omg I put an offer on a house UPDATE

[Teggy]

Wow, what a nerve wracking experience.

Short story, 2 years ago we thought we were going to have to move, started a very short-notice home search in mid-January which we found very little for our money, and were ultimately saved by not having to move.

Fast forward, we now know we need to move by March 1 of next year, we have significantly improved our finances, prices have gone down, we have prepped, know where we want to be, taken a homebuyer class, watched all the shows, etc. We sifted through around 100 listings from our agent and picked out our favorites and made appointments to see places. Yesterday we left the house at 11:30am and started doing open houses and drive-bys and then met up with our realtor at 4:30 to see another 5 houses.

My wife seems to like going to look at houses, but for me, the process usually consists of noticing all the flaws in the house that I think will either come up in inspection or just be something that we'll have to pay to fix/replace later. First half of the day was pretty meh, and I was having flashbacks to our first experience where we were very disappointed. Then we met up with the realtor and started looking at the places we were most interested in. Lo and behold we actually started seeing things we could consider living in, and they seemed to be improving as we went along. The first place had good space but had some wear issues, the second place was in better shape but needed updates in the bathroom and had a small backyard. The third place we both finally came to point where we really could see ourselves living there. The only downside to the place was that it only had a single car garage, it would need a little bit decorating in the spare rooms and the backyard was a drop too big. But at that point we actually thought we could put an offer on the place, which just really surprised us.

The 4th house was no good, but then we came to the 5th house, which we weren't really sure about from the pictures. We come up the driveway and I point out the Golden Retriever statue sitting there to my wife - we are "Golden Retriever people", so we joke that it must be a sign. Well we walk into the place and we were just blown away. It was not an extremely large house, and in fact was a house style (high ranch/split entry) that I have not like at all in the past because of the way the space is used. But the woman who lived there had added on to the rear of the house and created this amazing kitchen/dining room/living room area and a huge master bedroom. There is a deck off the main level with only a few steps down that would be great for our aging dog and a really manageable backyard. It also had all new or relatively new systems and roof. As far as total space for us it probably could use another room, but it was so perfect otherwise I didn't really care and could figure it out. There was really nothing I could walk around and easily see and worry about.

My wife and I pretty much looked at each other and said we wanted the house. Just crazy. The house has only been on the market 6 days. For the type of house, the price it was listed at was kind of high, but considering the shape and improvments, we were worried people would go in full price. We sat down with our realtor and put in what we thought was a pretty strong offer with a short deadline to try and get a response from the seller before other offers could come in (and given that the seller was out all day, there may be other offers already - we actually met the seller and talked to her about Goldens so we hope she remembers us ).

So here we wait, ugh. There can be so many different outcomes here: counter, rejection, bidding war...I'm trying to keep my expectations low. I've always thought that moving is my least favorite activity in the world besides finding a job, but this might be worse.

[USMC Kato]

Good luck Teggs!

[leo8877]

Good luck buddy!

[Blackjack]

I agree a home inspection's important. I've just read so many horror stories about homes that looked great on the outside but had something rotten at the core (termites, water damage, mildew, mold, cockroach infestations, corpses buried under the basement flooring, etc.). Well OK, a home inspector might miss the last one.   

Here's hoping yours has a clean bill of health and you can make it your own. 

[CeeKay]

PARTY AT TEGGY'S!

[Ironrod]

Cashtration (n.): The act of buying a house, which renders the subject financially impotent for an indefinite period of time.

[Roman]

Good luck man. It's an exciting time!!!

[Scuzz]

Good luck......I have only been on the selling end of what your doing and it was scary enough for me.

[Teggy]

Update! The selling agent said she was unavailable all day and we finally got a call around 6:30pm with a counter. The counter was not bad at all based on where we came in. We decided wanted to just ask for the patio set so we were getting a drop more out of the deal because we're pretty close to asking price. Except the selling agent said she would be in tomorrow so now we are on edge again. We definitely feel like we are in a much better place, of course, but I won't feel totally relaxed until we hear back and then have signed something.

