[MontegoGoGoGo]

The good news is, you don't have a house to sell.
The better news is, it's a great time to buy a house.

Find an agent you trust via referral. Same with inspector.

As an owner of two homes (one built in 1924 and the other in 1937), I can say, it gets EXPENSIVE. Make sure you have enough cash to cover anything that can (and will) go wrong. That goes with new construction too, but obviously the older the home, the more lovin' it will need. But, that's the price you pay for real character!

Do you want a "fixer-upper" or something that's completely updated? Something in the middle?

[Maestro]

Originally Posted by MontegoGoGoGo

As an owner of two homes (one built in 1924 and the other in 1937), I can say, it gets EXPENSIVE. Make sure you have enough cash to cover anything that can (and will) go wrong. That goes with new construction too, but obviously the older the home, the more lovin' it will need. But, that's the price you pay for real character!

How true, if you are not handy stay away from old homes especially ones build prior to the 80's since they used lead based products to paint them and new laws went into affect this year that if any work is done on the home especially where lead based material is disturbed it requires licensed contractors with haze-mat suits to work in your home and this comes at a huge cost. This is one of those things a agent does not know nor will tell you about. The homeowner may not even disclose this since they may not be aware of it since the disclosure assume they know, and you have to prove they knew or had to know. Well some people are ignorant and stupid and have no clue.

New is good, if the builder is reputable, This is usually pretty easy to find out talk to others who bought their homes, ask for references. Some new homes can be a nightmare in themselves because the builder cut corners. Homes in the 5 to 10 yr old range usually show any short comings a builder might have taken.

[lopealle]

What about foreclosures? You guys have any info on those?

[DarkRider23]

Originally Posted by lopealle

What about foreclosures? You guys have any info on those?

What about them? It's the same as any other house except the owner couldn't make the payments. My parents bought one about a year back and everything went smoothly. The only thing that might be annoying is that once you commit to buying it, the bank tries to rush you through everything.

[Feyd]

There are deals on foreclosures/short-sales, but be prepared to wait wait wait.... At least in Chicago there is no such thing as rushing through the purchase of one of these homes.

I know some people that have scored some great deals this way, but your current living situation needs to be flexible so that if you end up waiting 6 weeks for a bank's answer and it falls through, you still have time to find another place.

Just about all of these are sold as-is, so be prepared to do some major cleaning/painting/light repair. You will still have inspections, etc. but you'll have no hope of getting any kind of cosmetic repairs (holes in walls, etc) repaired before you buy.

[TTexan]

Originally Posted by MontegoGoGoGo

The good news is, you don't have a house to sell.
The better news is, it's a great time to buy a house.

Find an agent you trust via referral. Same with inspector.

As an owner of two homes (one built in 1924 and the other in 1937), I can say, it gets EXPENSIVE. Make sure you have enough cash to cover anything that can (and will) go wrong. That goes with new construction too, but obviously the older the home, the more lovin' it will need. But, that's the price you pay for real character!

Do you want a "fixer-upper" or something that's completely updated? Something in the middle?

I'm looking for something in the middle. I'd like to not have to do a ton of stuff, but be able to make certain upgrades that add value, some sweat equity.

I will keep everyone up to date on what I end up getting.

[TTexan]

I'm assuming there are no more tax credits/incentives.

I've googled and looks like everything expired already.

Timing fail, haha.

[TMNT]

Originally Posted by TTexan

I'm assuming there are no more tax credits/incentives.

I've googled and looks like everything expired already.

Timing fail, haha.

Well while the credits expired, interest rates are lower now than what they were then, so you'll more than save the 8k or so. However you just want get that chunk right away.

I got mine in Feb and put it straight in savings as an emergency fund.

[kyleb350]

Originally Posted by TMNT

Well while the credits expired, interest rates are lower now than what they were then, so you'll more than save the 8k or so. However you just want get that chunk right away.

I got mine in Feb and put it straight in savings as an emergency fund.

I'm kind of jealous. I thought I got a good rate when I bought my place back at the end of July. Sure, I got the repeat home buyer tax credit, but that 0.5% difference would make up for it in the long run.

Knowing me, I'm probably going to use the money on a car

[MediaArtist]

Housing in most markets is just a bad investment right now. Maybe Las Vegas, and Phoenix, I'm not sure there are any other markets as depressed as those.

[TTexan]

Austin seems to be holding pretty firm and from what I've read, will be doing fine for the next decade or so. It's a better investment than pissing money away every month at my apartment so someone else can get rich.

