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[mhayes86]

Hey, GAF, I need some insight and second opinions from anyone who has bought a house or has been on the market for one. My wife and I fell in love with a town house, but we're starting to get cold feet over whether or not to actually buy it. This will be our first purchase.

To bring you all up to speed, we have a realtor, a budget, and we already got pre-approved for a mortgage loan. We started looking into buying a house recently, and after going through a large list of town houses in areas that appealed to us, we found a few that we were interested in. We visited each one with our realtor over the weekend, and there was one that my wife and I fell in love with; an end unit that faces the woods, 3 floors, 3 bedrooms, 2.5 bath, etc.

We put in an offer and were excited to hear that the sellers accepted it yesterday. The sellers lowered the price of the house by nearly $30k and are willing to cover closing costs since one got a job offer across the country, so they are trying to sell fast. As of today, my wife and I are beginning to second guess everything. Things are moving really fast. I hear people struggling to find a place due to competition of offers, but everything has been working out so well for us thus far that it's just weird. Who finds a house they really like so quickly, for a decent price, in a nice area, and with a seller who is flexible on the price because they need to move fairly quickly?

Other than the Internet, my wife and I don't really have many friends or relatives with house buying experience to talk to about this. We need some other opinions on the matter to either help convince us to bail out, or give us piece of mind.

Thanks!

UPDATE - Inspection Results:
http://www.neogaf.com/forum/showpost.php?p=245804264&postcount=64

UPDATE 2 - Repairs made, closing and moving in this week!
http://neogaf.com/forum/showpost.php?p=247297558&postcount=79

 

[kirblar]

Where is the townhouse located? The most important thing w/ buying is that you need to make sure it's in a region where you'll be able to sell it years down the line.

 

[gkryhewy]

Just make sure you get a good independent inspector who will find any potential major problems. That still gives you a chance to withdraw.

We missed the first two houses we made offers on because the sellers got better offers, but landed in our third with minimal fuss or fanfare and have been very happy.

 

[maxiell]

Find out what other houses in the area are selling for. Check if there is water in the basement. Don't waive the inspection, and find someone you can trust to look at this house's innards. Many inspectors will waive shit through because they want to be hired again by real estate agents.

People take losses to sell their house if they are moving all the time. Sometimes a good deal is just a good deal. If you do your diligence, you'll have something close to peace of mind.

 

[Instro]

For what it's worth, we bought our house from a person who dropped the price about the same amount because they were ready to move, and the previous offer had fallen through. You got lucky basically, and it's possible the person had overpriced their house anyway. You can do some extra checking to see what things see selling for in the area.

Just make sure to get an inspection done, and possibly see about talking to the neighbors if you can to get a better sense of the neighborhood.

 

[mhayes86]

Where is the townhouse located? The most important thing w/ buying is that you need to make sure it's in a region where you'll be able to sell it years down the line.

Woodbridge, Virginia. Most townhouses go for $250k+ in the area, but they're offering $234k. Is there a good source to use that could help figure out if it's a region that will sell in the future? Looking through some things with our realtor, several properties have sold in the area over the last year.

Just make sure you get a good independent inspector who will find any potential major problems. That still gives you a chance to withdraw.

We missed the first two houses we made offers on because the sellers got better offers, but landed in our third with minimal fuss or fanfare and have been very happy.

We have a house inspection and radon testing being done on Wednesday. Our realtor was clear to let us know that the house inspection is a contingency period to bail on the contract.

 

[TarpitCarnivore]

You're about to drop $234K on a house, this is entirely normal. If you weren't questioning things then I'd be more worried.

 

[Hydrus]

Just my opinion OP, but I think the housing bubble might be busting soon, like within the next two years. Where I live, it seems like prices have peaked and the homes end up selling a little less then what the asking price was. Also noticed the more expensive homes sitting longer on the market instead of being sold the minute it goes on the market. I think you'll be able to get a better deal if you wait( Not that your deal is bad for todays market) . Also, don't buy anything with HOA's. You'll end up regretting down the line.

