Really getting cold feet about buying a home

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MemberSince99
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Really getting cold feet about buying a home

Postby MemberSince99 » Fri Jul 11, 2014 8:36 am

A few months ago I could not wait to buy. I still don't like renting and I think I rent from cheapskates (and let's be honest it's a business for them and I'm the cash cow to be milked). But I'm not really warming to the idea of buying a home.


I have two homes scheduled to view this weekend. Now I'm wondering about the whole "earnest deposit" concept and wondering why I have to offer the sellers a bribe (essentially) to look at my legally binding offer. I've read of people putting down big deposits and getting screwed out of them. It's free money for the seller (though I would think it would be taxable, so if that happened to me and they got away with it, I'd be sure to let the IRS know and provide the proof, just doing my patriotic duty...) Anyway I don't care to have to bribe the seller to consider my offer - either you want to sell the place or you don't.


Anyway not sure this is for me. I think I'd rather buy a hemi challenger.


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Postby jrmsu » Fri Jul 11, 2014 1:32 pm

What are your reasons for wanting to buy a house?

If your estimated mortgage payment is close to what you are currently paying to rent, I think buying is a good idea. Better to do it now and have it paid off before you retire - not that I'm calling you old! Do you need more space now?

Plus, you can have a nice garden in your new home since you are so good at gardening!
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djrez4
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Postby djrez4 » Fri Jul 11, 2014 1:56 pm

Usually, earnest money doesn't change hands until an offer is accepted.

There are other ways to make an offer more attractive: quick closing, higher down payment, mortgage preapproval.
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Postby MemberSince99 » Fri Jul 11, 2014 3:07 pm

Honestly - the REAL reason for buying would be building equity. That's it. And not having to deal with the a-hole landlords who raise your rent every year and get all cheap when anything breaks. But that's minor - the real reason is equity - to actually get something out of the money. I don't much care about the rest right now.


I have the pre-approval, actually a letter of loan commitment which means it's been through underwriting. I'd be willing to go 500 but that's it. I work too hard for my money and put up with too much insanity to want to risk getting ripped off a grand. But good points. I'm just not sure. I'm looking at Challengers with a hemi and just kind of drooling. And I look at this home buying process and it's just a PITA and drop money here and drop money there and it's almost like it's designed to keep people from doing it, and asking why am I doing this. It's kind of like that.


I guess I'm still figuring out what I really want. Recently I started talking with a woman but kind of after we started getting to know each other, I realized, I want to be alone I don't want a relationship. So I just told her and we can be friends and it's cool with me. I've been alone a long time and she seemed to want constant contact and it's just too much for me. I'm used to being alone and I'm not sure I could change that and learned it's not what I want. Question and totally serious here is it 'normal' to have that constant thing going on? I mean I like my alone time probably more than most do. Maybe I'm just weird. Well that's a given but you know what I mean.

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Postby CarefulBuilder14 » Fri Jul 11, 2014 10:57 pm

Well, for starters, how long would you plan to stay in a home you'd buy? If you're not going to stay there at least 7 years, then keep renting.

The frictional costs of buying and selling property are not to be underestimated. If you need to move, you don't want to ever be stuck with two housing payments.

Speaking of the general real estate market in America - not specific to WI - a lot of the home prices have been bid up by investors and landlords - not owner-occupiers. It might not be too hard to move and rent another place if you don't want to deal with your current landlords.

It is a lot easier to buy a home later when you know you want one and the arrangement makes sense than it is to get rid of a home you don't want quickly without a financial mess.
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Postby MemberSince99 » Sat Jul 12, 2014 5:44 am

I plan to die in it. I guess a better way to put that is, I want that to be my home for life. That sounds a bit better but I'm sure you know what I mean.


I actually did do the Hemi Challenger that was just an itch I had to scratch. It bumped my DTI up just slightly not enough to destroy buying a home but I can guarantee the underwriters will question me doing that.


Another thing is, I HAVE to buy a new dryer. My current one is 14 years old and it's making some nasty noises. I hoped to get it by, but I can see it's getting worse and I'm about out of time, but that's more money I gotta shell out and soon. As long as I'm buying a dryer I'm getting a washer and getting them as a set. I wouldn't HAVE to but I think it might be prudent then hopefully I don't need to worry about that for a while, and I can take them with me when and if I buy a home (and that's still very possible if not this year then next). But I gotta do that, that's not a want like the Challenger that's a need as I don't want to do Laundromats. I mean ok I COULD do that but either way I'm paying to do my laundry and I might as well have my machine, it's just not a blatant want like the Challenger.


So I was going to pay more down on the Challenger but they had a limit they would do on a credit card, so I will just take what I was going to pay on the Challenger and buy a washer and dryer and should be set for years (hopefully) there.


But I am still open to this year I think I'd just rather wait a year save some more $$$ and hit it fresh. I like my current rate and the market for a buyer, but.....

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Postby rockyrock » Sat Jul 12, 2014 8:52 am

Some of my only regrets in life are related to home buying/selling. The biggest two: shouldn't have waited so long to buy and shouldn't have sold. My feelings are that if you can buy--do it. If there is any way to hold onto a property--hold onto it.

Of course YMMV.
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Postby attrapereves » Sat Jul 12, 2014 12:24 pm

Ugghh, cheap landlords!

I've actually fixed a few things around my house (as long as it's just labor) because it's easier for me to do it than worry about having the maintenance guy come over (which takes 1-2 weeks), having him jerry rig it, then having to call again.

I'm really wanting to buy a house in the next 2-3 years.

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Postby notcool » Sat Jul 12, 2014 1:10 pm

MemberSince99 wrote:. Now I'm wondering about the whole "earnest deposit" concept and wondering why I have to offer the sellers a bribe (essentially) to look at my legally binding offer. I've read of people putting down big deposits and getting screwed out of them. It's free money for the seller Anyway I don't care to have to bribe the seller to consider my offer - either you want to sell the place or you don't.

.


I disagree that earnest money is a "bribe" to the seller. Quite the opposite, its a useful way to address a potential roadblock to a transaction.

In 2004 I sold a condo; the buyer and I entered a contract, but two weeks later the buyer needed to back out as it (a couple) found something better for them. I kept the earnest money as compensation for my trouble (I took the house off the market, thus losing other potential buyers for over two weeks), they got the condo they wanted (sadly not mine, but I found a buyer a month later!). Had they gone through with the sale, of course, the earnest money would have been applied to the price of the condo. They were better off losing the earnest money but getting a different condo and I was also better off (it took me longer to sell, but I got some money for my trouble).

Obviously, the earnest money system has drawbacks. Its certainly not the only way one could address these issues and disputes can arise over earnest money. Maybe its not the best way. But its far, far, far from "a bribe."

MemberSince99
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Postby MemberSince99 » Sat Jul 12, 2014 1:44 pm

I'm still not sure how people can make what I believe to be a legally binding offer on a property then just change their minds. If you have doubts, don't make the offer there is always another one around the corner. Otherwise, live up to your promises. I don't see how they can just ditch it like that because they found something better. If they find some hot 20 year old at work who digs them, can they just ditch their wife? I guess they can but they will pay through the legal system, so why is making an offer on a house different?


I guess if I made an offer, I would feel bound by that. Just like when I bought that car once we agreed to the deal I didn't play games and look online and say oh gee look this dealer is selling it 500 cheaper than you I'll go see what kind of deal I can get there.


If we've reached this point it's no wonder you can't trust anyone.



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