First time home owners dos and don'ts???

[Pooh]

You wanna talk about a bad day? I had a gas leak in my truck earlier this week. I finally couldn't take the fumes anymore so I brought it into the shop. They put it on the lift and the truck literally broke in half. I'm now looking for a new truck. This was a 2008 F-150. I didn't know whether to laugh or cry.

How the fuck? Insurance???

Nah. There was about a three foot piece of rot under the truck and that is where they lifted it from. Snapped in half and made the truck look like it had elephantitis. Makes for a good lol story though. Just glad nobody was under the thing when it happened.

[gauchojake]

buy low sell high

[Pooh]

So I've begun the process of selling my condo (hopefully get a decent price) and will most likely be buying my first house in 2016/17. For the homeowners on the site what are some of the things you wished someone had shared with you before buying a house or things you should do after?

Don't buy a brand new house 6 months before the bubble bursts and your home loses 40% value and you're still underwater or break even 8 years later. Yeah, wish someone had told me that........

Out of curiosity roughly how much did you pay for your house and did it almost break you when the market took a dump? Here in Florida everyone was taking out these zero down interest only ARMS with four different payment options including a 1% interest rate payment. Once the ARMs readjusted the shit really hit the fan. In retrospect, it should have been seen miles away and we all could have profited big. I've never seen The Big Short so if this was the premise then I apologize. There were houses selling for $400k that are $120k houses back up north where I'm from. Old houses. That's what told me to not buy anything. Thankful I didn't because I'd possibly just be a statistic of the times. Pretty sure there were only a few hot spots in the country and your area wasn't one of them. Florida, Nevada and Arizona were the big ones.

PS, those $400k houses could've been had for $120k or even less at the bottom.

[simply1]

Didn't catch if there was a Mrs. Handicapme but if so leave her at home or seriously educate her before going on a search.

On our first house the wife got so sidetracked on cosmetic things (paint colour/flooring/cabinet hardware/etc.....) that I finally told her to STFU or stay at home.

Once you know a house is priced right location and layout is key. The rest can be fixed in time.

If you're not buying new or building from scratch definitely go with a fixer upper for best resale upside. Especially this if Pops is handy with lots of free time.

And what Sanlmar said is totally on point.

Good luck.

[jsearles22]

Don't buy a brand new house 6 months before the bubble bursts and your home loses 40% value and you're still underwater or break even 8 years later. Yeah, wish someone had told me that........

Out of curiosity roughly how much did you pay for your house and did it almost break you when the market took a dump? Here in Florida everyone was taking out these zero down interest only ARMS with four different payment options including a 1% interest rate payment. Once the ARMs readjusted the shit really hit the fan. In retrospect, it should have been seen miles away and we all could have profited big. I've never seen The Big Short so if this was the premise then I apologize. There were houses selling for $400k that are $120k houses back up north where I'm from. Old houses. That's what told me to not buy anything. Thankful I didn't because I'd possibly just be a statistic of the times. Pretty sure there were only a few hot spots in the country and your area wasn't one of them. Florida, Nevada and Arizona were the big ones.

PS, those $400k houses could've been had for $120k or even less at the bottom.

$170k, remember this is Missouri. That's a pretty nice, new house.

It didn't break me, I just pay the payment each month. It sucks, but if I left now after 8 years I'd probably still need to bring about 10k to the table, which I could do if I had to. So considering all I've paid, I've suffered quite a bit. Luckily it didn't doom me, like it did many of my friends and family

One of the few things my young dumb ass did was demand a fixed rate. I've since refinanced and got an even better fixed rate. Even being uneducated and naive, I just didn't like the sound of my payment changing. I wanted to know what it would be without fail

[Pooh]

Out of curiosity roughly how much did you pay for your house and did it almost break you when the market took a dump? Here in Florida everyone was taking out these zero down interest only ARMS with four different payment options including a 1% interest rate payment. Once the ARMs readjusted the shit really hit the fan. In retrospect, it should have been seen miles away and we all could have profited big. I've never seen The Big Short so if this was the premise then I apologize. There were houses selling for $400k that are $120k houses back up north where I'm from. Old houses. That's what told me to not buy anything. Thankful I didn't because I'd possibly just be a statistic of the times. Pretty sure there were only a few hot spots in the country and your area wasn't one of them. Florida, Nevada and Arizona were the big ones.

PS, those $400k houses could've been had for $120k or even less at the bottom.