 

[FinaruDensetsu]

30k off AND cover closing costs?? You've basically found a unicorn. You should take it. For comparison, we bought ours for 640k and we were lucky as hell to just not be involved in a bidding war taking the price well over asking. Couldn't get a single dime off.

Wife and I bought our house about 2 years ago and we have no regrets whatsoever. Building equity in our home feels great and being able to add improvements, decorate it, and just putting work into it is a great source of pride for us. Also being able to entertain your friends and family at your own home is awesome.

Before buying a home, I never cared about plants. Now I visit nurseries weekly just looking for flowers and random plants to plant in our yard lol.

Do it!!!

 

[Sarye]

It could be you just got lucky with someone that needs to sell quickly. It happens. If you are concerned that there may be hidden things wrong with the house, that's what inspections are for. It sounds like you are the type of person that will do your diligence but in case you didn't know, inspections are super important to make sure that there is nothing wrong with the house. Ask questions.. no matter how stupid.. and if there are anything that you see, make sure to point it out to the inspector.

The most important thing is that both you and your wife are happy with the home. The best advice I can give is to not settle. So if your concern is simply that it's going too smoothly, that's normal.

 

[Abilidebob]

See if you can get heated floors for your house then.

 

[Jedi2016]

Second-guessing is part of the process. My realtor even mentioned it in her "This is how the process works" speech when I put in the offer.

If you really like it (and it sounds like you do), and there's no problems on the inspection, then go for it. You'll feel a lot better about it once it's yours, believe me.

And yes, I just bought a house a few months ago, so this is pretty recent for me.

 

[whatsinaname]

Are you getting cold feet from a financial sense (i.e. whether it is worth it or whether you might invest your money better etc)?

or

Are you getting cold feet from a responsibility/commitment to location sense (mobility and work to put into the house etc)?

 

[E92 M3]

Dude take it...closing costs and price drop is a great deal. You have an out with an inspection contingency. Also, make sure you do a termite inspection.

How's the area? How are the taxes? Everything you want?

 

[family_guy]

Just make sure it wasn't built on any Indian burial grounds.

 

[mhayes86]

You're about to drop $234K on a house, this is entirely normal. If you weren't questioning things then I'd be more worried.

Yeah, a friend of mine said that it happened to him as well. It makes total sense. it's a really exciting and terrifying experience.

Just my opinion OP, but I think the housing bubble might be busting soon, like within the next two years. Where I live, it seems like prices have peaked and the homes end up selling a little less then what the asking price was. Also noticed the more expensive homes sitting longer on the market instead of being sold the minute it goes on the market. I think you'll be able to get a better deal if you wait( Not that your deal is bad for todays market) . Also, don't buy anything with HOA's. You'll end up regretting down the line.

What makes you think the housing bubble might burst? I was hearing that prices are pretty good right now. Where are you located at, if you don't mind? Oh, and good luck not buying into a HOA here. I'm still waiting to receive the HOA agreement so I can read through it. I've heard how much of a pain they can be.

30k off AND cover closing costs?? You've basically found a unicorn. You should take it. For comparison, we bought ours for 640k and we were lucky as hell to just not be involved in a bidding war taking the price well over asking. Couldn't get a single dime off.

Wife and I bought our house about 2 years ago and we have no regrets whatsoever. Building equity in our home feels great and being able to add improvements, decorate it, and just putting work into it is a great source of pride for us. Also being able to entertain your friends and family at your own home is awesome.

Before buying a home, I never cared about plants. Now I visit nurseries weekly just looking for flowers and random plants to plant in our yard lol.

Do it!!!

That's what I was thinking as well. My co-worker was telling me horror stories about when he was trying to buy a place, but this was back in 2006 before the bubble burst. He spent a year trying to buy a place, but everyone kept outbidding him until someone he knew was willing to sell to him directly.

