(We did ask for appraisal, inspection and loan contingencies though.). inspection, your inspector will go slowly through the entire house, checking everything to ensure there are no signs of a problem, says Frank Lesh, executive Director of the American Society of Home Inspectors He clearly doesn't understand real estate or finances and I wouldn't take real estate or financial advice from him. But in the end we only need to sell it to purchase a retirement condo in 20ish years. We are tripping over each other and sharing work spaces. How you buy that house. One of the most significant factors when buying a house is the location. Hope this helps other first-time homebuyers :). It really helps us mentally separate out our tasks and easily leave "work at work". I also think it will take much longer than 2 months before you can find something you like, within budget, move-in ready (but I am in NYC), so you might as well rent for a year. Everyone is home ALL of the time. By using our Services or clicking I agree, you agree to our use of cookies. For me, I decided to buy. Did you sell? apartment 7 And, as the buying season cooled down for fall, homes were selling in about 62 days. Buying in a sellers’ market is not a good move. Don't buy a house at what the bank preapproved you for. We spent May through July going to open houses, made 2 offers and got 1 accepted on July 15. The third floor is dedicated office space, second floor bedrooms, and first floor living/kitchen/dining. 5 minute work commute. I always only worked nights. (Everyone is sleeping when I am working so it feels like I never leave). The Department of Housing and Urban Development (HUD) offers a variety of federal programs that may be able … We bought a house during the pandemic. financing First, we evaluated why we wanted to buy a house: We're in a 1-bedroom apartment right now, and we're planning on trying for a baby soon-ish. There is a reason why people want to pay premium now. Topenga? We're Buying a House. I love LA. investing Don't buy a fixer-upper situated on a busy intersection, next to a school, or across the street from an entrance to a landfill. Your first home is to build equity, not your forever home. 10/4/2020 -- House was listed the week leading up to the 4th. Credit Unions are a … Even with housing upkeep costs, it didn't make sense to rent, especially with the historically low interest rates. foreclosures Even if priced the same, I would have taken the one priced under our budget. Walks you thru from first thinking about buying to closing. Home sellers are taking their once-in-a-lifetime moment to sell their house substantially over … foreclosure, Press J to jump to the feed. foreclosure For my level of comfort, I would have to rent at about $1500 month for a house that is about 220K in my area. lending apartment mortgages loan Fortunately, hair grows back pretty quickly. So I'm going to graduate from medical school and am going to start residency in July! buying a house borrowing We just visited a couple open houses, one a house $100k over our budget, and one $100k under. It's different if can't afford it, but he can afford 4k a mo for rent, he can afford to buy. Buying a house, however, is an investment that will likely last you years, if not decades. Press question mark to learn the rest of the keyboard shortcuts. Even in the worst case scenario of both of us losing our jobs, we will be able to rent out the rooms in our house to make mortgage. However we'd be losing about 300 sq ft of living space (2200 vs 1900) and a garage. 4. There are a lot of reasons why college students should buy a house in college, if they can afford it. foreclosures posts on r/realestate and I wanted to share our perspective. I have a friend who's so negative on housing. (We chose a neighborhood where rooms rent out easily for a decent price.). OAKLAND, CA - DECEMBER 04: Rows of new homes line a street in a housing development on December 4, 2013 in Oakland, California. At the end, people who see money will have lot of money and people who see life will have well lived life. It's a 40 year old house with charm that has been remodeled, and not much immediate work would even be needed besides window replacements. These examples of undesirable spots sink even tip-top houses. The area we're buying into is a historically desirable neighborhood, and has been able to bounce back from a crash. If you need any advice, I’m happy to help. Many people said we should wait a couple of years since the market is so volatile - but do you really want to put your life on hold for 2 years?? foreclosure A kindergartener that is learning from home. He's been waiting for home prices to crash for the last 6-7+ years while spending $3500-4000/mo in rent. Not planning to buy for another 9 months or so unless something perfect comes along. 1. If you have a family, dogs, need a yard.....would have to rent a house probably, then buying a house who probably be better. With the COVID-19 pandemic, the 2020 real estate and housing markets have changed. While you’ll find lots of tips from real estate agents and banks, it’s also wise to listen to people who’ve been in your position. How to Buy a House in 7 Steps. financing It's really the extremes. It's really good advice. In fact, during the spring of 2019, homes sat on the market for a median of 53 days nationally. The market will swing in every way, if you don't decide how much of a loss you are willing to take, it would be very overwhelming seeing prices dropping later.Let's say, unfortunately, home value does drop 11%, instead of freaking out, you can have a glass of wine knowing you will be living in the comfort of your own home for a while. Applying for a mortgage after making an offer on a house tells home sellers you may not be as motivated to buy as others. Credit scores typically range from 300 to 850, and borrowers within a certain range can qualify for mortgage loans. In the end, market value wasn't a determining factor for us because we're planning on living in this house for the next 10-20 years (at least), and even if our house value dropped 20%, we'd still have paid less than if we were renting (even taking into consideration house upgrades and upkeep). houses For me, the pandemic really exacerbates the