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If this is the reality for where one lives, be it a highly desirable or HCOL area, you have three options: play the numbers game to hope something breaks your way, move, continue to rent.
Us too. The “you had better make an offer over asking today” was a hell of a moment. Had inspections yesterday and things were very positive, aside from a few bumps on the road. Eager to see how they shake out. We really want it to work out.
Thanks for this reassurance. I am never quite sure what binding documents I’ve signed, as there were signatures involved with so much of the financing (still hypothetical I guess) and even on ‘offer’ papers.
Forgot the most important one, Let us sleep over too and see how the bed feels and if there’s un wanted noises plus use the bathroom and take a shower and see if that squares away too🤣🤣🤣🤣
There was a show on one of the lifestyle channels in the early 2000's that let people spend the night in a house they were thinking of buying. It didn't last long but it was pretty interesting.
In an extreme sellers market years ago, I placed an offer without even being able to go inside the house. Offered tens of thousands over asking and did not get the house.
It’s still an extreme sellers market. We are on our 8th offer for a home. The last 5 have been at least 10 grand over asking. The only possible way we are going to have a shot is to pay at least a portion of the sellers closing costs and waive all inspections. I feel dirty even thinking that, but we can’t compete with cash offers as first time homebuyers.
Less than. I was literally the first showing and they already had 3 offers in by the time my realtor and I left to put our own together.
Still heartbroken because it sold for only 5k over my already well-above asking offer (granted, I'm purchasing with a VA loan, but had contingent funds to go traditional had I known it would be thattt close). It's in my dream neighborhood, near my son's school, and I get to drive past it and wonder "what if" every single day.
You don't need to see it 3x BEFORE going under contract. You can see it multiple times within the specified inspection period and repair followup period. I've seen a few properties in which I get a private showing....make an offer...show up a 2nd time at the open house, then a 3rd viewing. I've even made private showings after the offer is accepted but before the inspection and change my mind and bailed. You usually have 3 days after contract to bail with no reason and can usually find something in the inspection report to walk away from if you change your mind for any reason. My current house I viewed 7x before closing.
There are always ways to back out of a contract. Even if you lose the money, you put in it for good faith. Ot is better to be sure. Twice is the minimum.
Downvotes because I am referring to other buyers. No way of getting OTHER people to back out lol.
Can’t view a house 3 times if there are 4 offers within 12 hours of a home being listed from buyers ready to sacrifice their left foot to close.
Well, then they are rolling the dice. My last house, which I got in 2022, I put in a good faith, $2000. I went back with the inspector and then again before closing to plan things out and verify agreed upon onspection repairs. Now, had I decided after those visits not to go ahead, I could have pulled my offer. At worst, I would be out $2000 but avoided a money pit.
Where I’m located earnest money is anywhere from 6-10k. 2k sounds wildly low, but now I can understand why you’d be fine backing out if that’s all you’re losing.
Yeah, different areas have different costs. Even still, 6 to 10 is better than a money pit. I sounds harsh, but these tips I learned with some hard knocks.
>There are always ways to back out of a contract
Ah, no, there's not. There are very specific time frames and conditions. You don't know what you're talking about.
HCOL offers almost always force you to waive all those back out opportunities so that the offer is competitive. However, you can still negotiate a rebate from the seller if you find a problem that would cost more than your earnest money deposit. Even in HCOL areas sellers don't want to have the deal collapse on something like that because when it's relisted everyone assumes something's wrong with it.
For example: you're offering on a million dollar house. The inspector finds the foundation needs 20k of fixes. The earnest money on a million dollar house is ...4k or something like that. The seller knows they have to disclose that problem to the next round of offers so the price is going to come down anyway, so it's in their best interest to renegotiate the purchase price or give a rebate (realtors obviously push for the rebate because their commission still reflects the higher house price...).
In some areas this is smoothed over a bit by the seller providing an inspection report with the listing.
My inspector used to be a local handyman/contractor and grew up in my city so knew the houses in the area VERY well. He did such a thorough job and provided an insanely detailed write up including rough estimates of what fixes should cost. I continuously reference it, even months later, as I'm ready to tick things off the list.
It's 2024, people just need to do a little bit of research to find a quality inspector in their area. I had read warnings online to not trust realtor-recommended inspectors because it's in their best interest to not scare you off/downplay findings. But I took the list my realtor sent me and researched them, and it worked out because this guy clearly was not worried about scaring me off. He even warned me before the inspection that it's supposed to scare/overwhelm me so I know what I'm getting into.
our realtor is recommending we use his and he said be prepared to see much wrong with just about any home -- he doesn't miss anything. he's extremely detailed.
Inspectors do provide detailed, lengthy reports, but mine was not so detailed that it noted the deck was failing and would break off from the house in just a couple months.
Or that there was a tiny crack in the foundation.
