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Any advice for a first time home buyer?

You're in a tough spot if you're on the way to being homeless if you don't pull the trigger. This housing market won't be doing you any favors, be aware of that going in. Hopefully in another couple years you could refinance at a lower rate but don't buy with that hope in mind. Make sure you can afford the payments even if rates don't go down in the near-ish future. Don't buy a house with obvious issues just bc of the slim market, the cost will be way worse long term.
 
I've lived downtown DPort for 9 years, 6 years at same apt and lease just ran out... and they decided to raise it 80%. So I'm lookin at houses. 7 percent interest rates.. appreciate any advice
Avoid Realtor fees if at all possible. Find a friend who has done it without before or hire a lawyer to handle paperwork for a lesser fee. These days even if you split the fees you will end up paying $10-20,000.
 
For me, it's not that I can't do some things, it's more that I've got a finite amount of free time, and for a lot of things I just don't want to spend that time on projects that someone can come out and do, probably better/faster.

Last week I had someone come out and set up my lawn sprinkler system and fix a couple of sprinkler heads that were broken. I'm certain I could've done it, but the guy was in and out in an hour, and it was less than $200. And I didn't have to mess with it; it just works.
I'm no handyman but have fixed several where you just have to screw the old one out and new one in. Once I spliced the line and put a new section in held with hose clips. Won't do that again. Few years ago I rented a jump house/water slide for kid's birthday. They came and set up and took down. About 5 minutes after they pulled the stakes out and left I had a big mound in my backyard. Yep, they puntured a hose. The spike sealed it until they pulled it our. This mound was huge and full of water. Last fall I had 5 that weren't rotating anymore and hired that done.
 
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I'm no handyman but have fixed several where you just have to screw the old one out and new one in. Once I spliced the line and put a new section in held with hose clips. Won't do that again. Few years ago I rented a jump house/water slide for kid's birthday. They came and set up and took down. About 5 minutes after they pulled the stakes out and left I had a big mound in my backyard. Yep, they puntured a hose. The spike sealed it until they pulled it our. This mound was huge and full of water. Last fall I had 5 that weren't rotating anymore and hired that done.
It does seem that replacing the sprinkler heads costs like $5 and takes just a minute or two to do. I've never had a sprinkler system though, so even knowing what type of sprinkler head they were was all new to me.

Were you able to hold the bounce house people responsible for fixing the broken line? That sucks.
 
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It does seem that replacing the sprinkler heads costs like $5 and takes just a minute or two to do. I've never had a sprinkler system though, so even knowing what type of sprinkler head they were was all new to me.

Were you able to hold the bounce house people responsible for fixing the broken line? That sucks.
Been in our house 12 years and I have replaced about 20 sprinkler heads. Did have to pay to have a couple of the valves replaced earlier this year.
 
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I've lived downtown DPort for 9 years, 6 years at same apt and lease just ran out... and they decided to raise it 80%. So I'm lookin at houses. 7 percent interest rates.. appreciate any advice

With all the storms recently; be sure to check with prior owners about any storm damage to the house and if it has been repaired or replaced.
 
What exactly does a realtor actually do to justify taking such a big cut of a home sale?
Our realtor was almost more harm than good, she said she didnt think the layout of the house would work for us before we even stepped foot inside. We have been here 12 years and love our house. She told us what she was sure what the sellers lowest number is and I offered less and he took it. I basically needed her to open the door for us and get out of the way.
 
Look at variable rate loans. Rates will be cheaper and they're more than likely to go down in the 5 or 7 year window.
 
It does seem that replacing the sprinkler heads costs like $5 and takes just a minute or two to do. I've never had a sprinkler system though, so even knowing what type of sprinkler head they were was all new to me.

Were you able to hold the bounce house people responsible for fixing the broken line? That sucks.
I believe they cut some off the bill. Enough to cover having it fixed. It was an honest mistake. I did flag the sprinkler heads but they had no idea where the lines ran exactly. Although it must have taken some damn good wacks to get through the hose line. It’s pretty stiff rubber.
 
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Our realtor was almost more harm than good, she said she didnt think the layout of the house would work for us before we even stepped foot inside. We have been here 12 years and love our house. She told us what she was sure what the sellers lowest number is and I offered less and he took it. I basically needed her to open the door for us and get out of the way.
We put our previous house on the market in October. No serious offers first month. Realtor wanted to drop the price. People told me it would sell quick in tie spring. We weren’t in a hurry so we held off. Come March it sold right away for asking price. Guess no one wants to move in the winter if they don’t have to.
 
