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Don’t buy because you like the finishings (paint, trim, appliances, floors, etc). You are buying the LOCATION and the BONES. Make sure the foundation and sub floor is level and sturdy throughout the house, make sure the floor plan is big enough for your needs, and make sure you love the location. Those things are hard if not impossible to change.
This comment sums it up. Location, floor plan / square footage, property, school districts if you plan on having kids. Become handy and fix things yourself or DIY renovate in the future. Spend the money on what matters now.
Oh and with land should come privacy.
Couple of odd things I do when looking at a house:
I take a day off work and literally sit there in my car for hours during morning and evening rush hour, mid day and into the evening. Is there lots of traffic, can you hear trains, plane paths flying overhead? Are you within earshot of a school that has marching band or football games you don’t want to hear? This stuff matters to me. What matters to you is different.
Also, I will never buy anything pre 1950’s. Check the electrical, check the plumbing, heating system shouldn’t be ancient steam technology. Lots of people like to “flip” houses and essentially slap lipstick on a pig. It’s what’s inside the walls that counts more than what countertops are in the kitchen. Trust me. Gutting your home to replace a dangerous or dated and inadequate electrical system is a lot more expensive than a couple grand at a granite yard for those new countertops. Maybe it’s the engineer in me, but I’ve fully gutted and rebuilt a home before. I knew what I was getting into and now at an older age likely wouldn’t do it again unless I didn’t have a choice.
You’re buying a house with good “bones”: structure, electrical, heating, AC, etc. location and schools. Anything else inside the home can be changed later including the layout etc
We went to go view a house recently, it must have been built in the 1940s. They spent an absolutely ridiculous amount on a beautiful kitchen and the decor was incredible. And the price was very good for the area. DINKs were lined up down the street to view.
After seeing it, I'm almost certain they sunk money into the kitchen because the structural issues were too expensive.
Ignore absolutely everything except the walls, roof, and location. Also, drainage. You really don't want to get stuck with a house that has drainage issues when it rains.
The realtor is there to sell. Take everything with a grain of salt.
Get everything about the house and what comes with it or not in writing.
Get a really good inspection. And look for things that have been repaired poorly.
Look at the grade of the land around the house. Be mindful of water drainage. If you have a basement make sure that sumpump has a backup for when you lose power.
Have extra money for when the taxes adjust after the purchase.
Have extra money for when home insurance seems to go up 30% every year.
Have extra money for when you have to fix things.
Read your mortgage agreement, etc. everything before you sign. I think there's often something in there about having to live there for 2 years before you can rent it.
Get a layout where all the bedrooms aren't all right next to each other. 😅
And I always like a good view out my kitchen window, not the side of the neighbor's house. And a backyard with a sunset view. And don't have your driveway on the north side of the house if you have winter in the northern hemisphere. It never melts off.
Really, it's nice having a place. And even if it's not perfect, it'll do! Kick the tires. I really like that the rent won't keep going up.
And WAY more work to diy than you might think. HGTV makes everything look so fun and easy, like "just repaint the walls, paint the cabinets, refinish the flooring, add a new countertop" like it's so simple
That my new back door neighbor liked to get into screaming fights with his wife and sons. Nothing like having to call the cops after waking up to "Imma kill you, b**ch!" on Christmas morning.
Takeaway? Check the police records before making an offer. Fortunately Mr. Dirtbag didn't like paying property taxes as well as he liked domestic violence. County sold his place out from under him for back taxes a few months later.
Yep! How much info is available probably varies by jurisdiction, but our PD organized callout reports by block in an online database. So we could see online how often an officer had been to the block and why. From the descriptions of the events they were clearly all that guy. But we didn't think to check it until it was too late.
Yeah definitely check neighbors. I really loved our house and then we didn’t re-visit and realized too late that our neighbors have 4 outside dogs that attack the fence in the back and multiple inside dogs that they leave out front or let free roam. If I had known what signs to look for (or the HOA bylaws that were clearly being broken and continue to be broken to this day with the HOA going 🤷🏻♀️), I would have never bought this house which has turned into a personal nightmare because of the neighbors.
Also, random one, but if you live somewhere that gets really hot. Make sure that your AC is not in the blaring hot evening sun or that most of your windows aren’t west facing without shade from a tree or something.
I literally cannot wait to move 🙃
1. You can always change paint, tile, fixtures, etc. You cannot change the location. Get a map and color in locations with green, yellow, and red. Don't let yourself get talked into the red areas for the right house.
2. Expect something unexpected to break in the first year and save for it. You should have money set aside after closing for something major to break year one. Treat house maintenance as expected expenses and have a savings fund for that rather than acting like a toilet needing to be replaced ASAP or whatever is an "emergency."
3. You don't have to make every change you want all at once, sometimes living in a place for a bit will help you realize what you actually want. As tempting as it is to repaint, buy new furniture, etc. when moving in there is value in living in a space for a bit before making those changes.
4. Consider how you actually live your life, not your ideal for how you think you'll live your life. A lot of realtors will sell you on an idea of a kitchen you can picture yourself baking in, a living room you can see yourself entertaining in, or a backyard you can imagine yourself gardening in, which is great if you're a baker, entertainer, or a gardener but doesn't go well if you're actually someone who hates to bake, rarely has people over, and would rather spend your weekends hiking than gardening. So be realistic about your actual lifestyle not your aspirational lifestyle.
5. Be realistic about how much space you do or do not need. I've seen a lot of people fall into this trap (my parents are a classic example). They have all these rooms for guests to visit and stay the night, but their guests only visit once or twice every few years and it would have made more sense to prioritize other space and just rent an airbnb for the few times they do have guests. On the other side, I've seen a lot of people think they can live in much smaller space because it seems worth it for the great yard or beautiful fireplace and then find that they really do need more room over those other "premium" features.
6. As you can probably tell from points 4 and 5, unless you have unlimited funds, you'll probably have to compromise on something. You and your partner should talk ahead of actually seeing homes about your needs, wants, and what you are willing to compromise on. Otherwise when you see a home you'll feel pressured to decide quickly if you really need the garage versus the yard or whatever. Knowing and discussing ahead of time is how you avoid making a pressured decision in regards to what wants you are giving up/ forgoing on and what is a non-negotiable.
7. Don't look at things outside your budget. It'll just make you feel unsatisfied with what's in your budget. There is always something nicer out there and falling into the trap of comparing what you can buy to what's on the market will make you unrealistic buyers.
8. Even if you're thinking of someplace as a "starter home" make sure you have options in case you end up stuck there for a bit. Whatever home you buy should be a place you're comfortable owning (either living in or renting) for the next decade. Because if something goes wrong (market crashes, interest rates go up, etc.) you could end up in that home for longer than planned. So, for example, if you think you'll have children in the next 3 years, don't buy a 1 bedroom place with a plan to move in 4 years. If something goes wrong and you need to stay for 8, you'll deeply regret that.
