Plz share some house buying tips

[NinjaDoc]

As some of you know i have been trying to come back to Ohio for continued work. Ohio health department finally approved my work visa. Pending US govt approval now.  Waiting for few more paper work, Its weird it takes a long time since i work on special visa/job combo where i cover under served areas (where no American grads want to go) and under paid. Its win win for them. 

 

This means i will be riding with you guys for many more years hopefully Now onto some serious matter. I have always mentioned that i dont have any close family in US. Most of my advice, view point and help came from you guys. I been closely following many topics here to see what first hand opinion of common folks are regarding many things like politics, health care, guns etc etc. Very varied view points but nevertheless thoughtful and very helpful. In the future i might have more and more doubts regarding those. Anyways back to topic,

 

Was thinking about buying a house as buying seems better than renting in the area i will be at. Had some doubts regarding the procedure as i have no clue. Wife just been looking around zillow and stuff as of now.

 

1. Is an agent really needed?

2. How does an agent help if we already have an idea which house to go for?

3. Does he take care of all the paper work regarding closing etc?

4. Is the procedure for closing a long and arduous one? i read about getting home inspected etc? can these be arranged by ourself/ or does agent take care of this?

5. Suppose a house is listed at 240K zillow estimate is 200K what is a reasonable/ decent offer to make? dont want to offend by low balling too much (like used bike ) also dont want to offer more obviously.

6. What other things should i be looking for when scouting for houses? Location wise and type and size wise we have (she has ) definite dream. But its the other details that we have no clue. eg type of heating/cooling / electrical / how old is real bad / what long term expenses we should keep in mind / etc What else comes to your mind?

7. Any advice for a super noob like me? anything that comes to mind tell me even if you think its silly/ basic as i am starting from almost null experience level.

 

Thank you for reading through this giant wall of txt, Of course i am scavenging the net but always first hand advice esp from ohio residents helps.

Edited August 22, 2015 by NinjaDoc

[Tonik]

As a buyer, get an agent. Especially since you are a noob.  Won't cost you anything, the seller pays for that....their agent will split the commission with your agent. They will answer all your questions properly. Inspections vary from city to city, get it inspected even if the city does not require it. You make your offer 'pending inspection' then your dude looks it over.

 

Also you can purchase 'new buyers' insurance. Covers you for shit the seller didn't disclose and your inspector missed. It costs very little.

[nautical1]

My wife and I are in the process of looking at houses again so I will share my thoughts on it since this is the third time we'll be buying a house.

 

First off, get pre-approved to know your budget. From there, I would recommend staying under your max budget especially if you have limited money in the bank for any expenses that may pop up. Don't try and justify a house by saying you can afford it if if you just eat out less or something. 

 

Since you're new to the process/experience get an agent that knows the area you want to be in but also do your research to know what neighborhoods are nice and where to stay away from.

 

If you want closing to go relatively quick (usually can close on a house in 4-6 weeks depending on how much time the sellers give) then I wouldn't recommend looking at houses that are a short sale.

 

As for knowing the house price, take zillows estimate with a grain of salt. If you can, see how much the sellers originally bought it for and when they bought it. Also check and see what comparable houses in the neighborhood have sold for recently as well. A good realtor will have comparable on houses you're looking at and can give you a rough idea of what it's worth. I'll also mention that I found realtor.com to be much better than zillow. Realtor.com had houses listed that zillow never even showed that we ended up missing out on which can really suck. Also take into account the cost of taxes for each house you look at. You're lender should tell you what your max budget is for the house price along with the annual taxes as well.

 

And find a good inspector to hire for your inspection especially if you're not familiar with what you're looking at. Along with that I would also recommend getting a warranty (good for one year and will cover any main expenses, you just have to pay X amount). You can try and get the sellers to cover the cost or do it yourself. I believe you get money back after the warranty expires if you have no claims but I'm not 100% sure and that may vary by company.

 

Finally,  don't settle or get discouraged if something you don't truly like pops up. Good luck to you, it can be a real pain but after all is said and done it's nice to have a place to call your own.

Edited August 22, 2015 by nautical1

[magley64]

Get a Realtor, they have higher ethical standards than real estate agents.

[zx3vfr]

If you are financing, 15 year fixed is the best way to go.

 

Truthfully, if you can't affoard to pay it off in 15 years and you say to yourself, oh I'll go with a 30 year fixed and pay extra, it most likely is not going to happen.

 

 

In before I get flamed for not wanting people to bet the difference in money in the stock market hoping to earn more money over that time than you would pay in interest.

 

We got our 15 year fixed through Home Savings and Loan out of Youngstown @ 2.785% earlier this year.

 

The guys name is Dave Beltz and he's awesome.