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Look at variable rate loans. Rates will be cheaper and they're more than likely to go down in the 5 or 7 year window.
I saw an article about people with variable rate loans that are about to get hit with big jumps in their interest rates/payment amounts.

"Last year, when Jennifer Hernandez received notice that the mortgage payments on her Houston home would jump about $2,000 per month, she was stunned.

Hernandez refinanced her home loan in 2016 using an adjustable-rate mortgage loan, which has a low introductory rate for a fixed initial period."


She had a pretty big loan amount though.

"Hernandez, who is herself a loan officer, had misremembered the terms of her $1.1 million loan: rather than a 10/1 ARM, which has a fixed rate for the first ten years and resets every year after that, Hernandez had taken out a 7/1 loan."

I guess it's good if the rates go down, bad if they go up. When I got mine I didn't want to mess with the uncertainty of what was going to happen to the rate.

 
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I'm glad it worked out for you. And most of the time it does. Sometimes though, it comes with being cash strapped.

Bought in 2007 for $625K. Sold in 2010 for $310K. Took a 50 percent hit. Tough times back then.
Yeh who knows down the road. Built in Sgt Bluff in 2016 for $330 and now appraised just under $500. Houses still don’t last long when they go up for sale here. New development near us is about 1/2 full now. Noticed houses are smaller with no finished basements and fewer bed/bathrooms to keep the cost around $500. Our house is 1,700’ up but has 5 bedrooms, 3 baths and 2/3 finished basement.
 
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All joking aside, maybe find a new place to rent for a year? Interest rates will most likely be much lower a year from now. National average is right around 7% currently.
Time in the market beats timing the market, can always refinance later.
 
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I saw an article about people with variable rate loans that are about to get hit with big jumps in their interest rates/payment amounts.

"Last year, when Jennifer Hernandez received notice that the mortgage payments on her Houston home would jump about $2,000 per month, she was stunned.

Hernandez refinanced her home loan in 2016 using an adjustable-rate mortgage loan, which has a low introductory rate for a fixed initial period."


She had a pretty big loan amount though.

"Hernandez, who is herself a loan officer, had misremembered the terms of her $1.1 million loan: rather than a 10/1 ARM, which has a fixed rate for the first ten years and resets every year after that, Hernandez had taken out a 7/1 loan."

I guess it's good if the rates go down, bad if they go up. When I got mine I didn't want to mess with the uncertainty of what was going to happen to the rate.

We got a fixed rate on our first house and owned it about 18 months. We got a variable on the second that we owned for 10 and rates actually went down. Our current loan is a variable and is in around 2.5% but will jump soon. There is a limit on how much it can jump per year. It will probably suck the next year or two but we certainly saved a lot of money the last 20 years or so going with variable rate loans.
 
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Managing broker licensed. Know the differencevbetween a buyers broker and a sellers broker. Dont do dual agency. Hire an attorney. Get an inspector not suggested by the realtor. Think about getting a survey. Understand potential costs if you buy a house on a well and septic. Check out zoning. Dont buy in a flood plain. Understand risks of variable rates. Understand how propert taxes work. Understand your credit score. Beware of exclusive buyer broker agreements. Get a house with a newer roof unless you can doi it youself. Read up on signs of moldvand water damage. Dont be giddy naive. Your agent is not your buddy.

Buy a house below what your realtor says you can afford.

My #1 rule was don’t buy a house in a place that can flood.
My house it at ~120 ASL, hill I’m on peaks at about 160’. The nearby lakes are about 55’.
 
If rates drop he can always refinance. I would say don’t be house poor. When I started out 20 years ago our mortgage payment was around the max for lending limits/percentages, and it was very stressful. Now it is a very small percentage of what I take home. We could have moved to a much nicer and bigger place, but there is a lot of mental peace in the current situation, which allows for aggressive saving while still traveling and buying toys.
Of course, but it doesn’t make sense to do for at least 18 months from what I understand speaking with my realtor friends. OP doesn’t sound like he wants to buy, rather being forced to consider it as he has to move. And to those saying it may only drop a point, well depending on the price of the house, that could be a significant amount. I’m just saying, if he’s not ready to buy, I personally would wait🤷‍♂️
 
I appreciate everyone's input more than you know. I've looked at atleast 20 houses in 8 different cities. I weighed my options renting at a raised rate, moving and renting again and then buying w high interest rates. I found buying made the most sense. Feel like I got a place that would otherwise be much higher if rates were lower. Monthly payment is less than my new apt rent would be. If I can refinance in a year or two, and make some upgrades, I think I could do pretty well in a few years if I wanna make another change. Also I have no idea what I'm doing and I'm terrified but I'm super excited I'm doing this completely by myself. Only took 40 years but I'm finally becoming an adult!
 
