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View Full Version : Purchasing a house (advice)



Z33Art
02-11-2011, 05:37 AM
My wife and I are in the market for a house right now and I was wondering if anyone had advice on specific aspects of a house to look at that that would make you not purchase it.

Examples would be cracks in the walls (direction specific?), furnace brand, window type, age of roof and so on. Obviously we are having a home inspector go through the house we select, but we are still trying to get as much information as possible while veiwing the homes.

Any advice would be appreciated!:thumbsup

pOrk
02-11-2011, 10:05 AM
Do not go with advice from the bank when it comes to what you can afford, do your own math and secure your financial future. I know too many ppl that went with bank advice and lost their homes.

Foundation problems are my biggest concern, all the other stuff matters but is easily replaced if the price is right. Short sales are a pain in the ass fyi. Call Barb Miller w shorewest if you need a realtor, she is awesome

Haulin' Oates
02-11-2011, 10:24 AM
^ That is great advice. If I had bought the house the bank told me I could afford I would be eating ramen noodles everyday. Idiots.

jbiscuit
02-11-2011, 12:25 PM
Look at a lot of homes also. Don't settle for the first one. Tons of great homes out there for sale these days. Buy in a stable neighborhood also. A neighborhood where others on the block care for their homes. One bad seed can ruin your home value. Search Shorewest.com daily for new listings or reduced asking prices. Like Pork said, find a house with a structurally sound, dry basement. Check for mold. Look for cracking/water damage. I would also suggest you wait and look for a house in the spring when the snow melts and we get lots of rain. Go straight to the basement and check for moisture. A house might seem solid in Feb but wait till it rains! Lots of homes flood and you don't want that. Pay attention to the electrical, furnace, roof and kitchen. Big ticket items. You need a furnace that's $4500+. Need to remodel a kitchen? $5000-10000 easy. Roof on a ranch will be more expensive than a colonial 2-story etc. Keep that in mind. Don't offer too much for the house. Lots of homes have been on the market for months and months. Go in with a low offer and let them counter. No reason to pay 2006 prices in this market!

Flicktitty
02-11-2011, 12:40 PM
^ That is great advice. If I had bought the house the bank told me I could afford I would be eating ramen noodles everyday. Idiots.

Atleast ramen noodles are jdm...


sorry i have nothing to add.

WhatsADSM
02-11-2011, 01:36 PM
I echo both j and pork. Great advice.

Location, Location, Location. And remember this is a buyers market, and if you are first time home buyers you have even more bargaining power (since you will have no home sale contingency)... Don't just "settle" for the first thing.

Best of luck!

PureSound15
02-11-2011, 01:45 PM
I do find it a bit entraining to say that a lender is an idiot for estimating what you can afford.

Limits are based on previous spending habits and debt to income ratios. A lender can't control that clients move into their home and then buy a new car, and then remodel.... And then buy this... And no longer have a savings when they lose their job.


In general I agree to figure out what you can afford on your own; but it's strange to put the blame on a lender.


Sent from my iPhone using Tapatalk

Rocket Power
02-11-2011, 01:49 PM
Yep, do not settle. And also think about when you eventually will be selling it. Things like railroad tracks may not bother you that much but may limit who will buy your house down the line when you decide to move. Check out the neighborhood at different times of the day by the house once you decide on a house too.

Get a GOOD inspector. Unfortunately the one I used past away, he found stuff that the previous owners one didn't because their's had been just a "yep looks good" kinda guy. The lady half of the people we bought from started crying when he told here the things he found because she thought we'd back out. Make sure they actually check out stuff(getting on the roof, in the attic etc.)

Holeshot
02-11-2011, 01:50 PM
I do find it a bit entraining to say that a lender is an idiot for estimating what you can afford.

Limits are based on previous spending habits and debt to income ratios. A lender can't control that clients move into their home and then buy a new car, and then remodel.... And then buy this... And no longer have a savings when they lose their job.


In general I agree to figure out what you can afford on your own; but it's strange to put the blame on a lender.


Sent from my iPhone using Tapatalk

Agreed. You need to live within your means. You should have 3 to 6 months mortgage in the bank if possible. You never know whats gonna happen.

