Sorry- house buying topic again

kvruns

I had more of a TV moment with my house than dress.  Not sure why, I'm normally not like that with things but when I walked in it really just spoke to me.  Of course it spoke to me to my detriment as I overlooked how much I hated the kitchen cabinets/countertops LOL

With houses I think staging makes a HUGE difference.  Good staging can make a meh house look awesome and bad staging can make an awesome house meh. I wouldn't rely on that feeling to make a purchase that big!!  Location, price, floor plan, growth potential, repairs/upgrades needed or wanted would be key. 

jenna8984

lovemesomemonster said:

@jenna8984 are you open to and looking at foreclosures and short sales? Only asking because both of ours have been one of these and it put us in a location on the second house we wouldn't have been able to afford otherwise so now we are sitting on great resale potential. Yes, they can take longer to close (short sale WILL take longer to close) but if you are patient and OK with doing cosmetic fixes they can be a good deal.

@lovemesomemonster Yes definitely. We did go inside one foreclosure because of the great location and size and we were like "we can totally make cosmetic changes". Then we stepped inside and the entire kitchen was gone-empty- down to the studs! The bathrooms were the same way, the hardwoods were all torn up, there was water damage and mold. It was WAY over our realm of fixing up, especially for the price. But yes, we are definitely open to looking at others.

@katieinbkln This will be our second and "forever" home. We know that could change and that nothing is really forever, lie Lynda said. But we already did the tiny 2 bedroom, piece of crap starter home that we fixed up for 25k and made a nice profit on. We're totally cool to do some updates again, but it just seems like getting the initial space and location to begin with is like impossible. We met with some builders and that option was not in budget either. Land prices here are 25% of our budget and then installing a septic tank would be another 20% since towns this far from the city do not have sewer hookup. That's the big kick in the teeth lol

I guess I'm just bitching and venting and there's not much I can do about it but keep looking!

jenna8984

kvruns said:

I had more of a TV moment with my house than dress.  Not sure why, I'm normally not like that with things but when I walked in it really just spoke to me.  Of course it spoke to me to my detriment as I overlooked how much I hated the kitchen cabinets/countertops LOL

With houses I think staging makes a HUGE difference.  Good staging can make a meh house look awesome and bad staging can make an awesome house meh. I wouldn't rely on that feeling to make a purchase that big!!  Location, price, floor plan, growth potential, repairs/upgrades needed or wanted would be key. 

@kvruns LOL. That was how it was with my first house! It was disastrous 50's from head to toe, but I was like oh yea, this is totally the one! I didn't even look at any others.

OliveOilsMom

jenna8984 said:

lolo883 said:

erinkelsey3 said:

FI and I looked for houses for about 3 months. We probably looked at 40-50 houses (ridiculous, I know). We found a few houses that were exactly as you described - we would have been okay living there but it wouldn't have been great - and it started to feel like maybe we should just settle for something that was just okay.

And then, right before we were about to give up and rent an apartment for another year, a house came on the market that was in our budget, with all of our must-haves. When we stepped in the house we were sold. 

So just from personal experience, I would say to stick it out until you find a house you love (unless you have a pressing need to buy a home quickly). I think people's home environments contribute a lot to their day-to-day attitude and stress, and it feels friggin great to come home to a house you love.

This might be an unpopular opinion, but I think when you're spending a huge amount of money on a home that you'll be in almost every day, you should get a place you love.

Yes and no. The trouble there is when you LOVE it, you're a lot more likely to make unwise decisions with all that money. You can get so blinded by dreams of your kid swinging in a tire swing from that tree in the back yard or Christmases in front of the brick fireplace that you overlook more important things.

Just keep it rational but realistic. Focus on actual must-haves and deal-breakers, and you'll be fine. Don't wait for magic or butterflies.

I know, I agree. It's just disappointing when it feels like I can't even get half of my must haves, when those must haves are not even over the top. Being in a good school district, a quiet neighborhood, good bones such as roof and foundation are seriously like our only must haves. Even things like a garage we told the realtor we can add on later. I guess I'm not trying to hold out for butterflies, but for these basic items.

