House hunting - what would you take in this case?

[easjer]

SFIE and I are avidly looking for a house (townhouse, really). Thanks to the great suggestions and references given to us last week, we've found a mortgage broker that we are very happy with and have been prequalified for the amount we're looking to buy in, and are wrestling with the 30-odd pages of loan application. :oops

So, we viewed a townhouse last weekend and loved it. The area is perfect for us - no added time to the commute, near our current neighborhood (so no need to find a new gym, or grocery store, etc). The complex the townhome is in has a very low HOA fee, and the HOA is responsible for all exterior work, including roofing, foundation, siding, carports, landscaping, trash removal and pool maintenance. Nice neighborhood, well maintained, and new construction is supposed to raise property values - the area is undergoing a city revitalization.

The home we looked at is a 2 bedroom with hollywood bath and half bath down stairs (meaning, upstairs, two separate vanity/toilets sharing the same shower/tub unit - like a full bathroom with two half baths). The guy who owns it is a designer and he's put a lot of work into the place - changed out the standard ceiling fans for decorative fans, changed most of the lighting, installed matching bathroom fixtures, installed a new water heater and upgraded the air conditioning unit, upgraded the flooring in several rooms, installed plantation shutters on all the windows (important, since the living room features two story windows) which are expensive as hell and are great for energy efficiency. We're not in love with all his color choices, but would only have to paint a couple of rooms. The guy is including all appliances, as well as washer and dryer. He has paved the concrete on the huge patio with stone, and added flower beds and plants that are staying behind. We loved the flow of the house and agreed we could both see ourselves living there. We had a great rapport with the seller. Basically, the guy has decided that he doesn't want to move until August, and has taken the house off the market, but offered to sell to us when we wanted in August (which works better for us, actually). That was initially our plan, but there are other units in the same complex for sale that we are looking at.

We've found a 3 bed, 2 full and 1 half-bath in the complex for about $8000 less than the above. We're going to see it tomorrow. From the listing and pictures, it appears that there are no upgrades to the interior (meaning LOTS of painting to do, and possibly lighting/ceiling fan issues, since we cannot tell the upstairs has any fans), a very different layout, nothing done with the patio, unless one counts the tree in the center of the patio (which, wtf?) and the mold/mildew on the fence near the air conditioning unit, and w/d and refrig. are NOT included.

We don't have a lot of cash on hand, so closing costs are something of a concern (well, we can roll them into the mortgage, but I'd prefer not to if we don't have to), but so is any really serious outlay of cash upfront (as would be needed for a fridge). However, we are talking about an $8000 difference in price and an entire extra room and bathroom on the less expensive one. We are planning to be in this home for some time, and will be having at least one, but possibly two children there.

From what you've seen (and sorry, I can't post pics right now - no access to one set) me describe, what option would you be most likely to pursue?

[pache100]

If you are planning on having two children, I'd go for the 3-bedroom plan if it's not too bad. The other (smaller) one sounds nice, but there is no guarantee that your children will be the same sex, and if you plan on staying in this place long-term, you would want a bedroom for each if they are not. Besides, it might be more interesting to get a place that not much has been done to, that way you can personalize it to your own tastes. As long as it's liveable, you can do things as you have the time and the money available. Some of it, you can probably even do yourself. They offer classes on many home-improvement projects at Home Depot, and it's surprising how simple some things are to do. That's just me, though.

P.S. I have a friend who lives in Houston who just moved out of a condo and in with her son's family (she's retiring sometime this summer and moving back home to Missouri); she is also a realtor, coincidentally. I have seen three different Houston condos/townhouses she's lived in since I've known her and I have to say there are some really nice townhomes and condos available for sale in Houston in gated communities - all price ranges. San Antonio doesn't have nearly as much available in this genre for sale, mostly rental properties. The properties in San Antonio that are available to purchase are high-end, not as much price variety here.

Good luck, easjer and sfie!

[ObiwanGinobili]

I have 2 kids in a 2 bed 2 bath flat.

TRUST ME.

go for the 3 bedroom and the saving the 8k. Fixing up your home hte way you liek it is a perk. Painting/updating can be regualted to a series of weekend projects.

[easjer]

That's part of the reason we are looking at townhomes/condos instead of houses - we can stay in our part of the city within our price range (for the moment) and not have to worry about nasty Houston issues like foundation repair or siding replacement with the moisture in the air. And we know we'll be able to resell it - there will always be new professionals, young couples like us, or small families that want to own, but don't have the $ or the inclination for a house. And if the management company does its job, then the property values won't decline, and you don't have to worry about exterior issues when selling.