 

[teruterubozu]

We have a house inspection and radon testing being done on Wednesday. Our realtor was clear to let us know that the house inspection is a contingency period to bail on the contract.

Then you're set, nothing to worry about.

 

[meppi]

The most important part is the location.

If it's a so-so neighbourhood than think carefully about how that might evolve into a complete shitstain. I've been there and it turned my life into a depressing mess for quite a few years.

If it's a great neighbourhood and you really like the house, don't worry too much.

 

[thespot84]

Do you have money set aside to fix a bunch of shit that's going to break? If so, then take the house

 

[demosthenes]

Hey, GAF, I need some insight and second opinions from anyone who has bought a house or has been on the market for one. My wife and I fell in love with a town house, but we're starting to get cold feet over whether or not to actually buy it. This will be our first purchase.

To bring you all up to speed, we have a realtor, a budget, and we already got pre-approved for a mortgage loan. We started looking into buying a house recently, and after going through a large list of town houses in areas that appealed to us, we found a few that we were interested in. We visited each one with our realtor over the weekend, and there was one that my wife and I fell in love with; an end unit that faces the woods, 3 floors, 3 bedrooms, 2.5 bath, etc.

We put in an offer and were excited to hear that the sellers accepted it yesterday. The sellers lowered the price of the house by nearly $30k and are willing to cover closing costs since one got a job offer across the country, so they are trying to sell fast. As of today, my wife and I are beginning to second guess everything. Things are moving really fast. I hear people struggling to find a place due to competition of offers, but everything has been working out so well for us thus far that it's just weird. Who finds a house they really like so quickly, for a decent price, in a nice area, and with a seller who is flexible on the price because they need to move fairly quickly?

Other than the Internet, my wife and I don't really have many friends or relatives with house buying experience to talk to about this. We need some other opinions on the matter to either help convince us to bail out, or give us piece of mind.

Thanks!

You could have a great situation.

Get your home inspection ASAP and make sure it's by someone reputable. Ask locals who they may have used and if they thought they were good. If this clears, you should be fine. They already lowered the price by $30k, so they may know something is going to come up in the inspection, keep this in mind.

I was really nervous. For me it ended up being my 6th or 7th house I bid on because my budget was on the low end of the houses selling in the area I wanted. Really nervous for a long time even after I got it, but eventually it goes away and living in the house is amazing.

Woodbridge, Virginia. Most townhouses go for $250k+ in the area, but they're offering $234k. Is there a good source to use that could help figure out if it's a region that will sell in the future? Looking through some things with our realtor, several properties have sold in the area over the last year.

We have a house inspection and radon testing being done on Wednesday. Our realtor was clear to let us know that the house inspection is a contingency period to bail on the contract.

Just saw this on the inspection. Yea, you're fine.

 

[tearsintherain]

Its normal to get cold feet, you are committing to paying a huge amount of money - the most you have ever spent probably - and there is that cold panic of what if you lose your jobs, what if the economy crashes, what if a nest of giant bees decide to live in your yard - but end of the day you are putting money into something you now OWN, and in 20 years you can pay off that mortgage and then all you are paying are taxes, HOA fees, bills, and upkeep to live somewhere.

As people have said don't settle though, if you detest the location or don't like the fact that its not detached then keep looking, but obviously certain price ranges won't allow for certain features in the market.

I'd use redfin religiously too, not just to look at the history of your house but houses around you to see how well prices have held up over the years.

 

[Instro]

Just my opinion OP, but I think the housing bubble might be busting soon, like within the next two years. Where I live, it seems like prices have peaked and the homes end up selling a little less then what the asking price was. Also noticed the more expensive homes sitting longer on the market instead of being sold the minute it goes on the market. I think you'll be able to get a better deal if you wait( Not that your deal is bad for todays market) . Also, don't buy anything with HOA's. You'll end up regretting down the line.

