To House, or not to house

[Jiffy]

that couldn't be more true.

 

just look at the difference in a college town vs big city.

 

the change in price for the same thing is absurd, but they know people are willing to pay.

[Preacher]

http://www.realtor.com

 

I've found 3 of the 5 properties I've owned there. Look for bank repos man. I bought my current house for $55,000 (value is around $140k) I had to do a little work but I had it done for me and ended up with a house that looked and felt new for $80k when all was said and done. What you need to do is find the house you want to look at, go look at it without the real estate person (just drive by). I suggest going around 10pm to check out the real neighborhood. Then check it out via the real estate agent of your choice. In your "offer" ask the seller to pay closing costs. This will save you a few $ and also reduce out of pocket cash.

 

Make sure you look at lots of houses. Make sure you talk to a local police officer about the area. Make sure you check schools in the area if you plan on kids. Talk to one of the neighbors and ask about the city and how they are about trash in the yard, unmowed lawns etc. This will give you a clue about the area as well. Also just look at the yards and houses on the street and see if they are well kept or not.

 

Make sure to check out the plumbing/sewer, electrical, foundation, water leaks in basement, roof, doors and windows for gaps. Check furnace/AC. Look over the property and see how water drainage will be. Check the gutters and exterior where water may get in. This could save you from buying a cheap house that ends up being a money pit.

 

You can pick up houses in Cinci for $5000 and fix em up. Probably in bad areas but you never know. GL

Edited February 10, 2010 by Preacher

[Unclean]

I agree with exactly 50% of what Preacher suggested.

 

Realtor.com - yes

Bank repos - yes

Ask seller to pay closing costs - no *

Look at lots of houses - yes

Checking house vital systems - no **

Buying a house for $5000 - no ***

 

 

 

* - I hear this from people a lot, but you're not getting what you think you are. Sellers aren't stupid - they'll just tack the closing cost onto the price of the home. "Sure, I'll pay closing costs and sell it to you for $130k". They could have sold it for $125k, all you're doing is paying that closing cost over 30 years, so it ends up costing you twice the amount because of interest. And if closing costs end up being $3k instead of $5k, you've paid more anyway. That's just the illusion of a "good deal".

 

** - This might be a "yes", depending on what Preacher is saying. Checking the plumbing, electrical, foundation, etc is an excellent idea, as long as you have a home inspector do it. What's a soffet? GCFI? Tuck pointing? What's code for the amount of insulation in an attic? My guess is that you don't have the foggiest idea (I know I didn't). Go to interNACHI's website and find a home inspector you like - they'll charge $300-$500, but what they find you can ask the seller to fix. We did, and it saved us over $5k. Home inspectors pay for themselves and then some.

 

*** - unless you're an experienced flipper and/or home contractor doing this as an investment, don't get a home for $5000. At that price, you're probably just buying the land, and the house would be a complete tear-down. There's a reason why those houses are on the market, that's why other flippers and home contractors aren't buying them.

[Preacher]

I agree to have a pro do all inspections. Even with the $5000 houses don't consider a bid until you know what is needed and if you are willing to live in that area of town. Always do homework

[Unclean]

I agree with exactly 100% of Preacher's last post.

 

Me and Preacher:

[samurai nightling]

lol at the picture. And yeah i planned on most likely having a home inspector check out whatever house we think we really want to buy. I will NOT be buying an houses for $5000, i know wheres those types of houses are in Cincy, and you definitely don't want to be around those places at night....ever. Plus I dont want the hassle of fixing it up from nothing to something. I'm looking for a home already in good condition, with not alot to fix up right away. We're going to see houses this saturday, and we were approved for up to $150k but definitely are staying at $130k or under. I'm excited