[audio-pals] Re: Older Houses

  • From: "Josh" <lawdog911@xxxxxxxxxxx>
  • To: <audio-pals@xxxxxxxxxxxxx>
  • Date: Thu, 12 Mar 2015 06:40:00 -0400

Well, before we decide that any house is the house we want, we make sure that 
we can afford it with the rest of our bills. As far as escroe goes we have not 
discussed that so that is something that we will have to discuss as the time 
draws near. As I read on down through your email it appears that we have 
discussed the whole escroe aspect. We definitely have had each payment 
considered with tax and insurance in mind with the payment.

 

From: audio-pals-bounce@xxxxxxxxxxxxx [mailto:audio-pals-bounce@xxxxxxxxxxxxx] 
On Behalf Of Thomas McMahan
Sent: Thursday, March 12, 2015 4:58 AM
To: audio-pals@xxxxxxxxxxxxx
Subject: [audio-pals] Re: Older Houses

 

I accidentally hit the send before cleaning up that mail darn it.  

 

Here’s another little exercise to work on.  Lets say you guys decide to go for 
this house.  You should have a ballpark of the monthly payment.  Sit down and 
plot out a budget around it on one paper, as well as a list of possible repairs 
to do on another list and their costs.  Yes a house payment can be cheaper than 
rent, but their are other realities such as the taxes, and insurance.  Are you 
going to escrow your insuranc and tax payments into your house payment?  Most 
people do that and it usually works out well until they assess your house taxes 
up and then you have to make up the short fall.  Of course if they assess them 
downward you get a chunk of money back in the mail like my sister-in-law has 
done the past two years.  I didn’t escro my other payments.  I deal with 
insurance as I would any other utility, and we would do our taxes on our own.  
Because of that I now pay my insurance once a year and it’s cheaper, and once 
the house was paid for there was less entanglement with the bank.  I even 
removed the automatic withdraw for house payment because they double dipped us 
a couple of different months, and didn’t have a very good explanation as to 
why.  So it put us into over draw land, which isn’t a place you want to be.  
They did the same to my sis-in-law too and she went in and practically threw a 
fit because she wasn’t working at the time and didn’t have income yet.  They 
refunded her money on that one, but as she asked them, “now how am I supposed 
to pay the rest of my bills?  You think you guys are my only bill to pay?”  
Banks and their computers can be sloppy sometimes.  

 

Now when you do your budget here’s another game to play which may be 
beneficial.  Can you run your whole budget on one income?  Everybody that lives 
as a couple should do this whether renting or paying for a house.  Most of us 
find we can’t, but it is a nice goal.  The guy we had going along with us to 
check out houses etc and sort of pointed and guided us along through the 
process gave us that little bit of wisdom.  As he said, what happens if Pat 
loses her job and can’t get one very fast?  Can you live on just your income 
alone, because if you can get to that point, then you can start paying extra 
against your house on it’s principle and have more paid off faster which is 
good for the credit rating, but if you decide to move in 20 years you are 
carrying less of a load thus will get more money back to leverage against your 
next place should you decide to do that.  Or you can both pay some extra on 
house and car, then put the rest in the bank against major repairs which are 
going to come even if you buy a house that was built today, in 30 years you 
will have to had to replace things, they just don’t build stuff that good 
anymore and sometimes that includes homes btw.  

 

Lots of decisions, but at least it looks like you guys aren’t just jumping 
right and grabbing what shines in front of you which is good.  

 

Btw, I don’t think our budget is currently within the lowest income level of 
the house here at this time which would be Patti’s income, although it’s not 
way above that amount.  It is a good goal to work for actually, so we will be 
able to start seriously working on this place.  Get a lot of little stuff done 
over time, then do a loan down the road and fix the major stuff such as re 
doing the roof etc.  I don’t think I am going to lift the house and work on 
foundation, but it would be nice to do actually.  

 

But it’s a good exercise to do.  I would run it on your income Josh because it 
is likely to always be there and Amanda’s income is the variable one, it can be 
lower if she’s out of work, but can also be a lot higher should land a great 
paying job.  Drop in everything, credit cards the whole deal, then figure out 
once you get to where you’re going which angles to cover and get paid off in 
the budget.  

 

I am guessing you guys have done some of this already though in preparing for 
checking out the housing market and talking to lenders because they are going 
to do roughly the same thing when checking your credit etc.  Especially if it’s 
a conservative bank.  

 

Now I think I’ve completed all I was going to say.  Took two e-mails, but if I 
had been able to clean up the other one first it would have fitted into one 
probably *lol*.  

 

Instead you get two.  

 

On Mar 12, 2015, at 3:34 AM, Thomas McMahan <shadowmonstrosity@xxxxxxx> wrote:

 

Wouldn’t worry about a house on market for 5 months.  Most around here are on a 
year or so.  To many deals fall through each time that happens that just adds 
more time that the house is sitting there.  Age, is only a problem if the house 
hasn’t been kept up and modernized over the years.  There are people who prefer 
older houses simply because they are more solid.  The house I live in was 
placed here in 1922.  Yes it came from somewhere else.  The house next door is 
older and was also brought in here from another place too.  Fairly common in a 
town that springs up by a railroad.  I wouldn’t worry so much about that as 
apposed to how it’s fundamentally built, there are a lot of newer places that 
are likely to give you just as much trouble if not more.  