There's really no indication to expect that housing prices are going to experience a significant decline any time soon. Many markets continue to be undersupplied, and home sales continue to grow. Could just be your area, or simply the fact that summer is coming to a close, and thus the peak buying period is also ending. Also interest rates are expected to rise over the next year, so waiting could be extra costly

Regardless, the OP is looking for a home, not just an investment, so I don't think waiting around for years hoping for a downturn is the best idea.

 

[Hydrus]

What makes you think the housing bubble might burst? I was hearing that prices are pretty good right now. Where are you located at, if you don't mind? Oh, and good luck not buying into a HOA here. I'm still waiting to receive the HOA agreement so I can read through it. I've heard how much of a pain they can be.

I live in Southern California, and housing prices here are pretty insane, as is rent. It's almost reaching 2006 levels. Everywhere I go, everyone is struggling not only to buy a home, but just too rent. I've been trying to buy a home for the past few years, and I'm noticing more short sales starting to pop up, houses are sitting longer on the market and dropping a bit in price. My family got fucked in 2007 when they bought a home, and it took us until now to recover. Like I said, it's just my opinion, but it feels all too familiar to me. If your having cold feet, why not wait another year? I don't believe prices are gonna go a lot higher then they are now. My family wasn't feeling very confidant when they bought their home in 2007, and a year later the value dropped almost in half. Sometimes its better to wait a bit.

 

[KingV]

Just my opinion OP, but I think the housing bubble might be busting soon, like within the next two years. Where I live, it seems like prices have peaked and the homes end up selling a little less then what the asking price was. Also noticed the more expensive homes sitting longer on the market instead of being sold the minute it goes on the market. I think you'll be able to get a better deal if you wait( Not that your deal is bad for todays market) . Also, don't buy anything with HOA's. You'll end up regretting down the line.

It's really situational man. My area of the country it's the hottest it's been in a long time this summer.

 

[maxiell]

Your price range has very little to do with a housing bubble. Houses in your price range usually aren't difficult to resell. It sounds like the price is fair as long as the house is structurally sound.

There's no harm in bailing after an inspection if you still feel uncomfortable. You should love your house.

 

[kirblar]

Woodbridge, Virginia. Most townhouses go for $250k+ in the area, but they're offering $234k. Is there a good source to use that could help figure out if it's a region that will sell in the future? Looking through some things with our realtor, several properties have sold in the area over the last year.

You are moving to one of the safest housing markets in the nation (due to DC being quasi-recession proof due to the government.) That's definitely a good price for the area.

 

[RustyNails]

Just my opinion OP, but I think the housing bubble might be busting soon, like within the next two years. Where I live, it seems like prices have peaked and the homes end up selling a little less then what the asking price was. Also noticed the more expensive homes sitting longer on the market instead of being sold the minute it goes on the market. I think you'll be able to get a better deal if you wait( Not that your deal is bad for todays market) . Also, don't buy anything with HOA's. You'll end up regretting down the line.

Is this based on anything? Having a housing crash so close to one just 9 years ago seems aggressive.

 

[markitrons]

Get a reputable lawyer, get a reputable home inspector, and don't fall in love with it.

If the lawyer or inspector finds something wrong, it HAS to be addressed. It has to be fixed before you move in, or they have to cut money off the price. If they won't, you gotta walk. This is a business transaction at the end of the day, and if you let your emotions get in the way and ignore things like leaks, insect damage, etc. you're setting yourself up for a giant headache.

Don't go into this unless you have 5-10 thousand in the bank for repairs either. A heater or A/C unit goes and you're in big trouble without it.

If you mind your p's and q's this can be a great investment. Even in a market downturn you'd be throwing money away on rent, so it can work out really really well, but not if you go in emotionally.