[zx3vfr]

As a buyer, get an agent. Especially since you are a noob.  Won't cost you anything, the seller pays for that....their agent will split the commission with your agent. They will answer all your questions properly. Inspections vary from city to city, get it inspected even if the city does not require it. You make your offer 'pending inspection' then your dude looks it over.

 

Also you can purchase 'new buyers' insurance. Covers you for shit the seller didn't disclose and your inspector missed. It costs very little.

I wish we would have bought new buyer insurance. The previous owner was a fuckwad and didn't use any thread sealant on plumbing fixtures and bought home depot house brand specials., and there was mold in our under sink cabinent in the kitchen from a slow drip our inspector missed.I ended up replacing all 3 because they were hampton bay or w/e the fuck HD sells made in Meziko-China garbage. Cost well over what that insurance would have cost. Not to mention the other crap he hacked together.

[MichaelS]

The biggest thing I noticed coming from Colorado is how high the taxes are in Ohio.  Definitely look those up and factor those in.  Factor in increases in those as well because they will go up.  Unless you are handy around the house I wouldn't go too old construction wise.  As others have said at least a one year home warranty is a good idea.  Our realtor told us most sellers provide those.  If not, ask them to.  Just because a lender may approve you for $500k doesn't mean you should spend that much.  You can ask for all the closing costs to be coverd by the seller as well.  Some will, some won't.  I also agree look up when the current owner purchased and for how much.  That will give you a little info on how much room they may have to negotiate. 

[Bubba]

If you are financing, 15 year fixed is the best way to go.

 

Truthfully, if you can't affoard to pay it off in 15 years and you say to yourself, oh I'll go with a 30 year fixed and pay extra, it most likely is not going to happen.

 

There's a kernel of truth/wisdom here, but there are other very simple options that accomplish the same thing as a shorter term loan.  As was stated earlier, the accepted age-old mantra of "Buy the most expensive house you can afford" is prolly outdated and no longer wise, given the state of housing price fluctuation.  And if you're kind of...ummm...middle age (my condolences--I was there a long time ago)....you really don't want to be carrying a mortgage into retirement, so a 15 or 20 year term is better and saves you a butt-load of cash over the course of the loan.  However, once you sign up for a 15 year loan, you're committed to the payments and can get burned if you ever hit a soft spot in your monthly cash flow.

 

We signed up for a 30 year loan--you pay maybe a 0.5% to 1.0% higher interest rate than for a 15 year loan--but we made double principal payments every month.  This sounds like a stupid and expensive ploy, but the beauty is that the initial principal amount is very small compared to the interest portion and it cuts an entire month of interest off your final total, doesn't cost you much at all initially, and it shortens the final payment term by nearly as much as if you had opted for the 15 year term.  As the loan progresses and the principal gets larger, you can continue to pay double principal or--if money is tight--only pay your normal monthly payment until your cash flow is adequate again.

[Bubba]

1. Is an agent really needed?

Go thru a realtor.  Most houses are sold using one anyway, and the seller pays the commission, typically 6-7% of the sale price.  One thing to know up front--the REALTOR REPRESENTS THE SELLER, as that is who is paying the commission.  You can hire a realtor to act as your agent, but you'll pay at part of the commission out of your pocket.

 

2. How does an agent help if we already have an idea which house to go for?

If you're paying for an agent, he/she represents you, not the seller.

 

3. Does he take care of all the paper work regarding closing etc?

Yes, for the most part.  Do your own legwork  and call around to help find the best mortgage rate and closing terms available.  Better rates are typically available at regional Savings & Loan outlets as opposed to bigger national bank chains.  You should also arrange for an independent whole house inspection, which will come out of your pocket.

 

4. Is the procedure for closing a long and arduous one? i read about getting home inspected etc? can these be arranged by ourself/ or does agent take care of this?

The normal time from contract signing/acceptance to closing is approximately 45-60 days, depending on market activity and what bank you choose.

 

5. Suppose a house is listed at 240K zillow estimate is 200K what is a reasonable/ decent offer to make? dont want to offend by low balling too much (like used bike ) also dont want to offer more obviously.

As with everything, including houses, asking and getting are two different things.  Certainly depends greatly on the location and prolly depends on the amount of time the house has been on the market (which is an important thing to ask/find out).  The longer the market timing, the more likely the seller will be flexible.  Typically in the midwest, an offer of 10% less than asking price isn't considered too low, but it PAYS TO DO YOUR HOMEWORK BEFORE MAKING THE OFFER.

 

6. What other things should i be looking for when scouting for houses? Location wise and type and size wise we have (she has ) definite dream. But its the other details that we have no clue. eg type of heating/cooling / electrical / how old is real bad / what long term expenses we should keep in mind / etc What else comes to your mind?

