Question for home owners

[Osiris]

We are looking at wanting to purchase a home in the next 1-3yrs. I really would love to build my own home, which i am going to try to do first.

I figure we will be in the 200,000-250,000 at looking to spend as our community is decent amount of time from the main city so housing is pretty cheap(hence hoping to build instead).

But being our first home and all, i really dont know what are the best steps to begin taking NOW, before wanting to purchase. We are figuring around 20,000-25,000 down payment.

[msdolittle]

Well.........do you have kids or want kids? Do you prefer a diverse community? Is safety important? What are the taxes like? How about schools and school levies? Is there adequate police and fire stations? What about shopping?

If you decide to buy and not build, are you handy? Can you do minor fixes or are you into rehabing and flipping houses? Will you stay long term or is it a temporary house till you get the house of your dreams?

How much space do you require? Garage? Yard? Do you like neighbors or do you want to see no one when you walk out your door?

I could go on forever.............. But, start searching online, go to open houses, get a feel for what you like in a home. Talk to realtors too.

Its so fun looking at/for houses.

[msdolittle]

Oh, and pay special attention to builders. Ask around, don't get into a house that you will never be able to sell. Look for quality of construction and a neighborhood (if you go that route) that has people who've lived there a long time. Check the comp's in the neighborhood (what houses are selling for) so you'll know resale and what yours is worth.

[Puffer Pita]

Best thing we ever did was to get pre-approval for a home loan. Then when we found the right house, we made one call and it was a done deal!

[msdolittle]

We did preapproval too...............and yes, it was so easy that way! Also, if you are preapproved and you like a house, if someone else bids too usually the seller will take YOUR bid because they won't have to wait for approval. It makes it so quick and easy, and you have an advantage.

[Christine]

You guys forgot the most important part.... Hows the water? *laugh*

[fish_doc]

Remember dont max out what the banks say you can afford. They push people to the limit not leaving anything left over for repairing anything that can go wrong. It is their job to get as much of your money that they can.

Otherwise look at houses until you are sick of looking. Pick out the best part of each house you see. Keep a list so when you build you can build the best ideas into it from the start. Dont forget to keep a list of the things you hate also. These are things that can get mixed into you new construction without your knowledge if you are not paying attention.

[IloveCichlids]

First things first, preapproval for a home loan. Next is the 3 L's, Location, Location, Location. Then once you have figured out the area and location is what is available vs. what you can do to build. I am comming from an intense night of partying so I cannot help you much at this point but will post more later.

[Osiris]

Thanks everyone for your input!

Yea we have two kids, prolly have at least one more (if it's another girl, im going to give up!)

We plan to stay where we are now, same city, the city has great potential, plus i know for fact our company plans to expand into satillite offices and one of them will be right here in this city.

Have good schools, they have a private academy we were planning to send the children to when they come of age to attend. As for the water dont get no better! lol. Even the native fishing is great, especially out by the dam.

Pre-approval? must be something that gives you a spending limit pretty much?

I looked through around 200 homes yesterday through company online that handles majority in this area but didnt really find anything i liked, couple had great outside yard but inside just wasnt what i expected. Plus was thinking why not do it right the first time? have it like i want it.

As for being a handy man, i am sort of, my dad and step dad really are and know their building skills so aint too worried about that.

Would it be wrong if i build to spend most time planning the fish room?

[dwool36]

Building yourself (unless you physically do the work) does not save you much money. By the time you figure in the headaches of missed deadlines, permits, architectural fees (you will have to pay an architect) and dealing with moody general contractors, you are usually better off buying a home that is already built. Your opportunity to save money is location and timing. Keep in mind that you will be able to get really good deals in the next year. With the building boom of the last couple of years, many people got approved for loans that were fixed for 2 years and then became adjustable. What this means is interest rates are changing and people can no longer afford the payments. This is going to result in a drop in property values as more and more homes become vacant. If you are seriously planning to buy, take advantage of the coming situation.

[aykfc]

I know these 2 people and they built a house. They figured it would cost one million.... and it cost them 2 million. Also, the neighbors hate them because they built a house in front of theirs so they can not see the scenic views. It took them more then 4 years to build this house. Just make sure if you do go that route you are friends with the neighbors.

[IloveCichlids]

If you want to build, you dont neccessarily have to do it or contract it out yourself. I am sure there are plenty of developers out there in you area that are developing neighborhoods that have set plans (that can be modified to you liking) THe only suggestion I have is to research the builder. Find a notable one, one who has quality vs. quantity.

You can also find a realitor to work with. You tell them your parameters, and they search out the homes for you. Then you go look with them. My sister did it with great success in a limited time period as she was in from San Diego. Their commision comes from the seller. They can also help you through the tedious process of buying a home.

I would def. get preapproved to see what your spending limits are.

GOOD LUCK to you.

[Georgia Peach]

pre-approval is the way to go.

We built our house ourselves~ but its a log home and it didnt require what stick built homes do.

