Another possible house -- advice?

[Susie]

Last week we looked at a house that was magazine-gorgeous, and in a highly sought after part of town, but not on a great lot (0.3 acre with a weird shape and almost no backyard).  Quartz counters, beautiful kitchen, RH lighting, skylights, coffee bar, built ins... it was stunning.  It attracted 43 showings in the first two days, and got an offer for $600k, after asking $499,500.  So... that was insane.  Two houses down, a very comparable house but less $$$$ finishes, sold this winter for $440k, so the appraisal on that is going to be rough.

This week another house has come on the market that we're interested in.  Slightly less fancy zip code from the one above, but same school district.  It's quite near our current house actually.

We're hopeful that we have a better chance at this week's house.  It's a bit dated, not professionally staged, and not as likely to get that ZOMG response.  It sits on a 0.6 acre lot with no back neighbor.  The house checks the boxes, and we really like the lot.  




* The tree line is protected around a creek bed (dry much of the year), and the development behind has no further expansion beyond the cul de sac in progress that you can see above.  

Pretty much the whole house is this same light gray walls, gray carpet.










It's 4 beds, 2.5 baths, but those pics capture the gist.

Unfortunately, the big thing this house offers (aside from the lot) is a thing that is removable, but that we don't want.  



Above ground pool, decking to go with it, a hot tub, and outdoor showers.  All totally removable, but I hate to effectively pay for a big thing I will definitely rip out.

OTOH... there are exactly 8 houses on this street with yards like this.  Big, deep, and private.  Three of the eight have sold in the last <12 months, so they're unlikely to be available soon.  Obviously this isn't the only street/neighborhood in the school district like this, but over 0.5 acre is really hard to find.

They're asking $430k, which was the sale price last month of another house on the same side/same street.  That house was beautifully updated, no pool.  After we got a showing scheduled (this Fri - first day of showings), they added to the listing that it would be contingent on sellers finding home of choice.

The contingency could take forever in this market!  OTOH... we are kind of ideal buyers for it.  We live nearby, we don't have any external pressure to move, and our agent isn't worried about selling our house at any particular time of year.  Are the pool and the contingency too much?  Am I trying too hard to make this a thing?  Or is this a reasonable opportunity to jump on?

[Velar Fricative]

I don't want a pool either but I would have zero problem ripping out an above-ground pool, especially if the house otherwise checks all of my boxes. An in-ground pool would be the one dealbreaker for me.

It looks like a great house. I personally am not turned off by the need for cosmetic updates, but that's me living in a yet-to-be-fully renovated 1992 house talking (that we've lived in for over 6 years).

My main concern was, if you love the fact that you have no back neighbors...that plot of land looks like something someone might want to build some houses on one day. It still looks far enough that it wouldn't bother me, but I would just go into this assuming it might not be a peaceful plot of land forever.

The contingency wouldn't bother me unless I was in a rush, which it doesn't sound like you are. If you otherwise love the house, I'd put an offer in. If you don't, I wouldn't put an offer in and would continue waiting.

[ssmjlm]

You do sound like the ideal buyer, so I would look and consider.

That said, it's a lot to remove. It looks like there are some pretty mature trees that would need to be removed as well. After living with a crappy backyard in our last house, it can become $$$ removing and filling in all that land.

[purplepenguin7]

I don't usually post here but am also house hunting and running into a lot of the same problems as you. I would definitely put in an offer on this house. You do sound like ideal buyers for the sellers situation. My friend ripped out her above ground pool and it wasn't too expensive (she didn't have the full deck and all this house has). I would probably remove the pool and try and reconfigure or use part of the deck, if that saves any money. You would still have plenty of open yard space.

[expectantsteelerfan]

Fellow house hunter here...while you might be an ideal buyer for their contingency, I still don't know that I would do it. Is there any cap on how long? Can you imagine if it's 6 months or more and they haven't found a house yet? It sounds to me like they want to cash in on the crazy market with things going over asking NOW, without the pressure of necessarily having to buy in that same market.

Personally, I would be ok with having to remove the pool, and I would def. go see it, but I would talk to your agent more about that contingency before putting in an offer. Although, I am learning that even after you make an offer and it's accepted, you can still manage to walk away (possibly without losing your hand money). So it might be worth it to try, if you think you can handle going for it and still having it not work out months from now.

We just went all in on a house, personal letter, offering free rent back for 2 months, and thought we had a good chance of actually getting this one. We put the offer in on Sat. and just heard yesterday we didn't get it. Those 3 days were pure torture. I can't imagine thinking a house is ours but still living in uncertainty while they look for a new house.

