buying a older house thats cheap? (sell, sale, items, best)
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I'm in the seattle area, and rent is getting high. I can afford a 200k condo or home, but that home will need lots of work or in a bad nightborhood.
but, when I check zillow, if I head out farther, to about 30 miles from Seattle, my options get much better. all i need is at Least 1,100 sf and 2 bedrooms, and the house has to be at least 25 feet form any neighbors house, for privacy
the only problem is many of the homes are in bad condition, but i can be a DIY'er. to the people here, what are your stories of fixing a home that is in need and how much it costs? I can do the easy stuff, but if its the fondation, electricial, plumming, roof, etc, I will be in major trouble. at that point its better off to get a newer house and pay more.
I am 26, and never bought a home. nor did my parents. any story is appreciated.
I find it fascinating the number of people who won't pay for home improvement and would rather have the prior owner do all of the work (and pocket the equity), or overpay and buy new only to lose value and go upside down in the mortgage. I have purchased and remodeled three "fixers" over the years and as a result built a sizable nest egg, and feel home appreciation is the best/easiest way to build personal wealth if one isn't too lazy to undertake the effort involved.
When one agrees to purchase a home one has the option to perform a home inspection, where basically everything is looked at to determine if it's in working shape or needs replacement. The sale of the home is contingent upon a satisfactory home inspection and you can back out of the sale if the report is poor, or ask the seller to make improvements prior to sale (and re-inspection) or provide cash at closing for you to make the repairs yourself....or hire a professional for the bigger ticket items like a new roof or heat/AC.
At age 26 I would say it's an excellent opportunity and would encourage you to find a real estate agent to work with who is familiar with the area you've settled on, as well as with older homes versus the new cookie-cutter types. It will be obvious when looking at each agent's listings. Another thought is to consider foreclosures or short sales in better neighborhoods, as the equity return will be much higher than where you are considering now. There are agents who work more specifically with these type of properties and have more familiarity (and patience) with the often somewhat long negotiation period (several months sometimes).
Real Estate Agents do not charge a fee and are only compensated when the sale is complete from the sale proceeds of the house. Your only requirement to work with one is typically a pre-approval letter from a bank stating the dollar amount of the mortgage you've been approved for, as they want to know they're not going to be investing time for a client without the financial ability to purchase.
Feel free to direct mail me any questions as I have been through the process a lot as a buyer and seller. Good luck!
Sometimes good buys can be had in homes that are just cosmetically out of date. Many people won't do things like repaint, remove carpet, etc. A house in my neighborhood sat on the market for 2 years just because somebody had painted all the kitchen cabinets pea green. Someone who would have either repainted or replaced them could have saved $20- 30,000--- far beyond the real cost of the "damage".
I strongly suggest that you get a home inspection done by an independent company, not necessarily one that works for the real estate agency who is selling the home. They can point out things that you may miss in a walk-through.
If you work in the city and are able to commute economically from a distance of twenty to thirty miles, I would definitely consider it. Generally, you get more for your money in outlying areas as opposed to city living.
Sometimes good buys can be had in homes that are just cosmetically out of date. Many people won't do things like repaint, remove carpet, etc. A house in my neighborhood sat on the market for 2 years just because somebody had painted all the kitchen cabinets pea green. Someone who would have either repainted or replaced them could have saved $20- 30,000--- far beyond the real cost of the "damage".
This is a key to any house-hunting venture! Know what is cosmetic and what is a real problem. You can always fix paper and paint, carpet and cabinets. But realize that a water stain on the ceiling is not cosmetic, but a sign of something that needs immediate attention, possibly expensive in nature.
I strongly suggest that you get a home inspection done by an independent company, not necessarily one that works for the real estate agency who is selling the home. They can point out things that you may miss in a walk-through.
of course I would, I would most likely do all my fianances of $/sq ft, location, area, and then hire a home inspector. spending a 400 is better than spending much more.
Quote:
Originally Posted by sirron
If you work in the city and are able to commute economically from a distance of twenty to thirty miles, I would definitely consider it. Generally, you get more for your money in outlying areas as opposed to city living.
my work has a few locations north and south of seattle. I can ask to switch around.
This is a key to any house-hunting venture! Know what is cosmetic and what is a real problem. You can always fix paper and paint, carpet and cabinets. But realize that a water stain on the ceiling is not cosmetic, but a sign of something that needs immediate attention, possibly expensive in nature.
Good point. If you can find a house with a good location, but bad curb appeal, ie, badly decorated, old worn carpets, just needs painting, or maybe "hippie" colors on the walls - you can get a bargain.
Keep in mind, location is the one thing you can't fix. Keep in mind that a marginal location now may get better or worse over the next few years - the smart money bets on worse.
The cheapest house on a "good" block is the best buy, usually.
You need to read up and learn how to inspect and evaluate a house, how to recognize issues like foundation problems that are difficult and expensive to fix, how to recognize intermediate stuff that you can afford to fix but want a discount on the house like plumbing problems, and trivial stuff like dead lawn or ugly carpet that is cheap and easy to fix.
Watching "This Old House" you can learn a lot for free.
You need to give yourself a few months to get educated.
If (and make sure your day job boss is OK with this activity before you go for it) you can get a part-time job working with a handyman or a home inspector, you can get paid to learn what you need to know. Just make sure you don't apprentice yourself to a sub-standard practitioner - know who you are thinking about hiring on with. Talk to some realtors, they will know at least some good handymen and good inspectors.
In Seattle, particularly learn how to recognize roof leaks and water damage.
In Seattle, me, I would try hard to buy something close to the light rail, maybe towards Sea-Tac. The traffic sux, you know that.
Good luck, good hunting. Go with your gut, if you have misgivings about a house, don't buy it. You don't owe anyone a specific explanation (except maybe yourself).
If you can find a good solid house in an area that is right for you go for it. While DIY's are not for everyone they sure do give you a great sense of pride and satisfaction as each project is finished.
My wife and I were able to sleep on a box spring and mattress on the plywood floors and work on one room at a time. We did our bedroom first ant then moved in.
I have made little mistakes here and there and had some glitches.....but I have seen friends pay people good money and their work was shoddy or terrible. Good luck
In the "old days", people would purchase a fixer-upper in a decent neighborhood as their first home. They would spend the better part of a year cleaning up the place and decorating it and would earn a lot of their home equity. Of course, they had friends/fathers/relatives who knew how to do everything and could help them out. In turn, they would help other friends and family with their homes.
However, unless you have the skills to do a lot of the work, an older house needing repairs can be a real money pit. If you lack the skills, make sure that you get a house with a solid electrical, plumbing system, and a good roof.
If you live in an area with older houses, make friends with your neighbors. They will be more than happy to tell you about the good, bad and ugly regarding the local contractors.
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