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First time buyer - would love some advice

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Anonymous
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Re: First time buyer - would love some advice

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Message Edited by roxanna1974 on 03-01-2010 08:23 PM
Message 11 of 19
Anonymous
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Re: First time buyer - would love some advice

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Message Edited by roxanna1974 on 03-01-2010 08:23 PM
Message 12 of 19
Jazzzy
Valued Contributor

Re: First time buyer - would love some advice


@Anonymous wrote:
Ahh I see, I meant assessment, not appraisal.

I would be careful these days of even the amount of the city or county's assessment. In many communities the assessments (which in a normal market somewhat lag behind appraised value) are still too high. Most of these assessments were done before the market dropped, and many of them are way too high.

 

Have you looked at recent comparables....similar homes that have sold in the area? I assume you're working with a buyer's broker. Tell that person, if you haven't already, that you'd like to see some comparables. That is part of their responsibilities to you.

Message 13 of 19
Anonymous
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Re: First time buyer - would love some advice

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Message Edited by roxanna1974 on 03-01-2010 08:22 PM
Message 14 of 19
Anonymous
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Re: First time buyer - would love some advice

My advice is to bid low and take anything a realtor says with a grain of salt.  There is a shadow inventory of at least 7 million more homes that will get foreclosed on in the next 2 or 3 years.   If the house is on the market over 100 days and the sellers are motivated it doesn't hurt to bid low.  The worst they an say is no.  This isn't a time to chase houses too high and over pay.   There are still a lot of problems in the housing market.
Message 15 of 19
Anonymous
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Re: First time buyer - would love some advice


@Anonymous wrote:

Okay, so got my pre-approval - blah blah - went to look at it - it's awesome - so questions:

hazard insurance - ranges from?  I tried to do an online quote with my auto insurer but wouldn't let me - no dogs or swimming pools Smiley Happy

water heaters/gas furnace - both 10 years old - how long do they tend to last, or is that on a case by case?

 

and then the big ? - how do I know what to bid???  - some info that might help:

house is $169,000 - on market for at least 111 days - just recently dropped by ~$12,500

buyers paid $178,000 in mid 2004 and put ~$10,000 worth of work into

appraised this year for ~$167,000 

sellers are motivated (but of course, there's a very interested buyer right now!!! - ha)

 

so what do I bid - I mean I know I can bid anything - but some ideas, thoughts into this?  Thanks! 


The lifespan of a water heater is about 10 years give or take. They do make ones that last up to 15 years now but those are the real expensive ones. Also obviously it would also depend on use. A water tank that has to supply water for say a family of 4 will crap to bed sooner then one that only supplies to 1 or two people.
Message 16 of 19
Anonymous
Not applicable

Re: First time buyer - would love some advice

Roxanna,

 

Congrats on the pre-approval. I am a property adjuster and I think I can give you some hints on hazard insurance. If you have time and can go into an insurance agent's office and actually speak with an agen, go for it. They can give you a much better insurance quote and some companies give you a discount for a year if you are a first time homebuyer. Also they can give you discounts if you have items such as fire extinguisher, alarm system, multi-line discount (include your auto with them). Most if not all will look at your claim history that is tied in with your social. These should only be soft pulls so sont worry about dings.  There are many discounts available out there which could bring your closing costs down. Also ask for replacement cost coverage on your home and your personal property (most agent's automatically include this, but some dont, just make sure you get it). Always and I mean always get a home inspection. I can't stress this enough. I know you are asking about the water heater and furnace. If these items go out b/c they are old, home insurance will not cover them as it is a wear and tear issue. The home inspector can usually tell by age and wear if one of these items is in bad shape. If they are in bad shape it can give you some negotiating power when you place an offer. As for dogs, most companies do not want to write a policy of you own "agressive" breeds ( I wont list them cause I dont want to upset anyone). In my opinion when you buy a policy ask for at least 5k in water backup endorsements (if your sewer pipes back up, you definately want this endorsement). Also have your inspector look at the roof. Any old hail damage or wind damage that was not previously repaired could come back and haunt you. 

 

Like I said congrats and hope this helps a bit.  

Message 17 of 19
Anonymous
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Re: First time buyer - would love some advice

one thought of concern...  is your current employer aware that you will be cutting hours.  Most VOE''s (verification of employment) not only ask for current income, but predicted future income.  On top of that, I believe you have to sign that as far as you aware all info is accurate and that there are no debt/income changes in works.  Really, to be safe and also to be honest you should be disclosing the upcoming income drops to the bank/lender as they may hear about it anyways and it is fraudulent to not inform them of circumstances that you are aware of that have a large affect on your income and/or credit.  Maybe you already did this and they are O with it.  But, if they are unaware and it comes back in underwriting that the VOE is bad due to the coming paycuts that will kill the deal.  UW do not like surprises like this. 

 

The other issue was already brought up...  Buying a house now seems to make little sense on 30K income when you are looking at loosing a goo dprotion of your income down the road.

Message 18 of 19
Anonymous
Not applicable

Re: First time buyer - would love some advice

I also live in NH and purchased my first home in Sept 2009. I don't know why but it seems a lot of realtors around here exaggerate competition for properties. It has happened to every single person i know that's recently purchased or currently purchasing a home, including my husband and I.

 

There was a property we were very interested in, on the market for months and no offers at the time we put in our offer. The following day our realtor says they were just informed by the seller's agent of another offer comparable to ours but slightly better and asked us to improve our offer if we want to compete. Granted we low-balled when we put in our offer but i thought it was rather suspicious. We ewaited out the 48 hours we gave them to respond and ended up walking away. That house is still on the market today for almost $20k less than our low offer. hah!

 

Anyway, be a bit careful of magical competition that seems to come out of nowhere. I'd say the best advice is to shop for a home as if it's nothing more than a business deal. Good luck! Smiley Happy

Message 19 of 19
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