$170k, remember this is Missouri. That's a pretty nice, new house.

It didn't break me, I just pay the payment each month. It sucks, but if I left now after 8 years I'd probably still need to bring about 10k to the table, which I could do if I had to. So considering all I've paid, I've suffered quite a bit. Luckily it didn't doom me, like it did many of my friends and family

Yeah, I never understood the high house prices in Florida. There are rich people from all over who have second homes here on the water and shit. And they're expensive as hell. I get that. What I don't get is the houses for 'normal' people who live here all year. $170k isn't getting you anything remotely new or nice here and I'd wager the average income where you live and here are roughly the same. It's good you got a nice place for that price and new. Most people here can't say the same.

[gauchojake]

If you remodel, only do what you need to, not what your wife sees on TV. For instance cabinets - Ikea makes a very nice modular cabinet product that you can design, plan, order, and install for about 60% of what you would pay for custom. If you have decent cabinets that just aren't "new" consider a new professional paint job instead of replacing them. Same with tile and other surfaces that you can paint.

[handicapme]

Didn't catch if there was a Mrs. Handicapme but if so leave her at home or seriously educate her before going on a search.

On our first house the wife got so sidetracked on cosmetic things (paint colour/flooring/cabinet hardware/etc.....) that I finally told her to STFU or stay at home.

Once you know a house is priced right location and layout is key. The rest can be fixed in time.

If you're not buying new or building from scratch definitely go with a fixer upper for best resale upside. Especially this if Pops is handy with lots of free time.

And what Sanlmar said is totally on point.

Good luck.

No Mrs and the gf will not be involved in this process.

I am considering going to semi fixer upper route for cheap and then put in the additional 100kish over time.

Thanks for the advice

[handicapme]

$170k, remember this is Missouri. That's a pretty nice, new house.

It didn't break me, I just pay the payment each month. It sucks, but if I left now after 8 years I'd probably still need to bring about 10k to the table, which I could do if I had to. So considering all I've paid, I've suffered quite a bit. Luckily it didn't doom me, like it did many of my friends and family

Yeah, I never understood the high house prices in Florida. There are rich people from all over who have second homes here on the water and shit. And they're expensive as hell. I get that. What I don't get is the houses for 'normal' people who live here all year. $170k isn't getting you anything remotely new or nice here and I'd wager the average income where you live and here are roughly the same. It's good you got a nice place for that price and new. Most people here can't say the same.

I would legitimately give my first born for my mortgage to be that low when I buy this house . My condo mortgage was only 100k given I put down so much, but damn... 170k for a new house fml. Around here a new build in a good town is ATLEAST 700k+ and that's for a like 3 bedroom 2 bath type place.

[Baron Von Strucker]

Yeah, I never understood the high house prices in Florida. There are rich people from all over who have second homes here on the water and shit. And they're expensive as hell. I get that. What I don't get is the houses for 'normal' people who live here all year. $170k isn't getting you anything remotely new or nice here and I'd wager the average income where you live and here are roughly the same. It's good you got a nice place for that price and new. Most people here can't say the same.

I would legitimately give my first born for my mortgage to be that low when I buy this house . My condo mortgage was only 100k given I put down so much, but damn... 170k for a new house fml. Around here a new build in a good town is ATLEAST 700k+ and that's for a like 3 bedroom 2 bath type place.

Owning property these days have grown out of controls here too, the shit tear down starts at a million
All Chinese buyers driving the market my neighbors are all selling... Guess it's time to learn some mandren, we are not moving for a long time.

My point is that if you are going to buy a house be sure it is in a location that will sute you 20 plus years, so schools if you plan to have children and close to what you like to do and work, long commute is never a good idea.
Good luck

[BeerAndPoker]

I only read so much of this thread and some of these were probably mentioned already but ahh well I'm just trying to help.

Ask the owners to tell you straight up about the neighbors because if you get the idea they are obnoxious that isn't a home to buy. The better the area the less you have to worry about this but it's never a lock.

Look at any improvements necessary. Get it looked at by a good inspector obv. If you need new home improvements some places will give you deals for being a new home owner so be aware of that.

Negotiate with them for the best price you can (obv). Saving even a few grand is huge. Try to find out how desperate the previous owner is to sell because the faster they want to get rid of the place the better it might be for you in negotiating.

