Help!!!! First time home buyer in Cali

[pnoon]

Originally Posted by chippewastud79

Being unfamiliar with the Southern California market, you may have gotten me on that one.

I would still hestitate to say making any offer close to the asking price is a good move. There are always room for negotiations and if there are a number of offers that drive the price over what he is willing to pay, it would be easy to walk away.

No doubt. But my point is that you will be "walking away" for a looooong time. It took us about 5 months of looking/offering before we closed the deal. Many people don't have that kind of time or are unwilling to play the waiting game.

[chippewastud79]

Originally Posted by pnoon

No doubt. But my point is that you will be "walking away" for a looooong time. It took us about 5 months of looking/offering before we closed the deal. Many people don't have that kind of time or are unwilling to play the waiting game.

I agree, buying a house is never something to be rushed. Walking away can be frustrating, but you have to do what is best for you and not settle for something as a compromise.

[macpappy]

One thing I haven't seen mentioned and I apologize in advance to anyone who may be offended.

When you find a real estate agent tell them to look a homes under bank foreclosure. I not sure if it's the same in California as it is here, but the agent I had suggested looking at homes that mortgage companies had foreclosed on because they could only sell them for what was owed on the mortgage. By doing that it put us in a nice 4 bedroom/2 car garage on the biggest lot in the subdivision for almost half of what comparable homes were selling for.

Just a thought.

[livwire68]

We just purchased about 6 mo. ago our first. We are in Vegas which has a very different market. We looked at over 100 homes across the valley and every one was a foreclosure. There were a few for sale either by owner or short sale. Short sales can be a pain in the arse (too many middlemen), better to go straight for a foreclosure. I would also only go for a foreclosure if they are abundant in the area, otherwise compitition will drive up the price. Great advice on not getting hopes up high, we were a day away from signing our closing papers and the deal fell through. In our market we made multi-offers and had multi- acceptances. The house we actually got was under contract which fell through and we were getting ready to go under contract on another house. We hesitated on our contract to see if others accepted and we got a house we wanted more and only paying $10,000 more for one that suited our needs bucause their deal fell through. We got at $5000 below asking price because we also had to include down payment assistance in the overall loan. Pre-approval letter is a must! I knew what we wanted in a house, I went through 2 realtors, the first being a friend (word of wisdom, dont do business with a friend) We are still friends but we lost the first house due to his screw up, we made amends. I did most of the searching on realtor.com and a local search where I could add my specific criteria, I then gave the list to the realtor who researched them with her special realtor only info. and she gave me the low down and we chose which to see from there. Aslo do not let your realtor know you are in love with a house, many will push you into making an offer with out looking at others (again depends on how aggressive your market is) A good realtor will show you many, if you have one doubt about a house they will move on and not push you into a house. If you have a doubt about one put it at the back of the stack and keep looking. If you do not get the house you want there is a reason, the right one will come along even with much discouragement. Hope this helps, it is some of what we went through in our market.

Originally Posted by RGD.

Worst one few years ago - and now this couple both have Phd's so you think they would of had a clue at least - anyway, the Realtor tells them it's not bad and will only run them about $2 grand to fix. $126 thousand later after replacing three basement walls . . . .

Always get a home inspection

Yikes! Just remember that getting that home inspection helps a lot, but didn't help us with that damn leak. The inspection doesn't guarantee you won't have any problems, it just lets you know what might need addressing before you take ownership.

Could the house collapse after inspection and the day you move in? Sure, but those inspectors (the good ones) do a good job at detecting the issues.

It was our choice to stick with the house we wanted and accept the $1,500 drop in price to 'take care of the leak'. To do over again, I would have demanded that they continue fixing the leak instead of telling us that they've tried & okay, we'll take off $1,500 for you to do the rest. We bought in a seller's market, though, had lost the first house because of a terrible realtor we used before finding the good one and did have another couple bidding with us. It was either them or us on this one too and we chose to bite the bullet and take on the problem.

You make the choices as they're presented to you. If there are too many issues that you'd rather not address, you're in the right place because there are plenty of other homes out there.

[MikeyC]

Originally Posted by mrreindeer

Yikes! Just remember that getting that home inspection helps a lot, but didn't help us with that damn leak. The inspection doesn't guarantee you won't have any problems, it just lets you know what might need addressing before you take ownership.

Could the house collapse after inspection and the day you move in? Sure, but those inspectors (the good ones) do a good job at detecting the issues.

It was our choice to stick with the house we wanted and accept the $1,500 drop in price to 'take care of the leak'. To do over again, I would have demanded that they continue fixing the leak instead of telling us that they've tried & okay, we'll take off $1,500 for you to do the rest. We bought in a seller's market, though, had lost the first house because of a terrible realtor we used before finding the good one and did have another couple bidding with us. It was either them or us on this one too and we chose to bite the bullet and take on the problem.

You make the choices as they're presented to you. If there are too many issues that you'd rather not address, you're in the right place because there are plenty of other homes out there.