I guess it can be, or not be. We have dumped a ton of money into our current house to make it how we want it. Probably twice as much money as the house originally cost. We will not recoup it but went into it thinking of it as entertainment dollars. With that being said, the value went up a lot, and once we are done paying we only have insurance and property taxes to be paid, in theory until we die, at which point there would be a pile of money when it is sold. The alternative of renting has its pros, but you are on the rent hamster wheel for the rest of your life with rents only ever going up, for most people.

Just how many hammocks did you buy?
 
I appreciate everyone's input more than you know. I've looked at atleast 20 houses in 8 different cities. I weighed my options renting at a raised rate, moving and renting again and then buying w high interest rates. I found buying made the most sense. Feel like I got a place that would otherwise be much higher if rates were lower. Monthly payment is less than my new apt rent would be. If I can refinance in a year or two, and make some upgrades, I think I could do pretty well in a few years if I wanna make another change. Also I have no idea what I'm doing and I'm terrified but I'm super excited I'm doing this completely by myself. Only took 40 years but I'm finally becoming an adult!

I won’t say congrats into the process is done and you get the keys. There can be many hurdles.

But buy some Milwaukee tools and prepare to YouTube random ass homeowner shit
 
I appreciate everyone's input more than you know. I've looked at atleast 20 houses in 8 different cities. I weighed my options renting at a raised rate, moving and renting again and then buying w high interest rates. I found buying made the most sense. Feel like I got a place that would otherwise be much higher if rates were lower. Monthly payment is less than my new apt rent would be. If I can refinance in a year or two, and make some upgrades, I think I could do pretty well in a few years if I wanna make another change. Also I have no idea what I'm doing and I'm terrified but I'm super excited I'm doing this completely by myself. Only took 40 years but I'm finally becoming an adult!
Home ownership is not ubiquitous with adulthood, but I’m happy you found your home that you’re excited about. My first home I felt the same way. Put a ton of work into it, and when I sold it I was +$40k.
 
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Our realtor was almost more harm than good, she said she didnt think the layout of the house would work for us before we even stepped foot inside. We have been here 12 years and love our house. She told us what she was sure what the sellers lowest number is and I offered less and he took it. I basically needed her to open the door for us and get out of the way.
With zillow and your comments, this is a big reason why I don't understand the value of a realtor. We did FSBO on our first home 5 years ago, i managed all of the conversations, and we received 4 offers and one 10% above asking within 24 hours.

It was a strong market back then and our house was in the price for entry level buyers, but back to my point on zillow everyone now has access to almost all of the data they need to make an informed decision.

My house is 3.5x the value of my first home, and I still don't think I will use a realtor if we ever sell.
 
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I could see why someone would want to do it by themselves but I went in with absolutely zero knowledge. Was lucky enough to have a buddy who knows it all. Having that trust honestly made all this shit easy as hell once i found a place that checked boxes. What I paid him to do all the work was well worth it. When I do it again, maybe I'll do it differently. Have definitely learned a lot in a short amount of time though, that is for sure!
 
We used a realtor to sell our house and we got significantly more than I would have guessed we could get out of it. Our good friends sold their house last fall which was in our neighborhood and the same floor plan. Except theirs had an additional bedroom upstairs. We both put in new kitchens at the same time. They had a walkout basement, ours was a daylight basement. We had a corner lot that was larger than theirs. Ours sold for $25k more than theirs.
 
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We used a realtor to sell our house and we got significantly more than I would have guessed we could get out of it. Our good friends sold their house last fall which was in our neighborhood and the same floor plan. Except theirs had an additional bedroom upstairs. We both put in new kitchens at the same time. They had a walkout basement, ours was a daylight basement. We had a corner lot that was larger than theirs. Ours sold for $25k more than theirs.
Not saying you are wrong, but sometimes it just takes the right buyer and seller, and the right timing. Also maybe your friends rolled on some concessions or had to deal with some disclosed issues...
 
80%? I’d vote for Biden
I've lived downtown DPort for 9 years, 6 years at same apt and lease just ran out... and they decided to raise it 80%. So I'm lookin at houses. 7 percent interest rates.. appreciate any advice
Yes. There are ways to keep your closing cost down. DO NOT let the Lender or RE Agent determine who YOU are going to use for your Title Work, Closing and Settlement. There is money to be saved there. Now, if THEY want to pay those fees....fine. But, if YOU are paying these and they say you have to use who THEY say...go to a different Lender or RE. They have agreements with someone and are not looking out for your pocketbook. Trust me.
 
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