Being that your wants are basic items.  Can you wait another year and save more money for a larger down payment over the year?  That larger down payment could get you into homes that meet your basic needs.

KatieinBkln

jenna8984 said:

lovemesomemonster said:

@jenna8984 are you open to and looking at foreclosures and short sales? Only asking because both of ours have been one of these and it put us in a location on the second house we wouldn't have been able to afford otherwise so now we are sitting on great resale potential. Yes, they can take longer to close (short sale WILL take longer to close) but if you are patient and OK with doing cosmetic fixes they can be a good deal.

@lovemesomemonster Yes definitely. We did go inside one foreclosure because of the great location and size and we were like "we can totally make cosmetic changes". Then we stepped inside and the entire kitchen was gone-empty- down to the studs! The bathrooms were the same way, the hardwoods were all torn up, there was water damage and mold. It was WAY over our realm of fixing up, especially for the price. But yes, we are definitely open to looking at others.

@katieinbkln This will be our second and "forever" home. We know that could change and that nothing is really forever, lie Lynda said. But we already did the tiny 2 bedroom, piece of crap starter home that we fixed up for 25k and made a nice profit on. We're totally cool to do some updates again, but it just seems like getting the initial space and location to begin with is like impossible. We met with some builders and that option was not in budget either. Land prices here are 25% of our budget and then installing a septic tank would be another 20% since towns this far from the city do not have sewer hookup. That's the big kick in the teeth lol

I guess I'm just bitching and venting and there's not much I can do about it but keep looking!

Ah, I see! I can see why that would be frustrating. Especially when you are basically looking for "structurally sound in a decent neighborhood." 

Are you locked into your exact town? I guess that would be the only other variable you could adjust...

lovemesomemonster

jenna8984 said:

lovemesomemonster said:

@jenna8984 are you open to and looking at foreclosures and short sales? Only asking because both of ours have been one of these and it put us in a location on the second house we wouldn't have been able to afford otherwise so now we are sitting on great resale potential. Yes, they can take longer to close (short sale WILL take longer to close) but if you are patient and OK with doing cosmetic fixes they can be a good deal.

@lovemesomemonster Yes definitely. We did go inside one foreclosure because of the great location and size and we were like "we can totally make cosmetic changes". Then we stepped inside and the entire kitchen was gone-empty- down to the studs! The bathrooms were the same way, the hardwoods were all torn up, there was water damage and mold. It was WAY over our realm of fixing up, especially for the price. But yes, we are definitely open to looking at others.

@katieinbkln This will be our second and "forever" home. We know that could change and that nothing is really forever, lie Lynda said. But we already did the tiny 2 bedroom, piece of crap starter home that we fixed up for 25k and made a nice profit on. We're totally cool to do some updates again, but it just seems like getting the initial space and location to begin with is like impossible. We met with some builders and that option was not in budget either. Land prices here are 25% of our budget and then installing a septic tank would be another 20% since towns this far from the city do not have sewer hookup. That's the big kick in the teeth lol

I guess I'm just bitching and venting and there's not much I can do about it but keep looking!

We saw our fair share of these too, it's amazing what can happen to these homes. Even some of the regular sale homes we walked in and walked out scratching our heads thinking "how can you live in that". Keep your chin up, you will find it! The second foreclosure we bought even had all appliances except the fridge which is not common, but you can tell they pulled all the doors our and replaced them with super cheap ones with gold nobs, and replaced all of the bathroom fixtures with terrible ones (house was built in 2000, there is no way this crap was original). The best surprise was found when cleaning.. nice globs of GUM under the counters.

julieanne912

scribe95 said:

We looked at a ton of houses and only ever really liked one. Eventually we decided to build and it was the best option. It's our forever home but not dream home (I mean come on, we couldn't afford everything we could dream of). I absolutely cried the first time I stood in it all done.

