I now own a home, and have a bad taste in my mouth

Miscellaneous and Personal Stuff I Must Share
1

I turned over the biggest check I’ve ever written and signed and initialled my name more times than I can count today, and I am for the first time in my life a real property owner.

I’ve done this for what amounts to an act of faith in my friends and family, who were universally of the opinion that I should use some inheritance money as a downpayment on a house or condo. It has no inherent appeal to me, as it did to my sister, for example – her definition of success includes owning a home. Nevertheless, I’ve been trying to behave more… I guess “more responsibly about my future” would be the best way to put it. I thought about all this advice, I decided to do it, and been more or less engrossed in this since August. I made my first ever offer on 9/11, and we closed today, 10/12. Pretty fast, I’m told, but longer would have driven me nuts.

I’ve found nothing at all pleasant or encouraging about the experience outside of a few hours while I contemplated whether or not to make an offer on this particular place. I worked with a realtor who I knew was spinning me to believe he was my representative when he really wasn’t, but I accepted that because he was a reasonable source of general information and assuming I bought within the MLS system, he wouldn’t cost me any cash outlay. My credit union jerked around my mortage application so badly that I finally revoked it and went to another lender. The new loan guy told me it was a slam dunk, but kept calling me for new info and documents, but never returned my calls when I was looking for info. To his credit, he did get all the paperwork delivered on time.

The more I learn, the more I question how good a deal I got, and I suppose that is a natural thing. Just a few days ago, I learned from a co-worker about the city Assessor’s website, where I could look up the sales history of my property. The buy I bought it from is a realtor himself (coincidentally? in the same office as “my” guy), who bought it about 6 months ago, did some minor renovations, and turned it around to me for nearly a 30% profit. I also learned I’m paying significantly more (20% more) than other similar properties that have sold in the past two years. After the closing today I met the condo Association prez, who wanted to know what I paid, and said when the other owners found the price being asked for it, they were really pissed off because it would probably result in a reassessment and raise all their property taxes. I have no idea how realistic this is, but I can tell you it’s not a pleasant atmosphere in which to meet the condo VIP, who is also my next door neighbor.

Also disturbing was that the seller was not at the closing – he had pre-signed the necessary documents in advance – and that “my” guy served as the seller’s, ummm… document keeper? He made sure the seller got copies of all necessary documents with my signature, and took them away with him.

I can’t honestly say I feel majorly screwed, but I feel I don’t really want to know any more. I know I can afford the mortage, and there are many good things about the place, and I already know one of my neighbors, a very pleasant person.

All in all, an unpleasant day. And it’s going to get worse, because I HATE to move.

2

I can’t address whether you got a good deal or not (too many variables) but I can offer some general knowledge…

I have purchased 3 houses in my life in three different states. At each one party or the other wasn’t there and the realtor functioned as that participant. Heck, when I SOLD my house back in April I didn’t even bother to be in the same time zone!

As far as the ‘definition’ of success meaning ‘owning a home’ screw that. Success is muchly overrated if it means doing things you don’t want.

But I will say that buying a home, depending on your market, can be a very lucrative investment. Appreciation plus the mortgage interest deduction can do good things to your overall balance sheet. I’m not necessarily implying that more money in your pocket is a good thing but I, for one, have always liked it.

Also, any sort of major purchase like this leads to stress and misgivings. It’s perfectly natural for such to come out after closing. Don’t let it bother you. New baby, new home, new job…some of the most stressful (non-fatal) things you can go through.

Go get a beer and kick back. Best thing for you now. And good luck!

3

I SWEAR I hadn’t thought of a beer until you mentioned it, and what a GREAT idea! How stressed os THAT?

4

Crazy, man. You’re losing all perspective.

Have two.

5

I know the feeling.

I never wanted to own my own home, but wives seem to have a different view of things.

I almost lost my house. It was in my wife’s ex’s name and he was supposed to sell it to us. The lender told us we were approved and while the paperwork was going through, my wife’s ex let it go into foreclosure. Then i got sick and was out of work for 3 months. The deal fell through.

The lender told us there wasn’t enough time to redo the loan (we don’t beleive him. We think he was looking to pick up the house for himself).

Luckly, my dad stepped in and paid cash for it and now I pay him back.

