Home buying thread

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Wizarddeath_foh

shitlord
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Ok, so update on my side with a time line,

Offer put in on 2/3/11 for 115k(full asking price) with them to pay 5k in closing, the 4324$ sewer assessment and provide a 1 year warranty.
Seller agreed and signed on 2/11/11. Information provided to bank(per listing agent.)
3/14/11 We heard bank agreed to to take 115k for home, however would not do warranty, but would do closing cost and assessment. Found out 164$ was due to water company before we could even do a home inspection, as they wouldn"t turn on the water. Later that night, found out bank did not agree to assessment or closing cost, listing agent told our agent incorrect information. We decided we weren"t prepared to pay an extra 9k for the home, so told them to work it out.
3/16/11 Bank agreed to pay 3% in closing(3420$), provide home warranty(400$) and pay 1500 on assessment AND water bill. We had to pay water upfront however. We said No, we aren"t paying the 164$ as if something goes wrong, that is something we helped the bank with money out on.....
3/18/11 listing agent called bank, banked agreed to pay 164$ charge, and closing at 3% and warranty, now a "investor" how to approve the deal which could take up to 10 days.... However, we were told this time, we would get the actual offer letter, signed by the bank & seller, and once we sign we start out due diligence process!

Hard to imagine they would of let us walk away over 164$ dollars, or that the listing agent wouldn"t come out that money just to sell the house and get the commission. Now we are just waiting to hear back to get updated GFE and find a renter/buyer for our town home...

Thinking about just taking the 17k loss on my townhome, and selling it to the offer I got a few months ago, and take out a home equity on the new home to cover it, as paying the home equity off would be cheaper then a 750$ a month mortgage if I can"t find a renter. What do you guys think?
 
Cutlery

Cutlery

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Wizarddeath said:
Thinking about just taking the 17k loss on my townhome, and selling it to the offer I got a few months ago, and take out a home equity on the new home to cover it, as paying the home equity off would be cheaper then a 750$ a month mortgage if I can"t find a renter. What do you guys think?
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If you"re losing money on the townhome, how would you have enough equity in the new one to get a HELOC? You"re gonna need over 20% in the house (probably more like 35% with the numbers you"re talking about) in order to have anyone even talk to you about a HELOC, and if you"re losing money on the townhome, that says to me that you don"t have that kind of equity.
 
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Wizarddeath_foh

shitlord
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Well I"m not planning on taking the HELOC from my town home. From my understanding when I apply for the Home Equity Loan(don"t want a home equity credit, already have a credit card) they will appraise the home if I want/ask them to determine the new value.

I"m buying the new home at 115k with 3.5% down. I"m hoping that I can get by with putting 12-14k into it, and get it back to the former glory. I will then try and do a Home Equity loan on the new home to cover the loss from the sell of the town home. Based on my appraisal results from the town home, the new home should have no problem appraising for 164k, which would put me at around 30-32%.

If I"m understanding it correctly, I can barrow 80% of that equity, and in theory barrow almost 42k If I wanted to?
 
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Unidin_foh

shitlord
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Wizarddeath said:
Well I"m not planning on taking the HELOC from my town home. From my understanding when I apply for the Home Equity Loan(don"t want a home equity credit, already have a credit card) they will appraise the home if I want/ask them to determine the new value.

I"m buying the new home at 115k with 3.5% down. I"m hoping that I can get by with putting 12-14k into it, and get it back to the former glory. I will then try and do a Home Equity loan on the new home to cover the loss from the sell of the town home. Based on my appraisal results from the town home, the new home should have no problem appraising for 164k, which would put me at around 30-32%.

If I"m understanding it correctly, I can barrow 80% of that equity, and in theory barrow almost 42k If I wanted to?
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How high LTV you could go really depends on the market and the bank. For instance, my bank in Las Vegas will only go to 60% LTV on a HELOC or HEL. Banks doing HELOC and HELs are in second position, so they have to be more careful to avoid losing all thier money in a forclosure. I think you"re really overestimating what upgrading the house will get you on appraisal. You normally only get about 60% of what you put in.
 
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Wizarddeath_foh

shitlord
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Well hopefully the initial appraisal comes in around 130k, thats what I"m hoping for.