[double_j]

1.) A good realtor can be helpful since they'll scan the listings for you and be able to point your towards realistic comps for pricing. Keep in mind though, that it's in their best interest for your to buy, no matter what you buy, so take their advice with a grain of salt.

2.) Don't fall for the "Lower expectations so a so-so house will suffice". This is the oldest realtor trick in the book. They'll show you a bunch of crap or overpriced houses to start so the first 'decent' place you see will seem attractive (even if it's not your ideal).

3.) Try to find your own home inspector or at least do a walk through with someone you know to be competent/knowledgeable about home repairs, etc. Don't be afraid to look at the guts of the house to see how well it's been constructed and/or maintained. Stomp on stairs, check all of the electrical outlets and switches, see if fixtures fit like new or look shabby, etc. Beware of upstairs plumbing - check upstairs water heaters or washing machines, etc. for leaks (or evidence of leaks on the ceiling a floor below). If it looks like the prior homeowner used an amateur handyman to do work on the house, do not buy it (it's easy to see shabby repair work with even an untrained eye).

4.) Kitchens and bathrooms that are marginally acceptable now will make a house hard to sell in the future. Fixtures and counters can be changed at a reasonable cost but it's almost impossible to make a room bigger. Make sure your house has good DNA before assuming you can update something with a quick makeover. A small master bathroom or kitchen will always be small no matter what you do and most people hate small master bathrooms and kitchens.

5.) Make sure the air conditioning covers the entire house. Beware of central AC units that seem oversized for the dwelling because that's a sign that the prior owner tried to make up for shortcomings of inadequate ventwork (this doesn't work, BTW).

6.) No matter what you plan, you're probably going to need another $5,000 to $10,000 in cash or credit for new furniture, etc. and other things that you'll want to do to the house.

7.) Think about what you want to do to the house before you buy it. Give yourself three months after purchase to actually move in and do all of the work beforehand. It sounds ridiculously obvious, but it's much easier to paint/tile/replace carpets, etc. while the house is still empty.

8.) Challenge everything you don't understand or didn't explicitly agree to on the mortgage papers. Regardless of intent on the mortgage company's behalf, etc. it's fairly common to find mistakes about the interest rate, points up front, etc. so check before you sign.

9.) Check your cell phone reception while walking through the house. Make sure you get decent signal strength throughout or you'll hate the place as long as you have it (or until you change carriers).

10.) Visit the house at different times during the day and on a weekend if possible. Most places seem very quiet during the workday when everyone is gone but are a different story when everyone is home (especially critical for townhomes or other 'attached' units).

[ska///235i]

Some other things to consider….

If your offer is accepted, most people will first do a home inspection. Before you do that, do a Radon test first unless you don’t care for Radon gas or don’t mind a mitigation system. After the Radon test, then do a full home inspection. Then you hire a real estate/closing attorney at the very end. This way you don’t have to waste any fees if you decided to back out of the deal.

During home inspection, don’t be afraid to bright a friend (with experience). You’ll focus on things with the inspector and there could be other things you or the inspector might miss.

If you absolutely love a particular home, go ahead and outbid your competition (if any). What I’m trying to say it’s not to back off unless the price reaches to a point where you no longer can afford the payments. Don’t let a $5000+ counter offer scare you away, it might just be $20-30 more per month for the life of the loan.

[jokergerm]

Rule number #1 in buying a house.

Mortgage brokers are all CROOKS. I cannot stand them
They will lie and bend and try to talk circles around you to make them more money. I just bought a house and i hated my broker, he was like a used car sales man.

I almost walked away from the deal but i didnt. I just bit my tounge and did it. even if i kinda got screwed on my loan.

I ended up with 4.5% intrest which i know in the over all big picture is good but i could have gotten 4.25 maybe 4.0 even. But im only planning to stay in the house 3-6 years and i did not have to pay any closing costs to i just did it.

I figured it would take me 7 years of living in the house to make up the extra 4k in closing costs to get the lower intrest rate, so even against my better judgement i let the lender finish the loan.

I still get mad everytime i see him. He got all pissy when we were signing papers and i told him that he would make a much better used car sales man than a loan officer.
He ended up paying all my closing costs and i just had to put down the 3.5% for the FHA

[MediaArtist]

Originally Posted by TTexan

It's a better investment than pissing money away every month at my apartment so someone else can get rich.

When you take into account taxes, maintenance, and any HOA, it's actually fairly close, and in some markets, renting is actually better. Rent vs own scales have been skewed for the past 10 years at least in many markets.