6

We got lucky, I reckon. We’re closing on the home of our dreams tomorrow — a fully restored, beautifully landscaped farm house originally built in 1910. Our realtor has become a good friend. She cried when she saw the house with us because she saw my wife crying. It is exactly what we wanted. It has the original gum-tree floors, glass crystal door knobs, stained bead-board walls and ceilings, and yellow pine trim. It has a parlor and a great room. I’ve never had either one. Under the hood, though, it has been thoroughly modernized. The plumbing, electrical, and all that. Cable and phone in every room. That sort of thing. A basement garage and game room was added, and the great room was an addition. It’s on 1-1/2 partially wooded acres, and comes with an outdoor cat named Black Kitty Girl. She guards the old tobacco barn in the back yard.

Every phase of our home search was remarkably smooth. In fact, we found it only two days after pre-approval of our loan. Our realtor functions as our advocate, constantly updating us about the progress of everything. She’s earned her keep, catching such things as a charge for waiving escrow. After her interference, our loan officer is going to eat the ridiculous charge. She’s going to meet us tomorrow for the final walk-through, take us to the bank, and then to the closing. She’ll be there along with our loan officer. We’re going to give her some flowers. We found out a couple of days ago that she is bringing us a $250 check, which she will present us at closing to thank us for our business. She’ll also be throwing us a house-warming party. Naturally, we’re recommending her to everyone we know.

Oh, and the deal? We offered extremely low, and received a counter-offer that was substantially below assessment value. We’re paying %20 down, and for that we’re getting a very low fixed interest rate and the waving of quite many piddling fees. We had saved for years, and when all the dust had settled, we discovered that after closing we will have esactly enough for six house payments plus $20. All in all, it’s been a wonderful experience. And it is our first home.

7

Boyo Jim - quit licking the carpets.

Seriously, I am adding another phrase to my arsenal of acquired knowledge: you’ll never get a bargain by buying a property owned by a real estate agent.

Those tax assessor’s (property appraiser, county auditor’s) sites are very useful. We were looking in an area where there has been 20% appreciation each year for the last few years. We looked at one home and our real estate agent, who is a friend but new to the business and a bit overzealous, was pushing us to make an offer. I was hesitant and looked up the property on the tax appraiser’s site. The current owner bought it four months ago and was looking for 16% gain in four months. We ended up making an offer on a different property, and the other has lowered by $20,000 already in the past few weeks.

Overall I think people should only buy a house if they are in it for the long haul, willing to take a hit financially in the short haul, or know what they’re doing from an investment standpoint.

8

Just as a heads up re the current residential real estate market, there are relatively few “bargains” to be had in the current market as the low cost of money has accelerated what people are willing to pay for houses. A 20% increase over the prices homes sold in the past 24 months is par for the course in many cases, and less than the housing cost inflation a lot of areas are experiencing.

In non-involved closings, it’s also not unusual to have floating settlements where the buyer and seller come in at convenient times (for them).

People willing to spend the time getting involved in renovating beat up “fixer uppers” can make some money in the current market, but dealing with that kind of real estate can also be a major PITA, and a substantive risk if you don’t know what you’re doing. Stop fretting over the “deal”. Everyone thinks they’re paying too much in the current market. Overall, owning a home is one of the wisest moves anyone can make.

9

Bought my first house three years ago in Dublin, and

Me neither.

Me too.

Same here.

Sounds like you were ripped. We also paid over the odds, but the funny thing is, it doesn’t matter now.

This is the imortant thing: though you may have paid over the odds, short of a major disaster, in 5 to 10 years time when your mortgage repayments are significantly less than rent on an equivalent property, it won’t matter so much. Sounds like you’ll be happy there… when you’ve calmed down.

10

I think you might have that dreaded illness known as “Buyer’s Remorse”…it will pass. You admit it is a nice place and you can afford it. So despite the trickery and shenaningans (sp?) that went along with the process, you have a nice place of your own that you can afford, and a whopping tax right-off for the next 10-11 years, depending on your mortgage.

Sit back and enjoy.

And if prices go the way they are going - you will also have a nice equity egg in a short time.

11

Sounds like buyer’s remorse. I bought my first house this spring. I was warned about buyer’s remorse before and after closing. It never hit me. In fact, I felt pretty darn good about the whole thing, even as I saw that I may have missed a couple “better” opportunities (a slightly lower interest rate opportunity, a similar house we had looked at sold for a couple thousand less than what we paid, etc). I credit my resistance to buyer’s remorse to the extensive research I did. To this day I believe I got the possible deal on the best possible house, taking into account all the variables I had to work with.

It sounds like your lack of enthusiasm about the whole process led you to “slack off” a bit in the research department. In turn, you don’t know how to react as you find new information – most of which you already should have been aware of. All of this doesn’t necessarily mean you got hosed or anything, but you are learning a valuable Life Lesson.