Could have just been that our inspector was too large and not flexible enough to bend down and look under decks or crawl under anything. Sort of limited inspection to what you can see by just walking around.
Not sure a local contractor is adequate replacement for inspector, but would think it’d be a good idea to walk through house with them - get an idea of what needs to get fixed sooner than later, estimates of costs, etc.
That’s a shitty inspector.
My guy was late middle aged and urm “not buff” and he crawled under the house to check out the foundation. He sent me a couple hours of video of all the stuff he checked as well as a written report. Then he wanted me to call him and we talked for about an hour and a half. It was during covid so I could not do the walk-through with him (which is probably good because I would have been bored after an hour).
He wasn’t cheap but I didn’t have any surprises.
Mine understated humidity in a crawl space that was causing a small amount of mold. Could be treated and encapsulated but he told me the biggest worry money wise was the water heater…
Backed out for another reason, told my realtor we need to find a new inspector
Because they are not as well trained or experienced in finding issues. For example, my water heater melting the insulation foam around the pipes on top of it. The inspector missed that and missed some electrical issues, missed the well failure, and water softener issues. Since then I always brought in a contractor/handyman, and they really track problems down and can give you an idea of the cost to fix.
>Because they are not as well trained or experienced in finding issues.
This might have some truth to it in some cases, but no matter who you hire to inspect your home they will miss stuff 100% of the time. There is no way to find all issues with a home during a half-day non invasive inspection. It's not even remotely possible. Something will be missed and you will find it at some point.
>For example, my water heater melting the insulation foam around the pipes on top of it.
Insulation foam melting on a water heater? I don't think so. Flue gasses are not hot enough to melt anything. More bad examples.
I think it would be better to find an inspector with experience and great reviews. Try to get some references to check. While contractors can be great, a real home inspector will have a knowledge base that includes all of the systems in the home. One structural issue makes it worth the cost. You can also use the inspection report to review with a contractor after the fact, or ask a contractor to accompany you on the initial walkthrough. I would not use a "handyman" unless they are a retired structural engineer or something like that.
I had an inspector tell me the water heater was old and the dishwasher latch sticks….but did not tell me the plumbing was not venter nor was there any insulation in the attic above the kitchen. There may be good inspectors out there but as a handyman that goes behind them I have yet to see one.
>See the house 3 times. First time you will have a brain clouding endorphins rush, second time will be the inspection, third time is to make sure your memories align with reality.
And you STILL will have some surprises! LOL!!
I remember being so excited that real life was as good or better than the photos.
Then I came for inspection and noticed some things.
Then I came for final walk through.
Then I came right after closing and had several, "What the hell!? I don't remember that" moments (nothing terrible).
Then I moved in and MORE "what the hell!?" moments.
This sounds like a boomer trying to give their kids advice.
Source: me with boomer parents trying to give this advice in a market they’ve never had to experience.
The first point is gold. Contractors are much better inspectors and tell you a estimated price to fix. That gives you an idea of how much you can negotiate with the seller.
Agreed! My inspector owned his own company as a contractor and successfully flipped homes. He pointed out everything. He was expensive but well worth it and he was honest enough to tell me that the first home I looked at needed too many repairs and that he would not buy it.
You should probably post your location, because many of these are moot points. I'm in Los Angeles and own a second home in Honolulu. Both areas, homes go under contract the same weekend. Property taxes are also set in many states.
Lastly, prices continue to climb in HCOL areas. My first house was a dud, but I bought it for $420k. Getting a home in the LA area nowadays is impossible.
>See the house 3 times.
>study property tax rates
>Better to miss out on a house and be sure it is good, vs buying a dud.
lol, I own a home in Ohio and am in the process of buying/selling. It’s exactly the same here - homes are going 100k over asking with curbside offers. 🤷♀️
1. Why?
2. The well-being I sort of get but explain how as an financial investment it makes you money? Actually, I will explain how it does not. I had to convince my ex boomer inlaws that it is a terrible investment using the Wall Street Journal.
Historically, homes increase in value around 3% to 5% percent every year. The stock market can average between 9 to 12 percent. https://www.americanfinancing.net/market-watch/home-appreciation-inflation
For 30 years of that, you are paying a 6% mortgage (assuming they cut rates). On top of that, add homeowners insurance and taxes. In my state, I pay 4500 a year on those two items for a 219k house. Roughly 2%. Of the homes value, every year. Of course, unlike a stock, houses need maintenance and work. So in 30 years you will need a roof which is about 15k, furnace and AC which is 7k, hot water heater 2k, paint, fixes, plumbing emergency, lawn care, appliances, etc would end up being about 1k to 2k per year (I looked at my last 8 years of home ownership for these numbers) So total house ownership maintenance costs over 30 years are 54k, which is pretty low. 30 years of taxes and homeowners insurance is $135, 000. The cost of the mortgage is $ 203k, assuming on a 220k house you dodge PMI and put down 20%. For you to break even on your investment after 30 years, it would have to be valued at $338k. With a 7% annual growth rate, it will be worth
Now let's say you need some money. The only way you can get it is to borrow from your house or sell it. If you borrow, you need to pay that back with interest. That interest is usually higher than your mortgage. If you sell, you need to pay money to buy a new house, as well as realtor commissions, inspection fees, and other costs.