Just the land will appraise for 90k being the size/lot in the city, but I"m just going to wait and see for sure when I get my initial appraisal hopefully within a week or 2. I"m not thinking me putting in 12k will make the house worth 12k more, I"m thinking I"m returning a 164k (prior appraised and confirmed that amount) to how it looked when it was appraised/tax valued at 2 years ago type deal.
 
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Unidin_foh

shitlord
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Wizarddeath said:
Well hopefully the initial appraisal comes in around 130k, thats what I"m hoping for.

Just the land will appraise for 90k being the size/lot in the city, but I"m just going to wait and see for sure when I get my initial appraisal hopefully within a week or 2. I"m not thinking me putting in 12k will make the house worth 12k more, I"m thinking I"m returning a 164k (prior appraised and confirmed that amount) to how it looked when it was appraised/tax valued at 2 years ago type deal.
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Houses aren"t worth what they were two years ago. If you want to improve your house to make it more livable, go for it. If you"re doing it to increase the value it"s a waste of money.
 
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Wizarddeath_foh

shitlord
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Doing it to make it livable. Based on my appraisal I just got for my town home, houses are still tax value and appraised for what they are 2 years ago. Government is going to let their income drop, but they are selling/worth to consumers the price for 2 years ago. You can"t count short sales/forclosures against you in a appraisal situation so that keeps those mostly the same since many house sells recently are those types.
 
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Well, seems like you"ve got your mind made up, despite the facts that it"s pretty unlikely to pull something like this off in the current real estate market.

So, I guess you"re either gonna find a way to squeak through, or you"re gonna fail miserably, so good luck with that!
 
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Kaita_foh

shitlord
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I am closing on my first home this Friday. Buying it from a private seller and working with a local hometown bank. Being able to sit down and talk with the seller instead of dealing with an agent in the middle has been great.
 
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Tenks

Bronze Knight of the Realm
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Kaita said:
I am closing on my first home this Friday. Buying it from a private seller and working with a local hometown bank. Being able to sit down and talk with the seller instead of dealing with an agent in the middle has been great.
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And I close on my first home (next) Monday

I"m both really excited and really nervous at the same time
 
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Tenks said:
And I close on my first home (next) Monday

I"m both really excited and really nervous at the same time
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Yeah, it"s pretty awesome until you learn you"ve gotta fix all the shit that"s wrong with it.

Fuck compression joints, btw.
 
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Cutlery

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Tenks said:
It is a new build so I"m off the hook for a while
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Lol.

Ever watch Holmes on Homes? You"re definitely not off the hook because it was just built. Old, poorly maintained, or just shitty construction...it"s all shit that can be invisible to a couple hours of walkthroughs, and only becomes evident when you"re there for a few months and you"re standing in water you shouldn"t be.

I"m not saying it"s guaranteed to be shitty, but don"t think that new means better.
 
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Tenks

Bronze Knight of the Realm
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It isn"t a shady construction company. It is M/I homes which seems to have an extremely good reputation. My dad works with a shitload of builders and had nothing but good things to say about the company. The subdivision also has Dominion builds so those may blow over in the wind.
 
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Edko_foh

shitlord
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TheCutlery said:
Lol.

Ever watch Holmes on Homes? You"re definitely not off the hook because it was just built. Old, poorly maintained, or just shitty construction...it"s all shit that can be invisible to a couple hours of walkthroughs, and only becomes evident when you"re there for a few months and you"re standing in water you shouldn"t be.

I"m not saying it"s guaranteed to be shitty, but don"t think that new means better.
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Haha I watch HoH and Holmes Inspection. Those shows are unreal. Trouble is, shitty inspections are more the norm than not since most home buyers have no clue what to look for.
 
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Edko said:
Haha I watch HoH and Holmes Inspection. Those shows are unreal. Trouble is, shitty inspections are more the norm than not since most home buyers have no clue what to look for.
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My home inspected just fine. Then a few months later I"ve got water literally pouring down thru the wall into the basement. Improperly installed window? Check. Impossible to tell without removing the window? Check. Evident only when it rained a certain way.

The house can appear to be just fine, and even better than that, it can appear to be just fine in once season, and the problems only become evident in the opposite season. You really don"t and can"t know until you"ve lived there awhile and find out all the quirks and if your shit was subcontracted out to the lowest bidder or not.
 
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Sharmai_foh

shitlord
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@TheCutlery ... Um yes buying new does mean it"s better in the way you are talking (construction). Typically newly built homes come with the below warranty

Spoiler Alert, click show to read:One-year coverage.