Yooformula
02-11-2011, 01:56 PM
I do find it a bit entraining to say that a lender is an idiot for estimating what you can afford.

Limits are based on previous spending habits and debt to income ratios. A lender can't control that clients move into their home and then buy a new car, and then remodel.... And then buy this... And no longer have a savings when they lose their job.


In general I agree to figure out what you can afford on your own; but it's strange to put the blame on a lender.


Sent from my iPhone using Tapatalk

While I agree entirely with your statement, I knew of a lender personally that would sell higher interest rates, arms and get lower income earners into higher mortgages and more expensive homes. He told me that he would be pressured to do so by the realtors for fear of losing his realtor clientel base as the REALTORS would be the driving force and just wanted a sale.

Lash
02-11-2011, 02:41 PM
I do find it a bit entraining to say that a lender is an idiot for estimating what you can afford.

Limits are based on previous spending habits and debt to income ratios.


Yes.... but if you spend what they approve you for, that leaves you with next to nothing for extra savings, vacation money, or anything else even if your spending habits don't change.

Lash
02-11-2011, 02:42 PM
Don't move near a gas station.

Prince Valiant
02-11-2011, 03:17 PM
Be ready, even if moving into a home you can "easily" afford to adjust to new spending patterns. Even if the mortgage is similar to what you spend monthly on rent, cost of heating/electric bills, water bills, etc are all significantly different to what you've been used to, unless perhaps you're renting a house now.

Likewise, significant cost could be incurred without warning, so make sure you have the funds to cover such expenses...so a hot water heater going, or furnance/AC unit, things like that...or suddenly finding that the roof wasn't in as great a shape as you had thought it'd be.

Z33Art
02-11-2011, 05:06 PM
Do not go with advice from the bank when it comes to what you can afford, do your own math and secure your financial future. I know too many ppl that went with bank advice and lost their homes.

Foundation problems are my biggest concern, all the other stuff matters but is easily replaced if the price is right. Short sales are a pain in the ass fyi. Call Barb Miller w shorewest if you need a realtor, she is awesome

Very good advice. The first thing we did was calculate our payments and we have chosen to go a couple hundred lower than what the bank recommends. We are also paying off two car loans to accommodate for property taxes.

Z33Art
02-11-2011, 05:09 PM
Look at a lot of homes also. Don't settle for the first one. Tons of great homes out there for sale these days. Buy in a stable neighborhood also. A neighborhood where others on the block care for their homes. One bad seed can ruin your home value. Search Shorewest.com daily for new listings or reduced asking prices. Like Pork said, find a house with a structurally sound, dry basement. Check for mold. Look for cracking/water damage. I would also suggest you wait and look for a house in the spring when the snow melts and we get lots of rain. Go straight to the basement and check for moisture. A house might seem solid in Feb but wait till it rains! Lots of homes flood and you don't want that. Pay attention to the electrical, furnace, roof and kitchen. Big ticket items. You need a furnace that's $4500+. Need to remodel a kitchen? $5000-10000 easy. Roof on a ranch will be more expensive than a colonial 2-story etc. Keep that in mind. Don't offer too much for the house. Lots of homes have been on the market for months and months. Go in with a low offer and let them counter. No reason to pay 2006 prices in this market!

I agree about waiting till spring. We started looking now so we can narrow down the houses we don't even want to waste time with in spring. We both feel that this will also give us the necessary time to put in a fair but lower offer than the asking price.

Z33Art
02-11-2011, 05:10 PM
I echo both j and pork. Great advice.

Location, Location, Location. And remember this is a buyers market, and if you are first time home buyers you have even more bargaining power (since you will have no home sale contingency)... Don't just "settle" for the first thing.

Best of luck!

I never even thought of the fact that we have an advantage as first time home buyers.

Z33Art
02-11-2011, 05:11 PM
Yep, do not settle. And also think about when you eventually will be selling it. Things like railroad tracks may not bother you that much but may limit who will buy your house down the line when you decide to move. Check out the neighborhood at different times of the day by the house once you decide on a house too.

Get a GOOD inspector. Unfortunately the one I used past away, he found stuff that the previous owners one didn't because their's had been just a "yep looks good" kinda guy. The lady half of the people we bought from started crying when he told here the things he found because she thought we'd back out. Make sure they actually check out stuff(getting on the roof, in the attic etc.)

