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Buying a house...


Knucklehead97
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4 hours ago, Sir Sam said:

 

More regional thing, California its fairly common.

 

Yes, don't expect the landlord to provide a refrigerator/washer/dryer in San Diego.  Do expect a range, oven and a dishwasher.  All fairly standard.

 

Also expect to pay $2200 a month (minimum)  for a 3 bedroom, 2 bath condo and more for the same size house.  Hey - San Diego is not Alabama or most of the rest of the country.

 

That said, both Anita and I have been willing to provide a refrigerator, if the tenant asks. But if it breaks in 5 years, well, buy your own new one.

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5 hours ago, Knucklehead97 said:

Sadly terrible. They must of been using a good camera... Cause it was not that nice at all in person. Floors were scraped up, it was across the road from the biggest Section 8 housing complex I've ever seen. And it had a weird scent to it. Also took the rental agency 3 days to return my call on Monday.

 

 

Knucklehead,

 

Not to worry, you are learning important lessons about housing.  Most important, you are looking at the LOCATION of your rental and its neighborhood.  Much more important than just how much $$ it cost.  Lots of people offering junk for lots of money out there.  Cars and housing both.

 

A smart landlord is not just looking for top dollar rent only.  It is the long term costs that are/should be important to the landlord.  I for one am willing to offer good value rent pricing in exchange for a good tenant who takes care of the property.  Over time, I have found that gives the best return for me.

 

Find a well cared for house at a fair price, not a cheap price, pay the rent on time. And when you have an issue with the house a good landlord will fix it promptly.  But don't be a pain on small crap.  Take care of it yourself.  Believe it of not, Anita had one tenant - a female college professor - who expected us to change her light bulbs.  NO, we are not doing that.  Same lady asked us to feed her cat while she was on Vacation.  Did that once, for her.  But never again.  After 2 years, Anita did not renew the lease.  Any wonder why?  The lady tenant was a pain in the back side.  Paid her rent on time, but a pain in the U No What.

 

BTW, she also got fired from the University, because she was a PAIN. 

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Ya.....replacing light bulbs, there are some problem tenants out there and there are some annoying tenants. 

 

I specifically called out in my lease that lightbulbs were the responsibility of the tenant. I also called out that they had to be replaced with equal quality/type if they were replaced. 

 

That being said most everything switched to non replaceable LEDs so it ought not to be a problem for a decade at least. 

 

I get to hear all sorts of crazy things that have happened to other landlords and use them to update my lease with some specifics, if you are ever looking for interesting reading land lots forums have some good stuff. I read this one a lot:

 

https://www.reddit.com/r/Landlord/

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I sign on a lease Saturday! 3 bed, 1 bath, cute little house right up the road from my job. Super clean inside and the renters are really nice and have given my fiance and I freedom as far as the yard and interior of the house. We can paint it, plant gardens, whatever. Has a carport, big shed, and a full concrete driveway. Very excited to get moved in!

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  • 4 months later...

So back to this... My landlord is wanting to sell me the house that I'm currently renting. 3 bedroom, 1 bath, perfect little starter home in a great area. Me and my wife LOVE the house. It needs some updating, but is very comfortable and nice as is. Y'all have seen where I was talking about the wiring being outdated and that I am planning to update it if I buy the house. Last time it was appraised by a realtor it appraised for 98k. Which in my opinion isn't bad. My landlord is talking about using only one realtor to save on costs for both of us, which I understand. Since I've been living in the house for 5 months and kind of know it's quirks, do you think I need to pay someone to appraise it for me or is using one realtor a good idea? I think it's going to be much simpler since I already live in the house. But I want to make sure I cross my t's and dot my I'd, ya know?

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Realtors negotiate sales.

 

Appraisers appraise. 

 

 

Write your landlord an offer contingent upon appraisal and financing. 

 

The last thing you need is a realtor. 

 

 

If your landlord accepts your offer, you pay for an appraisal and survey, your lender will demand both............find an attorney for the closing, they will handle title and so forth. 

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Realtors negotiate sales.
 
Appraisers appraise. 
 
 
Write your landlord an offer contingent upon appraisal and financing. 
 
The last thing you need is a realtor. 
 
