Home Buying.

Discussion in 'Off-Topic' started by ShadowWolf, Feb 16, 2011.

  1. ShadowWolf

    ShadowWolf New Member

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    I have either lived in military housing or rented my whole life. The wife and I are ready to buy a house. I am a newb, I need advice.

    I basically know about as much as any normal non-incompetent adult would know, no more.

    I'm looking for tips, general advice, or maybe a (short) barney style overview of the whole process. I am not ashamed to say I am somewhat ignorant on the topic.

    Much appreciated! We can't wait to get out of this stuffy apartment.


    I should also mention we are going for the VA home loan (actually only a loan guarantee, I know that much)
  2. MSP

    MSP Haunting a dead forum...

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    Get a real estate agent you trust! My guy was ex military intelligence and totally awesome. Make a list of what you think you want in a house - school district (IMPORTANT), amenities, budget, etc. And then start searching the MLS in your area and do the homework. I bet I spent 120 hours researching before we bought our current place. I knew the neighborhoods of interest like the back of my hand, could drive by a place and accurately guess the value, etc. And for Jah's sake hurry before rates go up! The market is starting to recover and you might miss the bottom.
  3. tex

    tex jive turkey

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    Its not 100% that its starting to recover, its still more or less flatlining: http://www.economist.com/node/18070210
    (chart near bottom)

    Although rates have creeped back up slightly. We narrowly missed 4 -> 4.25% and ended up getting 4.375%

    on top of the "get a good realtor" advice, I would add to do some research on mortgage companies, and specifically the person within that company you will be working with. I am not sure if VA loans go thru the normal mortgage channels (FHAs do, so maybe,) so that may not apply to you.

    Get a long option period and offer shit money for it. From what I have heard, most realtors try to get you to do short and $$$, but if you ask for long & offer little, it will usually be accepted. Our option period was 2 weeks and we used most of it.
    (Option period is where you have agreed on a price, but get a period to inspect/poke & prod, tell the owner fix this shit, etc. and can back out if you want, but you lose your option money. We put up $100 for the option money)

    also, it will likely take fucking forever to go thru the process. That was my biggest complaint. Make an offer, wait for other party to respond, negotiate, wait, sign papers, wait, sign more papers for option period, wait, renegotiate, more waiting, etc.
  4. mistawiskas

    mistawiskas kik n a and takin names

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    Just keep in mind that the market is not recovering as some would try to get you to believe as a marketting tool for themselves. Arm yourself with some facts: http://www.thinkbigworksmall.com/mypage/archive/1/29027
    There are good deals out there but beware of who they are a good deal for. I have never seen the real estate market employ "used car sales tactics" as much as they are right now. The homes that people are being steered towards are the lemons. The first and oldest sub-prime foreclosures.
    Our company built those homes with integrity and we were not big enough to pay off the right people. But we were building in some developements that we witnessed some of the big contractors slapping shit together that in no way should have passed any inspections. we we5re framing and taking to framing inspection 6 homes a week. Some of those big guys were taking 20+ to inspections per week. There was an instance where I was siding on the second story of a block of 4 homes where we were watching this set of crews setting BCI's while standing knee deep in water. That run of homes was at the bottom of a hill and no drainage was provided as per code. I was saying how those were all law suits in the making because of moisture under the houses. These weren't cheapo homes, they were listed at 400+. The frenzy by the big banks was so great to get into the suprime scam that there were huge payoffs being made and the greasing of palms had to be extreem. That same developement a year later? 35 lawsuits for substandard building and black mold........then the foreclosures. In large part, these are the homes that you will most likely be steered towards right now. I'd be looking into older homes myself. Ones built in the 60's,70's and 90's, not the 80's or new millenium. The mortgager will require an inspection. Do not trust it! Spend a few bucks and have someone you trust do the inspection also. The way that works is that the bank orders the inspection, a reputable home inspector checks out the home for defects and bugs/wdo. He submits an inspection report to the realtor and bank with remedial recomendations. Now the realtor takes over and hires the lowest bidder to "fix" the problems as cheap as possible. That cost comes out of their commission BTW. We call those jobs "bubblegum & tape" jobs. I don't make the lowest bids but get the work later down the road when the bubblegum and tape falls apart.
    Buying a home is a big deal, just go with a reputable realtor, get title insurance and a thourough, very complete search of: liens, levies, assesments, easements, past mortgagers, tax info and never....repeat never let a salesperson try to tell you the markety is on it's way up. They're lying to you if they do and if they'll lie about that,
    they'll lie to make the sale in other areas.
  5. MSP

    MSP Haunting a dead forum...

