old and were going to die soon.<

Sounds like FLorida.

As for grandfathering in our renters, they refused.

[SpunGirl]

We went and looked at the place again today and I got the question on the appliances thing answered. Also, the association fee is $122 a month, but that covers our water, sewer, and trash, plus the insured outside of the building.

It also (did I mention this?) has granite countertops, solid oak cabinets, and tiled walls in the showers (no fiberglass crap). The appliances we get are the washer and dryer (full size in the closet w/ hookups, yay), fridge, gas stove, dishwasher... the warranty thing also covers if anything goes wrong with the hot water heater and AC unit, too. It's something the real estate agent sells with all the houses he lists, but I'm not sure yet if we're going to take advantage of it.

Yes, Tay, it floods in Vegas. Big time. This time last year there was a huge rainstorm, it only rained for like 2 hours but it was a shitload of rain. A firetruck that went down a flooded street to rescue a guy in a car got stuck and the firemen had to be plucked off the top of the truck by a helicopter. People returned to their houses and had two feet of mud and silt left behind with snakes squiggling around in the mud, and all their stuff was ruined. Kind of sad.

Anyway, I think we might make an offer on this place Monday.

-K

[Caramia]

Buy a loft. Join the local Neighborhood Association. Invite the neighborhood kids over for fresh chocolate chip cookies. Make sure the walls aren't too thin.

[Valthissa]

my penny and a half:

homeowners associations are run by people with nothing better to do than spend their lives trying to get other people to obey a series a rules designed to keep the community up to their 'standards' - which can be redefined at any time.

(don't even get me started on gated communities)

fees are certain to go in one direction (up)

if you are the kind of people that enjoy meetings that discuss whether the entrance way needs a new sign or a new flower bed...jump right in.

the prevailing split at my workplace is about 50-50 between people that love their associations and people that hate them.

granite and tile are nice....and there is nothing like cooking with gas...

C/Valth

[Myshel]

Sorry I read this kind of late, but here are my 2 cents. Location location location is the most important. Find the neighborhood you want to live in first, then find the worse house in area. Most people only stay in a home for 5 years, then turn it over. Your home will be your biggest investment, don't be someone's elses profit. Your young, no kids yet so find the dump and make it over and sell it for a profit to turn into your dream home in 10/15 years. Make HGTV your friend. As long as the home is structurally sound, you can make some major money renovating cometics.
Real Estate Agents can be your friend. Sign a agreement to have one WORK for you, as a single agent. When your dealing with a transactional agent they are working for the highest commission. When you work with the listing agent they are working for the sellers. So look around for a good agent that has a relationship with you to look at for your best interest. To find a good one interview them just like you were hiring them to work for you.. duh.. thats what they will be doing. Go to a busy office in the area you want to live in and interview a few agents in that office (the agents that sell the most are not nessessarily the one you want) but the one that you click with. Might be the young guy that is hungry and will work the hardest for you. BUT you do want someone who knows your area well and is knowledgeble. Your business is valueble because your already qualified.
Houses with property will have the best resale.
Rental property is not a bad way to start out, duplexes (or more) will help pay a larger mortgage (more bang for your buck).
Condo's will sap your buying power because of association fee's.

All that said my advise to young people is nice and pretty is good but make a plan for the long term, 5 years, 10 years (I call this the child bearing years) and 15 years, 20 years of where you want to be. You can get that pretty little condo now that you will out grow when you start having kids or plan ahead to turn your first dump into a cute little house and flip for a bigger dump to fix up to finally in 15 or 20 years have the dream house we all want.

Have YOUR agent find you a certified home inspector,(worth the couple of hundred bucks) to check out anything you buy for hidden defects, make your contract contigent on what he or she finds. Go over your home disclosure statement with a fine pick comb.
When you make your contract, put everything on the actual contract that they say stays, washer/dryer/frig/candelier in foyer/stove/window treatments/whatever they say will stay that can be detached in some way should be there.


Any Q's just let me know.

[Ardwen]

Ya know dear I read that as find the whore house in the area, not find the worst, eesh I need more coffee!


Ardwen