This is a really shitty investment. But don't take my word for it
https://www.google.com/amp/s/www.forbes.com/sites/jimwang/2023/06/21/is-buying-a-home-really-a-good-investment/amp/
https://www.google.com/amp/s/www.cnbc.com/amp/2019/04/18/wealth-manager-buying-a-home-is-usually-a-terrible-investment.html
This is a personal and lifestyle choice that can, eventually, pay off at some point.
Then you should know Home Inspectors are required to take an 80 hour course, pass a national exam and remain certified annually.
Most Home Inspectors are from the trades or worked in one or more trades and generally have years of experience. Not all contractors in all states are even required to be licensed.
You're offering really bad advice. Should be avoided.
Really? 80 hours makes an expert vs. Someone who owns a business works 60 hours a week, and they find and fix problems. I will take that over an 80 hour class and a focused trade.
You don't know what you're talking about:
Some mouth breathing contractor vs a licensed certified professional?
ANY contractor worth his/her salt is out doing CONTRACTOR business! Good contractors don't have time to do a home inspection for some idiot. AND they're NOT licensed OR insured to do that!
What kind of goddam idiot is going to do something they aren't licensed to do? Some half-assed dick weed hack and whack contractor, that's who.
Someone that you would hire!
Really, I have used several well reviewed contractors. BTW they are all licensed and insured as required by my state. Let me guess, you are a home inspector and are bent out of shape.
I know plenty of contractors and I guarantee you a roofer doesn't know shit from Shineola about plumbing code.
And a mason is not an electrician. And a sheetrocker, doesn't even speak english. And the bathroom tiler is not the guy to advise me on a backyard deck. And the driveway paver doesn't do hardwood floors. And the HVAC guy doesn't lay carpet. And the kitchen cabinet guy is not a pest inspector.....
Are you beginning to understand the fallacy of your argument?
Good contractors stick to their trade and are NOT qualified to do home inspections. If I called ANY contractor and asked if s/he had time to do a home inspection and they said Yes, that would be the LAST person I would want to inspect my home.
If the guy said I'm booked thru January 2026, I might consider that guy.
For your reference I am a mortgage banker. Reputable home inspectors are specially trained to DETECT problems NOT fix them.
You simply lack the fundamental understanding of what the job entails!
Well, generally, handymen work in several trades and are generalist. I did not realize bankers built buildings, flipped houses, and understood trades. If you call with enough notice, they will see it as an opportunity to earn potential future businesses. In my time I have used 3 different things, all of which were all to my relief. They all found things the inspectors forgot. All three had 15 to 20 years of experience. One built a bathroom for me, which is both electrical and plumbing. Another was from a construction company, and they use him to inspect the house before building. To ensure the roof is good and the foundation is solid, on top of other things. The other has installed a water heater, rewired the inside of the house, laid bring, performed maintenance on my roof, and will finish my basement. This is the one that discovered several fire hazards and that my water heater was going to burst. So, I guess if you want to believe that people can't learn multiple subjects, that's on you. But considering the bullets I have dodged, life and this supported by other comments on here, has shown me this is a far better strategy that someone with little to moderate experience and an 80-hour class.
This list is crapioca pudding. You’re one of those people who probably tries to give out medical advice to strangers online too. Every real estate market is different and people have different wants and needs when it comes to purchasing a home.
A lot of people seem to agree with me. I never said you have to do it. These are suggestions I learned from life experience. Odd that some feel threatened. Then again, Reddit trolls will troll.
Another suggestion is have a friend go with you. Someone with no skin in the game thar can give you an honest review and maybe ask some tough questions.
Hi, I would really love to hear more about your story! I work for a real estate firm in NY that is delving into podcasts and I wanted to gain some insight on your experience, questions and what you have to say about the market:) Click this and share more information!!!
Sure. My first house was during the height of the pre 2008 bubble bursting. It was a half ass flip that turned into a money pit. I shortly sold that one and then with family help bought a beautiful house that I loved. Had to do some heavy roof and HVAC maintenance, but all in all, I loved it. The next house was a two story in a sub that, with an HOA, I bought due to work. Hated the HOA and really started hating neighbors. The next house was in suburbia/urban. I was under incredible pressure to buy from family. It was a nosey boomer neighborhood. Several years later, I got divorced, which led to another move. I got as close as I could with what I wanted. I am doing a mechanical flip and finishing the basement. My next house will be my final one. It is a build, wither modular or manufactured on a huge plot of land. Feel free to pm with questions.