 

Any house is going to have ongoing mantainence of some kind.  Sided house are 
nice but siding fades over the years for example and eventually would need 
replacing.  Wooden houses have their things that have to be done, and so would 
brick, but brick is the best option as far as I’m concerned accept maybe when a 
big earthquake comes, then I would favor a wooden house, but what are the 
chances of that huh?  

 

I don’t know the market down there anymore so don’t know if that is a low ball 
figure on that house or not, but I can tell you it is larger than mine is and 
mine is two stories, but so is it’s price too.  

 

Go through it with a fine tooth comb with the idea of what has to be fixed now, 
and then in the next 5 years and what would be ongoing over the years, I don’t 
think for the long term ongoing it will be much different than a 10 year old 
house verses the 60 year old house, but agin it is a matter of what would 
immediately have to be worked on.  When was the house last occupied too?  A 
house that hasn’t been occupied for a good while can have problems such as 
drainage because they haven’t been flushed etc.  It sounds like you already 
have someone with you who knows how to examine a foundation well and give you 
an idea of what would have to be done and when which is good.  Same with tuck 
pointing brick etc.  

 

It may be sitting on market because folks think it’s to high also, but you are 
going to drop in a price and they will take it or leave it, or you both the 
buyer and seller will eventually come up with something in the middle, or the 
seller is going to have an empty house on their hands.  

 

What heating and cooling does it have, and when was it installed too that is a 
factor, a 30 year old furnace is getting kind of old in this part of the world, 
but most of our furnaces are gas and they do have to work pretty hard for a 
good part of the year.  Does it have any chimnies, and where do they run 
through the house.  Ones that run through centers of houses on the surface are 
nice, but when they have to be worked on they are a lot more work.  Of course 
where you live a lot of homes are electric heat and electric water heat, which 
is another thing to add to your check list, how old is the water heater and 
when will you be replacing that.  A brand new house obviously you would get to 
wait a while before doing that, but chances are you would have to do it 
eventually, or have your price knocked down when you are selling it, or when 
your descendants are selling it.  But that goes with any house again.  

 

What neighborhood is it in?  How accessible is it to you.  Pretend Amanda had 
to leave town for a Month and start your math, what is easy to get to via 
walking etc.  Maybe that isn’t a problem for you at this moment, but life can 
always hand you changes, and well, next thing you know, you are walking to the 
grocery store if you know what I mean.  

 

Find out what their highest bills were for each utility in the last year it was 
occupied if you can, you need that in planning a general budget.  I don’t know 
your property tax situation anymore, but here they just give an estimate from 
the seller, but the problem is, that if the sell lived in the house for a long 
time you might get a little surprise when the annual taxes come.  Our’s wasn’t 
a surprise because the previous owner hadn’t lived or owned the house for to 
long.

 

So it becomes also a matter of do you get a house that you won’t have to do any 
work or as little work as possible on, verses one that may have to have some 
work done, or one that is a fixer upper.  We bought a fixer upper, but when we 
bought it was a seller’s market, it definitely isn’t that nowadays, so we went 
for a house we knew we could likely get.  Well the trade off is that it’s 
needed work done on it and still does actually, but likely we would at least 
get some money back when we sell it.  Maybe not a lot but probably some when 
all is said and done, and of course the sell of this place could be the lverage 
to getting a better place.  It’s probably what you parents did, if not them 
then your grand parents did, that is more the normal thing in history.  Well up 
until recently where you have people who expect to buy a brand new house that 
is larger than what their parents owned as their first house.  Well if it can 
be swung, go for it, but to me it’s a little unrealistic, well to my income 
level it is *lol*.  

 

What appliances are already there, and how quickly do you think you will be 
having to replace say: stove, washer, or more of a bear dishwasher?  What about 
cabinetry etc, is Amanda happy with that, having that done can also be 
expensive unless you have someone who works with you to give you a break.  How 
much stuff will you guys do on your own for modifications verses having to hire 
outsiders.  So yes the advantage of a new place is that you won’t have to do 
that, but I guarantee you will pay up front for that, but that is why newer 
houses don’t stay on market long.  

 

So then it falls back to degree of work and mantainence that has to be done.  

On Mar 11, 2015, at 9:41 PM, Josh <lawdog911@xxxxxxxxxxx> wrote:

 

Hello,

  We are finding tons of older houses that we absolutely love. When I say older 
I am talking 1950’s. I am struggling with this a bit though because I am 
looking ahead, past when I am living there. Or rather to the point that I am 
ready to not live there anymore. So, when I get to the point of not wanting to 
live there anymore it could be 10, 20, 30 or more years down the road, but I am 
sure there will come a time that I am ready to move on. If this is not the case 
and I stay there until I die then it is not a concern, However, a 1950 house 
that I live in for 20 years will then be 85 years old. I know the specific 
house that we are looking at has been on the market for right about 5 months. 
So, what do you all think, do you think I would have trouble selling an 85 year 
old home? It is on the market for 5 months at the age of 65 years old. It is 
right about 112,000.00 right now without negotiating a lower price. Do you 
think I would be able to get my money back? If it is not a major concern, the 
age of the house, then I will not let it sway my decision, but taking into 
consideration that it is an all brick rancher with over 1700 sq. ft. and it is 
almost 100,000.00 and still on the market concerns me regardless how beautiful 
the house seems right now.         

 

 

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