People may have been willing to buy those homes before, I don't think they will anymore.
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Home Buying |OT|
- Thread starter Ourobolus
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People may have been willing to buy those homes before, I don't think they will anymore.
Captain Tuttle
Member
Ron Mexico
Member
Not totally out of the ordinary for lots of places depending on the area. My old townhouse was $6000 for 1300 square ft and a postage stamp worth of land but was a bargain compared to the next development over which was topping $8500 for similar units. This was central Jersey with the NJ Turnpike as your backyard scenery.
Moved about 25 miles south to a suburb of Philly and still pay a little over $6500 but get a much larger house and a little over .25 acres. My parents are in TN and pay under $1000 for a house and plot that would easily run north of $15k/yr here. It's crazy.
Zoe
Member
Austin, Williamson county, Round Rock ISD
Raylan Targaryen
Member
that's not screwed at all.
Captain Tuttle
Member
You have new construction right? Maybe that's why. Around here in the Philly suburbs in SE PA they rarely re-appraise your house, they just keep increasing the millage. My old house was built in the 50's, was appraised for taxes at $159,000, was 1600 sf and we paid about $6,500/yr. We sold it for $475,000 which was fair market value.
Our new house is appraised for taxes at $424,250 (in the year 2000), we paid twice that, again fair market value, and pay about 12,000/yr in taxes.
again, this is not the first time some of these homes have flooded. I saw on the news this guys house flooded in 2015 or 2016, so he rebuilt it and made the entire garage out of concrete cinder block and then built the house on top of that.
If your theory were true there would be entire neighborhoods that are ghost towns in Houston and there's not. Houston flooded heavily in 2001, parts flooded again during ike in 2008, parts in 2015, parts in 2016 and now heavily again in 2017.
Darryl M R
Member
My grandmother asked me to take over her home upon her death--she is 80, active, and in good health for her age. Can anyone give insights on the least costly method I should be considering for a home in MD and what costs should I expect including lawyer fees for drafting up documents?
Also I plan on going to grad school and would like to be considered for financial aid so I would not want to have ownership of the home while she is still alive in case it is considered an asset.
Also I would like to take advantage of first time home ownership programs programs and would have to do this before home ownership would be transferred.
Also I plan on going to grad school and would like to be considered for financial aid so I would not want to have ownership of the home while she is still alive in case it is considered an asset.
Also I would like to take advantage of first time home ownership programs programs and would have to do this before home ownership would be transferred.
Zoe
Member
It is new construction. That's why the value is high but not why the taxes are high (and they aren't even taking out the tax for our neighborhood's roads yet). Could be worse, some section on the other side of Avery Ranch is around 3.5% or so.
Captain Tuttle
Member
Zoe
Member
They are. The school taxes in the Austin area range between 1.192 (Austin ISD) and 1.54 (Pflugervlle ISD). We're actually on the border between Round Rock and Leander ISD, and IMO RRISD is the better district and luckily has the lower tax rate.
~$2000 here.
Living in Boston and getting a residential rebate is preeeeeety sweet. It's a small condo though at 400k.
You'd probably want to put it in a trust, that you'd be the trustee of. The trust would sign it over to you upon her death.
That said I don't think the trust would be eligible for first time owners stuff. But, your grandma would sell her home to the trust for $1 or so anyways, and would take care of everything as normal until her death, at which point the house is disbursed to you.
Any lawyer should be able to go more in depth into questions, specifically tax code and state rules.
Darryl M R
Member
Thanks for your response. I'm planning to do a bit more research later this weekend and see how much it would cost to work with a lawyer on this.
Captain Tuttle
Member
what is this sorcery?
Ron Mexico
Member
To build upon what's already been said--there's a handful of factors in play here.
If your grandmother owns the property outright, there would be no inheritance tax to you as her grandchild in Maryland, whether it was passed by trust (which I'd still lean towards in *most* circumstances) or through probate.
If there's a lien on the property, Maryland will charge a tax on the real estate transfer as it would be technically considered a purchase.
For the cost of the trust, this is going to vary wildly from area to area or even attorney to attorney but I wouldn't be terribly surprised to see upwards of $3000-4000 depending on the complexity of the trust. Whether or not the trust makes sense would be dependent upon much more of her financial picture than just the real estate.
