The Greatest Shopping Experience Ever

For a while I couldn’t believe that we were actually buying a house. I kept thinking that something was going to happen and we were going to lose another house. Even after we made it through attorney review I was still nervous about the inspection. And after the inspection I was nervous about the appraisal but now that the appraisal has come back OK and our lending officer says everything is looking good I’m finally letting myself believe that we’re actually going to be moving and could own a house by the end of this month or at the very latest the end of next month!

So I started de-cluttering our apartment and packing the things that we don’t need right now like our winter clothes and the hundreds of DVDs that we have and never watch. I also started doing something that is more fun than I could have ever imagined. Decorating! When I was little and my mom would drag me to furniture stores and tile shops I was miserable! Even as an adult I was never really interested in the whole interior decorating thing. Our current apartment is proof of that and the HGTV designers would have a field day with the boring bare beige walls and furniture that is haphazardly arranged. But all of sudden now that we’re actually buying a house I’ve spent hours upon hours online looking at tileshop.com, hgtv.com, the nest’s decorating and renovating board and any design blogs I can find. I even dragged my husband to half a dozen furniture stores this past weekend.

My current obsession is designing what our kitchen and the powder room renovation will look like. Although the current owners had recently updated the kitchen with stainless steel appliances, new cabinets, and recessed lighting there are some things they did that we just don’t like. The tile they picked for the floor is not my style but I might have been able to live with it had they continued the same tile into the powder room which is right off of the kitchen. Unfortunately they didn’t and I hate the tile they used in the bathroom. So since we were definitely going to retile the bathroom it just made sense (at least to me) to retile the kitchen floor as well.

Another upgrade they did that we’re going to change is the butcher block countertop. I actually like the look of butcher block but they did not maintain it at all and it’s already really beat up with knife marks, water damage and food stains. So those definitely have to go and will be replaced with granite which is much more durable. Judging by their taste we were actually happy they didn’t do a backsplash because we’re pretty sure we wouldn’t have liked whatever they would have chosen so it’s one less thing we have to demo.

After hunting on the internet for all the kitchen and bathroom pictures I could find I kept coming back to the two pictures below. They are by far my favorites out of all the pictures I’ve seen. Although the kitchen picture has a more traditional and formal feel and the bathroom picture is more beachy and casual I thought there were elements in both pictures that complemented each other. Pulling pieces from each pictures I put together the inspiration board below.

As of now, I’m thinking the beadboard would be used in both the kitchen as a backsplash for one wall and in the bathroom so that the rooms flow together. However I will use the river rock on the floor in the bathroom and paint the walls a light gray as opposed to the light blue I want to paint the kitchen walls to clearly define the bathroom as a separate space. The kitchen will be updated with black granite countertops and we’ll create a backsplash with the subway and glass tile on the wall were the range is and install the hood. Of course my mind has changed 100 times since I first started designing this space but for now this is what seems to be sticking. I can’t wait to actually get into the space and start ordering our materials and of course I will document it every step of the way.

Wait, What Round is This? 07/20/2010

It’s been awhile since my last post and A LOT has happened. Here's a recap of what's been going on the past couple of months.

Round 4: We decided to try something new and bid on an REO (a house that has gone through foreclosure and is now owned by the bank) in the same development as round 2 & 3 houses. Aside from being stripped of EVERYTHING, we’re talking the appliances, gone! pedestal sink, gone! light switch covers, gone! the house was in really good condition and it had some nice updates like hardwood floors, granite countertops and new custom cabinets (minus the pulls). The bank had it listed way too high at $499,900 for a 4 bedroom 2.5 bath. We took a look at the comps and based on the work that needed to be done we offered $411,000 for the house. After 30 days on the market we were the first and only offer and we were told that we would hear back within 72 hours. Well those 3 days came and went and still no word from the bank, another 3 weeks went by and still no response. In the mean time two other houses in the development that were the same exact model as the foreclosure closed and their sales prices were $425,000 and $420,000. Neither of them were a short sale or foreclosure and they were in considerably better shape. At this point we started to think that we offered too much at $411,000 considering the appliances alone would be at least $7,000 to replace. And there were plenty of other things that needed to be fixed and replaced. But even after our agent followed up with the new comps we never got a reply from the bank, not even a counter. So it was time to move on.

