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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-03-2007, 07:18 PM   #21
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

Don't be afraid to negotiate. Don't trust your realtor or their realtor - but play like you do. Tell your realtor "confidential" information - which will soon be told to their realtor. If you're good at DIY improvements, buy the worst house in the best neighborhood. When negotiating, forget your ego and remember you can always make another offer, even after a final offer.

Personally I have always overextended when buying real estate. In less than two years the price has always looked downright cheap. Consider real estate as an investment that pays you the dividend that you can live in it.
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-04-2007, 12:51 AM   #22
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

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Originally Posted by riskaverse
Personally I have always overextended when buying real estate. In less than two years the price has always looked downright cheap. Consider real estate as an investment that pays you the dividend that you can live in it.
The other side to that thumbrule... we found an incredible bargain in what turned out to be the first year of a 10-year housing bear market. Upgrading to that home would have surely changed our lives, and not for the better!
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-04-2007, 02:56 AM   #23
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

Not necessary top 3, but these are what I can think of:

1. If you're the type to keep up with the Jones, then don't buy in an upscale neighborhood.

2. Make sure to factor in non-mortgage related costs, like maintenance, property tax, home insurance and etc.

3. Don't "split the difference" until you're the one offering it. If the seller is asking a ridiculously high price, splitting the difference works in his favor.
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-04-2007, 07:21 AM   #24
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

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Don't "split the difference" until you're the one offering it. If the seller is asking a ridiculously high price, splitting the difference works in his favor.
If the seller is asking a ridiculously high price, generally speaking I wouldn't even bother making an offer. There are plenty of fish in the sea, and usually no need to waste time negotiating with someone who is obviously unrealistic and/or doesn't really want to sell.
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-04-2007, 11:50 AM   #25
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

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Originally Posted by Milton
If the seller is asking a ridiculously high price, generally speaking I wouldn't even bother making an offer. There are plenty of fish in the sea, and usually no need to waste time negotiating with someone who is obviously unrealistic and/or doesn't really want to sell.
We got a good deal on a place that was listed at 20% over market and was getting no action. We offered 65% of the asking price and settled at 69%. (Also threatened to change realtors because she said such a lowball would embarrass her.) Had to fix it up but sold it 2 years later for 50% higher. That got us on the merry-go-round! Sometimes overpriced homes are a gold mine. But look for extenuating circumstances.
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-04-2007, 01:47 PM   #26
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

Most of the good stuff has already been discussed but something I ran into when I was selling a rehab is to check to see if the county is requiring any improvements on the property. I sold a rehab in December and a week later I got a letter in the mail from the county. It was notifying us that all the homes in the subdivision were required to connect to the public sewer and disconnet their septic tanks. The county was requiring the homeowners to pay for the upgrade. IIRC it was going to cost the new owner about $2500 to complete the job.
Guess what I do when I do when I buy a rehab now!
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-04-2007, 01:58 PM   #27
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

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Originally Posted by Arif
I sold a rehab in December and a week later I got a letter in the mail from the county. It was notifying us that all the homes in the subdivision were required to connect to the public sewer and disconnet their septic tanks. The county was requiring the homeowners to pay for the upgrade. IIRC it was going to cost the new owner about $2500 to complete the job.
Man, talk about dodging a bullet. I'm amazed the new owner didn't try to litigate your sale disclosure...
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-05-2007, 11:29 AM   #28
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

Yea same for wells and city water. In our acreage, the cost to connect was estimated to be $10,000 because the house was 200 ft back from the road. New owners were lobbying for it because their monster homes were closer to the road and had well problems feeding their pools, lawn sprinklers and 5 bathrooms. Luckily we defeated the movement.
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home
Old 05-05-2007, 12:39 PM   #29
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Re: 3 things you NEVER or ALWAYS should do when purchasing a home

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Man, talk about dodging a bullet. I'm amazed the new owner didn't try to litigate your sale disclosure...
That's why on my disclosure documents if I didn't do the work or pay someone to do it I always note "Unknown." You can never know everything about a house no matter how many inspections you get done. I've bought homes that were inspected and then the HVAC goes out and that's $3000 out of the profits.
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