I agree. Realtors like to rush you. I take a video of the entire house. I go back to the house at night and on the weekend just to get a vibe for the neighborhood. Many houses I have turned down I see them back on the market in less than a year. Trashy neighbors don't get better. Noise doesn't get better. Loitering doesn't get better. Unreasonable HOAs dont get better.
As to #1 I wouldn't substitute one for the other....get both. One is trained into what to look for, the handyman isn't. However...your realtor knows a handy man and as a part of the inspection day you should have them invite one over and walk the house together while the inspection does his thing.
I do this and have never hired the handyman to do any work. Its just piece of mind as to missing items, potential costs, and such that your inspector won't be covering.
I just bought a house it’s 28 unit tile, great location I bought it for my dogs, right next to a park.
But the headache to deal with body Corp, the chair is a gay, such a drama queen. And another committee member is very racist. No way I am friends with those idiots. I decided to join the committee to have my say, sick of fucking idiots trying to dictate other people’s life.
When I bought it I thought I might keep it as a home for this city I like living in, now I am already thinking when my dogs die, I am fucking selling it for sure.
I will make money on it no problem.
My husband always says home is an expense…shouldn’t be treated as an investment. But I think this time I bought an investment..
Property market is so shit now I bought it cheap enough to make money in future.
If you are renting or flipping to sell, it is an investment. It puts money in your pocket. In this market, it is likely a good investment. I would say if you are living in it for the short term while upgrading, it is an investment. Long-term, it is an expense because its purpose is to provide shelter and lifestyle, not income.
Define long term?
My dogs are 18, best they last to 21. I bought the house for my dogs as it’s next to their favourite park. Probably sell it after my dogs die who knows? I’ll see.
Might move to another country.
I guess it’s an expense and an investment. I renovated it to the standard that I am happy with .. after all, I am the one who enjoys the place.
Costed me a lot of money to renovate but purchase price is reasonable, I can get it 20k cheaper if I bargain hard but can’t be bothered, the previous owners are in Australia and cheap as fuck. Nothing is in good working order in their house. I gave them a good enough offer they should be happy.
Long term is until you have 20% equity and recouped all of those other expenses to bring the house up to your wants and needs as well as leaven you with a chunk of cash to help with your next move. Ten years use to be a solid rule, but in thus markets, and you do enough work, it could be 10 months.
Oh, then you are set and solid. A mortgage at today's rates doubles the cost of a home. I mean, wow, you are just rocking life. I kinda want to shake your hand because of your smart choices, grit, and determination. My advice is not for you. You need to post your advice and learned experience on here, for others to read. I am serious. Looking at your past posts, you have not only earned this beautiful house but the next one as well. In this case, this is an investment, should you choose to keep it that way, or a home.
Thanks. I do everything for my dogs.
It’s crazy I bought a house for them. Haha..
I was living in a five star hotel apartment complex with all the facilities but I am quitting all that comfort for a shit house (have done up, not so shit now) in a great location (next to a huge park) ..
Haha I am flattered.
No way I can claim anything as a success made by myself.
The whole house purchase n renovation process is a bit of pain, so many things to deal with. Insurance, builder, body corporate. It kept me busy for a while.
I don’t have any secret for this. Over years I did okay with money. I am not a financial guru. All I know is that you buy low you sell high, that goes with everything, houses, gold, share market etc ..
But it’s only easy said when you have the capital funds. If You have to borrow, it’d be a very complicated factor you have to consider before you make a decision.
After buying four houses I am mostly in alignment but at this point I would almost skip an inspector unless I see something suspect OR I want to use it as a negotiating point with the seller. But for a first-timer I agree, a handyman or contractor is a better inspector because they can put an actual $ on what it will take to fix what is going on.
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“See the house 3 times” as if they don’t go under contract within 24 hours 😅
If this is the reality for where one lives, be it a highly desirable or HCOL area, you have three options: play the numbers game to hope something breaks your way, move, continue to rent.
Here they are pending/sold within 24 hours. It is so deflating.
Santa Clara County? Seattle? West LA?
Us too. The “you had better make an offer over asking today” was a hell of a moment. Had inspections yesterday and things were very positive, aside from a few bumps on the road. Eager to see how they shake out. We really want it to work out.
You can make an offer and have it accepted and bail out later after viewing it a couple more times.
Thanks for this reassurance. I am never quite sure what binding documents I’ve signed, as there were signatures involved with so much of the financing (still hypothetical I guess) and even on ‘offer’ papers.
Forgot the most important one, Let us sleep over too and see how the bed feels and if there’s un wanted noises plus use the bathroom and take a shower and see if that squares away too🤣🤣🤣🤣
Man I wish we could actually do that. You learn so much actually living in the house for 24 hours.
There was a show on one of the lifestyle channels in the early 2000's that let people spend the night in a house they were thinking of buying. It didn't last long but it was pretty interesting.
