Diamonds Posted February 13, 2010 Report Share Posted February 13, 2010 Well, The wife and I have been married for about 6 months now and we figured we'd take the plunge and buy our first home. We want to build some equity, get a decent home, and get that phat 8k check from the government. Besides, we are paying about 300.00 dollars less in rent than it would cost to own decent house. We are pre-approved for double what we are willing to spend so we should be good in that dept. I am taking advice on the "do's and donts" of home buying. So far, here is what i have come up with. 1. in this market (nationwide) how much (percentage) can i expect to get off of a house. Lets say theres a house for 200,000 dollars, what should i offer, and what factors should i take into consideration? 2. how do i find the deals (ie - REO's & homes that have been on the market for a while). Our goal is to buy a nice starter home and make some money on it in 7-10 years. What should i look for? how old should i buy? how old shouldnt i buy? etc? We are open to quite a few regions (Gahanna, New Albany, Westerville, Worthington, Lewis center, Powell, Grandview, and German Village) Anywhere else is either out of our pricerange or not conducive to our work locations. Also, If you know anyone selling something in these areas let me know. I'm considering anyhting within my favored regions. Thanks for all the advice in advance guys, Im getting kind of excited to buy a home. I have to be in contract by mid April to get the 8K. Quote Link to comment Share on other sites More sharing options...
LJ Posted February 13, 2010 Report Share Posted February 13, 2010 1. in this market (nationwide) how much (percentage) can i expect to get off of a house. Lets say theres a house for 200,000 dollars, what should i offer, and what factors should i take into consideration? It's all about local comps. A house on the market for 200k may go for 185 in 1 neighborhood but bottom out a 198k in another. If you get a good realtor they should be able to do all that for you and advice you on a good offer. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted February 13, 2010 Report Share Posted February 13, 2010 If you are looking, I would be happy to refer you to our realtor. MKV Aaron just used her, and she is awesome. She is top notch, helped us get into one hell of a deal on our current home, and got our Condo sold when other units in our complex didn't sell for the same $$. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted February 14, 2010 Report Share Posted February 14, 2010 Look for good school districts and pick a nice lot. we've had our home for a while and everyone who knows our area comments on our lot. It's not large, but it's the most private and tree lined. way nicer than the typical center lots where everyone sees each others decks, fences patios, etc. I would never own that type of lot. School wise, you'll want to get in a good district too. Not just for yourself but for when it comes time to sell. We like our area as we're Columbus Taxes, but Dublin Schools. Right across the road is Worthington and taxes are 2x ours. Dublin proper 3x-4x. Keep an eye on traffic too. Some subdivisions have streets that become the main drag running through them. Not a great place to be when cars are constantly zipping by 50-75ft from the front of your house. Only time someone goes down our street is when they live on our street. Makes for nice peaceful nights with the windows open. Congrats on making the move. Quote Link to comment Share on other sites More sharing options...
Akula Posted February 14, 2010 Report Share Posted February 14, 2010 If you plan to resell this house, look at the taxes and schools. Quote Link to comment Share on other sites More sharing options...
HAOLE Posted February 14, 2010 Report Share Posted February 14, 2010 I would look at the Oak and 18th street area..... good deals there Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted February 14, 2010 Report Share Posted February 14, 2010 Google is your friend. There are a lot of helpful sites that will fill you in on everything you need to know. Use Joes realtor since they seem to be legit and helpful. A good realtor along with knowing exactly what want will help tremendously. Also keep these things in mind. (Some were already mentioned) -Traffic -Crime rate -School district -Taxes (A suburban school district with city taxes ftw! ) -Neighbors.. If you dont know the neighborhood I say stop and talk to a few neighbors. -I hire my own inspector once I know its the house I want before closing. -Taxes fluctuate so leave some room in your budget for this. -Just because you are approved for $200k doesnt mean you need to buy a $200k house (Be strong.. some of the houses will be "perfect" and you will try to convince yourself that you can work it into your budget and your expected raise will cover it yada yada yada... DONT DO IT!!!) -I would also suggest a 15 year mortgage. When you get tired of it in 9 years you will get a lot more out of selling it. If I can think of anything else I'll post it up. Based on your post you know your budget and are open to feedback so you'll be cool. Quote Link to comment Share on other sites More sharing options...
nicktcfcsb Posted February 14, 2010 Report Share Posted February 14, 2010 Just an FYI licking county may be broke but it shows in the low home pricing and low taxes. I pay less than 130 a month in taxes Quote Link to comment Share on other sites More sharing options...
