Home Buying Advice

[Guest]

 

[PhxPlay4n6]

PhxPlay4n6, we're financing through one of our banks because they had the best deal for us and won't have a problem closing in less than 30 days. We're going with a slightly modified 30 year fixed, but considered many other programs, including a 10/1 ARM. Thank you for taking the time to share your perspectives; they definitely factored into our decisions!

Glad I could help and congratulations!

 

[SweetErika]

Okay, everything's still going very well and we're set to close the 24th, but now I'm shopping for home (and auto if I can get a better deal) insurance. I started a thread on the GB on this subject figuring there'd be a bigger pool of homeowners, and would love your opinions and recommendations as well.

 

[LadyJeanne]

Okay, everything's still going very well and we're set to close the 24th, but now I'm shopping for home (and auto if I can get a better deal) insurance. I started a thread on the GB on this subject figuring there'd be a bigger pool of homeowners, and would love your opinions and recommendations as well.

Woohoo! Congratulations!!! The 24th is soooo close! I'm excited for you.

You do usually get a better deal if you do house and car at the same place. I know State Farm gives 'multi-line' discounts. My parents and I have been with State Farm for years, and I have to say, they've been great when we've had to make a claim. I've totaled one car (NOT my fault ), and had one car stolen (twice ); my dad has had deer jump onto his hood, and another car totaled in a freeway accident...State Farm made the whole thing very easy and painless and paid-up quickly. We've never needed to make a claim on the home insurance, though, so I can't really speak to that.

 

[M's girl]

Hey Erika,

Congratulations! I somehow missed the good news!

E

 

[Eilan]

Like LadyJeanne, we have State Farm for both our house and car, and we haven't had any problems, either. The wreck that we had back in September wasn't our fault. Never had a claim on the homeowner's insurance.

I think the only issue that my husband had with State Farm's auto insurance, and this might have happened regardless of the company, was that he had to get documentation from his employer stating that he and his ex-wife had cars provided to them. Guess State Farm didn't believe them when they said that they used their personal vehicles to drive zero miles a day to work.

 

[silverwhisper]

well, that's a pretty unusual circumstance...

ed

 

[Emerald Eyed]

Do not sign a buyers contract with your realtor. That says you can only buy through them. That means if you buy a house for sale by owner, then you have to pay your agent what heir commision would be UHHHG.

Look around the neighborhood. Buy the cheapest house on the most expensive block. I bought a house on a block where the other homes are going for almost 2 times the amount I bought mine for.

Also INspection, inspection inspection!!!!

 

[SweetErika]

Thanks, guys! I'm getting an auto quote from State Farm now in hopes they have a hell of a multi-policy discount or something that makes them competitive. However, they want us to pay a fee ON TOP OF higher premiums for using a $1000 deductible and the coverage seems to be less than other companies. I know great service often comes at a higher price, but we're just not prepared to pay several hundred more a year for insurance with a huge deductible and less coverage.

 

[SweetErika]

Do not sign a buyers contract with your realtor. That says you can only buy through them. That means if you buy a house for sale by owner, then you have to pay your agent what heir commision would be UHHHG.

Look around the neighborhood. Buy the cheapest house on the most expensive block. I bought a house on a block where the other homes are going for almost 2 times the amount I bought mine for.

Also INspection, inspection inspection!!!!

Great advice we've mostly followed.

Our realtor's very experienced and has been fantastic (no exclusive agreement either), the inspection went very well, and it's a great neighborhood. The house was less expensive than others because the backyard is a little odd and needs work, but it should appreciate and re-sell very nicely when we're ready to move. Most importantly, it's exactly what we wanted, will be great for a family, and a home we'll likely want to stay in for many, many years.

 

[Guest]

 

[SweetErika]

We have Travelers Insurance for both home and auto and have had them for about 4 or 5 years. We haven't had to make any claims so i can't really say how the service is.

The rates were good until we added both boys to the auto policy and made some vehicle changes. I'm not sure how they would compare with other carriers now.




The cost of auto insurance is killing me.

I just got a quote for Travelers through Geico, and it was average for home. Geico wasn't bad for auto. However, MetLife is still FAR in the lead for Home and Auto, and is the only co. I've talked to with guaranteed replacement coverage instead of the 125% deal. They'll also give me 10% back on auto if I watch and take a test on a safety video AND they've always taken $50/year off of each deductible for safe driving for up to 5 years!

I would maybe get quotes from other companies, Scaly -- multiple agents have told me each company kinda specializes in different categories, so other ones might be better with your boys. It seems one of the main keys to saving on insurance is checking rates often.

 

[TBKahuna123]

Great advice we've mostly followed.

Our realtor's very experienced and has been fantastic (no exclusive agreement either), the inspection went very well, and it's a great neighborhood. The house was less expensive than others because the backyard is a little odd and needs work, but it should appreciate and re-sell very nicely when we're ready to move. Most importantly, it's exactly what we wanted, will be great for a family, and a home we'll likely want to stay in for many, many years.

I was talking to my neighbor the other day and he asked me what we bought the house from the previous owners. I told him 110K. He was stunned. Our neighbor just sold his for 139K because he was trying to get it sold quick. The house across the street sold for 145K 4 months ago, and his just appraised for 165K. Now he has more square footage than we do, but we also have a better lot. All told since we finished the basement ourselves, we've got probably 115K into the house and it's now worth 140-145,000. Not bad return on investment over 16 months.

You can't discount the value of location. Most of our city is appreciating at about 4% per year. Our area is increasing at 8%. Thing is, now that we're int he house, who wants to move? I like it here.

