my little pony
white women can't be trusted 3.0
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well if I dont see a black pot inside your glass pending house
Real Estate Questions
- Thread starter Matryeshka
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well if I dont see a black pot inside your glass pending house
once_upon
Do all the good. All the time.
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Well if you hire someone you can fire the next day, I suspect they aren't that interested in helping you. I know I wouldn't be motivated.
A good agent will assess your property, provide a realistic plan of action, take your goals and discuss feasibility of them, develop a marketing plan including open houses that he/she will host, etc.. someone you can hire and fire without reason really is not invested. A good agent will be honest if he/she thinks your asking price is out of line for area and condition of house. Ours was honest that our initial desire of $12,000 over her assessment was unrealistic, she would have listed it at what we wanted but said we wouldn't get that.
IIRC someone may have said she had a new roof because she replaced some tiles. If I was a buyer and inspection showed new tiles and not everything was replaced I would be negotiating for a new roof.
And if I was an agent who discovered that the seller wasnt completely honest, no matter if it was confusion on what new roof meant, I would be trying to get the best deal with potential new owner paying some but not majority of replacement.
/shrug. As it was said it's done.
Matryeshka
Euler? Euler? Anyone?
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Thanks everyone for the advice!
The whole process is overwhelming and all the $$$ signs keep adding up. Both from the thread and talking to three professionals I can’t see how anyone can afford a house. I will definitely be budgeting lawn care. I’m ashamed to admit this but I am on the other side of 35 and have never I think been within poking distance of lawn equipment. I don’t own tools besides and Allen wrench and a hammer. They are both purple, btw. So maybe not the most useful examples of their kind.
It just overall sounds like a terrible experience but if I can somehow raise my credit score by 60 itty-bitty points by April (which apparently is not as hard as I thought nor is my credit as terrible as I thought), I can qualify for a really great loan!!
So, I’ve decided on what I think I need instead of what I want. I hate new construction. I hate HOAs and nosy neighbors and the cookie-cutterness of it and how can it be put together with anything but prayers and duct tape if you build a neighborhood in four months? I genuinely hate the look of neighborhoods that are clearly the same builder.
BUT.
From this thread, my own research, and talking to friends/colleagues, I’m going to go with cookie cutter banality over charm. Charm is for people who are handy and have time and enjoy being covered in dust. I am not that person. There is a company here—DSLD Homes—that builds floss and duct tape houses but they have a great reputation.Three
colleagues of mine live in one and loved the whole process. They finance it, build it, and you just move in. I can live in an ugly house in an ugly neighborhood for my first foray into real
estate.
The whole process is overwhelming and all the $$$ signs keep adding up. Both from the thread and talking to three professionals I can’t see how anyone can afford a house. I will definitely be budgeting lawn care. I’m ashamed to admit this but I am on the other side of 35 and have never I think been within poking distance of lawn equipment. I don’t own tools besides and Allen wrench and a hammer. They are both purple, btw. So maybe not the most useful examples of their kind.
It just overall sounds like a terrible experience but if I can somehow raise my credit score by 60 itty-bitty points by April (which apparently is not as hard as I thought nor is my credit as terrible as I thought), I can qualify for a really great loan!!
So, I’ve decided on what I think I need instead of what I want. I hate new construction. I hate HOAs and nosy neighbors and the cookie-cutterness of it and how can it be put together with anything but prayers and duct tape if you build a neighborhood in four months? I genuinely hate the look of neighborhoods that are clearly the same builder.
BUT.
From this thread, my own research, and talking to friends/colleagues, I’m going to go with cookie cutter banality over charm. Charm is for people who are handy and have time and enjoy being covered in dust. I am not that person. There is a company here—DSLD Homes—that builds floss and duct tape houses but they have a great reputation.Three
colleagues of mine live in one and loved the whole process. They finance it, build it, and you just move in. I can live in an ugly house in an ugly neighborhood for my first foray into real
estate.
once_upon
Do all the good. All the time.
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Houses listed for the range you are looking at generally sell quickly in today's market, but there is always room for negotiations. Look at online reviews of agents, if they've sold in the area you are looking for, and if they represent the buyer for a property or they are one that represents both the seller and you. You should gravitate to one who will represent you.
I'm glad you have a better idea of what you will look at. Now onto the next steps!
I'm glad you have a better idea of what you will look at. Now onto the next steps!
MacMadame
Doing all the things
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Something to consider with new construction is that you don't know immediately if the builder has made a really bad mistake. Plus, there are all the extra costs that have you spending more than the house will appraise for. (New construction cost about 20% more than a comparable home that isn't new.)
But you can take advantage of that by buying one of these houses when it's only a year or two old. There is always someone who buys in and then finds they can't afford it and you can take advantage of that.