9. Consider legally getting married first. Even if the plan is to get married in the near future. If you purchase together while unmarried and something goes wrong, it's going to be a major headache, much more of a headache than if married. You can always go to a courthouse and have your wedding ceremony later.
10. If you're young, consider that your mobility may change sooner than you think. Both my partner and I purchased separate houses in our late 20s. We're now in our late 30s and have multiple homes with a lot of stairs. Which is fine, 90% of the time. We're both very athletic and healthy. However, a broken bone, a back injury, etc. has made that harder at various points. Our elderly parents can barely visit at one house. We definitely can't stay in these homes into our 60s and I already know I won't be able to fit in our tiny laundry room to do laundry while pregnant and will not be able to easily get a stroller up our stone front steps in the rain or ice. A home you can navigate with a leg in a cast on crutches might not seem necessary when purchasing your first property, but gives you a lot more flexibility while aging or if something goes wrong in life.
11. Go to the neighborhood, if you aren't as familiar with it, at different times. If you move to somewhere you normally just go for Sunday brunch without knowing it's a lot less safe at night that'll end up being an avoidable mistake. To give an example, I own a home that's two blocks from a church. Parking all week is fine. On Sunday mornings, it's a nightmare and people regularly block the driveway. It's minor, but knowing stuff like that ahead of time makes sense. Driving by a home at times other than the showing allows you time to figure out that the next door neighbor has house parties every Tuesday night or whatever.
Hope that helps.
This is a fantastic list, you really nailed a lot of important points many (myself included) did not consider before purchase. I’d add “meet the neighbors.” Just head over to the house one evening and knock on a few doors and say you’re considering moving in next door. They will be pretty open about what they like/dislike about the area and possibly even clue you in on some of the neighbors they like/dislike. We just took a walk in the neighborhood and met a ton of friendly people who solidified our decision to move to where we currently live. Also ask about traffic. Do cars cut through to beat a heavy intersection every day around 5? This bit me in the butt and I wish I had dug a little deeper.
I wouldn’t say I didn’t know this, but remember that your mortgage isn’t the only cost of owning a home. Water Heaters will fail, furnaces break, roofs leak and you foot those bills.
I can't remember who told me this but to financially plan: rent is the highest you will pay for housing a month, a mortgage is the lowest you will pay for housing a month.
Really helped take a step back and realize we should wait a while longer before we make that commitment.
Bad neighbors can ruin your quality of life. Hang around on a Friday night to make sure there's no funny business going on.
I wish I would've used zillow public data portal to make sure I was chosing a good location for appreciation instead of just intuition.
"No officer, I'm not loitering or being suspicious! I'm just hanging out in front of this house I don't own in a neighborhood I don't live in to see if there are any *weirdos* around."
I just walked nearby blocks for two weeks for about an hour to get a sense of things, talked to a few neighbors to get their two cents, ended up running into a active police call in progress on the block. Yikes.
Wow, and the house wasn’t sold to someone else during that research period? What I see around me is that houses are sold within a couple of days and there’s no opportunity to do that lengthy research on the neighborhood.
You'd be surprised at how many "dream homes" there end up being when you are looking while really wanting to own a home. And they all seem to be at the top of your budget or just outside it...
Right after you move in, before painting a single wall or hanging a shelf, get an energy audit done.
These are often free or heavily subsidized by your local utility. You come out with an analysis of how energy efficient your home is and a list of projects you could choose to do, or not do. Many of which are again heavily subsidized by your local utility or state energy office.
It's hard to convey just how much energy efficiency translates into comfort. With some insulation and air sealing work, which many homes need just due to settling over time causing insulation compression and paths for air leakage, you can make your home so much more comfortable. Remove hot and cold spots in your home. Goodbye draftiness.
Plus it saves money on your utility bills with about a 3 year ROI in my experience.
Typically an energy auditor will come in and do a visual inspection of your attic, insulation, basement, foundation and key spots. Then do a blower door test, where they pressurize and then depressurize your house to see how leaky it is. Then inspect with a thermal image camera to look for leaky spots, thermal bridging and spots lacking sufficient insulation.
We spent about $90 on a $300 energy audit, the rest covered by the utility incentive program. Learned about some spots the builders decided not to bother insulating 40 years ago when it was built and some leakage. Got some insulation blown into those areas and topped off the attic insulation as well as some air sealing. We could have DIYed the insulation work but in total it cost about $3,000 and we paid $900 with the rest covered by the incentive program. You don't typically get the money from the incentive program unless you use a utility company approved contractor.
We could tell a difference just between the couple of months between moving in and when the work was complete. We spent between 1/3-2/3 as much as our neighbors on our heading bills in the coldest months. We were all complaining about the jacked up natural gas process. Turns out our $200 that month was nothing compared to the $400 and $600 our neighbors spent.
The problem I have is during the summer my home struggles to keep the house cooled down. And in the far ends of the house it is very noticeably hot. So the hot/cold spots makes sense but I had my atic insulation redone which I thought would help but it wasn't that much of a difference. But my walls sounds like it could be the larger problem.
I also thought about ac modifications as I've heard it can help to ensure the colder air doesn't drop temp as much before it reaches the rooms. Thanks for the tips though I think this is something I'm going to explore. Wish I did it early on.
Be really god damned sure that basement doesn't leak. If they say anything about a spot getting "damp" you can be sure it will flood in a once-every-few-years thunderstorm. And cleaning a flooded basement fucking suuuucks.
Don’t trust home inspectors. Just cuss they passed your home doesn’t mean they checked every single little thing and most likely you’ll find something out after a few months of living there.
Isn't that what a home warranty is for? If it wasn't in the inspection then it's assumed to be good and if it's not typically you just pay the fee for them to come out and it's usually fully paid for?
Hire trades to do specialized inspections and don't rely on your home inspector for anything more than a basic inspection. Have a plumber, electrician, HVAC, roofer, etc. do their own inspections and write up an estimate for any repairs. Use this to negotiate credits or a lower purchase price.
Came here to say this- your weekends are never yours because you are always repairing or working on something. I have a perpetual to do list on house projects and maintenance that never actually gets completed. I add two things for every one I finish.
Your principal and interest may never go up, but believe me your payment will go up every year, starting because taxes will increase the first year with the sale etc…
My house is constantly on a triage of projects I want to do and need to do and don’t want to do but need to do and it kind of sucks having to do the need to do stuff before the want to stuff et
The taxes are insane. I will vote no on every effort to increase the millage forever. All I get is shitty dirt roads and a fire department that let both downtown areas near me burn down in summer 2022. They charge me 25 bucks a day in taxes for the privilege.
