Mid-A Random-ness Discussion Thread: the Zequel
10-27-2010, 07:24 AM
#303
So guys I need some advice/suggestions. I am looking to buy a house. I found a community near my work that's awesome. Older community with houses that are 50+ years. Very close to work and metro station is being built within 2 miles radius. Houses in that neighborhood could be very pricey depending on condition and how much improvements they have done to the house. We're talking about up to 200k+ differences! I found one that's an approved short sale, already has an extension built to the house, plenty of room in the backyard to build a garage heaven in the future. But the house needs tons of work since it's an awesome price. We're talking about probably months and months of work to restore it. Should I take on it?!
10-27-2010, 08:20 AM
#304
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So guys I need some advice/suggestions. I am looking to buy a house. I found a community near my work that's awesome. Older community with houses that are 50+ years. Very close to work and metro station is being built within 2 miles radius. Houses in that neighborhood could be very pricey depending on condition and how much improvements they have done to the house. We're talking about up to 200k+ differences! I found one that's an approved short sale, already has an extension built to the house, plenty of room in the backyard to build a garage heaven in the future. But the house needs tons of work since it's an awesome price. We're talking about probably months and months of work to restore it. Should I take on it?!
And you never know how bad it really is until you get someone in there that knows what to look for [i.e. problems that may come back to haunt you in the future]. IMHO, I'd get something as close to new and modern as you can afford [or slightly more because your income should increase over time] or something that needs only minor fixes. You'll either save a ton of money being able to do stuff yourself or wind up making it worse and need to call in a pro. Get someone who knows the ins/outs of fixing up houses [plumbing, electrical, woodwork] to check the place out before jumping on it.
10-27-2010, 08:47 AM
#305
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So guys I need some advice/suggestions. I am looking to buy a house. I found a community near my work that's awesome. Older community with houses that are 50+ years. Very close to work and metro station is being built within 2 miles radius. Houses in that neighborhood could be very pricey depending on condition and how much improvements they have done to the house. We're talking about up to 200k+ differences! I found one that's an approved short sale, already has an extension built to the house, plenty of room in the backyard to build a garage heaven in the future. But the house needs tons of work since it's an awesome price. We're talking about probably months and months of work to restore it. Should I take on it?!
Example:
House was on short sale listed for 350K.
I offered 350K
Bank said we want 375K
2 days later the bank said they wanted 385K (no buyers assistance or anything)
We said go F yourself
Bank came back with 375K as final offer
I walked away from it
1 month later the bank came back with 330K
I said 280K and get me out of the lease I just signed
They said no
2 days later foreclosure.
(this house was originally bought for 600K five years ago)
There is no rational with the banks. They are pretty 'fing stupid. Just be ready for **** that doesnt make sense as far as short sale is concerned.
10-27-2010, 08:50 AM
#306
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So guys I need some advice/suggestions. I am looking to buy a house. I found a community near my work that's awesome. Older community with houses that are 50+ years. Very close to work and metro station is being built within 2 miles radius. Houses in that neighborhood could be very pricey depending on condition and how much improvements they have done to the house. We're talking about up to 200k+ differences! I found one that's an approved short sale, already has an extension built to the house, plenty of room in the backyard to build a garage heaven in the future. But the house needs tons of work since it's an awesome price. We're talking about probably months and months of work to restore it. Should I take on it?!
2 MAJOR things are structural (both roof and foundation/basement) and water penetration. Mechanical is close to those as it can cost thousands to redo as well.
I looked at MANY short sales back when the market first took the plunge and I knew it was time for me to jump in and buy. In doing this I saw some of the nastiest and most F'ed up ish. I saw where people had cut roof trusses so they had walking area for storage, deliberately removed sump pumps, ripped outlets out, etc.
Age is a big thing too. Houses built in the 70's (especially in this area where basements were more uncommon) Hvac ducts were installed in the slab...great idea except moisture in the concrete deteriorates the metal over time...can be a rather large cost for new HVAC piping and this is VERY bad conditions for people with allergies. The other MAJOR thing i saw were where the homes were rented and rented to multiple families (typically labor immigrants) and they had made "modifications" to the home to house them. These can be flat out dangerous fire hazards b/c many of the "mods" were done by unliscenced "handymen", often times rigged all up and the cost to fix what they F'ed up can be more expensive than it's worth. Those are just some things you REALLY want to take a look at and be aware of.
