F-Body Europe

Not here unfortunately as the euro is cleanin the hell out of my colon!

Here is the jist of it. I'd thought I'd ask here as I know some of you own homes. I'd just like to get your input on our situation and any recommendations you might have. Grab a doughnut and some coffee if you don't mind the read but I'll make it as brief as possible.

Soon I'll be a 1st time buyer probably this spring or summer. Based on requirements to qualify for a loan we're the exception. Our CC's scores are low 800's from all 3 credit agencies, no car payments, rent free thanks to USAF & no CC debt-- if you want to call 500 bucks debt between the 2 of us debt. We both can retire in 09 and we are looking to settle in the Raleigh/Wake Forest NC area.

The house in mind I'm looking into is $399,900. Current owner paid 350K as it's a resale and they've owned it a little over a yr. I wish I knew what it cost to build it but don't know how to find out.

Built 2003, 5000 sq ft, 2500 main floor, 2500 basement section sectioned and ready to go, 2 car oversized garage, 0.93 acre on cul-de-sac. COMPLETE CUSTOM, hardwood floors & tile throughout. Given the prices of the homes just on their street range from low $309,000--high $355,000. What do you think would be a fair offer for the house? Tax value for the home is $349,904. It has been on the market a 160 days thus far and 2 others have looked at it but made no offers as it's a complete custom house. We haven't made any offers as we're still here, I had my parents look at if for us this past weekend and they almost made an offer on their own behalf to buy from under us! No joke it's that nice.

Price is negotiable. But they did drop 50K in upgrading master bedroom/master bath. Would an offer of 5-7% off their asking price be considered a reasonable offer seeing how it's been sitting almost 6 mos? Selling due to job relocation and have told the realtor they'll take it off the market if doesn't sell soon and put it back on the market late spring for a higer price. I'd hate to wait til spring and find it up for sale @ 420K or higher and then haggle them down to 400K. Know what I mean? They said they feel they are already taking a loss now offering it at 399,900 BUT still the price is negotiable.

The wife loves the house (which is rare) and she's a tight wad to begin w/. We find out sometime next month where we are going and if we get VA, NC, or SC she wants me to fly back and check it out and make an offer.

And far as down payment we'd put 50-65 % down. So what are your thoughts?
Thanks.

5000 sq ft? Are you planing on buying a whole complex? (that's something like 450m^2, right?)

Yeah Garry it's rather big...but in reality it isn't so to speak. Everything is on the main floor. The basement is the other 2500 square feet. It's completely sectioned and heated and plummed as well. It just needs some minor work to make it a finished product. The basement will be used for my gym, entertainment room, and office. The house has a european flare to it too which is I why I really like it w/ the hardwood floors and ceramic til. It's got this custom refrigerator that's huge and the kitchen is built around it. It's sweet.

Only thing I don't like is the HOA. I can only have 3 cars. Not feeling that but I can work w/ it I suppose.

Sounds nice either way ... but still, rather large, even if it's "only" 225m^2 ... as for the garage, I guess you can always put another little shed up near the house to park some more cars in

The price really depends on how things are selling around it, you really need your own realtor to figure it out. A realtor can check the past and present listings in the area and you really need to compare it to houses in the same neighborhood. The value of this house is only as good as what's been selling around it. After you see what past selling prices have been (for comparable homes) then you can decide on a good counter-offer.

The seller can say they will wait and list it higher, but that really may not make a difference for them. More people may be looking in the spring, but it will only sell for more if two people really like it and want to bid against each other.

In most of the states it's a buyers market, the bubble burst over a year ago for sellers. Most buyers are looking for good deals now, so they'll have to price the home based on their local market value. The upgrades alone don't make the house more valuable.

As for your loan, go to lendingtree.com. You'll get offers from at least 3 different banks and you can use their quotes against each other, barter with them. There's no requirement to accept any offers either, it's just a good way to see what the best rates are if you want to barter with your bank. Aside from the APR, look at closing costs, special offers, etc.

It's a real PITA, but it beats renting.

Thanks A10beav! That's some really good information there. Homes in the local area are selling in the 309-355K range. But from what I can tell these are the values of the home but not the actually selling price of the homes in the area. That I can find out as I found a website that lists the home sold provided you have the address.

Yeah I know about the spring thing and that's why I'm trying to get on it now so to speak. It's the only house in the neighborhood that's for sale. That's good to know potentially upgrades don't necessarily make the house more valueable. I know when people do upgrades it seems they want 10K for every thousand invested. Yeah right. But that's what I've observed for the last yr when looking around.

I've already told the realtor I'm not out bidding a competitor if it comes to that. My budget is my budget and I'm not going higher regardless. I can build instead if comes to that.

How about some pics?

And get a realtor!!!

About the realtor, if the seller has a realtor then they have already agreed to pay a fee (usually 6% of the selling price). So your'e probably not going to save any money by not using one; the seller & buyers realtors split that fee.

A10 is all over it.

Here is a couple of thoughts though.

Why the heck would the selling price be soooo far over the tax assessed value. I have never seen/purchased a home for more than what the government wants to tax you on. That is crazy.

