First Time Homebuyer

[pesty4077]

Exactly. And a good realtor at that. I have idiots come in wanting 100k off. I tell them," drive one hour north where I live and you can find that, but you aren't getting it here." LOL

A good realtor can really help. They can also keep you from wasting a bunch of time.

And to add, get referrals for that agent, not all are created equal. I been dealing with Real Estate Agents for 15 years. A good agent will do the work for you, so you are not guessing.

 

[ericraven2003]

And to add, get referrals for that agent, not all are created equal. I been dealing with Real Estate Agents for 15 years. A good agent will do the work for you, so you are not guessing.

Good point. 10% of the realtors make 90% of the money. Get realtors that are good at what they do, and that can still make a living in a down market. Don't ever use part timers.

 

[The Booger]

Good point. 10% of the realtors make 90% of the money. Get realtors that are good at what they do, and that can still make a living in a down market. Don't ever use part timers.

Agreed. We recently purchased our first home. It's sort of a fixer upper but not really (just not up to MY standards, millions would love to have our home). For the price, we couldn't pass it up. $10k into it and it will look better than 90% of the homes in the town.

Now on to the comment above, so true! Our first agent didn't do shit for us. Best she negotiated was $2,500 off the asking. Lazy ass. We went to another agent, recommended by a friend, and knocked.....get ready........25% ($20k) off the house through negotiating! No idea how she did it, but who cares. We even ended up with him paying all closing costs, back utilities, turning on ALL utilities, and got an entire new roof with it (we just put it on, big deal). We said we'll go up to X but really want to pay Y. She met us in the middle. Very happy!

Agents are worth the cost. We ended up paying her a discounted rate of about $500 or something. Friend of a friend thing but even $2k would have been acceptable.

 

[Pekkerwood]

Not enough information has been given to render a solid opinion, but I will add a few comments. I have bought several hundred houses in the last few years.

We need to clarify terms. Townhouse is a style of home, typically two story or more. A lot of people use the term "townhouse" to refer to a attached property that is not a condominium. A condominium may be built and often is in a "Townhouse style".

The true important difference from a buyer perspective is it is two differnet ownership types. In a condo you will have monthly fees. You typically have joint ownership and maintenance responsibilities of common areas. You may be "assessed" fees by the condo board. You may be prohibited from renting out your unit. Often a number of units may be rented and any more are placed in a "waiting" list. This may be a factor if you need to move. You could be in a situation where your home will not sell easily and you cannot rent it.

In a "fee simple" townhome. You may have a monthly or yearly fee move like "homeowners association". Typically much less, and no fear of assessments and typically no rules limiting rental.

As to what you should pay: I truly do not understand the asking price being greater than the appraised value. It does not matter what properties sold for two years ago. It does matter what they are asking. What matters is what the last units sold for i the last ninety days, and the price per square foot compared to similar units as near as possible to the the one you are buying.

As to the poster that said "We get yahoo's offering $100k less, blah, blah, blah". I have bought this month twelve townhomes, brand new, that they were asking $389k, to $369k for an average price of $158k. It can be done.

Remember when making your offer, you can always raise it, never lower it. You need research on comparables to help you formulate an offer. Be very careful in this market. In general I would expect condo's to perform more poorly than fee simple townhomes, and much more poorly than single family homes in a given market. One reason: The condo fees were often based on the higher valuations of a few years ago. Paying $420 a month is not terrible on a $300k condo but, is terrible on a $150k condo in comparison. It hurts potential rental and cash flow, in effect will determine value even if in a non-rental situation.

Now is only a great time to buy if you buy something on sale. I do not expect price appreciation in most markets, or nominal at best. I think the chances of additional depreciation whipsawing back into the residential market from the commercial market failure are much greater. This $8k tax credit is a minor consideration to buying a great value to begin with at $$30k to $50k under the market. Ideally you can do both.

It is not a bad time to be a renter. Rents are coming down, you can re enter the market when you choose and you take risk off the table of owning now.

Get access to good comparables. Get all sales, offered for sale, withdrawn and expired listings as well as active listings. This is valuable information.

 

[ericraven2003]

Not enough information has been given to render a solid opinion, but I will add a few comments. I have bought several hundred houses in the last few years.

We need to clarify terms. Townhouse is a style of home, typically two story or more. A lot of people use the term "townhouse" to refer to a attached property that is not a condominium. A condominium may be built and often is in a "Townhouse style".

The true important difference from a buyer perspective is it is two differnet ownership types. In a condo you will have monthly fees. You typically have joint ownership and maintenance responsibilities of common areas. You may be "assessed" fees by the condo board. You may be prohibited from renting out your unit. Often a number of units may be rented and any more are placed in a "waiting" list. This may be a factor if you need to move. You could be in a situation where your home will not sell easily and you cannot rent it.

In a "fee simple" townhome. You may have a monthly or yearly fee move like "homeowners association". Typically much less, and no fear of assessments and typically no rules limiting rental.

