Starter Home in Madison County (County Line: fit in, short sales, real estate)

[SusannaFaith]

I would like to purchase a starter home convenient to both James Clemens High School on County Line Road (not necessarily in their school district) and UAH. I am really just looking for a good deal on something that I would sell in 3 or 4 years, but I do not want a fixer-upper.

Someone told me to look into short-sales and foreclosures. I was also looking online at Hunter Homes' "Quick Move-In Homes". I found a brand new home in their West Lake subdivision with 1500 sq. ft. for around $100,000. It's pretty much like an apartment, but you are building equity and that's what I'm looking for. If I can get a home that is around $100,000 that I don't have to do much of anything to and it will resale in a few years, I will buy one. If not, I'll stay where I am.

My questions are:

1. Where do I look for short-sales and foreclosures? Are there certain real estate agents that specialize in these?

2. If I work with a real estate agent, should I get that person to show me a Hunter Home or go straight to Hunter? i.e. Will it cost more to go through a real estate agent?

3. Are the prices on Hunter's web site firm or can you negotiate price?

Thanks in advance for your help!

[ToneyTiger]

Just my opinion, but I don't think I've ever seen a Hunter Home appreciate in value over time, so beware.... their homes are cheaply made but good starter homes as they are inexpensive, but not really built to last 20-30 years IMHO....

[RatSnake]

Have you looked at Breland or Adams Homes?

They also offer smaller models that qualify as starter homes.
Their communities also fare much better.

[RatSnake]

Also --- don't buy a home simply with the overriding goal of making a profit in 3-4 years.
That may not happen... times have changed.
Homes should be 'place to live' ... not place to flip.
If you live on the west or some places on the east coast, this plan will work.
Here in HSV ... I seriously doubt it.

In fact, this kind of mindset is what got us in the housing bust.

[LCTMadison]

Hunter Homes tend to depreciate, not appreciate. Many of the neighborhoods are riddled with foreclosures which have tremendously lowered the property values. Westlake is way out in the middle of nowhere...seriously. There is really NOTHING around it, and it is not convenient to anything, especially not UAH. BAD investment.

Whatever you do...get your own agent. Any agent can sell foreclosures and/or short sales....how VERSED they are in those is a different story. Foreclosures are riddled with legalities and much more complicated up front than a regular sale, and an agent that does not understand how to approach a foreclosed property can REALLY get you in a mess. Short sales depend on so many things...who the bank is, if the short sale has been approved, if a monetary agreement between seller/bank has been agreed upon, if a short sale negotiator is involved (very beneficial). Short sales take A LOT of patience as well.....its hard to gauge how long the process will take. I just closed a short sale, with a negotiator, and it went extremely smooth and relatively fast. Contracted in mid April and closed end of June. Bank was local, that really did help speed things up. They don't always go that smooth or that fast, and it is hard to say at the start how the process is going to progress.

If your motivation for buying right now is so you can resale for profit in 3-4 years, I would NOT purchase at this point. The market is looking better and inventory is reducing, but there are no guarantees and there are not a lot of people around here who have seen great appreciation over that time period, even in the more active market periods (around 2004-2006, we refer to that period as the glory days ). Our market overall is a pretty stable market, better for longer term investments.

[SusannaFaith]

Thank you all for your comments. I'm not really looking to make a *profit* in 3-4 years. I'm just looking to put my money into equity rather than rent or gas. I'm currently driving an hour to work. My husband just found a job nearby and so we would both be commuting an hour. While we could carpool, there would be times where we couldn't. We don't want to sell our house just yet, and I thought we could afford something around 100k along with our current home for a few years until we decide where we want to pemanently move. I'd like to find somewhere that we won't lose money.

I also have a co-worker that travels an hour and a half to work every day. She has mentioned trying to rent a room in the area for a few days per week. That could help pay the mortgage, as well.

As far as getting a real estate agent, I really wanting to know if I should get one if I am looking at a Hunter Home, Adams Home, or Breland Home. I would definitely get one otherwise, but I didn't know if it would raise the price of a builder's home. Basically, they already have sales people, so would I be paying for two?

Thanks again!

[SusannaFaith]

Also... I guess convenient is a relative term. Compared to what I am currently driving, the area I mentioned is very convenient. I mentioned UAH and JCHS so you would know I'm looking on the west side of Madison County. I'd prefer to not have to drive in a lot of traffic. I-565 moves pretty well and you wouldn't have to deal with Hwy 72 traffic on the south side of I-565. We currently live out in the boonies. It's not for everyone, but we like it there.

[HB2HSV]

Originally Posted by SusannaFaith

As far as getting a real estate agent, I really wanting to know if I should get one if I am looking at a Hunter Home, Adams Home, or Breland Home. I would definitely get one otherwise, but I didn't know if it would raise the price of a builder's home. Basically, they already have sales people, so would I be paying for two?

Thanks again!

Regarding to the question of getting an agent, it is absolutely a YES !

First, you will not be paying the agent, his/her commission is paid from the seller as a part of 6%.

Second, he/she is on YOUR side and will have YOUR best interest at heart. The agent may deal with the same builder many times, he/ she knows where they can negotiate a lower price or get you upgrades for free. Something that as a buyer you will have no experience dealing with that particular builder.

Third, an agent will know the local area much better than you do and the available homes based on what you are looking for (price, size, etc.).

Besides, an agent may find you an existing home that just may surprise you that you will love much more than a "cookie-cutter" home.

[JakeWilliams]

I'd get an agent regardless of whether you go with a new home or a resale. It won't cost you any more and it will eliminate some hassle.

I would seriously think about renting - not sure how much equity you'd build in 3-4 years with closing costs/etc, and you wouldn't have the flexibility to pick up and move easily like you would with a rental or lease. Especially with the uncertainty about DoD funding in the next few years, HSV may have some negative real estate trends and you may end up underwater in 3-4 years.

[RatSnake]

I am not an agent. I am in the market like yourself. My apologies for the misunderstanding.

Getting an agent is the smartest decision in the buying process. You are not paying the agent.
The seller is paying the agent - regardless if an individual (FSBO), bank or builder.
If you don't get an agent, they will pocket the difference.

Regarding the commute, I hear you. Still, you are better off with a starter home with Breland and Adams.
If you insist on Hunter - go with their executive series (or their new line of homes) or in a mix HH / Breland established neighborhood.
Regardless - please use an agent. Your agent can get you 'bundles of options' that the builder will not necessarily give you.