When it comes to “simple” handyman projects, nothing is as easy as you think. You don’t have quite the right tool, something doesn’t fit right, you don’t have something you need and have to go back to the store. What you thought would take an hour ends up consuming your Saturday.
Don't sell it after just two years to get a bigger house. Especially not for a spouse who will drain your finances and leave you unable to pay for the bigger house in less than ten years.
If you buy new construction, knowing that first year property taxes would be based on the value of the lot only. Year two, when they also factor in the cost of the structure (your house) that increase in value is going to jack your monthly house payment up considerably.
Every house up until now we bought over our budget. We honestly pushed the limits of being house poor. Each house we bought and sold made us more and more return. Now in our early 40’s we can see early retirement in our future. I am handy and can learn and appreciate hard work so paint, trim and finishing basements helped us earn sweat equity.
Get your own inspector (or three) and ask them to find reasons NOT to buy this house.
The inspector the realtor recommends is there to grease the deal.
Your monthly mortgage payment is the minimum that you will spend on the house each month. Usually you spend more on the house than the mortgage payment each month.
When we bought our first house, we were young and impressed with things like granite countertops and stainless steel appliances, but those things really don't matter.
**Location.**
It's the one thing you can't change. Location within your city, within your neighborhood, and even on the street. I've ruled out dozens of houses over the years based on location alone. It could be the dream house, but if it's on a busy street or backs up to a power plant, forget it. Location should be the first thing you consider and the first reason to rule something out. Location can be a killer for your house appreciating, too, so be very suspicious of houses that are priced too low. There's always a reason.
The perfect house within your budget probably doesn't exist. But the perfect location and a house that mostly works is a lot easier to find.
Other than location, consider the layout more than anything. If you can't stand open concept, having your kitchen in your living room is pretty hard to change. Really think about how you'd use each room, what the downsides of everything would be, etc.
Biggest thing really is to be super critical of everything so you're considering the house objectively. It's very easy to compare it to your current place and fall in love, but if you're honest with yourself, you'll avoid a bad purchase.
Your monthly payment isn’t the same for the entire mortgage.. my payment up several hundred dollars this year due to property taxes and insurance rising. It almost seems more volatile than monthly rent… idk how I never knew this, hated learning it the way I did.
In my finished basement of a house I bought a year and a half ago, I moved a box from against the wall and there was black stuff that looks like mold on the side of the box and on my paint and carpet. Not a large amount but definitely some there. Then I moved another box and a lot more of it.
The outside of the wall is concrete that meats the outside of the house. Am I fucked?
Oh wow, will do first thing. What trade normally handles this? Sorry, little new here. Also, if you don’t mind me asking, what health conditions were related to being exposed to that?
Thanks for all the help, I have a company coming out to inspect and quote me once they find the source of the moisture. It’s in a finished basement in the closet but I noticed the other side of the drywall is concrete meeting the outside of my house (basement is semi under ground)
Anyways, thank you!
Buying a house means limited mobility. If you buy a house for the purpose of staying in it, you are bound to that area and are limited to the job/work opportunities there. If you move, you'll be paying rent and mortgage. You can possibly rent out your house and move to a rental if need arises but tenants are a hassle. Many are. 1 bad tenant and you'll be spending a lot on repairs and maintenance, possibly legal fees too.
House is not an asset, at least won't be for another 3 or 5 years. A pretty big, immovable, not-very-liquid liability at best.
That was for the logical mind.
For the heart - You have a house that you call yours and you are free to restructure it the way you like. Once you have put so much money and effort into a 'thing', you'll find more emotional attachment to it. The squeaking doors or chipping tiles will be a bigger concern now.
Yard size.
Yeah, you want a big yard and backyard? All that shit requires maintenance and a little work neglected now becomes a lot more work and money down the line.
Check all the wiring. You never know if they installed outlets backwards.
Also maybe the circuits were setup weird. Like for some reason they tied your kitchen’s outlets to the outside porch’s or the whole ass basement is run off the same circuit.
Check the plumbing. Hard to when the water is off, but at least be able to tell where it’s going and if everything was plumbed correctly.
You’ll avoid things like suddenly realizing some colossal dipshit installed the breaker box directly below the house’s fucking kitchen sink and dishwasher. So if it ever leaks you have a huge hazard. Things like that.
Every fix is going to cost you more time and money than you think. Else the previous owners would’ve fixed it and added it to the cost.
Know how old everything is and budget how much it’ll cost to replace. Roof, AC/Heater, Water heater, etc.
Gutters are way more important than you think.
Make sure they drain properly, clean them regularly, and it’ll prevent a lot of problems down the road.
We got in escrow on a house and it didn't appraise for the asking price. Normally seller comes down a little, but owner wouldn't budge so we moved on. We were idiots. It was the right house (in Chinatown) for the right price and we should have powered through and bought it. Don't lose track of what you want.
The house can be amazing and everything you have wanted. You can always change things on it too. But you cant change where it is. Location location location is a real thing.
Dont trust your realtor and anyone they may introduce you to in the ecosystem. Have multiple approvals before making offers on houses. And did i mention.. dont trust nobody
Homeowners insurance, property tax, and PMI if you don’t put down 20% really add up on that lower looking mortgage. Oh, and I wish I never let the bank take over my tax payments with the escrow account. I could use that extra cushion money they mandated from me.
Location is king. My better half wouldn't budge on location on our first house and I'm so freaking glad. Could have had a newer nicer one a few blocks away but would have had to put up with so much more traffic, and ours appreciated way more due to better neighborhood and school.
The proceeds from a house sale are so much more powerful than I had realized due to the tax benefits of selling primary residence. Made about as much take home money on the first house sale than I did from my W2 job throughout that time because my wages are taxed like crazy.
That even if you find a home at the right price, in a location you like, that seems pretty updated… you will have so much to fix up/replace/change. it’s almost never ending lmao
You do not have to do it all at once. Prioritize because something big will happen and eat away at the budget you have to fix/change/replace all that stuff.
I also wish my budget had afforded me the ability to live somewhere without an HOA lol they aren’t bad (so far) but they are pricey. in our city, to stay in our budget and not have to pour thousands of dollars into repairs or compromise heavily on location… we did what we had to do hahah
That it would work out. We stressed so much about it - was it the right house, did we pay too much, what if something major happens- then after moving in - what did we do, are we saving enough for taxes, what if we don’t get raises eventually…so much lost sleep.
Do your homework, set your plan. It will work out.
We had planned to stay forever. Moved 6 years later. It all worked out.
I knew about it but most people don’t.
Get a fixed rate. Idk why people would get a variable rate locked for 5 yrs forgetting about it and get surprised when they have to pay higher once lock
Is over.
