Your first time home buying mistakes?

[NetWareHead]

Don't buy an old home. They have lead, asbestos, mold, old furnace, old air conditioning, old plumbing, old electric. etc.

I disagree. Old houses have desirable character and nicer features such as virgin growth wood flooring, wood trim, real chimneys, real dimensional lumber (back when 2x4s really were 2x4s) etc... Most houses back then were built with craftsmanship and pride meant something as as a result you have a stable house with "good bones" even if you have antiquated leaky windows or an old furnace etc... That stuff can be replaced with high efficiency heating/hvac systems, modern windows, plumbing etc... You do get disadvantages though; some people hate plaster walls, I like them even if they are a pain in the ass to cut a hole in to install an outlet for instance. Older houses can contain asbestos or lead paint but sometimes it is cheap to remediate them; removal is not always necessary and you can sometimes do it yourself. The look and feel of new construction is appalling and I can't stand it sometimes. I like old houses for the rock solid stability feel of them. I also enjoy the older styles so they are aesthetically pleasing to me too.

 

[HumblePie]

Storm shelters seems like a no brain-er if you live in Tornado Alley but it isn't actually required by code for even schools or public buildings in areas that were just hit by HUGE twisters recently. They decided it was just too expensive to enforce...again.

Older homes can't be elevated. Clean gutters is obvious. However with stronger storms brewing the sewer systems backup more then they use too. A friend recently lost thousands from the basement flooding. It's just a mess too clean up as well.

If you have a basement overflow from backup sewers there is no excuse to have not installed a check valve.

Plan for emergency contingents. If the sewer system can't be used then don't try to use it until it can be used. Which means taking steps to contain solid waste somewhere else, letting the yellow mellow, and skipping the showers.

 

[vi edit]

I've lived in 4 different homes with basements. The only one that had any water problems were directly attributed to gutter issues. It was a rental unit and the house itself had weeds growing out of the gutters. The house next to us had the same problem. When it rained all of that water poured out and leaked into the basement.

The other 3 were all owned by me, well maintained and incredibly dry. For what it's worth, 2 of them had walk outbasements and didn't even have a sump pump. Walkouts completely change the water flow around the house and can virtually eliminate wet basements. The only risk of intrusion at that point is poor drainage/backfilling.

 

[Eug]

I didn't make this mistake, but you need to assess where you want to buy. Location is almost more important than what you purchase.

I was able to buy a home less than a mile from a country club, a US Senator's house, an organic grocery, a few bars, a CVS, and 2 miles from the downtown streets of a decent-sized city for under $100k. I sold it 4 years later when the market was down (was moving out of the area).....I sold it in a few weeks and turned a decent profit. The house wasn't much... I had 3 family members move within that same time frame (in Atlanta and other cities). All sold their homes were sold at a loss.

Try to find neighborhoods that have upward movement and never buy the nicest house in the neighborhood.

Interesting you mention this. There is some truth to what you say, but then again I ended up buying one of the nicest houses in my neighbourhood as opposed to one of the crappiest houses in a different neighbourhood.

Why? Because the crappier house in the different neighbourhood was... welll... a crappy house. I wanted a nicer house and nicer lot, so I went to a cheaper neighbourhood. Note though that it's not a crappy neighbourhood. It's just not a high end one.

 

[ultimatebob]

You mean, besides buying at the top of the market and watching my condo go down in value by 40% in three years?

My advice? Get a realtor that isn't a greedy bitch. If she tries to sell you property in a bad neighborhood just because it's "in your price range" RUN away.

Oh, and don't buy a house until you have the 20% to put down for a down payment. Getting PMI sucks, as does getting two mortgages.

 

[IronWing]

Check out the neighborhood carefully. Are there lots of rentals? Rentals are generally owned and lived in by people who don't care.

Check out the night life. Park on the block at 9pm and just listen for awhile, take in the smells. Dogs barking? Loud music? Low flying aircraft? Highway noise? Domestic violence? Hog farm? That stuff won't go away.

 

[mizzou]

I'm still living in it, lol

but overall, we could have done much worse. Very decent neighborhood considering the lack of thought that went into it.

biggest downside, resale values suck.