Related to home inspectors, does anyone have someone they would highly recommend?

Russ Jerome
02-11-2011, 05:15 PM
Short sales are a pain in the ass fyi.

I will second the short sale issue, if you have lots of time to wait the finacial savings can be rewarding at the same time. After 8 months of work by me "I" was able to push a short sale thru over the phone and thru e-mails via Texas on my present home, I came out WAY ahead.

Had a great buyer in Collen Cutchka at Shorewest, on the opposite end of the spectrum within Shoreswest is Nicole Morn....oh my god if you read her rap sheet she should be in jail!

There are some good threads in this forum if you dig back:
http://brewcitymuscle.com/forum/showthread.php?t=46714&highlight=shorewest

jbiscuit
02-11-2011, 05:16 PM
One thing that can be a plus about buying during the winter is pretty much every home on the market today was also on the market back in October. This has been a snowy/cold winter so nobody wants to move with 20" of snow on the ground. I would in a second if it meant saving $20k. SO if you are willing to gamble with the basement water issue in spring, you might be able to lowball an offer on a home this time of year. Be advised though that a lot of the homes for sale right now probably were bought at or near the height of the bubble and all those homeowners THINK their properties are worth much more than they potentially are. We looked at several homes in the fall right before the first snow, threw out some low numbers and the builder laughed at me.....4 months later his house is still on the market and he is paying to heat it every month. :) Maybe should have thought twice about my offer?

awsomeears
02-11-2011, 05:40 PM
Ive said this in a few past home threads....

" When you find a home you really LOVE get a Licensed inspector more or less for the legality of things, then hire a Roofer, Structure Mason, Carpenter, Plumber and Electrician "

For instance my work charges $89.95 for a Furnace inspection with no strings attached, meaning we will point out EVERYTHING that is wrong and that is Right !!!

I'd guess any of the other trades I listed would charge the same, well worth $400 out of your pocket to get guys in there that have been doing it for Years then some inspector that has General Experience. I'm not knocking inspectors because there are a few Smarts ones out there its that you investing you hard earned $$$$ shit better be taken serious

I know furnaces & A/C systems pretty dam well, I also know how to do plumbing pretty dam good but I wouldn't offer my " Plumbing Knowledge " based off someone purchasing a home.

Get a Pro in there !!!


Ive said this before in many other threads....

When you think you found the home of your Wet Dreams hire 5 or so contractors to inspect the Basement,HVAC,Plumbing,Carpenter,Electrician and hell a Good inspector that has Legal Insurance on his ass........

I used to say no Inspector but my tune has changed because of the Legal Stand point.....

Also inspect the home right after a Wicked Storm !!!!!! You will beable to see lots of different situations pop up. If not SWEEEET !

I feel so Naughty quoting myself !!!!

wrath
02-11-2011, 07:07 PM
Where are you looking at?

Two things are really important right now:
Location
Worth

Location is probably the most important. I suggest you go neighborhood shopping first. Then focus on houses in those neighborhoods. It'll keep you from bothering to look at houses in bad locations.

The worth is a fairly complex formula. It's especially difficult in temperamental areas where whether that 4th bedroom is worth $15k extra and whether or not "updates" are valuable or not.

I highly recommend buying a house that you can afford on whoever makes the most in your family. If not, the Gubmint recommends 28%/36% front end/back end ratios. So your entire cost of your house (principal, interest, taxes, insurance) can be 28% of your income. 36% can be the PITI and the remaining 8% can be for other fixed payments (student loans, car payments, revolving credit, et cetera that shows up on your credit report).

Below are some neighborhoods I selected.

This house is in my favorite neighborhood. This house would have sold for $240k a year ago:
http://www.shorewest.com/homes/1178548_METRO-W226N290_Mount_Vernon_Dr-Pewaukee-WI-53186-1636

The houses in Waukesha in that same neighborhood were selling for $220k a year ago. Now they're lingering on the market in the $190k range. If you do the math, they're worth in the $175k-190k range for a 3 bedroom 2 bath colonial. I made a lot of offers in this neighborhood in the $210-$220k. No one accepted. Several of those houses eventually sold in the $190k range.