With the way Houston continues to trend outward, right now, we'd have to buy in Katy to get something decent for our price range (if we wanted to stay on the West side, which we do, given how frequently we travel back to SA). Already, the move outwards can nearly guarantee me a rise in property value when we are ready to sell.

[Vashner]

Does it have swimming pool access? :)

[easjer]

In running the numbers for the mortgage, $8K isn't that much in savings, especially depending on how much we'd have to do to make it livable. So we really need to see it to make a better decision.

Have to add that the realtor selling the place is not high on my favorites list. The pictures they have up of the 3 bedroom are terrible. Bad angles, don't show features that might be necessary (like closet space, flooring, lighting). Repeats pictures. Was condescending to my husband when we set up the tour time. Ugh.

[easjer]

2 pools in the complex - the first property is right by one of the pools, don't know about the other. :spin

[Vashner]

Sounds like you know what you want...

People are closing right now to lock in those rates. And because Greenspan still likes to get drunk and go to those speeches and talk shit (worsen economy).

LOL He just can't shut up..

[SpursWoman]

If you are planning on having two children, I'd go for the 3-bedroom plan if it's not too bad. The other (smaller) one sounds nice, but there is no guarantee that your children will be the same sex, and if you plan on staying in this place long-term, you would want a bedroom for each if they are not. Besides, it might be more interesting to get a place that not much has been done to, that way you can personalize it to your own tastes. As long as it's liveable, you can do things as you have the time and the money available. Some of it, you can probably even do yourself. They offer classes on many home-improvement projects at Home Depot, and it's surprising how simple some things are to do. That's just me, though.


Trust me on this one ... I'm living through this hell right now, and have been for the last year. Everything is a minimum 3 times more expensive than you budgeted for, there will be obstacles around every turn, you'll find that you have far less free time than you think you do...and after working a full week, most of the time you're just too damn tired to do the work you were wanting to do on the weekend...and sometimes the novelty just wears off right in the middle of things and you're left with either a half-assed job or a gigantic mess.

That's real-life, mine at least (:lol), so make sure you consider these things, too, if you're considering a fixer-upper.

[Ocotillo]

Trust me on this one ... I'm living through this hell right now, and have been for the last year. Everything is a minimum 3 times more expensive than you budgeted for, there will be obstacles around every turn, you'll find that you have far less free time than you think you do...and after working a full week, most of the time you're just too damn tired to do the work you were wanting to do on the weekend...and sometimes the novelty just wears off right in the middle of things and you're left with either a half-assed job or a gigantic mess.

That's real-life, mine at least (:lol), so make sure you consider these things, too, if you're considering a fixer-upper.

The woman speaks the truth. It is dang tough to find time to everything when you have a full time job. Add to the mix the standard care of a home like housekeeping, lawn maintenance, and things that may break in an older home, it's hard to make time to do that stuff and get any recreation or rest.

[easjer]

One of my concerns is that we won't have the money available. Time, maybe, but money . . . I've run the budget and we will be just fine, and put a decent chunk into savings each month and have a built in buffer in every area, but I don't know that we truly will have a lot of extra to spend on the house, especially when it won't be a huge difference to our monthly payments.

I like fixing things up, but I am leaning towards the first property (even if it's smaller) because we haven't got the cash. Even if we didn't do things there right away that I'd like to do (tile the kitchen, replace some of the flooring), it would be immediately livable and comfortable. Whereas with the bigger one - we would have to get a fridge right away, and it would be awhile before we got a w/d (which is ok - except we'd have to drive our clothes to a laundromat and that's a PITA).

I guess it feels like there is plenty we can do to make the smaller one ours that would be less expensive and require less effort up front (like changing the door handles or adding pulls to the cabinets). And there are some nice touches that would play well on resale - like the silk wallpaper in the bathrooms and the plantation shutters. I can't stop raving about those - seriously. Energy efficient, take nice care of the problem of window treatments for two story windows, and built in boarding in case of hurricanes - love.them.

But it is $8,000 more, on the upper limit of what we feel we can afford to buy, and I don't think the owner will be putting much towards closing costs. So we see the other place tomorrow (and try to set up a tour for the third place in the complex that is for sale) and see how good/bad it is. If nothing else, maybe it gives us some leverage with the first seller.

This home buying thing hurts my head. A lot.

[SpursWoman]

Everything is very expensive ... and having to save up over the span of a couple of months to be able to afford to complete one little project is frustrating. Because in the interim, nothing is getting done.

And I'm speaking solely of my own experience and the overwhelming amount of work that has been done, is in the process of being done, or can't be done until something else is done. I own the original Money Pit. :lol

[ploto]

Are you sure you are ready to buy now? Your story makes it sound like maybe you should save just a little bit longer. Just my two cents.