 

[HumblePie]

You mean, besides buying at the top of the market and watching my condo go down in value by 40% in three years?

My advice? Get a realtor that isn't a greedy bitch. If she tries to sell you property in a bad neighborhood just because it's "in your price range" RUN away.

Oh, and don't buy a house until you have the 20% to put down for a down payment. Getting PMI sucks, as does getting two mortgages.

Meh, with the VA and having enough disability, I didn't have to put down a dime nor have to deal with PMI

 

[It's Not Lupus]

Don't buy an open floor designed house. It depends on how you live, but noise from TV, people, kitchen and smells from the kitchen travel too easily.

 

[13Gigatons]

If you have a basement overflow from backup sewers there is no excuse to have not installed a check valve.

Plan for emergency contingents. If the sewer system can't be used then don't try to use it until it can be used. Which means taking steps to contain solid waste somewhere else, letting the yellow mellow, and skipping the showers.

Check Valves are mechanical devices that can and do fail.

 

[DrPizza]

Interesting you mention this. There is some truth to what you say, but then again I ended up buying one of the nicest houses in my neighbourhood as opposed to one of the crappiest houses in a different neighbourhood.

Why? Because the crappier house in the different neighbourhood was... welll... a crappy house. I wanted a nicer house and nicer lot, so I went to a cheaper neighbourhood. Note though that it's not a crappy neighbourhood. It's just not a high end one.

I think you sort of missed his point a little bit. You don't want a lot that you're not happy with, nor a house with a layout/sq footage that you're not happy with. But, if the entire neighborhood has houses with granite counter tops and nice kitchen cabinets, and you buy a house of comparable size with laminate counter tops & cheaper cabinets, then with a little remodeling to get the house the way you want it, you can easily raise the value of your house. E.g., let's say you're in a neighborhood of $250k houses, but there's a house that hasn't been updated at all in 40 years. You might be able to get it for $190k, put 30k into it, and have a house that's now worth $250k. But, if you buy the $250k house and put 30k into it to get it the way you like it, you'll be lucky if you can get $260k for in that neighborhood.



OP: remember, unless there's a lot of competition on a house, you can always raise your offer. It sucks to make an offer, have it accepted almost immediately, and realize, "I offered too much."

Also, from my experience - if there's a close house to yours that's rented out, forget about it. You have no control over the tenants. And, they don't care as much about the neighbors, as they realize they're only temporarily in that neighborhood.

 

[BoberFett]

The most important thing I would recommend to a first time buyer is to go small. Keep your payments low, meaning you keep your interest paid low, and build as much equity as possible. You can roll that equity into moving into a bigger house someday, you don't have to start in a McMansion.

 

[Skel]

Using a real estate agent was a huge mistake every time I've ever done it. When I went through the process on my own, it was WAY smoother and WAY less costly. Regardless of the bullshit anyone tries to feed you, you and the seller are both paying for the agents.

I actually bought my first home without one and everything went great. I have no idea why I decided to use one on subsequent transactions, but I'm back to not being a dumbass. They literally add no value if you can think your way out of a wet paper bag. I guess I should also consider that some people are rather stupid and may need help from someone who is only marginally less worthless, but the fact that you're asking for advice up front means you're probably smart.

Also, SandEagle is right - don't use recommendations from an agent or a broker unless you independently arrive at the same decision through research or a recommendation from a person who doesn't have a hand in your pocket. Kickbacks for recommendations are both extremely common and directly in opposition with your best interests.

The best piece of advice I can give you is to relax and realize it's just a house. You've been fine so far without it and you'll continue to be fine if you don't get the one you think you really want. People get caught up in the whole ordeal and think they're missing out on a dream if a particular house doesn't end up in their possession. Don't let anyone pressure you into buying a house if you aren't 100.000% sure it's exactly what you want in the location you want at the pricepoint you want at the terms you want.

This is the single biggest thing I didn't understand until multiple transactions. YOU are in the driver's seat, but everyone throughout the whole process will be trying to drive from the backseat. If you don't like something, put your fucking foot down and make sure people know they aren't going to get their way. I'm being slightly abrasive about this for a reason; experience has led me to understand how the whole system really works. Almost no one involved has your best interests in mind, but they're all masterfully trained to make you think they really care and their number one priority is you. It's absolutely the opposite.

