Home buying 102...

[UTfball68]

Alright boys and girls, getting more comfortable with the financials of buying a home. I've been looking on and off the last year or two, and realized I have a sliding scale of what I would find as an acceptable dwelling. I put together a list of my perfect home, and prioritized that list, and have been playing one big game of give and take. That being said, I'm pretty serious about the following home, but find myself still being the ignorant first time home buyer. So let me have it:

http://www.zillow.com/homedetails/1207-Cavalier-Ct-NW-Concord-NC-28027/5674987_zpid/

I'm talking with the real estate agent now. My primary concerns stem from the age of the house in the form of the electrical work and plumbing. My assumption after looking at the kitchen is, with the modern appliances, electrical has to have been upgraded to some extent.

I like the fact that it's old and has character. It has a decent sized lot. Plenty of garage/workshop space. Plenty of living space. It's far enough out of the way to offer me the amount of seclusion I want, while having easy access to Concord/Charlotte/Salisbury. And it's about as smack dab in the middle of mine and Bailee's place of emoployment as you can get (23.36 miles for her and 23.83 miles for me).

So since I don't have a clue what I'm doing or need to look for, as well as only looking at the positives...what do I need to be asking??? What are red flags??? What's going to make me not want this house???

 

[jeepinmatt]

Looks pretty good. I've got friend who've paid more money for about 1/2 as much square footage and 1/4 the lot. Make sure you check out the area around the times you'll be going to a from work. I-85 around Concord is real nice at the right time of day, but it's a whole nother animal morning and afternoon.

 

[shawn]

Wow, that's pretty nice. And dirt fucking cheap.

I'd want to know if there was any knob-and-tube wiring. I wouldn't expect to see it in the 30s, but it could happen. If it's in place and in good condition, it may not be anything to worry about. But insurance companies and (sometimes) lenders are concerned about it, and may want an electrician to inspect it. The biggest problem is that people will install insulation over it, and that's a huge no-no (and potential fire hazard).

Plumbing... is it on well/septic or city (or mixed... city sewer with a well, etc). How much galvanized pipe still exists in the plumbing system? That's an issue, especially on the hot side (since it rusts/degrades more quickly).

But really... if it were me, and the house looked half as good in person, I'd make an offer.

 

[Blaze]

My last house was built in 1939 and it was almost all knob and tube, and it was a renovated house. My grandfather spent a couple of days and tore it all out and replaced it. That stuff is deadly.

But that house looks great, lot is nice, price is CHEAP. Sounds really great provided it is as nice as the pictures and there isn't some Section 8 houses or a landfill next door.

 

[drkelly]

No offense, but I wouldn't buy a home that old.

 

[UTfball68]

No offense, but I wouldn't buy a home that old.

No offense taken. I know the odds and ends and idiosyncracies with old homes can be a never ending money pit...so if the house isn't right, I have no issues walking away.

Looks pretty good. I've got friend who've paid more money for about 1/2 as much square footage and 1/4 the lot. Make sure you check out the area around the times you'll be going to a from work. I-85 around Concord is real nice at the right time of day, but it's a whole nother animal morning and afternoon.

Yeah I'm looking to buy as much house for the money I have as I can right now, so 5 years from now, I'm making a nice chunk of change when I sell. As for traffic, we'd both be traveling 29 the majority of our routes...me in to Salisbury, her right across from South Park mall.

Wow, that's pretty nice. And dirt fucking cheap.

I'd want to know if there was any knob-and-tube wiring. I wouldn't expect to see it in the 30s, but it could happen. If it's in place and in good condition, it may not be anything to worry about. But insurance companies and (sometimes) lenders are concerned about it, and may want an electrician to inspect it. The biggest problem is that people will install insulation over it, and that's a huge no-no (and potential fire hazard).

Plumbing... is it on well/septic or city (or mixed... city sewer with a well, etc). How much galvanized pipe still exists in the plumbing system? That's an issue, especially on the hot side (since it rusts/degrades more quickly).

But really... if it were me, and the house looked half as good in person, I'd make an offer.

The info the realtor sent says well water and septic. A retarded monkey on an acid trip probably has electrical technical skill than I do...so that's really my only big concern...because that's a major cost I couldn't do myself.

As for price of the home...I've found Condord, Albemarle and Mt. Gilead to have ridiculous deals on the market right now. At this point in time, my 3 credit scores are all above 755 with one at 794. The terms I've gotten have been foir 200k, interest no more than 4.75% fixed. I'd be looking at about a grand a month on principal/interest on a 30yr mortgage and about 1200/month on a 15 year. If I were to add my girlfriend to the mortgage, we could double the principal amount and lower the interest rate to 4.175. All of these are FHA loans with 3.5% put down plus closing fees.

My last house was built in 1939 and it was almost all knob and tube, and it was a renovated house. My grandfather spent a couple of days and tore it all out and replaced it. That stuff is deadly.

But that house looks great, lot is nice, price is CHEAP. Sounds really great provided it is as nice as the pictures and there isn't some Section 8 houses or a landfill next door.