This is another one of my favorite neighborhoods, on a budget but still safe. Two years ago a bargain was $180k. The neighborhood is worth about $140k for a 3 bedroom 1 bath.
http://www.shorewest.com/homes/1170651_METRO-1525_Pine_St-Waukesha-WI-53188-2349

This is my favorite yuppie neighborhood. It's expensive enough to keep out the riffraff, close to good schools, yet close to the expressway. Across the street (Meadowbrook/Merril Hills/TT/G) is Pewaukee. You trade a tax payment for a house payment and no sidewalks. This particular house has been for sale forever.
http://www.shorewest.com/homes/1169103_METRO-2722_Bristol_Ct-Waukesha-WI-53188-1339

Russ Jerome
02-11-2011, 08:35 PM
Zillow:
http://www.zillow.com/

Research your new neigbors, neigborhood and values first.
Priceless info for values and info sellers wont tell you about dream home.

Z33Art
02-12-2011, 05:55 PM
Looking mainly in Franklin.

Just downloaded Zillow.

Z33Art
02-12-2011, 06:01 PM
This is one of the houses we are considering and one oour favorites:

http://www.shorewest.com/homes/1179280_METRO-4111_W_Southland_Dr-Franklin-WI-53132-8460

Not the biggest but we love the yard and out of all the houses we have seen this one is in the best condition. Most of the newer more expensive houses we have seen are falling apart it seems. Seems like the building materials have really gone down in quality.

Plus it has an awesome heated garage!

pOrk
02-12-2011, 06:21 PM
I disagree with using Home Inspectors and agree to get a pro in there if you are concerned or worried about anything with the home. I had a 2 fellow BCM'ers come by and check on a few properties I looked at and I am REAL glad I did. I still owe them dinner matter o fact...

Russ Jerome
02-12-2011, 09:39 PM
]

Not the biggest but we love the yard and out of all the houses we have seen this one is in the best condition.

You need to pick a house YOU are happy with, your buddies idea of garage size or basement finish is un important. I wanted a big yard, woods for my birds and no thru traffic. In town many may not like my choice but for me this house is IDEAL for me..the dog...my wife...freinds barbaque's...fire pit nights...no traffic..rimfire shots at squirrels...cool neigbors ect :)

Z33Art
02-13-2011, 09:04 AM
You need to pick a house YOU are happy with, your buddies idea of garage size or basement finish is un important. I wanted a big yard, woods for my birds and no thru traffic. In town many may not like my choice but for me this house is IDEAL for me..the dog...my wife...freinds barbaque's...fire pit nights...no traffic..rimfire shots at squirrels...cool neigbors ect :)

I agree. That is why my wife and I like the house I posted the most out of about forty other house we have looked at. Nice yard, great neighborhood, good school district, nice house, and room for us to add to the house.

xxsn0blindxx
02-13-2011, 09:59 AM
The only thing I have to add is that you can contact WE Energies and find out the average utilities cost over the last 48 months. If you are debating between houses an extra $100 a month spent on energy costs can mean a difference of an extra $20k you could have spent on the actual house. In other words you will pay the same per month for mortgage plus utilities on a $209k house with a $200 per month utility bill and a $228k house with a $100 per month utility bill.

Dr.Buick
02-13-2011, 11:19 AM
I would call this guy

Mike Holmes

On Holmes Inspection, the smallest clues reveal the biggest problems.

Mike Says: Get It in Writing (http://www.hgtv.com/home-improvement/get-it-in-writing-a-contractor-talks-about-contracts/index.html)
this guy inspects a house. watch his show and learn

Z33Art
02-13-2011, 03:08 PM
The only thing I have to add is that you can contact WE Energies and find out the average utilities cost over the last 48 months. If you are debating between houses an extra $100 a month spent on energy costs can mean a difference of an extra $20k you could have spent on the actual house. In other words you will pay the same per month for mortgage plus utilities on a $209k house with a $200 per month utility bill and a $228k house with a $100 per month utility bill.

Good input since our two bedroom apartment already cost us more than a mortgage and cost just over $200 a month to heat. Hence why we are moving.

