Nothing to do with flowers, But need advice.

shannonlovesflowers

New Member
Oct 16, 2007
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Albuquerque
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New Mexico
So Donnie and I are trying to buy our first house ever.

We were approved for way more than I want to spend.

So we have been looking at foreclosures. Which is kind of sad, but reality. My parents have never owned a house, so I can't ask them anything. We never know how Donnies parents will react to anything we do so we aren't telling them anything until it's a done deal. His mom is the jealous sort and it will make everybodys Christmas miserable if we say anything to them.

Anyway- Any advice? Anything I should expect that came as a surprise (and not a good one) to you? Anything you wish they would have said or you would have wanted to know before buying a house.

I know NOTHING when it comes to stuff like this. All I do know is We can buy a giant house- practically a mansion to me and Donnie- for what we pay in rent.

So here's a decription of the house we are putting in an offer today for.
It's 2000sqft. 2 stories, white stucco, spanish tile roof, 3 bedrooms 2.5 baths, oversized 3 car garage, big old back yard, Formal dining and entry with cathedral celings, den with fireplace, good sized kitchen with a bay window for a breakfast nook, range and dishwasher, utility room for washer and dryer, attic, extra room upstairs that will become my computer room that has french doors, master bath has garden jazzuci tub, and a seperate room with a full sized shower and toliet, double sinks, and a big old walk in closet. The down stairs powder room is bigger than the master bathroom we have now. Rose bushes are at all the windows. It was built in 1998. The house is sort of on a hill and from our back yard we see the city and a bunch of spanish tile roofs- it's a pretty cool view.
The carpets are filthy and it will all need to be repainted, there are a few tiles in the kichen counter that need to be replaced, and eventually we will need to replace the floor coverings.
The amazing thing to me is our house payments will be less than what we pay in rent.

When we went and looked at it on Saturday morning before we went to work I really looked and looked for cracks and doors that wouldn't shut properly- stuff like that.

The last house we put a bid in for we looked at at night time. And we were all excited, but then we went back during the day and there were lots of cracks and the front door wouldn't shut properly so we were like "see ya"

My friend Melena said to look for cracks and doors not shutting properly. That usually means the foundation has shifted. At least that's what she told me.

Anyway- Most you guys have more world experience than me so I was hoping that maybe you can offer some advice about things to ask about or to negotiate, etc.
I feel really clueless and don't want to not ask something I should have. I get really excited about things and do things impulsivley and I know I need to slow my roll and calm down and ask the right questions before we marry a house.
 
do NOT buy a house without getting it inspected by a reputable home inspection company. They know what is code and what isn't. They will also look at stuff you don't even think about. They will check heat plant, water heater, pipes electrical etc. You can base your offer on whether or not it passes this inspection. If the house is to be found with major problems you can walk.

but
why are you looking at such a big house for the two of you? What if you bought a smaller house with a smaller mortgage and then bank your "extra' to put toward your shop purchase? Do you like to Clean house? Not me... :)

also with such a big house don't forget about the cost of heating and cooling. Is there any way you can find out what the bills were. Utility costs aren't going down. :)
 
Over here it is law that you have to get a survey done which is kind of like an inspection. It can show up all kinds. You can also get surveys of the area done to check that they are not going to build a major road right through your house and force a sale or build something close to your house that may affect the price of the property. Check for any planning permission that may have been asked for. I know it sounds stupid but if there were plans for a prison or mental home to be built close by, you can bet that the house would not be worth much.

Drive by the area of an evening as well to see what it is like, you know, kids hanging around etc etc...

I am not sure how your houses are made but the major costs over here are the roof, subsidence, pointing on the brickwork outside, and boilers. All other stuff imo is cosmetic and can be fixed as you go along.

Every house we have had we have started with our bedroom and worked on each room, of course once it is all done you have to start again lol..

