Buying a House

[dbattman 0]

Not wanting to get involved in financial planning here, but as they say- location, location, location. Wow- student buying a house. Tough call. If it's a longer term degree it could work out well for you. If you find a don't wanter or the 'three d's' (death, divorce, or despair) it could work our well for you.

First question- are you willing and able to take on two or possibly three other students or roomies to help pay the bills? Give that alot of though as it could be either a blessing or a curse.

Next thoughts:

- No one is your friend.
- The seller's situation is not your fault or your responsibility. Do not allow their problems to become your problems.
- Shop around, shop around, shop around.
- Get as much as you possibly can from everyone involved. The brokers, the agents, the sellers.
- You will never get anything unless you demand it (note I did not say ask).
- You will have 100% of your offers rejected if you don't make them.

and the last thought,

- They WILL do it to you first if they can.

If you want to go ahead with this you should consider getting an attorney to watch your interests. Get an attorney, get an attorney, get an attorney.

Or at the very least a good, knowledgeable, short, red haired cast iron real estate paralegal that knows her stuff and can hold your hand. Preferably one with a little green crab tattoo. It can be very easy to overlook something or not completely read the forms that are sent through five fax machines before you even see them. Probably won't cost you much. Want to make that back? One little checkbox or form entry on the contracts can leave you holding a big bag if you miss it.

[karenmeal 0]

I would buy the house with my boyfriend. He is in the construction industry, so could handle a lot of repairs and work around the house, maybe even improve the value a bit.

We would not get a house if the mortgage cost more than what we currently spend on rent.

Frankly, I don't know if anyone would even lend to us, but it couldn't hurt to look into it. It sure would be great to live in our own house while I'm getting my master's, sell it when I finish and take that money and go move someplace where we want to settle down.

Here is the other piece of the puzzle... it is likely that I am going to have to take out some student loans. However, if I go to a certain school the loans will probably not top $15,000, waaay less if I get a fellowship or TA position. I'm figuring that if I will need to take out some loans anyways for basic living expenses (like rent) why not take out the same amount of student loans and then invest them?

I can't tell if that has the potential to be a smart idea or if it is incredibly stupid.

We certainly would not rush into anything.

"Life is a temporary victory over the causes which induce death." - Sylvester Graham

[dbattman 0]

Let the federal government (and hence the taxpayers) invest in your higher education. They'll make it back many times over when you start earning more and paying more in taxes.

Stafford loans- a good place to start.

[LisaM 0]

We have only put some new rose bushes into our house. But then again the house was only 5 years old when we bought it.

~ Lisa
~ Do you Rigminder?

[jumper03 0]

Just read this thread - I'm happy to stay in my RV a while longer

Scars remind us that the past is real

[Beerlight 0]

Question for ya.

I'm buying a house, but needs a new roof. Since the seller has come off really well on his top price, I was thinking of splitting the roof replacement cost 50/50.

Would it be more advantageous to:

a) Escrow the money at closing and pay for a new roof out of escrow or,

b) Just have the seller reduce the price of the house equal to 50% of the cost of the new roof?

or do you have any other suggestions?

My realtor said to escrow the money, but I think she's trying to screw me somehow

Thanks for any words of wisdom!!

[eeneR 1]

If you take it off the purchase price of the house it will actually lower the commission she gets. 3% of 15k (est half roof) is about $450 not in her pocket.

Granted these are estimates and prices could be different, but lowering the price of the house can in fact lower there commission. Now having said this, there might be some other reason I am not aware of.

She is not a "Dumb Blonde" - She is a "Light-Haired Detour Off The Information Superhighway."
eeneR
TF#72, FB#4130, Incauto

[PhreeZone 15]

Are you doing the roofing yourself or contracting out?

Yesterday is history
And tomorrow is a mystery

Parachutemanuals.com

[Beerlight 0]

Quote

If you take it off the purchase price of the house it will actually lower the commission she gets. 3% of 15k (est half roof) is about $450 not in her pocket.