flyinbrian Posted February 14, 2010 Report Share Posted February 14, 2010 -I would also suggest a 15 year mortgage. When you get tired of it in 9 years you will get a lot more out of selling it. +1 on this. S15driftking's profile says 27 years old. Just imagine having your house paid off, (assuming you made no extra payments), in your early 40s. You will be set for a comfortable, possibly early retirement. Of course this goes against the grain of our consumption-driven society that believes in second, third, fourth, etc mortgages to buy boats, cars, and swimming pools. Take the 15 year advice, make extra payments, have a paid off house and the lowest stress level in your neighborhood before you know it. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted February 14, 2010 Report Share Posted February 14, 2010 Proud to say I'll be 44 when ours is paid in full. Perhaps earlier even as we lowered the amount of extra we've been paying lately due to my job change, but I can't wait. We did the typical 30yr and a second mortgage when we first bought the house, but have typically made 2x payments and in some cases more. If you can afford it, it's a beautiful thing. +1 on this.S15driftking's profile says 27 years old. Just imagine having your house paid off, (assuming you made no extra payments), in your early 40s. Quote Link to comment Share on other sites More sharing options...
Diamonds Posted February 14, 2010 Author Report Share Posted February 14, 2010 +1 on this. S15driftking's profile says 27 years old. Just imagine having your house paid off, (assuming you made no extra payments), in your early 40s.. What if i dont plan on owning the same house for more than 7-10 years? Im not planning on settling in this house, simply a decent starter home. Should i still do 15 years? Quote Link to comment Share on other sites More sharing options...
flyinbrian Posted February 14, 2010 Report Share Posted February 14, 2010 Proud to say I'll be 44 when ours is paid in full. Perhaps earlier even as we lowered the amount of extra we've been paying lately due to my job change, but I can't wait. We did the typical 30yr and a second mortgage when we first bought the house, but have typically made 2x payments and in some cases more. If you can afford it, it's a beautiful thing. http://smiliesftw.com/x/nigepsflip.gifhttp://smiliesftw.com/x/bowcool_1.gif Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted February 14, 2010 Report Share Posted February 14, 2010 -I would also suggest a 15 year mortgage. When you get tired of it in 9 years you will get a lot more out of selling it. This is what I plan to do when I buy a house in a few years. 30 year loan, pay on it like a 15 year loan, and assuming we have jobs that pay ever week/bi weekly pay an extra payment a year. It roughly works out to paying it off in 14 years. If you just pay on a 30 year loan like a 15 year loan it works out to about 16 years depending on the rate due to the slightly higher rate. But if you have to, you can fall back on the 30 year payments with the 'penalty' that your rate is a little higher. Better than losing your house if you fall on hard times. Maybe that's not for everyone, but it's what I plan to do. I completely agree, unless you have to don't get a 30 year loan and pay on it like a 30 year loan. You pay down to around 80% of the principle in 7-8 years, whereas a 15 year loan (or 30 year loan paying like a 15 year loan) is something like 3 years. http://www.bankrate.com Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted February 14, 2010 Report Share Posted February 14, 2010 What if i dont plan on owning the same house for more than 7-10 years? Im not planning on settling in this house, simply a decent starter home. Should i still do 15 years? We are still planing on doing what I said above for my 1st house and we will probably plan on doing the starter home for a relatively short period of time. Very similar to what you are planing on doing. We've finally gotten to the point we are living below our means, saving money and loving it. Still plan to do that when we buy our house. The reason we plan on paying a lot is because you will still get equity back out of the house when you sell it to buy the next house. The other key here is what you are planning to do and what actually happens. Down payment, buy house, 30 year loan (paying down very little principle), sell in 7-8 years. You'll probably have 20% from paying down the loan+down payment% in equity ish. But what if that plan falls through? I want to have a contingency play. i.e. paying a 30 year like a 15 year to fall back on 30 year loan rates, paying down more than we need to when we can to put more equity in the house in case we need it. Go do the math at bank rate, and look at the amortization tables if you haven't already. It's mind blowing to me how long it takes on a 30 year loan to start paying down some real money on the principle. Why wait and only have your payments going towards only interest if you can help it? At least that's the way I look at it. Quote Link to comment Share on other sites More sharing options...
HotCarl Posted February 14, 2010 Report Share Posted February 14, 2010 Proud to say I'll be 44 when ours is paid in full. Perhaps earlier even as we lowered the amount of extra we've been paying lately due to my job change, but I can't wait. We did the typical 30yr and a second mortgage when we first bought the house, but have typically made 2x payments and in some cases more. If you can afford it, it's a beautiful thing. My best friends mom did this. Has a 30yr mortgage but pays the payments as if it were a 15yr mortgage. I think she fully paid off her house last year and now not only owns all their cars but their house, lake house, boat and several jet skis (their not particularly "rich" per say but just smart about their money i suppose) too bad she's not single Quote Link to comment Share on other sites More sharing options...