Great post... if you do use a agent do not be afraid of firing them at the drop of a hat. I went through 3 of them when I bought my place. Not because I'm an asshole, but because two of them seemed to forget the things I would say... like how much I wanted to spend. The first one was recommend by my mortgage broker and assumed that because I was pre-approved for a huge amount meant I needed to spend every dime. The second wouldn't listen when I told her where I wanted to live. She kept attempting to steer me to either a much higher priced area (again that pre-approval thing came back up) or to some really crappy areas to attempt to convince me that I should go with the really pricey stuff. Once the third one learned I fired two before her for not listening I magicly found my place, which was exactly what I wanted.

 

[mazeroth]

I'm possibly going to save you thousands of dollars posting this. Seeing how you're in Cleveland, there's a bank called Union Savings Bank that has, by far, the best mortgage rates and fees around, period. My friend is a mortgage broker and he can't even come close to their rates. I paid about $350, total, to refinance my house a little over a year ago. The next best rate I could find, for the same interest rate, was about $2500 in costs. They're the largest writer of mortgages in Ohio last year and are not required to buy title insurance, and they hold the loan for the life of the loan. I know there aren't any around you but please call one closest to you and see if you can use one of their loans:

http://www.usavingsbank.com/officelocations.aspx

 

[LucJoe]

Using a real estate agent was a huge mistake every time I've ever done it.

The problem as a buyer is, most homes you will be interested in already have a Seller's Agent involved. The Seller's Agent is already going to take a 7% cut. If you have a Buyer's Agent, they get half of that. If not, the Seller's Agent gets all of it. So you might as well make use of a Buyer's Agent even if they only make your life marginally easier.

Exceptions to this seem to be houses for sale by owner, and the rare "Rebating Buyer's Agent" who will give you a piece (or most) of that 3.5% as long as you don't make them do too much work.

source: Never bought a house, but this is what I found when I looked into it.

 

[mazeroth]

Don't buy a home with a basement.

Terrible advice. I couldn't live in a house without a full basement. My next house will likely be a large ranch with a full basement that I can finish. Where I live, finished basements do not count towards your total square footage which affects property taxes. Here, property taxes are about 2.5% home cost. So, $7500 for a $300k home. What that allows me to do is purchase a smaller house but finish the basement and save thousands of dollars per year on property taxes.

I also echo everyone else's sentiments on garage size. Get the biggest garage you can afford, period. I have a 2-car that is 4 feet deeper than standard and I would love to have one twice as big.

 

[JManInPhoenix]

Lot of good advice already posted. My biggest mistake was listening to my ex-wife and buying a house I didn't feel we could afford.

Turns out I was right and that is one of many reasons is she is my ex-wife

 

[BoberFett]

The problem as a buyer is, most homes you will be interested in already have a Seller's Agent involved. The Seller's Agent is already going to take a 7% cut. If you have a Buyer's Agent, they get half of that. If not, the Seller's Agent gets all of it. So you might as well make use of a Buyer's Agent even if they only make your life marginally easier.

Exceptions to this seem to be houses for sale by owner, and the rare "Rebating Buyer's Agent" who will give you a piece (or most) of that 3.5% as long as you don't make them do too much work.

source: Never bought a house, but this is what I found when I looked into it.

Quite a few agents will also refuse to deal with buyer's who don't have an agent, because frankly most buyer's are idiots. The seller's agent knows that when dealing with a buyer whose out to save money by not having an agent, that they're going to end up doing the work for both the seller and the buyer, again, because most people are idiots.

And in most (if not all) states there are regulations around dual agency, and if the buyer does not have an agent then the buyer may be de facto represented by the seller's agent if they do ANY of the work that would have been done by the buyer's agent. In the event that there are problems with the transaction, there could be trouble for the agent in the case of dual agency.

If you want to save money by not having a buyer's agent, become an agent yourself (it's not difficult) or buy a FSBO. Don't be that asshole who thinks they're going to get a deal and make everyone's life miserable.

