Advice on buying a home.

[UNC41]

Originally Posted by HoldemHart

Congrats! Hell of an accomplishment.

Thanks! I was both surprised and elated to see what a good comp in the building went for last month. A second solid comp that asked $20k higher than the one from August just went pending after being on the market for less than a week. We're going to wait and see what the price was on that one before coming up with an asking price.

Originally Posted by AJF_41

you can try.
based on my experience...it's tough to get the bigger guys to move.
the smaller guys seems slightly more willing to move..but it's 1.0-1.5% at most.
i know edina realty (you're here, so you know them), say they don't move off the 6%.

the other thing is...you don't really have control of the commission your agent gets on the purchase. it's based on the house you buy (which is based on the sellers agreement with their agent).

i see your point of saying, hey we are going to buy a house..so you are going to make 3%ish there...whey don't you lower your 3%ish on your condo sale.

real estate agent commission structure is a joke.


where are you thinking of moving?

My guy isn't with Edina Realty. I'm hoping I can get him down on the sale (which I know is where the discount would have to come), even if it is minor. If he doesn't, I might meet with a couple others who people I know have worked with.

I'm in Hopkins now and we're planning on staying in the SW metro. I think we'll end up in either the Minnetonka or Wayzata school districts, but Edina or Eden Prairie are other possibilities.

[AJF_41]

Originally Posted by UNC41

I'm in Hopkins now and we're planning on staying in the SW metro. I think we'll end up in either the Minnetonka or Wayzata school districts, but Edina or Eden Prairie are other possibilities.

nice.
we looked in wayzata as well.
i couldn't move outside of the ring.
ended up in edina.

[jnovo22]

Originally Posted by AJF_41

what happened?
financing fall threw?

was wells fargo involved?
they've been fucking shit up for months now.

It's borderline tl;dnr territory. Financing is good, actually. We went through a mortgage broker/credit counselor I've been working with the last 5 years We were all set. Down payment is in a separate account I'm not allowed to touch (hence the credit counselor )

After the underwriters looked at the appraisal and a code enforcement inspection of the house, there's a ton of crap that needs addressed.

Most are just small and annoying nickle and dime stuff, but there are 2 expensive show stoppers. The most pressing is the demo of a structure. I like how they tell us 3 days before our close date.

Bastards. I knew we shouldn't have scheduled it on Friday the 13th.

[UNC41]

Originally Posted by AJF_41

nice.
we looked in wayzata as well.
i couldn't move outside of the ring.
ended up in edina.

The pricing for what we are looking for will likely keep us out of Edina. Although a larger downpayment might give us some flexibility in what we spend.

[Lee3691]

Originally Posted by UNC41

I found out this week that my condo is worth a lot more than I thought it was. Enough that selling it should let me and my fiance put 20% down on a house and avoid PMI. We're super pumped about that.

For those of you who have sold and bought with the same realtor within a couple of months, did any of you get your realtor to agree to take a reduced commission on the sale because he is getting two checks from your transactions? A friend of mine did that recently, and it is something I'm planning on bringing up with mine when we meet next week.

My brother inl aw just did this - the commission was reduced on the home they were selling from 3% to 1%. In actuality, the real estate agent hardly even earned that 1% as the house was on the market for 24 hours before it was sold. Maybe I am a cynic, but I think the 2% you could potential save from finding a realtor willing to work with you is worth it.

Depending on this conversation, another thing to ask for is a reduced commission if you find the buyer (again, 1% instead of 3%)

[neumdogg]

Originally Posted by Noles20

I love that deck in the back.

We do too! It's been nice that we got the house in the summer. Definitely been enjoying the deck.

[neumdogg]

Haha. I thought this was a pretty accurate portrayal of the process:

http://www.buzzfeed.com/catesevilla/...-hell-on-earth

[Ascf33]

Something horrible ALWAYS happens during underwriting.

[jnovo22]

Originally Posted by neumdogg

Haha. I thought this was a pretty accurate portrayal of the process:

http://www.buzzfeed.com/catesevilla/...-hell-on-earth

haha yes. So. Much. Paperwork.

"I see you deposited $.05"....

"Yes, that was a nickle I found on the sidewalk".

"You're going to have to document that. I need a signed affidavit you don't need to pay back the nickel"..

"...To the sidewalk"...

"...in triplicate".

[smokew11]

yeah that list is very accurate

in laws are closing on a beach house tomorrow, the process was terrible for them even though they have a ton of money and have been homeowners for over 30 years

[Tiduwho]

We are looking at buying our first home. Thoughts on 15 year mortgage vs 30 year mortgage?

Obviously 15 year is more per month but has the lower rate and you are growing equity faster.

Are there tax implications that benefit 30 year tho? More of your payment is going to interest which sucks on the front end, but maybe isnt so bad bc mortgage interest is deductible on your tax return?

Any other first time home buyer thoughts?

