Purchasing a Home

[Vanimal46]

I've been on the hunt for a new house, and let me tell ya, it's very stressful in a hot market like Austin, TX.

 

Any tips, experiences, funny stories from your first time trying to buy a house?

[howeda7]

Don't offer to use the seller's realtor. It seems like a way to save 3% and share the savings. But they won't. And they won't represent you equally.

 

Also be wary of blanket waivers like them asking you to wave any home inspection items under $1,000. They will frequently low-ball the cost of some repairs, and even if they don't 4-5 $800 items adds up fast.

[diehardtwinsfan]

 

I've been on the hunt for a new house, and let me tell ya, it's very stressful in a hot market like Austin, TX.

Any tips, experiences, funny stories from your first time trying to buy a house?

I can give you a tip or 4... My wife and I do a bit of real-estate on the side, so this isn't terribly unusual.

 

• I'm assuming you have a lender lined up. Don't hesitate to shop rates and what not. You'll nearly pay the purchase price in interest over the course of the loan, so that lower rate is better. 
• Know your budget for things like a mortgage payment in advance. Note the quoted payments often have only P/I and not necessarily the escrow.
• Lenders/realtors also will try and sell you as much house as you can buy, if not more. Don't fall into that trap. Buy what you need. There's always something nicer/more expensive on the market.
• Escrows are often underfunded. You should be able to calculate the approximate amount on your own. You should have a good idea on the yearly taxes as well as well as insurance amounts. What will happen is that you get a letter in a year saying your payment is going up due to this. It's not a big deal, but if they fund it right, those changes will be minimal. 
• Avoid PMI where possible. Your lender will know the down payment amount to get away from PMI. If you have to pay it, make sure you know the terms to getting it removed. You may need a re-appraisal. Some lenders though won't let you remove it when the house comes in higher. Usually that means you're putting 20% down to avoid PMI. 
• Are you buying this alone or with someone? You may want to think about down the road type items, you can always sell and buy again later, but that is expensive to do... so if you've got kids or planning on having them, thinking about schools means you aren't relocating when kids come around because you bought in an area with bad schools. 
• Pay attention to things like HOA fees/dues.  
• How handy are you? You'll be on the hook for all repairs. The more you can do yourself, the cheaper that is. 
• I'd highly recommend using a realtor for your first transaction. Sellers pay the commission. Using one will not cost you anything more. Get your own realtor and work with him/her.
• Inspections have changed a lot. They can kill a deal (which isn't necessarily a bad thing for a buyer). Get it inspected. It's worth the money.
• You can usually get the seller to thrown in a home warranty, though in my experience those are worthless as the warranty company will go out of their way to not pay a claim. 

[Squirrel]

Well ... make sure it's within the budget you want. Set that first before you start looking. Don't let anyone try and sell you more cost to up their bottom line. When I first moved to Chicago and bought my first home here, I went to get pre-approved. (Make sure you are pre-approved.) The loan officer took a look at all my financials and credit rating and said, 'You're good to go ... how much do you want?' I'm like ... uh, what? They would have given me a loan for $500k if I hadn't said, 'Wait, what can I afford?' I made him work backwards by telling him what I was comfortable paying each month, how much I was planning to put down and we worked out a price range to look at, and then I purchased at the bottom end of that. The last thing you want is to be house poor. Keep in mind when you budget for what you can pay each month in a mortgage payment, all the other expenses ... insurance, taxes, home repairs/maintenance, and just all stuff you'll now need to purchase to keep up with maintenance and yard work, etc. I mean, you move in and an appliance goes kaput. Make sure you consider these things into your budget.

 

(Oh, and I don't escrow my taxes and/or insurance. I prefer to pay for it myself so I know it's paid on time. I did this on my first home and it just made it easier, but I don't do that now._

 

Not only be realistic about what you can afford, but be realistic in how much house you really need in space and amenities in your first home. Sometimes you can get more house if you look at condos or townhomes. I know you have a dog and yard is important, but consider a little less yard as long as you are near and have access to parks and dog-friendly places.

 

If you buy a project house, for your first home, don't do too much all at once. You are getting your experience in with your first home, so take some time figuring out exactly what you need to do right away and what you can do over time. This can also be a money suck right off the bat ... so take your time to think it all through before you jump in. 