Look into various financing options for the best rates, etc... Sometimes it will be a local bank but sometimes you can get a much better rate elsewhere. A lot of this depends on how your credit is.

Consider the future. I'm not sure on your family situation but if you plan to pump out a few kids then you will want extra space and if you don't then maybe you won't want as big of a place (higher bills, etc..) Getting a place too small would be much worse then too big though imo as long as the money isn't too much of a concern. If you are considering a new job elsewhere at any point that might be a much further distance away then before you purchase will the travel be too far?

Just cover all the basics and think of anything else that might come up so you know ahead of time what you are getting yourself into. GL

[Indyrick]

I just bought a house and something I learned is that you have the seller pay all the closing costs. This will keep them from messing with you on the price negotiations if they are responsible for the costs.

[Sanlmar]

Barons post resonated with me huge.

There are well-to-do towns near me that have been over run with Asains. We used to wonder where the hell the money was coming from. I now understand.

He also gives the advice to buy with the assumption you're going to be there long term.

Someone else talked about tear downs and flips. Women all caught up in the HGTV's 24 hour flip and renovation programming. It's the sign of a top. We've seen it before.

Doesn't take a finance genius to understand low interest rates allow homes to be more affordable at higher prices. The inverse happens as rates rise. And they will.

Was gonna Mumbles up some cool chart. First click I hit this.

http://www.cnbc.com/2015/09/11/if-mo...o-housing.html

Nothing that everyone doesn't already know. Woulda skipped it save for the map of Florida. Oops, Pooh, it's like Naples and Bonita Springs are primed for a nuclear correction. California, Hawaii and others aren't immune. Everyone else less so.

Drive I75 and you know something ain't right. I know I am gonna get fucked. But I am resigned to Baron's advice.

Gonna be fun once Clinton hits office and things unwind. Ain't gonna stay 3.5% forever.

Real Estate appreciation was my generation's game. Game over.

Edit:
Gonna try something different. Instead of being a know it all smartass, I am gonna repeat some advice I wish I took when I bought my first place:

Buy a two family.

Dealing with a rental is no one's dream. You cannot argue the investment.

"Yeah, but I know shit about home maintenance.", you say. That was a big reason I didn't. Seemed ominous. But I fucking bought a house and learned home maintenance anyway.

I think Druff has his hand in rental real estate. He's Jewish, I hear. Do you think he knew anything about a hammer? He and his old man banging nails on a Saturday, lol.

You seem to have a father with some mechanical chops. Trust me, he would love to help you succeed. It's all instinct with parents. Use him.

You gracefully exit your half of the duplex in due time. Rent it out. Use the appreciation for your own single family down payment. Nice cash flow for your new mortgage application. You shoot me a PM thanking me.

[simpdog]

Pussy'd out and have been doing fixed rate mortgages for > 10 yrs

Whoops.

Back when I started ~6%. Figured rates would go higher at some point.

Then 4% figured they have to go up this is really really low..c'mon.


rinse...repeat......

I just locked in again so likely rates will go negative to make me look like a fool again.

[handicapme]

I only read so much of this thread and some of these were probably mentioned already but ahh well I'm just trying to help.

Ask the owners to tell you straight up about the neighbors because if you get the idea they are obnoxious that isn't a home to buy. The better the area the less you have to worry about this but it's never a lock.

Look at any improvements necessary. Get it looked at by a good inspector obv. If you need new home improvements some places will give you deals for being a new home owner so be aware of that.

Negotiate with them for the best price you can (obv). Saving even a few grand is huge. Try to find out how desperate the previous owner is to sell because the faster they want to get rid of the place the better it might be for you in negotiating.

Look into various financing options for the best rates, etc... Sometimes it will be a local bank but sometimes you can get a much better rate elsewhere. A lot of this depends on how your credit is.

Consider the future. I'm not sure on your family situation but if you plan to pump out a few kids then you will want extra space and if you don't then maybe you won't want as big of a place (higher bills, etc..) Getting a place too small would be much worse then too big though imo as long as the money isn't too much of a concern. If you are considering a new job elsewhere at any point that might be a much further distance away then before you purchase will the travel be too far?

Just cover all the basics and think of anything else that might come up so you know ahead of time what you are getting yourself into. GL

Thanks, will keep this all in mind! One thing I know I will refuse to do is ever pay what the listed price is, going to channel my inner Todd on this one.

