First Time Home Buying Help

[Callie]

Hi everyone,

I've started on the adventure of a lifetime, buying my first house (well condo/townhouse).
I've found an amazing realtor with an eye for the details, and I'm pre-approved for way more house than I ever need.

Right now I'm looking at something small. A 2 bed, and at least a bath and a half. The housing market here is hot. Houses sell in a day, and there isn't a lot in the price range I want to comfortable stay in, and I want to avoid too high of HOA's.

We looked at the first place yesterday. It was a big no because all of the flooring needed replaced, no fridge, the stove was disgusting and not well taken care of, all of the cabinets were filthy and beat up, some obvious leaks in areas, old AC unit and just a bad vibe.

Any suggestions on this journey? I don't need the nicest place, but it at least has to be clean and taken care of.

 

[Christine]

Hi everyone,

I've started on the adventure of a lifetime, buying my first house (well condo/townhouse).
I've found an amazing realtor with an eye for the details, and I'm pre-approved for way more house than I ever need.

Right now I'm looking at something small. A 2 bed, and at least a bath and a half. The housing market here is hot. Houses sell in a day, and there isn't a lot in the price range I want to comfortable stay in, and I want to avoid too high of HOA's.

We looked at the first place yesterday. It was a big no because all of the flooring needed replaced, no fridge, the stove was disgusting and not well taken care of, all of the cabinets were filthy and beat up, some obvious leaks in areas, old AC unit and just a bad vibe.

Any suggestions on this journey? I don't need the nicest place, but it at least has to be clean and taken care of.

Living in a hot market area myself, I'm going to say that your price range is going to drive what you can get. It could be in this hot market, your price range is going to get you only some real fixer-uppers. I'm sure if something nicer is there, it is going to be priced higher than what you've described.

The only help I can give you is to really examine your price point to see if it's realistic for the area you want to buy in.

 

[mom2rtk]

Have you told your real estate agent that you are only interested in properties in move in condition? If you did and they are showing you fixer-uppers, they might not be as amazing as you think.

 

[Callie]

She is aware of what I'm looking for. The pictures online made it look ALOT nicer than it was in person. She thinks they priced it too high for the condition it was in. We saw it less than 24 hours on the market.

I'm willing to go a little bit higher up. There are homes in the condition of move-in, in the area I want. It's just waiting to have them come open. I've just done a search of the area I'm looking at and there are only 2 town-homes on the market right now in any price-range. So I'm aware it might take some time.

I'm just curious what some of you found were the easier, cheaper things to fix. I know painting doesn't cost a lot.

 

[Erzengel]

Don't settle. I started looking and we didn't get a house for a couple of years while living with family. We must have looked at dozens within a 30 mile radius. It was stressful on us and on our relationship. But eventually the house we really wanted fell in our laps.

 

[VandVsmama]

She is aware of what I'm looking for. The pictures online made it look ALOT nicer than it was in person. She thinks they priced it too high for the condition it was in. We saw it less than 24 hours on the market.

I'm willing to go a little bit higher up. There are homes in the condition of move-in, in the area I want. It's just waiting to have them come open. I've just done a search of the area I'm looking at and there are only 2 town-homes on the market right now in any price-range. So I'm aware it might take some time.

I'm just curious what some of you found were the easier, cheaper things to fix. I know painting doesn't cost a lot.

Cosmetic stuff that doesn't cost a lot to fix/replace/repair:

• paint
• light fixtures
• landscaping

Stuff that costs a lot to replace or repair:

• HVAC (heating, cooling system)
• flooring - depending on the type of flooring. You can often find decent deals on carpeting at Lowe's or Home Depot. Wood & tile flooring is more expensive, of course.
• leaky basements or standing water on the property in the front/back yard
• mold in the house - if the house smells musty, don't even consider it
• ancient electrical wiring that isn't grounded
• foundation problems
• leaky roof that needs to be totally replaced
• ancient sewer connection to the city sewer system which is about to break - my SIL has this situation. It's a disaster waiting to happen. ~ 10 yr ago, she spent $125,000 refurbishing her 1950s-era 1000 sq ft California bungalow house, yet she chose a $60,000 kitchen instead of installing insulation, treating for the termites that already had infected the house, and fixing/replacing the 1950s-era sewer connection to the house. As a result, they regularly have food particles that have gone down the garbage disposal show up in the clothes washer. One of these days, it'll be poop flowing into her house.