 
If your landlord accepts your offer, you pay for an appraisal and survey...........find an attorney for the closing, they will handle title and so forth. 
Solid advice
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12 minutes ago, Jeep Driver said:

Realtors negotiate sales.

 

Appraisers appraise. 

 

 

Write your landlord an offer contingent upon appraisal and financing. 

 

The last thing you need is a realtor. 

 

 

If your landlord accepts your offer, you pay for an appraisal and survey, your lender will demand both............find an attorney for the closing, they will handle title and so forth. 

Gotcha. So I have a couple options for the mortgage loan. Considering I'm a manager for Publix, I have access to the Publix Federal Credit Union. My only issue with that credit union is the nearest office is 6 hours away so I would have to do all of this on the phone. Would you recommend I go to a local credit union that I can visit and talk with in person during all of this? 

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10 minutes ago, Knucklehead97 said:

Gotcha. So I have a couple options for the mortgage loan. Considering I'm a manager for Publix, I have access to the Publix Federal Credit Union. My only issue with that credit union is the nearest office is 6 hours away so I would have to do all of this on the phone. Would you recommend I go to a local credit union that I can visit and talk with in person during all of this? 

Phone and email...........done everyday by every lender.

 

I'm pretty sure that Publix takes good care of their own, if it were me, I'd start there.

 

These people will walk you through all of this. 

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One other thing to consider. Get a home inspector! Not through the agent or landlord but on your own. Well worth the piece of mind. I realize you’ve lived there since January but there are always unseen  issues that may arise. It will give you some more leverage as well. Furnace, roof, water issues, electric, foundation.....

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1 hour ago, 13 Legion said:

One other thing to consider. Get a home inspector! Not through the agent or landlord but on your own. Well worth the piece of mind. I realize you’ve lived there since January but there are always unseen  issues that may arise. It will give you some more leverage as well. Furnace, roof, water issues, electric, foundation.....

Already on the list! 

 

Game plan is that Monday I am calling the credit union to get pre-approved. 

 

When my wife and I get back from Gulf Shores next week the landlords realtor will be coming to tell us both what the price should be based on the market (this is what my landlord will be basing her asking price on). After that I will be getting an outside appraiser to give me my starting price and an inspector to let me know anything that I don't already know. From there will be negotiating. And yes I will have an attorney present during the paperwork parts and ect. My landlord is very eager to sell due to her inheriting this house from her mother in the first place and not really wanting to manage the whole renting process. I've already contacted my insurance provider and they have approved me for house insurance as soon as I own it. 

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One of my coworkers recently was given the opportunity to buy the condo he's been renting for the last five+ years. His bank insisted on an inspection before to probing the mortgage, which he grumbled about because he didn't think he'd need to pay for it. The inspector found critters in the attic crawl space they didn't know about, and some related rot and chewed wires and things that weren't a huge deal to take care of immediately, but could have gotten very expensive in a hurry if not addressed. He had no idea... but he's happy about having had the inspection now. 

 

My bank was offering 60-second mortgage pre-approvals online so I figured I'd check for the heck of it. I came in at 189k approval... that sounds good and all but mobile homes go for $400k+ in this town though, so... Yeah. Don't think that's happening any time soon. You seem to have had a pretty good deal land in your lap though. 

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I would advise against using one realtor as the old saying “You can only serve one master”. Since your landlord hired the realtor she will look out for her best interest and yours will mostly not matter.  Also on the saving money you might want to check and see what percent the realtor is taking from the sale of the house.  I’ll bet she is getting more then 3%, but then I could be wrong.

 

 I would get your own inspection as other said and don’t be afraid to make the landlord fix the stuff that is wrong with the house.  This is a business deal at the end of the day. 

 

As for the appraisal the bank will order one. They have to make sure the house is worth what they are loaning you.  

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6 hours ago, Jeep Driver said:

Realtors negotiate sales.

 

Appraisers appraise. 

 

 

Write your landlord an offer contingent upon appraisal and financing. 

 

The last thing you need is a realtor. 

 

 

If your landlord accepts your offer, you pay for an appraisal and survey, your lender will demand both............find an attorney for the closing, they will handle title and so forth. 