Good luck
 
Congrats on deciding to buy a house! We just did a couple of months ago.
I agree with Kristine, get a good inspector in there, also make sure you get a good title search and that the search is insured - I had never heard of that, just figured that if you pay to have the title searched, that the people would actually search it, and guarantee their work, but no! at least not in Louisiana.
 
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I would definitely get a home inspector. They will check over everything. Follow them around so you know what they are looking at and ask them lots of questions. Does anything major need replacing, if so negotiate that in the cost of the house. Ask the seller to pay the closing cost. It is definitely a buyers market right now. Their is soooooo much inventory that you have room to negotiate, unless there is someone else interested in that same house, then you might have a bidding war. Check for any drafts by windows, doors, etc. because then that is your heat or AC going right out the window. Check for water spots on the floor, ceiling, etc. Go to your local town hall and check on the house. If they recently renovated anything it should all be in the town files. If it is not then whoever did the work never got a permit. Depending on what town or county you are in, YOU as the new homeowner are now responsible for the original homeowner not getting the proper permits that you could get fines once it comes time to close on the property.

Find out what the local COMPS are in the neighborhood and what the homes in the area sold for. This is a starting point on how much you should be offering on the home. Anything from there that needs replacing take off the price of the home. Some people budge others don't. Hope this helps.

Kristin
 
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Well our apartment is over 1400sqft. We have huge families and they always come visit us. Also- I am the hostess with the mostest and we always need room for family. Plus we just want a big house. And Donnie is in love with the garage and I'm in love with the master bedroom. Most place we rent are 1300sgft to 1800sqft. Just not as grand as this place.

There are literally houses at 2300sqft that were built a couple of years ago in Albuquerque that are selling for $125000.

Houses are pretty dang cheap in Albuquerque except for in the NE Heights. The same house if it were located in the NE heights would run about $250,000 to $500,000 depending on location. The same house in Durango would run well over a million- literally.

Gas is pretty cheap in New Mexico. And the winters are very mild. I think our biggest gas bill last year was maybe $75. In Durango our gas bill would run anywhere from $300 to $450 in the winter.

Cooling is cheap too because on this house it's an Evaporative cooler. Basicly a fan with wet pads cools the house. Very effective in New Mexico. I love evap coolers better than refergerated air, and Donnie knows how to work on them.

Our electric bill always runs about the same. About $40 to $70. regardless where we live. We always get credits from the electric company for low usage.

The Spanish tile on the roof rocks cause it lasts forever.

And we just really like this house and it's the price we want, and it's in a good zip code so that's why we are going for it.
 
We just went through this a year and a half ago with my youngest daughter. We tromped through more houses than you can imagine, every single week-end and some evenings from right after Valentine's Day to May. She put offers in a few times, actually offering exactly what the banks were asking, just to be turned down, even though she had a pre-approved mortgage.

After speaking with some other agents, we found that the banks would start at these outrageous prices to get lots of people to come through and fall in love with it, to start a bidding war. I had a customer who had this exact thing happen.

Anyway, she found one that felt like home.It was a foreclosure, so the price was great for a 23 year old single girl, and she started out with $30k instant equity. She offered two or three thousand MORE than what was being asked, and it still took the bank almost a month to accept her offer. My guess is that if anybody else made offers, they stuck with what the bank was actually asking.

I concur most vehemently about getting it inspected. If you are making the offer today, be sure that it is written in your offer that it is contingent on your inspector's approval. Even though my daughter had hers inspected, the night we were moving her in we washed all of her dishes. Bringing the china downstairs, we discovered the basement was flooded with sewage. We had roto-rooter come out and scope it, and the sewage tiles were crushed, huge tree roots going through.

Luckily, the city she lives in has a low interest loan program for such occurrences. One thing you can be sure of though is that something WILL go wrong, it's just part of owning a home, same as a business.

If yours IS a foreclosure, most likely it is being sold "As Is". So if there IS anything wrong with it, it's your problem, not theirs. That is why you get the inspector. We would probably have urged her to buy this one even had we known about the sewer, it was a a really great deal and is a sound property.