 

[VandVsmama]

Stuff that's a medium amount of $$ to repair/fix/replace:

• tub/shower
• bathroom mirrors
• toilets - ~ $100 at Lowes or Home Depot plus a plumber to come install it for you if you don't want to do it yourself

If you want something move-in ready that won't require you to do **anything**, then you should tell your real estate agent that.

 

[Callie]

Cosmetic stuff that doesn't cost a lot to fix/replace/repair:

• paint
• light fixtures
• landscaping

Stuff that costs a lot to replace or repair:

• HVAC (heating, cooling system)
• flooring - depending on the type of flooring. You can often find decent deals on carpeting at Lowe's or Home Depot. Wood & tile flooring is more expensive, of course.
• leaky basements or standing water on the property in the front/back yard
• mold in the house - if the house smells musty, don't even consider it
• ancient electrical wiring that isn't grounded
• foundation problems
• leaky roof that needs to be totally replaced
• ancient sewer connection to the city sewer system which is about to break - my SIL has this situation. It's a disaster waiting to happen. ~ 10 yr ago, she spent $125,000 refurbishing her 1950s-era 1000 sq ft California bungalow house, yet she chose a $60,000 kitchen instead of installing insulation, treating for the termites that already had infected the house, and fixing/replacing the 1950s-era sewer connection to the house. As a result, they regularly have food particles that have gone down the garbage disposal show up in the clothes washer. One of these days, it'll be poop flowing into her house.

Thank you!
Once nice thing is the places I'm looking at only have me responsible for the walls in. So the roof, siding etc are all the HOA.

I also get a nice discount at one of the big box stores thanks to my job.

I'll just keep looking and hoping something comes up. My rent just keeps going up and up so I'd like to get into something.

 

[Pea-n-Me]

Yes, I agree with cosmetics and taking your time to find the right place; don't settle, as you'll be in it for a long time and you want to really love it. We're still in our first house many years down the road!

 

[piccolopat]

If you are looking at condos, make sure you understand what that could mean to you in the future as far as assessments and special assessments go. If there is any long delayed maintenance like the roof, window replacement or parking lot repaving, you could end up with a big bill for the assessment everyone pays for these types of things.

 

[ronandannette]

If you are looking at condos, make sure you understand what that could mean to you in the future as far as assessments and special assessments go. If there is any long delayed maintenance like the roof, window replacement or parking lot repaving, you could end up with a big bill for the assessment everyone pays for these types of things.

Exactly correct and there are a lot of condo buyers that don't realize this beforehand. We were aware it was a possibility, but not informed it was imminent when we purchased ours. The condo board had already voted to do some expensive work on the parking structures prior to us buying; the work started shortly after we moved in and the bill arrived a few months later. $2,000.00 due in 60 days and a lien already placed on all the unit titles.

 

[_19disnA]

If your first time home-buying, the most important thing is what budget you have to work with. Prices can vary wildly depending on what part of the country you are in, so we can't provide any specific guidance. New listings are always showing up on the market, so don't think you have to buy something the first week you are looking. Banks typically provide 'pre-approval' letters indicating the amount of a mortgage you would qualify for which saves everyone a lot of time. You waste a lot of the realtor's and seller's time if looking at houses that are clearly outside your budget. Always have a licensed contractor conduct a thorough inspection on any home you are seriously considering buying.

Those home renovation shows tend to over simplify how big of a job this can be. Unless you are VERY skilled in that type of work, do not think you will be able to renovate someplace needing LOTS of work on your own. While it is easy to repaint a room, many other jobs are far beyond the skill of the typical home buyer.

 

[tvguy]

A great realtor is a good start.
Make sure to also stipulate that the property pass an inspection, and find a great home inspector. Make sure the seller agrees to pay for any issues found.
Make sure the seller provides a home warranty.