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    Ditto, I bought one from '83 because the build quality on the newer stuff I saw was shit. So why wouldn't you buy from the 80s? Just curious.
  6. mistawiskas

    mistawiskas kik n a and takin names

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    Nearly the same thing happened in the early 80's as in 2007. This bubble/ponzi is not a new thing. It is a formula that has been exploited for decades. I'm not saying that all homes were built like crap during those taxpayer ass rapings, but it is a concern to investigate. Home sales are as shadey as used car sales. The first options presented by lots of realtors are the ones that'll net the highest profit and are the worst that are in need of offing to the first suckerz possible. Those are the ones to steer clear of and consequently the ones that the market is full of right now. IE: Just because there are new tires and fancy rims on a used truck, doesn't denote a quality deal. The same holds true for homes right now.
    There's a lot of work simply putting in new windows/doors (average job cost of $2500.00), new granite countertops (average job cost of $2000.00) and all new paint and flooring (average jobs costs of $4500.00) and exterior paint/spruce-up (average jobs costs of $3000.00) with a potential return on investment of 200+%. Add that to the math noted in the vid I posted and there's a real opportunity for stockholders there. This all equates to doing one the favor of really checking a place out thouroughly including the original contractor and every aspect of ther build as possible. Just as there were good years for autos, there were better years for home builds and years that more lemons entered the markets. Not saying all homes made during those times were bad, but those are the vintages to really put a structure under a magnifying glass.
    Things to look at when arriving at a home for sale:
    * nieghbors/hood
    * rooflines: are they strait?
    * sidewalks and driveways: any cracks, signs of poor maintenance?
    * general exterior paint, sidings, trims. has the place been rigorously maintained? not just spruced up for sale?
    * landscaping: same as above?
    * land drainage

    Things to notice when you turn the key and open the door for the first time with the realtor:
    * smell
    * door allignment
    * draft/air movement
    * humidity in the air
    * general overall level of cleanliness
    * how fast the real estate agent starts talking when you enter the home ( Hmmmmm..... :-k )

    You'd be very surprised at how many people will ignore or forget the above critical conciderations because there's new granite in the kitchen, new cabiets and fixtures in the bathrooms and new carpet in the living room.
  7. Miller

    Miller Tweak Guru

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    My few tips of advice, get yourself a buyers agent, one you know and trust if you can. Mine (my best friend) found my house for me and did a ton of work. and they are free (seller pays for it). Then get yourself a good reputable home inspector. Mine found all kinds of problems that me and my dad didn't. he gave me a 23 page report after spending 3 hours inspecting my house. some give you a check list after spending 30 minutes.

    Good luck!
  8. tex

    tex jive turkey

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    You sure thats how it works? We got our own inspector and worked with the owner to get any repairs done, which had to be agreed upon by both parties (so there was no self-fixing bullshit.) The bank didn't give a shit what happened as long as it got fixed. That is pretty standard down here...
  9. mistawiskas

    mistawiskas kik n a and takin names

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    The realtor was lucky you took the bull by the horns too. As you stated: "The bank didn't give a shit what happened as long as it got fixed".
  10. czechrboard tassia

    czechrboard tassia Likes gay people.

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    Yo, I got mad connections for you :)

    Call this lady, she'll be happy to answer your questions. Idk if she knows anyone in your area personally, but we have a great referral and relo network through CARTUS and a great military relo division too.

    [video=youtube;txnml2e_TSI]http://www.youtube.com/watch?v=txnml2e_TSI&feature=player_embedded[/video]
    [video=youtube;PQfZ4VgSuoE]http://www.youtube.com/watch?v=PQfZ4VgSuoE[/video]
  11. Miller

    Miller Tweak Guru

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    Yea thats not how it works around here. After an offer is accepted, the buyer hires a inspector to go through the house, and anything found can be negotiated to be fixed (at the sellers cost, or split cost between the seller and buyer.) or the sale can be scraped. Then an appraiser comes through to make sure there are no major defects with the house, the lender wants to make sure the house will last 30 years.

    With my house, I negotiated the seller to upgrade the electrical service. They were going to put in a 100 amp service and I paid 500 to have it upgraded to a 200 amp service. Total cost of that was 3500.

