So, we're going to look at at a house.

[katespade]

We found a listing we really like, so we're setting up a time to go and look at it!
What do we need to pay attention to when we're walking through it the first time?
If we like it, how do we decide if we want to make an offer and how much we should offer?
I am suddenly realizing that we have no idea what we're doing. Help!

[estrellita]

We did a quick walk through the first time at each house to see if we generally liked it. We looked at the layout, number of bedrooms and bathrooms, general condition, yard, etc. We didn't look super in depth but tried to keep note of any potential issues like water spots, not so great looking roof, etc.

Some we went to look at again and we usually brought FIL because he knows a lot about construction. He's the reason we didn't get one we liked. It had some major structural issues we didn't notice the first time. I was sad but very happy we wouldn't have to deal with that in the future.

The first house we offered on we only looked once but we totally low balled, lol. The second one we offered on (the one we got) we decided for sure the second time. We wrote up the offer right there at the house with our realtor and had him submit it. If you don't have a realtor, I would guess you would contact the selling agent.

We considered the things we needed to do when we came up with our number. We offered about 3k under asking, plus closing (most sellers assume they'll pay closing), and a warranty on the appliances. He countered about 1k under asking but agreed to everything else. There is a lot of paperwork but a realtor should help explain it all.

After the offer is accepted, there is usually inspection and then you decide if there is anything else you want to ask for (we asked for some electric work, to replace the broken microwave, and a few other things). Once that's decided there is appraisal to determine if the house is worth what you're asking to borrow.

That's our experience with it at least! We're still in the middle of it if you have questions

[katespade]

estrellita - Thank you! That is great information! I'm glad to hear that it's common to ask the sellers to pay closing costs, because that is our plan when we do find a house to make an offer on. We don't have a realtor yet, so we're using the selling realtor to view this one. Our broker did give us a realtor recommendation, though, so if this one isn't the one I'll be reaching out to his recommendation to use moving forward.

[bk1]

This is so exciting.


We bought the second house we looked at. So I'm by means no expert.


I knew this was the house right away. We stayed for an hour and walked the house over completely three times during that first visit. We went back the next day with our parents before we made an offer. We went in at 20% under listing BUT our house was a short sale. We settled in the middle. We dealt with buying from the bank, not an individual.


Walk the space and think about how you would use it. How would it feel to go from the laundry room to the bedrooms? How does the layout feel in terms of how you would use it. 

Look for any noticeable damage (water damaged, broken tiles, stained floors, etc.) BUT I personally would take a feel for it, and if you like it sleep on it and go back another day to look for all the flaws.

[estrellita]

I agree with bk1 about looking at how you would use the space. One nice thing about our house is that it was mostly empty so we could figure it out for ourselves. There is a porch type room that's carpeted and we decided that would be E's playroom the first time we looked. We also decided the random room you walk into would be our game room and maybe dining room, we haven't decided fully. It's good to think about where everything can go. Also keep in mind how much work you're willing to do. At our price point we expected some work but I didn't want to do windows, roof, or other really expensive things right away. So if you're willing to do more work you might get something bigger or cheaper but that's up to you.

[katespade]

bk1, estrellita - Any ideas on what is considered a low-ball offer? Is there a percentage point that is the most common? I don't want to insult anyone or throw away an opportunity by making an offer that's too low, but I also don't want to pay more than we should. The asking price on the house we're looking at right now seems pretty fair compared to the others in our local market. It's in our price range so we could pay asking price, but it's at the high edge of our price range so I'd prefer to make a lower offer. Maybe $5k less plus the seller paying closing costs.

[mac08]

Exciting, good luck!  One thing to note is the smell (really, our house had a musty smell that we thought was because the owners were old, but we could never get rid of.  We got used to it, but when we moved we were shocked at how our clothes smelled when we got them into the new place).  Also, if the sellers are still living there, and they are messy or have poor taste in decor and furniture, try hard to look past their stuff to see the potential.  This may sound silly, but the way you feel in the house is really important!  With the right house, you get a good feeling.  

