The Homeownership Thread

Lieutenant Dan

Lieutenant Dan

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I'm in the earliest stages of buying a home; I haven't gotten pre-approved for a mortgage or selected an agent. I'm sure there is some knowledge about homeownership out there in the CAG community, so let's share the wealth!

Any good homebuying/maintaining tips out there? Things to look for/avoid with houses, agents, or mortgages?

One specific question: what type of heating system is best? I know it's relative, and it's partially preference, but which heating system is the cheapest long-term?
 
[quote name='Lieutenant Dan']One specific question: what type of heating system is best? I know it's relative, and it's partially preference, but which heating system is the cheapest long-term?[/quote]

Solar.
 
[quote name='fatherofcaitlyn']Solar.[/quote]
Good to keep in mind for an upgrade at a later date.

I was thinking more along the lines of electric/gas/heat pump/etc. Things we would find in our house search.
 
[quote name='keithp']Best tip you'll get: Make sure you get a GOOD home inspection before buying.[/quote]

We had our home inspected and the guy missed a bunch of stuff, including wiring that wasn't up to code, a slice in the rubber roof of our garage, and a wood burning stove that was hooked up to the oil furnace. Don't let the bank or the seller pick the inspector (they will go for the lowest priced one).
 
[quote name='jbroush99']We had our home inspected and the guy missed a bunch of stuff, including wiring that wasn't up to code, a slice in the rubber roof of our garage, and a wood burning stove that was hooked up to the oil furnace. Don't let the bank or the seller pick the inspector (they will go for the lowest priced one).[/QUOTE]

Ouch. Yeah, make sure the inspector is a member of ASHI, the American Society of Home Inspectors.
 
Is this your first home purchase?

If so, look at houses for at least 2 months. Don't jump on the first house that is in your price range or is somewhat what you are looking for.

Don't let anyone pressure you into buying any home...."well we have to move fast because this house has 3 other pending offers." Regardless of the housing market conditions, there is ALWAYS another house just around the corner that is for sale.

Never get into a bidding war.....no house is worth getting into a bidding war over, even if we weren't in a horrible housing market.

When you find a house you like, write down the things you like about it, the things you don't like about it, and how flexible the layout is for things you would like to do in the future (expansions, home theater, gym, stripper pole etc ;) ). After you have done this, then go back and look at the house again a few days later and see if you still think the same way about it.

Don't ignore "the little things." What you may disregard as a "little thing" that you don't like about a house at first glance is going to be something that you may have to deal with for years and years. Will it still be a little thing when you are looking at it or dealing with it everyday?

As already mentioned, get a good inspection and follow the inspector around the house and have him explain everything he is seeing.

Any major applicances, including the water heater, AC and heater, that are over 7 years old should be viewed as needing replaced IMO. Sure some of these items may last 10+ years but it is better to play it safe by knowing from the start how old everything is and when these applicances are nearing the end of their average lifecycle.

If the houses you are looking at are in an HOA.....READ THE HOA GUIDELINES before you commit to buying the house. Yes, it will be 100+ pages of crap but some HOA's are insanely strict and very anal about the smallest aspects of your home and how it must look at all times.
 
Good advice all around.

We had our home inspected and the guy missed a bunch of stuff, including wiring that wasn't up to code, a slice in the rubber roof of our garage, and a wood burning stove that was hooked up to the oil furnace. Don't let the bank or the seller pick the inspector (they will go for the lowest priced one).
Click to expand...

Who normally selects the inspector? Who normally pays for the inspector?

Is this your first home purchase?

If so, look at houses for at least 2 months. Don't jump on the first house that is in your price range or is somewhat what you are looking for.
Click to expand...

Yes, this is our first home purchase. We're not planning to buy until after the holidays, so we've got some time to be picky.

Another issue, *without getting into a "don't do it until you're married" debate*, my fiance and I (who have been together 5+ years) were wondering what financing hurdles/considerations we will face since we are not yet married. Unlikely many CAGs will have experienced this, but just throwing it out there!

Keep the good advice/discussion going!
 
[quote name='Lieutenant Dan']
Another issue, *without getting into a "don't do it until you're married" debate*, my fiance and I (who have been together 5+ years) were wondering what financing hurdles/considerations we will face since we are not yet married. Unlikely many CAGs will have experienced this, but just throwing it out there!

Keep the good advice/discussion going![/QUOTE]


Shouldn't be an issue. My first house was bought with my then GF. We were both named as the legal owners of the house, I was the primary on the mortgage and she was the co-applicant. It wasn't a problem for us.

If your credit scores are drastically different then that may be another story though. Assuming you both have good FICO scores, who ever makes the most and has the lowest debt to income ratio should be the primary.
 
Don't be afraid of taking a hard stance on your offer (depending on the areas houseing market)....for example with my house I new the buyer HAD to sell and sell quick from just doing a little research on the internets and Iwrote my offer $20.000 , Yes twenty thousand !!!! Less the the standing offer on the agents listing and the damm bastard took it .....plus I got a extra five grand knocked off when I made a stink after the home inspecters repoprt came back with a out of code wiring job in the attic .....schmuk ! , but anyway be firm , be confident, and you wil be happy with you new house.
 
[quote name='Lieutenant Dan']Good to keep in mind for an upgrade at a later date.

