Advice on real estate

[alkemyst]

In my neck of the woods, the Zillow appraisals are often 2 or 3 TIMES what the properties are actually worth, seriously, I couldn't believe it looking at the stupid appraisals in my area. And I even flagged 2 properties of my own in their system as being massively over appraised, and they completely ignored me and refused to change the appraisals.

2 to 3 times seems like a huge exaggeration or there is some special circumstance.

 

[z1ggy]

It's sounds like 1) both of you are financially unstable right now and 2) neither of you have had enough time in a relationship to be considering forever.

$10-20k upside down is hardly terrible. Most that would have put down the traditional 20% would be that much upside down the first few years...buying a home is not something you can swap out in less than 5-7 years much like buying a new car is not something you can trade in 1-2 years usually and come out ahead.

Zillow and other valuations will normally be up to 10% off.

At less than 1 year together especially that it's not been so active, you should both still be dating others anyway.

You're literally the last person I'd ever listen to on advice for anything other than being a total dick and internet troll.

 

[SlickSnake]

2 to 3 times seems like a huge exaggeration or there is some special circumstance.

Just sort of close to a lake is all. In Texas they use a separate property tax appraisal board for lakefront properties only, and they make it extremely hard for owners to challenge their high appraisals. But my properties are nowhere near a lake front at all. And there is no way in hell I could sell either property for even a third of Zillow's ridiculously inflated estimates.

 

[alkemyst]

You're literally the last person I'd ever listen to on advice for anything other than being a total dick and internet troll.

You seem ignorant and willing to stay that way.

 

[Scarpozzi]

I'm going to be a realist her and say Option 3 may clear up some things for you.

If you've been together that long, you can ask if she'd want to move in. If she does, that would present an opportunity for you to live together without her parents around the corner....then if an opportunity comes up in NJ to move down, take it and sell your house if market conditions are right.

If she declines your offer, you may not be in her long-term plans. I'm not trying to bum you out, but just saying the offer may put your relationship in full prespective for both of you.

As long as you're both willing to be with each other first and foremost, the "where" can come when it makes sense. My wife and I met in another city, married, lived there for 4.5 years prior to moving 200 miles and have been here 5 years. We both sacrificed location and time from family to be together.

Good luck to you, however you choose.

 

[blackdogdeek]

I'd talk to a local realtor. You need to find out their opinion on what you could get for your house AFTER they've actually seen your house, ie - not based entirely on what other properties in the area are selling for.

Also, when is the gf moving back home? Is it at the end of this school year or next? Once she moves back home, have you considered getting a roommate at your current house to help defray the costs and to possibly put a dent in making up the difference between appraised and actual worth? Your relationship should be able to handle that distance for at least a year and it's not like she's moving across the country. You could also look for a new job in the meantime and if you find one in nyc you can do the commute for a while while hopefully saving more money.

 

[z1ggy]

So there's only one home on Zillow listed for rent near me. It's 3bed 2.5bath, 2100sqft listed for $2000 a month.

I found a listing here at work for a condo nearby, 2bed, 2bath ~1000 sqft for $1500 a month.

As far as homes on the market right now here are the prices of 2bed 1bath properties in my area:

$118k
$175k
$120k
$150k
$65k <--- maybe foreclosed on
$85k <--- also maybe foreclosed on
$150k
$69k <-- again..
$21k <--- wtf???

These are all within about a 20mi radius or so. Only the first two were actually in my town.

Overall, I've done nothing to the property to make it any better than the day I bought it. Only thing I've done is added a wood pellet burning stove. I may seal the basement floor with epoxy as well and it's just bare unsealed concrete.

 

[NetWareHead]

So 3 of the 4 houses directly near me have all been on the market in the last year. They are all 3bed, 1 bath houses. One sold for $130k, not sure what the other went for, but I'm guessing cheap because it was a foreclosure, and the other one is currently listed at $120k.

So there's no way I'd get my money back if I did upgrades. Houses right near me with an extra bedroom are on the market for, or selling at $20k less than my house is worth. So in my eyes, any investment in the house is going to likely be a total waste. I can't imagine my house selling for $170k (what I'd need if I invested say, $15k) when others are selling for $130ish.