My CU is based in MD and I've done some estate work for MD accounts so, while I'm not an attorney, I feel confident in this accuracy as of today, but of course I would continue to keep an eye on any changes to tax law as estates are always a hot button issue of course.
joeblackisback
Member
Check with your attorney, but in MD I believe your grandmother could do a gift deed to the trust that wouldn't incur transfer taxes so long as she is the primary trustee. You would then be the successor trustee and essentially take over duties in the event of her passing. This would also keep your first time Maryland home buyer benefit intact.
Turbowaffles
Member
So to anyone trying to buy a home in Maryland specifically.... WHY is it so damn expensive in this state? I want to buy a home, literally just started the process and have no idea what I'm doing, but some Google searches have shown me it's so fucking expensive to live even in the shittier parts of MD. Why?!
Gods if someone could help me with this process I'd love you forever.
Gods if someone could help me with this process I'd love you forever.
DoomGyver
Member
First home buyer here -- I've been looking all summer and have passed on several. I just scheduled a second viewing of a home I looked at Friday. This will be my first 2nd viewing, so today I'm writing down all of the pros and cons that I see in the purchase. Home buying is hard. I've done the research, I'm staying in my budget -- even though the realtor every once in awhile throws a home at me that is clearly more than I want to pay, even though I could afford it. I really like my realtor though, so I've dealt with it and just told him it's out of my budget - I think it just took him a few conversations before he got dialed in to what I'm looking for.
Depending on how long it's been since the shingles have been replaced, and the year of the HVAC/AC is going to determine whether I bite or not at their asking price.
Depending on how long it's been since the shingles have been replaced, and the year of the HVAC/AC is going to determine whether I bite or not at their asking price.
DoomGyver
Member
This home buying shit is stressful. It's such a scam. We're in a sellers market right now and homes are going in days. Sometimes I don't even have time to take a second walk through the house before making an offer. So I found a house that would be a good fit for me that was in my price range. I made an offer and it was accepted. Went through with the inspection $500 and found flaws that I can't live with but are not deemed critical to the function of the house. So now if I back out of the offer I'm out the $500 I spent on the inspection and the $500 I put in escrow.
Why isn't it law that a house has to be inspected before it is put on the market? That way I can read the report and make an offer that would be more in line with what the house is worth? I could have a house inspected before making an offer - but in this market the house would probably sell before the inspection report was complete -- and I'd still be out the money for the inspection.
Maybe I should just get an apartment.
Why isn't it law that a house has to be inspected before it is put on the market? That way I can read the report and make an offer that would be more in line with what the house is worth? I could have a house inspected before making an offer - but in this market the house would probably sell before the inspection report was complete -- and I'd still be out the money for the inspection.
Maybe I should just get an apartment.
Rockandrollclown
lookwhatyou'vedone
You'll get better at spotting flaws yourself if you stick with it. First house I ever put an offer in on turned out to be a deathtrap. it was disheartening to be out the money at the time, but better in the long run. Be thankful you have the ability to back out only losing $1000. On my current house, our inspector missed something that cost me almost $20k.
When we bailed out post inspection about 6 years ago, they paid us back the deposit even though they're supposed to be nonrefundable.
We of course were out the inspection costs but it was well worth it because we didn't spend ~$290k on a crappy house thanks to the inspection.
Found a good house a few weeks later that we live in to this day.
We of course were out the inspection costs but it was well worth it because we didn't spend ~$290k on a crappy house thanks to the inspection.
Found a good house a few weeks later that we live in to this day.
Captain Tuttle
Member
What did the inspector find? How much would it cost to fix the issues?
Contact the sellers and ask them to fix the stuff. That's pretty common.
Fragamemnon
Member
The main reason is so that its your inspector with your report. Not a cherry-picked report from an inspector that was friendly to the buyers with tricks like blocking access to areas where there are problems in the house so the inspector couldn't look at those places.
Are you a first time home buyer? EVERY house has problems. Even brand new houses have crazy stuff with them. It's just the nature of the beast. Don't look for the perfect house or fret minor problems. Worry about:
- Signs of water damage with a paper trail on remediation.
- Big problems with electrical (not "no GFCI breakers". stuff like knob and tube wiring, unpermitted work, etc.)
- All things related to the foundation, including grading and drainage problems. Structural engineer inspection is cheap, fixing foundation problems is horrendously expensive.
- Clearly deferred HVAC or roofing maintenance.
- Siding or other building envelope issues that are widespread throughout the home.
Basically the things that cost a LOT of money to fix. Don't try to get a perfect house w/ no problems, they don't exist, instead get one where you know about the problems in detail and they are all smaller things that you can either fix in time or take preventive action to fix.
