Hey, it's never too late for more information. She has owned the house for a little over a year. I didn't think that would matter much because I have always been told that over the first several years, you're basically paying the interest anyway. Still haven't heard back from my agent but we'll see what happens. Thanks again.
Exactly, thats why I don't believe you would walk away from a steal of a deal. That of course doesn't mean its not right for you. A decent new house around here starts at least 200k, so I would love to buy at 125k.
BTW, if she does purchase a house, can she file for the $8k tax credit this year via amendment or does she have to wait until 2010?
Well, we have decided to move on as if she will not sell. We have found another house that was originally listed for $129,900 but is now listed as $126,900. The thing is, it has been on the market for nearly 250 days. It is a new construction but it looks very nice. Is it possible we have a better shot at negotiating something here?
She can file the amended return and get the credit this year (assuming this is her first house). Keep in mind that if she doesn't live in the house for at least 3 years, she will have to return the entire $8,000.
If you are really moving on and realllllly want this other house. It wouldn't hurt to make an offer. The worst they can say is no or come back at you with another number. With my dealings, I had better luck negotiating with builders. You can get a good price, if it's been on the market for 250 days. They might really want it gone. It's just decreasing in value as it is sitting there anyways.
Also, sorry for double posting. Since it's a newer, read up and study up on the builder. There's a lot of horror stories out there with incompetent builders.
How exactly do you file an amended return? We're closing next week and we filed our taxes and received our return for this year already.
Decent houses in my area start around the $115,000-$120,000 range. We're going to view some more houses at the beginning of next week. What is a good number of days of being on the market to ask for a decrease in price? The reason I ask is one of the houses we are looking at is $126,900 but originally was $129,900 but has been on the market for nearly 200 days. It is a new construction so I assume it is owned by developers. The other is listed at $119,900 and has been on the market about 50 days and is about 4 years old.
OK, we found a home that is only 4 years old and was foreclosed on last year. It is about 2200 sq. feet and needs a little work such as buffing the hardwood floors, scrubbing the bathrooms, and different paint colors. There is a little spot in the ceiling that looks like there might have been a leak but we're getting it inspected too so if that or anything else comes back bad then no deal. The house was foreclosed on early last year and has been on the market for nearly 9 months. The house listed at $170,000 but we made an offer of $115,000 and got it accepted. I was talking to a home inspector that was recommended by a family member and he said I should find out who or what company actually built the house. How do we do that? A question I forgot to ask the inspector was that since the home was foreclosed, there are no utilities on in the house. How will he check things like the AC/heating units, power outlets, etc.?
Sorry, missed this. If its new construction that has been sitting in inventory for a long time (200 days), its going to be hard to talk them down to anything reasonable. New construction prices are much like the automobile market right now ... prices are already slashed down to nearly nothing. This is the kind of deal you are looking for. Goto the county court house, bring a few bucks, and ask/tell them you want a copy of the deed of this house and any other records(If they don't have it, they will tell you where to go). Usually they point you to the room where all the records are stored and expect you to find them. Don't be afraid to ask for help. Bring pen and paper just in case you can't make copies. You will be able to find all kinds of information on the deed, including previous owners and the amount they paid.
Since it's a foreclosure, you'll have to talk to the lender that owns the property to have utilities turned on. It's a 70/30 chance they won't do it, but it's worth a shot. Foreclosures are an "as is" property, so basically you'll be doing some praying. To check the builder, go to the houses next door and get information on the house. Get some dirt on the neighborhood and see if you like your neighbors. If they aren't Rockets fan, don't buy the house!
On a house I nearly bought the electricity was out. I just called up the power company and told them exactly the situation... that I was about to buy a house and needed to temporarily get the power on. They did it for me. I didn't need to do water since it was well water.
I have some other questions about homes and I am hoping you guys keep coming through for me. I'm asking in case we actually get the house about some things that are not needed but we want to do eventually, maybe even with the $8000 tax credit. 1. We're going to purchase all the major kitchen appliances except the dishwasher. I've noticed while looking for stoves there are some that are freestanding and some that are sliding. What is the difference? Are they interchangeable? Looks like sliding is going to cost a bit extra if I must purchase one of those. 2. We eventually want to install a jet tub in one of the upstairs bathroom because it helps in the resale of the home. We have found good jet tubs for $1200-$1500 but how much would it cost to actually have somebody to the installation? Not really looking for exact figures, just a guesstimate. 3. The cabinets and countertops in the kitchen are not really to our liking. I know a lot might depend on material you choose but how much do those cost to get redone as well?
When pricing out your offer, you have to consider if it's a new construction. The highest foreclosures are among new construction homes. When a new house is bought, the taxes is based on raw land. After the first year, there will be an escrow shortage, when the improvements are included in the tax assessment. Many homeowners end up paying double taxes the 2nd year to make up for the shortage. By the 3rd year, many homes are in foreclosure. They are unable to sell, due to newer houses being built and special financing by the builder. To avoid this problem, estimate what your taxes will be using your purchase price instead of the raw land assessed value. After buying the house, go to the county tax assessor and have the property reassessed for the improvements and apply for the homestead exemption. Once the new statement arrives, call the mortgage servicer to raise the escrow requirements to the appropiate levels.