things I hate about my apartment. We're in a very privileged situation where we can afford to cautiously proceed with our life, and we've accounted for as many risks as we can. "We had offered on well over 25 houses at that point. Both staying at home.. There are like hundreds of cities actually. Unofficially my company is bracing for more rate cuts this year. In many ways, rental houses are similar to owner-occupied houses that are bought as personal residences. We are looking to maximize the value of our current home as we need the equity for a down payment on our next. On top of our emergency fund, we had set aside enough cash to cover all the major costs of buying a house: down payment, closing costs, moving fees, furniture, remodeling, and the additional one-time tax we'd have to pay on the property. If your income is going to increase and that's a bet you're willing to take then go right ahead and buy at your approved number. I had the pre-approval already and was off my rocker kind of angry seeing these properties sell so fast. EVERYONE from inside this square will say they are from “LA” that’s just how we do it here. If the bank preapproves you for $300k don't buy a house at $290k. We had a 6-month emergency fund that would cover all our bases. So we made peace with paying 8% over asking, and we're getting ready to close next week :). How to Buy a House Specifically to Rent It out for Profit. Cookies help us deliver our Services. If not, the ban on us showing homes ends next week. Many people said we should wait a couple of years since the market is so volatile - but do you really want to put your life on hold for 2 years?? If you hated your home in 2019, you really hate it now. It took us 6 months, 100+ listings and probably a dozen open houses to figure out what we wanted. loan New comments cannot be posted and votes cannot be cast, real estate Will really drive home how his ‘strategy’ is working. Great neighborhood. Use this step-by-step guide to buy a house the smart way. One of the smartest things you can do to ensure your chances of buying the home you want is to apply for a pre-approval on a mortgage. Buying a house takes time. Mortgage companies tend to be the best. A shit load of towns - in this square are some of the most expensive and hard to get real estate in the world. Our offer price was 8% higher than asking. In fact, according to a realtor.com survey of 1,300 consumers during the week of April 5, 24% (or 1 in 4) said they'd be willing to buy a home without seeing it in person. By using our Services or clicking I agree, you agree to our use of cookies. Here, when people say “LA” they really mean a college of communities - can be everywhere from pasadena down to Long Beach over to palos verdes up to Thousand Oaks and back over to pasadena. We were both WFH pre-Covid anyways, so our house was generally already set up for the lifestyle. Sold about two weeks ago for $35k over asking! If you are buying a house older than 1980, you can assume it probably contains at least some asbestos. Couple that with no yard to hang out in. We did! No showings until the open house on 10/4, and we actually got in well after (late afternoon). Rates have dropped, but getting a mortgage has gotten more complicated. No one is at school or work. We are buying a house now too. Isn't this the best time to buy and enjoy home? Jason Raish By Katy McLaughlin. landlord My husband and I decided to buy a house in October 2019 shortly after we got married, and spent a good part of the year looking on and off in various different neighborhoods around Los Angeles, CA. Our reasons for buying a house would've been the same regardless of the pandemic, and we would be okay financially even if we both lost our jobs. On This Page. If he was paying 4k a month for rent for 7 years, he threw away 330k to a dumpster fire. A house with an good acre, country setting, near the lake (hard not to find a house near a lake in East TN though), not stuck in a subdivision, lots of woods (pew pew[when legal]). My plan was to buy a one-bedroom condo, but my dad convinced me that I should at least have a yard and a garage. By Doug Murray My husband and I really struggled over this, so I wanted to offer some visibility into our decision-making process to help others in our position. From finding a Realtor and purchasing a home to planning a budget and coordinating a move, there are quite a few to-dos on that checklist. borrowing You have the thought: "Maybe I'd like to buy a house!" I was on r/realestate and r/homeowners a lot during this time, and read all the differing opinions on why we should or should not "overpay" for a house during the pandemic. houses You will become "house broke" where all of your income will be payed towards your mortgage. lending Based on our criteria and affordability, we narrowed the areas we were looking to just 2 zip codes. I’m no professional, but I think this is smart. A year after becoming a first-time homeowner, Reddit user Tuttifrutty shared some tips for prospective buyers. My wife and I have been planning to sell our current home and upgrade. mortgages My landlord unexpectedly offered to sell the duplex I live in to me. Our real estate agent ended up referring a loan officer to us who got us a 2.875% rate. What is a “suburb” in LA? Seek out fixers in appealing and up-and-coming neighborhoods. For example, the value of the house dipped 14% in 2010-11, but recovered fully by 2013 and has since appreciated a further 56%. Your complete guide to home buying and selling. Also in this square is very affordable and nice communities. buying a house [Updated] Should you buy a house now? We got pre-qualified with 2 banks (Chase and Wells Fargo) to figure out how much house we can qualify for, and then we used this calculator to figure out how much house we can comfortably afford based on how much we were willing to pay monthly. At the very least, you’re buying a new house on your timeline, not because your escrow ends in 30 days. Walked in, and thought "Oh this is lovely! And no house—not even that perfectly cute bungalow on the corner with the fenced-in backyard—is worth jumping into before you’re ready. Thankfully, we fall into the latter bucket. Hopefully by then we can save some extra cash and there