Once the neighborhood is 1-2 years old, everyone has landscaped so it's not so bare and you have a better idea of what the flavor of the neighborhood will be. i.e., is it going to young DINOs or flooded with small children or retired people or a nice mixture? Likewise, if there is some major issue, say with the sewer or flooding, it would start to be known at this point.
But you can take advantage of that by buying one of these houses when it's only a year or two old. There is always someone who buys in and then finds they can't afford it and you can take advantage of that.
Once the neighborhood is 1-2 years old, everyone has landscaped so it's not so bare and you have a better idea of what the flavor of the neighborhood will be. i.e., is it going to young DINOs or flooded with small children or retired people or a nice mixture? Likewise, if there is some major issue, say with the sewer or flooding, it would start to be known at this point.
sk8pics
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It's funny you say that, because here if you buy pre-construction it's cheaper than buying an existing house. Or at least it was. When I bought my first house, I bought it pre-construction and the price went up something like $15K in that year, but my price was locked in. The appraisal was fine, not more than I spent. Plus as a first time buyer I liked having a new house where everything was under warranty, so I could learn things gradually. And with the way prices were trending, it would have been hard for me to catch up if I tried to save enough to buy a comparable house already built.
TanithandBenFan
Author of the Ice and Edge Series
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My coworker's husband works for DSLD. ?
MacMadame
Doing all the things
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Maybe it depends on the part of the country? But every article I read when looking at new homes said there was a premium and a new home could cost between 17 and 30% more than a similar existing home.
D
Deleted member 221
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Re: US real estate practices, it's important to remember that it's fundamentally state and local. Experiences and laws from state to state differ tremendously. And re: broker agreements, typically everything is (in theory) negotiable.
Re: new construction, sometimes pre-construction buyers do get a discount of sorts because the builder needs a committed volume for financing reasons. And/or the builder needs a certain committed volume so that the buyers can get financing. Many US banks require a certain % of a development to be sold by a certain date before they'll approve financing if it's part of a condo association or HOA. The builder will keep prices lower until he/she reaches the critical volume necessary for financing, and then raise prices once construction starts. The early buyers are rewarded for pre-commitment (and typically for taking some risk re: possibility of rate changes, delays, etc.)
That said, I wouldn't be surprised if this is entirely different in areas where construction is not easy -- e.g., parts of California where NIMBYism keeps the supply of new construction to levels far below what the demand is. In that case, I would expect a price premium.
I agree that 1-2 year old houses can be a great value, especially in larger developments where construction may still be ongoing. When you can get something shiny and new for the same price, you generally don't buy something slightly used unless it's at a great (discounted) price or you can get great upgrades for the same price. Either way, the owner is typically taking a loss, which is your gain in a flat or slowly appreciating housing market.
Re: new construction, sometimes pre-construction buyers do get a discount of sorts because the builder needs a committed volume for financing reasons. And/or the builder needs a certain committed volume so that the buyers can get financing. Many US banks require a certain % of a development to be sold by a certain date before they'll approve financing if it's part of a condo association or HOA. The builder will keep prices lower until he/she reaches the critical volume necessary for financing, and then raise prices once construction starts. The early buyers are rewarded for pre-commitment (and typically for taking some risk re: possibility of rate changes, delays, etc.)
That said, I wouldn't be surprised if this is entirely different in areas where construction is not easy -- e.g., parts of California where NIMBYism keeps the supply of new construction to levels far below what the demand is. In that case, I would expect a price premium.
I agree that 1-2 year old houses can be a great value, especially in larger developments where construction may still be ongoing. When you can get something shiny and new for the same price, you generally don't buy something slightly used unless it's at a great (discounted) price or you can get great upgrades for the same price. Either way, the owner is typically taking a loss, which is your gain in a flat or slowly appreciating housing market.
Matryeshka
Euler? Euler? Anyone?
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Tell your coworker’s husband there are several happy teachers from Archbishop Hannan High living in his company’s homes in Covington and Ponchatoula! Maybe a fourth!
flyingsit
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New construction pricing is SO location- and situation-dependent. For example, in my neighborhood the demand is so high that there are ZERO incentives/discounts from the builders. The price is the price, period.
And in a new construction house, there are a lot of expenses to plan for right off the bat. Window treatments. Any appliances not included (for us it was the refrigerator and washer/dryer). Landscaping.
And in a new construction house, there are a lot of expenses to plan for right off the bat. Window treatments. Any appliances not included (for us it was the refrigerator and washer/dryer). Landscaping.
Matryeshka
Euler? Euler? Anyone?