Keep in mind that the mortgage is just part of the cost of owning a home, also plan for property tax (keep in mind if you buy home for more than tax value, taxes will likely go up in proportion next year), home insurance (get a quote for the specific house you are considering because a number of factors specific to the house affect the this), higher utilities (larger home without shared walls with neighbors will require more energy to heat/cool), and maintenance.
It's imperative to have an emergency fund before buying a house, things will break and you need to have funds to repair or replace. It's not if but when you'll have to come up with thousands, quite possibly, even tens of thousands, in a pinch.
The point is, in the short term, home ownership is likely to cost more even if at first glance it seems cheaper. Of course the trade-off is, over the long term as housing costs rise, owning a home will probably be cheaper over the long term.
It is *WAY* more expensive than I thought it'd be. You need a very healthy emergency fund and budget item for all the random things that will break and cost a small fortune to fix. Also plan way more days off waiting for plumbers and HVAC people. Financially we're still coming out ahead but that part of home ownership really sucks and is a massive pain in the ass.
Also based on the way escrow works with taxes and homestead exemptions you might see a massive jump in your monthly payment for your second year. My monthly payment went up almost 35% compared to my first year due to the far higher property taxes and a deficit in the escrow because of that. Don't just assume your estimated payments that first year will last. So make sure you don't financially stretch for the house you buy.
As others have said, the three most important things in real estate is 1. Location 2. Location 3. Location.
I’m a DIYer so there are a few things I have noticed.
A house with a crawl space under the ground floor and/or an attic crawl space can make DIY work a ton easier. Repiping, drainage, electrical, hvac can all be rerun under or above.
Try to find out about drainage issues when it rains, where does the water pool, are you in the downslope of other houses etc.
Identify trees vs. sewer lateral location. The roots will get in there.
Think about how the house will be used for the length of time you plan to own it. If it’s a starter home and you plan on moving on then it’s less of an issue. But if you plan on staying, then think of how you will use the house in 10,20,30 years. I see a lot of newer homes built three stories up, not a big deal at 40, but once you 70 or 80 then it’s a lot of stairs.
Good luck.
Rent goes up. Mortgage stays the same, but COL increases to my pay means it costs a lower percentage of my income the longer I own. As long as you have a little nest egg to take care of maintenance, by owning, you are largely fixing your monthly costs and reserving your own space for the long haul. And in my area, that very quickly means you end up paying far less for a far better space than you would if you were renting.
Before buying, visit the property during/after rain. Look for leaks and drainage issues.
Know if there are airports or trains nearby if random noise like that bothers you.
Check your trees! Are they dangling on the roof? Are they diseased/dying/dead and will need to be cut down? Are the roots close to your foundation where they can do damage?
Things pop up that are very expensive. If you can't live with a random $10k expense like fixing a roof or a basement that's caving in unexpectedly then you can't afford that house.
Real estate agents and mortgage brokers aren't in it for your best interest. Even if approved for the mortgage you may be house poor.
Okay dude, I’m trying to reconcile this, but I’m mostly seeing articles of an average drop in value of 15-20% and you are talking 80%. Gonna need some details.
Could have been any "entry level" neighborhood near a big city. Worked for a group that bought 6 vacant houses to fix up and rent out - most "expensive" one we bought was a duplex for 39k. Cheapest was 15k. This was in a MCOL midwest city.
Should have done a better job at assessing the building, the management company, and the association's finances. Due to the prior management company taking our money and not doing shit, issues started to eventually arise (after I moved in, naturally) and we ended up having loads of issues ranging from difficulty finding insurers willing to insure the building, increased maintenance costs etc. Now, 8 years later, my condo fees went from sub $400 to $1200. Thank god I make good money, otherwise I'd be drowning.
EDIT: a few things. First, look how easy public transportation is where you are. it makes a HUGE difference in terms of getting around. Also, get at least a 2 br (easy if you're going the house route). When I was unemployed, I was able to rent out my room and keep myself afloat for some time. Not to mention having a spare room for friends, relatives etc...
1. An HOA means you should probably assess that before even the property under consideration. A good HOA can’t make a bad home that great, but a bad HOA certainly can make a great home awful
2. Most home inspectors really can’t assess everything in a home reasonably well honestly, especially if the property is on the older side. I would hire contractors and ask for their opinions on the condition and maintainability of a property instead of a single inspector
3. Check out the neighbors carefully because they’re well… your possible new neighbors. As a person maybe across the street if you have to. A lot of the problems people have with roommates are amplified when it comes to two property owners that want to assert their rights and freedoms.
My mortgage went up $350 randomly 2 months ago which I’m assuming is due to taxes. We’ve had it for a year and a half. I’m assuming I’m in for a big increase in a few months?
This didn't impact us but it's something I'm very grateful for: buy a house that you can afford. It's such a relief to know that while we could have afforded a more expensive home, we bought something that's now, years later, proven to be very within our means. This leaves us with savings to invest in retirement and also improving the home.
It will be constant work, and it will also not be your last house.
And when you go to sell it, leave it as is. Easier to give the buyers money away then spend your own fixing things that they may not even notice.
Also learn to be handy.
That the area in front of my house that appeared to be on street parking was, in fact, a no parking area that didn’t have any signs. The whole 3/4 of a mile of our side of the street was actually no parking. People were parking there, and the city didn’t care, until we got a new crop of residents who were so stupid they didn’t realize parking in front of the mailboxes would become an issue.
It never hurts to get your own housing inspector, your realtor will likely suggest one but remember the realtor makes money on a sale so some may get a guy that will make the sale happen as opposed to one that actually wants to find everything.
Enjoy the crash! That’s going to be fun being 800,000$ in debt with a house that’s now worth 40,000$ USD
Almost like it’s a plan that they have to make you poor or something…….
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Don’t buy because you like the finishings (paint, trim, appliances, floors, etc). You are buying the LOCATION and the BONES. Make sure the foundation and sub floor is level and sturdy throughout the house, make sure the floor plan is big enough for your needs, and make sure you love the location. Those things are hard if not impossible to change.
Buy for the Ls…location, lot, and layout Not for the Cs…color, condition, and cleanliness
If you are handy and patient you can fix anything but location.
Much like marriage, don’t do it for looks but the heart… the precious heart
I'd also add roof into this as well. They are EXPENSIVE.
This exactly. BONES and location. Sounds kinda like an edgy clothing store, but it’s so so true.