Rather, I hope you’re learning a Life Lesson.

12

Welcome to the joys of home ownership and the remorse it can cause.

I purchased my home 18 years ago, on a 30 year mortgage. A few years ago I got a bug to remodel/decorate and I swear I am not finished yet and I have probably spent more on remodeling the house than I did for the original loan amount. Bad investment at this point? Most likely. Yes, I could have moved and purchased a new house, but you know…I really like the house and the neighborhood.
This month’s project: putting a pool in the backyard.
Last week’s project: painting the kitchen and hallways
Last month’s project: putting in flagstone patio/walkway with stone flowerbed borders with new landscaping.

The money pit is never ending, but it looks nice. I can only hope after the pool goes in, I will stop with the “got to add this or change that mode”

:slight_smile:

13

Hahahahahaha…as long as you live in a house, you are NEVER done.

My favorite story is from my mother and father.
Mother thought a picnic table in the backyard would be nice.
Dad got her one.
Then, of course, after rain it was muddy under the table, so a cement slab would be nice.
Dad put one in.
Then, it seemed a shame that you couldn’t sit out there in the rain.
Dad put up a roof attached to our house that covered the patio and picnic table.
But it really seemed a shame that you couldn’t sit out there without those damned mosquitos.
Dad put screens around the patio.
Such a waste you couldn’t use it in the fall and early spring.
Screens were replaced with pre-fab walls and sliding windows for the summer.
Gee, it got pretty cold out there.
Dad put in a heater.
Still, darn cold when you have to go all the way around to the side of the house to go get a drink.
Dad cut a hole through the kitchen wall, leading out to the patio.
Now that picnic table looks kind of silly in our new family room.
Dad took the picnic table apart and takes it out and puts it behind the new family room. New rumpus room furniture was ordered, and of course the cable for the new television hanging from the ceiling, and the mini-fridge came in darned handy and then summer came around.
Sure was nice to sit on the picnic table and look at the new family room…

14

Oh yeah, you’ve got to break the place in , if you know what I mean.

15

Oh no! Please don’t tell me this!

Thanks for the laugh…but been there done that. So far the only thing that hasn’t been changed in this house is the brick outside. Don’t tempt me either.

16

Why do I open these threads about real estate buying and selling? I already am having nightmares about packing and driving with 3 cats to another state.
I know our house here will sell fine, but, where will we live!
Boyo Jim There’s one bright spot, you get to claim the interest, so you’ll get lots of money back in April.

17

I agree with those who say it’s likely buyer’s remorse, and that it will pass, but I have to chip in my own two cents and say that the above is a very questionable reason for doing something so major as buying a house. Anything so life-changing, and commitment-requiring should be done solely because you (and any significant others) want to, and feel ready to. I also don’t get the impression that you spent a lot of time studying up on the process, by your statement that you started looking in August and closed in October. House buying is a huge, huge thing, and there is so much to know, and a seller’s rep is not going to clue you in to very much at all.

As long as you can afford it, and you actually do like the place, it’s my opinion that you should take a deep breath, accept it as done (for at least a while in the future) and focus on the good things about it. Make the place as much your own as you can (while abiding by the condo assoc rules, of course).

Then, try to remember the most responsible thing you can do for your future, and for yourself, is to make sure you’re doing things because they’re right for you, not because everyone else thinks it should be right for you.

18

The problem was that I didn’t know WHAT to do. More than 30K almost fell out of the sky on me, A relative who I barely knew and I hadn’t seen for 30 years died without spouse, children or a will, and I simply got a cut according to the division ordered by the state. It was sitting in the bank, and I know from experience I can piss away money pretty easily. I’d say that the major reason I put it inro a home is to protect myself from running it down to $0 in just a few years, and I have accomplished that I think. And I must say, that seems a pretty lame “accompllishment” – protecting the future me from the stupid “I want stuff NOW” me.

Of couse, I feel the need for a vacation from all the stress, but I can’t afford one now. AND I have to clean, pack and move, three of my least favorite things.

19

I think you made a smart investment, and I hope everything goes well for you from here on out. Just don’t run for any HOA office!

BTW, our little condo complex is a madhouse. Places selling like hotcakes, usually for over 100% of the asking price and in a matter of days, if not hours, after going on the market. But that’s California for you, YMMV.

20

The thread title led me to believe you had peformed oral services in exchange for real estate…:eek:

Congratulations. Think of it as a new toy - but one you live in!