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According to your profile, you're in the Dallas Texas area. You should look on realtor.com and Zillow to see what's available and what's recently sold.
You may be able to buy a house if you get moving. Then go to a month to month if needed when you find something. Maybe you'll only need to pay one month at the inflated price.
Price point and location are always the prime drivers in buying a home
Much of the DFW market is hot
People are supposedly paying premiums and going w/o an appraisal value to prevent over paying
Some people making those deals are going to be very unhappy in a couple of years or shorter
I know one story of couple who paid 30k over list to get house and they found big problem with water damage/mold that wasn’t noted by sellers—Involved an instant water heater installed incorrectly (and likely wo city permit/inspection)
Now buyers have over 30k in remediation their home insurance won’t cover (preexisting and especially if illegally installed) that might make getting home insurance very problematic
Haste makes waste even when every one is driven by FOMO
We sold our house in Hurst this month
Listed for 50k more than our agent first thought
3 offers first weekend for full price+
One guaranteed their offer (5k over) despite the appraisal
Two guaranteed up to the list although they offered 20k over list
And Three wouldn’t guarantee except appraisal
We didn’t think it would appraise for list based on neighborhood comps so we took #1
I hope they are happy
It had a great floor plan and other aspects but also some issues
They got the original roof w some repairs, two 15 yr old HVAC units a d one about 4 yrs old
A TX electric grid that will have rising prices and lower capacity
oh @MikeJaquish, I can go month-to-month but that's an extra $300.
It is very, very difficult to exactly coordinate closing on a house with a one-year lease. An extra 300 a month for flexibility is a great deal. Many leases, if they provide for early termination at all, will charge two months rent.
And if your budget is tight enough that a temporary 300 a month is a problem...you will need to very closely calculate all of the costs associated with moving and buying a house. There are probably many you haven't thought about.
All your ducks in a row... Is the key.
You need to be pre-approved. You need to have a house inspector on speed-dial. You need to know the comps for the area that you are looking at. The difference between "rushing into an expensive mistake" and "moving quickly to beat out other bidders" is about educating yourself and having expert lawyer / banking / inspection / title/ realtors on-hand to move at a moments notice. Specify that you choose the Title company. When contracting w/ the Title company make sure they do a survey and that they account for square footage and pulled permits are satisfied. There is a significant cost for contracting inspectors/experts in all the above areas, that are willing to work overtime /weekends to move quickly. Costs that will make the payment of $300 for your month-to-month pale in comparison.
Lastly, buying "as is" is not the same as "buying stupid". "As is" means regardless of what a house inspection reveals, the sellers won't adjust the price for any reason. There is never ever a reason to not do a house inspection. Sellers are required by law to reveal all 'known' problems with the house. They don't care if you want to spend your money on a house inspection. The problem w/ house inspections is that sellers want a timely closing. Asking for a contracted 45days to complete an inspection will knock you out of contention. The sellers of the house I bought, gave me FOUR days and that was only because it involved a weekend. So, it is very important that your termite and house inspectors are lined up and ready to go. And the expertise of your inspector is important. He not only has to be able to provide you with a list of all potential issues with the house, you need him to be able to assign a cost for fixing those problems so you can make an educated decision. Excellent house inspectors are backed up for weeks. So you need to be prepared to pay a premium to get that house inspector to move immediately.
I bought sight-unseen (it was an out-of-state purchase during COVID w/ limited travel options), 'as-is', and closed in less than 30 days in order to secure a house in today's market. The key was that 'my people': lawyer, title company, bankers, appraisers, inspectors, insurers, and realtors were all lined and ready to go. I knew my market and my comps so I was able to make a competitive bid and go to contract on the day the right house hit the market. My inspectors, appraisers, and insurer were on site within 24hrs to walk every inch and had reports completed w/in 48hrs. The house that I ended up buying, everyone agreed was the best house for the best price in the area. I got the house w/o a bidding war because I was able to move the quickest.
The key to a successful transaction is to keep emotion out of the equation. Let the numbers guide you. When the numbers become not favorable, walk away. Another house will come along.
It is very, very difficult to exactly coordinate closing on a house with a one-year lease. An extra 300 a month for flexibility is a great deal. Many leases, if they provide for early termination at all, will charge two months rent.
And if your budget is tight enough that a temporary 300 a month is a problem...you will need to very closely calculate all of the costs associated with moving and buying a house. There are probably many you haven't thought about.
