No Holds Barred

by **Doc** » Sat Dec 12, 2009 6:26 pm

So, I've just begun the process of looking into buying my first house. Went and saw the first couple options today, so that was cool.

Anyways, it sounds like any house I'd buy would either be required or strongly recommended to have a home inspection. I'm not quite ready for that process, but am looking to hopefully find something prior to the end of April ($8000 tax credit). So, are any of you home inspectors or know a reliable guy/company who does this? It just seems like I'd want somebody or some business that is highly recommended. Would hate to walk into a money pit of a house.

If anyone has any suggestions, I'd love to hear them. I'm in Parma, and will likely be looking in Parma, Brook Park, Middleburg, Berea area, if that matters.

And, if anyone has any tips for anything "buying a house" related, especially for a newb like me, I'm all ears.

by **Orenthal** » Sat Dec 12, 2009 7:29 pm

Doc I have no recommendation, but am also looking for a house. Would have bought prior to the original expiration, but the combo of not finding a house I liked and poor stock market investments slowed my roll. I am now looking to pick up something relatively cheap in the Parma/Brooklyn Heights area. Taking my 8,000 tax credit and buying an invesment property. Basically piggy-backing your thread. Will be looking for the same thing...

by **Doc** » Sat Dec 12, 2009 7:42 pm

Excellent. If I could afford to buy in Middleburg like where your at, I'd be all over it. Probably stuck in Parma, but that's cool.

If you find any good deals, let me know. Haha, I'm probably looking for a nice clean Parma bungalow. Something where there's been an old lady living there for 50 years. Just something that needs some updated decorating.

by **FUDU** » Sat Dec 12, 2009 7:46 pm

My experience is from recently buying a home and having to have an inspection, and from having some contacts in real estate and appraising. Home inspections are a bit tricky in the sense that you can take too much from them or not take enough.

It is nearly impossible to get any legit info on say stuff like a furnace or ac unit. But getting solid info on foundation and structural stuff is much easier.

IMO get a good opinion on the foundation and water build up, depending on the age of the home there are some real concerns with what type of blocks were used and how they were laid in building the foundation.

Be specific about the questions you ask or your concerns for sure.

Good luck.

by **Erie Warrior** » Sat Dec 12, 2009 8:07 pm

Just bought a house 3 weeks ago. My real estate agent hooked us up with the home inspector, I'd ask him/ her to help you out. If you don't have an agent, I'd strongly suggest getting one. Ours helped us out quite a bit with the process, as it was our first house as well.

Our inspector provided us with a comprehensive report (I'd assume this is SOP) which was very helpful. It allowed us to get more money out of the seller for the repairs. We told them they could hire a contractor to fix the issues, or they could front us the money and we'd take care of it. They fronted the cash. I'd suggest that route for you as well, as long as you're comfortable fixing things.

Suggestions I have for you:

-Do it soon- $8,000 is a lot of money, and rates are low
-Pay for the place you want, it is worth it in the long run.
-Closing costs are a bitch. Figure $5,000 to $8,000 (depending on price) on top of the down payment. We paid full asking price for the house, but the seller ended up kicking in almost $10,000 to close, we didn't pay anything.
-Home Warranty- we used American Home Shield- $500 covers every major appliance and system in the home for a year. You pay $60 to have a repair man come out, everything else is covered. Our appliances are old, so I figured it was a wise investment.
- Check out the neighborhood at night, on a weekend. Summer is best for this, but it's still a good idea now. Knock on doors as well. Ask the neighbors is there have been any issues with the neighborhood.

by **dem425** » Sat Dec 12, 2009 9:05 pm

This guy charged $300 and did an EXCELLENT job for my daughter and son-in-law (Sean McCullough, should the guy ask)
They live on Sandalwood in Strongsville.........Highly Recommended!

Inspector: David Macy
5672 Breckswood OvalBroadview Hts., OH, 44147
Phone: 440-740-0068 Fax: 440-740-0088
Email: dave@hshinspections.net
http://www.hshinspections.net/

by **swerb** » Sat Dec 12, 2009 11:14 pm

The inspection is a vital and often overlooked part of the home purchase process. So many times have I seen people buy homes, no inspection, hack inspection ... only to find themselves swimming in thousands of dollars of unanticipated repairs months later.