I was thinking more along the lines of electric/gas/heat pump/etc. Things we would find in our house search.[/quote]

Why not upgrade now? In some states, the government foots half the bill. In others, you don't pay taxes on the improvement. In all states, it gives you a chance to replace a crappy roof on an otherwise good house. Finally, you're locking in utility rates for forty years and give your house a huge bonus for reselling it in a few years.
 
[quote name='Lieutenant Dan']Who normally selects the inspector? Who normally pays for the inspector?
[/quote]Generally you do on both counts. Make sure that above and beyond a general home inspection (if it doesn't include them), get a pest inspection (termites, carpenter ants, etc) and radon. Cost me $450 for the lot of it. Your purchase contract should always be pending inspection results - in our case, we required the seller to treat for carpenter ants which was thankfully warranted for 90 days, because we had to have them come out again after we moved in.

Pay more attention to the layout of the house rather than the decorating as you look around. Wallpaper can be removed, paint can be applied. Don't let your agent, girlfriend, or whoever to pressure you through things. My wife and I started looking at about this time last year, didn't end up putting an offer in (on the first house we had looked at) until March after checking out about two dozen homes - no rush then, and the housing market hasn't exactly improved in the last 6 months.
 
I don't remember if the realtor or the seller picked the home inspector, but I know we didn't because we had it written in the deal that they paid for the inspection. I didn't know there were so many different home inspectors and didn't expect to get a complete dumbass. I found the paperwork recently from his report and he didn't even go on the roof to inspect it, just looked from ground level.

When we had the inspection done, the price was $275, which I can see was too low.

On a side but similar note: My parents were considering buying a different house and had a home inspection done. They didn't buy that house because the home inspector went on the roof and fell through a part that had rotted out.
 
I have a few questions and I a hoping someone can help me out.

I have been looking at a condo that has been on the market for more than 100 days. It is pre-forclosure and it is listed at 89,000. Is it better to do a 5 year 5.125% (that will be paid off in the 5 years) or is it better to go with a cash offer? How much do you think I can knock off of the asking price of each?
 
I will have to keep an eye on this thread since my wife and I are looking to purchase a home soon. It is so friggen tough here in NJ, the housing market is insane. If you want to live in any sort of remotely nice area you are looking to pay 250,000 minimum. We have worked hard to save a lot of cash and we are still having trouble finding homes in our price range.

As to the OP, I know that electric heat is by far the most expensive, especially if you live in an area where you will need to actually turn it on more than a few times a year.
 
[quote name='slowdive21']I have a few questions and I a hoping someone can help me out.

I have been looking at a condo that has been on the market for more than 100 days. It is pre-forclosure and it is listed at 89,000. Is it better to do a 5 year 5.125% (that will be paid off in the 5 years) or is it better to go with a cash offer? How much do you think I can knock off of the asking price of each?[/quote]

As general advice, you don't want to overextend yourself by doing a cash offer. If you have the excess cash, go for it. Otherwise, you should finance it so you don't end up delaying other major purchases. Keep in mind, (at least where I live) you can write off the interest portion of your mortgage payment on your taxes.
 
good thread.
My situation is thus: I'm renting a house that has been foreclosed and is now in the redemption period. I'm trying to negotiate a short sale with the owner but he's about $100k over the value of the house in the present market. He's already got about $20k in rent out of me and he never bothered to pay his mortgage with any of it.

If you're wanting to buy on the cheap, foreclosures are pretty rampant right now, on the other hand a lot of times you have to buy them sight unseen and the owners will take out anything of value in the house up to, and including, kitchen cabinets, appliances, copper wiring, garage door openers, etc...
 
[quote name='fatherofcaitlyn']Why not upgrade now? In some states, the government foots half the bill. In others, you don't pay taxes on the improvement. In all states, it gives you a chance to replace a crappy roof on an otherwise good house. Finally, you're locking in utility rates for forty years and give your house a huge bonus for reselling it in a few years.[/quote]

Good information in there. As a result, I quickly looked into solar. I live in Pennsylvania, and this map shows PA is the 7th worst place for solar, based on a number of factors: http://www.findsolar.com/Content/SolarPowerRating.aspx

I will keep my eye on any additional favorable solar legislation, though.
 
[quote name='Lieutenant Dan']Awesome. Where are you going to be buying a home?[/QUOTE]

Outside Atlanta.

This is one that I believe is a 1-owner (bulit 1971) and has been thoroughly renovated. Very nice inside. A few cosmetic things, but it looks like brand new roof, new s/s appliances, new pergo/hw floors, new carpet...

A very nice first home.
 
[quote name='Lieutenant Dan']Who normally selects the inspector? Who normally pays for the inspector?[/quote]
The home buyer normally selects and pays for the home inspector.

[quote name='slowdive21']I have a few questions and I a hoping someone can help me out.

I have been looking at a condo that has been on the market for more than 100 days. It is pre-forclosure and it is listed at 89,000. Is it better to do a 5 year 5.125% (that will be paid off in the 5 years) or is it better to go with a cash offer? How much do you think I can knock off of the asking price of each?[/quote]

Talk to a trusted appraiser about a value check for the home (it should be free) to get his opinion on the current value of the property. After that, I would knock off at least 10% of the value because of the dropping home prices. Be aware, as Nasum already stated, that homeowners going through short sales and REO properties will often gut the property for extra income (missing cabinets, appliances, copper wiring, etc).

EDIT: Congrats CocheseUGA!
 
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