timmahh

Well.. Looking for a bigger house; need a 3 car garage, would like more space, etc.

Current House:
1587 Sq Feet Single Story
Built in 2004
2 Bed, 2 Bath, Den, Formal Dining Room, Great Room, 2 Car Garage

Potential House #1:
2279 Sq Feet Two Story
Built in 2005
3 Bed, 2.5 Bath, Den, Loft, Formal Dining, Family Room off Kitchen, 3 Car Tandem Garage
Asking Price Originally $279k

Potential House #2:
2515 Sq Feet two Story
Built in 2004
4 Bed, 3 Bath, Loft, Formal Dining, Formal Living, Great Room off Kitchen, 3 Car Tandem w/ Garage Door @ Back [Drive through to back yard], POOL!!!!!!
Asking Price Originally $275k

So.. House #2.. I have put in quite a few offers, it's been on the market now for 55 days or so, price has been lowered to $261k -- but that's about $40 - $50k too high for the area. All of my offers have been rejected, but the house needs some work.. nothing major but a huge thing is the fence by the pool fell over during a bad storm and now the bank is liable for kids who go into the back and play in the pool.. They won't budge on the price yet really..

House #1, I offered $210k [short sale] and they accepted today; I'm thrilled but at the same time i'm not - I am going to be very upset if I go with house #1 and then two weeks later see house #2 sell for $210 - $220k; I like both houses but my favorite is house #2 because of the awesome stair case when you walk in.

I almost feel like i'm settling; and that makes me nervous like maybe I won't like the home in a few months. The main reason for that is that house #2 is built by the same builder as my current house - I know the quality, and I love all of the standard features, which Morrison Homes did not offer [house #1] - things like the big roman soak tub, beechwood cabinets, better moldings, better hardware [nice brushed aluminum vs cheap looking brass]

SOO.. I DUNNO#%&!#* What would you guys do? I wish the bank [house #2 is REO] would tell me straight up no we'll never go that low on the price, and then I won't have to drag my feet about it..


Here are some quick pics.. *not* my furniture.. [eep.. oak] House #1:





House #2:

wndrlst

Given the additional bedroom, overall size, pool, and other amenities; I think it's unreasonable to expect House #2 to go for the same (or similar) price as #1. I know you say it needs some work, but it sounds like it's primarily cosmetic. Putting up a new fence would be a fairly inexpensive thing for the seller to do in order to leave it on the market until it sells for the asking price. Especially given that it's held by a bank - they can typically afford to wait.

That said, this is a huge investment, and feeling like you're settling is perhaps not a good thing.

THAT said, you need to be realistic about what you can afford. If you truly can't afford to offer any higher for the house you prefer, you may have to settle. House #1 is still a very nice home. At a very nice price.

MR1

If time is not an issue just wait for what you want. It's not like prices are going up. Why would you consider paying above market for any house right now?

Zippee

+1 ^^

With the pool, extra garage bay and size #2 should be priced higher.

If you really want it, sit down with the guy at the bank and lay it out for him-"I have $xx to spend. Is there anyway we can make this work?". They may not come off the price a lot but may give you better financing. Be sure to allow some extra for the fix ups.

joerockt

Those 2 can't possibly be the only houses up for sale that you would like. Keep looking...

timmahh

Those are the only two I really like.. There are a ton of houses, but i'm not going to move for house that's only 200 sq feet bigger than my current house; so that cuts out all of the single stories. I have my surround sound system, and 61" TV - so there needs to be a big media niche, or a loft [like the two above - they both have medium sized media niches in the family rooms but lofts up stairs where I can do all of my wiring, etc.]. Most of the other homes I have seen have been for families with 3 - 4 kids; quite a few of them opted for a 4th and 5th bedroom vs. a loft and 3 car garage.. since I don't have kids I don't need the extra bedrooms. Also, a lot of these homes are REO, and as such people have gone with the "fk this route" and broken cabinets, tiles, taken the appliances, ruined the carpet w/ bleach and grease... so I have to think, if I buy this house how long will it be before I can move into it, cleaning will take a while on some of these.

There's also the features/amenities; my house came standard with a big soak tub, stone on the outside, ceramic tile roof, fireplace, good cabinets, etc. - some of the builders around here, like US Home/Lennar, still don't even have bull nose corner or decora rocker light switches as standard, so that knocks them off my list. Most of the Morrisons are that way as well, but the one I mentioned above had the correct upgrades done [Bull nose, good light switches, canned lights in the kitchen instead of two 6 foot flourescent tubes].

There are a total of 3 houses that I know of listed above $230k in my community; house #2 mentioned above, and then two private sellers - same exact floor plan w/ loft as house #2 - listed for $295k, and $349k... obviously they've been on the market for a loooooong time... the $349k has been listed 2 - 3 times for about 1.5 - 2 years.

So, I could just go pay full price for a smaller house, like $180k, but I figure with the market in the current condition I might as well get the most for my money. I could go higher on the loan but i'm trying to keep my monthly payment close to what the current mortgage, and difference in the price will come out of my pocket so i'm trying to minimize that while maximizing my home purchase.

moeronn

Don't get hung up on the little details. Installing can lights and replacing switches and outlets is relatively cheap and easy. Focus on the overall layout, size and major features. It seems like you are looking at the big picture, but still letting the smaller items sway you.

Also, how confident are you that you can sell your house quickly for the price you want? In the current market, I would want to make sure my current home is sold before signing any contracts to buy another house.

FWIW, I think house #1 looks pretty nice. Sure, it's not as big as #2 and doesn't have a pool, but do you think your expectation of getting #2 for ~$220k is reasonable?

timmahh

Well I would hope the bank sees the house w/ the pool as a liability - it's in a neighborhood with kids, has a downed fence and it's getting hot outside; I mean it's been on the market for 55 days or so now so really, fixing it doesn't seem like a top priority for them - it's Wells Fargo so they should know better than to let a potential law suit sit out there. One would think they would just cut there losses and avoid a potential lawsuit.

Current house will not be sold; that's part of the reason i'm trying to keep the new house price at a comfortable level so i'm not broke every month