I think most of you have had experience on buying a house at some point your life.

I haven't made my final decision whether I am buying it within the next 6 month or not.
I am looking for any advice to assist me being first home buyer.

Any input/tips will be appreciated, if you don't think that's a good idea for me to buy now, please let me know as well.


I am looking forward to hearing of your precious advice! :)


Happy New Year!

My advice: Don't buy now... wait for another 12-36 months. To have to assume that you may want/need the option to sell within the first 5 years after purchasing a home. If that happens, with the way the market is now, you will end up selling for less than you bought it for... very frustrating.

We are at the beginning of a trend that we have seen before. This may last for 7 years or so. The good news is that it won't likely go a WHOLE lot lower. But you want to get in when its at its lowest. That will likely be within the next 3-4 years??

There's a lot to consider.

You're in grad school right? Are you intending to stay in the area? Where generally are you located? Being in school doesn't mean you shouldn't... I have a friend who owned her first house just out of college, owned again in grad, and has built up some good credit and equity in the process.

Get preapproved to understand what you are able to get a loan for, though that doesn't mean you should spend that amount. Talking to some mortgage brokers can help you understand whether you can even buy in your market.

Maybe some more info is good... why are you compelled to buy now? Anything you are interested in?

More advice to follow, but can you tell us more about what you are thinking?

No, I am working. It seems to me a big waste on renting since I travel for work internationally. I am intending to stay in where I am.

Also, the interesting thing is that the housing market in my area has always been stable, compared with most of the places in the Nation.

Are you inclined to divulge a location in proximity to yourself?

(in other words, can you tell us whereabouts you live?) :D

It's a beach city on the east coast... more and more people from NYC, Florida have been moving to my area, the housing price has never gone down.
Hard to decide...

When looking for a house, find a reliable and trustworthy appraiser. Someone who actually does look at the house and foundation and will be truthful in noting things that need to be replaced, fixed, brought up to code, or suspicious. Not someone who walks through the house and calls it good.

Check your neighborhood carefully. Even contact your local police department and ask if there are problems in that area that you personally do not want to live with - such as break in's, robberies, vandalism, etc. See if you can visit the area on different times of the day - note the traffic and noise level and patterns of the neighbors. If you cannot do that, maybe one of your friends could do that for you.

Taxes - comparable taxes for homes in that area.

Problems with the house. Was there any water ever in the house, either through the roof or via the basement? What about the wiring? The appliances in the house? Do they still work? Even the water heater? Check for rust. The appraiser should do those things, that is what you pay for. If not, perhaps you know someone who could check those kinds of things out for you. The pipes in the house - are they up to code?

Just pulling things out that happened to my ex and I when we would be in the market for a home.

Hope this helps.

VERY helpful! Thanks shy.
I also don't know whether I should get a house or condo ( I am living on my own)... the condos I have looked are much cheaper, and I am pretty sure that I will live in that area for over 2 years, and I have got countable info. On the moving of my current company in 5 years, which means, I will have to sell it in 5 years.

Find a good lender and a good agent. If you know someone who has used an agent before and had a good experience, ask for their name; referrals are excellent.

If the market in your area is stable, it won't hurt you to buy now, especially if you plan on staying where you are for a while. Personally I'd avoid a condo because the fees are insane. My cousin and his wife pay monthly condo/HOA fees equal to a third of their mortgage payment.

Get a home inspection and a pest inspection, a house can look great on the outside, but have some very costly and dangerous problems under the surface (unstable chimney, cracked foundation, moisture in the basement... )

Remember owning a house is much more expensive than renting; if the dryer breaks, you have to fix it. If you have a lawn, you have to cut it. Roof leaks, you have to replace it, and so on. BUT, if you buy a good place with little that needs to be done (newer appliances, newer roof, etc) you can put most of these costs off for a while.

Don't figure you have to sell in five years; since you'll likely be buying a starter house, you can always keep it and rent it out. This is a much more attainable goal if you plan for it over the course of the next five years.

Check out REALTOR.com - Real Estate Listings & Homes For Sale (http://www.realtor.com) to see what is for sale in your area in what price ranges. You can click "map search" to get more specific in your area.

Thank you so much, jilianleab!

What do you guys think about me buying a piece of land + manufacturing home?

(Manufacturing home is not a trailer :D)

Pre-fab homes have come a long way and can be quite nice. I'd be hesitant if it's not something that is popular in your area, but I wouldn't rule it out. However, since you aren't planning on being in your area long term (assuming you plan to leave when your company does in 5 years) unless land is really cheap where you are, cost wise you're probably better off going the traditional route. I've never known anyone who has built a home who hasn't had problem after problem and had it turn into a years long process. So my opinion (with the limited knowledge I have about your area, finances, etc) I'd skip it.

What do you guys think about me buying a piece of land + manufacturing home?
For a first home, I think you're better off buying an existing house. Buy only as much as you can comfortably afford, in a stable neighborhood. If you want to try your hand at remodeling and upgrading, try to find a home that's not quite as nice as nearby houses, but that with some nice landscaping, maybe upgrading bathrooms and kitchen, maybe a new deck or patio, would fit right in. Be very careful though, because it's easier than you might think to get more in a house than you can get back out of it.

If you're not up for that, maybe a brand new home in a recently developed subdivision would work. With the current slowdown, builders may need to move inventory badly and be willing to deal. Get lots of advice from people who are intimately familiar with the real estate market in your area. Details really matter, and even a couple of blocks difference in location can sometimes be a lot.