[YouNeverKnow25]

15 year is generally gonna have tighter lending requirements

save a lot of money though. way more than is offset by deductions

it's biting off a lot though

[Rodey]

I've heard you should always take a dump in a house before buying it.

[YouNeverKnow25]

at least one

[harryhoudini]

Originally Posted by Tiduwho

We are looking at buying our first home. Thoughts on 15 year mortgage vs 30 year mortgage?

Obviously 15 year is more per month but has the lower rate and you are growing equity faster.

Are there tax implications that benefit 30 year tho? More of your payment is going to interest which sucks on the front end, but maybe isnt so bad bc mortgage interest is deductible on your tax return?

Any other first time home buyer thoughts?

It is more complicated than tax savings. Have you maximized your savings strategy (401k max, Roth IRA if it is a fit, 529 if you have kids or college expenses)? If no, then put your savings there.

If yes, is your rate under 5%? If so, I'd take the 30 year and invest in the market.

Said another way, unless you would take the savings from the 30 year and put it against your principle each month, I wouldn't commit to the higher monthly cost.

[Lee3691]

If you can afford it, go for the 15 year. There is light at the end of the tunnel.

[CrashDMB237]

Originally Posted by Ascf33

Something horrible ALWAYS happens during underwriting.

Aint that the truth. My wife and I closed in August, somehow a money transfer I made from my savings into my checkings account disappeared into thin air, and I needed to make about a 10 grand payment... not exactly the kind of money you can borrow from someone when you need it in 24 hours. All worked out eventually, but I seriously thought I was going to die in the moment.

[scrock25]

That's not true if you have your shit in order and follow your processor's direction and instructions.

[YouNeverKnow25]

look at this fuckin processor tryin to keep his name clean

[CrashDMB237]

Originally Posted by scrock25

That's not true if you have your shit in order and follow your processor's direction and instructions.

This is 100% false.

[scrock25]

[MDPrompter]

If you have 401k maxed out, go 15 year.

[Ascf33]

yeah gonna need you to find a receipt for the chair you sold on craigslist in 2007 otherwise we can't proceed with lending you money.

[scrock25]

They made you source deposits on bank statements you didn't even provide?

[Tiduwho]

Just got an accepted offer, and setup the home inspection. Heading to pay the earnest money. Exciting!


I am going with the 30 year, and will instead go back to maxing my Roth IRA and increasing my 401k contributions. Kids are probably around the corner though, so Ill have to start looking into 529 plans and the like. Over in the investment thread.

[Tiduwho]

For the home inspection, the finished basement is pretty tight, divided into a living room type area with bar, and then a wall with the furnace, water heater, and storage on the other side.

I understand tight basements are higher risk of radon so getting that test as well. Home was built in 1998 and the furnace and water heater both look original. So those are nearing the end of their 20 year life. Hmm.

[YouNeverKnow25]

I am not understanding what you mean by "tight." Like, packed with a lot of stuff? basements in general are a high risk of radon. if there is no radon mitigation system in place, and a radon reading shows higher-than-acceptable levels, I absolutely would ask that it be paid for by the seller. that's like textbook what-an-inspection-is-for material.

as far as old equipment, that's a little dicier IMO. you could ask for a 1-year home warranty? those are fairly standard here but may not be in IL. just make sure whatever plan they offer covers stuff like furnace and water heater, although I think most do.

[M. Steng]

Originally Posted by Tiduwho

For the home inspection, the finished basement is pretty tight, divided into a living room type area with bar, and then a wall with the furnace, water heater, and storage on the other side.

I understand tight basements are higher risk of radon so getting that test as well. Home was built in 1998 and the furnace and water heater both look original. So those are nearing the end of their 20 year life. Hmm.

Speaking from experience here, make sure there's never been water down there. Ask when the last time they painted was (can cover up evidence of damage), when they finished it off, if there are any sump pumps located anywhere, etc. Our basement flooded 5 days after we moved in back in May and we're still dealing with the fallout from that now.

[smokew11]

Originally Posted by Tiduwho

For the home inspection, the finished basement is pretty tight, divided into a living room type area with bar, and then a wall with the furnace, water heater, and storage on the other side.

I understand tight basements are higher risk of radon so getting that test as well. Home was built in 1998 and the furnace and water heater both look original. So those are nearing the end of their 20 year life. Hmm.

tight as in sealed really well? in that case yeah it's a higher risk. that's why newer homes are more prone to radon, because the fresh air doesn't cycle through as quickly because of the better windows, etc.

just get a reading. if it comes up positive, the sellers almost have to pay for a system because if they don't and you back out, that radon reading will by law have to go on the seller's disclosure. Once that happens, every rational buyer will request that a system be put in. Basically, they can pay to fix it for you now, or risk waiting for another buyer and then having to pay and fix it for them later

[YouNeverKnow25]

Just put an offer on a house today. Fingers crossed but I’m expecting pushback because I tilted it real heavy toward the buyers side