As as far as making an offer, I would see at least a few houses before making an offer on one.  Can you go see a few houses all in the same outing when you look at the one you're interested in?  Your realtor may be able to suggest some that are similar to the one you like.  It will be good just to get some perspective.  How much to offer will really depend on the list price and how it lines up with comps, as well as how the overall market is in your area.  Your realtor will help guide you.

Also, ask your realtor about the seller paying closing costs.  I think it might vary by region as to what is the norm.  Where I live, sellers never pay the buyers' closing costs, so I just would ask what's typical first before you count on that.

[amaranth]

1: If you use their realtor on your first walk through, in some states you're legally required to also use them for the sale as opposed to getting a separate one. That is the case in our state, so keep that in mind for future showings. You should get your own realtor ASAP because the other person isn't really going to advocate for your best interests since they will just want the double commission.

2: Know your instant deal breakers (bedrooms, repairs, etc) and that should make a walk through of a bad house over in 5 minutes. If you both get to the end of the walk through and you think you like it, right then and there walk through every single room again and that time pay attention to anything that would need to be repaired, changed, or that you simply don't like to keep in mind.

3: If you like the house and want to make an offer, try to decide within 24 hours. If you're unsure, feel free to schedule another showing. Second showings are very common, but for fast moving properties you don't always have time.

4: Finally, to determine how much to offer think of both how much the house is worth to YOU (because that's the most important thing, even if someone else thinks it's wrong) and also how it compares to recent sales in the neighborhood. That second number is what your mortgage broker will be looking at when determining whether to finalize your mortgage and insure you. Typically Redfin has a great tool to see what percentage of listing values house are actually selling for (say, 90% of list, or 120% of listing, etc). That can guide you in picking a fair number.

[bk1]

Aug 29, 2015 19:15:03 GMT -5 katespade said:

bk1, estrellita - Any ideas on what is considered a low-ball offer? Is there a percentage point that is the most common? I don't want to insult anyone or throw away an opportunity by making an offer that's too low, but I also don't want to pay more than we should. The asking price on the house we're looking at right now seems pretty fair compared to the others in our local market. It's in our price range so we could pay asking price, but it's at the high edge of our price range so I'd prefer to make a lower offer. Maybe $5k less plus the seller paying closing costs.

It is very location specific. I don't live in an area that is huge high demand. What the comps in the area are makes a huge difference. Your realtor should be able to give you that information.

I would find a realtor and ask about the comps. Take into consideration how long the house has been on the market. That will also give you an idea on if they might be willing to accept a lower offer.

[Deleted]

The others had great advice, so I don't have any to add. I just wanted to say good luck and keep us posted!

[estrellita]

The house we low balled was on the market for 130k and we offered 122k (plus closing so considering that it was really an offer of about 118k) I think it was. It wasn't on the market for a super long time but they had just lowered the price. We were hoping they were super motivated to sell (they were mostly moved out already) but they countered with asking price but they would pay closing. So they weren't willing to work with us anyways. So yes, I agree that the offer should be based on how long it has been on the market (ours was only listed for 6 days when we offered so we went closer to asking), the condition, and the location.

[travelbug]

So much awesome advice. Good luck, keep us updated

[MrsMB]

Ditto amaranth

GOOD LUCK! Have fun!!!

[awick14]

Ask your realtor about the seller paying for closing costs, here that is unheard of. No seller would pay closing here.

From reading these boards though it sounds like a lot of the states do have the seller pay closing though.

Everything else mentioned above would be my advice as well.

[amaranth]

Aug 31, 2015 10:36:20 GMT -5 awick14 said:

Ask your realtor about the seller paying for closing costs, here that is unheard of. No seller would pay closing here.

From reading these boards though it sounds like a lot of the states do have the seller pay closing though.

Everything else mentioned above would be my advice as well.

It's definitely area specific. In our city it was common, but just a few cities over where my BIL bought they thought he was insane for even asking.