Good luck Shannon, what a scary and exciting thing!
Linda
 
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The financing we are approved for states we must get a inspector and a surveyor. In fact I think it's a law in NM but I'm not 100% sure.

So that's not a problem.

I do love this house but I'm sensable. If it's too much or they want to play a game- I'll just move on to the next house. There's a million houses for sale in Albuquerque. A house we looked at the same morning is only 2 years old and has been for sale for over a year. People are just not buying houses right now.

Lucky for us our lease where we rent is up at the end of January. We can sign a new lease (no way Jose) or go month to month and only have to pay an extra $100. That's what we are going to do if we don't have our house yet.

We will see what happens.
 
Don't buy bigger than what you can afford. For a while in my life I felt like I had too much house for our income. There are ALWAYS repairs to be made, taxes to pay, etc. You want to fix the place up, buy window treatments, furniture, etc. Don't have a mortgage payment so high that you don't have money for the other stuff -- even for just going out once in awhile or for a vacation, etc. I've seen people with large homes with empty rooms because they couldn't afford to furnish it.
 
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Is there property tax in NM? cuz it's a big issue here. Also a home inspection is no guarantee. Our furnace went out 6 months after we bought the home and our bedroom ceiling heaves in the summer (it has to do with the humidity not the sex)
The kids in Indy had electrical problems and a leaking roof - that's after proper inspections. So make sure you have some cash reserve or really good insurance policy. best wishes!
 
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Thought of a couple more things~

Most mortgage companies these days will put your property tax and insurance in escrow accounts, and hopefully you have checked out how much those will be. If your mortgage is something like 80% or more of the total value of the house, you may be required to pay mortgage insurance so ask about that, too.

None of these things are reasons to not buy a house, I definitely think you have your heads on your shoulders about this.

You should check and see if there are any first time homebuyer breaks you can get from NM or the city, you never know.
 
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Ditto on the home inspection. It is a must!!!! Also factor in real estate taxes, homeowners association fees if any and insurance before deciding it is cheaper than your current rent. A word of advice from our current economic situation. Go for the smaller house and bank the extra for all the headaches that come with owning a home, like furnace, roof, hot water heater repairs, all things that will strain a budget. Now for the good side, enjoy owning your own home!!
 
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Are you working with a real estate agent? A good real estate agent can really walk you through everything and help you make a good decision. You probably know this, but owning a home comes with A LOT of expenses other than the mortgage. As mentioned by others in the thread...do you know what your taxes are and are you including them in your monthly payment? What about home owner's insurance? Maintenance is also a huge issue....it's not just the big stuff like a new roof or furnace....it's the everyday little things like lawn care, replacing a window, etc. You can figure that every month there will be some maintenance cost. Good luck and congrats!
 
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yeppers...

All of the above mentioned, even mortgage insurance is included in the monthly payment. The financing Donnie and I are getting is really strict. We play by their rules. We even have to take a "home owners counciling" class.
We do have a real estate agent. Actually I had a different one, but she was sort of dumb- so I got a new one. I decided I have not much of a clue what I'm really doing so whoever is helping me had better know what the hell they are doing. This is a huge deal for Donnie and I and I want a good real estate agent.

Our home owners insurance, taxes, mortgage insurance, etc is included in our payment.
Lucky for me my house comes with a built in Maintence man (Donnie) ha! It also comes with a built in cook! (moi)

Most of the houses have instant equity so if I needed to get a loan for a big repair we could.

With the money we make now- we manage to save about 10-20% of what we make. So hopefully we will be OK.

The most scary part of this for me is roots. Putting down roots is really not my style. buying the shop is roots too.... For a gypsie- roots are sort of scary. But good grief I will be 40 next year and I guess I have to grow up sometime.
Donnie tells me the other day- "It's like were grown ups! We brush our teeth and use mouthwash and everything!" he was being silly BTW.. I told him when we floss everyday we will officially be grown ups.
 