Home Inspectors can only point problems. They're kind of "jack of all trades master of none" kind of guys. I don't know how it works in CA, but here in MA after you have your initial inspection you're allowed to have follow up inspections as long as it is within the inspection period designated in the offer. This is a good time to bring in contractors who are experts in these areas and will give you a much more accurate idea of how much it will cost to fix an issue found during the initial inspection. In fact, here in MA most home inspectors will not even risk venturing a guess as to repair costs as they are not experts in the matter and are afraid of a lawsuit.

Also, as a realtor, I never advise my clients to allow the homeowner to fix any issues from the inspection unless it's something as simple as a squeaky door. Call in a contractor during the inspection period, get an accurate estimate of how much it will be to fix, and negotiate a credit for closing costs equal to the repair cost. Mainly I tell people this because the homeowner will have the problem fixed in the absolute cheapest, shoddy manner possible. So, it's better to get the money and fix it yourself after.

[RGD.]

Originally Posted by MikeyC

Home Inspectors can only point problems. They're kind of "jack of all trades master of none" kind of guys. I don't know how it works in CA, but here in MA after you have your initial inspection you're allowed to have follow up inspections as long as it is within the inspection period designated in the offer. This is a good time to bring in contractors who are experts in these areas and will give you a much more accurate idea of how much it will cost to fix an issue found during the initial inspection. In fact, here in MA most home inspectors will not even risk venturing a guess as to repair costs as they are not experts in the matter and are afraid of a lawsuit.

Also, as a realtor, I never advise my clients to allow the homeowner to fix any issues from the inspection unless it's something as simple as a squeaky door. Call in a contractor during the inspection period, get an accurate estimate of how much it will be to fix, and negotiate a credit for closing costs equal to the repair cost. Mainly I tell people this because the homeowner will have the problem fixed in the absolute cheapest, shoddy manner possible. So, it's better to get the money and fix it yourself after.

Don't mean to harp on this subject - and I will stop after this - it's just that I see this constantly in my line of work. Make sure the home inspector is certified with "The American Society of Home Inspectors (ASHI)". In most any area all a person has to do is print up a business card and call themselves a home inspector. And once they identify there is a problem - as suggested above - call a contractor. In my line of foundation and structural repairs - most inspectors can say there is a problem but they don't normally know how to fix or the cause or the cost.

Anyway -

Ron

[MikeyC]

Originally Posted by livwire68

We just purchased about 6 mo. ago our first. We are in Vegas which has a very different market. We looked at over 100 homes across the valley and every one was a foreclosure. There were a few for sale either by owner or short sale. Short sales can be a pain in the arse (too many middlemen), better to go straight for a foreclosure. I would also only go for a foreclosure if they are abundant in the area, otherwise compitition will drive up the price. Great advice on not getting hopes up high, we were a day away from signing our closing papers and the deal fell through. In our market we made multi-offers and had multi- acceptances. The house we actually got was under contract which fell through and we were getting ready to go under contract on another house. We hesitated on our contract to see if others accepted and we got a house we wanted more and only paying $10,000 more for one that suited our needs bucause their deal fell through. We got at $5000 below asking price because we also had to include down payment assistance in the overall loan. Pre-approval letter is a must! I knew what we wanted in a house, I went through 2 realtors, the first being a friend (word of wisdom, dont do business with a friend) We are still friends but we lost the first house due to his screw up, we made amends. I did most of the searching on realtor.com and a local search where I could add my specific criteria, I then gave the list to the realtor who researched them with her special realtor only info. and she gave me the low down and we chose which to see from there. Aslo do not let your realtor know you are in love with a house, many will push you into making an offer with out looking at others (again depends on how aggressive your market is) A good realtor will show you many, if you have one doubt about a house they will move on and not push you into a house. If you have a doubt about one put it at the back of the stack and keep looking. If you do not get the house you want there is a reason, the right one will come along even with much discouragement. Hope this helps, it is some of what we went through in our market.

Every market is a little different. Some have suffered much more of a collapse than others and this will even vary from town to town in the same state. Buying a foreclosed property can certainly save you some money, but the buyer takes on additional risk that they don't during a "normal" transaction. Also, DEFINITELY stay away from short sales. With a short sale, you'll be lucky if you can close on the home a year after you make the offer. Also, like in a foreclosure situation you take on additional risk.

[livwire68]

Originally Posted by MikeyC

Every market is a little different. Some have suffered much more of a collapse than others and this will even vary from town to town in the same state. Buying a foreclosed property can certainly save you some money, but the buyer takes on additional risk that they don't during a "normal" transaction. Also, DEFINITELY stay away from short sales. With a short sale, you'll be lucky if you can close on the home a year after you make the offer. Also, like in a foreclosure situation you take on additional risk.

Typically "AS IS, WHERE IS!" you can still get a home inspection to make a determination. Ours was 2 years old and I am in the construction business, so I was confindant in our decision. We did not get a home inspection, I did it myself and in the contract I also added an insurance for any home problems for the next year, which they agreed to being their cost. The best thing to do is get to know a relator (if not satisfied, get another) and they will be your guidiance through it all. And yea I worked 2 realtors, its not about their happiness its about yours!!!!!!!!!!!!