Already mentioned here but are you going to trust the seller's inspection report or your own?
Interesting, didn't know this thread existed. Just signed the contract after the seller accepted my offer and the bank process started today. My credit is excellent but my savings took a hit when I had to pay off mine and my fiancée bills while she was unemployed, plus I am paying her masters degree (she's helping of course). Hopefully they don't kill my case because if that.
DoomGyver
Member
There is a whole laundry list of stuff wrong with the house, but the three main things were:
Roof - shingles popping up and nail heads protruding through the shingles. The roof is 11 years old, but the inspector also noted that a portion of the roof had been replaced at a different time. So I'm not sure if a tree fell on it or what. County photos show a tree that used to be on that side of the house and is not there anymore.
Electrical - two of the bedrooms kept throwing breakers - inspector wasn't a certified electrician so he wouldn't say why. It's an old house so my research suggested it was because of the use of a neutral instead of a ground.
Foundation/parking area - the concrete parking is all cracked and doesn't slope away from the house. During the inspection we found a rather large crevice about a foot away from the foundation that could pool water and erode the soil out from under the foundation.
So I would need a new roof installed, an electrician to fix the gremlin in the bedrooms, and new concrete poured for the driveway and sloped away from the house.
What I would get is: a patched roof, electric problems probably fixed, and a little sealant on the drive to slow the water intrusion.
I think I'll take the $500 hit and avoid the headache.
Roof - shingles popping up and nail heads protruding through the shingles. The roof is 11 years old, but the inspector also noted that a portion of the roof had been replaced at a different time. So I'm not sure if a tree fell on it or what. County photos show a tree that used to be on that side of the house and is not there anymore.
Electrical - two of the bedrooms kept throwing breakers - inspector wasn't a certified electrician so he wouldn't say why. It's an old house so my research suggested it was because of the use of a neutral instead of a ground.
Foundation/parking area - the concrete parking is all cracked and doesn't slope away from the house. During the inspection we found a rather large crevice about a foot away from the foundation that could pool water and erode the soil out from under the foundation.
So I would need a new roof installed, an electrician to fix the gremlin in the bedrooms, and new concrete poured for the driveway and sloped away from the house.
What I would get is: a patched roof, electric problems probably fixed, and a little sealant on the drive to slow the water intrusion.
I think I'll take the $500 hit and avoid the headache.
Yeah, fuck that shit.
Straight Edge
Member
We just bought a house and I'm having trouble selling my old house. It has newer HVAC, roof, appliances, and is very well kept but no offers after about 15 showings. This "seller's market" is not working for me.
How is your house priced compared to the similar houses in the area? How is the layout of the house? Is the kitchen/bathroom/master remodeled at all?
Straight Edge
Member
It's priced lower than other houses in its zip code. My brother bought it 7 years ago as a foreclosure and remodeled almost everything. It has a shared driveway with the neighbor which I am sure is a hard sell.
Tal Shiar Agent
Member
I gotta vent. Turn of the century houses fucking suck. Shitty basements, usually shitty add-ons for the bathroom and kitchen. Horsehair plaster and wood paneling. The dampness of my basement (dehumidifiers are a constant battle) ruined the heating coils of my furnace, which was installed in 2009, and now I need to replace it.
Thank god I got the house for way under market value. Once we replace the furnace, remodel the kitchen, and replace the roof we can sell it for double what we paid.
Thank god I got the house for way under market value. Once we replace the furnace, remodel the kitchen, and replace the roof we can sell it for double what we paid.
Is that based on comparables from your agent? Or are you comparing through sites like Zillow? Eitherway, good luck. It sounds like you'll get there soon! I recently bought and sold as well so I know the stress with not knowing!
Fragamemnon
Member
seller's market + not selling = price too high
Any experience here on rolling with a 15 year mortgage versus 30?
In the market and don't anticipate living in the property beyond 5-7ish years, so my mindset is to get more equity prior to future sale and reap the gains of a hot housing market coupled with the lower interest rate.
In the market and don't anticipate living in the property beyond 5-7ish years, so my mindset is to get more equity prior to future sale and reap the gains of a hot housing market coupled with the lower interest rate.
Of note as to Zillow, for some properties and areas it can be markedly high, and others markedly low. Especially if it's a transitioning area or very mixed in terms of condo/townhome/small/mini-mansions in a small area.