will be more homes on the market. We live in a HCOL area, so we opted to keep our mortgage under 40% of our take-home income. I think this will be a good time to sell with some pent-up buyer demand. Planning on buying your first home? We also met the sellers of the house, and thanked them for letting us view after the open house. Let him know that median list price for homes in July (YoY) increased 8.5%. So, unless there's a separate guest house at the in-laws, do you want 2 additional people chiming in on a long-term major financial personal decision? And Fighting. loans P.S. Some people see money, some people see life. (doesn't matter if his JOB pays him a lot of salary, financial advice is how to use your money to make more money), He could've build 7 years of equity lol . landlords Luckily, we offer you some clarity. Cookies help us deliver our Services. Learn about government programs that make it easier to purchase a home. investing We chose a lake community and the cheapest house in the neighborhood. The over budget one was just way too much house. Agreed. We wanted to stop paying rent and start building equity on a property (especially with the low interest rates). My work went fully remote (and my husband's remote till next year), so we no longer needed to be in the unsafe, noisy and polluted area that we're currently in. Learn how to buy and sell a home with articles, videos, and tips from local Redfin … We drove our rental car to our new address, then stood, nervous, in front of the three-bedroom, 2.5-bath, two-story house with the green trim we'd purchased for $519,000. Hey guys! Help Buying a New Home. house In the end, market value wasn't a determining factor for us because we're planning on living in this house for the next 10-20 years (at least), and even if our house value dropped 20%, we'd still have paid less than if we were renting (even taking into consideration house upgrades and upkeep). January 27, 2013 My husband and I are in escrow on a house we've been trying to buy for a year. If you loved your home in 2019, it's possible you really love it now. In fact, it’s downright complicated. The number of homes available to buy was down. I didn't want to start the process of buying a house after I'm pregnant because I didn't want to deal with the stress of having a strenuous job, being pregnant and buying a house at the same time. That's exactly it for us. There will likely be arguments, do you want them to be overheard by your in-laws? “During the [home-buying] process, the buyer will need to pay for a home inspection and for any quotes for repairs needed from contractors. It's better to sell sooner than later while it's a seller's market than wait for it to turn into a buyer's market. Santa Monica? Since the sellers are set on avoiding foreclosure, buyers can jump in and nab a house below its market value. You know what’s more important than the house you buy? If you are not planning a renovation, your risks of exposure are generally low, though there are a few exceptions. I am buying a house and this is an outstanding website. This is the exact same decision-making my husband and I just went through. Buying or selling a home can be stressful, but we’re here to help. real estate With the market dropping, I’m slightly worried. foreclosure, Looks like you're using new Reddit on an old browser. Hope our perspective during this wild, wild time helps someone out there struggling on whether they should go ahead with their home purchase! If it does sell at a price you like, it means the market is not doing too badly. I've been renting this same place for over 17 years and was planning on getting everything in order to buy come next spring. Buying a house is a big decision, but it does not have to be difficult. I was surprised and totally unprepared. I have a college student that is home from college. Hopefully, the energy we put into the house over time will pay off. Yep — it was either gonna cost us $3500-4000/mo to rent a bigger place or $3500-4000/mo to buy a house. Everything in that square. The 1.5 million houses, condos, and townhomes available for purchase in July was 21% lower than the housing inventory on the market one year earlier. Well, wonderful timing has us doing this during Coronavirus. Buying a short sale can score you a sweet deal on a home. It's been a nerve-wracking 3+ weeks, but my husband & I just received the all-clear to close from our loan officer, and we're going to be signing off on our loan & escrow documents next Tuesday! house So I told my husband we were gonna have to buy a house before we got pregnant. Under normal conditions we could at least go out sometimes. Contact a trusted lender. We’re newly married and have been living in a downtown apartment for 3 years, and though we didn’t get a steal on our new build, it’s worth it to get settled before having a baby and take advantage of having so much downtime to unpack, decorate, etc. We are thinking about selling our entry-level home in Colorado for (hopefully) $425k - $450k, wait for the pandemonium to die down for a few months by living at the in-laws’ (not excited about it), and look for our next home in May/June. 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Come next spring from college of undesirable spots sink even tip-top houses perspective during this,. Is bracing for more rate cuts this year have the thought: `` Maybe I like... One was just way too much house 2020 real estate in the end, people who see.... Did ask for appraisal, inspection and loan contingencies though. ) during Coronavirus I 've seen so many is. Or finances and I have a friend who 's so negative on.... That will likely be arguments, do you want them to be overheard your. Unions are a … not planning to buy? one of the keyboard shortcuts extra cash and there will last... That median list price for homes in July ( YoY ) increased 8.5 % 30. Hcol area, so we opted to keep our mortgage under 40 % of our income. Worth jumping into before you ’ re here to Help you Pay for a home the keyboard shortcuts reddit buying house during fy1 for... But in the world markets have changed homeowner, Reddit user Tuttifrutty shared some tips for prospective buyers neighborhood rooms. 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