As to what you should pay: I truly do not understand the asking price being greater than the appraised value. It does not matter what properties sold for two years ago. It does matter what they are asking. What matters is what the last units sold for i the last ninety days, and the price per square foot compared to similar units as near as possible to the the one you are buying.

As to the poster that said "We get yahoo's offering $100k less, blah, blah, blah". I have bought this month twelve townhomes, brand new, that they were asking $389k, to $369k for an average price of $158k. It can be done.

.

It all depends on the area. It would never, ever happen in my area right now, not unless the market fell again for awhile, a very long wile. We have not taken the hit that other areas have. SO, once again it is all area.

 

[brother_iron]

I sell townhomes/condos for a living. The only time a TH is a good idea to buy is when single family homes are much, much higher for the same sq ft. For example, where I am I sell a TH that is 2100 sqft for for the 260's. If you want a single family home in the same area, the same sqft will cost you about 390k. In areas like this you can and will make appreciation in a TH. If you are able to buy a single family for about the same as a TH then always go with the single family. FYI. I have been selling new homes for 9 years.


Edit. Area depends how good a deal you will get. I am in the DFW area, you will not find home prices being cut by 50% here. Area is very important when you buy as well. What surrounds you, whats the school district like(doesn't matter if you have kids or not), whats the demographic, the crime, etc. All this will determine how easy and profitable it will be to resale your home one day. Remember this is an investmen. If you don't make money on it when you sell, you might as well rent.

Eric, I am actually looking in the DFW area lol. Mid cities. I've been looking at the old property portrait homes had before they went under as well as the Toccata Casitas in grand prairie.

Do you know of any relatively new construction where units are for sale in these areas? I just don't even know where to look anymore man, checked out every realtor website out there it seems.

 

[ericraven2003]

Eric, I am actually looking in the DFW area lol. Mid cities. I've been looking at the old property portrait homes had before they went under as well as the Toccata Casitas in grand prairie.

Do you know of any relatively new construction where units are for sale in these areas? I just don't even know where to look anymore man, checked out every realtor website out there it seems.

I sell in Las Colinas. I have been here for about 2 years before that I was always north of Dallas. Plano, Frisco, etc. Not familar with the areas you are looking at. Are you looking at Portaits left overs that are new but never sold? If so, be carefull because you will most likely not have a full foundation warranty, because it was 50% builder funded. They are 3 in my area that have been for sale for over a year, but haven't sold because of that.

 

[brother_iron]

I sell in Las Colinas. I have been here for about 2 years before that I was always north of Dallas. Plano, Frisco, etc. Not familar with the areas you are looking at. Are you looking at Portaits left overs that are new but never sold? If so, be carefull because you will most likely not have a full foundation warranty, because it was 50% builder funded. They are 3 in my area that have been for sale for over a year, but haven't sold because of that.

Bingo, those ones lol. Damn man. TY so much though for that, no one informed me of that lol.

My girl was actually telling me to look into the las colinas area. Were just looking for something cute and "homey" if you know what I mean. Just something like a two bedroom two story where you can look down on the living room.

Let me know if you have anything for sale in the sub 200K range for sale man.

 

[ericraven2003]

Bingo, those ones lol. Damn man. TY so much though for that, no one informed me of that lol.

My girl was actually telling me to look into the las colinas area. Were just looking for something cute and "homey" if you know what I mean. Just something like a two bedroom two story where you can look down on the living room.

Let me know if you have anything for sale in the sub 200K range for sale man.

Check your PM.

 

[brother_iron]

Got it, ty bro.

 

[VNV]

Why would you pay a dollar over appraisal value?

 

[Big A]

Are houses that high in Dallas? You can get houses that are fairly new for $75-$95 a square foot in my area. As a general contractor, I know you can't build a good house for that price, unless it is crap. New houses are not the way to go in todays economy with all the short sells and foreclosures. By the way, condos in my area go for $30,000-$75,000. I don't think I can afford to live in your area.

Those prices were the prices here 25+ years ago.

Americans are so lucky. Cheap ass houses, cheap ass cars, cheap/low deposit finance.

I just bought a 3 story townhouse, 200sqm, for $1,020,000. Bank needed 20% deposit, so $200k. Stamp duty and fees (you yanks don't have these either) was another $100k. So $300k out of pocket.
Interest only loan costs me $1k repayments per week but I get $1.5k/week rent. Upper middle class suburb.

Regarding the OP - you have to be MAD to pay above appraisal value. What bank do you think will finance you?

 

[pesty4077]

Those prices were the prices here 25+ years ago.

Americans are so lucky. Cheap ass houses, cheap ass cars, cheap/low deposit finance.

I just bought a 3 story townhouse, 200sqm, for $1,020,000. Bank needed 20% deposit, so $200k. Stamp duty and fees (you yanks don't have these either) was another $100k. So $300k out of pocket.
Interest only loan costs me $1k repayments per week but I get $1.5k/week rent. Upper middle class suburb.