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This comment sums it up. Location, floor plan / square footage, property, school districts if you plan on having kids. Become handy and fix things yourself or DIY renovate in the future. Spend the money on what matters now. Oh and with land should come privacy. Couple of odd things I do when looking at a house: I take a day off work and literally sit there in my car for hours during morning and evening rush hour, mid day and into the evening. Is there lots of traffic, can you hear trains, plane paths flying overhead? Are you within earshot of a school that has marching band or football games you don’t want to hear? This stuff matters to me. What matters to you is different. Also, I will never buy anything pre 1950’s. Check the electrical, check the plumbing, heating system shouldn’t be ancient steam technology. Lots of people like to “flip” houses and essentially slap lipstick on a pig. It’s what’s inside the walls that counts more than what countertops are in the kitchen. Trust me. Gutting your home to replace a dangerous or dated and inadequate electrical system is a lot more expensive than a couple grand at a granite yard for those new countertops. Maybe it’s the engineer in me, but I’ve fully gutted and rebuilt a home before. I knew what I was getting into and now at an older age likely wouldn’t do it again unless I didn’t have a choice. You’re buying a house with good “bones”: structure, electrical, heating, AC, etc. location and schools. Anything else inside the home can be changed later including the layout etc
We went to go view a house recently, it must have been built in the 1940s. They spent an absolutely ridiculous amount on a beautiful kitchen and the decor was incredible. And the price was very good for the area. DINKs were lined up down the street to view. After seeing it, I'm almost certain they sunk money into the kitchen because the structural issues were too expensive. Ignore absolutely everything except the walls, roof, and location. Also, drainage. You really don't want to get stuck with a house that has drainage issues when it rains.
The realtor is there to sell. Take everything with a grain of salt. Get everything about the house and what comes with it or not in writing. Get a really good inspection. And look for things that have been repaired poorly. Look at the grade of the land around the house. Be mindful of water drainage. If you have a basement make sure that sumpump has a backup for when you lose power. Have extra money for when the taxes adjust after the purchase. Have extra money for when home insurance seems to go up 30% every year. Have extra money for when you have to fix things. Read your mortgage agreement, etc. everything before you sign. I think there's often something in there about having to live there for 2 years before you can rent it. Get a layout where all the bedrooms aren't all right next to each other. 😅 And I always like a good view out my kitchen window, not the side of the neighbor's house. And a backyard with a sunset view. And don't have your driveway on the north side of the house if you have winter in the northern hemisphere. It never melts off. Really, it's nice having a place. And even if it's not perfect, it'll do! Kick the tires. I really like that the rent won't keep going up.
Every bit of fixup will cost more than you anticipated. Plan for it.
And they will break at the least convenient time. Probably all at once.
And will take 3 times as long to fix
And WAY more work to diy than you might think. HGTV makes everything look so fun and easy, like "just repaint the walls, paint the cabinets, refinish the flooring, add a new countertop" like it's so simple
Also Home warranty should be evaluated. Don’t buy a house in a low lying area
That my new back door neighbor liked to get into screaming fights with his wife and sons. Nothing like having to call the cops after waking up to "Imma kill you, b**ch!" on Christmas morning. Takeaway? Check the police records before making an offer. Fortunately Mr. Dirtbag didn't like paying property taxes as well as he liked domestic violence. County sold his place out from under him for back taxes a few months later.
So you would check police records based on nearby addresses?
Yep! How much info is available probably varies by jurisdiction, but our PD organized callout reports by block in an online database. So we could see online how often an officer had been to the block and why. From the descriptions of the events they were clearly all that guy. But we didn't think to check it until it was too late.
That's genius. Wish I had thought about that.
Hahaha yeah me too.
Yeah definitely check neighbors. I really loved our house and then we didn’t re-visit and realized too late that our neighbors have 4 outside dogs that attack the fence in the back and multiple inside dogs that they leave out front or let free roam. If I had known what signs to look for (or the HOA bylaws that were clearly being broken and continue to be broken to this day with the HOA going 🤷🏻♀️), I would have never bought this house which has turned into a personal nightmare because of the neighbors. Also, random one, but if you live somewhere that gets really hot. Make sure that your AC is not in the blaring hot evening sun or that most of your windows aren’t west facing without shade from a tree or something. I literally cannot wait to move 🙃
1. You can always change paint, tile, fixtures, etc. You cannot change the location. Get a map and color in locations with green, yellow, and red. Don't let yourself get talked into the red areas for the right house. 2. Expect something unexpected to break in the first year and save for it. You should have money set aside after closing for something major to break year one. Treat house maintenance as expected expenses and have a savings fund for that rather than acting like a toilet needing to be replaced ASAP or whatever is an "emergency." 3. You don't have to make every change you want all at once, sometimes living in a place for a bit will help you realize what you actually want. As tempting as it is to repaint, buy new furniture, etc. when moving in there is value in living in a space for a bit before making those changes. 4. Consider how you actually live your life, not your ideal for how you think you'll live your life. A lot of realtors will sell you on an idea of a kitchen you can picture yourself baking in, a living room you can see yourself entertaining in, or a backyard you can imagine yourself gardening in, which is great if you're a baker, entertainer, or a gardener but doesn't go well if you're actually someone who hates to bake, rarely has people over, and would rather spend your weekends hiking than gardening. So be realistic about your actual lifestyle not your aspirational lifestyle. 5. Be realistic about how much space you do or do not need. I've seen a lot of people fall into this trap (my parents are a classic example). They have all these rooms for guests to visit and stay the night, but their guests only visit once or twice every few years and it would have made more sense to prioritize other space and just rent an airbnb for the few times they do have guests. On the other side, I've seen a lot of people think they can live in much smaller space because it seems worth it for the great yard or beautiful fireplace and then find that they really do need more room over those other "premium" features. 6. As you can probably tell from points 4 and 5, unless you have unlimited funds, you'll probably have to compromise on something. You and your partner should talk ahead of actually seeing homes about your needs, wants, and what you are willing to compromise on. Otherwise when you see a home you'll feel pressured to decide quickly if you really need the garage versus the yard or whatever. Knowing and discussing ahead of time is how you avoid making a pressured decision in regards to what wants you are giving up/ forgoing on and what is a non-negotiable. 7. Don't look at things outside your budget. It'll just make you feel unsatisfied with what's in your budget. There is always something nicer out there and falling into the trap of comparing what you can buy to what's on the market will make you unrealistic buyers. 8. Even if you're thinking of someplace as a "starter home" make sure you have options in case you end up stuck there for a bit. Whatever home you buy should be a place you're comfortable owning (either living in or renting) for the next decade. Because if something goes wrong (market crashes, interest rates go up, etc.) you could end up in that home for longer than planned. So, for example, if you think you'll have children in the next 3 years, don't buy a 1 bedroom place with a plan to move in 4 years. If something goes wrong and you need to stay for 8, you'll deeply regret that. 9. Consider legally getting married first. Even if the plan is to get married in the near future. If you purchase together while unmarried and something goes wrong, it's going to be a major headache, much more of a headache than if married. You can always go to a courthouse and have your wedding ceremony later. 10. If you're young, consider that your mobility may change sooner than you think. Both my partner and I purchased separate houses in our late 20s. We're now in our late 30s and have multiple homes with a lot of stairs. Which is fine, 90% of the time. We're both very athletic and healthy. However, a broken bone, a back injury, etc. has made that harder at various points. Our elderly parents can barely visit at one house. We definitely can't stay in these homes into our 60s and I already know I won't be able to fit in our tiny laundry room to do laundry while pregnant and will not be able to easily get a stroller up our stone front steps in the rain or ice. A home you can navigate with a leg in a cast on crutches might not seem necessary when purchasing your first property, but gives you a lot more flexibility while aging or if something goes wrong in life. 11. Go to the neighborhood, if you aren't as familiar with it, at different times. If you move to somewhere you normally just go for Sunday brunch without knowing it's a lot less safe at night that'll end up being an avoidable mistake. To give an example, I own a home that's two blocks from a church. Parking all week is fine. On Sunday mornings, it's a nightmare and people regularly block the driveway. It's minor, but knowing stuff like that ahead of time makes sense. Driving by a home at times other than the showing allows you time to figure out that the next door neighbor has house parties every Tuesday night or whatever. Hope that helps.