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Yes, the company I’m looking at is starting to have homes for sale in the neighborhoods where building is still happening. There’s one for sale that is 154K and the base model is 163K. It would presumably come with the fridge, washer/dryer, and fence, which for the new build, those items would have to be purchased separately. I don’t particularly care about flooring (as long as there’s no carpet in the main living area—I’m OK with it in the bedrooms) or the cabinets or the kitchen counters (except tile, cause grout in a kitchen is gross). Having to pick out all that stuff sounds more like a headache than fun to me.
There are two issues though that would make me pause: the company I’m thinking of going with pays closing costs and will pretty much finance anyone and I won’t pay realtor fees. If I get an agent to buy one if these nearly-new houses, I’ll have to pay her fees, go through a bank with actual standards
, and possibly come up with closing costs cash in hand which I just flat-out cannot do. I live btw in Louisiana—it seems like we don’t have so many rules as other places and property is much cheaper (and all the good and bad that comes with both of those). Some of your advice applies, some doesn’t. What I need to be careful of is here you can get approved for WAAAY more than you can actually afford. A friend of mine and her husband make about $70K combined. Her credit is excellent; he had no credit (score in the 300s, cause he doesn’t trust “the man” or banks) and they were approved for 400,000!!
There are mortgage payment calculators online where you can plug in various loan and down payment amounts, interest rates, HOA and insurance, taxes, etc, and see what your monthly payment will be, to get an idea of what amount of mortgage you are comfortable with. It sounds like you are targeting a good price range.
Matryeshka
Euler? Euler? Anyone?
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Yes! I have had fun with Trulia. I can manage 1750 a month. That will leave me with just enough so that if I have any small emergencies—flat tires, broken water heater, etc.—I can handle it.
TanithandBenFan
Author of the Ice and Edge Series
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I'd like to move to the Northshore eventually since i work there, but I can't anytime soon since my elderly parents on the Southshore depend on me. There are so many luxury apartment complexes going up in Covington. I wish they'd build more garden home communities (ones normal people can afford). I'd like to continue to own and not rent, but I'd prefer to pay HOA and have the lawn, etc taken care of.
MacMadame
Doing all the things
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Where I live, the seller pays the real estate agents' commissions. Even the buyer's real estate agent! (Unless you negotiate otherwise.) It seems crazy to me, but having just sold one place and bought two in its place, it came in handy.the company I’m thinking of going with pays closing costs and will pretty much finance anyone and I won’t pay realtor fees. If I get an agent to buy one if these nearly-new houses, I’ll have to pay her fees, go through a bank with actual standards
Closing costs vary but most of the typical ones are seller expenses as well.
D
Deleted member 221
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While everything is in theory negotiable, this is customary virtually everywhere in the US (and probably across the world).
This depends heavily on state/local customs. In Philadelphia, the transfer tax is customarily split 50-50. Property taxes get paid only once per year, so the buyer usually has to reimburse the seller for a significant sum of money. A year of insurance is often required to be paid upfront. The buyer also pays title insurance at settlement (which I think is probably true everywhere?).
In New York City, in addition to the transfer tax, there was a "mansion tax" on anything above $1mm (some studio apartments), and a large mortgage recording tax on condos or single family homes (but not co-ops). In 99%+ of cases, the buyer pays the mansion and mortgage recording taxes, which can be a huge bill.
In the UK, the closing costs also seem to lean more toward the buyer. The buyer customarily pays 100% of the "stamp duty," which has risen to eye-popping levels: 12%(!!!) marginal rate on anything above 1.5m GBP (so some two bedroom apartments in London), or 15% if it's an investment property.
once_upon
Do all the good. All the time.
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We paid the comission which was split between the seller and buyer's agent (she got the major part of it and it was less than I had thought it would be before we signed). Closing costs were paid entirely by buyer. It does vary by state and by offers.
We had one offer that was much higher than our list price but they wanted us to pay closing costs - it was obvious they didn't have the cash to pay closing costs, which put it around the same as the offer we accepted. And the one we accepted had nothing for us to do if anything was found on inspection and was still over asking price. I'm 75% sure the buyer is flipping it, but that's on them not ours anymore.
We had one offer that was much higher than our list price but they wanted us to pay closing costs - it was obvious they didn't have the cash to pay closing costs, which put it around the same as the offer we accepted. And the one we accepted had nothing for us to do if anything was found on inspection and was still over asking price. I'm 75% sure the buyer is flipping it, but that's on them not ours anymore.
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Save for a big emergency, babe. We have weird hot-water HVAC and the unit is on the roof of a big condo. $9000 to replace it in the 19th year of its life after a few repairs kept it limping along the last three years.
A roof, flooding (you live in Louisiana!), foundation damage, all are in the five-figure range. Stick $10K in an account and don’t touch it.