Regarding the OP - you have to be MAD to pay above appraisal value. What bank do you think will finance you?

But Big A, You are a high roller, I am not.

 

[Big A]

But Big A, You are a high roller, I am not.

Here in Aust I am not. Far from it. We have the most expensive houses in the world in comparison to income. The most expensive cars - new Murcielago now retails for $800k here before options. And most taxed - 50% income tax, plus 10%GST on everything you spend, plus import duties, plus luxury car taxes, plus fuel levies ($7.50/gallon fuel), plus stamp duties on EVERYTHING major you buy (cars, houses, etc).
And wages are the same as in the US.

My $4mil house, in a similar city and suburb in the US is $600k max. What my Lambo cost, in the US I could have bought the Lambo, a Ferrari, a Lotus and a Lexus. I go to the supermarket for weekly family shop (not bodybuilding stuff) - $500/$600 instantly.

The poverty line here is now $40k/year income per person, since living costs are so high.

With my income, I'd be living in the US like a KING! You guys have no idea how lucky you are! Your cost of living is so low.

 

[pesty4077]

Here in Aust I am not. Far from it. We have the most expensive houses in the world in comparison to income. The most expensive cars - new Murcielago now retails for $800k here before options. And most taxed - 50% income tax, plus 10%GST on everything you spend, plus import duties, plus luxury car taxes, plus fuel levies ($7.50/gallon fuel), plus stamp duties on EVERYTHING major you buy (cars, houses, etc).
And wages are the same as in the US.

My $4mil house, in a similar city and suburb in the US is $600k max. What my Lambo cost, in the US I could have bought the Lambo, a Ferrari, a Lotus and a Lexus. I go to the supermarket for weekly family shop (not bodybuilding stuff) - $500/$600 instantly.

The poverty line here is now $40k/year income per person, since living costs are so high.

With my income, I'd be living in the US like a KING! You guys have no idea how lucky you are! Your cost of living is so low.

I am not doubting you Big A, some guys from England, I met in Vegas, told me simular stories. I always tell people here, we have it made compare to other countries. People are just to spoiled, for so long, to know that. By the way, $40,000 in my area is median income.

 

[Big A]

some guys from England, I met in Vegas, told me simular stories.

That's actually the problem here. Aust is a british run country, where most of the population is british. And unfortunately, in a very simplistic way, they are very greedy. Think of it - there is more land per capita here than any other country in the world, yet we have the most expensive land
Look at anywhere in the world where they got involved, you will see high taxes, high costs of living and high prices for everything. Perfect recent example - eastern EU. Boston Tea Party anyone?

 

[pesty4077]

That's actually the problem here. Aust is a british run country, where most of the population is british. And unfortunately, in a very simplistic way, they are very greedy. Think of it - there is more land per capita here than any other country in the world, yet we have the most expensive land
Look at anywhere in the world where they got involved, you will see high taxes, high costs of living and high prices for everything. Perfect recent example - eastern EU. Boston Tea Party anyone?

Well, if I remember correctly, isn't that why America was formed? Taxation without representation. I was in awed by what these guys from England were paying for taxes.

 

[Big A]

Well, if I remember correctly, isn't that why America was formed? Taxation without representation. I was in awed by what these guys from England were paying for taxes.

Exactly!

 

[Tyrone]

Regarding the OP - you have to be MAD to pay above appraisal value. What bank do you think will finance you?

Exactly, the banks don't want to finalize a loan that sells for more than it's worth.

 

[brother_iron]

Those prices were the prices here 25+ years ago.

Americans are so lucky. Cheap ass houses, cheap ass cars, cheap/low deposit finance.

I just bought a 3 story townhouse, 200sqm, for $1,020,000. Bank needed 20% deposit, so $200k. Stamp duty and fees (you yanks don't have these either) was another $100k. So $300k out of pocket.
Interest only loan costs me $1k repayments per week but I get $1.5k/week rent. Upper middle class suburb.

Regarding the OP - you have to be MAD to pay above appraisal value. What bank do you think will finance you?

Fortunately obtaining financing isn't an issue, I have high liquid assets but low credit thinking about just putting 75% down on a property and mortgaging the rest to build credit.

I was an idiot before talking to my private banker I spoke to the generic mortgage specialist at my branch. Over 9K in closing costs, not a ton, but I don't want to spend money on something I don't have to and a 4.5% interest.

Going to be getting no closing costs and 2% interest as well as the bank paying for the title research. Was a little shocked at how much the average american gets screwed by the banking industry. If I didn't have a good paying job theres no way in hell I could afford to purchase a residency lol.


Anyways found the property finally, thanks to that PM you sent me man! Had a link to the new ones in Colleyville on their site for some reason (different builders) weird way to divert people elsewhere lol.