Something else to consider since - I ran into a giant headache selling my home (a townhouse) and it may be why the sellers are so gung ho on selling to you. Since the market crash, a large percentage of townhomes are considered non-warrantable if they violate certain rules. It was virtually every townhome I looked at in NJ. That means you can't get FHA approval and people that want to buy must supply a 20% downpayment or they have to pay extra in other fees or they can't get a mortgage.

And since regular homes require much less that 20%, people are less likely to buy your townhome. What really sucks is that a lot of agents and lawyers are not aware of this, and banks give pre approval assuming that condo is warrantable and you get all the way through the process before you find out that there is no mortgage. I'd check on that now if I were you - call your loan officer.

If you have the time to do the research, see if a lot of units in your townhouse complex are being rented vs owned. It really sucks if a large percentage are rented by a single owner and they go belly up - your association loses all those HOA fees, and then nothing can get repaired.

 

[KojiKnight]

We're in the process of selling a house right now. The house is in Florida, we moved to Arizona. When you're in that situation, you just want out from under the house. You can't rent or control the house and leaving it vacant too long without you being able to oversee it can lead to bad things happening.

Sometimes it's just easier as a seller to cut loose and lose a little bit of equity. Luckily we got an offer on our house this weekend for only a little less than we asked in only 2 weeks. Hoping it all goes great.

 

[deadbeef]

Here's some info on woodbridge.

http://www.city-data.com/city/Woodbridge-Virginia.html

 

[RMI]

Sounds like you lucked out OP. Just make sure you get the place inspected. Test all the light switches, outlets, appliances, faucets, etc. Look under and around appliances for evidence of rodents,also. None of these things are actually deal breakers even, but just be aware that no place is perfect. My house is old and full of problems that we didn't notice but I still don't regret buying it. I like living here.

 

[Luschient]

You're about to drop $234K on a house, this is entirely normal. If you weren't questioning things then I'd be more worried.

This. I wanted to hyperventilate when it was time to finally pull the trigger on our place, knowing how much we'd be on the hook for.

But that passes

 

[always crazy bacon]

Who finds a house they really like so quickly, for a decent price, in a nice area, and with a seller who is flexible on the price because they need to move fairly quickly?


Thanks!

This is exactly what happened when I brought my last house. Just becuse things are not going wrong does not mean something is wrong. If everybody is professional and cooperative this is how it should work.

 

[Nipo]

Woodbridge is a solid bet. Unless they fire 25% of the federal government, move huge departments out of DC, or get hit by NK nuke you'll see appreciation.

 

[Hydrus]

Is this based on anything? Having a housing crash so close to one just 9 years ago seems aggressive.

I'm just basing this on everything I'm seeing around me. Like I said, I live in So-Cal and things have jumped up sooo fast. A lot of the homes in 2011- 2013 were bought by Chinese investors with cash offers and have been being flipped for crazy profits the past 2 years. Seems like everyone around me has gotten priced out and is now leaving California.
I see a lot of people rushing to buy a home they cant afford in fear of prices and rates going up. Nearly every home that has been sold in my neighborhood, has been bought by multiple families. Like I said, this just feels all too similar to 2006- 2007. I could very well end up being wrong and nothing will happen in a few years, but I don't think it hurts to wait a bit if your unsure. I would kill for OP's deal in So-Cal.

 

[Xero]

I always recommend getting actual tradesmen to look at the house instead of an inspector. They generally only have to do a course that lasts a few weeks and thats it. Can tell you how many times ive gone into a house after a house inspector just to find a bunch of plumbing code violations that the inspector didnt mention. Cant imagine the electrical and structural shit most of them likely miss as well.