Regular maintenance items that a buyer might encounter:  Heating/cooling systems have a life span of anywhere from 10-15 years (AC compressor), furnace around 12-25 years, water heater around 7-15 years, roofing around 20-40 years (asphalt shingles 15-25, metal 20-40 years), carpet around 3-10 years, kitchen appliances (stove/refrig/microwave/disposal) around 5-15 years.  High quality flooring, windows, bathroom fixtures, etc, should last 20+ years and only need replacing in the event of being dated/out of style/mandate from spouse!!!

 

7. Any advice for a super noob like me? anything that comes to mind tell me even if you think its silly/ basic as i am starting from almost null experience level.

Have fun and look on it as a great learning experience that will bring you and wifey either closer together or cause a divorce, depending on circumstances.  If it's your first house, you're bound to make mistakes but you'll still end up loving having your own place to call your own!!!

Edited August 22, 2015 by Bubba

[bloodninja420]

I cant see many reasons to use a realtor as a buyer in the age of Zillow.

Zillow/Trulia let you find listings and compile comps in a much more user-friendly interface than anything a local agent is going to be working with.

And you immediately cut 2-2.5% off the house price that normally would have been paid to the buyers agent.

Your lendor can walk you through the nuts and bolts of the transaction just as well as an agent would have.

There are plenty of attorneys who will review or draft a purchase agreement for a flat fee of a couple of hundred bucks.

Negotiate with the Seller's agent0

[Tonik]

Just to be clear, dont buy in the Youngstown School District.

[jbot]

so where ya moving to?

[zx3vfr]

There's a kernel of truth/wisdom here, but there are other very simple options that accomplish the same thing as a shorter term loan. As was stated earlier, the accepted age-old mantra of "Buy the most expensive house you can afford" is prolly outdated and no longer wise, given the state of housing price fluctuation. And if you're kind of...ummm...middle age (my condolences--I was there a long time ago)....you really don't want to be carrying a mortgage into retirement, so a 15 or 20 year term is better and saves you a butt-load of cash over the course of the loan. However, once you sign up for a 15 year loan, you're committed to the payments and can get burned if you ever hit a soft spot in your monthly cash flow.

We signed up for a 30 year loan--you pay maybe a 0.5% to 1.0% higher interest rate than for a 15 year loan--but we made double principal payments every month. This sounds like a stupid and expensive ploy, but the beauty is that the initial principal amount is very small compared to the interest portion and it cuts an entire month of interest off your final total, doesn't cost you much at all initially, and it shortens the final payment term by nearly as much as if you had opted for the 15 year term. As the loan progresses and the principal gets larger, you can continue to pay double principal or--if money is tight--only pay your normal monthly payment until your cash flow is adequate again.

We opted for the 15 year because our payment is (was) 541 a month and we figured if we can't swing $550 a month we have no business buying a house in the school district we both grew up in so our kids could go there. We have fully funded emergency fund to cover minimum 6 months expenses.

But the neato thing is the payment was 541 and I just pay 550 a month and 7 months later our minimum payment is something like 503 and continues to fall.

[zx3vfr]

Also nitpick EVERYTHING. If the carpet is worn out that's worth a good 2-3k off the asking price. Etc

[MichaelS]

I don't seem to see an edit feature so I will write this in another post.  If you don't have the 20% down you can try one of the lenders that will do down to 10% without PMI.  PMI is the devil!  You pay and pay and get nothing for it.  If you cannot get a loan without PMI see if they will let you prepay it.  It will save you thousands upon thousands in wasted money. 

[NinjaDoc]

Thank you for all the great responses, Really this has been very helpful as i realized many stuff after its been highlighted. these things i just eyeballed and neglected during internet scavenging.

 

Jbu, am looking at somewhere around canfield  area

[J_Copeland]

Canfield,Austintown have some of the highest property taxes anywhere in NE Ohio.

Look at maybe Hubbard,Girard,Howland areas will have great houses with lover taxes !

[Gump]

Canfield is the redneck of youngstown. God help

Your soul .

Edited August 24, 2015 by Gump

[NinjaDoc]

hahah

 

I am trying to stay close to 11 as well as boardman due to being close to good day care etc, plus i will be driving between east liverpool, salem/ lisbon and boardman every day

 

Am i making a mistake by dealing with the realtor who listed the house for sale directly without my own agent?

Edited August 24, 2015 by NinjaDoc

[MichaelS]

hahah

 

I am trying to stay close to 11 as well as boardman due to being close to good day care etc, plus i will be driving between east liverpool, salem/ lisbon and boardman every day

 

Am i making a mistake by dealing with the realtor who listed the house for sale directly without my own agent?