Its actually right across the street from the Cabarrus Country club, has an assisted living center a few blocks away...and is about a half mile from S&D coffee. Anyone know the area??? I know what I've seen as I drive by, but not much beyond that.

 

[Lurch830]

House definitely has some character, I'd at least go look at it (several times if you want to) & make an offer. Hopefully during the update they added insulation. My brother bought a house built in the 20s that had been updated, but still had little to no insulation. He ended up tearing the walls up to add insulation & put up sheet rock.

Not sure where either of you work, but that's ~5 miles from me and my evening commute is ~25 minutes from the UNCC area (7:30-4:30).
Take I-85 to 485 and get off on 49 or Rocky River Road...once you hit 485 you can set the cruise at 70 and there's little traffic.

 

[shawn]

As for price of the home...I've found Condord, Albemarle and Mt. Gilead to have ridiculous deals on the market right now. At this point in time, my 3 credit scores are all above 755 with one at 794. The terms I've gotten have been foir 200k, interest no more than 4.75% fixed. I'd be looking at about a grand a month on principal/interest on a 30yr mortgage and about 1200/month on a 15 year. If I were to add my girlfriend to the mortgage, we could double the principal amount and lower the interest rate to 4.175. All of these are FHA loans with 3.5% put down plus closing fees.

Whatever you do, don't ever, ever, ever get a 30yr mortgage. Go 20, do 15 if you can afford it.

The amortization tables for 30yr mortages are terrible. You basically pay nothing but interest for the first 10 years.

 

[shawn]

Wall insulation doesn't add much efficiency, especially if you're talking about a house that has windows that are more than 10 yrs old. The nicest thing about wall insulation is that it decreases the likelihood of mold/mildew/etc on interior surfaces behind furniture. Basically, the wall is cold in the winter, the inside is warm and humid... except behind that dresser, where now it's cold and damp.

 

[krzyabncanuck]

Just something I have learned over buying my 3 homes. Not all at one time either . A housing inspector is not an expert on everything inside a house. I hired a plumber / electrician / HVAC guy to come look at this last one before I bought it so I knew more what I was getting into. Me and the wife fell in love with an older home up by Albemarle but once I went in the crawl space it was a no go. The foundation was falling apart. Had an engineer go out there and he said about 100,000 to make it right. No thanks.

 

[mbalbritton]

DO NOT, DO NOT! send that link to my wife. That's a gorgeous house.

Whatever you do, don't ever, ever, ever get a 30yr mortgage. Go 20, do 15 if you can afford it.

The amortization tables for 30yr mortages are terrible. You basically pay nothing but interest for the first 10 years.

This is something I ponder often. Why not go with the 30 year mortgage and make payments equal to or greater than a 15-20 year mortgage. You get a lower rate and any overpayment goes direct to principle. Or am I missing something?

Also, get your mortgage secured SOON! Rates are going up.

 

[shawn]

The shorter the mortgage term the lower the rate. You're better off getting a 15 year than getting a 30 and paying it like a 15.

 

[DSM Turbos]

The big question to me would be why has that house been for sale for almost a year and a half and since it was listed it has gone down $17 per square foot which is a lot for something that price. Maybe the location, maybe something else. Rates have steadily been increasing of the past 2 months. Up over 1% since we closed on our house.

 

[drkelly]

Also, get your mortgage secured SOON! Rates are going up.

x2 on this. Rates bottomed out during the 4th quarter of 2012. We will likely never see rates that low again in our life time.

 

[UTfball68]

Whatever you do, don't ever, ever, ever get a 30yr mortgage. Go 20, do 15 if you can afford it.

The amortization tables for 30yr mortages are terrible. You basically pay nothing but interest for the first 10 years.

That was the plan. I am prepared for $1500/mo on principal/interest...and a 15 year was roughly 1200/mo. The only catch to that was my debt to income ratio. A couple lenders didn't like the fact that my last 3 semesters at UT cost me 60k...so it pushed my ratio right to 50%, but my ace in the hole is my girlfriend, add her name to the mortgage and there are no worries.

Just something I have learned over buying my 3 homes. Not all at one time either . A housing inspector is not an expert on everything inside a house. I hired a plumber / electrician / HVAC guy to come look at this last one before I bought it so I knew more what I was getting into. Me and the wife fell in love with an older home up by Albemarle but once I went in the crawl space it was a no go. The foundation was falling apart. Had an engineer go out there and he said about 100,000 to make it right. No thanks.

That's the route I was inclined to go, I figured I don't attempt to perform surgery, so I'd let an expert handle the critical reviews.

The big question to me would be why has that house been for sale for almost a year and a half and since it was listed it has gone down $17 per square foot which is a lot for something that price. Maybe the location, maybe something else. Rates have steadily been increasing of the past 2 months. Up over 1% since we closed on our house.

That was one of the red flags for me...and I plan on talking to the realtor once we're face to face, and I'd think something would jump out at me if it's major.