 

[Nipo]

I'm just basing this on everything I'm seeing around me. Like I said, I live in So-Cal and things have jumped up sooo fast. A lot of the homes in 2011- 2013 were bought by Chinese investors with cash offers and have been being flipped for crazy profits the past 2 years. Seems like everyone around me has gotten priced out and is now leaving California.
I see a lot of people rushing to buy a home they cant afford in fear of prices and rates going up. Nearly every home that has been sold in my neighborhood, has been bought buy multiple families. Like I said, this just feels all too similar to 2006- 2007. I could very well end up being wrong and nothing will happen in a few years, but I don't think it hurts to wait a bit if your unsure. I would kill for OP's deal in So-Cal.

The next crash rarely looks like or is caused by the same thing as the previous one. The economy will be fucked for completely different reasons next time. If i were placing bets it would be environmental not speculative buying.

 

[theechrisfox]

See what the neighbors are like.

 

[mhayes86]

Are you getting cold feet from a financial sense (i.e. whether it is worth it or whether you might invest your money better etc)?

or

Are you getting cold feet from a responsibility/commitment to location sense (mobility and work to put into the house etc)?

A little bit of both. My wife and I are kind of going on a five year+ plan. Rent in a place like Manassas is hitting $1200/mo (I made a thread about this a couple weeks ago), so I thought that why not spend a few more hundred a month and get some equity. Financially, I'm pretty sure we could afford it. I recently signed a job offer with a 20% salary increase, but it was contingent, so I don't have a start date. I'm pretty sure we could get by, but I'm waiting for my lender to give me hard numbers with a couple different loan options.

Dude take it...closing costs and price drop is a great deal. You have an out with an inspection contingency. Also, make sure you do a termite inspection.

How's the area? How are the taxes? Everything you want?

Seller pays for the termite inspection, and if termites are found, it's their responsibility to pay for the extermination and repairs.

As for the area, it's very diverse, there have been no criminal incidents over the past 6 months according to crimereports.com, and sex offenders are pretty low. Prince William County has fairly low taxes (Fairfax is ridiculous), and the area overall is pretty clean. The HOA includes access to several public pools, there's several parks, and there's plenty of hiking trails near the Occoquan Reservoir.

Get a reputable lawyer, get a reputable home inspector, and don't fall in love with it.

If the lawyer or inspector finds something wrong, it HAS to be addressed. It has to be fixed before you move in, or they have to cut money off the price. If they won't, you gotta walk. This is a business transaction at the end of the day, and if you let your emotions get in the way and ignore things like leaks, insect damage, etc. you're setting yourself up for a giant headache.

Don't go into this unless you have 5-10 thousand in the bank for repairs either. A heater or A/C unit goes and you're in big trouble without it.

If you mind your p's and q's this can be a great investment. Even in a market downturn you'd be throwing money away on rent, so it can work out really really well, but not if you go in emotionally.

Something else to consider since - I ran into a giant headache selling my home (a townhouse) and it may be why the sellers are so gung ho on selling to you. Since the market crash, a large percentage of townhomes are considered non-warrantable if they violate certain rules. It was virtually every townhome I looked at in NJ. That means you can't get FHA approval and people that want to buy must supply a 20% downpayment or they have to pay extra in other fees or they can't get a mortgage.

And since regular homes require much less that 20%, people are less likely to buy your townhome. What really sucks is that a lot of agents and lawyers are not aware of this, and banks give pre approval assuming that condo is warrantable and you get all the way through the process before you find out that there is no mortgage. I'd check on that now if I were you - call your loan officer.

If you have the time to do the research, see if a lot of units in your townhouse complex are being rented vs owned. It really sucks if a large percentage are rented by a single owner and they go belly up - your association loses all those HOA fees, and then nothing can get repaired.

The inspection will definitely be the decision maker. The roof and A/C are only 5 years old, so we don't have to worry about those for a while (hopefully). If anything comes up that they won't fix or lower the price further, we'll certainly walk.

What do you mean by "non-warrantable"? Home warranty? What kind of rules can cause a town home to not be warrantable? Is there a good source that I could use to see if any of the other homes in the area are rented/owned?