This was what we did.  FI had a really nice house in a nice area, I actually envisioned having our first child there etc, but we knew it wasn't our long term house.  But the market heated up and prices in that neighborhood went up, so we decided to sell and do the "30 year" house thing.  Obviously I know life changes and we may not be there for 30 years, but that's our intention for now.

It took a long time to build, about 9 months, 8 of which we were in a teeny rental since we needed the cash out of the other house to start this one.  It's a semi-custom so we picked everything, tweaked the floor plan, etc.  It's not my dream house (that would have cost twice as much), but it's beautiful and we got a lot of what we wanted.  We wanted a ranch style (ie one above grade story, no "upstairs" on 2-5 acres that would allow us to park our camper outside.    We got slightly over 1 acre, but got the ranch style and can park our camper outside.  I compromised on size... I wanted 3 bedrooms plus a den, or 4 bedrooms.  We got 3 with no den.

But, we have a full basement with 9 foot ceilings that we plan on finishing later when we actually need the extra space.  We could have gotten the larger ranch plan that was more the size I wanted that the builder offered but couldn't have afforded to do the full basement with tall ceilings, or hardly any of the nice finishes we did.  The location we are in is awesome, and we have a killer view of the Rocky Mountains.  We wouldn't have been able to build on the lot we have if we did the bigger plan either, as both neighbors on each side have the larger plan.

I've moved around A LOT.  I think 16 times since leaving my parents home at 18.  So, to me home is where your love is, whatever that is.  In my case it's FI and our pups.  I cried when we moved into this house though, because this is where our life is really starting together...his old house never felt like mine.  He proposed in the hallway on the day we moved in   So, you WILL find the house.  It may not be an OMG I LOVE IT moment, but as long as it's got what's important to you, that's what matters.

lyndausvi

My dad's company moved us around.   My parents would arrive in the new city and within 3 days they had a new house.    They did that about 8 or 9 times (not including the international moves).    

They were able to do this by sticking to their must haves, but not over-thinking the small stuff.  Location was very important to them.  Backyard.  4 bedrooms, 2.5 baths.  They were known to drive up to a place and reject is before stepping inside based on a location.  If it didn't have the above things they would not bother walking inside.   They pissed off a few realtors, but they knew what they wanted.  They didn't have time to waste on something they were going to reject anyway.

Settling to me is picking at house for the sake of owning a house.  Picking a house in a neighborhood you do not like.    Picking a house that didn't have SS appliances is not settling to me.   It's minor inconvenience that can be fixed.

littlemushroom

Here is a cautionary tale regarding foreclosures (and potentially what/how your inspector checks)...

The house we are in now was purchased from house flippers who got it as a foreclosure. No one lived in the home while they flipped it.

A week or two after we moved in, the sewer started to back up into the basement whenever we took a shower or ran the water longer than it takes to wash your hands. Turns out the owner who was foreclosed on flushed pens, lighters, wash cloths, you name it, which caused the pipe to the sewer to become clogged. There was just enough space that minimal water use could make it through, which is why there was no problem until people started living there and using more water. That was an extra 10k to dig up the yard, unclog the pipe, and fix the issue.

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

The inspector we used for our new house purchase runs the water in all faucets at the same time for 45 minutes and flushes all the toilets between 5 and 10 times during that time as well. That is not common around here, typically inspectors let it run for a minute/flush once/etc just to make sure it works and has no obvious leaks. If we had used our current inspector for the house we are in, we could have potentially uncovered the problem before we moved in.

In the end, foreclosures can be a great way to get you into a location you couldn't otherwise afford. Just keep in mind the hidden problems and make sure you have a substantial contingency fund to deal with things that pop up like that on top of what you know you need based on the things you can see.

hellosweetie1015

The way we lost our home last spring has made that "home" feeling pretty hard to find. When we were searching, my mother would leave every house in tears because it wasn't home. But she did have must-haves: a fence, four bedrooms or three and a bonus room. Stainless appliances were a plus. Nothing that had to be changed. In my sister's school district, and closer to town.