    Then the appraiser came through, and required 3 sheds to be removed ($1200.00) kitchen floor and sub-floor to be fixed and replaced ($600). Basement wall to be fixed ($3500.00) all on the sellers dime. They also wanted light fixtures replaced and floor fixed in one of the bedrooms, which I agreed to do (me and my Realtor came out here on a Sunday and took care of it)

    After all that, the well and septic were tested, well failed and had to be re-drilled ($10,000.00), and some drains had to be re-plumbed ($1,000.00) seller paid for all of this.

    Bottom line, get a good buyers agent (free, they are paid by the listing agent. a listing agent of a house cannot represent you as a buying agent, conflict of interest.) that can negotiate all this for you. And get a good inspector.

    Also watch out for cheaply build houses, plastic pipes, aluminum wire, flex duct/fiberboard duct.
  12. czechrboard tassia

    czechrboard tassia Likes gay people.

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    THIS. Move to California-I can recommend a good everything for you here :)
  13. mistawiskas

    mistawiskas kik n a and takin names

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    ^^^yeah, this is the gal to listen to. She's in the biz more than most anyone on here. When you need your car worked on, go to a mechanic. When you're talking real estate go to a realtor. I can and only speak from my side of the equation.
  14. tex

    tex jive turkey

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    Not the point. It was my final approval on any repairs, not the bank/realtor. They had a list of stuff to qualify for the mortgage that had to be fixed, and I had to sign off that it was taken care of. I guess the lenders/realtors here just dont suck as much as everywhere else?

    Move to california! Break off into the ocean! We're bankrupt, give us your taxes please please please =p
    Are you a realtor now or something? I thought you were trying to be an actress or soemthing?
  15. mistawiskas

    mistawiskas kik n a and takin names

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    It doesn't so much involve the realtors as it does the state laws and statutes governing contract law and real estate/banking transactions. Much the same as every state regulates insurance as they see fit.
  16. Torx

    Torx Indigenous Nudist

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    shiiiiittttt.. fuck i dread house shopping.
  17. czechrboard tassia

    czechrboard tassia Likes gay people.

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    Lol... Film producer.

    I'm a Marketing director for a real estate company out here.
  18. ShadowWolf

    ShadowWolf New Member

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    So we were driving around looking for places, saw a house we liked the looks of and it was having an open house tomorrow. We found the listing online later, and so I filled out a form on the page for more information. I was then contacted by a real estate agent who wants to meet me at the open house.

    This is NOT the sellers agent, it is an agent that belongs with the group with whom's site I found the listing on. I did some recon and she checked out pretty good. I have heard good things about the group she is with as well. We will see how it goes. If we like her we may stick to her.

    Thanks for all the info, I will keep everything I absorb in my back pocket as I go through all of this. I feel that especially impressed upon me is the importance of the home inspection!
  19. MSP

    MSP Haunting a dead forum...

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    My buddy always picks his realtor at open houses, based on how hot she is. lol
  20. MaesterB

    MaesterB King of the Wicker People

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    All I can offer for advice is make sure you get everything in writing. We asked to have our house cleaned. The realtor who was selling the house said they'll get it done. Wow...it didn't get done and we moved into a mess. Oh well.

    Just make sure everything is in writing and signed on because then you have legal recourse if something written and signed on isn't done.
  21. Miller

    Miller Tweak Guru

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    pics?
  22. JZL

    JZL Ministry of Whack

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    I can't see that anyone here has come right out and said so, but the best advice I got 13 yrs. ago was to get my loan pre-approved before I did any serious shopping around. You have an idea of what you can realistically afford and your offers have more "clout." Also remember that just because you're approved to a certain amount that anyone else has to know how high that amount is.

    Whether this is still valid advice after the housing/sub-prime bubble I honestly don't know.
  23. Miller

    Miller Tweak Guru

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    Yea, go get pre-approved otherwise your just wasting your time. what you think you can afford and how much of a loan you can get may be two completely different things.
  24. ShadowWolf

    ShadowWolf New Member

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    house.jpg

    We saw it today. We loved the place. We loved the lady we met up with. I am going to meet with a banker tomorrow to try and do a pre-approval (said real estate agent going with) to see what amounts I qualify for.

    I know my credit score, it's not bad, but not great either. Anyone know about what score I would need to guarantee approval?
  25. Miller

    Miller Tweak Guru

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    They take many things into consideration, not just credit score. Outstanding debit (auto loans, student loans, credit cards etc...) income, down payment, interest rate then they tell you how much you can get.