I always recommend getting actual tradesmen to look at the house instead of an inspector. They generally only have to do a course that lasts a few weeks and thats it. Can tell you how many times ive gone into a house after a house inspector just to find a bunch of plumbing code violations that the inspector didnt mention. Cant imagine the electrical and structural shit most of them likely miss as well.

My brother is a master electrician, and my father in law worked in HVAC most of his life. They said the same, haha. They gave us a list of things to look at ourselves on top of the inspectors.

See what the neighbors are like.

Good idea, but I feel a bit weird just walking up to someone and saying, "I'm making an offer on that house. How's everyone around here?" We met the seller when we visited the house, and our realtor asked about neighbors. The seller is a cop, and said they neighbors are all really nice, and a firefighter lives just a few houses down.

Thanks a lot for your opinions, GAF! You're really helping ease my mind, and I'm relaying much of the info here to my wife.

 

[markitrons]

What do you mean by "non-warrantable"? Home warranty? What kind of rules can cause a town home to not be warrantable? Is there a good source that I could use to see if any of the other homes in the area are rented/owned?

Thanks a lot for your opinions, GAF! You're really helping ease my mind, and I'm relaying much of the info here to my wife.

Stolen from google:

A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.” Freddie Mac and Fannie Mae would consider a condo to be “non-warrantable” if, for instance, the condo:

Is in a development which has yet to be completed
Is in a development which allows for short-term rentals
Is in a development where one person or entity owns more than 10% of all units
Is in a development where less than 50% of the occupants in a complex are the owners
Is in a development involved in litigation of any kind regardless of whether the building is suing another party, or is the party being sued.

In my case, the development that I was selling from had an owner that owned slightly more than 10% of the units, so nobody that was interested could get FHA approval and essentially needed 20% down for a conventional loan.

The only reason we bought in another complex (again, non warrantable, this time because parts of the development hadn't been completed) was because my wife could get a doctor's loan and we could put 0% down.

 

[slit]

It's normal to feel that way about something that will probably be one of if not THE the most expensive purchase you ever make. It's probably heightened your anxiety because of the pace of the sell but sometimes things just fall into place like that, be happy that you got to avoid the frustration a lot of first time buyers go through. Having said that make sure everything is on the up & up with inspections and such.

 

[Instro]

Something else to consider since - I ran into a giant headache selling my home (a townhouse) and it may be why the sellers are so gung ho on selling to you. Since the market crash, a large percentage of townhomes are considered non-warrantable if they violate certain rules. It was virtually every townhome I looked at in NJ. That means you can't get FHA approval and people that want to buy must supply a 20% downpayment or they have to pay extra in other fees or they can't get a mortgage.

Getting a conventional loan without 20% down isn't a big deal, and not uncommon. As a buyer getting a FHA loan is the worst option anyway. As a seller you'd prefer a conventional loan buyer anyway.

 

[whatsinaname]

A little bit of both. My wife and I are kind of going on a five year+ plan. Rent in a place like Manassas is hitting $1200/mo (I made a thread about this a couple weeks ago), so I thought that why not spend a few more hundred a month and get some equity. Financially, I'm pretty sure we could afford it. I recently signed a job offer with a 20% salary increase, but it was contingent, so I don't have a start date. I'm pretty sure we could get by, but I'm waiting for my lender to give me hard numbers with a couple different loan options.

The NY times has a pretty good rent vs buy calculator. There are other factors too but this captures a majority (if not just giving you a rule of thumb).

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

At $1200 rent vs a $250k house, I think you can take the financial side out of your worries and just concentrate on whether you will be around for 4-5+ years at this location and whether you like the place a lot.

 

[markitrons]

Getting a conventional loan without 20% down isn't a big deal, and not uncommon. As a buyer getting a FHA loan is the worst option anyway. As a seller you'd prefer a conventional loan buyer anyway.

That's how I felt until I went through it - took me 1.5 years to sell, and three separate times we had accepted offers and thought we were home free with pre approved buyers only to have the rug pulled out from under us.