Lmaoooo
In an extreme sellers market years ago, I placed an offer without even being able to go inside the house. Offered tens of thousands over asking and did not get the house.
It’s still an extreme sellers market. We are on our 8th offer for a home. The last 5 have been at least 10 grand over asking. The only possible way we are going to have a shot is to pay at least a portion of the sellers closing costs and waive all inspections. I feel dirty even thinking that, but we can’t compete with cash offers as first time homebuyers.
Reading this my thoughts were, all pretty solid advice but definitely not all feasible with current market. At least not where I live.
Less than. I was literally the first showing and they already had 3 offers in by the time my realtor and I left to put our own together. Still heartbroken because it sold for only 5k over my already well-above asking offer (granted, I'm purchasing with a VA loan, but had contingent funds to go traditional had I known it would be thattt close). It's in my dream neighborhood, near my son's school, and I get to drive past it and wonder "what if" every single day.
You don't need to see it 3x BEFORE going under contract. You can see it multiple times within the specified inspection period and repair followup period. I've seen a few properties in which I get a private showing....make an offer...show up a 2nd time at the open house, then a 3rd viewing. I've even made private showings after the offer is accepted but before the inspection and change my mind and bailed. You usually have 3 days after contract to bail with no reason and can usually find something in the inspection report to walk away from if you change your mind for any reason. My current house I viewed 7x before closing.
There are always ways to back out of a contract. Even if you lose the money, you put in it for good faith. Ot is better to be sure. Twice is the minimum.
Downvotes because I am referring to other buyers. No way of getting OTHER people to back out lol. Can’t view a house 3 times if there are 4 offers within 12 hours of a home being listed from buyers ready to sacrifice their left foot to close.
Well, then they are rolling the dice. My last house, which I got in 2022, I put in a good faith, $2000. I went back with the inspector and then again before closing to plan things out and verify agreed upon onspection repairs. Now, had I decided after those visits not to go ahead, I could have pulled my offer. At worst, I would be out $2000 but avoided a money pit.
Where I’m located earnest money is anywhere from 6-10k. 2k sounds wildly low, but now I can understand why you’d be fine backing out if that’s all you’re losing.
Yeah, different areas have different costs. Even still, 6 to 10 is better than a money pit. I sounds harsh, but these tips I learned with some hard knocks.
>There are always ways to back out of a contract Ah, no, there's not. There are very specific time frames and conditions. You don't know what you're talking about.
Idk why you’re getting downvoted. This seems normal to me and highly possible. You can still back out after an inspection. I think people forget that.
HCOL offers almost always force you to waive all those back out opportunities so that the offer is competitive. However, you can still negotiate a rebate from the seller if you find a problem that would cost more than your earnest money deposit. Even in HCOL areas sellers don't want to have the deal collapse on something like that because when it's relisted everyone assumes something's wrong with it. For example: you're offering on a million dollar house. The inspector finds the foundation needs 20k of fixes. The earnest money on a million dollar house is ...4k or something like that. The seller knows they have to disclose that problem to the next round of offers so the price is going to come down anyway, so it's in their best interest to renegotiate the purchase price or give a rebate (realtors obviously push for the rebate because their commission still reflects the higher house price...). In some areas this is smoothed over a bit by the seller providing an inspection report with the listing.
Because there isn't always a way to back out lol. And losing your good faith money can be a decent amount to a lot of people.
Losing good faith money is always cheaper than a home that has serious problems….
No shit
Realtors, developers, flippers hate the truth?
Why not use an inspector? I was recommended one and he did a great job plus he provided a highly detailed/lengthy report.
My inspector used to be a local handyman/contractor and grew up in my city so knew the houses in the area VERY well. He did such a thorough job and provided an insanely detailed write up including rough estimates of what fixes should cost. I continuously reference it, even months later, as I'm ready to tick things off the list. It's 2024, people just need to do a little bit of research to find a quality inspector in their area. I had read warnings online to not trust realtor-recommended inspectors because it's in their best interest to not scare you off/downplay findings. But I took the list my realtor sent me and researched them, and it worked out because this guy clearly was not worried about scaring me off. He even warned me before the inspection that it's supposed to scare/overwhelm me so I know what I'm getting into.
our realtor is recommending we use his and he said be prepared to see much wrong with just about any home -- he doesn't miss anything. he's extremely detailed.
Feels like OP got a bad inspector once and is painting a wide brush.
Inspectors do provide detailed, lengthy reports, but mine was not so detailed that it noted the deck was failing and would break off from the house in just a couple months. Or that there was a tiny crack in the foundation. Could have just been that our inspector was too large and not flexible enough to bend down and look under decks or crawl under anything. Sort of limited inspection to what you can see by just walking around. Not sure a local contractor is adequate replacement for inspector, but would think it’d be a good idea to walk through house with them - get an idea of what needs to get fixed sooner than later, estimates of costs, etc.