Do you know the quality of those houses near you? What condition are they in? What amenities do they have? What kind of lot are they sitting on? One thing I've learned is that there are no direct comparisons. The best comparisons are identical units in a condo development setting. The sq footage, rooms and everything else are the same. When you begin comparing even houses that are 1 street apart, it becomes a much harder analogy as more and more variables factor in.

if you don't want to sell then consider renting it. Its not about quantity aka how much house. It is about quality. Your place, although small, could be the perfect rental for the right couple, 2 roommates, single guy or small family. Get a realtor's opinion on rent for 2 bed 1 bath house that has upgraded amenities. My house rented in less than 3 weeks and with nobody disagreeing with the price or coming back wit a counter offer. I was kinda of surprised and initially though my initial rent was too high; now I'm thinking that I should have tried for higher. There is always next year.

Another note, the rental market is vastly different than the selling market. During the 3 weeks, my house was on rental market, it was the only one in the area and surrounding towns. Rentals capture a different kind of market and are more volatile. For instance, the day my house signed a new tenant, another comparable listing came on the market for rent and was $200 cheaper than mine. Who knows if that would have attracted away my tenant? The point is that with rental, and to an extent sales, are all about what is available right now. I wouldn't get discouraged so easily. Do research before you sell off a potentially lucrative asset. I would contact a realtor and get a market analysis, you will find historical data there and get a professional opinion

I feel like I'm pretty fucked honestly. If my gf refuses to move in with me, my relationship is over and I'll be living in a house that will probably take the better part of 5-10yrs to become profitable.

My only advice here is to not make any investment plans around a relationship unless you put a ring on it and have concrete faith.

 

[Scarpozzi]

Once she moves back home, have you considered getting a roommate at your current house to help defray the costs and to possibly put a dent in making up the difference between appraised and actual worth? Your relationship should be able to handle that distance for at least a year and it's not like she's moving across the country. You could also look for a new job in the meantime and if you find one in nyc you can do the commute for a while while hopefully saving more money.

That's good advice too. I was a slumlord for quite a few years and had a few roommates in my house to help pay my mortgage in my earlier years. (just kidding about the slumlord part) With what rentals cost folks in their 20s, a roommate situation can be great if you can land college-age students with mommy/daddy money paying their rent. It's the best demographic to aim for due to family assistance if they're unemployed or working retail/food service industries.

 

[z1ggy]

I'm going to be a realist her and say Option 3 may clear up some things for you.

If you've been together that long, you can ask if she'd want to move in. If she does, that would present an opportunity for you to live together without her parents around the corner....then if an opportunity comes up in NJ to move down, take it and sell your house if market conditions are right.

If she declines your offer, you may not be in her long-term plans. I'm not trying to bum you out, but just saying the offer may put your relationship in full prespective for both of you.

As long as you're both willing to be with each other first and foremost, the "where" can come when it makes sense. My wife and I met in another city, married, lived there for 4.5 years prior to moving 200 miles and have been here 5 years. We both sacrificed location and time from family to be together.

Good luck to you, however you choose.

I'm in her plans I think...But yeah it would seem like if she will not move to CT (if that's my only choice) then likely I'm not important enough to her.

I'd talk to a local realtor. You need to find out their opinion on what you could get for your house AFTER they've actually seen your house, ie - not based entirely on what other properties in the area are selling for.

Also, when is the gf moving back home? Is it at the end of this school year or next? Once she moves back home, have you considered getting a roommate at your current house to help defray the costs and to possibly put a dent in making up the difference between appraised and actual worth? Your relationship should be able to handle that distance for at least a year and it's not like she's moving across the country. You could also look for a new job in the meantime and if you find one in nyc you can do the commute for a while while hopefully saving more money.

Moves back home in May. I currently have a roommate. 0% chance I am commuting to NYC from SE CT. That's 3 hours there and back.

And we likely won't be seeing each other more than 2 times a month. She obviously moved back home last summer and for 3 months I'd say I saw her every other weekend. Not bad really - I got used to it. But I can't imagine doing that for years. One year? Sure, I can deal with it...But 2-3+? That will take it's toll on one of us..

 

[NetWareHead]

You're literally the last person I'd ever listen to on advice for anything other than being a total dick and internet troll.

While I understand the Alky hate, he is spot on here:

$10-20k upside down is hardly terrible.

I've spoken to people who were $50-200k underwater and those guys were in a SERIOUS problems. You have a workable situation and rescuable if you get the right kind of buyer. Or perform upgrades with a high ROI to pull you out of underwater.