 

My first house ever, in St. Paul ... before I moved in, I pulled up all the carpet, took down all the wallpaper, took down all the window treatments and laundered or tossed them, redid the wood floors underneath and painted every, single wall, in every single room, and had the upstairs, finished attic space recarpeted. I was fortunate, that on a house that old, that when I took down all the wallpaper, whoever put it up properly prepared the walls underneath so I could paint right away. But, I literally had to do all this ... the previous owners were heavy smokers and it was the only way to get all that smell out. And I had a week to get it done. Some of the painting took place after I moved in, but that was a lot to do in a week. But I really loved that little house. Heh ... and I won't tell you what I paid for it back in the day ... 

[Badsmerf]

I don't agree that you won't pay more for a realtor.... prices are always passed to the buyer. I'm no fan of using realtors, they are pointless in my opinion. I bet there are for sale by owner ion Zillow to check out. Make sure you get a thorough inspection, regardless of buying from a realtor or not.

 

Take your time, don't get pressured into a sale. Know what you want, and where. Know the market and the areas that are desirable for what you're looking for. Create a list of things you want in a house and things you don't want.

[Mr. Brooks]

I don't agree that you won't pay more for a realtor.... prices are always passed to the buyer. I'm no fan of using realtors, they are pointless in my opinion. I bet there are for sale by owner ion Zillow to check out. Make sure you get a thorough inspection, regardless of buying from a realtor or not.

 

Take your time, don't get pressured into a sale. Know what you want, and where. Know the market and the areas that are desirable for what you're looking for. Create a list of things you want in a house and things you don't want.

Prices aren't "passed on".

The market sets the price. The seller is already selling for the maximum that the market can bear, there isn't room to pass anything on.

[ashbury]

Regarding the mortgage, unless you expect to keep the house through most of the life of the mortgage, don't pay points to bring down the interest rate. Points are in effect a gamble the bank offers you - they are betting that events will cause you to sell early, you are betting that you'll stay long (usually more than half the life of the mortgage). The sales pitch they'll give you always is based on assuming you'll pay down the mortgage in year 30. If you're young and your career might prompt you to move, it's a bad bet, a waste of thousands of dollars that get rolled into the mortgage so that it seems painless.

 

I don't know anymore if assumable mortgages are common. That could change the calculation, but I'd still advise not to pay points. Assumable is always good, in itself, but such mortgages are sometimes less available when in a rising interest environment, which we keep getting told we're on the cusp of. And there's no certainty that when you sell, the next buyer will be able to make use of it. I think we got assumable mortgages, and the next buyer never benefitted.

 

Go for the shortest mortgage you can swing. That is useless/hostile advice for many, who are struggling just to get into a home at all. But if you look at amortization tables, you'll see why I at least suggest you think hard. The lower interest rate that comes with a 15-year loan means money in your pocket, and quicker financial security. See if your mortgage broker can be creative in this area.

 

If you don't get a shorter mortgage, build into your plan to pay a little extra every month anyway. Make sure the loan allows this, in the sense that the extra above the agreed monthly payment actually goes to the principal and isn't just carried forward toward your next payment, but I've never seen a loan that didn't play fair in this regard. Despite all the mumbo-jumbo you will hear (from brokers who don't understand what they are selling all that well), a mortgage is computed exactly like your credit card - interest is computed based on balance at a certain time each month, it's added to the balance, and then all your payments during the month are applied - lather rinse repeat, 12 times a year, for X number of years.

 

Discipline yourself to apply, say, half of any unexpected windfalls (job bonus, inheritance, even just a big gift) to paying down the mortgage, and use the other half for something fun or practical. I do not buy the argument that you are better off investing heavily while you still have a mortgage - the tax deduction is nice but doesn't erase the fact you are paying the bank money every month just for the use of their money. Maybe a true investment wizard could come out ahead, but you're paying taxes on profits then, so it's still pretty much a wash at best, and it may not be at best at all. It sounds like rube advice but I think everyone big from Warren Buffet on down will tell you this. It's the small timers who all have the complicated ideas.

