Monday, September 22, 2014

House buying on a REVISED budget

Sadly, I was trying to negotiate with the seller on the home... to fix a repair that the FHA mortgage company had deemed REQUIRED, while also pursuing the option of determining if I could qualify for a conventional mortgage. In the meantime, I had offered to pay the entire cost of the remaining repair.

AND the seller pulled out of the transaction.

This was the second home I had paid for an inspection for, but which wouldn't pass FHA standards.

There was a third home. Priced the same as the last home - but VASTLY outdated (needed a new kitchen, some pretty serious remodeling). The last home was in better shape, but almost 500 sq feet smaller. Given how dated the kitchen, appliances, carpeting, etc was. My concern with even looking into that property is that we'd end up in the same situation. House needing something more involved required of it, seller not interested in putting the money into it.

Sigh.

Smart money would go to waiting for a third opportunity that had a little LESS intense effort. Sometimes it's the waiting that pays off the most.

Smart money would go to determining if I can get a conventional loan with money for remodeling.

Yeah. I'm sick and tired and tired and sick and don't want to live here any longer.

Instead. I kept looking and after only one weekend of feeling really sorry for myself and looking at the exact same houses I had already rejected for not being the type of home I wanted, nor the right area, or too much money.... I got an email for a brand new listing.

This one is a 1 1/2 story townhome. There's a first floor master, first floor laundry, open concept kitchen with 2-car attached garage. It's not perfect. But it's definitely in the range of having several things I really like about it. It's further away than I want to be, but nowhere near as far away as I feared I would end up. It's very close to my favorite grocery store and my work. Far enough away from my son's school which involves driving him to and from school every day (I was already picking him up daily).

It's also about $30k more than the townhome I wanted to buy. The benefit is though, that there isn't going to be a punch list of repairs and upgrades that need to be done immediately. I've got a very tiny list of very small repairs (new plumbers tape for the shower hook ups, new caps for the deck railing, new ceiling fans)... and only one thing on my longer-term plan (replace carpeting with laminate wood flooring).

I had hoped to buy for less and invest slowly in the upgrades/fixes needed. But the last thing I wanted to do was invest more money into housing inspections on a house that I couldn't buy. Lack of patience being a downfall.

But, I'll have a nice house that meets my needs well, and who knows what will happen in ten years.

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