10-27-2010, 08:54 AM
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Also short sales f'ing suck. Hope you are cool with waiting 6 months if you are lucky. Spend the money to get a REALLY good home inspector. Have him come in and then decide if making everything work right is ok with you. Can you live in it as is? Will you be ok with some problems? Short sale and as is conditions dont necessarily mean bad. Its just quicker for the house to be off loaded. Also be aware that the price listed on the short sale is absolutely meaningless unless its an approved price (which it will say in the listing). The owner can put the house for $250K but the bank may be wanting 350K. You wont know until the bank rejects or makes you a counter offer. i just dont want you to think the price that is listed is the actual price the bank is going to accept.
Example:
House was on short sale listed for 350K.
I offered 350K
Bank said we want 375K
2 days later the bank said they wanted 385K (no buyers assistance or anything)
We said go F yourself
Bank came back with 375K as final offer
I walked away from it
1 month later the bank came back with 330K
I said 280K and get me out of the lease I just signed
They said no
2 days later foreclosure.
(this house was originally bought for 600K five years ago)
There is no rational with the banks. They are pretty 'fing stupid. Just be ready for **** that doesnt make sense as far as short sale is concerned.
Example:
House was on short sale listed for 350K.
I offered 350K
Bank said we want 375K
2 days later the bank said they wanted 385K (no buyers assistance or anything)
We said go F yourself
Bank came back with 375K as final offer
I walked away from it
1 month later the bank came back with 330K
I said 280K and get me out of the lease I just signed
They said no
2 days later foreclosure.
(this house was originally bought for 600K five years ago)
There is no rational with the banks. They are pretty 'fing stupid. Just be ready for **** that doesnt make sense as far as short sale is concerned.
It can be worth it though if you found what you know you wanted.
10-27-2010, 09:12 AM
#308
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E10 if you are going to do the short sale:
-Find a real estate agent that specializes in them. They take lots and lots of hounding on your behalf. A "friend" or "neighbor" or "family member" may not be the best choice. You need someone who is going to be persistent and has done LOTS of short sales.
-Find a lawyer that has the same qualifications as above. The negotiation process is also painful.
-Make sure your loan guy is also on point. he may need to redo your loan at a moments notice. Again someone who specializes in the short sale process is key. The people involved all need to be responsive to one another and a cohesive unit. Its like once the bank says jump everyone has to jump.
-Be living month to month with out having to give big notice on when you are moving out. You will wait for ever to hear from the bank. There is no set time. It could be short or fast. But when it does go through everything will need to be done like that week. Its crazy. You can have some leeway when you sign the contract but it will be hell if it goes through. Short sales are hard because you are in limbo for such a long time. Just dont get spread too thin with mortgages, down payments, and rent on top of it.
-Loans have strings attached to them in reference to short sales. Make sure you do your research to get the best rates/financing. (this goes without saying im sure.)
This is all from my own experience. It may not be 100% accurate for everyone but this is what I have found.
10-27-2010, 09:14 AM
#309
Also to to what drivin1 said. With an old house like that you will find doing improvements to the house a pain due to epa and lead laws. Getting a contractor to work on a house that was built before 1978 will cost you double then what the average homeowner would get charged with. I deal with this every day.
10-27-2010, 09:16 AM
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Also to to what drivin1 said. With an old house like that you will find doing improvements to the house a pain due to epa and lead laws. Getting a contractor to work on a house that was built before 1978 will cost you double then what the average homeowner would get charged with. I deal with this every day.
10-27-2010, 09:30 AM
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Ohhhhh yeah.....Row houses are fun. lol
And don't forget tax liens that may be applicable on top of the open loan.
And don't forget tax liens that may be applicable on top of the open loan.
Last edited by Driven1; 10-27-2010 at 09:32 AM.
10-27-2010, 11:29 AM
#314
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Im drinking at sly fox On fort ave in bmore tonight. Im playing some trivia with some peeps I know. good cheap beer if anyone is interested. stop on by for a few. Its the last exit before the tunnel (key highway) and its two turns off the highway. Plus there is a huge parking lot for the grocery store. So its not like you are really going into the city. Anyway just thought id throw it out there.
10-27-2010, 11:50 AM
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I was just lettin you guys know what was crackin. Its hard for me to get out to meets to see you guys but my sports leagues got canceled tonight. Im still going out to post game activities.