 

Speaking of amortization tables, I think it's invaluable to have an app on hand. A mortgage is dependent on 4 values: Principal, Monthly Payment, Interest Rate, and Length. If you know 3 of these values, the 4th can be computed (with formulas best handled by a program). I found it useful, for instance, to try to determine what interest rate I would need to negotiate in order to swing a given mortgage - it would tell me what was hopeless versus worth trying for. It was a source of quiet pleasure to tell the bank officer what my monthly payment was going to be, and have them say "how did you know that"? Hey, it's just math. Anyway, a Google search on "mortgage rate calculator" today brings up a rudimentary tool right there on the results screen. You might find an app better than that, letting you compute any of the 4 values from the other 3, and showing you amortization tables and total interest paid. Even better is if it lets you specify all 4 values, which might not technically add up correctly, showing you for instance the amortization table and total interest paid if you make larger than required monthly payments, which as I said above is eye-opening. You can do what-if scenarios with the app until you find a deal you are comfortable with. The better prepared you are, the less dependent you are on someone else's honesty - the big company actually providing the money is usually pretty honest but I'm less trusting with the individuals on the front lines who will tell you one thing and then sell you another. If the numbers they are giving you don't check out with what the app is telling you, then they are selling you something else.

 

Of course, you have to know what size of down payment you can offer, to plan the mortgage meaningfully. The more down payment, the better, since some fees are based on the mortgage size and not selling price. But don't bleed yourself of every bit of available cash, because there are guaranteed to be unexpected expenses soon after you move in, no matter how carefully you get the place inspected or what kind of home warranty they give you. Water heaters and washers and ovens and even roofs have a nasty habit of going kerblooey shortly after you move in.

 

 

[Vanimal46]

<p>

 

I can give you a tip or 4... My wife and I do a bit of real-estate on the side, so this isn't terribly unusual.

 

• I'm assuming you have a lender lined up. Don't hesitate to shop rates and what not. You'll nearly pay the purchase price in interest over the course of the loan, so that lower rate is better.
• Know your budget for things like a mortgage payment in advance. Note the quoted payments often have only P/I and not necessarily the escrow.
• Lenders/realtors also will try and sell you as much house as you can buy, if not more. Don't fall into that trap. Buy what you need. There's always something nicer/more expensive on the market.
• Escrows are often underfunded. You should be able to calculate the approximate amount on your own. You should have a good idea on the yearly taxes as well as well as insurance amounts. What will happen is that you get a letter in a year saying your payment is going up due to this. It's not a big deal, but if they fund it right, those changes will be minimal.
• Avoid PMI where possible. Your lender will know the down payment amount to get away from PMI. If you have to pay it, make sure you know the terms to getting it removed. You may need a re-appraisal. Some lenders though won't let you remove it when the house comes in higher. Usually that means you're putting 20% down to avoid PMI.
• Are you buying this alone or with someone? You may want to think about down the road type items, you can always sell and buy again later, but that is expensive to do... so if you've got kids or planning on having them, thinking about schools means you aren't relocating when kids come around because you bought in an area with bad schools.
• Pay attention to things like HOA fees/dues.
• How handy are you? You'll be on the hook for all repairs. The more you can do yourself, the cheaper that is.
• I'd highly recommend using a realtor for your first transaction. Sellers pay the commission. Using one will not cost you anything more. Get your own realtor and work with him/her.
• Inspections have changed a lot. They can kill a deal (which isn't necessarily a bad thing for a buyer). Get it inspected. It's worth the money.
• You can usually get the seller to thrown in a home warranty, though in my experience those are worthless as the warranty company will go out of their way to not pay a claim.

Thanks for the great advice! I've been shopping lenders since a loan is just a commodity. I'm learning that new build communities like Centex, Pulte, etc. have preferred lenders they want you to use instead of Wells Fargo or a local credit union. I think it's lame you can't lock in an interest rate until the very minute you purchase a home... Right now I've seen rates around the same level of 3.75%.

 

I vetted out other friends and the realtor they used first before deciding to use a friend's dad of mine. I didn't want a realtor who is banking on my sale to eat... He's established, knows the market, and takes the time to teach me what I should be looking for in new builds.

 

I'm purchasing the house on my own with the intention of having my girlfriend move in eventually. This is going to be a starter home ideally under 2k sq. ft. and when kids come into play, I'd sell this for a bigger place down the road.

 

I've got a lot more to learn about escrow, inspections, and expected insurance payments.

