House Buying Avice

PaulS said:
Get a lawyer to do the agreement and the closing. I was going to write that I did the same thing 20 years ago when I bought this house, contingency. It took a while to sell my old house, right down the wire as a matter of fact, so don't dilly dally getting it listed, getting it sold will help make life easier. Go talk to the bank too, get the title checked on the house you are buying early in the game to find any issues, or search the registry of deeds yourself if you don't want to spend the money yet. I hope it works out for you. It did for me, but relying on selling my house made it stressful, I hope yours goes quickly.
Click to expand...


Good advice. Thank you. I hope it goes quickly. I don't intend to shoot for the moon on selling my home like many seem to do. I'll be satisfied to get my money back out of it and allow someone else to enjoy owning this home without breaking the bank. It's probably the most up to date and nicest little house on the block and I will price it reasonably. Should go fast, but you just never know in a tiny town like mine.
 
Kelvin said:
If you write it up yourself I'd strongly recommend that you use the same forms that real estate agents use. They are typically available through the Real Estate Commission in your state. They leave little to the imagination and are pretty solid as far as terms and conditions go.
Click to expand...

Duly noted. Thank you.
 
OkieFlyer said:
Good advice. Thank you. I hope it goes quickly. I don't intend to shoot for the moon on selling my home like many seem to do. I'll be satisfied to get my money back out of it and allow someone else to enjoy owning this home without breaking the bank. It's probably the most up to date and nicest little house on the block and I will price it reasonably. Should go fast, but you just never know in a tiny town like mine.
Click to expand...

The selling was the thing I was wondering about. You know your market better than I do, but a lot of times in small towns it's hard to sell anything. The nice thing is that starter homes probably sell easier than any other type of home, and if you've made yours nice and price it reasonably, that should put you in a good spot.

If you have trouble selling your house in time, it's worth considering some of the options mentioned previously. When we moved here to PA we did exactly as was mentioned before, get a 30 year fixed rate no prepayment penalty loan for the house with 10% down until we sold the house in Ohio. Once we did that, we dumped most of the money onto the mortgage and had it reassessed (or whatever term the bank used) down to a 15 year note. This was where a professional mortgage company was able to add value since they were able to find the banks and loan options that did exactly what we were looking for. They also helped everything move along quickly, which was important to us. But in your town, the local bank might also be able to help you figure that out just as well by sitting down and talking to them.

You'll figure it out. Buying and selling a home is stressful. This is the 3rd home I've owned since getting out of college (2nd home that Laurie and I have bought together). It's a lot of work, but it works out well in the end.
 
Ted DuPuis said:
The selling was the thing I was wondering about. You know your market better than I do, but a lot of times in small towns it's hard to sell anything. The nice thing is that starter homes probably sell easier than any other type of home, and if you've made yours nice and price it reasonably, that should put you in a good spot.

If you have trouble selling your house in time, it's worth considering some of the options mentioned previously. When we moved here to PA we did exactly as was mentioned before, get a 30 year fixed rate no prepayment penalty loan for the house with 10% down until we sold the house in Ohio. Once we did that, we dumped most of the money onto the mortgage and had it reassessed (or whatever term the bank used) down to a 15 year note. This was where a professional mortgage company was able to add value since they were able to find the banks and loan options that did exactly what we were looking for. They also helped everything move along quickly, which was important to us. But in your town, the local bank might also be able to help you figure that out just as well by sitting down and talking to them.

You'll figure it out. Buying and selling a home is stressful. This is the 3rd home I've owned since getting out of college (2nd home that Laurie and I have bought together). It's a lot of work, but it works out well in the end.
Click to expand...

Thanks a bunch Ted ol' boy. I'm hopeful it will sell reasonably quick, mostly because it is a sub-100K starter home or perhaps good for an old couple or widow who needs to move to town off the farm. Don't laugh, that happens a lot here. Because I did all the upgrades myself, I can price it quite reasonably and come out ahead. We shall see. I'll be quite happy to get enough for 20% down and a little cash to buy a few furnishings. I'm a simple fella. Just want all parties involved to get a square deal and be pleased with the transactions we've made. No more, no less.