DD spent the first part of the year house shopping and gave up. Everything that was in her price range was selling for AT LEAST 10% over asking price. And the HOA fees........specifically the ability of them to soar without notice.....scared her off condos and places with HOA fees. She looked at a nice condo with a $200 HOA fee but the Realtor disclosed that the HOA board had just voted to raise the fee to $500 to help pay for new roofs on all the units. I thought the whole idea of an HOA was to save money for repairs you know are going to be needed, apparently they did not.
In DD's case, she discovered her lack of credit history, just one credit card, she pays cash for everything else, was a roadblock. So instead she bought and financed a car (that she did not need) to boost her credit history even though she had the money to pay cash. She was advised to keep the loan 8 months for it to count. She bought the car in April, she will pay off the balance in full in January.

 

[china mom]

I have bought and sold quite a few times and I almost always look for homes that have good bones but need cosmetic work.

If you find a house that you like, that is in your budget and where you would like to live, ask the seller for a carpet allowance or a painting allowance. Ask them to provide a new fridge or replace the stove (just don't ask for too much and have them reject your offer). If the house is overpriced for the condition,the seller should be willing to make concessions to get the house to move. If they don't, it wasn't meant to be. If you don't make an offer, you will never know.

I agree with your bad vibe when it comes to things like the A/C. That sounds like deferred maintenance and that means that there are other problems.

I second the PP in that a good inspection is a MUST.

 

[pigletto]

I have bought and sold quite a few times and I almost always look for homes that have good bones but need cosmetic work.

If you find a house that you like, that is in your budget and where you would like to live, ask the seller for a carpet allowance or a painting allowance. Ask them to provide a new fridge or replace the stove (just don't ask for too much and have them reject your offer). If the house is overpriced for the condition,the seller should be willing to make concessions to get the house to move. If they don't, it wasn't meant to be. If you don't make an offer, you will never know.

I agree with your bad vibe when it comes to things like the A/C. That sounds like deferred maintenance and that means that there are other problems.

I second the PP in that a good inspection is a MUST.

Yes ! Cosmetic stuff is no issue. You can fix ugly. But filthy appliances when you know someone is coming to see the house makes me think nobody cared to do regular maintenance.. and then I’m out.

 

[barkley]

Cosmetic stuff that doesn't cost a lot to fix/replace/repair:

• paint
• light fixtures
• landscaping

paint i agree with but depending on the city/county a place is located in light fixtures and landscaping can run a fortune b/c of permitting and inspection laws. sounds crazy i know but we lived adjacent to a city that required permits for everything under the sun-including swapping out a simple light fixture. if landscaping was something simple like adding flowers or a shrub it wasn't a huge issue but anything more and it entailed the city making sure it met the low water usage guidelines, didn't change the grade of the soil....

it was huge overkill and some folks tried to get around it but it would catch up when THEY went to sell b/c no property could sell w/o a city inspection where they looked over the property with a fine tooth comb and literally compared photos of the last light fixtures/landscaping they had on record with the current-if it didn't match and there was no permitting record it was fines up the wazoo and in some cases costly tear outs and replacements to the city's standards


my advice-buy only what you can COMFORTABLY afford b/c home ownership comes with maintenance and unexpected expenses-and find out what the laws are in the city/county you live in for repairs/renos. also look to see if there are any new bonds/taxes kicking in for next tax year as well as proposals on THIS YEARS upcoming ballot-it can make for hundreds of dollars in additional property taxes more that what you have an estimate for at today's rates.

 

[yoopermom]

I always thought condos weren't much more "work" than an apartment, but my DM has been living in one for the past ten years, and she went into it thinking she would only have to worry about the "inside", but that's not totally true. In her case, she has to pay for repainting/staining/eventual replacement of the wood deck that's attached, she has to keep the bushes/plants/landscaping watered/alive (even though she didn't get to choose them!), she has to go out and "tidy up" after the snowplow/shovel crew comes through (they don't do the best job, and then it blows back up against the door), etc. Her neighbor can't sell their unit, because there is a HUGE plan to replace roofs coming through, that's going to raise the HOA fee like crazy, and potential buyers have been very turned off by it. Also, three of the units had major flooding in the basement and lawyers are still duking out whether or not the HOA is going to have to assess all the units to pay for the issue to be remediated. Also, while many of her neighbors are of retirement age, she has one across the street that has MANY people living there, with MULTIPLE vehicles coming in and out at all hours of day and night, and the HOA guidelines aren't tight enough for anything to be done.