 

All correct, and excellent advice.

 

Most realtors, in fact, aren't qualified as appraisers.

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4 hours ago, Knucklehead97 said:

When my wife and I get back from Gulf Shores next week the landlords realtor will be coming to tell us both what the price should be based on the market (this is what my landlord will be basing her asking price on). After that I will be getting an outside appraiser to give me my starting price and an inspector to let me know anything that I don't already know.

 

 

Before you get any deeper into this, you need to realign your thinking. The landlord's realtor works for the landlord. He or she gets paid a percentage of the selling price. It should be obvious, then, that he or she has ZERO incentive to in any way help you buy the house for a lower price. The landlord's realtor CANNOT tell you "what the price should be."  He or she can tell you what he or she and the landlord would like the price to be. You do not have to accept that as gospel, and you should not.

 

This is why you need a qualified appraiser. You tossed out a number of $98k. Suppose you think you're willing to pay $98k for the house. You go to a bank, and they don't think the house is worth $98k, so you're not getting a mortgage.

 

As Jeep Driver said, realtors sell. Appraisers appraise. But even an appraiser can't tell you what the price "should" be. All an appraiser does is look at the house, and then look around the neighborhood to find what roughly comparable houses have sold for recently. You'll hear the term "comps" thrown around. That's shorthand for "comparable values." But virtually no two houses are exactly the same, so the "comps" are only an approximation. If the owner's realtor thinks the house "should" sell for $98k, that's a starting point. Unless your appraiser thinks it's worth more, then you use the home inspection report to negotiate down from the $98k starting point.

 

For example, you've told us that the electrical system is substandard. Make sure the home inspector takes a close look at that. If it's unsafe, then get a couple or three estimates from licensed electricians for bringing it up to snuff. Don't figure on doing it yourself. Maybe you have the time and the skills, but you have a job, and a life. If you figure only the cost of materials, then basically you are giving the seller the value of the labor, when that should be factored into the selling price.

 

Other things to be sure the inspector looks at:

  • Roof. Be sure it's in good shape. Check how many layers there are. Codes only allow two layers, but a new roof put over an existing roof never lasts as long as doing a tear-off.
  • Furnace or boiler. How old is it? What;s the burner efficiency? Has it been maintained regularly?
  • Plumbing. It's an older house, right? My house is 69 years old. All the water piping and most of the baseboard heating piping is copper. The water here is hard. The copper pipes are beginning to spring leaks, just due to age and chemical action. If you have copper joining to iron or steel pipe, look for corrosion. Especially check for lead pipes.
  • Is there a masonry chimney? If so, does it have a tile-lined flue? Check the tiles for cracks. Check the masonry to see if it needs to be repointed.
  • Lead paint. You're going to be starting a family. Lead paint is bad for children. Some states require lead paint to be abated. Who pays for that is part of the negotiations.
  • Ditto for asbestos. You may have it on pipes or on or in the furnace or boiler.
     
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3 hours ago, Knucklehead97 said:

https://www.zillow.com/homedetails/1212-Robert-E-Lee-St-Leeds-AL-35094/973174_zpid/

 

I'll get some better pictures later due to this being the ad from before I started renting the house. The pictures on the ad don't do the house justice. It's really nice inside and out. 

 

I see a bunch of crap on the roof, and I don't see gutters. That stuff on the roof holds moisture and accelerates deterioration of the roof.

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Oh snaps, first off:

 

You work for Publix, fellow southerner!! Hell yeah!

 

sexond off, that’s an amazing price man, seriously.

 

Third, as stated, a “realtor” isn’t really needed, since you know the landlord, and you could cut out the middle man, just my opinion. Why pay points to someone.

 

Now, all honesty, I just skimmed the post. Didn’t read in depth.

 

i agree on the home inspector, and you’ll need it if you’re doing an FHA loan.

 

On that note, you work for Publix, which means, you’re in a hurricane prone area. Spend the extra couple bucks and have a wind midigation done on the roof!!! Seriously. Even if it’s not up to spec [not sure about Alabama, but in Florida we go by Hurricane Charlie code] it’ll save you coin on yearly home insurance.

