Budget for a house is 20k-30k. Is there such a home for me? (buying a house, buying)

[ny789987]

Originally Posted by starry123

ny789987: I did not realize any of those problems. I really thought a home inspection would be the answer to my concerns. Can I get a home inspection each year and be covered like that? Do home inspectors inspect homes even if they are not for sale? I never heard of an illegal sewer hookup so I never thought of it but I will definitely research according to your advice. Now, I definitely see your points and I don't know what to do. I will think about all of this. I always lived in apartments with tight security and lived in the same house for years in a nice but expensive area so I never experienced any grave problems within a home. All the information is very helpful. I hope a realtor would know these kinds of things too. Thank you.

A house inspector is definitely not a silver bullet in avoiding a lemon. As stated before, house inspectors all vary in quality and you definitely have to do your due diligence in choosing one. I would definitely avoid using a home inspector recommended by a realtor. Also, realize home inspectors can only spot trouble that is readily observable. A lot of Pittsburgh area homeowners, for example, will finish off their basements to cover up visible foundation issues. Every home requires money to maintain, but as a homebuyer you should be on the lookout for the big red flag problems issues can wind up costing a ton of money down the road. As I stated above, school yourself on basement foundations, black mold, termites, sewer lines, and roofs. If you get good at spotting issues, you can spot potential red flags on walk throughs and avoid wasting unnecessary money on inspections. Realtors are useful and serve their purpose. Some are better than others, but at the end of the day you have to understand that the realtor business is very cut throat and competitive. Even good realtors are subject to demanding market forces and they will only make money and succeed in their companies when deals close with as little of headache as possible. As an out of state, all cash buyer you should use their information, but don't let them push you into a deal that you aren't comfortable with. As for your other question, I do believe home inspectors will inspect homes that aren't for sale. I, for one, purchased a home this year and plan on having another inspection done before the year closes out. Can't hurt. As I stated before, if a major problem turns up that your inspector negligently missed, you will be out of luck after a year. The inspector and his malpractice carrier will note the 1 year statute of limitations and tell you to go take a hike. Here is an article detailing the issue with the storm water sewers: http://pittsburgh.cbslocal.com/2013/...pt-homeowners/. I think properties in the city are now subject to a dye test so the onus would be on the sellers, but it is something definitely to research and keep an eye on. I am not sure if all municipalities around the city demand a dye test and this is not an issue that you want to be stuck dealing with. Imagine paying 20K for a property and the city comes around demanding 30K for a complicated Al Gore eco-friendly storm water irrigation system on your front lawn.

[Moby Hick]

Originally Posted by ny789987

Imagine paying 20K for a property and the city comes around demanding 30K for a complicated Al Gore eco-friendly storm water irrigation system on your front lawn.

It's got nothing at all to do with irrigation and everything to do with not making everybody else in the city pay to treat the rainwater that falls on your house as with the sewage or the city has dump raw sewage in the river every time it rains. Because those are the only alternatives and the first one would make the water bill unaffordable. The second is illegal for very obvious reasons. Not dumping actual feces in the river is pretty low down the scale of "Eco-friendliness" and it was actually Bush II's EPA that finally forced the change.

[Knepper3]

Originally Posted by starry123

Knepper3: I might be able to get 20k more from my mom once she sells her house but that means I am going to have to wait probably months until I buy. I might have to wait a month anyways now that I have more and more things to think about before buying. When I am ready for sure, I will definitely need a realtor. Thank you for your response.

Didnt realize that you were looking that soon. It will likely take you at least a month of searching and then closing would be at least a month. Honestly the difference in a home for 20-30 vs 40 - 50 is pretty big. 40-50 you might be able to get something basic in ok condition in a decent area. 20-30 would likely need repairs. If you are thinking of looking, you can get listing auto sent to you to see what specifically is available and in your ranges.

[Knepper3]

Oh and as for a home inspection, I would defn do one even if you pay cash. Well worth it to not run into unexpected issues.

[Jorge Campbell]

Knepper3: I might be able to get 20k more from my mom once she sells her house but that means I am going to have to wait probably months until I buy. I might have to wait a month anyways now that I have more and more things to think about before buying. When I am ready for sure, I will definitely need a realtor. Thank you for your response.