[simpsongal]

I'd consider it and go in w/measured expectations (given the crazy state of the market). I know you could make it awesome, and in the immediate future you'd have the space you need, even if it's dated and unpolished.

I think it's got great potential! Let's hope some of the downsides turn other folks off!

[Susie]

Mar 24, 2021 10:03:18 GMT -5 Velar Fricative said:

My main concern was, if you love the fact that you have no back neighbors...that plot of land looks like something someone might want to build some houses on one day. It still looks far enough that it wouldn't bother me, but I would just go into this assuming it might not be a peaceful plot of land forever.

I spent some time looking at maps, because yeah, the privacy of the lot is the big selling factor here.  I think we'd still be happy with the location even if there was some additional development back there.  

In our current house, we have 0.25 acre, and a back neighbor who annoys the heck out of us.  I realize you can get a bad neighbor anywhere, but not having a back one -- that you stare at out the kitchen window -- sure reduces the in-your-face potential of a bad neighbor!  

If we bought this house, we'd own all the way back to the creek bed, putting a good deal of distance between our actual house and any back neighbor.  Any back neighbor would also have to be set back from the creek bed similar to how we would be, because the creek bed is wetland.  That would put our actual houses pretty far apart, plus those trees provide much better screening in summer.  I think it would still accomplish the goal of space, even more than just the fact of being on 0.6 acre (vs. current 0.25) would provide.  

I also don't see how they could expand that neighborhood further.  The cul de sac that's being built was a predictable expansion from what is a dead end on maps, but there are no other access points for additional development like it.  The outermost street of that neighborhood is now fully developed with no space to extend a road into that field.  Who knows for the future, but it's not immediately apparent how they'd develop that relatively land locked field.

[Susie]

expectantsteelerfan, I just got off the phone with our agent about it.  I had a lot of the same worries you mention, about being on the hook indefinitely.  She said we would offer them a specific period of time to find their house, she said 30, 45, 60 days might be typical.  If they didn't find it in the contracted time period, they could ask us for an extension, and we would have the choice to grant it or take back our earnest money and walk away.  I can't imagine the market will change too drastically in that kind of time period so that seems reasonable.

She also said we would not do inspection, mortgage application, or list our house until they find theirs.  So the risk to us is primarily opportunity, rather than financial exposure.  Worst case scenario is that we go into contract, wait and wait and wait, and they either have a purchase that falls through or don't find something, and we've missed out on anything on the market in the meantime.  It would suck, but we would not be homeless or in a financial lurch.

We will keep doing due diligence (especially on the field thing mentioned above) but this seems like the kind of risk we can afford to try taking if we like it on Fri.  

[libbygrl109]

The pool would be easy to take down. You'd just want to consult with an electrician about what you want to do with the wires to the pump. The deck looks like an add-on, which may not be too hard to remove.

If they are selling because of the market, perhaps they're looking for something at a higher price point, which may have more of an inventory right now? If you really love the house, and there is a good possibility that you could walk away within a reasonable timeframe, go for it.

[aprilsails]

Yeah you could rip out that pool in a weekend if you wanted to. We pulled out our above ground pool in a couple of days, including a massive deck that was built all around it. You would just need to figure out what you want to do with that space.

To be honest, when we moved into our last house we did not want that pool. In the end it was my favourite feature and the death of the pool led us to look for new housing. We could have replaced it, but we wanted a bigger pool and the lot was too small with trees starting to block the afternoon sun on the neighbours lot.

[hbomdiggity]

I wonder if you could also offer them a rent back which would give you more certainty in terms of time frame.

[bee20]

You have been looking for a long time and this is the most positive you have sounded about a house that is actually in your price range.

The pool and decking wouldn't bother me. The deck you can leave in as an entertaining space and still have tons of space for dogs and kids to run around. You could of course also pull it out, but it would be nice to have for summer entertaining. 

I really like the lot and privacy, and that's something you can't change.  You can choose to make updates but you had already mentally planned on updating your current house so I don't think that's a huge deal.  The contingency gives you a leg up in a really hot market and might keep this house at a more comfortable price for you. 

I say go for it!

[expectantsteelerfan]

Mar 24, 2021 13:08:16 GMT -5 Susie said:

expectantsteelerfan , I just got off the phone with our agent about it.  I had a lot of the same worries you mention, about being on the hook indefinitely.  She said we would offer them a specific period of time to find their house, she said 30, 45, 60 days might be typical.  If they didn't find it in the contracted time period, they could ask us for an extension, and we would have the choice to grant it or take back our earnest money and walk away.  I can't imagine the market will change too drastically in that kind of time period so that seems reasonable.