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5 hours ago, BustedKnuckleJK said:

Oh snaps, first off:

 

You work for Publix, fellow southerner!! Hell yeah!

 

sexond off, that’s an amazing price man, seriously.

 

Third, as stated, a “realtor” isn’t really needed, since you know the landlord, and you could cut out the middle man, just my opinion. Why pay points to someone.

 

Now, all honesty, I just skimmed the post. Didn’t read in depth.

 

i agree on the home inspector, and you’ll need it if you’re doing an FHA loan.

 

On that note, you work for Publix, which means, you’re in a hurricane prone area. Spend the extra couple bucks and have a wind midigation done on the roof!!! Seriously. Even if it’s not up to spec [not sure about Alabama, but in Florida we go by Hurricane Charlie code] it’ll save you coin on yearly home insurance.

 

1. While I'm not saying that Knucklehead needs his own realtor, points are not paid to either the buyer's or the seller's realtor. Points are paid to the bank, as part of the mortgage.

 

2. The realtor's fee is split between the buyer's and seller's realtors. Around here, the fee is typically 6 percent of the selling price. If the buyer also has a realtor, then 3 percent goes to the buyer's realtor and 3 percent goes to the seller's realtor.

 

That said ... I see no reason for Knucklehead to bring in a realtor at this point. The role of a buyer's realtor is to find him a house. That's already been done, so a realtor for Knucklehead at this point would be about as useful as tits on a boar hog. It's an appraiser he needs, not a realtor. And a home inspector.

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What is the appraiser's job? to satisfy the lender, no one else, that's it. 

 

 We judge for ourselves everyday on everything we buy what something is worth to us. 

 

If the house is worth 99K to the buyer and to the seller.......they agree..........then it's worth 99K.

 

Lender needs to be satisfied that what they are lending money on is solid, worthy of it's value. 

 

Once an offer is signed- if the house appraises for 110K, solid deal, buyer is buying into positive equity and lender is more likely to approve. If house appraises for 89K, lender will reduce the amount they will be willing to lend or they will refuse to lend.........this gives buyer the ability to back out. 

 

 

And remember- you can home inspect yourself right out of a deal. Seller is not obligated to fix anything. Seller may offer a couple thousand dollars of credit for repairs but you will get to the point where the seller will feel abused and he/she will simply refuse....this also kills a sale. 

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10 hours ago, BustedKnuckleJK said:

Oh snaps, first off:

 

You work for Publix, fellow southerner!! Hell yeah!

 

sexond off, that’s an amazing price man, seriously.

 

Third, as stated, a “realtor” isn’t really needed, since you know the landlord, and you could cut out the middle man, just my opinion. Why pay points to someone.

 

Now, all honesty, I just skimmed the post. Didn’t read in depth.

 

i agree on the home inspector, and you’ll need it if you’re doing an FHA loan.

 

On that note, you work for Publix, which means, you’re in a hurricane prone area. Spend the extra couple bucks and have a wind midigation done on the roof!!! Seriously. Even if it’s not up to spec [not sure about Alabama, but in Florida we go by Hurricane Charlie code] it’ll save you coin on yearly home insurance.

Thankfully I'm In the upper area of Alabama! Hurricanes have never really affected my area. Sometimes there's a tornado, but not often. Wind mitigation was on my list of upgrades my wife and I plan to do to the house. The roof was professionally replaced in 2017 so I would hate for the next high wind to rip it off. Ever since we moved in here we have started making a list of what we want to change, due to us wanting to own the house ever since we moved into it. The interior has been completely remodeled as well with new hardwood and paint. I've been in the attic and underneath the house and both look great. The joists all are in perfect condition and there's no sign of rot anywhere. But I'm sure the inspection will show something. All in all if we can agree on a good price (90-100k) and there's nothing life threateningly wrong with it, then I do plan to go with it. The area this house is in is GREAT and houses are only getting more expensive around here. Probably the biggest money-saving perks to this place is that it comes with ALL the appliances that were included in the rental lease and it comes with a big shed and carport. Lastly, we're already 100% moved in and very comfortable. Calling the credit union tomorrow and getting them to walk me through it. I'll let y'all know what the appraisal and inspection comes back as :L:

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