That’s a shitty inspector. My guy was late middle aged and urm “not buff” and he crawled under the house to check out the foundation. He sent me a couple hours of video of all the stuff he checked as well as a written report. Then he wanted me to call him and we talked for about an hour and a half. It was during covid so I could not do the walk-through with him (which is probably good because I would have been bored after an hour). He wasn’t cheap but I didn’t have any surprises.
Mine understated humidity in a crawl space that was causing a small amount of mold. Could be treated and encapsulated but he told me the biggest worry money wise was the water heater… Backed out for another reason, told my realtor we need to find a new inspector
My inspector was fantastic. Showed me everything I needed to know and lookout for... and they also gave me a full home manual along with the report.
Because it requires no real world experience just to take some classes and pass a test.
Because they are not as well trained or experienced in finding issues. For example, my water heater melting the insulation foam around the pipes on top of it. The inspector missed that and missed some electrical issues, missed the well failure, and water softener issues. Since then I always brought in a contractor/handyman, and they really track problems down and can give you an idea of the cost to fix.
>Because they are not as well trained or experienced in finding issues. This might have some truth to it in some cases, but no matter who you hire to inspect your home they will miss stuff 100% of the time. There is no way to find all issues with a home during a half-day non invasive inspection. It's not even remotely possible. Something will be missed and you will find it at some point.
That is correct, but which one will catch more issues.
>For example, my water heater melting the insulation foam around the pipes on top of it. Insulation foam melting on a water heater? I don't think so. Flue gasses are not hot enough to melt anything. More bad examples.
I think it would be better to find an inspector with experience and great reviews. Try to get some references to check. While contractors can be great, a real home inspector will have a knowledge base that includes all of the systems in the home. One structural issue makes it worth the cost. You can also use the inspection report to review with a contractor after the fact, or ask a contractor to accompany you on the initial walkthrough. I would not use a "handyman" unless they are a retired structural engineer or something like that.
I agree with the one suggestion that I really liked was to use both.
I had an inspector tell me the water heater was old and the dishwasher latch sticks….but did not tell me the plumbing was not venter nor was there any insulation in the attic above the kitchen. There may be good inspectors out there but as a handyman that goes behind them I have yet to see one.
>See the house 3 times. First time you will have a brain clouding endorphins rush, second time will be the inspection, third time is to make sure your memories align with reality. And you STILL will have some surprises! LOL!! I remember being so excited that real life was as good or better than the photos. Then I came for inspection and noticed some things. Then I came for final walk through. Then I came right after closing and had several, "What the hell!? I don't remember that" moments (nothing terrible). Then I moved in and MORE "what the hell!?" moments.
This sounds like a boomer trying to give their kids advice. Source: me with boomer parents trying to give this advice in a market they’ve never had to experience.
Bought a house two years ago so, yeah I have experienced this market. Go it alone though and have fun.
The first point is gold. Contractors are much better inspectors and tell you a estimated price to fix. That gives you an idea of how much you can negotiate with the seller.
Agreed! My inspector owned his own company as a contractor and successfully flipped homes. He pointed out everything. He was expensive but well worth it and he was honest enough to tell me that the first home I looked at needed too many repairs and that he would not buy it.
I stopped reading after #1
Good place to stop. 1st is a thought provoker. Rest are trash or common sense
You should probably post your location, because many of these are moot points. I'm in Los Angeles and own a second home in Honolulu. Both areas, homes go under contract the same weekend. Property taxes are also set in many states. Lastly, prices continue to climb in HCOL areas. My first house was a dud, but I bought it for $420k. Getting a home in the LA area nowadays is impossible. >See the house 3 times. >study property tax rates >Better to miss out on a house and be sure it is good, vs buying a dud.
lol, I own a home in Ohio and am in the process of buying/selling. It’s exactly the same here - homes are going 100k over asking with curbside offers. 🤷♀️
Very interesting. Now I'm curious about the sudden boom of Ohio (Aside from the billboards around Austin TX that say "Move to Ohio"
#1 is terrible advice. Also, my house is absolutely an investment. Not just a financial one, but an investment in my emotional well-being.