We switched from a 30 to a 15 year when we got to a tipping point in our equity. It's frustrating feeling because your mortgage goes UP but obviously in the long run it works great, but really you need to look at your finances. At this point, thanks to some sheer luck, we're "house rich" (that could change in the market at any time).
But it does in theory guarantee our mortgage will be paid off when we retire - and that is a meaningful target date.
Zillow is in the process of spending a LOT of money to develop a better algorithm to correctly set a Zestimate.
Should have a good understanding of how close they are to rolling it out next month
i would always recommend a 15 year.
but I wouldnt plan on your home turning a profit in 5 to 7 years. There's just no guarantee that the housing market is still going to be hot. But if that happens i would rent the house out instead of selling it.
Zillow is in the process of spending a LOT of money to develop a better algorithm to correctly set a Zestimate.
Should have a good understanding of how close they are to rolling it out next month
Zestimates will continue to be useless until they quit messing with zestimate values from the past. My house was "valued" at 325K zestimate when I purchased, and that value has fluctuated by as much as 50K. They shift the graph in its entirety though which makes the valuation history useless.
Skel1ingt0n
I can't *believe* these lazy developers keep making file sizes so damn large. Btw, how does technology work?
Live in KC. House is a little over half-paid off. Want to use our equity for a down-payment on a house in San Diego.
But then I see that the cheapest, liveable houses for a family are $500K bare minimum. $600-$700K is more accurate.
... and so I go back and think, "eh, fuck it... maybe I should just stay in KC and enjoy a paid-off house when I'm 33." :-/
But then I see that the cheapest, liveable houses for a family are $500K bare minimum. $600-$700K is more accurate.
... and so I go back and think, "eh, fuck it... maybe I should just stay in KC and enjoy a paid-off house when I'm 33." :-/
Got it. What was the tipping point that motivated the switch?
If I knew for sure we'd be in the house long-term, I would go for a 15 year without question. It's the uncertainty of living in the state we're currently in after 5-7 years that has given me pause. If that timeframe passes and we're here longer term, moving to another neighborhood or the suburbs (ehhh) would be a luxury move, not a necessity.
The DFW housing market is a bit nuts. I certainly don't anticipate 10-13% YOY growth to continue until 2024, but barring a 2008-level event, expecting decent appreciation on a property that's in a neighborhood that's showing signs of heating up at a pace beyond the rest of this market isn't out of the question.
The question I'm confronting is whether it makes more sense to pay less on a 30 versus the 15 and invest the totality of the difference (largest risk is the discipline to not blow some of the difference, of course).
And if any of this sounds dumb, please, by all means, be blunt. I've been knee-deep in a housing search for all of 8 days.
I'm totally fine with it being hit or miss, it's great to have some kind of easy to access value estimate. I'm NOT ok with them adjusting the entire valuation history. When I bought the house it was zestimated at 330K or so in March 2016. Looked at it just now and it says March 2016 value was 311K.
Ron Mexico
Member
Under the assumption that your debt-to-income ratios will fly for both 15 and 30 (as the 15yr will be a larger amount per month of course), the question would be how much do you value flexibility versus pure cost savings.
While there's nothing technically preventing you from paying a 30-year note on a 15-year schedule, the 15 year would force your hand in exchange for a modest break on the interest rate.
Could you make out by investing the difference and maintaining a 30-year note? Sure. But you're also introducing a number of variables into the equation as well (your discipline, the returns on these other investments, etc).
Like the others, I wouldn't put a huge amount of stock into recent buying trends, as historically real estate has appreciated at a much more modest rate over long terms. (My advice always skews on the conservative side as well, so take that accordingly)
It's the same thing when factoring in a down payment-- nobody likes PMI, but dollar for dollar, an FHA loan from even a year ago is hanging APR-wise with a conventional 30-year conforming mortgage today. Now, I don't expect rates to increase as quickly as they have in the last 9 months or so, but these are things that should factor into your decision making as well.
Best of luck!
I think the idea that this was a great "forever house" - it's big enough that we have all the space we need, this neighborhood is going gangbusters and it's a lovely part of the world. We also bought when the market reached rock bottom and got an absolutely fantastic deal in hindsight, even though we suffered a bit while selling our old place.
D
Deleted member 47027
Unconfirmed Member
I wouldn't expect 10-13, since supply is so low however and there's no reason for it to go up for the next few years, I would think you'll be sitting a lot prettier than you expect.
DFW area has good folks in charge of it on the real estate side. Builders...not so much. They simply won't build the starter homes people need.
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