 

[UTfball68]

x2 on this. Rates bottomed out during the 4th quarter of 2012. We will likely never see rates that low again in our life time.

I've been tracking them pretty closely...looks like property value and interest rates are on their way up. So I didn't catch them at the bottom, but I feel if I pull the trigger on something even in the next 6 months, it'll be better than 8 years ago.

 

[BrianGreen]

That is a beautiful house. I would definately get a home inspection - go everywhere with the inspector. Possibly even get an electrician and plumber to look at it too. We are in the process of buying a house also. I crawled everywhere with the inspector and noticed a couple issues that need to be addressed. I have worked in residential construction for over 10 years prior to my current job and the stuff we found dosent scare me. Big things to look out for is structural condition, plumbing, electrical, and HVAC.


That house looks really good from the pictures. It has a ton of character.

 

[DSM Turbos]

That was one of the red flags for me...and I plan on talking to the realtor once we're face to face, and I'd think something would jump out at me if it's major.

Are you using your own agent or the sellers agent? I would strongly suggest not using the seller agent if you are going that route.

Also, even if things are great with the gf, I personally would not put a gf on the mortgage.

 

[2010nctaco]

Is that off of weddington rd? There are some nice houses in that area, but there are also some public housing apartments behind s&d. When I was looking at houses I always rode through the area at about 10-11 on a Friday or Saturday night to get a feel for the area. If there were parties ect. I passed. Just a little advice. Good luck. Concord is a nice area. A little busy sometimes but close to everything.

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[UTfball68]

Are you using your own agent or the sellers agent? I would strongly suggest not using the seller agent if you are going that route.

Also, even if things are great with the gf, I personally would not put a gf on the mortgage.

Initial meet, just to see the house will be with the sellers agent, but I do have agent friends waiting in the wings.

And the gf has been around for 9 years...we've both already said, one name on the mortgage, but if it came to making or breaking getting the house we wanted, we'd break that rule. As is...shouldn't be a problem, unless we started looking at 300k houses instead, of 200k houses. Not really looking for 300k+ homes though, because new job already told me to plan on moving up to a larger facility in the next 3-5 years.

Is that off of weddington rd? There are some nice houses in that area, but there are also some public housing apartments behind s&d. When I was looking at houses I always rode through the area at about 10-11 on a Friday or Saturday night to get a feel for the area. If there were parties ect. I passed. Just a little advice. Good luck. Concord is a nice area. A little busy sometimes but close to everything.

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I'm not sure where weddington rd is...but looking on google maps, it does look like what's about 25 apt complexes behind S&D...which looks to be as close as a few hundred yards from the house. They don't look terrible, but definitely something to look in to. Thanks.

 

[drkelly]

I would check the DOT site to make sure no big highway projects or anything like that are coming too close to the house.

http://www.ncdot.gov/projects/

 

[2010nctaco]

I'm not trying to sway you. But I do know concord pd spends a good bit of time in that apt complex. Maybe that's why it's been in the market so long.

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[UTfball68]

Thanks for the info...exactly what I'm looking for. I actually hadn't noticed the complexes until you said something. The girl and I discussed if they're higher scale, that's one thing...if they're more of a 'project' no thanks.

 

[UTfball68]

The big question to me would be why has that house been for sale for almost a year and a half and since it was listed it has gone down $17 per square foot which is a lot for something that price. Maybe the location, maybe something else. Rates have steadily been increasing of the past 2 months. Up over 1% since we closed on our house.

And the answer is...

I'm not trying to sway you. But I do know concord pd spends a good bit of time in that apt complex. Maybe that's why it's been in the market so long.

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Winner winner...chicken dinner. The old lady and I drove out to see it last night. The house and land themselves are ABSOLUTELY gorgeous. However, on the drive up to the driveway, there were a handful of old dilapidated buildings...which I could live with...but the 'no-go' came from the girl when we realized the apt complex driveway and the home's driveway almost interesect. That could have been lived with as well (but who really wants to settle with this kind of investment) until we rode around the complexes...not terrible, but certainly not upscale, like I was expecting with the surrounding area.

 

[rodnocker]

I am an information type person, so I find information...

Crimes in the area here.

Last few owners here... If you could find any of them, they might could tell you about the house from actually living there.

The purchase in 4/27/1984 was for $60,000.00
The purchase in 4/29/1992 was for $76,500.00
The purchase in 10/6/1995 was for $96,000.00
The purchase in 7/13/2005 was for $240,000.00

Above can be found here.

Personally, I would be curious why the current owners are willing to take a $55,000.00 loss to sell the house. Could be they are having to relocate due to job or something legit, but could be a good question to ask.

Their asking price does seem to be inline with tax value though which is $188,260.00

This year's tax amount of $1,317.82 for county and $903.65 for Concord City tax is still due as shown here. (click on the last link 2013 013971)

Just something to keep in mind. Find out as much as you can from people outside the sale of the house. Their Realtor works for the seller, and if you are using one, so does yours. No one involved gets paid until the house sells. Do your own research and get the advise of professionals.

Good luck