[Vanimal46]

Take your time, don't get pressured into a sale. Know what you want, and where. Know the market and the areas that are desirable for what you're looking for. Create a list of things you want in a house and things you don't want.

Yeah as a fellow sales guy I understand creating urgency to move forward. Just today a sales rep at a new build community told my realtor another buyer is interested in the house we looked at yesterday and asked if I wanted to buy now... It was a cool floor plan and backed up to a green belt, but my gut says no... It will suck if the other buyer moves forward, but it wasn't meant to be if that's the case.

[ashbury]

Yeah as a fellow sales guy I understand creating urgency to move forward. Just today a sales rep at a new build community told my realtor another buyer is interested in the house we looked at yesterday and asked if I wanted to buy now... It was a cool floor plan and backed up to a green belt, but my gut says no... It will suck if the other buyer moves forward, but it wasn't meant to be if that's the case.

Concur concur concur. You will get all kinds of surprises at various points in the process, particularly so when all the fees are finally laid out near the end. "This is completely standard," you will be told. Do some homework and find out what the typical fees are in your locality, so that you can negotiate, and if necessary walk out.

 

Do NOT fall in love with the house. There will be another coming on the market next week, just like clockwork.

[Mr. Brooks]

Thanks for the great advice! I've been shopping lenders since a loan is just a commodity. I'm learning that new build communities like Centex, Pulte, etc. have preferred lenders they want you to use instead of Wells Fargo or a local credit union. I think it's lame you can't lock in an interest rate until the very minute you purchase a home... Right now I've seen rates around the same level of 3.75%.

 

I vetted out other friends and the realtor they used first before deciding to use a friend's dad of mine. I didn't want a realtor who is banking on my sale to eat... He's established, knows the market, and takes the time to teach me what I should be looking for in new builds.

 

I'm purchasing the house on my own with the intention of having my girlfriend move in eventually. This is going to be a starter home ideally under 2k sq. ft. and when kids come into play, I'd sell this for a bigger place down the road.

 

I've got a lot more to learn about escrow, inspections, and expected insurance payments.

I'd think long and hard about buying new construction as a starter home. The exception would be, maybe, if it's a very small development in a highly coveted neighborhood.

 

New construction houses in cookie cutter developments are like new cars, they plummet in value the minute you take the keys at closing.

That's fine if you plan on being there a while. It'll eventually recover it's value, but if there is a chance you sell inside of 8-10 years, you're likely going to take a hit, especially since the market is due to at least plateau, if not drop any day now.

 

Why would someone pay 300k for a house with wear and tear, when they can get a similar house, on a similar street, in a similar neighborhood, brand new, for that same 300k?

 

My younger brother used to have a job that relocated him alot. I tried repeatedly to warn him not to buy new construction, but he was just too enthralled with having everything be brand new.

Sure enough, he got relocated 10 months after closing, and took a 45k loss.

 

I don't mean to discourage you if you've already considered that and it's still worth the risk to you. Everyone has unique priorities. But for me, I want a starter home with as much potential for equity as I can stomach. Take a few short term inconveniences, knowing I'll only be there a few years, and that I have a chance to walk away with a huge chunk of "free" cash to put towards the house I actually intend to spend a big chunk of my life in.

[Badsmerf]

Prices aren't "passed on".

The market sets the price. The seller is already selling for the maximum that the market can bear, there isn't room to pass anything on.

The market is based on assuming 6% fee to realtors... therefore a 6% markup exists. Sellers factor in this fee, or they should. Without that 6% commission, a seller can sell for less and make more money. Therefore... the buyer pays. Eliminate a realtor, and you can spend less money.

[Mr. Brooks]

The market is based on assuming 6% fee to realtors... therefore a 6% markup exists. Sellers factor in this fee, or they should. Without that 6% commission, a seller can sell for less and make more money. Therefore... the buyer pays. Eliminate a realtor, and you can spend less money.

They aren't selling it for less.

The seller is selling without an agent so they pay less fes. They don't pass that savings on.

[gunnarthor]

I can't give you better advice than what is already in here so I'll just tell you my bad HOA story. We knew we were in a HOA and we paid a lot monthly for it but I never thought about what it meant. Then my front screen door got broken so I went to Menards, bought a new screen door and started working on it. My neighbor, who I had never talked to in over a year of living there, comes over and tells me that the screen door has to be white (I bought a black one) and if I don't go get a white one, he'll report me to the HOA. I hated that place.

