Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

First time home buyer.

DH and I are looking into buying a house. We really want that tax bonus!! Anyway, we haven't made an offer yet, the realtor keeps telling us to make an offer contingent until we get financing. What does that mean? And the house is $54,900 what would you start out at?? Its a 2 bedroom, on 1 acre, with 2 car detached garage, it needs no work done to it, we can just move right in, but if we can get it cheaper why not?

Answer Question
 
Ebony83

Asked by Ebony83 at 4:32 PM on May. 5, 2009 in Money & Work

Level 1 (0 Credits)
Answers (13)
  • Wow where do you live?? That is SOOOOO cheap!! We're looking into buying our first house too (providing we don't get orders to move away per the Navy) and I can't find anything less than $150,000. You should call your bank and ask them to give you a pre-approved amount. I called and he asked me how much we made, and our bills and then gave us an amount. The amount can change depending on your credit and stuff, but it shouldn't change to much. Good luck!!!!
    AnnHenderson

    Answer by AnnHenderson at 4:52 PM on May. 5, 2009

  • Go with something like 40,000. Remember you can always go up, but once you start, you can't really go down.. so offer low, and be flexible. Make sure to have it inspected for rot and stuff like that. Does it need a new furnace? New hot water heater? Anything like that? I'm not sure what house prices are where you are at, but here in Maine 54,000 for an acre, and a two bedroom usually means there's something wrong with it. If it's an older house check for water damage on the ceiling and walls too. It might be leaky.

    As for offer contingent, I'm not sure, ask your real estate agent. He should be able to explain it to you.. he wants to sell you the house because he gets money from the sale. GL.
    BisketLiss

    Answer by BisketLiss at 4:53 PM on May. 5, 2009

  • lol! I live in Indiana. Houses don't really cost to much around here.
    Ebony83

    Answer by Ebony83 at 4:53 PM on May. 5, 2009

  • Haha!! I'm from Anderson!! Where in Indiana are you?
    AnnHenderson

    Answer by AnnHenderson at 4:59 PM on May. 5, 2009

  • Should've say I live in South Carolina now!

    AnnHenderson

    Answer by AnnHenderson at 4:59 PM on May. 5, 2009

  • Get it inspected first. When you go to make an offer have a list of everything that is wrong with the home/property. Even a list of the possible cost of fixing the problem. Then make a low ball offer. It's best if you have the money right then and there to pay for it, so it might be best if you can get a loan first.
    Erica_Smerica

    Answer by Erica_Smerica at 6:21 PM on May. 5, 2009

  • You really need paperwork showing you are good for the money and have a good earnest money check to present at time of offer. at that price I would take 15% off the top and ask for closing assistance, warranty and inspection. see what they counter at and go from there. keep in mind your contingency needs to remain in effect until the house appraises for at least the value you come to agree to and only after the inspection. if the house needs 30K in structural work, move on.
    The contingency will always let you out if anything happens and does not bind you to the contract, but showing the money up front taunts the seller into knowing you are serious and have a loan. go to the assesors office and ask for the tax assesment on the property and have the correct address with you that should give a rough idea of what the house should go for in today's market if the house is a short sale bid cheaper and see if you can close in 10 dys
    Anonymous

    Answer by Anonymous at 6:51 PM on May. 5, 2009

  • and yes, you can go down on your offer especially if the inspection shows you need 25K in work and the tax assesment is really low. if your inspection comes in showing this and your appraisal comes in at say 40K the house is only worth 15K now. with that knowledge on paper you can re-counter with a lower bid simply stating with contingency still in effect-the house according to your findings is only worth this amount. chances are very good this house is already paid off, try and find out the reason the house is up for sale and don't take the realtor's first reason as the truth. realtor's aren't called bottom dwellers and blood suckers for nothing. visit the neighbors and ask them for a history on the house explaining you are interested in buying it. you'll be amazed at what they tell you.
    Anonymous

    Answer by Anonymous at 6:55 PM on May. 5, 2009

  • check out your local extension office and ask for a flood map, if the area is prone to flooding walk away. make sure you get termite and and any inspections for any wood destroying organisims like mold mildew moisture and water damage, if you have any of this on inspection walk away you'll never be able to resell it or handle the smell. also check out the school systems, if you are in a bad school district you'll never be able to resell it and the time to think about selling your house is the day you buy it. i can't think of anything else right now, good luck and if you can don't let the sellers know under any cirumstance you are a first time home buyer, they will try to take advantage of you every way they can. ask for copies of utility bills to see how efficient the house is, a cheap house with a $300 monthly heating bill is not a deal.
    Anonymous

    Answer by Anonymous at 7:04 PM on May. 5, 2009

  • Where is the house you are looking at???
    Srich0625

    Answer by Srich0625 at 7:56 PM on May. 5, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.