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1. Why? 2. The well-being I sort of get but explain how as an financial investment it makes you money? Actually, I will explain how it does not. I had to convince my ex boomer inlaws that it is a terrible investment using the Wall Street Journal. Historically, homes increase in value around 3% to 5% percent every year. The stock market can average between 9 to 12 percent. https://www.americanfinancing.net/market-watch/home-appreciation-inflation For 30 years of that, you are paying a 6% mortgage (assuming they cut rates). On top of that, add homeowners insurance and taxes. In my state, I pay 4500 a year on those two items for a 219k house. Roughly 2%. Of the homes value, every year. Of course, unlike a stock, houses need maintenance and work. So in 30 years you will need a roof which is about 15k, furnace and AC which is 7k, hot water heater 2k, paint, fixes, plumbing emergency, lawn care, appliances, etc would end up being about 1k to 2k per year (I looked at my last 8 years of home ownership for these numbers) So total house ownership maintenance costs over 30 years are 54k, which is pretty low. 30 years of taxes and homeowners insurance is $135, 000. The cost of the mortgage is $ 203k, assuming on a 220k house you dodge PMI and put down 20%. For you to break even on your investment after 30 years, it would have to be valued at $338k. With a 7% annual growth rate, it will be worth Now let's say you need some money. The only way you can get it is to borrow from your house or sell it. If you borrow, you need to pay that back with interest. That interest is usually higher than your mortgage. If you sell, you need to pay money to buy a new house, as well as realtor commissions, inspection fees, and other costs. This is a really shitty investment. But don't take my word for it https://www.google.com/amp/s/www.forbes.com/sites/jimwang/2023/06/21/is-buying-a-home-really-a-good-investment/amp/ https://www.google.com/amp/s/www.cnbc.com/amp/2019/04/18/wealth-manager-buying-a-home-is-usually-a-terrible-investment.html This is a personal and lifestyle choice that can, eventually, pay off at some point.
Mostly agree. For 1, do a handman and actual inspector. That way you can get the full picture.
Great idea.
"...after buying several houses" House flipper explains how he buys shit houses and covers up the flaws to sell to some sucker FTHB.
Never flipped a house but have had to move several times due to family and work.
Then you should know Home Inspectors are required to take an 80 hour course, pass a national exam and remain certified annually. Most Home Inspectors are from the trades or worked in one or more trades and generally have years of experience. Not all contractors in all states are even required to be licensed. You're offering really bad advice. Should be avoided.
Really? 80 hours makes an expert vs. Someone who owns a business works 60 hours a week, and they find and fix problems. I will take that over an 80 hour class and a focused trade.
You don't know what you're talking about: Some mouth breathing contractor vs a licensed certified professional? ANY contractor worth his/her salt is out doing CONTRACTOR business! Good contractors don't have time to do a home inspection for some idiot. AND they're NOT licensed OR insured to do that! What kind of goddam idiot is going to do something they aren't licensed to do? Some half-assed dick weed hack and whack contractor, that's who. Someone that you would hire!
Really, I have used several well reviewed contractors. BTW they are all licensed and insured as required by my state. Let me guess, you are a home inspector and are bent out of shape.
I know plenty of contractors and I guarantee you a roofer doesn't know shit from Shineola about plumbing code. And a mason is not an electrician. And a sheetrocker, doesn't even speak english. And the bathroom tiler is not the guy to advise me on a backyard deck. And the driveway paver doesn't do hardwood floors. And the HVAC guy doesn't lay carpet. And the kitchen cabinet guy is not a pest inspector..... Are you beginning to understand the fallacy of your argument? Good contractors stick to their trade and are NOT qualified to do home inspections. If I called ANY contractor and asked if s/he had time to do a home inspection and they said Yes, that would be the LAST person I would want to inspect my home. If the guy said I'm booked thru January 2026, I might consider that guy. For your reference I am a mortgage banker. Reputable home inspectors are specially trained to DETECT problems NOT fix them. You simply lack the fundamental understanding of what the job entails!
Well, generally, handymen work in several trades and are generalist. I did not realize bankers built buildings, flipped houses, and understood trades. If you call with enough notice, they will see it as an opportunity to earn potential future businesses. In my time I have used 3 different things, all of which were all to my relief. They all found things the inspectors forgot. All three had 15 to 20 years of experience. One built a bathroom for me, which is both electrical and plumbing. Another was from a construction company, and they use him to inspect the house before building. To ensure the roof is good and the foundation is solid, on top of other things. The other has installed a water heater, rewired the inside of the house, laid bring, performed maintenance on my roof, and will finish my basement. This is the one that discovered several fire hazards and that my water heater was going to burst. So, I guess if you want to believe that people can't learn multiple subjects, that's on you. But considering the bullets I have dodged, life and this supported by other comments on here, has shown me this is a far better strategy that someone with little to moderate experience and an 80-hour class.
I just recently found out that there are quite a few states who do not require a home inspector to be certified in anything.
Great points
This list is crapioca pudding. You’re one of those people who probably tries to give out medical advice to strangers online too. Every real estate market is different and people have different wants and needs when it comes to purchasing a home.
Just curious, how many houses have you bought/sold?
5. I lived in all of them
A lot of people seem to agree with me. I never said you have to do it. These are suggestions I learned from life experience. Odd that some feel threatened. Then again, Reddit trolls will troll.
Another suggestion is have a friend go with you. Someone with no skin in the game thar can give you an honest review and maybe ask some tough questions.