[fish_doc]

One feature I would want is a entrance to the basement from in the garage. I have seen this in a few homes. This way when you bring home the big aquariums they can go straight to the basement from the truck. But you still have security by not having another door to the house leading directly outside. Make sure there are no tight turns at the top or bottom of the staircases so any furniture can be moved eaisly. Washers, dryers, chairs, etc...

Make sure you have the ability to do what you want to on your own property. Many new subdivisions have to approve everything you do to your lot. No fence, shed, even gardens or trees without approval. If that dosent bother you no big deal but I feel if I own the land I am going to do what I want with it. One guy I work with lives in a area where they don't allow homeowners to put up a fence. He had a in ground pool put in and city law stated there must be a fence around the pool. He got brought into court by the city so he put a fence up then he got brought into court by the homeowners assoication. He finally let them fight each other in court after quite a bit of expense on his part.

[Christine]

ooh along those lines... I've even heard of lawsuits because people put in stained glass windows without approval, painted their house an "unapproved color" (pink) and planted bushes that blocked the neighbor's view. I guess that's one way to ensure your neighborhood always looks nice, but I don't think I could live with restrictions like that. Not so much that I want to do those things but just moreso like fish_doc says.... if you own it, it should be yours!

[KiltyONeal]

I'd recommend putting at least 20% down. If you're only putting down 10%, you really can't afford that house. Also, be sure to figure in real estate taxes and yearly maintenance costs in your budget.

[mrmoby]

You can decide to build, but imo, it is more hassle than it is worth, at least in seeing what others have gone through. The thing is, even if you build your own home, there will always be things you wish you did differently. Most people who build experience this, hell, we did just adding on. There will just be so many things that you dont count on that come up from the expense of running in electricity, to drilling a well, to blasting to get rid of pesky slate so you can pour a foundation.

I would suggest buying something already built, with some guidelines.

Look at a lot of properties. This will let you see different places, and get a feel for what you like in a home, and will go a long way towards knowing the "right one" when you find it. Don't get hung up on flash, or one really great feature. You should get an overall great feel for the home, and not just get excited because it has a hottub, bbq pit, etc.

Don't underestimate the amount of work a house needs, or overestimate your ability or financial capability to do such work. It's great to have people who can help, but they will not want to be helping you every weekend.

Also, beware shoddy construction, either by an unscrupulous contractor, or worse yet, the "home handy man". My sister lives in the "home handy man special", and nothing is right.The floors are unlevel, the hardwood has adhesive oozing out, the trim doesn't match up, the knotty pine is loosening up and falling off the ceiling, a relocated staicase with impossibly steep stairs etc.(and a useless brother in law, which also applies to don't overestimate your abilities). I also had a friend who when he sold his home, included a sectional sofa, because he had built rooms around it, and could no longer get it out. A home inspector (required by most lending institutions) may point out these things, but they also may not. You really need to be looking out for things that seem odd, or work that was sloppily done. It may seem trivial to pickout poorly cut moldings, but it can be signs of larger "projects", and trust me, you don't want to deal with someone elses mess.

The most important thing is to be educated. This is the time, before you start looking seriously. Know how much sewer and tax rates are in the community. Know how much a new roof, furnace, septic system, hot water heater, etc. may cost so when evaluating a potential home you can figure how much more you may need to spend to make it livable.

Sorry it took so much space, but these are some things I have learned. It's not an easy thing to do, but having your own home is very rewarding. hope it was of some help.

[Puffer Pita]

Best money we ever spent when house hunting was for a home inspection when we found what we thought was the one we wanted. We paid $350 for it and found out there were so many things wrong to the untrained eye that it was going to take about an additional $10,000 to fix everything and not live in a fire trap (the owner had done his own shoddy wiring everywhere, there was asbestos tiles that had to be removed, some of the siding was bad where we couldn't see, and the entire garage had to be rebuilt as the concrete slab was cracking, etc.). I highly recommend one to everyone. Try to get referrals from everyone you know who has had one done.

[IloveCichlids]

on the lines of a home inspector... Beware that not all are worth their payment. I would definetely suggest the use of one but beware of who you use. Talk to people that have used them and find one that has a good reputation. I have been on walk throughs with some that did not know a dmn thing. Being a residential contractor, I have kicked a few out of the house for being idiots and told my customers to find a new one. (Thew 2 that I kicked out did not know a hole in the wall from a hole in their head. My little sister could have done a better job than they did.)

Boxermom. FYI, asbestos is not harmful to you unless it is airborne and you can breathe it. such as cutting it or sanding on it or whatever else you could do to make it fine enough to breathe in. If it is already on the floor and you just have normal wear and tear, you are fine.

[Puffer Pita]

Thanks, ILC. I know all about asbestos, as I work at a law firm and a majority of our work consists of asbestos defense. The problem with this particular house is that there were a bunch of asbestos floor tiles that were broken and would have to be removed. It wasn't normal wear and tear, the layers were exposed. It would have been cheaper and safer to pour concrete over them but along with everything else that was wrong with it, it wasn't worth wanting to deal with.