I cannot reccomend enough ... take a half day off work and walk through the house while the guy does the inspection. No inspector worth their salt will mind. You get to know that house, inch for inch, so well by doing that. Ask questions, shadow the guy through the inspection. And take some time one night to read the thing front to back over a couple of cold beers when you get the PDF/hard copy.

I'd also highly reccommend budgeting for anticpated repairs. If you are buying a house with a 17 year old furnace/air conditioner ... assume its gonna go in 3 years and start saving for the new one to avoid the left hook of a 6-7k unexpected expense.

Guy that did our inspection was super. Think hes primarily just a Twimsburg/Aurora/Hudson/Macedonia guy ... but I will try and find his info for you.

Good luck Doc and OJ. Talk to me when it comes time to get a loan.

by **DrPoove** » Sat Dec 12, 2009 11:34 pm

Swerb wrote:The inspection is a vital and often overlooked part of the home purchase process. So many times have I seen people buy homes, no inspection, hack inspection ... only to find themselves swimming in thousands of dollars of unanticipated repairs months later.

As someone in the construction industry who used to be in residential homebuilding you should do it. No brainer.

Ask your agent or find someone thought a friend who has used one in the past, but the money you will spend for one will save you more in the future.

Questions, ask.

Good luck and congratulations!

by **Orenthal** » Sun Dec 13, 2009 12:43 pm

Doc wrote:Excellent. If I could afford to buy in Middleburg like where your at, I'd be all over it. Probably stuck in Parma, but that's cool.

If you find any good deals, let me know. Haha, I'm probably looking for a nice clean Parma bungalow. Something where there's been an old lady living there for 50 years. Just something that needs some updated decorating.

Bingo! There is a reason I am in Middleburg and it has nothing to do with me owning a house here... :)

by **FUDU** » Sun Dec 13, 2009 3:07 pm

BTW isn't it mandatory to get an inspection now a days?

by **swerb** » Sun Dec 13, 2009 8:05 pm

FUDU wrote:BTW isn't it mandatory to get an inspection now a days?

Today, pretty much, yes.

It was one of the things a lot of lenders got lax on pre-mortgage meltdown.

by **leadpipe** » Sun Dec 13, 2009 9:50 pm

This is actually the one time in your life you should be happy to run into a dick.

The guy that did my house came highly recommended by some people in the know, and this cat was gung ho to find something amiss. Almost made the Lead Man nervous.

But, not only came out of it confident in my purchase, but had an extensive record on what to budget to replace etc.

Hell, worth it just to get the model numbers for your ac/furnace etc. - makes maintenance easier.

by **peeker643** » Sun Dec 13, 2009 10:09 pm

If I ever find the hump that did mine he'll get his throat slit. I was still living in Phoenix when it went down. He never noted the plumbing nor the class action that was a part of most of other homes in the development. I have my doubts whether he ever stepped in the house. Needless to say, three years or so after moving in, and a year or two after the class action statute ran, we woke up to a kitchen/bathroom/dining room full of water. It happened three times and I finally had to have it all replaced at my own expense. The insurance company paid three times for what was damaged but not to fix the underlying problem.

That was a huge expense by the way. And I'm sure I'll be hearing from my insurance company as to how they've decided to end our relationship when the policy term expires.

Do not make that mistake. Get someone who comes recommended from someone you know and trust. Realtors sometimes ain't that person. But make sure, like FUDU said, that the major components are not a mystery and that you're not stepping into an inch of water one Monday morning.

by **Fubar** » Sun Dec 13, 2009 10:18 pm

If the house is empty be sure the water is turned on at the street. Home inspectors can't turn on the water main. Test every faucet and drain. Be sure to test for water pressure. Hopefully you find a great house. We closed on ours in Medina a couple of months ago. The whole buying process is a pain in the ass, so take your time and find what you want.

by **View from 171** » Mon Dec 14, 2009 5:26 pm

I'm a homeowner myself and am currently renovating 2 houses that will eventually be turned into rentals or sold. Just to add what everyone else said.