 

Also pay the mortgage off as fast you possibly can.

[Brock Beauchamp]

 

Also pay the mortgage off as fast you possibly can.

Lots of good advice here but I'll add that if it's even remotely possible you can buy a house in a less desirable neighborhood on a 15 year loan, do it.

 

The savings are enormous, especially if you can overpay. I bought my first house at age 34 and had it paid off at age 40.

 

The interest on 30 year loans are crushing, no matter if you overpay or not. The interest starts at roughly 90% of payment, versus a 15 year loan that starts around 70%. And, of course, those loan interest rates drop at twice the rate for a 15 year loan, even faster if you can overpay (even by a few percentage points makes a big difference down the road).

 

As a starter home, you probably don't want to live there forever but having 30% of the principal paid off in a few years is a pretty big deal (and a good way to weather any drop in market prices to prevent going underwater on a home).

[Vanimal46]

I'd think long and hard about buying new construction as a starter home. The exception would be, maybe, if it's a very small development in a highly coveted neighborhood.

 

New construction houses in cookie cutter developments are like new cars, they plummet in value the minute you take the keys at closing.

That's fine if you plan on being there a while. It'll eventually recover it's value, but if there is a chance you sell inside of 8-10 years, you're likely going to take a hit, especially since the market is due to at least plateau, if not drop any day now.

 

Why would someone pay 300k for a house with wear and tear, when they can get a similar house, on a similar street, in a similar neighborhood, brand new, for that same 300k?

 

My younger brother used to have a job that relocated him alot. I tried repeatedly to warn him not to buy new construction, but he was just too enthralled with having everything be brand new.

Sure enough, he got relocated 10 months after closing, and took a 45k loss.

 

I don't mean to discourage you if you've already considered that and it's still worth the risk to you. Everyone has unique priorities. But for me, I want a starter home with as much potential for equity as I can stomach. Take a few short term inconveniences, knowing I'll only be there a few years, and that I have a chance to walk away with a huge chunk of "free" cash to put towards the house I actually intend to spend a big chunk of my life in.

I've gotta say Mr. Brooks, you're making me think twice about my search criteria... New builds interest me the most because I want a smaller probability for major repairs before I upgrade and/or relocate.

 

The area where I'm looking is a mix of established neighborhoods, new build communities, and farm land... There is confirmed construction of a new shopping/bar/restaurant area opening 2 miles from there.

 

https://eastvillageatx.com

 

I'd be gambling on the upside of living close to that, turning that $300k house into a $500k house because of location.

[Squirrel]

I've gotta say Mr. Brooks, you're making me think twice about my search criteria... New builds interest me the most because I want a smaller probability for major repairs before I upgrade and/or relocate.

The area where I'm looking is a mix of established neighborhoods, new build communities, and farm land... There is confirmed construction of a new shopping/bar/restaurant area opening 2 miles from there. https://eastvillageatx.com

I'd be gambling on the upside of living close to that, turning that $300k house into a $500k house because of location.

Keep in mind that new builds will get you with upgrades. Developers know just how much to charge to maximize profits but still make it worth it for them to do it and not have you do it on your own after you close and move in. Be extremely diligent on thinking through every detail. Upgrade now the things that would cost more to do later. For instance, when I bought my current condo, I bought pre-construction. I upgraded the master shower with body sprays and what not, but added extra cabinets in the kitchen at a later date. Adding/changing plumbing later on would have been more expensive and more involved than adding cabinets. Also think about upgrading the things that will bring more value down the road. And think about usage ... I added outlets here and there; and while I don’t have ceiling fixtures in the bedrooms, I added the ceiling junctions so fixtures can be added easily if I want them, or another buyer would. Anyway, if you buy new, all the upgrades add up. Think thoroughly what is worth to add during the building process vs just as easy to add later ... and budget for this. And insist on being allowed to walk through and inspect at various stages that what you want added has been. Once you close, getting them to work through the punch list can be difficult. And don’t hesitate to put off closing if things are not right during your final walk through.