She also said we would not do inspection, mortgage application, or list our house until they find theirs.  So the risk to us is primarily opportunity, rather than financial exposure.  Worst case scenario is that we go into contract, wait and wait and wait, and they either have a purchase that falls through or don't find something, and we've missed out on anything on the market in the meantime.  It would suck, but we would not be homeless or in a financial lurch.

We will keep doing due diligence (especially on the field thing mentioned above) but this seems like the kind of risk we can afford to try taking if we like it on Fri.  

That's definitely more understandable then.  Another consideration...if you don't do the mortgage application now, you'll be subject to the changes in the interest rates.  Like one of the posters said below, it might make more sense to offer rent-back to them.  You would lock in mortgage and close in a normal amount of time, but then let them stay for another set amount of time (and they could pay you, or you could offer it for free if you want to sweeten your offer if you can afford it).  But they may not go for that, so it's a risk to offer that instead of their contingency.  

[sonrisa]

I think that house sounds fantastic. Good luck! (And taking out an above ground pool seems super easy compared to other issues, so it would bother me at all, nor that contingency if you aren’t pressured to move)

[dutchgirl678]

I really like this one and see lots of potential for minor updates inside. I would go for it with the option to rent back for a few months to give them time to find another house.

[nicolewi]

I think it looks good! Why wouldn't you keep the pool? Just curious. I wouldn't put it in, but as long as it's there...seems like a great gathering spot for parties.

[aprilsails]

Mar 25, 2021 12:14:54 GMT -5 nicolewi said:

I think it looks good! Why wouldn't you keep the pool? Just curious. I wouldn't put it in, but as long as it's there...seems like a great gathering spot for parties.

I would suggest you try it out for a year before you rip it out. We had access to cottages and such too and we still loved our little above ground pool at the last house. It honestly cost us at most $1200 to operate and maintain over the course of 8 years and we got a lot of enjoyment out of it until it died a pretty definitive death. Especially with the way it is well gated off I don’t consider it to be a hazard for the kids. Our old one was very similar.

[Susie]

Mar 25, 2021 13:19:57 GMT -5 kellady said:

I wonder if you could offer it for free to anyone who wants to come get it.    
  

Definitely, I was thinking of doing that! Especially during covid times, I know a lot of people are super into it.

For myself... hard no.  This is going to sound weird but, I don't know how to play or relax in a pool, and it's not an interest I desire to cultivate.  I have swum competitively all my life, and what I do in pools is yards.  You really can't do that in a round pool.  I also spent enough of my pre-professional life lifeguarding (and doing pool maintenance) to know that I don't want to own one.  Plus I don't care for the above ground aesthetic, and when I want a pool, our town (which both our current house and this house are in) has a fantastic pool complex, with a splash pad and like 3-4 pools for different activities/interests.  I would 100% rather go visit the town pool with the kids, and come home to a fire pit in the center of the circle where that pool is!

[Roc A Bee]

I honestly would keep the pool at least for a summer to see if you like it.

But even with ripping it out, I’d offer on the house. I would also probably keep the deck closest to the house and jacuzzi too.

[ellipses84]

It sounds like an amazing deal! I’d definitely put an offer in and maybe not be that aggressive with $$ since you are willing to deal with their contingency (in a market where things are going so high over asking). Get a really thorough inspection. The pool is NBD to me. I probably wouldn’t ask them to do anything about it because people can be weird about stuff like that, but I’d had no qualms about tearing it down, offering it for free to someone who will come get it, or paying a few hundred bucks for someone to demo and haul it away.

[icedcoffee]

That house looks great! Personally, I’d keep the pool for at least 1 year before getting rid of it. With DS so little it might be nice to take DD swimming while he naps inside. Less schlep.

The house looks like it has great bones though. Kitchen especially.

[Susie]

We're putting an offer in today, $450k with 60 days on their contingency.  Asking was $429,900.  They say they are not taking any offers until 5pm tomorrow after the open house, at which point it'll assuredly be a 'best and final' situation.  The house looked fairly packed up when we saw it yesterday, which felt like it boded well for their motivation level to move/satisfy the contingency.

I really want the lot, but I think even $430k asking was on the high side (given that it needs updating) so I think paying more than $450k would be a bad financial move.  We'll see how it goes!

[expectantsteelerfan]

Good luck, I hope you get it!

[Pom]

Good luck!

[Susie]

omg, we got the house! I seriously can't believe it.

I am sure there will be lots of house questions upcoming!  lol.

[scm1011]

Yay, so exciting!

[aprilsails]

Congratulations!!! It really looks like a great place.

[maudefindlay]

Susie, congrats! I hope you will share progress photos and updates along the way.

[icedcoffee]

Omg yay! Excited for you guys!

[icedcoffee]

Are you keeping the hot tub?