We found one that fit that bill. We've been here for a year, and while it will never be quite the same, it WILL be home one day. Because home - even your forever home, which is what our old house was - is more than just the building where your shit is. It's the memories, the people. The things that are harder to quantify are what takes a building with bedrooms and a kitchen from just a building to a home.

Don't compromise on your must haves. Space I would never compromise on in a purchase. Location can be squishier, but don't move too far away from it. Good bones could be squished around if the other two are perfect, if your budget allows, but again - good bones isn't a thing that should have to be compromised. I know trying to find what you want in a seller's market can seem hard, but hold out. The right house will come along, I'm sure.

lovemesomemonster

littlemushroom said:

Here is a cautionary tale regarding foreclosures (and potentially what/how your inspector checks)...

The house we are in now was purchased from house flippers who got it as a foreclosure. No one lived in the home while they flipped it.

A week or two after we moved in, the sewer started to back up into the basement whenever we took a shower or ran the water longer than it takes to wash your hands. Turns out the owner who was foreclosed on flushed pens, lighters, wash cloths, you name it, which caused the pipe to the sewer to become clogged. There was just enough space that minimal water use could make it through, which is why there was no problem until people started living there and using more water. That was an extra 10k to dig up the yard, unclog the pipe, and fix the issue.

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

The inspector we used for our new house purchase runs the water in all faucets at the same time for 45 minutes and flushes all the toilets between 5 and 10 times during that time as well. That is not common around here, typically inspectors let it run for a minute/flush once/etc just to make sure it works and has no obvious leaks. If we had used our current inspector for the house we are in, we could have potentially uncovered the problem before we moved in.

In the end, foreclosures can be a great way to get you into a location you couldn't otherwise afford. Just keep in mind the hidden problems and make sure you have a substantial contingency fund to deal with things that pop up like that on top of what you know you need based on the things you can see.

I'll add to this about the sewer! I HIGHLY recommend paying extra to get this inspected. It is not included in a typical home inspection which we learned on our first house and is totally worth it as highlighted above, it can be an expensive fix. A good inspection in any house is key, I am lucky that FI knows construction so he knows what to look for before we even put the money into that and how much things will cost to fix which helps. Going down the road of short sales and foreclosures you will see more bad than good, but there are still the good ones!

STARMOON44

Every time you post it sounds like either you've identified an area with zero inventory, or like you can't afford what you want. Are houses coming on the market in the locations you want and you just can't afford them? Or are these towns where actually only 10 houses a year come on the market.

If there are houses over your budget, I might look at paying less in a downpayment. 30% is a lot. Moving that target to 20% might open things up a bit.

But basically, yeah, sounds like you can't have what you want. Which sucks, but that's house buying for ya.

southernbelle0915

littlemushroom said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures. 

julieanne912

southernbelle0915 said:

littlemushroom said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures.

Happens so often.  During the real estate downturn a couple years ago, I worked in the foreclosure market, worked on a team that listed Fannie Mae properties.  We saw it all.  People would even take stuff like the furnace. 

Reminds me, before I met FI I met this guy on Plenty of Fish, he was newly divorced, and on the first date was telling me how he was going to be losing his house soon to foreclosure because he couldn't afford it on his own.  He said he was planning on pulling the windows out because he paid for them.  Needless to say there wasn't a second date, and that was the end of my stint on Plenty of Fish.   

VulgarGirl

southernbelle0915 said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures. 

Ya know if it's a good price...this could actually work for me. At least I wouldn't have to demo it.

KatieinBkln

julieanne912 said:

southernbelle0915 said:

littlemushroom said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures.

Happens so often.  During the real estate downturn a couple years ago, I worked in the foreclosure market, worked on a team that listed Fannie Mae properties.  We saw it all.  People would even take stuff like the furnace. 