 

[blackdogdeek]

I currently have a roommate.

Does your current roommate have any friends or know anyone who would like to rent your bedroom? You presumably have a trusting relationship with your current roommate already.

0% chance I am commuting to NYC from SE CT. That's 3 hours there and back.

It sounds like you still definitely need a new job though. I remember you didn't like the job you currently have and if you found a new one in your area or not too far you could save more.

But I can't imagine doing that for years. One year? Sure, I can deal with it...But 2-3+? That will take it's toll on one of us..

You only need to do it long enough to get out of your current house.

 

[ultimatebob]

Zillow says that my condo is worth $99,000, but my new short sale realtor says that it was only worth $70,000. There are units in my complex that are currently listed for $89,000, which have been on the market for almost 9 months now. The units in the area that did sell recently went for $65,000 to $75,000.... which sucks when you still owe $129,000 on it 🙁

So, yeah... my advice is to get a real appraisal of your property value.

 

[z1ggy]

While I understand the Alky hate, he is spot on here:



I've spoken to people who were $50-200k underwater and those guys were in a SERIOUS problems. You have a workable situation and rescuable if you get the right kind of buyer. Or perform upgrades with a high ROI to pull you out of underwater.

He said the same thing other people were saying, except for telling me we should both be dating other people. That plus the fact he's the last person to give dating or money advice.. But anyway, I digress...

I think I'm going to call my old realtor tonight to see what she says. I can afford to do some small upgrades, like replace my bathroom vanity to something nicer, add that epoxy floor in the basement, paint the basement walls and stuff.

Does your current roommate have any friends or know anyone who would like to rent your bedroom? You presumably have a trusting relationship with your current roommate already.


It sounds like you still definitely need a new job though. I remember you didn't like the job you currently have and if you found a new one in your area or not too far you could save more.


You only need to do it long enough to get out of your current house.

Not sure. We aren't really that good of friends. Our lease runs out on June so I'm hoping he doesn't move out. That puts me in an even bigger bind.

My gripe with my job is that it doesn't cultivate my skills. I have an engineering degree that I barely use. And I see it proliferate in the company. I'll go ask some principal engineer a highly technical question, and they can't even answer it. Guys who have been engineers for 20+ years should be able to help me, yet some of them can't. I refuse to turn into that. All I am here is a glorified paper pusher and I need to get out before I lose all my useful skills. The longer I stay, the harder it becomes to leave. That's also why while it would be great if my gf did decide to move in.. It then makes it harder for us to leave in the future because now we both need to find new jobs, at generally the same time.

 

[z1ggy]

Zillow says that my condo is worth $99,000, but my new short sale realtor says that it was only worth $70,000. There are units in my complex that are currently listed for $89,000, which have been on the market for almost 9 months now. The units in the area that did sell recently went for $65,000 to $75,000.... which sucks when you still owe $129,000 on it 🙁

So, yeah... my advice is to get a real appraisal of your property value.

D: wow that sucks, I am sorry to hear. Makes my $10-20k feel like nothing.

 

[ultimatebob]

Oh, and one more piece of advice... make sure that your girlfriend pays off her debts BEFORE you marry her. Two reasons:

Once you're married, her debt is basically YOUR debt.
Once the first kiddo arrives, so will all of the extra income to pay off debts in general.

And trust me, that first kiddo can come a lot faster than expected.

 

[z1ggy]

Oh, and one more piece of advice... make sure that your girlfriend pays off her debts BEFORE you marry her. Two reasons:

Once you're married, her debt is basically YOUR debt.
Once the first kiddo arrives, so will all of the extra income to pay off debts in general.

And trust me, that first kiddo can come a lot faster than expected.

I don't mind waiting, but good luck convincing her of that.

Not likely that she will pay off $150k in loans any faster than 15years or so.

My friend has $100k and got a 30year loan for them.

--------------------------------

At this point I'll be taking your guys advice and calling my old realtor. I'll ask her what things I can do to my house to up the value a little bit, or atleast make it more appealing to renters. It just seems like a bad move at this point to sell the house- I think I need to either rent it out, or ask her to move in. If she won't move in and I can't eat the risk involved with renting it I will likely end things. I will get a professional appraisal next year, because getting one now won't be of much use to me.

Thanks for all the advice. I'll post an update if I remember once the realtor gets back to me .