Z33Art
02-16-2011, 10:25 AM
Put in an offer on the house posted above and it was accepted! Now time for the home inspection.

jbiscuit
02-16-2011, 10:34 AM
Hmm. Doesn't look like a bad house but the asking price seems pretty steep? I just glanced at the ad for it. Is it on a lot of land or something? Did you guys lowball a price for it? I would have

Rocket Power
02-16-2011, 12:41 PM
Well at least someone will be paying higher property taxes than me:goof
$209k does seem high for a 1344sq ft house in this market even with big yard

wrath
02-16-2011, 06:09 PM
I'd find the oldest guy you can for an inspector. Preferably one that has worked in the trade for a while as either a contractor or laborer... preferably in the area. That way they know how shit was made.

An inspector is also there to find enough stuff so you can walk away from the house without losing your earnest money.

That house looks ripe for buried tanks.

Z33Art
02-17-2011, 12:42 PM
Hmm. Doesn't look like a bad house but the asking price seems pretty steep? I just glanced at the ad for it. Is it on a lot of land or something? Did you guys lowball a price for it? I would have

Large lot with large garage and hard wood floors throughout the house.

Z33Art
02-17-2011, 12:43 PM
I'd find the oldest guy you can for an inspector. Preferably one that has worked in the trade for a while as either a contractor or laborer... preferably in the area. That way they know how shit was made.

An inspector is also there to find enough stuff so you can walk away from the house without losing your earnest money.

That house looks ripe for buried tanks.

Buried tanks?

jbiscuit
02-17-2011, 12:48 PM
Large lot with large garage and hard wood floors throughout the house.

hardwood floors isn't an accessory to the home or an improvement, especially on an older home. Almost all older homes in the area will have hardwood under carpeting. Price still seems high to me for that house in this market, even with a large lot and garage :thumbsup

wrath
02-17-2011, 06:33 PM
Buried tanks?

Fuel oil/heating oil.

Z33Art
02-18-2011, 09:39 AM
Fuel oil/heating oil.

I will be sure to ask my home inspector about that.

CATNHAT
02-19-2011, 08:06 AM
I disagree with using Home Inspectors and agree to get a pro in there if you are concerned or worried about anything with the home. I had a 2 fellow BCM'ers come by and check on a few properties I looked at and I am REAL glad I did. I still owe them dinner matter o fact...

And some beers Porky!

wrath
02-19-2011, 09:33 AM
Did you go to the courthouse yet and look at the documentation on the house? If it's in a subdivision or relatively modern (80s) most municipalities have quite a bit of documentation on the house... all the way back to a site plan. City of Waukesha is really good at maintaining documentation. In fact, if it was built in the 80s in Waukesha they actually have energy audit information.

The permits will be on file also and then you can look to see who/what/when did the work.

The courthouse is your best friend, better than a home inspector and any hack contractor that is moonlighting as a sidejob.

Further, you need to do some research of your own. I've found that most people in the wannabe inspection business (included "perfeshinall" tradespeople) is that if they aren't at least 60 years old they don't know shit. If they just do "new construction" then they're pretty much worthless for inspection purposes. It's amazing how many 35 year old HVAC people there are that don't know what vermiculite is.

Z33Art
02-20-2011, 08:04 AM
I have not gone to the courthouse yet to look at the records. I think that is a really good idea and I'm going to do that this week. I have the inspector scheduled for the 26th. I did have my father come up from Illinois to go over the house with me. We found a couple things that the home inspector will most likely hit them on. Not really anything large but none the less.


Did you go to the courthouse yet and look at the documentation on the house? If it's in a subdivision or relatively modern (80s) most municipalities have quite a bit of documentation on the house... all the way back to a site plan. City of Waukesha is really good at maintaining documentation. In fact, if it was built in the 80s in Waukesha they actually have energy audit information.

The permits will be on file also and then you can look to see who/what/when did the work.

The courthouse is your best friend, better than a home inspector and any hack contractor that is moonlighting as a sidejob.

Further, you need to do some research of your own. I've found that most people in the wannabe inspection business (included "perfeshinall" tradespeople) is that if they aren't at least 60 years old they don't know shit. If they just do "new construction" then they're pretty much worthless for inspection purposes. It's amazing how many 35 year old HVAC people there are that don't know what vermiculite is.