[Misguided]

Good luck!

For me, I've found the key to looking for houses is to know as much as you can about the market so when the right thing comes along you know it. When we came out to visit Seattle a couple of years ago, we met with a realtor to look at some houses, mostly because we wanted to get a feel for some of the different areas. we surprised ourselves when we fell in love with our current home.

[Teggy]

Meh. So we pretty much got toyed with. Someone had come in the day we got our conteroffer and wanted to come back the next day to look at the house again. They were downsizing so they had cash and could make an offer that wasn't contingent on appraisal. They wound up getting the house. So I'm feeling pretty sour on the deal because the seller negotiated with us in order to string us along, not because they intended to honor the negotiation. Lame. Back to the drawing board.

[TheEgoWhip]

I spent 10 months actively looking for houses a year ago and it was a draining experience.  I had offers in on 9 separate houses over that time and even lost out a "last and best" situation where we were the highest offer by %10 when the listing agent decided to buy it... Unethical? yes, apparently not illegal. But after a long long search I am thrilled with the house I ended up with. Just happened to walk into it at the right time and scooped it up before the vultures got to it.  Keep plugging away, its a buyers market and there are tons of houses out there. Your perfect house is still a possibility.

[Sarkus]

Meh. So we pretty much got toyed with. Someone had come in the day we got our conteroffer and wanted to come back the next day to look at the house again. They were downsizing so they had cash and could make an offer that wasn't contingent on appraisal. They wound up getting the house. So I'm feeling pretty sour on the deal because the seller negotiated with us in order to string us along, not because they intended to honor the negotiation. Lame. Back to the drawing board.

Maybe its just me, but the seller being so interested in an offer not contingent on appraisal suggests to me they were worried about the appraisal and/or inspection that a lender involved sale requires.  In other words, there may have been issues they were well aware of that you were not at the point you were at.  You may have dodged a bullet.

[wonderpug]

Bummer, Teg.  You'll find one you like.

[gellar]

Meh. So we pretty much got toyed with. Someone had come in the day we got our conteroffer and wanted to come back the next day to look at the house again. They were downsizing so they had cash and could make an offer that wasn't contingent on appraisal. They wound up getting the house. So I'm feeling pretty sour on the deal because the seller negotiated with us in order to string us along, not because they intended to honor the negotiation. Lame. Back to the drawing board.

It's difficult, but try not to take it personally.  The other offer was better.  If the shoe was on the other foot, you would have taken it too.  When you're talking hundreds of thousands of dollars in transactions, there is no such thing as doing the 'nice' thing.

[Teggy]

So, we are living an episode of "My First Place". Got a call this morning that the offer on the first place fell through. Inspection went great but the buyers claimed they could hear gunshots from a nearby shooting range. There is no shooting range that we know of anywere nearby, so we have no idea what he is talking about. Seller came back to us and we are waiting to hear word on our minor counter from before. If that goes through we'll have to look into this shooting range thing. Just crazy.

[CeeKay]

it could have just been a drive-by.

[Purge]

Hilarious. Best of luck man.

[Shinjin]

Considering your original offer has likely expired, did you consider putting in a new, lower offer?

[Teggy]

Considering your original offer has likely expired, did you consider putting in a new, lower offer?

We didn't want to put in a lower offer because the other offer was actually higher than ours (and therefore over asking price). We decided to keep it simple and just have them respond to the counter we had put in when it initially fell apart.

[Blackadar]

Considering your original offer has likely expired, did you consider putting in a new, lower offer?

We didn't want to put in a lower offer because the other offer was actually higher than ours (and therefore over asking price). We decided to keep it simple and just have them respond to the counter we had put in when it initially fell apart.

Smart.

If you had lowered it, they'd have walked away (probably) on principle. 

Hope this works out for you.  Real Estate agents make buying/selling a house a royal pain in the ass.  Put everyone in the room for 5 minutes and ya'll could have worked out a deal without 'em. 

