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House hunting- What would you do


caitlinsmom
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My dh got an amazing job offer last Friday. The best thing is we get to stay right where we are! YAY! I am so glad that we don't have to consider Texas anymore lol. I know the heat would have killed me.

 

We are finally able to start looking for a house. In our small town of 400 we have 5 options to choose from. 2 are out of the question due to the price. Of the other 3, only 2 are viable options.

 

House 1: At the top of our desired price range. Lots of living space, garage, greenhouse and mature landscaping. Lots of potential. Move in ready. Smaller acreage than we want. Late 70's construction.

 

House 2: CHEAP! foreclosure on acreage we want. No landscaping or fencing. Needs painting and possibly some flooring to be move in ready. Small living space and no garage. Cheap! Lots of potential to gain quick sweat equity. Manufactured home, only 5 years old.

 

 

We do not want to move from our tiny town as we are quite comfortable here. Surrounding areas are much more populated and expensive so they wouldn't be a good fit for us anyway. I don't know if I want to go to the top of our price comfort zone (still lower than approved amount) but I also don't know if we want to buy a Manufactured home. Manufactured homes retain value in this area but in my experience construction is generally not very well done. We have no problem putting improvements in either house. We have lots of materials left over from a previous remodel so the cost would be fairly low at this point. I like the idea of the garage and living space in option 1 but the outdoor space for kids and animals appeals to me in option 2. The difference in land size is .25 acre. I like to garden so the greenhouse calls to me but the options for a large garden at option 2 sounds great too.

 

So knowing those few details, which house would you pick.

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The difference in .25 acres really isn't much. I'm coming from a background of "it's not acreage until you're talking 50+ acres". I would go for the move in ready.

 

 

Someday I will own 50+ of acreage. :) This area is surrounded by your type of acreage that can't be subdivided or divided (thank goodness!!) so these smaller acreage plots are highly coveted. Last week in church someone said "I know it sounds so bad but it's kind of nice that the elderly are starting to die. Now we get fresh faces in town." Good thing I wasn't drinking anything. I would have spit it through my nose.

 

The extra .25 adds quiet a bit of value because of the areas zoning restrictions. That said I do lean towards the move in ready house anyway. :)

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I'd probably go for #1 as well.

 

The woodstove thing -- do you have cheap and easy access to the wood? Does someone mind hauling and chopping it often? We heat part of our house with wood (outdoor furnace), and it does take some dedication. (And there are some hidden costs, namely that we have to keep a truck that we otherwise could sell, so that we can haul firewood with it.) Worth it, especially since our other option is oil, but it's definitely not as low-maintenance as calling the oil company and writing a check.

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You can't wait for something that's a good fit all around?

 

I'd pick #1 if you must make a choice now and it is long term affordable for you. I would expect the quality and upkeep to be quite a bit better. You might find the costs even a bit when you take that, and what may well need to be done to the foreclosure, into account. The biggest thing for me would be the size. I wouldn't want too small--I'm doing that now and if it weren't temporary I believe I would have buyer's remorse.

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Do they have to disclose home issues on a foreclosure or is it 'buy as is'? That would play a part in my decision as well. Hidden issues are no fun, and I imagine there might be several on a home you can already see needs lots of work.

 

Has #1 been on the market a long time? Is there a chance you can negotiate down the price if the seller is determined to sell? I hate the idea of taking advantage of people but that seems to be the norm in a buyers market.

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We checked out home #2 again yesterday. Honestly the price is what interests me here. The listing price is 70k less than what it appraised at 2 years ago. Obviously there has been some damage but it is all cosmetic at this point. Dh used to be a home inspector so he went it in ready to tear it apart. :) Other than the cosmetic issues (carpet and paint) and a poorly installed drip edge/gutter the house was totally solid. I was surprised to be honest. The foundation is in great condition as is the roof which are nig concerns for me. The house also qualifies for some special type of loan to repair the issues since is it is listed through HUD. It is insured which had some sort of importance for financing but I can't remember what now. HUD has already done the appraisal so we wouldn't have to do that.

 

House #1 we couldn't get into again yesterday. I want to look at it more closely.

 

After looking at #2 yesterday I was ready to make an offer. The price is just amazing and if we wanted to rent it out after we got it taken care of we would make a good amount each month. The resale value in the future would be great. However this morning I am not so sure. I've looked around the MLS again and the options are limited within our budget. We want to buy something now, or at least in the near future, to take advantage of the cheap prices and great interest rates. What I would ideally want is not something we can afford and probably never will. :) As my mom always said: I have champagne taste with root beer money. :)

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If we must pick and not wait for something else, I'd go for #1.

 

 

:iagree: 1/4 of an acre isn't going to get you more animals or gardens, not really. I know you like the price, but honestly, I wouldn't buy #2. I wouldn't buy anything I didn't love, or at least really, really like, either. How close are you to those "unaffordable" ones. How long have they been on the market? You could always try a low-ball offer on one and see if they will come down. If they've been on the market awhile, they might just want to get it sold.

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Here banks are not giving mortgages on manufactured homes. They are on the market for thousands less than they appraised for five years ago because people who can't pay cash cannot get a mortgage. They don't sell. Trust me, I live in one now that we won't be able to sell ever, and it's not worth fixing because well never see the money back.

 

I don't know where you live - maybe it's better there.

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Here banks are not giving mortgages on manufactured homes. They are on the market for thousands less than they appraised for five years ago because people who can't pay cash cannot get a mortgage. They don't sell. Trust me, I live in one now that we won't be able to sell ever, and it's not worth fixing because well never see the money back.

 

I don't know where you live - maybe it's better there.

This is a really good point.

I have a lender who actually specializes in manufactured and mobile homes, but he is the exception, not the rule.

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I vote for #1. House 2 is cheaper, but it's also a lot smaller and needs some work, so it should be cheaper.

 

As others have said, though, if you don't absolutely love either house, I think you should wait. There will probably be more houses for sale as Spring approaches, and you'll have more to choose from. What if you were to settle now, and in April, see the home of your dreams at a price you could have afforded?

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#1.

 

You have 4 kids, and will have plenty of work to do on house #1 anyways to make it your own. #2 would eat up your time and energy.

 

If it is near the top of what you want to spend, but still less than you are approved for, consider that it is near the top, not OVER it. So you should be happy with the amount spent, not nervous about it.

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