Round 5: After 3 rounds of failed attempts in the same development we decided to move on to a new town and check out some fresh options. We had actually looked in this township earlier but stuck mainly to the northern part so this time we decided to check out the southern part of the township. This location is still very convenient to the train making it a relatively easy commute and it’s lets than 20 minutes to the beach so that makes for a great work/life balance. The house we bid on was super cute and had great curb appeal. It’s almost 100 years old and the current owners did an amazing job at updating the house with modern amenities like granite counters and central air conditioning but still keeping with the charm and character of the original house. The house has 3 bedrooms and 1.5 baths and was listed at $435,000 which was way above what we wanted to spend. But we loved this house and it was truly move in ready so there wouldn’t be any major expenses in order to move in. We offered $410,000 on the house and they countered with $425,000. We countered back at $420,000 and while we were waiting for their reply they received not one but TWO offers for full price! That was a bidding war we did not want to win so we had to bow out.

Round 6: Moving one town over we found another great house which is located downtown and is walking distance to restaurants, shopping, the YMCA (great for the gym and pool) and best of all the train. This house is also about 100 years old but has a lot of updates. Granite countertops, new custom cabinets, refinished original hardwood floors and newly renovated bathrooms. But at $429,800 we thought it was way overpriced for this 3 bedroom 1.5 bath house. Especially since only a couple of houses down on the same street there was the same house (as far as size and layout) listed for sale at $383,000. Granted this other house wasn’t as updated (no granite countertops, the floors needed to be refinished, the bathroom need updating) the cost of the updates didn’t come anywhere close to the $46,000 price difference. We decided to make an offer on the already updated house since it was move in ready and would save us the time and energy it would take to remodel the other house. So based on the comps and how much we estimated it would cost to update the lower priced house we offered a firm price of $390,000. According to our agent the seller flipped out and was more than insulted by our offer. So much so that he made his mom (who’s his real estate agent) cry because he was yelling at her so badly for bringing such a low offer to him. After she was able to compose herself, she told our agent that her son would not accept any less than $420,000 for the house. Turns out that he bought the house in 2008 for $418,000 and he’s not willing to take a loss. Clearly he didn’t care about the comps or the actual market value of his house and there was no reasoning with this guy so we decided to move on.

Round 7: Remember I mentioned there was a house for sale down the street that was basically the same house minus a few updates listed for $383,000? We decided to put a bid in and we got it! Yes! Finally after a string of failed contract negations we are finally under contract on a house! We originally bid $360,000 for the house and settled on a price of $373,000 and couldn’t be happier. And after pricing out the cost of some of the updates we want to do like adding granite countertops, refinishing the floor and a couple of other minor cosmetic changes we will still be spending less than the $390,000 we offered on the more updated house down the street. So far things are going very smoothly (knock on wood). We had our inspection which turned up some minor issues but, the sellers agreed to give us $1,500 in concessions to put toward the cost of the repairs. The appraisal came back at $376,000 so the only hurdle left is the mortgage commitment and then we should be clear to close which our lending officer told us could be as soon as the end of this month!

All in all it's been a LONG journey lasting well over 6 months. We looked at everything from townhouses to new construction to 100 year old houses. And even after missing out on the $8,000 first time home buyer tax credit we couldn’t be happier that we finally found a house that we can put our own mark on and start growing our family.

Round 3 06/22/2010

Look familiar? This house is the much better looking sibling of the last house we had a bid on. Located just down the street it’s the same model and same layout but with lots of upgrades and in much better condition. Truly move in ready we wouldn’t have had to do a thing. This 3 bedroom, 2.5 bath single family home has hardwood floors throughout, nice neutral wall colors, newly and beautifully upgraded powder room, paver patio out back, California type closet organizers and a newer HVAC unit and water heater. The only thing this house was missing was a basement. This was fine because it’s just the two of us for now and this house definitely still has plenty of room to grow as we add to our family.

The house was listed at $427,000 which was priced way too high compared to the comps in the neighborhood. We offered $390,000. The seller countered at $407,000. We countered back at $400,000 and our offer was accepted! Things were looking good and we were off to attorney review.

The day after attorney review started we get a phone call that there was a problem. Apparently the seller was recently divorced and her ex-husband’s name was still on the mortgage. Since she had not consulted him prior to listing the house for sale he was threatening to sue her. I had no idea of the legalities of their situation or if this guy really had standing to sue her but needless to say I wasn’t surprised when we received a termination letter from the seller’s attorney stating that they were not moving forward with the sale. The status of the listing was changed to “withdrawn” in the MLS the same day and with that we saw our last real chance of qualifying for the $8,000 tax credit vanish.