[Misguided]

Hope this works out for you.  Real Estate agents make buying/selling a house a royal pain in the ass.  Put everyone in the room for 5 minutes and ya'll could have worked out a deal without 'em. 

Speaking as someone previously licensed as a Realtor, in some cases I agree completely.

[Punisher]

So, we are living an episode of "My First Place". Got a call this morning that the offer on the first place fell through. Inspection went great but the buyers claimed they could hear gunshots from a nearby shooting range. There is no shooting range that we know of anywere nearby, so we have no idea what he is talking about. Seller came back to us and we are waiting to hear word on our minor counter from before. If that goes through we'll have to look into this shooting range thing. Just crazy.

if you can't find info on a public shooting range see if there is a police range nearby...

[papasmurff]

So, we are living an episode of "My First Place". Got a call this morning that the offer on the first place fell through. Inspection went great but the buyers claimed they could hear gunshots from a nearby shooting range. There is no shooting range that we know of anywere nearby, so we have no idea what he is talking about. Seller came back to us and we are waiting to hear word on our minor counter from before. If that goes through we'll have to look into this shooting range thing. Just crazy.

if you can't find info on a public shooting range see if there is a police range nearby...

or a private club

[naednek]

So, we are living an episode of "My First Place". Got a call this morning that the offer on the first place fell through. Inspection went great but the buyers claimed they could hear gunshots from a nearby shooting range. There is no shooting range that we know of anywere nearby, so we have no idea what he is talking about. Seller came back to us and we are waiting to hear word on our minor counter from before. If that goes through we'll have to look into this shooting range thing. Just crazy.

if you can't find info on a public shooting range see if there is a police range nearby...

or a private club

or a ghetto

[rshetts2]

So, we are living an episode of "My First Place". Got a call this morning that the offer on the first place fell through. Inspection went great but the buyers claimed they could hear gunshots from a nearby shooting range. There is no shooting range that we know of anywere nearby, so we have no idea what he is talking about. Seller came back to us and we are waiting to hear word on our minor counter from before. If that goes through we'll have to look into this shooting range thing. Just crazy.

if you can't find info on a public shooting range see if there is a police range nearby...

or a private club

or a ghetto

or Zekester

[Purge]

So, we are living an episode of "My First Place". Got a call this morning that the offer on the first place fell through. Inspection went great but the buyers claimed they could hear gunshots from a nearby shooting range. There is no shooting range that we know of anywere nearby, so we have no idea what he is talking about. Seller came back to us and we are waiting to hear word on our minor counter from before. If that goes through we'll have to look into this shooting range thing. Just crazy.

if you can't find info on a public shooting range see if there is a police range nearby...

or a private club

or a ghetto

or Zekester

Look for a forlorn Hepcat in a dress wandering the streets with a motorcycle helmet in his hand- it's a sure sign you're in the right neighborhood.

[Teggy]

Woot! The seller signed the offer so we are on to inspection. The only thing they had to disclose from the prior inspection is that one of the breakers is managing 2 circuits or something and should be separated. This can be a little thing or a big thing, but that fact the first buyers didn't use it as the reason the get out of the deal is somewhat encouraging. We won't know until the inspection.

[Zinfan]

Don't rely on things relating to the other offer, the sellers have no reason to disclose why the sale was not made, it could have been due to the shooting nosies but the truth could be that the buyers found something in the house they didn't like.  They could be upfront with it all but remember the old Ronald Reagan saying "Trust but verify".  Get a good inspection done and make sure all the i's are crossed and the t's dotted before signing a contract.  But I do want to add Congratulations on the offer being accepted and I really hope the escrow phase goes well.

[Purge]

... I really hope the escrow phase goes well.

This.