Many thanks.
 
luvflyin said:
Why 20% down payment? Is it owner financing and that’s what he wants? Is it what you want to not have to get Mortgage Insurance? If it’s that, you could get a lower down loan, put up with the higher monthly payments to cover the Mortgage Insurance for awhile until you get your present house sold and can use money from that to pay the new loan down to 80% equity and make the insurance go away.
Click to expand...

I had mortgage insurance once during a move when I owned two houses for a while. To get rid of it before you pay the mortgage down on schedule required an appraisal or a certified brokers opinion to ensure that the price of the collateral hadn't dropped. With appraisals being a completely random and subjective process, I would not bank on that working out. After I sold the old home, I just refinanced the new one into a lower rate rather than getting an appraisal to cancel PMI.

Previously in a moving situation when I needed a 90% mortgage, I used a 80/10/10 with a HELOC. You still take a slight interest rate hit on the 80% due to the total value/loan ratio, but you can pay the 10% heloc offwithout prepayment penalty and without the complications of PMI.
 
Ken Ibold said:
I recently bought a house before selling the one we were living in. I was prepared to pay two mortgages for a few months. It stretched into 17 months and two realtors. THAT was enjoyable.
Click to expand...

Ours went the other way, the old house sold much quicker than anticipated, so we had to rent a condo and put most of the stuff in storage for 6mos. while the new one was completed.

SixPapaCharlie said:
What if your current house were to mysteriously catch on fire?
Click to expand...

Better yet, land it gear up at OSH. BRILLIANT!
 
OkieFlyer said:
Thanks. Is 48 hours the appropriate time to forfeit or remove the contingency? I was thinking more like a week, lol.
Click to expand...
Actually, I think 24 hours is more common than 48.

Removing a contingency does not change any other terms. It merely affirms that you are going to buy the house, even if your other house has not yet sold. You should already be in a position to answer that question when you make the purchase offer. Consider it from the seller's point of view: If another buyer makes an acceptable offer with no contingency, the seller can't accept as long as your contract is in good standing. The other buyer probably isn't going to wait around for a long time for your decision. He may go make another offer on another house, and then if you fail to sell, the seller loses both sales possibilities.
 
OkieFlyer said:
Thanks a bunch Ted ol' boy. I'm hopeful it will sell reasonably quick, mostly because it is a sub-100K starter home or perhaps good for an old couple or widow who needs to move to town off the farm. Don't laugh, that happens a lot here. Because I did all the upgrades myself, I can price it quite reasonably and come out ahead. We shall see. I'll be quite happy to get enough for 20% down and a little cash to buy a few furnishings. I'm a simple fella. Just want all parties involved to get a square deal and be pleased with the transactions we've made. No more, no less.

Many thanks.
Click to expand...

I'd believe that dynamic (old couple/widow needing to move to town off the farm). Happens all around to some extent or another - people age and need/want something that's less work than where they are. The property you're buying is something with a smaller appeal, and being in the boonies makes it harder to sell since you have a smaller market in general. So when you go to sell it, it might be harder to make your next upgrade, but this should be someplace you'll want to be for a long time.

One thing that we got told when we bought our property is that such properties sometimes will take on the order of 6 months to sell, even around here, because most people want to live in their little subdivisions as opposed to have a bunch of land (plus the extra cost that goes with that). But we don't expect to move anytime soon.
 
Ted DuPuis said:
One thing that we got told when we bought our property is that such properties sometimes will take on the order of 6 months to sell, even around here, because most people want to live in their little subdivisions as opposed to have a bunch of land (plus the extra cost that goes with that). But we don't expect to move anytime soon.
Click to expand...

According to a friend who is a realtor, the hardest home to sell is a custom 'dream home' on acreage that is not surrounded by other high end properties (iow Ag or woods). And even if they go under contract, they frequently don't appraise anywhere close to the contract price as they lack 'comps' in the diatance range the banks will accept.
 
Last edited:
weilke said:
According to a friend who is a realtor, the hardest home to sell is a custom 'dream home' on acreage that is not surrounded by other high end properties (iow Ag or woods). And even if they go under contract, they frequently don't appraise anywhere close to the contract price as they lack 'comps' in the range the banks will accept.
Click to expand...

That's not surprising. Around here there are enough such properties that I think it would overall be easier than in some localities. But, when I see "for sale" signs in front of properties that bear resemblance to mine, they seem to stay there for a long time.