I didn't plan my first house purchase very well. Had just signed a new 1yr lease, then 2mo later decided I wanted to buy a house and wasn't going to wait. As you describe my lease allowed early termination for a fee of 2 months rent ($1400-1500 if I recall correctly). Didn't require paying out the remainder of lease or until they could find new tenant. Still was eligible to get security deposit back. I did get lucky that they'd let me out early and my rent was low enough it wasn't too painful of a fee. Chalked it up as an additional expense of buying the house (and a stupid tax for my lack of planning).
To the OP I'd read through your lease carefully and see what (if any) options are given for early termination and how much it would cost. I'm guessing paying the extra $300 for month-to-month will still be cheaper, but it doesn't hurt to at least look at all the options.
All your ducks in a row... Is the key.
You need to be pre-approved. You need to have a house inspector on speed-dial. You need to know the comps for the area that you are looking at. The difference between "rushing into an expensive mistake" and "moving quickly to beat out other bidders" is about educating yourself and having expert lawyer / banking / inspection / title/ realtors on-hand to move at a moments notice. Specify that you choose the Title company. When contracting w/ the Title company make sure they do a survey and that they account for square footage and pulled permits are satisfied. There is a significant cost for contracting inspectors/experts in all the above areas, that are willing to work overtime /weekends to move quickly. Costs that will make the payment of $300 for your month-to-month pale in comparison.
Lastly, buying "as is" is not the same as "buying stupid". "As is" means regardless of what a house inspection reveals, the sellers won't adjust the price for any reason. There is never ever a reason to not do a house inspection. Sellers are required by law to reveal all 'known' problems with the house. They don't care if you want to spend your money on a house inspection. The problem w/ house inspections is that sellers want a timely closing. Asking for a contracted 45days to complete an inspection will knock you out of contention. The sellers of the house I bought, gave me FOUR days and that was only because it involved a weekend. So, it is very important that your termite and house inspectors are lined up and ready to go. And the expertise of your inspector is important. He not only has to be able to provide you with a list of all potential issues with the house, you need him to be able to assign a cost for fixing those problems so you can make an educated decision. Excellent house inspectors are backed up for weeks. So you need to be prepared to pay a premium to get that house inspector to move immediately.
I bought sight-unseen (it was an out-of-state purchase during COVID w/ limited travel options), 'as-is', and closed in less than 30 days in order to secure a house in today's market. The key was that 'my people': lawyer, title company, bankers, appraisers, inspectors, insurers, and realtors were all lined and ready to go. I knew my market and my comps so I was able to make a competitive bid and go to contract on the day the right house hit the market. My inspectors, appraisers, and insurer were on site within 24hrs to walk every inch and had reports completed w/in 48hrs. The house that I ended up buying, everyone agreed was the best house for the best price in the area. I got the house w/o a bidding war because I was able to move the quickest.
The key to a successful transaction is to keep emotion out of the equation. Let the numbers guide you. When the numbers become not favorable, walk away. Another house will come along.
Thank you for the excellent information.
My cousin is a real estate agent, not in the state we live in but I can ask her questions about what I need as a buyer as far as an agent. I have never bought a house and i am hoping we can get our ducks in a row to make it happen.
Start looking now. If you find something quickly you may get lucky and close in time, or you may only have to pay the higher rent for a month or two.
Maybe once you start looking you will have a better idea of whether you think you will be able to find something where you want for a price you get find acceptable. You may decide to renew the lease and wait for more inventory. It's going to be hard to time getting possession of the house right when the lease runs out.
My apartment lease ends 9/13/2021. I've been convinced to buy a house as it's the better option than renting. So being that today is June 21st is their enough time to start the home buying process before my lease is up or should I sign another years lease and then take the time to find a good house? I'll be a first-time home buyer.
You've been convinced? By who?
If it is something you really want, it's possible. From the start of the home buying process to closing took about 75 days for my husband and I. I feel we were extremely lucky in being able to find a house when we did.
Have you done a lot of research for your area? Where I live, homes are going for about 20% over asking price and are only on the market for about 2 days. It is a very stressful process, and not something I would recommend if you are not fully on board.
If you like your current apartment and don't mind living there another year, I'd wait and see if things calm down by next year. Use the year to save as much money as you can and then start looking at houses in the spring.
Start looking now. If you find something to buy it might take 2 months to get escrow closed. You don't buy a house and move in the next day; it's a process.
Can't you break the lease for a fee? I think a bit of pressure can be good, to get you actively going out to search. I know someone who found a place within a week, and another who flew into town, stayed at a hotel and bought a condo over the weekend. Imo it just has to be a good investment, no issues, and something you like. I don't believe in the perfect house.
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