In our area, the townhome market has an abundance of first time buyers - so FHA loans were the norm, not the exception. I was finally able to sell for 5k less than I bought for (bought in 2008 right as the market bubble burst, and sold in 2016), to someone who bought in cash.

Other comparable units went for 15k less than I did because they didn't have cash buyers.

I'm sure my closeness to the situation has biased me, but it was a miserable process.

I still think its ultimately worthwhile to purchase, but the warrantable/non warrantable problem caused me a ton of headaches.

 

[Shadybiz]

I suggest figuring out a way to test the soundproofing. The townhouse I bought years ago had crappy soundproofing...drove me up a wall when our neighbors would play music with a lot of bass.

Just my opinion OP, but I think the housing bubble might be busting soon, like within the next two years. Where I live, it seems like prices have peaked and the homes end up selling a little less then what the asking price was. Also noticed the more expensive homes sitting longer on the market instead of being sold the minute it goes on the market. I think you'll be able to get a better deal if you wait( Not that your deal is bad for todays market) . Also, don't buy anything with HOA's. You'll end up regretting down the line.

There's no proof that we're in a bubble. Prices in a lot of areas are trending up...but that still doesn't mean we're in a bubble.

 

[E92 M3]

A little bit of both. My wife and I are kind of going on a five year+ plan. Rent in a place like Manassas is hitting $1200/mo (I made a thread about this a couple weeks ago), so I thought that why not spend a few more hundred a month and get some equity. Financially, I'm pretty sure we could afford it. I recently signed a job offer with a 20% salary increase, but it was contingent, so I don't have a start date. I'm pretty sure we could get by, but I'm waiting for my lender to give me hard numbers with a couple different loan options.



Seller pays for the termite inspection, and if termites are found, it's their responsibility to pay for the extermination and repairs.

As for the area, it's very diverse, there have been no criminal incidents over the past 6 months according to crimereports.com, and sex offenders are pretty low. Prince William County has fairly low taxes (Fairfax is ridiculous), and the area overall is pretty clean. The HOA includes access to several public pools, there's several parks, and there's plenty of hiking trails near the Occoquan Reservoir.




The inspection will definitely be the decision maker. The roof and A/C are only 5 years old, so we don't have to worry about those for a while (hopefully). If anything comes up that they won't fix or lower the price further, we'll certainly walk.

What do you mean by "non-warrantable"? Home warranty? What kind of rules can cause a town home to not be warrantable? Is there a good source that I could use to see if any of the other homes in the area are rented/owned?



My brother is a master electrician, and my father in law worked in HVAC most of his life. They said the same, haha. They gave us a list of things to look at ourselves on top of the inspectors.



Good idea, but I feel a bit weird just walking up to someone and saying, "I'm making an offer on that house. How's everyone around here?" We met the seller when we visited the house, and our realtor asked about neighbors. The seller is a cop, and said they neighbors are all really nice, and a firefighter lives just a few houses down.

Thanks a lot for your opinions, GAF! You're really helping ease my mind, and I'm relaying much of the info here to my wife.

How much earnest money are you putting down?

 

[Electric Eye]

If they are selling for less than similar ones around you and are footing the closing costs you just might be walking into a home with immediate equity. Or the house is haunted.

 

[Irishmantis]

The saying too good to be true usually is

Do what the first post did OP and hire an inspector but don't completely ditch it either

 

[joeblackisback]

It's a big step so it's natural to feel a little overwhelmed, even if you feel like you've got it all mapped out. It sounds like you're in a pretty good position, so that's good. I'm a title attorney in Arlington so feel free to pm me with any questions you might have specific to Virginia (or the process).

 

[Dolla Dolla]

Go to zillow.com and put the address in. It should tell you how much the prices of the surrounding units sold for or their estimated price. The interface is much easier to navigate on a PC.