We're figure this has a good shot at being our forever home, though, so we can ignore that potential eventuality for a long time to come. And really, what may drive us to sell will be when a subdivision moves down our direction, in which case we'll probably have a developer looking to buy.
 
OkieFlyer said:
Anybody want to donate some labor? I need to spot of trim work and some painting before I stab the sign out front.
Click to expand...

Lemme finish loading the truck and I'm on my way! :cheerswine:

images
 
Bring it, brother!

Man, I used to haul hay on my grandpa's truck just like that.........in the 90's lol.

#countrybumpkin
 
weilke said:
I had mortgage insurance once during a move when I owned two houses for a while. To get rid of it before you pay the mortgage down on schedule required an appraisal or a certified brokers opinion to ensure that the price of the collateral hadn't dropped. With appraisals being a completely random and subjective process, I would not bank on that working out. After I sold the old home, I just refinanced the new one into a lower rate rather than getting an appraisal to cancel PMI.

Previously in a moving situation when I needed a 90% mortgage, I used a 80/10/10 with a HELOC. You still take a slight interest rate hit on the 80% due to the total value/loan ratio, but you can pay the 10% heloc offwithout prepayment penalty and without the complications of PMI.
Click to expand...

Yeah, that'd be the way to do it if you can get the refi without an appraisal
 
OkieFlyer said:
Bring it, brother!

Man, I used to haul hay on my grandpa's truck just like that.........in the 90's lol.

#countrybumpkin
Click to expand...

Lol, we loaded a gooseneck flatbed full of alfalfa square bales in Norman a few times one summer. We just put the dually in gear and let it crawl through the field with no one at the wheel while a few of us tossed the bales up and let a couple of guys stack 'em. Hell of a workout.
 
luvflyin said:
Yeah, that'd be the way to do it if you can get the refi without an appraisal
Click to expand...

Of course, the refi required an appraisal. But dropping PMI would have also required an appraisal, even if I made a principal payment to bring the loan down to a 80% loan to (original) value. With the rate for the new loan lower than the one it replaced, the additional fees that come with a refi (recording fees, origination etc.) were paid for in a couple of months. Of course, in a setting of rising interest rates, that may not work. With a 80/10/10 or 80/15/5 involving a heloc you just pay off the 'second mortgage' and you are done with it.
 
SoonerAviator said:
Lol, we loaded a gooseneck flatbed full of alfalfa square bales in Norman a few times one summer. We just put the dually in gear and let it crawl through the field with no one at the wheel while a few of us tossed the bales up and let a couple of guys stack 'em. Hell of a workout.
Click to expand...

I heard that. Most I've ever hauled is 1100 bales in a day. That's hauling it out of the field and stacking it in the barn. Heavy alfalfa bales. I was 14 years old and I got 6 cents per bale. NOT WORTH IT!

The farmer thought my buddy and I were juniors or seniors in HS. We were in 8th grade, lol. He apologized for working us so hard after my dad told him how old we were, but said he was pretty amazed that two 14 years olds could whip out 1100 bales in a day.

A few days later, the barn, all the hay, and the swather inside burnt to the ground. He bailed the hay too green.
 
OkieFlyer said:
I heard that. Most I've ever hauled is 1100 bales in a day. That's hauling it out of the field and stacking it in the barn. Heavy alfalfa bales. I was 14 years old and I got 6 cents per bale. NOT WORTH IT!

The farmer thought my buddy and I were juniors or seniors in HS. We were in 8th grade, lol. He apologized for working us so hard after my dad told him how old we were, but said he was pretty amazed that two 14 years olds could whip out 1100 bales in a day.

A few days later, the barn, all the hay, and the swather inside burnt to the ground. He bailed the hay too green.
Click to expand...

Moral of the story. When baleing hay, get paid in cash. Don't do profit sharing
 
weilke said:
Of course, the refi required an appraisal. But dropping PMI would have also required an appraisal, even if I made a principal payment to bring the loan down to a 80% loan to (original) value. With the rate for the new loan lower than the one it replaced, the additional fees that come with a refi (recording fees, origination etc.) were paid for in a couple of months. Of course, in a setting of rising interest rates, that may not work. With a 80/10/10 or 80/15/5 involving a heloc you just pay off the 'second mortgage' and you are done with it.
Click to expand...