Check with your realtor (there is no reason for you not to have your own) to see about their financing options. They can also tell you about any incentives for 1st time buyers. We were able to get reduced interest rates and closing costs for our first one. IT made a huge difference.

You may also want to consider using less of a downpayment fo reap the tax benefits due to the interest. Just something you might want to look into with your tax guy. I sure am going to miss that this year.

As far as getting local housing costs, your realtor will be able to provide you with a pritnout of the market. It will show you the original list price and selling price of any homes in the area. Another option is to find the states records online or in person. The tax information is public info so not too tough to get.

Finally, the HOA may be a problem for you. I can tell you that the last subdivision I was in (no where NEAR the value you are talking about) was a PITA for me. I had my car in the garage, on jack stands and COVERED and they threatened me with a lien. It cost me about 6 months of fighting and eventually sold the car.

Like I said, A10 is all over it. My wife was a realtor so we may be able to help you out with further info.

My 2 cents worth.

It is not a 5000 sq ft house unless the basement is finished completely. I personally think the price is unreasonably high. If you really want the house I'd offer 15% less at most.

I couldn't handle the HOA if they say you can only have 3 cars. I can see not parking them on the street or no working on the cars in the driveway, but not a limit on the number of cars you can own. What else are they going to complain about once you move in???

Have you looked into the cost of heat/AC, insurance, etc. Who is going to clean 5,000 sq ft??? Be careful that you don't end up as a slave to your house.

What is the neighborhood like? With a HOA that anal and houses that expensive, you may be moving in with a bunch of snobs that will get upset over your exhaust, your car friends, etc. Been there, done that, ain't much fun.

Be sure you think about what you will be giving up to own that much house. Life is all about choices.

Daddy here is the house. http://www.aliceray.com/235GeorgetownWoods.html

Brian. I was thinking the same thing regarding the tax value of the home. Personally if I was going to make an offer I was going make it 355K. They've only been in the house themselves 18 mos and paid 350K for it. In terms of the DP I don't want a note higer than 1200 that's the reasoning behind that. I wasn't aware of any tax benny's for a lesser DP. Yeah the HOA is a concern a BIG concern. I'm already looking at other property just in case. This one in particular. http://www.realtor.com/realestate/sanfo ... /?gate=msn
I'll be sure to bug you and April.

Jerry as far as the cars they just can't be parked on the street. No biggie as there is plenty of driveway. In order for me to add anything though I'd have to go through those guys. I've already have their HOA policy as they sent me a copy. In terms of heating/electric doesn't exceed a 100 bucks a month but they have kids too so I'm 100% positive ours would be less, by how much I don't know. Insurance I haven't looked into yet but I'm pretty sure it isn't cheap. HOA is 140.00 a month. The more I think about the HOA the more I don't care for it even though it does have some benefits.

AND YOU ARE RIGHT about not being a slave to the house. That has come across my mind a lot. If I can build something smaller that's custom for 300K and a acre of land I'd do that but NC is starting to climb and right now it's cheaper to buy pre-existing than build. I've still have time so in that regard I am not pressed. Ideally I'd only want 2500 sq ft max w/ a 3 car garage.

Thanks for all the great info! Keep it coming if anything else comes up.

Looks nice!

Thanks Garry. If I were to build this is the house I want to build. 2600 sq ft and the only thing I'd change is add a 3rd garage.



And this one here is option 2 as it comes w/ a 3 car garage.

Damn, look at those little mansions

HOA's can be a pain, I'd love to avoid them. Tho good thing is they keep the neighborhoods nice, the bad is you have to put up with someone else's opinion. Sometimes board members have never been in charge of stuff before and they get overzealous with their position. $140 a month is pretty expensive too, what do they provide in return? Great pool? Large parks? Better be something good for that price.

I've never had a tax value close to the market value of the house, the tax assesors use different tables to set their value; they don't look at upgrades inside or in the back yard either. That being said, it looks like they're trying to recoupe their upgrade costs (unlikely in the current market). Just look at past sales to determine an accurate value.

Brian and his wife can probably give you some good info, I've only dealt with 2 homes.

I thought the same thing. Then I looked at the MLS...it is $140 per YEAR. That is more like it.

Yea, that's much better!

Thanks A10 as that sounds about right regarding trying to recoupe their expenses on the upgrade. Initially when I seen the house I'd figured 320-330K. Not my fault they paid 350K for it. I'd still love to know what it cost to have that sucker built though esp back in 2003.
HOA's are nice esp for someone like me as I don't like have the bad elements in my neighborhood. But like you said you get someone overzealous and things get out of hand quick. That's the major downside to that. Kinda reminds me of communism to a degree. Damn...I'm a commie?! That can't be right. LOL!

You guys think 2600 sq ft are mini mansions?! Anything under 2000 sq ft is too small even if I was living by myself.

Yes i agree, 2000sqft garages are a must.

Now we're talking!

I'm planning to build a 2400sqft workshop when I retire. 12ft walls and two lifts. Don't care a lot about the house, but Linda does