Possibly buying a home, what are the hidden costs?

[McGhee]

I'm not sure how things work in other states but, the county I live in has a program for first time home buyers, people that are getting back on their feet, etc. My two friends who are engaged got into the program and now they have a standard 3 bedroom/2 bath house. (in fantastic stucco/florida development style of course) They basically end up paying about $70k for the house in total and they had to put in 200 hours of their time to help complete the house. But it's well worth it for a $650 a month mortgage payment. It's an awesome thing to get involved with and I think a lot of states have it.

 

I, on the other hand, was the co-signer on a house which is now worth less than what we're paying for. Thanks, Florida.

[mcjaco]

If I were to try to sell my house and someone made an offer that included a warranty clause I'd tell them to get lost. Once they take possession, it's no longer any of my concern. Including a warranty clause would open me up for abuse.

 

Home warranties are the biggest f'in rip off. Don't bother with them. They typically don't cover anything. You're better off asking for the seller to throw that $500-1000 in a buyer credit of some sort.

 

Paul, they aren't required, but lots of us south of your border ask for them. Lord knows why though.

[RedB]

One thing I haven't seen mentioned in this thread, get a lawyer. Make sure to get one that specializes in real estate. A real estate lawyer gets every document you have to sign, before you sign it, giving him a chance to make sure there's no fine print hidden in there they can screw you with.

[Hercules]

We got pre-approved before we went shopping for homes.

 

Know what you can afford, by go and getting pre-approved, then contact a Buyer's Agent and a real tor's office and start looking!

 

If you're clever enough you can word the contract to where the seller pays for the majority of the closing cost. *WOOT*

 

J

 

Yes. A seller's assist does help. We were able to negotiate down from $237,000 to $225,000 with a $7,000 seller's assist, to make the house $218,000. What did that get us here? A nice townhouse. What would that have gotten us in other parts of the country? A mansion. A good deal for around here though - we are very pleased.

[mcjaco]

Yes. A seller's assist does help. We were able to negotiate down from $237,000 to $225,000 with a $7,000 seller's assist, to make the house $218,000. What did that get us here? A nice townhouse. What would that have gotten us in other parts of the country? A mansion. A good deal for around here though - we are very pleased.

 

Not sure you'd get a mansion in most parts of the country.

 

Typically, 10% less than the asking cost is what homes sell for.

[ParkTrips]

^ He's right though. Same case around here.. about 200K for a two bedroom condo or townhome in and decent parts of Atlanta, whereas you can get brand new 5br/4ba for about $175 in the some of the outskirts

[mcjaco]

^ That's Georgia.

[ParkTrips]

I'd wager its pretty much anywhere outside of the northeast, SoCal and select cities across the country (ie, Chicago and Atlanta!)

[Hercules]

I was just exaggerating in regard to the "mansion" comment, but I think you get the drift.

 

Sure, houses usually sell about 10% below the asking price. However, within 2 months, the price was dropped from $255,000 to $246,000, and then down to $237,000. The house was on the market a pretty long time for around here - 6 months - and the owners at the time needed to get to their new home, as the husband was transferred to a new location for work. So we took advantage a little bit, brought down the price to where we could afford it, and moved in. Just remember, the Philadelphia area and outer suburbs is still one of the best housing markets in the country. Prices are barely budged, and still have a short shelf life on the market.

 

I went up to see my family in the Poconos last weekend, and saw a few things - a brand new 4 bed 2 1/2 bath on 1/2 an acre for $169,000, a 3 bedroom 2 bath lakeside single for $60,000, and a 2,300 square foot riverfront townhome for $189,000. What did our $218,000 get us? (that could have been $20,000 to $30,000 more in this market if we didn't get lucky). A quad-townhome on a slab, 3 bed/ 2 1/2 bath, 1,890 square feet, with no land. I am certainly not complaining as it is perfect for us, and definitely a great deal in this market. I'm just pointing out the difference.

[mcjaco]

I am certainly not complaining as it is perfect for us

 

And that's all that matters.