Also, I'll echo Zinfan in saying there are always "outs" put into buying contracts, and a breakdown cause isn't necessarily the actual cause. The other buyers may have found another house, had financial issues or decided that work they felt that had to be put in was too much effort, or maybe they broke up or found something that may not need to be legally disclosed, but would be unsatisfactory for most buyers. 

The people giving you the information (sellers) have a vested interest in downplaying the reason, esp. if there was something really bad. The reason they disclose may only be a half-truth or a bold-faced lie. The reason they file would be a "valid" one, regardless of the true issues.

Focus on your acquisition and having your bases covered. Best of luck.

[Cortilian]

Woot! The seller signed the offer so we are on to inspection. The only thing they had to disclose from the prior inspection is that one of the breakers is managing 2 circuits or something and should be separated. This can be a little thing or a big thing, but that fact the first buyers didn't use it as the reason the get out of the deal is somewhat encouraging. We won't know until the inspection.

Have an electrician inspect that part not a home inspector.  It may be nothing but the service may be at load limit and may not be able to accept an additional circuit.  If that is the case then you are looking at a new service box and all the electrical crap associated with that.  More than 1,000.00 smackers.

[Teggy]

Well, I guess I should thank congress for being idiots? We wound up locking in at 4.125. Now we are just holding our breath for the appraisal.

[Zinfan]

Well, I guess I should thank congress for being idiots? We wound up locking in at 4.125. Now we are just holding our breath for the appraisal.

Nice rate, I'll always remember my first condo.  I bought it in 1985 and my interest rate was 11.875% 

[Teggy]

Well, I guess I should thank congress for being idiots? We wound up locking in at 4.125. Now we are just holding our breath for the appraisal.

Nice rate, I'll always remember my first condo.  I bought it in 1985 and my interest rate was 11.875% 

Ouch, although I'm sure the actual price of the condo has gone up quite a bit since then.

[Misguided]

If you can, check into making an extra payment. A single extra payment can take literally years off of a mortgage (7 years off of a 30yr IIRC) because the entire amount goes towards principal.

[Harkonis]

agreed, we made sure that our mortgage was setup that we could pay extra at any time and it would apply to the principle

[Covenant]

Easiest way to do this is to pay half your mortgage every two weeks.  Most banks will allow this and it amounts to 2 extra payments a year, knocking off years from the mortgage.

[raydude]

Congratulations Teggy!

I am on my way to closing on a house myself. We're moving up to a bigger house because we already have one child and expecting one more next year. A question for the homeowners here: Should I get owner's title insurance? Anyone have any stories of people who wished they had owner's title insurance?

[Zinfan]

Congratulations Teggy!

I am on my way to closing on a house myself. We're moving up to a bigger house because we already have one child and expecting one more next year. A question for the homeowners here: Should I get owner's title insurance? Anyone have any stories of people who wished they had owner's title insurance?

I'm not sure what title insurance is.  Every loan I took out had a mandatory title search fee tacked on and that included the still under construction house that I bought.    As I said there was no choice but to pay for the search otherwise the loan company wouldn't fund the loan.  What does title insurance protect you from that a title search wouldn't?

[Teggy]

Congratulations Teggy!

I am on my way to closing on a house myself. We're moving up to a bigger house because we already have one child and expecting one more next year. A question for the homeowners here: Should I get owner's title insurance? Anyone have any stories of people who wished they had owner's title insurance?

I'm not sure what title insurance is.  Every loan I took out had a mandatory title search fee tacked on and that included the still under construction house that I bought.    As I said there was no choice but to pay for the search otherwise the loan company wouldn't fund the loan.  What does title insurance protect you from that a title search wouldn't?

This is actually a question we are trying to sort out right now. We are getting charged a rate for title insurance and there is some indication that in MA they automatically wrap in the bank's title insurance with owner's title insurance and you have to ask to have it removed if you don't want to pay for it.

The purpose of owner's title insurance is in case there is a claim against your title somewhere down the line that was not revealed during the bank's title search. For example, 5 years later someone's long lost cousin shows up with some lost paperwork that says they own your house.