The seller’s agent told our agent that she would be the first person she called if/when they relist the house. We really did love that house and if it does come back on the market and we still haven’t purchased a house we will definitely take a second look at it.

Whatever Happened to… 06/14/2010

We saw this house back in February. 4 bedrooms, 2.5 half baths, 2100 square feet single family home built in 2006 listed at $384,900. This house had a lot of the things we’re looking for; Large updated kitchen, hardwood floors, large master bedroom, a nice fenced in backyard.

Click pictures to enlarge

But at the time our budget was $350,000 so the price was an issue. We also weren’t crazy about the neighborhood, the houses were very close together and there was a fire house right across the street and we were concerned about the sirens.

So whatever happened to this house? After over 125 days on the market this house is still ACTIVE.

Is it worth a second look? After three months I will admit this house does look really good compared to a lot of the houses we’ve seen since then and the price doesn’t seem so outrageous now. But, we’re still not willing to compromise on location so this house is still off the list.

What could I get for $400,000 in… 06/09/2010

6 Comments

Salisbury, Maryland?

4 bedrooms, 3 full baths, 3,000 square feet single family home built in 2005 right on the water.

click picture to enlarge

6 Comments

What’s the Catch? 06/07/2010

4 bedroom, 2.5 bath, 2300 sq foot single family house built in 2008 listed at $386,900. The description reads like a fairytale and has pictures to prove it.

“Lg 2yrs young 4BR Colonial, open & airy floor plan, HW floors, 9' ceilings, EIK w/maple cabinets, SS appliances & center island, FR w/gas FP, formal DR, deck & fenced backyard. full basement On a quiet dead end street. A must see.”

click pictures to enlarge

On paper and in person this house has everything we’re looking for and more at a really good price, but as I’ve learned if it seems too good to be true…

So what’s the catch? It’s the nicest house on the block…by FAR. The house across the street sold for $210,000. Talk about poor resale value. You never want to be the nicest most expensive house on the block and certainly not by $175,000. As much as this could have been our dream house, it definitely was not our dream neighborhood.

Lesson Learned? Google maps is your friend! Use it if you’re not familiar with a neighborhood. It could save you a trip.

The house across the street

If I had a $1,000,000 06/04/2010

I would buy,

this home for sale for $979,000 with 5 bedrooms and 4 full baths, 1 half bath. This home was built in 1996 on a lot size of 1.09 Acre(s). Includes 3 car garage, in-ground pool and a professionally finished basement that offers five more rooms and over 2,000 square feet of additional living space.

click pictures to enlarge

HOA Fees, the Great Equalizer 06/02/2010

Since single family dream homes are so hard to find, we started to entertain the idea dream townhouses.

This townhouse looks a lot like our dream house. 3 bedrooms, 2.5 baths, finished basement, hardwood floors, spacious kitchen, large master bedroom with walk in closet, an awesome master bath. But being listed at the very top of our budget at $399,900 the $275 HOA fee pushes it completely out of our price range.

The next townhouse has a lot of the same great features as the first townhouse but is listed slightly lower at $389,900. Plus it’s an end unit, has a 2-story family room and a great private side yard for BBQ and entertainment. But the HOA fee for this unit is higher than the first at $288 a month, which puts us at $2,331 and again pushes us out of our price range.

This townhouse has great curb appeal. This end-unit townhouse has 3 bedrooms, 2.5 baths and a full finished basement and is listed at $349,900. Considering the lower price point I wasn’t expecting to like what I found inside buy I was pleasantly surprised. The inside features updated kitchen with granite countertops, hardwood floors, crown molding and a fire place. The estimated mortgage on this townhouse would be $1,833, which would be very affordable for us. But with an HOA fee of $220 it brings the monthly payment up to $2,103.

Lesson Learned? The monthly mortgage payment on a $400,000 property is $2,096. So, although these townhouses are updated and priced lower than a lot of the single family homes we’ve seen, the cost of the HOA fee makes up for (and in some cases exceeds) the difference in the sales price. So we’re going to be patient and keep waiting for a single family home to come on the market that meets our needs and budget.

*Numbers were estimated using Zillow’s Mortgage Calculator (5.1% interest rate) and does not take into account taxes, homeowners insurance, PMI, etc.

Quote of the Day 05/31/2010

From the Wall Street Journal:

“One of the disappointing aspects of a housing bust is that it doesn’t actually mean ordinary Joes can now afford stately homes with views of the Golden Gate Bridge or luxury apartments overlooking Central Park in Manhattan.”

James R. Hagerty