Granted these are estimates and prices could be different, but lowering the price of the house can in fact lower there commission. Now having said this, there might be some other reason I am not aware of.

That's what I was thinking. It would lower her "profit" from the sale and thats why she brought up this escrow talk...... hmmmm....

[Beerlight 0]

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Are you doing the roofing yourself or contracting out?

definitely contracting out. It's a bigger project than I could attempt.....or want to!

[Beerlight 0]

I may have the house for 3 years before I sell.......and I was thinking I would put a new roof on just before I sell it......

[ACMESkydiver 0]

Quote

Question for ya.

I'm buying a house, but needs a new roof. Since the seller has come off really well on his top price, I was thinking of splitting the roof replacement cost 50/50.

Would it be more advantageous to:

a) Escrow the money at closing and pay for a new roof out of escrow or,

b) Just have the seller reduce the price of the house equal to 50% of the cost of the new roof?

or do you have any other suggestions?

My realtor said to escrow the money, but I think she's trying to screw me somehow

Thanks for any words of wisdom!!

Good question...depends on how you're going to pay for the new roof, and when.

If you don't have all of the money to pay for the new roof and you need it asap, held in escrow is better.

If you will have all the money, prefer to make other arrangements (Most people take out a second mortgage/line of credit) to pay for the roof and you don't need it immediately, have the seller come down on the asking price.

No need to pay interest and hold a higher mortgage for the roof if you've already got the cash or will have the cash when you're going to have it fixed.

PS...somebody above was talking about the higher selling price meaning the real estate agent gets paid more is right on, and further, so will the loan officer. Be careful, because neither person is going to want you to have a lower purchase price. That's not to say that they're shady because I obviously don't know who you're working with, but keep in mind that they're trying to feed their family, not yours...

~Jaye
Do not believe that possibly you can escape the reward of your action.

[Beerlight 0]

Thanks!

I asked my realtor today to ask the seller to come off their asking price and you could HEAR the wind knocked outta her!

I've got the cash but the roof isn't ready to be replaced just yet, maybe in a couple years.

Probably about the time I get ready to sell.

I've got to find an attorney to look over all the documents before closing. I feel like I'm getting ready for a royal fuckin on this.

[skymama 35]

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I feel like I'm getting ready for a royal fuckin on this.

It's a Buyer's market, there's no need to settle.

She is Da Man, and you better not mess with Da Man,
because she will lay some keepdown on you faster than, well, really fast. ~Billvon

[Beerlight 0]

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Quote

I feel like I'm getting ready for a royal fuckin on this.

It's a Buyer's market, there's no need to settle.

Yep it is. Houston evidently is still holding up well in the market though, and seems a lot of sellers aren't willing to negotiate as much as I would've wished.

It's wearing me out and I think my Re/Max realtor is bordering on incompetent.

[Programmer 0]

You keep using the phrase "my realtor". Start thinking in terms of "my money"..... "the realtor".

[Beerlight 0]

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You keep using the phrase "my realtor". Start thinking in terms of "my money"..... "the realtor".

I hear ya..... I don't know why I do that!

[wmw999 2,129]

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Houston evidently is still holding up well in the market though, and seems a lot of sellers aren't willing to negotiate as much as I would've wished.

Change the neighborhood. Plenty of houses for sale; a couple on my street just went back off the market because they didn't sell. Not a lot of desperate people yet (there are always tenants), but speaking as a homeowner, I'd sure rather have more homeowners than tenants around

Wendy W.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[ACMESkydiver 0]

Quote

Thanks!

I asked my realtor today to ask the seller to come off their asking price and you could HEAR the wind knocked outta her!

I've got the cash but the roof isn't ready to be replaced just yet, maybe in a couple years.

Probably about the time I get ready to sell.

I've got to find an attorney to look over all the documents before closing. I feel like I'm getting ready for a royal fuckin on this.

I could look at the loan docs...but I would be lost on the actual Real Estate deal.

If you want to fax the loan docs over to me I can point out the typical 'junk' fees, which are almost always negotiable...