The Builder warrants the construction of the home will conform to the tolerances for materials and workmanship, as defined n the Performance Standards, for a period of one year after the closing date.
?

Two-year coverage.
The Builder warrants the workability of the plumbing, electrical, heating, ventilating, air conditioning, and other mechanical systems, as defined in the Performance Standards, for a period of two years after the closing date.

Five-year coverage.
The Builder warrants against various types of water infiltration and internal leaks, as specifically defined in the Performance Standards, for a period of five years after the closing date.

Ten-year coverage.
The Builder warrants the construction of the home will conform to the tolerances set forth in the following Performance Standards for Structural Elements for a period
of ten years after the closing date, subject to the limitations set forth below. Structural Elements are footings, bearing walls, beams, girders, trusses, rafters, bearing columns, lintels, posts, structural fasteners, subfloors, and roof sheathing. Floating slabs and partition walls that do not carry any load other than their own weight are not Structural
Elements. A Structural Element will not be deemed defective, and no action will be required of the Builder, unless there is actual physical damage that diminishes the ability of the Structural Element to perform its load-bearing function such that the home is unsafe.

If this stuff fails early on it cost them a ton of overhead to have to come in and fix it. This is why you can be sure new homes are built better initially.



Now old homes do have many advantages over new homes. For example neighbored value, custom style homes, and lived in homes with custom modifications.

They also have a lot of negatives. For example unseen repair problems, major and minor repairs (think roof needs replacing and the like), appliances need replacement, massively energy inefficient (15-20 year or older), custom modifications (some people can"t wire for shit).
 
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Wizarddeath_foh

shitlord
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True,

I bought a new home and found out my back door"s frame wasn"t sealed properly, however it only happened with it poured rained. Happened twice, they repaired the frame, however they replaced my entire carpeting and carpet pad for the problem, under a new home warranty, a older home wouldn"t have that normally.

Also nothing back on my short sell, except we are "escalating" it with the investors.... February 3rd offer date and waiting..
 
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Cutlery

Kill All the White People
<Gold Donor>
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Sharmai said:
@TheCutlery ... Um yes buying new does mean it"s better in the way you are talking (construction). Typically newly built homes come with the below warranty

Spoiler Alert, click show to read:One-year coverage.

The Builder warrants the construction of the home will conform to the tolerances for materials and workmanship, as defined n the Performance Standards, for a period of one year after the closing date.
?

Two-year coverage.
The Builder warrants the workability of the plumbing, electrical, heating, ventilating, air conditioning, and other mechanical systems, as defined in the Performance Standards, for a period of two years after the closing date.

Five-year coverage.
The Builder warrants against various types of water infiltration and internal leaks, as specifically defined in the Performance Standards, for a period of five years after the closing date.

Ten-year coverage.
The Builder warrants the construction of the home will conform to the tolerances set forth in the following Performance Standards for Structural Elements for a period
of ten years after the closing date, subject to the limitations set forth below. Structural Elements are footings, bearing walls, beams, girders, trusses, rafters, bearing columns, lintels, posts, structural fasteners, subfloors, and roof sheathing. Floating slabs and partition walls that do not carry any load other than their own weight are not Structural
Elements. A Structural Element will not be deemed defective, and no action will be required of the Builder, unless there is actual physical damage that diminishes the ability of the Structural Element to perform its load-bearing function such that the home is unsafe.

If this stuff fails early on it cost them a ton of overhead to have to come in and fix it. This is why you can be sure new homes are built better initially.



Now old homes do have many advantages over new homes. For example neighbored value, custom style homes, and lived in homes with custom modifications.

They also have a lot of negatives. For example unseen repair problems, major and minor repairs (think roof needs replacing and the like), appliances need replacement, massively energy inefficient (15-20 year or older), custom modifications (some people can"t wire for shit).
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Like I said, you ever watched Holmes on Homes? Like a full half of those fucking shows are "We bought a new house, shit started going wrong, we called the builder and said he fixed it and then left the fucking country."

You"re not going to convince me that "new" means "properly built" with that show still on the air. And considering the fact that he literally rips up half of the fucking property on every show because it"s done so poorly means it"s a lot more common than you think. Whatever man, if buying new helps you sleep at night, good for you. But with the amount of dogshit work permeating every trade and walk of life these days, I don"t trust it any more than I would anything else.
 
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