Purchasing a house (advice)

[wrath]

Where are you looking at?

Two things are really important right now:
Location
Worth

Location is probably the most important. I suggest you go neighborhood shopping first. Then focus on houses in those neighborhoods. It'll keep you from bothering to look at houses in bad locations.

The worth is a fairly complex formula. It's especially difficult in temperamental areas where whether that 4th bedroom is worth $15k extra and whether or not "updates" are valuable or not.

I highly recommend buying a house that you can afford on whoever makes the most in your family. If not, the Gubmint recommends 28%/36% front end/back end ratios. So your entire cost of your house (principal, interest, taxes, insurance) can be 28% of your income. 36% can be the PITI and the remaining 8% can be for other fixed payments (student loans, car payments, revolving credit, et cetera that shows up on your credit report).

Below are some neighborhoods I selected.

This house is in my favorite neighborhood. This house would have sold for $240k a year ago:
http://www.shorewest.com/homes/11785...-WI-53186-1636

The houses in Waukesha in that same neighborhood were selling for $220k a year ago. Now they're lingering on the market in the $190k range. If you do the math, they're worth in the $175k-190k range for a 3 bedroom 2 bath colonial. I made a lot of offers in this neighborhood in the $210-$220k. No one accepted. Several of those houses eventually sold in the $190k range.

This is another one of my favorite neighborhoods, on a budget but still safe. Two years ago a bargain was $180k. The neighborhood is worth about $140k for a 3 bedroom 1 bath.
http://www.shorewest.com/homes/11706...-WI-53188-2349

This is my favorite yuppie neighborhood. It's expensive enough to keep out the riffraff, close to good schools, yet close to the expressway. Across the street (Meadowbrook/Merril Hills/TT/G) is Pewaukee. You trade a tax payment for a house payment and no sidewalks. This particular house has been for sale forever.
http://www.shorewest.com/homes/11691...-WI-53188-1339

[Russ Jerome]

Zillow:
http://www.zillow.com/

Research your new neigbors, neigborhood and values first.
Priceless info for values and info sellers wont tell you about dream home.

[Z33Art]

Looking mainly in Franklin.

Just downloaded Zillow.

[Z33Art]

This is one of the houses we are considering and one oour favorites:

http://www.shorewest.com/homes/11792...-WI-53132-8460

Not the biggest but we love the yard and out of all the houses we have seen this one is in the best condition. Most of the newer more expensive houses we have seen are falling apart it seems. Seems like the building materials have really gone down in quality.

Plus it has an awesome heated garage!

[pOrk]

I disagree with using Home Inspectors and agree to get a pro in there if you are concerned or worried about anything with the home. I had a 2 fellow BCM'ers come by and check on a few properties I looked at and I am REAL glad I did. I still owe them dinner matter o fact...

[Russ Jerome]

]

Not the biggest but we love the yard and out of all the houses we have seen this one is in the best condition.

You need to pick a house YOU are happy with, your buddies idea of garage size or basement finish is un important. I wanted a big yard, woods for my birds and no thru traffic. In town many may not like my choice but for me this house is IDEAL for me..the dog...my wife...freinds barbaque's...fire pit nights...no traffic..rimfire shots at squirrels...cool neigbors ect

[Z33Art]

You need to pick a house YOU are happy with, your buddies idea of garage size or basement finish is un important. I wanted a big yard, woods for my birds and no thru traffic. In town many may not like my choice but for me this house is IDEAL for me..the dog...my wife...freinds barbaque's...fire pit nights...no traffic..rimfire shots at squirrels...cool neigbors ect

I agree. That is why my wife and I like the house I posted the most out of about forty other house we have looked at. Nice yard, great neighborhood, good school district, nice house, and room for us to add to the house.

[xxsn0blindxx]

The only thing I have to add is that you can contact WE Energies and find out the average utilities cost over the last 48 months. If you are debating between houses an extra $100 a month spent on energy costs can mean a difference of an extra $20k you could have spent on the actual house. In other words you will pay the same per month for mortgage plus utilities on a $209k house with a $200 per month utility bill and a $228k house with a $100 per month utility bill.

[Dr.Buick]

I would call this guy

Mike Holmes

On Holmes Inspection, the smallest clues reveal the biggest problems.

• Mike Says: Get It in Writing

this guy inspects a house. watch his show and learn

[Z33Art]

The only thing I have to add is that you can contact WE Energies and find out the average utilities cost over the last 48 months. If you are debating between houses an extra $100 a month spent on energy costs can mean a difference of an extra $20k you could have spent on the actual house. In other words you will pay the same per month for mortgage plus utilities on a $209k house with a $200 per month utility bill and a $228k house with a $100 per month utility bill.

Good input since our two bedroom apartment already cost us more than a mortgage and cost just over $200 a month to heat. Hence why we are moving.

[Z33Art]

Put in an offer on the house posted above and it was accepted! Now time for the home inspection.

[jbiscuit]

Hmm. Doesn't look like a bad house but the asking price seems pretty steep? I just glanced at the ad for it. Is it on a lot of land or something? Did you guys lowball a price for it? I would have

[Rocket Power]

Well at least someone will be paying higher property taxes than me
$209k does seem high for a 1344sq ft house in this market even with big yard

[wrath]

I'd find the oldest guy you can for an inspector. Preferably one that has worked in the trade for a while as either a contractor or laborer... preferably in the area. That way they know how shit was made.

An inspector is also there to find enough stuff so you can walk away from the house without losing your earnest money.

That house looks ripe for buried tanks.

[Z33Art]

Hmm. Doesn't look like a bad house but the asking price seems pretty steep? I just glanced at the ad for it. Is it on a lot of land or something? Did you guys lowball a price for it? I would have

Large lot with large garage and hard wood floors throughout the house.

[Z33Art]

I'd find the oldest guy you can for an inspector. Preferably one that has worked in the trade for a while as either a contractor or laborer... preferably in the area. That way they know how shit was made.

An inspector is also there to find enough stuff so you can walk away from the house without losing your earnest money.

That house looks ripe for buried tanks.

Buried tanks?

[jbiscuit]

Large lot with large garage and hard wood floors throughout the house.

hardwood floors isn't an accessory to the home or an improvement, especially on an older home. Almost all older homes in the area will have hardwood under carpeting. Price still seems high to me for that house in this market, even with a large lot and garage

[wrath]

Buried tanks?

Fuel oil/heating oil.

[Z33Art]

Fuel oil/heating oil.

I will be sure to ask my home inspector about that.

[CATNHAT]

I disagree with using Home Inspectors and agree to get a pro in there if you are concerned or worried about anything with the home. I had a 2 fellow BCM'ers come by and check on a few properties I looked at and I am REAL glad I did. I still owe them dinner matter o fact...

And some beers Porky!