[diehardtwinsfan]

 

I've gotta say Mr. Brooks, you're making me think twice about my search criteria... New builds interest me the most because I want a smaller probability for major repairs before I upgrade and/or relocate.

The area where I'm looking is a mix of established neighborhoods, new build communities, and farm land... There is confirmed construction of a new shopping/bar/restaurant area opening 2 miles from there.

https://eastvillageatx.com

I'd be gambling on the upside of living close to that, turning that $300k house into a $500k house because of location.

 

There are a lot of things outside of your control when you make that gamble.. I guess that's why there's a gamble. I'd pay close attention to what Brock, Ash, and I said about debt (especially if you have the wherewithal to get a 10 or 15 year note). You spend 300k on a house on 30 year, you'll play close to 300k in interest, and that's with historically low rates that we have today. You also will have banked virtually no principle if you sell again in 5 years.

 

As others said, buying a new construction home isn't good either. You won't start recouping that value until the builder is gone and the only thing being built in the area is much more expensive homes. If the neighborhood is a must, find a fixer upper that you can turn into a gem. Rates have been on the rise (though they may start dropping), so finding a distressed home may be a bit easier than you think.

 

Also, a lot of people fall into the trap of just selling again in a few years.. Keep in mind you'll have to pay 6% commission, moving costs, a boat load of closing costs, and then absorb the risk of having higher rates when you're buying again. That's another one of those things that's rarely a good proposition. I'm not sure what you make, and perhaps it's enough that it doesn't matter, but those are the kind of financial decisions that can set you back if you're not careful. 

 

Another thing I didn't mention above, but have a decent amount set aside in savings. House expenses happen... whether that's storm damage causing an insurance claim, a major appliance going out, etc. You can be smart and budget for replacing items, but they don't always behave on your schedule.

[Mr. Brooks]

I've gotta say Mr. Brooks, you're making me think twice about my search criteria... New builds interest me the most because I want a smaller probability for major repairs before I upgrade and/or relocate.

 

The area where I'm looking is a mix of established neighborhoods, new build communities, and farm land... There is confirmed construction of a new shopping/bar/restaurant area opening 2 miles from there.

 

https://eastvillageatx.com

 

I'd be gambling on the upside of living close to that, turning that $300k house into a $500k house because of location.

That's a fair concern regarding the worry about major repairs.

 

The flip side of that coin, is that anything likely to need to be replaced (>3 years old), is going to be downgraded in the appraisal. So you're effectively "banking" some of that risk on the front end, via a lower purchase price.

 

In the end it comes down to your comfort level. How handy are you, etc. If you know you won't sleep at night worrying about the foundation cracks, or the roof that might last 5 years or 5 days, then that needs to be heavily weighed. You can't put a price on peace of mind.

 

For me that wasn't a concern, as a contractor who has worked in nearly every trade during my career.

My wife and I considered all this 8 years ago, and ultimately decided to embrace the risk.

We bought an old house with good bones in a very old neighborhood (we have 2 Jack pines that are 100+ feet tall, and well over 80 years old) that was a bank owned foreclosure, and needed a complete gut and remodel.

 

I spent a month getting it liveable with builder grade materials, and we've done everything in stages since then, only starting each phase when we'd saved enough to do it with cash.

 

We got a 10 year mortgage, which would have never been possible for us with a newer, finished home, and it's already paid off.

 

Doing all the work ourselves, except for replacing the 100 year old clay main sewer line, has allowed us to do $160k worth of work for $55k over 8 years.

We're actually currently looking for our "forever home", and all the equity we've built is going to allow us to find that dream home with acreage on the lake that there is no way we'd ever be able to afford without the 200k + that we're going to be able to put down.

 

Obviously this isn't for everyone. There has been stressful moments along the way.

And, I've had to preach patience to my wife on a few occassions when she'd get jealous of all of our friends not living in a semi permanent construction zone.

But, as I told her along the way, they'll be the jealous ones when we're hosting beach parties on 300 feet of lake shore every summer.

 

I don't know your financial situation, and your future career prospects. If you'll someday be able to afford your dream home without taking the long way, then it's probably not worth the risk and inconvenience.

For us, this was likely the only path we had, and now that the end is in sight, we have zero regrets.

 

Whatever you do in the end, just weigh what is going to make you happy. You only live once.