1. Get a home inspection. This is non-negotiable.
2. Never hire a home inspector who is recommended by the realtor. This is bad form. Get a recommendation from a friend, coworker or family member.
3. If you have a specific concern over the house, find a reputable tradesman to look at if for you. If you think the HVAC is shot, hire a HVAC tech to look at the house. If your concerned abou the electrical, get an electrician. It is worth it in the end.
4. Remember one thing. There is no licensing requirement to use the term "Home Inspector" in the state of Ohio. Any assbag can role into a weekend class and then call themselves a "home inspector."
5. Make sure the inspector you hire will pay attention to issues that you are concerned about. HVAC, roof, electrical, etc.
6. Do the inspection with the inspector. You'll be amazed at what you learn. If the inspector won't let you, you don't want him/her.
7. Do not get home warranty. Waste of money. The warranty repairs only slap a band-aid on the problem until the warranty expires.....and then bam.....major problems.
8. Talk to the neighbors to see if they know if anything had ever gone wrong in the house. Major water damage. Mold growth, etc.

Hope this helps.

by **FUDU** » Mon Dec 14, 2009 5:39 pm

3 & 8 are excellent points by I71.

Especially an electrician if you happen to be totally clueless about that stuff.

by **aoxo1** » Mon Dec 14, 2009 7:03 pm

View from 171 wrote:2. Never hire a home inspector who is recommended by the realtor. This is bad form. Get a recommendation from a friend, coworker or family member.

Whoops.

by **Erie Warrior** » Mon Dec 14, 2009 9:44 pm

View from 171 wrote:2. Never hire a home inspector who is recommended by the realtor. This is bad form. Get a recommendation from a friend, coworker or family member.

7. Do not get home warranty. Waste of money. The warranty repairs only slap a band-aid on the problem until the warranty expires.....and then bam.....major problems.

Ours was setup by our realtor, and was great. I walked through the entire place with him, talked about how to correct some problems, and he pointed out some potential future issues. Comprehensive report after inspection, with pictures and suggested course of action for each issue noted.

All of our appliances conveyed, and are relatively old. The warranty is renewable, and covers everything. It's like any insurance, really. If you don't have to use it, great. But $2-3,000 for a new air conditioner is not in the budget right now, but the warranty is. I've talked to several people who used their warranty with in a few months after purchasing their house. Came highly recommended.

My house has never flooded (through several hurricanes and numerous nor' easters), but I had to get flood insurance.

by **View from 171** » Tue Dec 15, 2009 12:20 pm

Erie -

I'm not saying that every home inspector recommended by a realtor is bad (I'm sure there are some good ones out there), but there is a conflict of interest there. I know of realtors who get a little kickback from the inspectors when they are recommended!

I'm sure there are some uses for a home warranty, but the warranty services typically band-aid the problem instead of repairing a problem. Then you've paid for services where they haven't fixed the problem. The warranty providers will continue to band-aid the problem and you will never get it fixed. If you ever need the warranty service, ask the provider under what circumstances the "problem" gets completely replaced.

by **FUDU** » Tue Dec 15, 2009 5:43 pm

View from 171 wrote:Erie -

I'm not saying that every home inspector recommended by a realtor is bad (I'm sure there are some good ones out there), but there is a conflict of interest there. I know of realtors who get a little kickback from the inspectors when they are recommended!

I'm sure there are some uses for a home warranty, but the warranty services typically band-aid the problem instead of repairing a problem. Then you've paid for services where they haven't fixed the problem. The warranty providers will continue to band-aid the problem and you will never get it fixed. If you ever need the warranty service, ask the provider under what circumstances the "problem" gets completely replaced.

Warranties are simply risk reward stuff. Whether for a home or for a new appliance or electronics. Getting a warranty for a house with used appliances and what not is a pretty smart move b/c you do never know when something used will take a crap and it is used so there is no other warranty. The extended warranties sold on new items like at Best Buy, I always recommend no. It simply isn't worth it when taking into account the product has a manufacturers warranty AND the % of new electronics and appliances that do go bad inside of a few years is very very slim.

by **Orenthal** » Sun Jan 17, 2010 8:45 pm

Bumping this because I may be close to putting in an offer...

Anyone have any recommendations for a housing inspector, and is there any benefit to getting the house inspected before making an offer? Is it possible? The house I am looking at is empty, so not like anyone would be to put outta the way having me and the inspector walkthrough. I know I can make the offer contingent on the inspection, but I like to have that info so I can make my low offer more solid...

by **SABRman** » Mon Jan 18, 2010 12:48 pm

I just bought my 2nd home a few months ago and used >>>

http://www.whinspections.com/

I was very happy with him. No matter who you use, I'd check to see what type of certifications/experience they have. As mentioned by others, you need to be real careful, as none of these guys can be held liable for their work. Also, some of them try to find things (manufacture things) just to justify their work.