[handicapme]

I just bought a house and something I learned is that you have the seller pay all the closing costs. This will keep them from messing with you on the price negotiations if they are responsible for the costs.

Mind elaborating more on this one? I thought it was the norm that the seller pay all the closing cost regarding the house / banks lawyer fee and the buyer pays bank fees regarding the mortgage... didn't think the buyer had to any of the inspections or anything like that.

[handicapme]

Pussy'd out and have been doing fixed rate mortgages for > 10 yrs

Whoops.

Back when I started ~6%. Figured rates would go higher at some point.

Then 4% figured they have to go up this is really really low..c'mon.


rinse...repeat......

I just locked in again so likely rates will go negative to make me look like a fool again.

If you buy now and don't get a fixed rate you're a moron. 3.5% is as low as it is going to get long term, yes we may have rates rally hard in the next year or so and floating could help you, but I only see rates going up from here in the next 2-3yrs. Lock in your fixed now at some ridic level and party.

BTW the above is for US rates, I don't know wtf is going on with canada... you guys need to find tim tebow (baby jesus himself).

[simpdog]

Pussy'd out and have been doing fixed rate mortgages for > 10 yrs

Whoops.

Back when I started ~6%. Figured rates would go higher at some point.

Then 4% figured they have to go up this is really really low..c'mon.


rinse...repeat......

I just locked in again so likely rates will go negative to make me look like a fool again.

If you buy now and don't get a fixed rate you're a moron. 3.5% is as low as it is going to get long term, yes we may have rates rally hard in the next year or so and floating could help you, but I only see rates going up from here in the next 2-3yrs. Lock in your fixed now at some ridic level and party.

BTW the above is for US rates, I don't know wtf is going on with canada... you guys need to find tim tebow (baby jesus himself).

Well obv I am continuing to go the fixed route. 2.7% for 5 years. In the US can you get the low rates for longer periods of time? The good rates max out at 5 years here.

[tommyt]

Pussy'd out and have been doing fixed rate mortgages for > 10 yrs

Whoops.

Back when I started ~6%. Figured rates would go higher at some point.

Then 4% figured they have to go up this is really really low..c'mon.


rinse...repeat......

I just locked in again so likely rates will go negative to make me look like a fool again.

If you buy now and don't get a fixed rate you're a moron. 3.5% is as low as it is going to get long term, yes we may have rates rally hard in the next year or so and floating could help you, but I only see rates going up from here in the next 2-3yrs. Lock in your fixed now at some ridic level and party.

BTW the above is for US rates, I don't know wtf is going on with canada... you guys need to find tim tebow (baby jesus himself).

you're so right. I bought my first house back in October after looking since that past January and got 3.9% fixed. The main thing I looked for was the condition of the roof, windows, electrical, type of pipes under the house, age of furnace and AC unit. I got lucky and found one with new windows, roof, and newer furnace and AC unit. I bought it from the daughter of the old man that lived there and he kept it in excellent condition (only had to tear up the old carpet which hid beautiful original wood floors). boggles my mind that people thought hard wood was shit back in the day. The house had to sell to finance his health care cost (Alzheimer). Location is everything.

[handicapme]

If you buy now and don't get a fixed rate you're a moron. 3.5% is as low as it is going to get long term, yes we may have rates rally hard in the next year or so and floating could help you, but I only see rates going up from here in the next 2-3yrs. Lock in your fixed now at some ridic level and party.

BTW the above is for US rates, I don't know wtf is going on with canada... you guys need to find tim tebow (baby jesus himself).

Well obv I am continuing to go the fixed route. 2.7% for 5 years. In the US can you get the low rates for longer periods of time? The good rates max out at 5 years here.

Right now with my credit score I could most likely get 3.65% APR (so like 3.4% IR) on a 30yr fixed. Even lower for 20yr and 15yr... I should go the 15yr route, but I want to keep my monthly payments low and just payoff the house using my bonuses and any other side money I get if DFS ever comes back to NY... the diff between a 15yr and 30yr is only like ~30bps, and I plan on paying off the house in full <10yrs so I think having a savings is more important encase something unfortunate happens. The sad thing is when I buy this, I won't be balling out of control like the dynamic duo Lannister/Jsearles for a few months, instead I'll be living the dream like Tyde until next feb . In feb 70% of my bonus goes to the house the other 30% goes to setting up elaborate low level scams to gain $215-500 from unsuspecting board members... Vegas I'm coming for you.