Oh and yes, I do know what the property tax will be. It's actually sort of high BUT I'm down with that because it's a realy really nice and desireable west side neighborhood. it's close to shopping- but not too close. It's only about 20 to 30 minutes from the shop. Or more in crazy nuts traffic..
I so hope we get this house for the right price. Please keep your fingers crossed for us.
 
Oh and yes, I do know what the property tax will be. It's actually sort of high BUT I'm down with that because it's a really really nice and desirable west side neighborhood. it's close to shopping- but not too close. It's only about 20 to 30 minutes from the shop. Or more in crazy nuts traffic..
I so hope we get this house for the right price. Please keep your fingers crossed for us.

Shannon, buy the house that gives you goosebumps, the advice you've received you should listen to, and make sure you understand the costs associated with foreclosures AND the "exit mentality" of people being thrown out of their homes!!
Many hard working people will take out their frustrations on the house that they are being forced out of...watch for the "hidden agenda".....
 
Lots of great advice here! I would add this about buying a foreclosure or short sale: you'd better have your patience hat on. The bank can take 45-60 days to approve the offer, and then you'll pay for your inspection and appraisal, which will be another two weeks or so. So just be ready to W-A-I-T! However, you will be rewarded for your patience when it's all done!

And, silly random things I never thought about when I bought my first house: lawnmower (duh, right? but it's another couple hundred bucks to fork out at moving time), trash cans, gutter cleaning... all the things you don't need when you're in an apartment. All of these little items add up to a thousand bucks in no time!

Best of luck to you guys... and enjoy it!
 
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Oh, and when you move in, when you're doing all the little things to the house to make it yours ... keep in mind that everything will cost you "a couple hundred bucks." :loopy New light fixtures for the bedrooms? A couple hundred bucks. Fresh paint? A couple hundred bucks. New fixtures for the kitchen sink? A couple hundred bucks...

Seriously, I think I went to Home Depot 2-3 times a week the first couple months after I bought my homes, and each time it cost me a couple hundred bucks!
 
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Lots of great advice here! I would add this about buying a foreclosure or short sale: you'd better have your patience hat on. The bank can take 45-60 days to approve the offer, and then you'll pay for your inspection and appraisal, which will be another two weeks or so. So just be ready to W-A-I-T! However, you will be rewarded for your patience when it's all done!

And, silly random things I never thought about when I bought my first house: lawnmower (duh, right? but it's another couple hundred bucks to fork out at moving time), trash cans, gutter cleaning... all the things you don't need when you're in an apartment. All of these little items add up to a thousand bucks in no time!

Best of luck to you guys... and enjoy it!

Thanks!
Actually- Waste management provides garbage cans- we can get recycle cans too!
We had a big 'ol house in Durango we rented with a giant yard, we had a small yard in Farmington- So we got a lawn mower. Shoot- we even have a evap cooler! So if the one on the house don't work, we're covered. My hubby is a pack rat and buys all sorts of stuff. We even have a coke vending machine, a deep freezer, enough stuff for 8 bathrooms, etc. We have stuff in a storage unit right now. I can't wait to get it all out of storage. So we will lose that bill too!

I know it's gonna take a while. I don't expect to close until the end of January at the soonest. Our lease ends at the end of January so we will have to pay one more month where we rent which will work out fine because we need to get the new place ready. If the deal falls through for whatever reason- We will be on a month to month basis with the apartment complex. We only have to pay an additional $100/mo for that.
Plus it gives us more time to save more money for stuff and like window coverings, new paint, carpet cleaning, etc.

Everything that everyone has told me, I've been aware of, so that's awesome because it means I knew more than I thought I did.

I even made my real estate guy break down all the fees and all the money we need to come up with out of pocket- and to figure all that stuff at worst case scenario. I'd rather be prepared that blind sided!

Thanks everyone! I appreciate all the advice. You guys are awesome!