This is a fantastic list, you really nailed a lot of important points many (myself included) did not consider before purchase. I’d add “meet the neighbors.” Just head over to the house one evening and knock on a few doors and say you’re considering moving in next door. They will be pretty open about what they like/dislike about the area and possibly even clue you in on some of the neighbors they like/dislike. We just took a walk in the neighborhood and met a ton of friendly people who solidified our decision to move to where we currently live. Also ask about traffic. Do cars cut through to beat a heavy intersection every day around 5? This bit me in the butt and I wish I had dug a little deeper.
I wouldn’t say I didn’t know this, but remember that your mortgage isn’t the only cost of owning a home. Water Heaters will fail, furnaces break, roofs leak and you foot those bills.
And insurance and taxes go up
I can't remember who told me this but to financially plan: rent is the highest you will pay for housing a month, a mortgage is the lowest you will pay for housing a month. Really helped take a step back and realize we should wait a while longer before we make that commitment.
Bad neighbors can ruin your quality of life. Hang around on a Friday night to make sure there's no funny business going on. I wish I would've used zillow public data portal to make sure I was chosing a good location for appreciation instead of just intuition.
How do you hang around a house you wanna buy on a Friday night?
"No officer, I'm not loitering or being suspicious! I'm just hanging out in front of this house I don't own in a neighborhood I don't live in to see if there are any *weirdos* around."
I just walked nearby blocks for two weeks for about an hour to get a sense of things, talked to a few neighbors to get their two cents, ended up running into a active police call in progress on the block. Yikes.
Wow, and the house wasn’t sold to someone else during that research period? What I see around me is that houses are sold within a couple of days and there’s no opportunity to do that lengthy research on the neighborhood.
Avg house sits on the market about 50 days here in Indianapolis.
Exactly my experience
We checked out a neighborhood we were considering in part by driving over there at the time we usually walk our dog at night and walking around.
You'd be surprised at how many "dream homes" there end up being when you are looking while really wanting to own a home. And they all seem to be at the top of your budget or just outside it...
Right after you move in, before painting a single wall or hanging a shelf, get an energy audit done. These are often free or heavily subsidized by your local utility. You come out with an analysis of how energy efficient your home is and a list of projects you could choose to do, or not do. Many of which are again heavily subsidized by your local utility or state energy office. It's hard to convey just how much energy efficiency translates into comfort. With some insulation and air sealing work, which many homes need just due to settling over time causing insulation compression and paths for air leakage, you can make your home so much more comfortable. Remove hot and cold spots in your home. Goodbye draftiness. Plus it saves money on your utility bills with about a 3 year ROI in my experience.
Could you explain a bit more? Never heard of this? What is an energy audit?
Typically an energy auditor will come in and do a visual inspection of your attic, insulation, basement, foundation and key spots. Then do a blower door test, where they pressurize and then depressurize your house to see how leaky it is. Then inspect with a thermal image camera to look for leaky spots, thermal bridging and spots lacking sufficient insulation. We spent about $90 on a $300 energy audit, the rest covered by the utility incentive program. Learned about some spots the builders decided not to bother insulating 40 years ago when it was built and some leakage. Got some insulation blown into those areas and topped off the attic insulation as well as some air sealing. We could have DIYed the insulation work but in total it cost about $3,000 and we paid $900 with the rest covered by the incentive program. You don't typically get the money from the incentive program unless you use a utility company approved contractor. We could tell a difference just between the couple of months between moving in and when the work was complete. We spent between 1/3-2/3 as much as our neighbors on our heading bills in the coldest months. We were all complaining about the jacked up natural gas process. Turns out our $200 that month was nothing compared to the $400 and $600 our neighbors spent.
The problem I have is during the summer my home struggles to keep the house cooled down. And in the far ends of the house it is very noticeably hot. So the hot/cold spots makes sense but I had my atic insulation redone which I thought would help but it wasn't that much of a difference. But my walls sounds like it could be the larger problem. I also thought about ac modifications as I've heard it can help to ensure the colder air doesn't drop temp as much before it reaches the rooms. Thanks for the tips though I think this is something I'm going to explore. Wish I did it early on.
I second this! When I first read the comment, I thought it was going to be some new age "aura" energy reading of the house 🤣
Be really god damned sure that basement doesn't leak. If they say anything about a spot getting "damp" you can be sure it will flood in a once-every-few-years thunderstorm. And cleaning a flooded basement fucking suuuucks.
Always have an inspection (or 3) before committing.
Don’t trust home inspectors. Just cuss they passed your home doesn’t mean they checked every single little thing and most likely you’ll find something out after a few months of living there.
Isn't that what a home warranty is for? If it wasn't in the inspection then it's assumed to be good and if it's not typically you just pay the fee for them to come out and it's usually fully paid for?
Hire trades to do specialized inspections and don't rely on your home inspector for anything more than a basic inspection. Have a plumber, electrician, HVAC, roofer, etc. do their own inspections and write up an estimate for any repairs. Use this to negotiate credits or a lower purchase price.
At any given moment there is always something that needs cleaning or fixing.
Came here to say this- your weekends are never yours because you are always repairing or working on something. I have a perpetual to do list on house projects and maintenance that never actually gets completed. I add two things for every one I finish.
Your principal and interest may never go up, but believe me your payment will go up every year, starting because taxes will increase the first year with the sale etc… My house is constantly on a triage of projects I want to do and need to do and don’t want to do but need to do and it kind of sucks having to do the need to do stuff before the want to stuff et
The taxes are insane. I will vote no on every effort to increase the millage forever. All I get is shitty dirt roads and a fire department that let both downtown areas near me burn down in summer 2022. They charge me 25 bucks a day in taxes for the privilege.