Congrats Erika on finding the right house in the right place. Sounds like this has been a good experience so far, and that's great!

 

[Guest]

 

[SweetErika]

I think you're right about checking rates often. But I don't think you want to switch too often. When I applied at Travelers they knew my claim history on both auto and home, so I'd be willing to bet they know how often you switch. I suspect they don't like people that switch often.

I'm sure that's true, and it may even depend on each state's consumer environment (WA, for instance, is extremely consumer-friendly). We decided to go with MetLife for home and auto for now, and this will be our third insurance company in 6 years, I think. I doubt that makes us less appealing, especially given our credit and insurance scores and the fact that we're adding a new policy.

FYI: In all my checking, Costco Insurance through Ameriprise was the lowest auto quote. $618 for two vehicles every 6 months, and we have had a no-fault accident and comprehensive claim each in the past year. We just didn't feel quite as comfortable with the home coverage as we did with MetLife, but they're probably fine for auto particularly.

State Farm was several hundred more than the next highest quote for auto even with every single discount we could get. Perhaps that'll change in the future, so we'll check periodically, but it just wasn't financially sound to pay that much more for insurance.

 

[Eilan]

Today was the big day, wasn't it?

 

[SweetErika]

Today was the big day, wasn't it?

Indeed. The closing went perfectly today (we actually signed Friday), and we'll start to move in Saturday evening. We can't believe how easy it's been!

 

[Guest]

 

[TBKahuna123]

Indeed. The closing went perfectly today (we actually signed Friday), and we'll start to move in Saturday evening. We can't believe how easy it's been!

That's great, Erika! I felt the same way about our house. I kept thinking, this is too slick, what's gonna happen next? Nothing. It's perfect and easy becasue it was meant to be. That's how I always look at it.

 

[tbs230]

Help?

Hey, I just found out from my mother that I'm buying a house! Isn't that wonderful? So I've been sitting here reading the posts that were put up about Erika's experiences and everyone elses and I have some really good foundations...I was wondering if anyone knew of a good real estate agent in Connecticut? I don't live in that state and so I know nothing of what areas to look in. We, my mother and I are looking for an investment option and not necessarily someplace to live. We wanted someplace close to the city and in a good neighborhood...does anyone have any advice on where to start? I'm only 19 and have absolutely NO experience in home buying...and I feel pretty confident is saying neither does my mother...thanks in advance!

 

[Eilan]

Hey, I just found out from my mother that I'm buying a house!

How, exactly, does that work?

 

[SweetErika]

Hey, I just found out from my mother that I'm buying a house! Isn't that wonderful? So I've been sitting here reading the posts that were put up about Erika's experiences and everyone elses and I have some really good foundations...I was wondering if anyone knew of a good real estate agent in Connecticut? I don't live in that state and so I know nothing of what areas to look in. We, my mother and I are looking for an investment option and not necessarily someplace to live. We wanted someplace close to the city and in a good neighborhood...does anyone have any advice on where to start? I'm only 19 and have absolutely NO experience in home buying...and I feel pretty confident is saying neither does my mother...thanks in advance!

I found http://www.homegain.com to be helpful in finding a realtor. Many sites have lists of questions you should ask prospective agents as well. My advice would be to take a look at Homegain, then call the best prospects to set up an interview. We did well going with someone who was:
- A Realtor (they do more education and are held to higher standards than just agents)
- Very experienced, especially in the area. Our guy had been through just about every situation in 15+ years, knew our area very well, and was well known and liked by many agents, which gave us an edge.
- An exceptional negotiator, knowing what to offer and how to get us the best deal.
-Did not require any kind of exclusivity agreement or contract. We would NEVER sign one of these because you never know how good they are until they start working for you.
-Was always in contact or had someone to back them up in case they were ill or out of town.
-Would never work for both a buyer and a seller, and was willing to show us everything we wanted to see.

Apart from choosing the right loan and home, our realtor was the most important decision for us because he was able to show us good homes, hook us up with the best inspector (VERY important), escrow company, etc. He made everything far easier than we thought it would be.

This is a great site for the basics, and there are many others to be found through google: http://www.hud.gov/buying/index.cfm

The bottom line is that you should NOT rush into anything, and you'll need to do extensive research before proceeding. Buying investment real estate can be extremely risky, so you'll need to research the state and different areas thoroughly, in addition to learning all about how to buy investment properties. I don't know a ton about CT, but if it's mirrored the overall market, you might be best off investing that money until prices level/decrease. Or, why not buy a home for yourself?

 

[Guest]

 

[tbs230]

How, exactly, does that work?

I have some money from an accident I had when I was younger, so instead of having it sit in the bank, she thought it would be good to invest in a home.

Thanks Scalywag and SweetErika for the advice...I never thought about tax issues and that website is so helpful!

 

[SweetErika]

I have some money from an accident I had when I was younger, so instead of having it sit in the bank, she thought it would be good to invest in a home.

It may or may not be a good idea; there are a lot of factors (e.g. amount of money, income, debts, credit, markets, opportunity costs, other possibilities) that go into investment decisions. Before you jump into something that could possibly be a huge mistake (and I'd say buying an investment property in CT when you don't know much about the area, real estate, taxes, other options, etc., just because your mom thinks it'd be a good idea would likely qualify), I'd strongly advise learning about finances and exploring all of your options. You definitely don't want to make a bad decision and basically throw that money away!

I'm curious:
1) Why would you buy an investment property instead of buying yourself a home (or putting your money into mutual funds, high interest accounts, CDs, etc., for that matter)?

2) Why Connecticut?

3) Were you planning on renting out or trying to re-sell the CT property?