Reminds me, before I met FI I met this guy on Plenty of Fish, he was newly divorced, and on the first date was telling me how he was going to be losing his house soon to foreclosure because he couldn't afford it on his own.  He said he was planning on pulling the windows out because he paid for them.  Needless to say there wasn't a second date, and that was the end of my stint on Plenty of Fish.   

I don't blame anyone for taking shit with them. The mortgage crisis was such a clusterfuck, and the only "accountability" trickled down to those least able to pay the price. 

Leaving shit/dirt/gum everywhere is a bridge too far for me, but I can't really get too mad when a house (general) you are buying for peanuts doesn't have all the amenities because its previous owners got hosed.

julieanne912

KatieinBkln said:

julieanne912 said:

southernbelle0915 said:

littlemushroom said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures.

Happens so often.  During the real estate downturn a couple years ago, I worked in the foreclosure market, worked on a team that listed Fannie Mae properties.  We saw it all.  People would even take stuff like the furnace. 

Reminds me, before I met FI I met this guy on Plenty of Fish, he was newly divorced, and on the first date was telling me how he was going to be losing his house soon to foreclosure because he couldn't afford it on his own.  He said he was planning on pulling the windows out because he paid for them.  Needless to say there wasn't a second date, and that was the end of my stint on Plenty of Fish.   

I don't blame anyone for taking shit with them. The mortgage crisis was such a clusterfuck, and the only "accountability" trickled down to those least able to pay the price. 

Leaving shit/dirt/gum everywhere is a bridge too far for me, but I can't really get too mad when a house (general) you are buying for peanuts doesn't have all the amenities because its previous owners got hosed.

Oh I get it too.  The majority of the houses we dealt with (this was in Central California) were people that were totally taken advantage of.  Many had very limited English skills, so who knows what they were told when getting the loans.  However the ones we actually met were ones who were still in the house, and we worked out cash for keys with them, so they'd have some money to get them on their feet.  If the house wasn't in good condition, no cash.  The ones that removed everything were long gone by the time we showed up.

As for POF guy, the only reason he couldn't afford the house was because they bought it based on 2 incomes, and then she left him for someone else, leaving him high and dry to pay for the house on his own.  That isn't the bank's fault. 

southernbelle0915

MagicInk said:

southernbelle0915 said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures. 

Ya know if it's a good price...this could actually work for me. At least I wouldn't have to demo it.

We were REALLY tempted. The layout and size of the master bathroom is enough to make me think about that house sometimes... And it would basically be like getting to customize everything and choose it all ourselves. 

But the layout was a little funky and we had a bad feeling like "what else did they do to this place...?" It was enough to walk away. Especially because there was SO much for sale at the time. 

lovemesomemonster

julieanne912 said:

KatieinBkln said:

julieanne912 said:

southernbelle0915 said:

littlemushroom said:

People in foreclosure or short sale are not typically happy about the situation. That is why some take everything of value (appliances, wood doors, etc). It is the stuff they do to the house that you can't see which is the bigger question.

Yes.. We looked at a foreclosure when we were buying. We walked the whole main floor and had to ask our realtor "so... where is the kitchen?" She goes "you're standing in it." Sure enough, there were marks on the floor were cabinets had been pulled up and plumbing studs on the wall. 

The people had taken EVERYTHING. There were no toilets, no vanities, no cabinets, no sinks, no tubs. They even ripped out some of the light fixtures.

Happens so often.  During the real estate downturn a couple years ago, I worked in the foreclosure market, worked on a team that listed Fannie Mae properties.  We saw it all.  People would even take stuff like the furnace. 

Reminds me, before I met FI I met this guy on Plenty of Fish, he was newly divorced, and on the first date was telling me how he was going to be losing his house soon to foreclosure because he couldn't afford it on his own.  He said he was planning on pulling the windows out because he paid for them.  Needless to say there wasn't a second date, and that was the end of my stint on Plenty of Fish.   