Knepper3 made a good point about getting a loan. If you can get $40k cash (yours and your mom's) and have 50% equity in the house, that might give you $40k in additional loans to play with if you have sufficient income. Then you have $80k to play with, which gives you a lot more options. I've seen very good houses (albeit usually with dated but working internal systems) came on the market because the owner died of old age and the heirs just want to get rid of it as soon as possible. So if you can find a $80k market price house for $60k, except it's cheaper because the heirs want to cash out and it's got an old but functioning stove and dated cabinets, then I think you've got a good deal. Of course, you'll still want to get a property inspection just to make sure.

You also mentioned foreclosures. Based on my experience, maybe 1/10-20 foreclosed houses are "move-in ready". They're foreclosures for a reason -- the prior owner ran out of money and lost the house, which can mean a lot of work that needed to be done has been put off. The vast majority are in various states of disrepair. Even small stuff, which might be a lot of small stuff in a foreclosed home, that you might think might be easy at first glance can escalate into big money; the other knowledgeable posters have already made this point clear.

You should also read your realtor's contract with you carefully. If you realize your realtor's incompetent after you've signed the contract, you might still be obligated to pay the realtor even if you find a house yourself later on! Anyone can be a realtor after taking a few classes and an easy exam, and many have decided to sell houses because they got laid off, they couldn't find another job, they flunked college, etc. etc., so you really get a wide variety of characters all calling themselves realtors. I've seen good and bad ones, smart and incompetent ones. This is not saying that all are bad or ignorant, but just based on my own experience, I would personally not want to deal with roughly 1/4 of realtors.

[Jorge Campbell]

Originally Posted by ny789987

...I think properties in the city are now subject to a dye test so the onus would be on the sellers, but it is something definitely to research and keep an eye on. I am not sure if all municipalities around the city demand a dye test and this is not an issue that you want to be stuck dealing with. Imagine paying 20K for a property and the city comes around demanding 30K for a complicated Al Gore eco-friendly storm water irrigation system on your front lawn.

The website to go to for dye testing is here: PWSA - Pittsburgh Water and Sewer Authority

Pittsburgh definitely requires dye testing. The relevant part of the ordinance reads "Prior to the submission of such form, any such Applicant, whose real property is located in a portion of the Sewer System served by Sanitary Sewers, shall have a Dye Test performed by a Registered Plumber at the Applicant's expense on the real property to be sold."

Sellers are responsible for dye tests, however, under the Pittsburgh ordinance.

[I_Like_Spam]

Originally Posted by Jorge Campbell

The website to go to for dye testing is here: PWSA - Pittsburgh Water and Sewer Authority

Pittsburgh definitely requires dye testing. The relevant part of the ordinance reads "Prior to the submission of such form, any such Applicant, whose real property is located in a portion of the Sewer System served by Sanitary Sewers, shall have a Dye Test performed by a Registered Plumber at the Applicant's expense on the real property to be sold.".

Major portions of the city aren't subject to the dye test.

I didn't have a dye test in 07 here in L'ville.

[guy2073]

Originally Posted by I_Like_Spam

Major portions of the city aren't subject to the dye test.

I didn't have a dye test in 07 here in L'ville.

Some of the city has a shared system, it is not feasible to change it. Dye test are not needed if you already know your storm water runs into your sanitary lines.

[PreservationPioneer]

Bottom line is, yes, it is possible to find a good house in a relatively safe neighborhood for $30k in Allegheny County. Turtle Creek is safe and has cheap, liveable houses. I disagree that all homes in this price range have significant problems. Many of the problems you will find will be cosmetic, older roofs, older mechanical systems. It is very possible to find a house with no structural problems, all systems working, and not a foreclosure. It does involve a good deal of searching and work to find these houses, though, but the savings will be worth your effort. You do not need to spend $80k to find a good house. They are just more obvious and abundant at a higher price point. I regularly browse the listings for my own enjoyment, and have found countless bargains.

[starry123]

Thank you for all of your responses. I read each one of them and they are giving me a lot to think about. I still can't decide whether I should buy a home. I still think I want a cheaper house and then fix up things in the home as there probably is no guarantee that even 50-60k houses are not going to need repairs. But I do think I need more money to fix things just in case and that information about the sewage situation was really eye opening as it has never even crossed my mind.

Turtle Creeks seems like something that I am looking for except that I am worried about whether low employment opportunities will change the safety of the neighborhood in the future. Millvale looks good too but there are few properties there within my budget and they are foreclosures so I am assuming they will close higher than as listed.