Send me a PM if you might want me to see what I can see. I'd suggest photo copying your docs and whiting out your social security #'s/any other info you want to keep private just in case -I wouldn't want to be responsible for your private info...

As a matter of fact, if you want to just send me a PM with the list of fees and tell me whether they are listed as 'Paid by seller' or 'Paid outside of closing' and the $ amt, I can probably steer ya right.

~Jaye
Do not believe that possibly you can escape the reward of your action.

[Misternatural 0]

Kewl,
This is a subject I am familiar with...
My credentials; Home construction and inspection business for over 26 years, writing a book on the subject of home inspection.

>>"I would buy the house with my boyfriend. He is in the construction industry, so could handle a lot of repairs and work around the house, maybe even improve the value a bit."

Thats a big plus.
definitely get a home inspection in addition to his expertise- and read the fine print of the inspection agreement.

I could go on for 50 pages about nightmares and dream houses, but feel free to PM me with any inspection questions.

and just remember- EVERYTHING is negotiable until you sign on the line.

"Oh it's definitely a sellers market" *next phone call* "It's a buyers market Baby!"- TV realtor

Beware of the collateralizing and monetization of your desires.
D S #3.1415

[Beerlight 0]

Thanks everyone for all the great info!! ACME, when I get my hands on an estimate, I'll ship it your way. Much thanks!

[Beerlight 0]

Before I close on this house, everyone says, "Get an attorney" to check over everything.

Any particular type of attorney? One that specializes in real estate, or will any attorney know what to look for??

Thanks......

[Misternatural 0]

If Law doesn't mind, I could field this one as i deal with this stuff almost daily...

Many attorneys deal with a number of legal specialties in addition to real estate, they list their areas of expertise in the yellow pages so it's pretty easy to identify the real estate lawyers. In my experience a good attorney not only can decipher the legal paper work for you but will also explain any pitfalls you may encounter as you are presented with contracts, AND help with a civilized negotiation process when deficiencies are found by your home inspector.

Normally after the inspection the inspector will present you with a shopping list of defects and recommendations as to how they may be dealt with, HOWEVER, i always recommend that a client get two or three estimates for repairs from area contractors on paper. Even if the seller says that the house is to be sold "as is" there is always room for negotiation, BUT you have to pick your battles and be tactful about your approach or the seller may get frustrated and tell you to F@^% off.

If the realtor rolls their eyes when you want to whittle the price down due to repairs, thats normal- they work hard to forge these deals and they live on commissions, ignore that behavior and stick to your guns.
it could save you thousands of dollars!

Buying a house is the biggest poker game of your life, if you play it smart you won't have buyers remorse after you move in, but a little extra cash in your stash.

Beware of the collateralizing and monetization of your desires.
D S #3.1415

[lawrocket 3]

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Even if the seller says that the house is to be sold "as is" there is always room for negotiation

Yes. If you are EVER told "this house is as is" then say, "Fine. Tell me what 'as is' means." In California, a seller MUST provide a Transfer Disclosure Statement under Civil Code section 1102(c). The fun part is, until the TDS is delivered, the buyer has no duty to do ANYTHING in California.

If a seller tells you to "fuck off" for asking him to disclose the material condition of the home, thank him and shake his hand for telling him the house is a piece of shit.

As far as attorneys, any attorney will do, so long as the attorney has malpractice coverage. Get it? If the attorney gives faulty advice, then you have recourse.

My wife is hotter than your wife.

[Misternatural 0]

<
True story, It is better to walk away from the deal if you are not fully satisfied with the repair negotiations- all you've lost is the cost of the inspection and your time. As I said its like the biggest poker game of your life, there will be a lot of bluffing as the negotiations heat up- keep in mind that realtors & sellers don't want you walk, so if you really want the place, take your time (within the confines of any contracts)and be polite but firm. Get everything on paper- If you play the game cool then you will get what you want with fewer problems down the road.

Remember you've got one shot at getting this right, once you close thats it! Thereafter you have to take people to court.

Beware of the collateralizing and monetization of your desires.
D S #3.1415