I don't blame anyone for taking shit with them. The mortgage crisis was such a clusterfuck, and the only "accountability" trickled down to those least able to pay the price. 

Leaving shit/dirt/gum everywhere is a bridge too far for me, but I can't really get too mad when a house (general) you are buying for peanuts doesn't have all the amenities because its previous owners got hosed.

Oh I get it too.  The majority of the houses we dealt with (this was in Central California) were people that were totally taken advantage of.  Many had very limited English skills, so who knows what they were told when getting the loans.  However the ones we actually met were ones who were still in the house, and we worked out cash for keys with them, so they'd have some money to get them on their feet.  If the house wasn't in good condition, no cash.  The ones that removed everything were long gone by the time we showed up.

As for POF guy, the only reason he couldn't afford the house was because they bought it based on 2 incomes, and then she left him for someone else, leaving him high and dry to pay for the house on his own.  That isn't the bank's fault. 

I agree, there are both sides to it! Of course the bank is going to want you to take out a bigger loan, they qualify people for way more than they should be spending (even now). We have been told both times that we qualified for close to 2X what we wanted to pay and it's really easy to get caught up in the "Ooo, if we spend this much more we can have this pretty one" and lose sight of reality. We take it on ourselves to step back and say "what can we afford if one of us loses our job" before jumping in.

We like to buy the distressed homes because of the good deal but it does weigh on my conscience that someone was forced out of it. I don't blame anyone for being angry that their house is being taken away from them  for whatever reason and taking some things they can make money off of. But I still don't get the vandalism, shoving stuff down the toilets is really not hurting the people you are mad at (the bank) it's potentially hurting the next innocent person.

jenna8984

STARMOON44 said:

Every time you post it sounds like either you've identified an area with zero inventory, or like you can't afford what you want. Are houses coming on the market in the locations you want and you just can't afford them? Or are these towns where actually only 10 houses a year come on the market.

If there are houses over your budget, I might look at paying less in a downpayment. 30% is a lot. Moving that target to 20% might open things up a bit.

But basically, yeah, sounds like you can't have what you want. Which sucks, but that's house buying for ya.

Both. Within 60 miles, we already canceled about 10 towns off our list because they just are impossible for our budget. We canceled about 5 towns off due to bad schools. So we are left with about 10 towns to chose from, which all have very low inventory. And the inventory they do have, we're finding sucks. But it's not like we're sitting here trying to get into those other 10 expensive towns- we know that's not possible and we are being realistic.

As for the downpayment, it makes no difference and doesn't allow us to up the budget at all. I'm just going to make up numbers here but say we want our payment to be under 10 cents per month. In order for that to happen, we cannot get a mortgage more than $10. We have $3 in the bank- therefor we are looking at every house from $13 and under. Getting a house for $15 doesn't work because we'd have to go over our $10 budget. Get what I'm saying?

STARMOON44

jenna8984 said:

STARMOON44 said:

Every time you post it sounds like either you've identified an area with zero inventory, or like you can't afford what you want. Are houses coming on the market in the locations you want and you just can't afford them? Or are these towns where actually only 10 houses a year come on the market.

If there are houses over your budget, I might look at paying less in a downpayment. 30% is a lot. Moving that target to 20% might open things up a bit.

But basically, yeah, sounds like you can't have what you want. Which sucks, but that's house buying for ya.

Both. Within 60 miles, we already canceled about 10 towns off our list because they just are impossible for our budget. We canceled about 5 towns off due to bad schools. So we are left with about 10 towns to chose from, which all have very low inventory. And the inventory they do have, we're finding sucks. But it's not like we're sitting here trying to get into those other 10 expensive towns- we know that's not possible and we are being realistic.

As for the downpayment, it makes no difference and doesn't allow us to up the budget at all. I'm just going to make up numbers here but say we want our payment to be under 10 cents per month. In order for that to happen, we cannot get a mortgage more than $10. We have $3 in the bank- therefor we are looking at every house from $13 and under. Getting a house for $15 doesn't work because we'd have to go over our $10 budget. Get what I'm saying?