Buying a home is a bit like raising kids. You're going to get all kinds of advice, from everyone and their mother, often contradictory. But at the end of the day, it's mostly just noise, and you go with what feels right to you.

 

I'd recommend you don't get locked in too hard in your search. Look at a mix of different types of homes in a mix of different types of neighborhoods. I expect that when you find the one that is right for you, you'll know it in your gut. Best of luck, and enjoy the process! Buying your first home is a major life event, take the time to smell the roses along the way.

[Vanimal46]

I found the winning house! Contract was signed today!!!

 

[ashbury]

I found the winning house! Contract was signed today!!!

Congrats and good luck! Various pitfalls await you, but with good planning you will clear them without trouble.

[Squirrel]

I found the winning house! Contract was signed today!!!

IMG_20190723_190230.jpg

That was quick! Congrats! New build?

[Vanimal46]

That was quick! Congrats! New build?

We got a lot done in a short amount of time! Kudos to my realtor who dedicated 7+ hours to me every Sunday for the last month and listened to things I liked in other homes we toured. I'm friends with his son and he was a father figure helping me along the way.

 

New build that will be complete at the end of August!

[glunn]

 

I've gotta say Mr. Brooks, you're making me think twice about my search criteria... New builds interest me the most because I want a smaller probability for major repairs before I upgrade and/or relocate.

The area where I'm looking is a mix of established neighborhoods, new build communities, and farm land... There is confirmed construction of a new shopping/bar/restaurant area opening 2 miles from there.

https://eastvillageatx.com

I'd be gambling on the upside of living close to that, turning that $300k house into a $500k house because of location.

Lots of good advice here.

 

As for the broker issue, yes you might negotiate a price reduction if you use the seller's broker or not using a broker. I have done this. But this is your first time and you need a good broker who represents only you and who can refer you to a great inspector. Without a great inspector you can count on bad surprises.

[Squirrel]

We got a lot done in a short amount of time! Kudos to my realtor who dedicated 7+ hours to me every Sunday for the last month and listened to things I liked in other homes we toured. I'm friends with his son and he was a father figure helping me along the way.

New build that will be complete at the end of August!

Make sure you hold onto your apartment through September, just in case.

[Squirrel]

 

Make sure you hold onto your apartment through September, just in case.

I say this based on my experience of buying new construction (although in my case it was a condo, not a single-family home). Developers want to CLOSE, they want their money. If something isn't quite done, they will still want you to close and promise to fix it all after. And they will ... they must ... but they have a year to complete their punch list (I don't know if that's different elsewhere). And believe me, once you've closed and they have your money, it can be excruciatingly difficult to get them to fix what was supposed to have been done before closing because now that they have their money and have other projects they want to complete, they have little motivation to get back to you as you are now an annoying bug they want to swat. (Very much a live and learn experience for me.) That's why I said above ... and check with your realtor on this, because I don't want to give advice and have you lose your house because of something I said to do ... but don't hesitate to say 'Oh, this and that and this and that isn't finished ... I guess we'll have to move the close date back until it's all done.' I don't know what the repercussions are with that, but, it's something I would do if going through this process again. (It's a longer story than this - too much to get into here.)

[Vanimal46]

Make sure you hold onto your apartment through September, just in case.

Luckily my lease expires on 9/30 so there's wiggle room in case if anything gets delayed. The home is nearly complete inside! They still need to do the landscaping outside and finish the privacy fence in the backyard.

[Squirrel]

 

Luckily my lease expires on 9/30 so there's wiggle room in case if anything gets delayed. The home is nearly complete inside! They still need to do the landscaping outside and finish the privacy fence in the backyard.

Sounds good! Just be very thorough in your walk through!

[Vanimal46]

How far can I push mortgage lenders to get the very best offer?

[Doomtints]

 

I found the winning house! Contract was signed today!!!

IMG_20190723_190230.jpg

 

I bought a house in Leander back in the day and it was very similar to this one. It was by the same builder. It was a good house, the only issues with the house were caused by the previous owner (and even those issues were mild).

 

We bought at the tail end of the housing crisis so we got a good deal. It was interesting... Identical floorplans in Austin were $200k, identical floorplans near Manor were $80k, and in Leander they were $130k. We sold at a huge profit a few years later.

 

Do you have the floorplan that you could share?