So I would definitely get a copy of the HOA charter/guidelines/whatever they're called, and talk to others in the development, as well, if possible. Also, don't skimp on the inspection.

Terri

 

[china mom]

Yes ! Cosmetic stuff is no issue. You can fix ugly. But filthy appliances when you know someone is coming to see the house makes me think nobody cared to do regular maintenance.. and then I’m out.

It could also mean that they are just stupid and their realtor is not advising them well. I look at listings all the time and I am constantly amazed at how many homes are poorly staged. I see laundry piled up in the photos and dirty dishes in the sink. All sorts of mess in photos. what are the sellers and realtors thinking?

As for neglecting maintenance, sometimes it works out for the buyer.

My current home was a foreclosure and I was so happy that it was ugly because that caused it to sit on the market until the bank was desperate enough to accept my offer. I purchases the house for $25K below the comps and also had the bank purchase a home warranty for me. That first year, I had to replace the dishwasher, range and HVAC. I had repairmen out for the dryer, microwave and fridge. All this only cost me about $300 for the deductibles.

I had to have carpets professionally cleaned and in one part of the house, I had to pull it up (pet stains). But that gave me the opportunity to replace it with laminate floors.

 

[Christine]

I thought the whole idea of an HOA was to save money for repairs you know are going to be needed, apparently they did not.

I don't live in a condo but in a housing development with an HOA that charges us fees. The fees cover our trash removal and maintenance of the common areas (we have a big drainage pond that needs to be drained and cleaned every 10 years or so, and we have landscaping and signs).

Basically an HOA board cannot charge residents for things that "might" come up. It's sort of pay as you go to cover operating expenses. You can keep a small cash reserve but nothing major. I know a few people who live in condo situations and, well, you wouldn't believe the amount of everyday maintenance there is to upkeep a condo community. None of them ever seem to have funding for bigger projects like roofing, siding, etc. Those all end up being special assessments and they can be hefty. Honestly, I've gone back and forth with the idea of downsizing and getting a condo, but at least where I live, condo fees are high and then there's the assessments. It's a little to unstable for my taste. Plus, even though I'm in a hot housing market, their appreciation is negligable.

 

[tvguy]

I don't live in a condo but in a housing development with an HOA that charges us fees. The fees cover our trash removal and maintenance of the common areas (we have a big drainage pond that needs to be drained and cleaned every 10 years or so, and we have landscaping and signs).

Basically an HOA board cannot charge residents for things that "might" come up. It's sort of pay as you go to cover operating expenses. You can keep a small cash reserve but nothing major. I know a few people who live in condo situations and, well, you wouldn't believe the amount of everyday maintenance there is to upkeep a condo community. None of them ever seem to have funding for bigger projects like roofing, siding, etc. Those all end up being special assessments and they can be hefty. Honestly, I've gone back and forth with the idea of downsizing and getting a condo, but at least where I live, condo fees are high and then there's the assessments. It's a little to unstable for my taste. Plus, even though I'm in a hot housing market, their appreciation is negligable.

A quick Google search seems to indicate that an HOA should have an Operating fund for month to month expenses, plus a Reserve fund ,setting aside enough money to major expenses like roofing because they KNOW they are going to be coming up in 20 or 30 years. I get that unanticipated costs could cause assessments, but a roof they know is coming. They should over the years have set aside 100% of the expected cost.

https://www.nolo.com/legal-encyclopedia/why-hoa-needs-sufficient-cash-reserves.html
https://kuester.com/much-hoa-reserve-fund/
https://blog.hignell.com/hoa-manage...Should-Use-the-Reserve-Fund-vs-Operating-Fund
https://spectrumam.com/hoa-reserve-fund-management/