Yeah this makes perfect sense and I thought that might be the case. I think you're not going to find a house you love right away. Eventually you'll get fed up and buy one on a busy street or without a garage or with a garden gnome infestation. And 5 years from now hopefully you'll love it because memories.

littlemushroom

@jenna8984 Are you figuring the property taxes into your budget for you max payment? I ask only because we were able to go 15k over our max mortgage amount because lower taxes in the area made up the difference.

The 15k extra in the mortgage added, for example, an extra $100 to our monthly payment. However, the property taxes for that house were $1200 less than we had been budgeting for. The lower taxes saved us the extra $100/mo so we could actually afford the house with the higher price point.

Basically (again making up numbers) instead of $500 for the mortgage and $200 for taxes per month, it became $600 for mortgage and $100 for taxes. Both equal $700 per month, but the allocation is different. Just something to consider since that might help you find something that works better for you.

jenna8984

@littlemushroom Yea definitely. We learned early on that we had to scratch off the best 10 towns because of the fact that their taxes were going to be way too much of the monthly payment budget. The remaining 10 towns that we're looking in all have pretty much the same taxes, varying only a couple hundred bucks here and there. So unfortunately that probably won't be a budget adjuster for us.

huskypuppy14

Jenna, I think you may have to compromise on being on a quiet sidestreet. My husband always lived in a neighborhood growing up, so he preferred that. I grew up on a main road, but our house was far  back from the road. 

We saw a couple houses right on the road, that we ended up passing on because we thought it was too dangerous. Our house now is on a main road, but it has a long driveway and is setback from the road. Our yard abuts a neighborhood whose houses are 200,000 more than ours (it's also not as big either). So though we are in the same "neighborhood", our house is cheaper because it's on the main road. We can take a walk in that neighborhood, we walk our dog there, one day our kids could ride their bikes there, but our house isn't technically on that street. 

littlemushroom

@jenna8984 That is a bummer. In all the small towns around here that we were looking in the taxes varied by thousands depending on where in town it was located. We had to write off certain subdivisions in those towns, but never the entire town.

I figured you had considered it, but thought it was worth mentioning since it worked in our favor.

julieanne912

Out of all the things to compromise on, I wouldn't compromise and live on a busy street.  You may not mind it, you'll get used to it, etc., but the next buyer who comes along will be deterred.  Anything that affects resale that you cannot change (ie location) is something to be concerned about. 

theartistformerlyknownas

The thing with busy streets is they rarely get LESS busy. It's only going to get worse. More traffic, more noise, construction for long repairs, harder to get in and out of your driveway. You might even have the county come in and claim eminent domain over a strip of your yard to make it wider. So what might me manageable now could be unbearable in 5-10 years.

lovemesomemonster

lolo883 said:

The thing with busy streets is they rarely get LESS busy. It's only going to get worse. More traffic, more noise, construction for long repairs, harder to get in and out of your driveway. You might even have the county come in and claim eminent domain over a strip of your yard to make it wider. So what might me manageable now could be unbearable in 5-10 years.

I completely agree with all of this! Location is the #1 thing we will not compromise on. I will get a house that's 1000sqft smaller but in a good location over a bigger one on a busy street. Whoever said to think of resale.. YES... even if I was planning a "forever" home I would still think of resale. If something huge happens and we can't afford it/need to move, I want a better chance of selling it.

JoanE2012

We're in our house 2 years now.  It's funny, because I still look at houses.  I think part of me does it to see what else pops up that we would've considered had we not bought this house.  And for houses in the price range we'd want with the criteria we searched for, not much else appeals to me.  

If it were me, I wouldn't settle much though on my must haves.  I'd wait for a house that met most of my criteria.  Because if I didn't find something right away, I'd be able to save even longer (and maybe increase my budget!)  That said, we're in what I hope is our forever home (until we retire), so I wanted to make sure we were happy since this is a long term move for us.