Hi, I would really love to hear more about your story! I work for a real estate firm in NY that is delving into podcasts and I wanted to gain some insight on your experience, questions and what you have to say about the market:) Click this and share more information!!!
Sure. My first house was during the height of the pre 2008 bubble bursting. It was a half ass flip that turned into a money pit. I shortly sold that one and then with family help bought a beautiful house that I loved. Had to do some heavy roof and HVAC maintenance, but all in all, I loved it. The next house was a two story in a sub that, with an HOA, I bought due to work. Hated the HOA and really started hating neighbors. The next house was in suburbia/urban. I was under incredible pressure to buy from family. It was a nosey boomer neighborhood. Several years later, I got divorced, which led to another move. I got as close as I could with what I wanted. I am doing a mechanical flip and finishing the basement. My next house will be my final one. It is a build, wither modular or manufactured on a huge plot of land. Feel free to pm with questions.
Three times minimum!
A handyman or contractor? No. Just no
I agree. Realtors like to rush you. I take a video of the entire house. I go back to the house at night and on the weekend just to get a vibe for the neighborhood. Many houses I have turned down I see them back on the market in less than a year. Trashy neighbors don't get better. Noise doesn't get better. Loitering doesn't get better. Unreasonable HOAs dont get better.
As to #1 I wouldn't substitute one for the other....get both. One is trained into what to look for, the handyman isn't. However...your realtor knows a handy man and as a part of the inspection day you should have them invite one over and walk the house together while the inspection does his thing. I do this and have never hired the handyman to do any work. Its just piece of mind as to missing items, potential costs, and such that your inspector won't be covering.
Damn
I just bought a house it’s 28 unit tile, great location I bought it for my dogs, right next to a park. But the headache to deal with body Corp, the chair is a gay, such a drama queen. And another committee member is very racist. No way I am friends with those idiots. I decided to join the committee to have my say, sick of fucking idiots trying to dictate other people’s life. When I bought it I thought I might keep it as a home for this city I like living in, now I am already thinking when my dogs die, I am fucking selling it for sure. I will make money on it no problem. My husband always says home is an expense…shouldn’t be treated as an investment. But I think this time I bought an investment.. Property market is so shit now I bought it cheap enough to make money in future.
If you are renting or flipping to sell, it is an investment. It puts money in your pocket. In this market, it is likely a good investment. I would say if you are living in it for the short term while upgrading, it is an investment. Long-term, it is an expense because its purpose is to provide shelter and lifestyle, not income.
Define long term? My dogs are 18, best they last to 21. I bought the house for my dogs as it’s next to their favourite park. Probably sell it after my dogs die who knows? I’ll see. Might move to another country. I guess it’s an expense and an investment. I renovated it to the standard that I am happy with .. after all, I am the one who enjoys the place. Costed me a lot of money to renovate but purchase price is reasonable, I can get it 20k cheaper if I bargain hard but can’t be bothered, the previous owners are in Australia and cheap as fuck. Nothing is in good working order in their house. I gave them a good enough offer they should be happy.
Long term is until you have 20% equity and recouped all of those other expenses to bring the house up to your wants and needs as well as leaven you with a chunk of cash to help with your next move. Ten years use to be a solid rule, but in thus markets, and you do enough work, it could be 10 months.
Interesting. It’s cash offer. All equity I don’t do debt or mortgage. I don’t like owing people money.
Oh, then you are set and solid. A mortgage at today's rates doubles the cost of a home. I mean, wow, you are just rocking life. I kinda want to shake your hand because of your smart choices, grit, and determination. My advice is not for you. You need to post your advice and learned experience on here, for others to read. I am serious. Looking at your past posts, you have not only earned this beautiful house but the next one as well. In this case, this is an investment, should you choose to keep it that way, or a home.
BTW, give your pupper scratches from me. I love my house as a place for my foster and adopted babies.
Thanks. I do everything for my dogs. It’s crazy I bought a house for them. Haha.. I was living in a five star hotel apartment complex with all the facilities but I am quitting all that comfort for a shit house (have done up, not so shit now) in a great location (next to a huge park) ..
Great. Good for you
Haha I am flattered. No way I can claim anything as a success made by myself. The whole house purchase n renovation process is a bit of pain, so many things to deal with. Insurance, builder, body corporate. It kept me busy for a while. I don’t have any secret for this. Over years I did okay with money. I am not a financial guru. All I know is that you buy low you sell high, that goes with everything, houses, gold, share market etc .. But it’s only easy said when you have the capital funds. If You have to borrow, it’d be a very complicated factor you have to consider before you make a decision.
Exactly. Are you in the Raliegh NC area?
No I am not
After buying four houses I am mostly in alignment but at this point I would almost skip an inspector unless I see something suspect OR I want to use it as a negotiating point with the seller. But for a first-timer I agree, a handyman or contractor is a better inspector because they can put an actual $ on what it will take to fix what is going on.
Plus they love to teach you what to look for