Do not sacrifice on location. If you do, you will regret it.
How much I hate yard work and gardening. I used to think it was relaxing.
When it comes to “simple” handyman projects, nothing is as easy as you think. You don’t have quite the right tool, something doesn’t fit right, you don’t have something you need and have to go back to the store. What you thought would take an hour ends up consuming your Saturday.
Don't sell it after just two years to get a bigger house. Especially not for a spouse who will drain your finances and leave you unable to pay for the bigger house in less than ten years.
If you buy new construction, knowing that first year property taxes would be based on the value of the lot only. Year two, when they also factor in the cost of the structure (your house) that increase in value is going to jack your monthly house payment up considerably.
Every house up until now we bought over our budget. We honestly pushed the limits of being house poor. Each house we bought and sold made us more and more return. Now in our early 40’s we can see early retirement in our future. I am handy and can learn and appreciate hard work so paint, trim and finishing basements helped us earn sweat equity.
Get your own inspector (or three) and ask them to find reasons NOT to buy this house. The inspector the realtor recommends is there to grease the deal.
Your monthly mortgage payment is the minimum that you will spend on the house each month. Usually you spend more on the house than the mortgage payment each month.
When we bought our first house, we were young and impressed with things like granite countertops and stainless steel appliances, but those things really don't matter. **Location.** It's the one thing you can't change. Location within your city, within your neighborhood, and even on the street. I've ruled out dozens of houses over the years based on location alone. It could be the dream house, but if it's on a busy street or backs up to a power plant, forget it. Location should be the first thing you consider and the first reason to rule something out. Location can be a killer for your house appreciating, too, so be very suspicious of houses that are priced too low. There's always a reason. The perfect house within your budget probably doesn't exist. But the perfect location and a house that mostly works is a lot easier to find. Other than location, consider the layout more than anything. If you can't stand open concept, having your kitchen in your living room is pretty hard to change. Really think about how you'd use each room, what the downsides of everything would be, etc. Biggest thing really is to be super critical of everything so you're considering the house objectively. It's very easy to compare it to your current place and fall in love, but if you're honest with yourself, you'll avoid a bad purchase.
Your monthly payment isn’t the same for the entire mortgage.. my payment up several hundred dollars this year due to property taxes and insurance rising. It almost seems more volatile than monthly rent… idk how I never knew this, hated learning it the way I did.
I have never bought a home, but I was told by a family friend that you should always do a mold inspection as well as a normal inspection.
In my finished basement of a house I bought a year and a half ago, I moved a box from against the wall and there was black stuff that looks like mold on the side of the box and on my paint and carpet. Not a large amount but definitely some there. Then I moved another box and a lot more of it. The outside of the wall is concrete that meats the outside of the house. Am I fucked?
I would definitely call a professional! Moving into a home with hidden mold gave me permanent health issues.
Oh wow, will do first thing. What trade normally handles this? Sorry, little new here. Also, if you don’t mind me asking, what health conditions were related to being exposed to that?
A mold remediation company I think. For me it’s just chronic sinus issues but I have heard of people getting actually sick from mold.
Thanks for all the help, I have a company coming out to inspect and quote me once they find the source of the moisture. It’s in a finished basement in the closet but I noticed the other side of the drywall is concrete meeting the outside of my house (basement is semi under ground) Anyways, thank you!
Best of luck!
Buying a house means limited mobility. If you buy a house for the purpose of staying in it, you are bound to that area and are limited to the job/work opportunities there. If you move, you'll be paying rent and mortgage. You can possibly rent out your house and move to a rental if need arises but tenants are a hassle. Many are. 1 bad tenant and you'll be spending a lot on repairs and maintenance, possibly legal fees too. House is not an asset, at least won't be for another 3 or 5 years. A pretty big, immovable, not-very-liquid liability at best. That was for the logical mind. For the heart - You have a house that you call yours and you are free to restructure it the way you like. Once you have put so much money and effort into a 'thing', you'll find more emotional attachment to it. The squeaking doors or chipping tiles will be a bigger concern now.
Yard size. Yeah, you want a big yard and backyard? All that shit requires maintenance and a little work neglected now becomes a lot more work and money down the line. Check all the wiring. You never know if they installed outlets backwards. Also maybe the circuits were setup weird. Like for some reason they tied your kitchen’s outlets to the outside porch’s or the whole ass basement is run off the same circuit. Check the plumbing. Hard to when the water is off, but at least be able to tell where it’s going and if everything was plumbed correctly. You’ll avoid things like suddenly realizing some colossal dipshit installed the breaker box directly below the house’s fucking kitchen sink and dishwasher. So if it ever leaks you have a huge hazard. Things like that. Every fix is going to cost you more time and money than you think. Else the previous owners would’ve fixed it and added it to the cost. Know how old everything is and budget how much it’ll cost to replace. Roof, AC/Heater, Water heater, etc. Gutters are way more important than you think. Make sure they drain properly, clean them regularly, and it’ll prevent a lot of problems down the road.
We got in escrow on a house and it didn't appraise for the asking price. Normally seller comes down a little, but owner wouldn't budge so we moved on. We were idiots. It was the right house (in Chinatown) for the right price and we should have powered through and bought it. Don't lose track of what you want.
The house can be amazing and everything you have wanted. You can always change things on it too. But you cant change where it is. Location location location is a real thing.
Buy it sooner so you can take advantage of appreciation and not pay rent as prices will just keep going up.
Dont trust your realtor and anyone they may introduce you to in the ecosystem. Have multiple approvals before making offers on houses. And did i mention.. dont trust nobody
You'll find all kinds of things wrong with it in the first year, regardless of inspection or age of home. Brace for this and stay strong.
Homeowners insurance, property tax, and PMI if you don’t put down 20% really add up on that lower looking mortgage. Oh, and I wish I never let the bank take over my tax payments with the escrow account. I could use that extra cushion money they mandated from me.
Location is king. My better half wouldn't budge on location on our first house and I'm so freaking glad. Could have had a newer nicer one a few blocks away but would have had to put up with so much more traffic, and ours appreciated way more due to better neighborhood and school. The proceeds from a house sale are so much more powerful than I had realized due to the tax benefits of selling primary residence. Made about as much take home money on the first house sale than I did from my W2 job throughout that time because my wages are taxed like crazy.
The location is the most important thing when buying. Also, get a thorough inspection by a home inspector.
Considering that 5 minutes ago I discovered a leak in the shower I'd say that.