 

[WiseUp216]

I'm possibly going to save you thousands of dollars posting this. Seeing how you're in Cleveland, there's a bank called Union Savings Bank that has, by far, the best mortgage rates and fees around, period. My friend is a mortgage broker and he can't even come close to their rates. I paid about $350, total, to refinance my house a little over a year ago. The next best rate I could find, for the same interest rate, was about $2500 in costs. They're the largest writer of mortgages in Ohio last year and are not required to buy title insurance, and they hold the loan for the life of the loan. I know there aren't any around you but please call one closest to you and see if you can use one of their loans:

http://www.usavingsbank.com/officelocations.aspx

Thanks for this. :thumbsup: I will look into it. The closest office is in Columbus but if it saves enough money, it could be worth it.

Also, from my experience - if there's a close house to yours that's rented out, forget about it. You have no control over the tenants. And, they don't care as much about the neighbors, as they realize they're only temporarily in that neighborhood.

This is something that we've talked about numerous times. We are completely avoiding living near rentals. Ideally, we want at least 0.50 acre between us and the nearest neighbor. We have around 8 prospects to visit in the coming weeks.

Side note, DrPizza: I remember showing my girlfriend your apple cider video and your property is basically what we dream of. Someday!

 

[WackyDan]

Do not let your wife get emotionally attached to the house or neighborhood before, or during the offer/sales process.

+ Make sure the seller actually owns the property. Our house was still in the names of the seller's dead husband and his business partner. We found her in breach of contract and forced her to hire an attorney to clear the title work.

 

[MustISO]

We bought our first home back in 2000. It was new construction so we got to choose all the options, finishes, flooring, etc. We knew it was the right house for us 5 minutes after seeing the model.

Regrets:
Didn't pre-wire for everything
Didn't get all the bump-outs (larger rooms)
Didn't get higher grade finishes, flooring

Buying new for us was easier than resale, we were just never happy looking at resale. I can imagine it would be really hard to find something that meets all your needs when you have so many options available.

 

[Red Squirrel]

My biggest mistake was fixing too much stuff right away. Ended up having to take a second loan and only place I could get approved was Citi, which is basically a shark loan place. 30% interest or something like that. It worked out ok in the end and I don't actually regret it now, but it's just something to consider. It's easy to get carried away with pre-move renovations.

New kitchen, new bathroom, new paint throughout entire house, refinished all hardwood floors, + tons of other fixes like mold removal, electrical etc... Adds up quick. On the other hand, it would have sucked to do those things while living here, too. If say, you really want to redo the floors, you are better off doing that before moving in so it's empty.

My suggestion is put the minimal down payment, keep your money as you'll probably end up needing it. You can always put a chunk on the house after you are settled in.

And the obvious: get a home inspection! Also, it does not hurt to inform yourself on construction stuff before, so you can also do your own basic inspection while looking at houses. Like if you see what looks like water damage then perhaps there's a real problem. Touch it to see if it feels wet. Little things like that.

If you see too many of these little potential problems then you know it's probably not worth putting an offer.

Also don't settle on a bad location because you like a house, but at same time, don't settle on a total money pit because you like the location. I've seen some very badly built houses with sketchy foundations I would not want to live in. Heck one of the houses I was looking at had a big puddle in the basement. Not a very good selling point. :awe:

 

[Reasonable Doubt]

interesting thread

 

[MagnusTheBrewer]

Check for proper grading around house. Get utilities marked because, you'll need to know where they are most likely sooner than later. Open floor plans suck due to noise and cooking odors / grease.

 

[RockinZ28]

I'm possibly going to save you thousands of dollars posting this. Seeing how you're in Cleveland, there's a bank called Union Savings Bank that has, by far, the best mortgage rates and fees around, period. My friend is a mortgage broker and he can't even come close to their rates. I paid about $350, total, to refinance my house a little over a year ago. The next best rate I could find, for the same interest rate, was about $2500 in costs. They're the largest writer of mortgages in Ohio last year and are not required to buy title insurance, and they hold the loan for the life of the loan. I know there aren't any around you but please call one closest to you and see if you can use one of their loans:

http://www.usavingsbank.com/officelocations.aspx

Thx. Will give them a call once I find a house. Looks like they have an office within 40 minutes of me.