OT: Buying a house

vexvelour · #1 12-08-2005, 02:15 PM

As many of you know because of my angry 'asking for revenge on neighbors' post, I need to move. I currently split the rent here with my boyfriend for a total of $1080/mo., + bills.

I seriously am sick of tossing a grand to the wind every month and want to start looking for a house to buy. I still have about 3 years before I get my degree, and he's got a great job here, so unfortunately we're stuck here for a while.

I need some advice and help from those more experienced than me in this. I really have no idea where to start, or if the amount of money I have is even enough for a down payment. I have a moderate amount of debt, but not over my head- mostly school loans. For those of you who have braved the process, please answer some questions for me:

-First of all, would you settle for a house in place you don't really like but is a great turnover investment opportunity?
-Is it possible to find the house of my dreams without a real-estate agent, and if so, what's the best way to go about it? (Newspapers, driving around, internet...) What did you do?
-What are all the things I'm not thinking of? Secret taxes, hidden maintence things, things of that sort. This def falls into the life experience category.

Sorry that was so long winded. Any advice would be super.

samjjones · #2 12-08-2005, 02:19 PM

I cannot possibly answer this question without seeing a topless pic of yourself first.

Lottery Larry · #3 12-08-2005, 02:23 PM

Look at the Bulldog thread I just bumped.

vexvelour · #4 12-08-2005, 02:24 PM

Fantastic, thanks a bunch...mods can delete this thread.
Sorry!

jaydub · #5 12-08-2005, 02:24 PM

Vex,

You need to do some research on your own. Your post indicates a deep lack of understanding about loan structures. That is not good.

1. Be careful about estimating investment potential, but yes of course.
2. No, you don't need an agent.

Also be careful when buying with a non spouse. That can get messy especially if you're not careful with the legalese.

J

wh1t3bread · #6 12-08-2005, 02:29 PM

[ QUOTE ]
enough for a down payment.

[/ QUOTE ]

There are plenty of ways to finance a house without putting down a single dollar. Talk to a few lenders to see what works out for you.

[ QUOTE ]

-First of all, would you settle for a house in place you don't really like but is a great turnover investment opportunity?

[/ QUOTE ]

If it's good real estate market purchasing a house that you are planning on turning over in 3-5 years would be a decent investment. For a few hundred more a month that what you are paying now for rent you can probably own and start building equity.

[ QUOTE ]

-Is it possible to find the house of my dreams without a real-estate agent, and if so, what's the best way to go about it? (Newspapers, driving around, internet...) What did you do?

[/ QUOTE ]

Newspapers, craigslist, friends, co-workers, etc would be the best places to look. As a buyer though using a real-estate agent will cost you $0 (the agents make their commission from the seller). However if you can find a house without using agents you can probably work with the seller on a better price.

[ QUOTE ]

-What are all the things I'm not thinking of? Secret taxes, hidden maintence things, things of that sort.

[/ QUOTE ]

Property taxes, condo fees, home owner association fees, etc. Any seller should be able to tell you exactly how much they cost. Don't forget closing costs. These can be expensive (but some might be tax deductible). A settlement agent should be able to give you a good estimate on closing costs.

Also if you do go without a real estate agent make sure you get a decent lawyer to draw up or review your contract before you sign. This will only cost $200-$300 and is well worth it. Also, make sure you get a home inspection this will cost a couple hundred but it pays for itself if they find something wrong.

vexvelour · #7 12-08-2005, 02:48 PM

[ QUOTE ]
Your post indicates a deep lack of understanding about loan structures. That is not good.

[/ QUOTE ]

Yeah, no kidding, after I read that other thread.

However I have a finance guy at my bank that has helped me handle many things. He's the one who has planted the thought of buying a house and would be more than willing to help me find the best deal in my interests.

vexvelour · #8 12-08-2005, 02:50 PM

[ QUOTE ]
Property taxes, condo fees, home owner association fees, etc. Any seller should be able to tell you exactly how much they cost. Don't forget closing costs. These can be expensive (but some might be tax deductible). A settlement agent should be able to give you a good estimate on closing costs.

Also if you do go without a real estate agent make sure you get a decent lawyer to draw up or review your contract before you sign. This will only cost $200-$300 and is well worth it. Also, make sure you get a home inspection this will cost a couple hundred but it pays for itself if they find something wrong.

[/ QUOTE ]

great advice, thanks!

bwana devil · #9 12-08-2005, 02:58 PM

[ QUOTE ]
Vex,

1. Be careful about estimating investment potential, but yes of course.
2. No, you don't need an agent.

J

[/ QUOTE ]

number 2 is correct but i would recommend getting one. the buyer's real estate agent gets paid out of the seller's pocket from the sale of the home.

[someone may argue that the buyer actually pays for this because it is worked into the price yadayaadyadya. well, usually people cant knock 3% off doing this and the OP is not sophisticated about the real estate market as it is.]

get a good referral and find a good agent if you go this route.

bwana

jaydub · #10 12-08-2005, 03:20 PM

bwana,

Absolutely I would recommend the same. An agent in my mind is most valuable when it is time for a first time buyer to close. Many costly mistakes can occur at closing.

J