If the market is as stable as you say, you probably won't gain a lot by waiting, but don't be in a rush, either. No matter how insulated it may be from the larger problems in the credit market, I don't think there's likely to be a very hot market anywhere over the next 6-8 months, so you can afford to be deliberate about it. Get pre-qualified for financing, start looking and ask lots of questions.

manufactured housing is still not holding its value as well as the same money, and most certainly not a brand new manufactured home. You will lose value the minute it is set on your land.

But on any home, have a very very good home inspection, don't skimp on the money for this,

Also don't get caught up in the placement of furniture ( since it is not yours) don't get caught up in colors of walls, you can repaint, or ask them to repaint if you buy it before closing.

Look for foreclosures and bankruptcy properties, you can often in a foreclosure buy a 200,000 home for perhaps 140 to 150,000 dollars.

Don't trust the mortgage company, have a real estate attorney look over every piiece of paper before you sign it.

don't fully trust the real estate agent, they are making a commission to sell you a house, and are often working for the seller, not you.

Rent vs. Buy - Financial Calculators from Dinkytown.net (http://www.dinkytown.net/java/MortgageRentvsBuy.html)

You may not have kids but school district is important.

Do you have a significant other or plan on it ? Sorry so personal, but the house buying decision has to factor that in.

Go to the local court house - you may be able to see what price a potential house was bought at and what other similar houses in the neighborhood have been sold or bought at.

In general don't buy the most expensive house in the neighborhood or "overimprove" for the neighborhood, unless that house has something tangibly unique, marketable and limited [ land / lot size, view, waterfront for example].

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html


Good luck

This just in:

New Home Sales Fell to 12-Year Low in November (http://www.nytimes.com/2007/12/29/business/29econ.html?hp)

I would be more inclined to go with a condo. There is a lot more maintenance on a home then there is on a condo, especially for someone who travels frequently.

I would be more inclined to go with a condo. There is a lot more maintenance on a home then there is on a condo, expecially for someone who travels frequently.
This is especially important if you intend to live alone. Leaving a house unoccupied for several days, even weeks at a time, several times a year is inviting disaster of some kind, and house-sitting services might not come cheap.

An owner-occupied duplex is an option that's sort of halfway between a single-family and a condo. But then, of course, you're not just a homeowner, you're a landlord too. I did this during my grad school days--bought an old house that had been subdivided into three apartments, lived in one and rented the others. The whole 8-year experience was overwhelmingly positive. I never had to advertise; as one tenant left, their friends would be standing in line to get it next. And several of those tenants are my good and treasured friends to this day, more than twenty years later.

You make a good point, Scott; if a condo can be found with reasonable fees, it would be a good option. Sometimes though, the condo association raises their fees unexpectedly; my cousin I mentioned had a reasonable condo fee when he moved in, but a year later it more than doubled. It's sort of like a guessing game.

If you can find a townhouse instead of a condo, that would be a good option. It will have a small yard, close neighbors to keep an eye on things when you are gone, and it probably won't be too huge for just one person. You also are more likely to find one with reasonable or no HOA fees.

Have you been working through a realtor? That's the best thing for you to do. (S)he can advise you through the entire process. And at no extra cost to you, since (s)he'll split the commission with the seller's realtor.

Have you been working through a realtor? That's the best thing for you to do. (S)he can advise you through the entire process. And at no extra cost to you, since (s)he'll split the commission with the seller's realtor.

s_cianci, I am not quite understanding about the splitting commission part... you mean a second realtor? Who is responsible for paying him/her? Do I ask for one or the seller?

Thank you.

s_cianci, I am not quite understanding about the splitting commission part...you mean a second realtor? who is responsible for paying him/her? Do I ask for one or the seller?

Thank you.The seller will (in most cases) be represented by a realtor. The seller's realtor will draft the contract of sale and represent the seller at closing. The seller pays that realtor a commission at the conclusion of the sale (typically 6% of the selling price.) Now you, as the buyer, can likewise use the services of a realtor to represent you, assist you in negotiating the terms of the sale and contract and be your representative at closing. And it won't cost you anything out-of-pocket. Since, by virtue of assisting you your realtor assists with the sale of the property, your realtor receives half of the selling realtor's commission (3%). When you see a listed property that interests you, simply contact your realtor and ask him/her to schedule a showing with the seller and/or the seller's realtor. You can do this as often as you want until you finally find a property that you want to buy. Then your realtor will assist you with all aspects of the purchase, in return for 1/2 of the seller's commission.

Oh I see, thank you, so my realtor will be working for the seller as well.
I mean yes, he/she will be kind of helping me but I can imagine he/she persuades me on buying it for his/her benefit, will he/she?

Your realtor gets commission no matter what house you buy (for sale by owner homes get a little funny), so there's no reason to pressure you into one house or another. Some sellers offer buyer realtor benefits, like extra commission, but if there's no benefit for YOU to buy the house, why do you care if your realtor gets more commission? So make sure you buy the house YOU want, not the one your REALTOR wants you to buy. Also, a good, responsible realtor will put their efforts into finding the house you want and taking what they get from it.

Oh I see, thank you, so my realtor will be working for the seller as well.
I mean yes, he/she will be kinda helping me but I can imagine he/she persuades me on buying it for his/her benefit, will he/she?Not really. Realtors don't typically use high-pressure tactics the way a car salesperson might. Your realtor knows that once you decide on something to buy, (s)he is going to get 3% either way. For that, (s)he will help you navigate the legal complexities and get you the best possible deal.