As far as getting the inspection before you make the offer, I don't think it makes a lot of sense. If the seller doesn't accept your offer, or there's another buyer, then you just wasted $300 to $500. Instead, if you have any friends in the trades, might be worth it to see if they can tour the house with you and your agent before you make the offer. While they won't be able to be nearly as comprehensive as an inspector, they should be able to identify any obvious major issues (obvious to those who are a little more handy).

Also, it's inherent in the process that your offer is based on the fact that you did not inspect the home. After the inspection, you'll then have the right to change your offer based on the findings....so that's already accounted for. In fact, it's seems pretty common for people to take the inspection results and use them to negotiate for a better price, or some minor/major improvements.

My only other advice is to avoid getting emotional....that always leads to paying more than the house is worth. Decide what the house is worth to you ahead of time, and then don't budge from your end point. Houses are a dime a dozen, if one falls thru, you'll find another. This is especially true right now as it's an incredible buyers market

Best of luck.

by **Doc** » Mon Jan 18, 2010 12:54 pm

Ironically, I believe I'm getting close myself. My realtor gave me the heads up that Parma was doing their $10,000 first time homebuyer grant/loan again, so I put in my application for it on Thursday. I can't make any bids until I hear back from them, though. Anyways, I've got one in mind. I keep trying to find something else to beat it, and I keep ending up back where I started. So, unless something changes soon, I think I've got one in mind.

Question...is there a way to reduce property taxes? That is the one negative I keep seeing in regards to the house I like. I've heard you might be able to get someone from the city to come out and appraise the property, but I don't know for sure.

by **SABRman** » Mon Jan 18, 2010 1:08 pm

I think it really depends on the city/county. Will you be buying the house for less than the current appraised value? If so, and it's a arms length transaction, the city should decrease the tax value of your property. In some places, they only do this every x years. There's usually an appeals process, but that sometimes also only happens every x years. If the amount you offer is lower, my best advice is to call up the county auditors office and describe the situation.....they will tell you.

by **Orenthal** » Mon Jan 18, 2010 2:03 pm

SABRman wrote:I just bought my 2nd home a few months ago and used >>>

http://www.whinspections.com/

I was very happy with him. No matter who you use, I'd check to see what type of certifications/experience they have. As mentioned by others, you need to be real careful, as none of these guys can be held liable for their work. Also, some of them try to find things (manufacture things) just to justify their work.

As far as getting the inspection before you make the offer, I don't think it makes a lot of sense. If the seller doesn't accept your offer, or there's another buyer, then you just wasted $300 to $500. Instead, if you have any friends in the trades, might be worth it to see if they can tour the house with you and your agent before you make the offer. While they won't be able to be nearly as comprehensive as an inspector, they should be able to identify any obvious major issues (obvious to those who are a little more handy).

Also, it's inherent in the process that your offer is based on the fact that you did not inspect the home. After the inspection, you'll then have the right to change your offer based on the findings....so that's already accounted for. In fact, it's seems pretty common for people to take the inspection results and use them to negotiate for a better price, or some minor/major improvements.

My only other advice is to avoid getting emotional....that always leads to paying more than the house is worth. Decide what the house is worth to you ahead of time, and then don't budge from your end point. Houses are a dime a dozen, if one falls thru, you'll find another. This is especially true right now as it's an incredible buyers market

Best of luck.

Thanks! This post is along the lines of my thought process. I do work in the trades, an estimator for a wall finishes company so I do know enough people to get the major systems checked on. Really the only thing that worries me is that it has steam heat. It is not a hot water system, or at least I am 90% sure it isn't so I want that looked at by a tradesman...

Will look into the Home Inspection company, thanks again.

The emotional part I have in check, in fact people keep giving me the business cuz they see to think I have no interest in it. Also I have a price in mind for my offer, minus something drastic in the inspection...

by **Orenthal** » Mon Jan 18, 2010 2:18 pm

Doc wrote:Ironically, I believe I'm getting close myself. My realtor gave me the heads up that Parma was doing their $10,000 first time homebuyer grant/loan again, so I put in my application for it on Thursday. I can't make any bids until I hear back from them, though. Anyways, I've got one in mind. I keep trying to find something else to beat it, and I keep ending up back where I started. So, unless something changes soon, I think I've got one in mind.