[Carie]

First, I'd love to see the floor plans if you have access. You can tell a lot about a place based on the floor plans.

Second, what do you do if the place that you love falls through in August?

I'd lean towards the smaller one. There's something about living in an apt (which I'm sure you know) and not being able to personalize it that makes living in a homey place that much more appealing. Take this with a whole bucket of salt because I don't have any children, but I don't see the problem in letting kids share the same room until they are 4 or so. Assuming you get knocked up tomorrow, and then again 6 months after you give birth...that's 6 years for you to move. How long is long term for you?

[SpursWoman]

My son & daughter shared a room until they were 7 & 8 ... I wouldn't go any longer than that unless absolutely necessary, though. :lol

But they co-habitated just fine, they don't have to have their own room when they are still toddlers. :)

[ducks]

you could also get a home improvement loan and then have money to fix it up
take out a 8 thousand dollar loan and fix it up.

[ShoogarBear]

The other thing to consider is potential resale. Do you see yourselves living in either one for 15-20 years, or do you see it as a 5-year bridge to the "real" house.

If you're talking about long-term, then buying the bigger cheaper house may be the move. If you put time into it ove the years, it may end up with the bigger resale value of the two.

If you're thinkg more short term, then unless you're really energetic and organized I would go for the house you need to do less work on.

[easjer]

Definitely not a 15 year proposition, because I will kill myself if I have to live in this city that long. More like 5 year.

[ShoogarBear]

If you're only going five years, then number of bedrooms and spaces will usually be less of a concern.

All other things being equal, I would go with the one that you think has the higher projected profit on resale, factoring in the amount of time/money spent on fixing-up and maintenance.

[ObiwanGinobili]

My son & daughter shared a room until they were 7 & 8 ... I wouldn't go any longer than that unless absolutely necessary, though. :lol

But they co-habitated just fine, they don't have to have their own room when they are still toddlers. :)


yep.
I shared a room with my brother untill I was seven and he was five.
My two girls are sharing until lthey are 10 and 11.
I dont; care if we get a house with 18 bedrooms- they are sharing! :fro

I want a 3rd bedroom as a playroom/office/guest room.

god sometimes It is so cramped in here!
something to think about easjer.

[Vashner]

I was sold at the pool :)

[Nbadan]

I'd take the bigger condo and do $8 thousand in improvements. There are no verbal contracts in home sales, so unless you have some type of written guarantee that the owner of the smaller condo is going to sell in August, he could back out again. Besides, from a resell point, the smaller condo is probably maxed out, so your not gonna see as big a jump in value as you would with the fixer-upper larger condo.

[SpursWoman]

I'd take the bigger condo and do $8 thousand in improvements.


Out of pocket money is of concern....it's not that simple. :lol

[xrayzebra]

One little thing to remember, when you have all the appliances already in the house
and they are part of the sell, you are going to be paying for those for the 20 to 30
years the mortgage runs, even after you replace them. You can buy a decent
fridge for less than 500.00 and a washer and dryer set for around 650.00, and I am
talking brand names. You can get the 27 inch washer/dryer combo (stacked) for
about 750.00. Paint is not expensive if you will shop and check consumers guide for
their recommendations. Interior paint is just that interior and doesn't take a beating
like exterior and usually "cheap" paint will last and look good until you decide to
repaint anyhow. The little stuff makes a paint job look good, like removing door
knobs and light fixtures, covers, so forth and filling the cracks. What I am saying
and like some poster before said, you have no guarantee the guy with the
decorator condo is really not going to change his mind again and stay. He can
always back out and just return earnest money and walk. Really no draw back,
as I am sure you don't want to go to court over the place. Look some more, two
places are just two places. Look at zillow.com for comparisons. You normally
have 60 days after approval of mortgage to get something under contract. Anyhow,
good luck and enjoy hunting.

[CharlieMac]

Trust me, get more than one bathroom.

[Nbadan]

Out of pocket money is of concern....it's not that simple

It depends on the appraisal. If it appraises high enough, banks will lend you more money than you are paying for the condo. This is how those late-night real estate scams work, you know, 'I just bought this condo, and walked away with $20,000!!'

[SpursWoman]

That's kind of the way I just paid for my new a/c & duct work....it's called a home equity loan, basically, or a refinance/finance with cash out. It's not a scam, you still have to pay the mortgage. :lol

But your mortgage payment is going to be a lot higher, too. So doing something like that would depend on your comfort level, and assuming that someone is selling their home that far under market value, because you can't borrow against 100% of your equity.