I reckon that's what will go down if we don't get the house sold in time, or if we need to remove the contingency. Rising interest rates definitely have us wanting to get locked in soon though. Hopefully the house will sale quickly and there will be no need for HELOCs or refinancing. Time will tell.


luvflyin said:
Moral of the story. When baleing hay, get paid in cash. Don't do profit sharing
Click to expand...
AMEN!
 
OkieFlyer said:
A few days later, the barn, all the hay, and the swather inside burnt to the ground.
Click to expand...

Oh man....

Several years ago a cattle rancher friend of mine built a 40X60 metal hay storage shed. A good one with a concrete floor to keep the hay out of the dirt.

That summer he filled it up for the first time. Then he backed off a 100 yards or so to see if he could have added another row. As he was looking, lightning struck the building and burned every last round bale..... To add insult to injury, he had bought an old fire truck to keep on his ranch just for such emergencies. It was in the shop that day getting a new clutch put in.
 
Zeldman said:
That summer he filled it up for the first time. Then he backed off a 100 yards or so to see if he could have added another row. As he was looking, lightning struck the building and burned every last round bale..... To add insult to injury, he had bought an old fire truck to keep on his ranch just for such emergencies. It was in the shop that day getting a new clutch put in.
Click to expand...

Dang, what are those odds ya reckon...about the same as AVgas going to .50 cents a gallon?
 
'I know how to make lightning, but how do you make it hail?'
 
I didn't read the whole hay article, but for you folks that may not know, you can go ahead and stack "green" hay in the barn if you stack it loose. You need to purposefully stack the hay in a manner that leaves gaps for heat to escape between the bales. In our case, the farmer specifically told us to stack it tight because he believed the hay to be cured enough so as not to combust. We stacked it tight, and he made a bad call.
 
OkieFlyer said:
I didn't read the whole hay article, but for you folks that may not know, you can go ahead and stack "green" hay in the barn if you stack it loose. You need to purposefully stack the hay in a manner that leaves gaps for heat to escape between the bales. In our case, the farmer specifically told us to stack it tight because he believed the hay to be cured enough so as not to combust. We stacked it tight, and he made a bad call.
Click to expand...

So hay will spontaneously combust if too green?
 
Ted DuPuis said:
So hay will spontaneously combust if too green?
Click to expand...

Too wet and too densely packed.

Hay, straw, silage and bituminous coal are all capable to self heat when stored in piles. In part this is bacterial activity, in part it is spontaneous oxydation of carbohydrates contained in the material.
When I was a kid, the farmers co-op had a electronic thermometer mounted on a 15ft Lance that could be stabbed into a suspect hay pile. If the temp was above a certain tabulated value, the farmer would call in help to pull apart the pile or stack in a hurry.
 
Last edited:
weilke said:
Too wet and too densely packed.

Hay, straw, silage and bituminous coal are all capable to self heat when stored in piles. In part this is bacterial activity, in part it is spontaneous oxydation of carbohydrates contained in the material.
When I was a kid, the farmers co-op had a electronic thermometer mounted on a 15ft Lance that could be stabbed into a suspect hay pile. If the temp was above a certain tabulated value, the farmer would call in help to pull apart the pile or stack in a hurry.
Click to expand...

Very interesting, I had no idea. Thanks for the education.
 
OkieFlyer said:
Nah, I'm not messing with realtors or attorneys unless it becomes really necessary.
Click to expand...
Really? It might become nece$$ary after the deal is boogered because it wasn't done the right way.
 
Use the standard paperwork that's published by the Realtors assoc. Study the forms so you understand the paperwork. If you don't know, ask. Sorry to sound so pedantic, but if you want to avoid lawyers, know what you're doing just as a good RE agent does. Get the house inspection done by a reputable firm and purchase a home buyer protection plan...at least for the first year. Be sure you disclose everything when you sell. The idea is to have a smooth transaction and that both parties understand the deal and are satisfied.
 
The lawyer we used on one of our real estate transactions is now sitting in prison. She got caught taking people's money for title search and not doing the search and insurance. When we heard we had to check our title policy but it was good, we weren't one of the ones she'd bilked. So even with a lawyer you can't be 100% sure.
 
You must log in or register to reply here.
Back
Top