Question...is there a way to reduce property taxes? That is the one negative I keep seeing in regards to the house I like. I've heard you might be able to get someone from the city to come out and appraise the property, but I don't know for sure.

On the property taxes it makes me laugh... I love the houses in Cleveland Heights and many are in my price range, yet the property tax is almost as much as my loan payment would be... Um, no wonder some areas cannot attract growth of any kind. The house I am looking to make an offer on is in Cleveland, Old Brooklyn between South Hills and Schaff, and I was floored when I saw their property tax rates. I will be running for council to change that shit. :)

by **Commodore Perry** » Fri Jan 22, 2010 2:34 pm

Swerb wrote:.

I'd also highly reccommend budgeting for anticpated repairs. If you are buying a house with a 17 year old furnace/air conditioner ... assume its gonna go in 3 years and start saving for the new one to avoid the left hook of a 6-7k unexpected expense.

I agree with this 100%. Home buyers usually fail to take into the account the immense costs of maintaining a home.

Every home is slowly falling apart. If you own a home for 30 years, it is highly likely you will spend as much fixing it up and updating it as you spent purchasing the home.

I would set a minimum of $300 a month for home repairs. Most months you won't touch it, but years from now as you have to replace the roof, HVAC, windows, carpeting, paint, siding, driveway, kitchen cabinents, etc... you will be very glad you did so.

by **Orenthal** » Fri Jan 22, 2010 2:44 pm

Commodore Perry wrote:
Swerb wrote:.

I'd also highly reccommend budgeting for anticpated repairs. If you are buying a house with a 17 year old furnace/air conditioner ... assume its gonna go in 3 years and start saving for the new one to avoid the left hook of a 6-7k unexpected expense.

I agree with this 100%. Home buyers usually fail to take into the account the immense costs of maintaining a home.

Every home is slowly falling apart. If you own a home for 30 years, it is highly likely you will spend as much fixing it up and updating it as you spent purchasing the home.

I would set a minimum of $300 a month for home repairs. Most months you won't touch it, but years from now as you have to replace the roof, HVAC, windows, carpeting, paint, siding, driveway, kitchen cabinents, etc... you will be very glad you did so.

AMEN! When I started running my numbers on the offer I was going to put in, I saw that while I wasn't going paycheck to paycheck, things would be tight. Shit just cannot be accounted for, and I am not going to cause myself anymore stress to rush and get $8,000, which I will have to wait about 12 months to get...

Doesn't help I am single and have no other income stream... Then again that intself causes less stress :-)

by **aoxo1** » Fri Jan 22, 2010 4:16 pm

Orenthal wrote:
Commodore Perry wrote:
Swerb wrote:.

I'd also highly reccommend budgeting for anticpated repairs. If you are buying a house with a 17 year old furnace/air conditioner ... assume its gonna go in 3 years and start saving for the new one to avoid the left hook of a 6-7k unexpected expense.

I agree with this 100%. Home buyers usually fail to take into the account the immense costs of maintaining a home.

Every home is slowly falling apart. If you own a home for 30 years, it is highly likely you will spend as much fixing it up and updating it as you spent purchasing the home.

I would set a minimum of $300 a month for home repairs. Most months you won't touch it, but years from now as you have to replace the roof, HVAC, windows, carpeting, paint, siding, driveway, kitchen cabinents, etc... you will be very glad you did so.

AMEN! When I started running my numbers on the offer I was going to put in, I saw that while I wasn't going paycheck to paycheck, things would be tight. Shit just cannot be accounted for, and I am not going to cause myself anymore stress to rush and get $8,000, which I will have to wait about 12 months to get...

Doesn't help I am single and have no other income stream... Then again that intself causes less stress :-)

Since you are single, have you considered renting a room?

by **Orenthal** » Fri Jan 22, 2010 7:56 pm

aoxo1 wrote:
Orenthal wrote:
Commodore Perry wrote:
Swerb wrote:.

I'd also highly reccommend budgeting for anticpated repairs. If you are buying a house with a 17 year old furnace/air conditioner ... assume its gonna go in 3 years and start saving for the new one to avoid the left hook of a 6-7k unexpected expense.