 

 

The listing agent has a duty to get as much for the seller as they can.  So they are not looking out for your best interests.

Edited August 24, 2015 by MichaelS

[Gump]

East of east Liverpool area is nice. We could be country neighbors!

[jbot]

if the seller has an agent, get yourself an agent ASAP

[Bad324]

definitely don't use the sellers agent. And dont let your realtor dictate price. I've bought 2 houses in the last 3 years and both realtors told me my offer was a low ball and would make the sellers mad in which neither happened and I paid what I wanted for it. Had I listened to the realtor I would have paid 10-15k more

[Mary#17]

1. Is an agent really needed? No, but as the buyer it is in your best interest. Seller pays the fees. 

 

2. How does an agent help if we already have an idea which house to go for? Good agents will know the house's true value and how to negotiate for the best price. They can also negotiate extras.  Sellers are very emotional and vested in their homes. It's better to have a neutral party doing negotiations as it's easy for feelings to get hurt and it's just better to have the agent do those negotiations. Yes, it's business but this is also often a person's dream.  First house. Kids grown up there etc...  Don't be afraid to offer a low price if you feel you can justify it. You also need to be prepared that a price that is too low will piss off the seller and they will become more difficult to negotiate with then. Pride and principal can a be a b*tch. Supply is low in most markets which can be challenging for a buyer. 

 

3. Does he take care of all the paper work regarding closing etc? Yes.

 

4. Is the procedure for closing a long and arduous one? i read about getting home inspected etc? can these be arranged by ourself/ or does agent take care of this?

Depends on the situation. Some close quick, others takes lots of time. Short sales and foreclosures can be notoriously difficult to navigate. Empty homes can typically go fast. Depends on your bank and their bank as well. Absolutely get a home inspection. Try to get references from friends and family as they vary greatly in terms of skills and experience. The home inspection is extremely important!!!!

. 

5. Suppose a house is listed at 240K zillow estimate is 200K what is a reasonable/ decent offer to make? dont want to offend by low balling too much (like used bike   ) also dont want to offer more obviously.

Zillow is good as a starting point but it is certainly not the end all be all. Zillow does not have the ability to do apples to apples comparisons. It just looks at the basic features of the house and compares it to other homes in the area. It has no idea if the house has been updated.  It sometimes doesn't even have all the data accurate so use it as a starting point to review. Look at other homes that have sold and their features and then compare it to the house you are looking at. Your realtor should provide you with comparative comps in the area. 

 

6. What other things should i be looking for when scouting for houses? Location wise and type and size wise we have (she has   ) definite dream. But its the other details that we have no clue. eg type of heating/cooling / electrical / how old is real bad / what long term expenses we should keep in mind / etc What else comes to your mind?

 

Come up with a checklist of items and then prioritize by must have and would be nice to have.

Be realistic. If you are looking at used homes, they are used. Don't expect perfection. Even new homes aren't perfect. It's also almost impossible to find a used home that has EVERYTHING you want. Be prepared to compromise.

Don't look at 50 houses. It's a waste of your time and the realtors. If you keep thinking the next one will be better, you may miss out on the perfect house. 

Be prepared for something to break. If you can negotiate a home warranty, that would be a nice extra for peace of mind. 

Drive the location at different times of the day.  Traffic and such can vary greatly. 

You can't changed the location of the house and building additions can be pricey and/or impossible in some cases. 

Look past people's decorating.  Our first house was a county loving, pink lace with baby blue accents wet dream. Not my style and my husband gagged and cringed throughout much of the tour but the bones of the house were great. Paint, new window treatments and some carpeting made an amazing difference. All relatively inexpensive fixes. 

Kitchens are the most expensive and difficult to remodel.  Keep that in mind. Also keep in mind, dated oak cabinets looks great painted or stained black. Very in style right now. Bathrooms are close second.

Windows can make a world of difference in heating and cooling of your home. Newer windows are better. 

Gas is cheaper than electric. A gas furnace and water tank would be preferable to electric.

 

7. Any advice for a super noob like me? anything that comes to mind tell me even if you think its silly/ basic as i am starting from almost null experience level.

 

Good Luck! Hope you find something perfect!

[NinjaDoc]

again thx a lot, really  appreciate a lot esp those who took time to write down extended answers and send me great PMs.  Feel much more confident now and sort of have an idea.

 

This week will start with pre approval and getting an agent

 

1. I have always kept banking with Huntington and prolly will start by taking to them guys about rates, Or is there a different way i need to go when shopping for home financing.?

2. Do i randomly look or walk in to a realtor office like howard hanna or mayo etc and pick an agent? Dont know any one personally / cant find any local reviews on realtors.

 

unless u guys know some realtor and home inspection guys in boardman canfeild area.