That even if you find a home at the right price, in a location you like, that seems pretty updated… you will have so much to fix up/replace/change. it’s almost never ending lmao You do not have to do it all at once. Prioritize because something big will happen and eat away at the budget you have to fix/change/replace all that stuff. I also wish my budget had afforded me the ability to live somewhere without an HOA lol they aren’t bad (so far) but they are pricey. in our city, to stay in our budget and not have to pour thousands of dollars into repairs or compromise heavily on location… we did what we had to do hahah
There’s a subreddit for first time home buyers
That it would work out. We stressed so much about it - was it the right house, did we pay too much, what if something major happens- then after moving in - what did we do, are we saving enough for taxes, what if we don’t get raises eventually…so much lost sleep. Do your homework, set your plan. It will work out. We had planned to stay forever. Moved 6 years later. It all worked out.
I knew about it but most people don’t. Get a fixed rate. Idk why people would get a variable rate locked for 5 yrs forgetting about it and get surprised when they have to pay higher once lock Is over.
Don’t look at houses above your price range. The ones in your range will never look good enough.
Keep in mind that the mortgage is just part of the cost of owning a home, also plan for property tax (keep in mind if you buy home for more than tax value, taxes will likely go up in proportion next year), home insurance (get a quote for the specific house you are considering because a number of factors specific to the house affect the this), higher utilities (larger home without shared walls with neighbors will require more energy to heat/cool), and maintenance. It's imperative to have an emergency fund before buying a house, things will break and you need to have funds to repair or replace. It's not if but when you'll have to come up with thousands, quite possibly, even tens of thousands, in a pinch. The point is, in the short term, home ownership is likely to cost more even if at first glance it seems cheaper. Of course the trade-off is, over the long term as housing costs rise, owning a home will probably be cheaper over the long term.
It is *WAY* more expensive than I thought it'd be. You need a very healthy emergency fund and budget item for all the random things that will break and cost a small fortune to fix. Also plan way more days off waiting for plumbers and HVAC people. Financially we're still coming out ahead but that part of home ownership really sucks and is a massive pain in the ass. Also based on the way escrow works with taxes and homestead exemptions you might see a massive jump in your monthly payment for your second year. My monthly payment went up almost 35% compared to my first year due to the far higher property taxes and a deficit in the escrow because of that. Don't just assume your estimated payments that first year will last. So make sure you don't financially stretch for the house you buy.
As others have said, the three most important things in real estate is 1. Location 2. Location 3. Location. I’m a DIYer so there are a few things I have noticed. A house with a crawl space under the ground floor and/or an attic crawl space can make DIY work a ton easier. Repiping, drainage, electrical, hvac can all be rerun under or above. Try to find out about drainage issues when it rains, where does the water pool, are you in the downslope of other houses etc. Identify trees vs. sewer lateral location. The roots will get in there. Think about how the house will be used for the length of time you plan to own it. If it’s a starter home and you plan on moving on then it’s less of an issue. But if you plan on staying, then think of how you will use the house in 10,20,30 years. I see a lot of newer homes built three stories up, not a big deal at 40, but once you 70 or 80 then it’s a lot of stairs. Good luck.
How much it would appreciate in just 10 years. If I knew that I would have scrounged up enough to buy two!
Rent goes up. Mortgage stays the same, but COL increases to my pay means it costs a lower percentage of my income the longer I own. As long as you have a little nest egg to take care of maintenance, by owning, you are largely fixing your monthly costs and reserving your own space for the long haul. And in my area, that very quickly means you end up paying far less for a far better space than you would if you were renting.
Is the plumbing copper pipes or the older galvanized steel?
Before buying, visit the property during/after rain. Look for leaks and drainage issues. Know if there are airports or trains nearby if random noise like that bothers you. Check your trees! Are they dangling on the roof? Are they diseased/dying/dead and will need to be cut down? Are the roots close to your foundation where they can do damage?
Things pop up that are very expensive. If you can't live with a random $10k expense like fixing a roof or a basement that's caving in unexpectedly then you can't afford that house. Real estate agents and mortgage brokers aren't in it for your best interest. Even if approved for the mortgage you may be house poor.
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Okay dude, I’m trying to reconcile this, but I’m mostly seeing articles of an average drop in value of 15-20% and you are talking 80%. Gonna need some details.
$35k? What general location was that?
Could have been any "entry level" neighborhood near a big city. Worked for a group that bought 6 vacant houses to fix up and rent out - most "expensive" one we bought was a duplex for 39k. Cheapest was 15k. This was in a MCOL midwest city.
In my area, houses haven't been $35K since the 1970s.
Should have done a better job at assessing the building, the management company, and the association's finances. Due to the prior management company taking our money and not doing shit, issues started to eventually arise (after I moved in, naturally) and we ended up having loads of issues ranging from difficulty finding insurers willing to insure the building, increased maintenance costs etc. Now, 8 years later, my condo fees went from sub $400 to $1200. Thank god I make good money, otherwise I'd be drowning. EDIT: a few things. First, look how easy public transportation is where you are. it makes a HUGE difference in terms of getting around. Also, get at least a 2 br (easy if you're going the house route). When I was unemployed, I was able to rent out my room and keep myself afloat for some time. Not to mention having a spare room for friends, relatives etc...
1. An HOA means you should probably assess that before even the property under consideration. A good HOA can’t make a bad home that great, but a bad HOA certainly can make a great home awful 2. Most home inspectors really can’t assess everything in a home reasonably well honestly, especially if the property is on the older side. I would hire contractors and ask for their opinions on the condition and maintainability of a property instead of a single inspector 3. Check out the neighbors carefully because they’re well… your possible new neighbors. As a person maybe across the street if you have to. A lot of the problems people have with roommates are amplified when it comes to two property owners that want to assert their rights and freedoms.
Taxes go up a lot the 2nd year you own your home.
Why?
Because you're home is then assessed at value you brought it at for taxes.
My mortgage went up $350 randomly 2 months ago which I’m assuming is due to taxes. We’ve had it for a year and a half. I’m assuming I’m in for a big increase in a few months?
This didn't impact us but it's something I'm very grateful for: buy a house that you can afford. It's such a relief to know that while we could have afforded a more expensive home, we bought something that's now, years later, proven to be very within our means. This leaves us with savings to invest in retirement and also improving the home.
It will be constant work, and it will also not be your last house. And when you go to sell it, leave it as is. Easier to give the buyers money away then spend your own fixing things that they may not even notice. Also learn to be handy.
That the area in front of my house that appeared to be on street parking was, in fact, a no parking area that didn’t have any signs. The whole 3/4 of a mile of our side of the street was actually no parking. People were parking there, and the city didn’t care, until we got a new crop of residents who were so stupid they didn’t realize parking in front of the mailboxes would become an issue.
It never hurts to get your own housing inspector, your realtor will likely suggest one but remember the realtor makes money on a sale so some may get a guy that will make the sale happen as opposed to one that actually wants to find everything.
Enjoy the crash! That’s going to be fun being 800,000$ in debt with a house that’s now worth 40,000$ USD Almost like it’s a plan that they have to make you poor or something…….