I agree with this 100%. Home buyers usually fail to take into the account the immense costs of maintaining a home.

Every home is slowly falling apart. If you own a home for 30 years, it is highly likely you will spend as much fixing it up and updating it as you spent purchasing the home.

I would set a minimum of $300 a month for home repairs. Most months you won't touch it, but years from now as you have to replace the roof, HVAC, windows, carpeting, paint, siding, driveway, kitchen cabinents, etc... you will be very glad you did so.

AMEN! When I started running my numbers on the offer I was going to put in, I saw that while I wasn't going paycheck to paycheck, things would be tight. Shit just cannot be accounted for, and I am not going to cause myself anymore stress to rush and get $8,000, which I will have to wait about 12 months to get...

Doesn't help I am single and have no other income stream... Then again that intself causes less stress :-)

Since you are single, have you considered renting a room?

Yeah I thought of that. Tried to get my brother involved, but he is too damn cheap. I think I may be too OCD to have anyother kind of roomate. Damn stock market killed what would have been a large enough down payment... lol, more like MY bad stock market decisions killed it...

by **Cerebral_DownTime** » Fri Jan 22, 2010 8:37 pm

Orenthal wrote:
aoxo1 wrote:
Orenthal wrote:
Commodore Perry wrote:
Swerb wrote:.

I'd also highly reccommend budgeting for anticpated repairs. If you are buying a house with a 17 year old furnace/air conditioner ... assume its gonna go in 3 years and start saving for the new one to avoid the left hook of a 6-7k unexpected expense.

I agree with this 100%. Home buyers usually fail to take into the account the immense costs of maintaining a home.

Every home is slowly falling apart. If you own a home for 30 years, it is highly likely you will spend as much fixing it up and updating it as you spent purchasing the home.

I would set a minimum of $300 a month for home repairs. Most months you won't touch it, but years from now as you have to replace the roof, HVAC, windows, carpeting, paint, siding, driveway, kitchen cabinents, etc... you will be very glad you did so.

AMEN! When I started running my numbers on the offer I was going to put in, I saw that while I wasn't going paycheck to paycheck, things would be tight. Shit just cannot be accounted for, and I am not going to cause myself anymore stress to rush and get $8,000, which I will have to wait about 12 months to get...

Doesn't help I am single and have no other income stream... Then again that intself causes less stress :-)

Since you are single, have you considered renting a room?

Yeah I thought of that. Tried to get my brother involved, but he is too damn cheap. I think I may be too OCD to have anyother kind of roomate. Damn stock market killed what would have been a large enough down payment... lol, more like MY bad stock market decisions killed it...

I'm moving in with you. We'll be the best of friends. Just don't touch my Hope and Change posters, and I wont touch your Ronnie Reagan action doll (Kung Fu grip?). Sometimes I sleep walk and redistribute other peoples' wealth. But pay no mind, that's neither here nor there.

by **Orenthal** » Fri Jan 22, 2010 10:18 pm

Just like Step Brother's cuz I usually steal pensions and hate on blacks and gays while sleepwalking...

Only one type of pet is allowed in the house Fatcats...

lmao

by **Doc** » Sat Jan 23, 2010 6:53 pm

Awesome...just got approved for the $10,000 from Parma. Add in the $8,000 from Obama, and I'm freaking giddy right now. Just trying to get myself mentally prepared to pull the trigger on a house. Gotta make sure I'm choosing the right one. I think I'm going to start narrowing down the list of possible home inspector's, because I think I'll be needing to do that soon.

by **Orenthal** » Sat Jan 23, 2010 7:07 pm

Doc what is the lowdown on the Parma grant? Also, and I think I may not be able to get this until I am back in the office on Monday, I have a recommendation on a housing inspector. Our company has a pretty good relationship with Dollar Bank and I have the name of the inspector they use on all their REO properties.

I'm in a real bind on this house I looked at. I know I can afford it, but only gives me a little wiggle room month to month. Nothing paycheck to paycheck, but economy and bidness being what it is there are no sure things income wise...