RC K9 Posted February 14, 2010 Report Share Posted February 14, 2010 One thing that has a bad stigma but is worth looking into is foreclosed homes. Just because it has been foreclosed doesn't mean it is some ghetto piece of crap. You can find foreclosures in almost all of the places you mentioned above at one time or another. I have seen them in Gahanna, Westerville, etc. The AVP of Purchasing atour company just bought a big house with 5 acres in Delaware that was a foreclosure. Just an idea. Quote Link to comment Share on other sites More sharing options...
RS69 Posted February 14, 2010 Report Share Posted February 14, 2010 If you are planning to have any children, you should research schools. The prices of many houses have to do with the school districts. Quote Link to comment Share on other sites More sharing options...
Aaron Posted February 14, 2010 Report Share Posted February 14, 2010 If you are looking, I would be happy to refer you to our realtor. MKV Aaron just used her, and she is awesome. She is top notch, helped us get into one hell of a deal on our current home, and got our Condo sold when other units in our complex didn't sell for the same $$. Yep, we used her because of your recommendation. She was/is great, and will definitely work hard for you. I wouldn't hesitate to recommend her either. She works hard, asks the tough questions so you don't have to, and will do anything she can to make you happy. She is a bit talkative and does smoke (obviously not beside you or in front of you, but it is worth mentioning if you are extra sensitive to that. We are very happy with everything, and our house now has a foundation!!!! Should be completed in mid May. Quote Link to comment Share on other sites More sharing options...
Aaron Posted February 14, 2010 Report Share Posted February 14, 2010 Here is my advice from just looking for our first home and entering contract. Houses at our budget are all about compromises. We only had about 160k to spend (didn't want to be house poor), so that limited us. To get a big yard and a basement, we were looking at locations that neither of us wanted to live. To get in the location we wanted (westerville address on the edge of new albany) we had to sacrifice some things. Just know what you value, think about what you are able to sacrifice and have fun. We are building a brand new Patio style house, giant 5 acre park across the street, 2 story 1650sq ft, upgraded everything and in the area we wanted. Sacrificed a big garage (still 2 car though), basement (slab) and a yard to get the location and "newness" we both are accustomed to. Many would never build where we did, but we are super excited and can't wait to move in. Quote Link to comment Share on other sites More sharing options...
RX-7 Addict Posted February 14, 2010 Report Share Posted February 14, 2010 Where did you build? I agree, its all about what works for you and your wifey. Worst thing people can do is have to have everything and then be spending too much on a monthly payment that they cant afford furniture or toys in the garage. Quote Link to comment Share on other sites More sharing options...
Aaron Posted February 14, 2010 Report Share Posted February 14, 2010 Where did you build? I agree, its all about what works for you and your wifey. Worst thing people can do is have to have everything and then be spending too much on a monthly payment that they cant afford furniture or toys in the garage. Albany Crossing........Dominion Homes. Its between Hamilton road and Ulry Rd off of central college. Westerville address by the boarder of westerville and new albany. Supposedly they have really upped their quality in the last few years to try to make a run at M/I. They are using name brand materials now, and their construction has taken a few steps up as well. Our Realtor said that she didn't sell Dominion Homes 5 years ago because of their bad quality and reputation, but has had great luck with their recent commitment to quality to match M/I. We got more house, in a much better location than we would have gotten with M/I. We were also limited by time to save up a down payment, so that really limited us to new builds or ones just started. We got most of the stuff we wanted, and are very excited. Quote Link to comment Share on other sites More sharing options...
Diamonds Posted April 14, 2010 Author Report Share Posted April 14, 2010 UPDATE - Well, we are in contract! Got the house inspected (structural engineer). We should be able to close by early May... 8k here i come!! Quote Link to comment Share on other sites More sharing options...
IVRINGS Posted April 15, 2010 Report Share Posted April 15, 2010 That is great. What side of town is the house in? We got a great deal on our place in Lewis Center just a few months back. Quote Link to comment Share on other sites More sharing options...
Diamonds Posted April 15, 2010 Author Report Share Posted April 15, 2010 its in Worthington. just west of 71, just north of 270 Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted April 15, 2010 Report Share Posted April 15, 2010 We are open to quite a few regions (Gahanna, New Albany, Westerville, Worthington, Lewis center, Powell, Grandview, and German Village[/b[) Anywhere else is either out of our pricerange or not conducive to our work locations. Anywhere else is out of your price range? You named all but one of the most expensive areas within 100 miles of Columbus. Quote Link to comment Share on other sites More sharing options...
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