EDIT
Went looking quickly for info and found:
http://www.cityofparma-oh.gov/_FileHand ... newsID=101

I wonder if there are any programs like that for Cleveland. That type of grant would seal the deal for me...

by **Doc** » Sat Jan 23, 2010 9:35 pm

Parma's is a "loan", forgiven after 5 years. Essentially, it's free so long as you stay there 5 years (as opposed to 3 years for the federal $8000). It's 10% up to $100,000 purchase price (you get $10,000). There's a $36,300 gross income limit for single people, and it goes up incrementally as you add more to the household. My sister got this in 2008, and they put the $10,000 straight towards the down payment, so that's pretty sweet. Oh, and I think you aren't allowed to make a bid on a house until approved the grant application is approved by Parma. Then, you can't close in less than 45 days from the date they ok the application. Their office is on Broadview between Snow/Brookpark.

by **Orenthal** » Sun Jan 24, 2010 5:32 pm

I couldn't find the Parma plan by going through the HUD website, or for that matter anything similar for Cleveland. I will be calling on Monday to see what types of programs are offered, because it seems that it would behoove Cleveland to do the same. One thing I will never understand is why Government wastes so many resources on programs that will never show any results. I would think giving someone who has a college degree a slight helping hand would be better for the neighborhood then throwing the money down the sewer like Cleveland usually does.

I would rather they spen nothing... Disengage selfish soapbox...

Cleveland programs...
http://www.city.cleveland.oh.us/CityofCleveland/Home/Government/CityAgencies/CommunityDevelopment?_piref34_13424_34_3289_3289.tabstring=Grants%20and%20Loans

by **Doc** » Mon Feb 08, 2010 4:35 pm

OK, couple more questions for everyone.

I've narrowed my house search down to 1 house, and I think I'm ready to make an offer on it. I'm by no means in love with the house, but I do like it a lot. I'm trying to stay focused on best house for the price as opposed to getting caught up in certain things I really like.

Anyways, it's listed at $119500. It's dropped from about $130000 over the 7 months it's been on the market. I'm wondering about what I should offer as an initial bid. I've heard 10% off is sort of the norm, but I'm not sure. Would you figure the closing costs into the 10%? The house was built in 1982 and doesn't seem to have any "needs" except for the typical remodeling you'd expect. Maybe the roof, but it's hard to tell with the snow and because it's a colonial with a high roof and no real good street view to guess at if it's in decent shape. It's not occupied and there are no appliances, so should I make a bid reflecting needing ~$2000-$3000 for appliances? Is something like that factored into the list price already?

I'll tell you...buying a house is stressful. I think I'm close, though. Any tips for the negotiating process would be much appreciated, as I think it's going to be happening in the next day or so.

by **Erie Warrior** » Mon Feb 08, 2010 9:06 pm

Depends on what you want to pay in closing costs. I paid asking price, but got nearly $10K in closing. No appliances, on the market for 7 months, already dropped almost 10%. I'd offer $110,000 with closing costs. If you've got the money to close, try $100,000.

by **SABRman** » Tue Feb 09, 2010 12:12 pm

IMHO, a property is worth what somebody is willing to pay. This house has been on the market for 7 months, and clearly (so far) nobody has been willing to pay the list price. You need figure out how much the property is worth to you. Take a look at all of the comps in the area, and take a look at how much the current owners paid for the place. While the seller should reflect all of the circumstances of the house (no appliances) in their asking price, that's irrelevant, because it's up to the buyer to determine what they are willing to pay.

I also wouldn't worry about the norm....I'd just go with your own comfort level. Some people don't like to go too low in their initial offer in fear of insulting the seller. I don't think that's an issue, as all you have to do is come back with a higher offer and they will listen. In this market place, the buyer has a tremendous amount of leverage. I also think that the lower you start, the more room you have to go up. In fact, when I bought my first place, I walked after the 2nd counter offer, and they came back to me and took my offered price.

I think someone mentioned it earlier, but there aren't any hard rules you need to play by. It's all about negotiation. So, in terms how you want to handle things like paying more but asking for closing costs....that's up to you. You could also ask for appliances if you really wanted to. Most people who don't have a lot of cash like to do that since it's easier for them in the long term to pay the monthly mortgage rates rather than spending lots of cash upfront.

The most important thing is to figure out ahead of time what your max price is going to be and then make sure you stick with it. If you get anything lower than your max, you will be getting a bargain. If you pay your max, you'll still be getting a good deal as that's what the house was worth to you.

Good luck!!!!

No Holds Barred

Who is online

Who is online