[drewprops]

Where were these people (home buyers) 4 years ago?


...

[Ryan]

About to make my first-ever offer on a house!

[Yontsey]

Good luck!!!

[Ryan]

Ugh.

Seller demanding hard earnest money on a property built in 1889. Other bidders supposedly waiving inspection.

Nope.

[drewprops]

Damn. Glad you are keeping your wits about you, I know it's frustrating.

...

[Ryan]

Originally Posted by drewprops Damn. Glad you are keeping your wits about you, I know it's frustrating. ...

I've set my ground rules:

• Not waiving any structural/health/safety inspection items
• Willing to waive minor repairs up to $10k (eg this place had a leak in the sprinkler, I'd waive that)
• I have a budget and won't go above it
• No fancy financing. 30 year fixed, 20%, period.

[kieran]

I'm baffled when people waive inspections. It just makes no sense to me.

We bought our property in August and were surprisingly not out bid or entered into a bidding war. The sellers wanted a price, we offered that price on the first day, and that was it. It was nice not to have to jump through hoops or compete with 37 other people.

Good luck Ryan on getting something that works for you.

[PB PM]

Originally Posted by kieran I'm baffled when people waive inspections. It just makes no sense to me.

It's not a smart move if you are on a tight budget and cannot afford to fix things right away, that's for sure. In some areas people are just taking whatever they can get, all depends on supply vs demand, and how much people have budgeted for repairs if need be. Also, many people are buying older homes and gutting them anyway, so I'm getting the feeling that they just don't care if there are issues.

[Ryan]

Honestly this place had everything. The offer deadline is noon tomorrow.

I may offer $110k (!) over asking but stand firm on the waiver and see what happens. I have rock-solid financing from the most respected lender in the state and maybe that'll put me over the top.

Plus, we're just going off what the listing agent said about the other offers. He may be bluffing. My agent did say he thought the seller disclosure form was pretty thin for a house built 133 years ago and that it's been on the market for over a week. 80% of listings in Denver are gone within the week so why no bites on this one yet?

[drewprops]

Haunted.


...

[Matsu]

Everyone is doing the same calculus. The wealthiest people do their own version of “drive till you qualify” - they can afford to live closer, but they might want a little more elbow room, so they move out a bit and buy 4500 sq-ft new build suburban McMansions or find a small home on a big lot and knock it down to custom build.

I can’t figure out the suburban condo market. I get paying for a box in the sky when it’s connected to a downtown core, waterfront, business/cultural/commercial district. It doesn’t have to be huge centre either, even being in the centre of a smaller city/town can have its charms, but if you see what people are paying for space in 30 storey towers beside strip plazas and highways, I don’t get that at all, not why the planning regime allows such disconnected development either.

On the topic of inspections, we used one when we bought our place, and it pointed to a lot of problems, some obvious. I think it was a useful tool in negotiating our conditional offer down after making an offer closer to the original ask, but the property had also been on the market for 5 months with no takers. It was priced too high in a hot market and 5 months earlier the agent wouldn’t even take lower offers to the client.

Personally, I think he was incompetent. The house was priced just over entry for the neighbourhood, but had issues. Still, based on two previous near misses, he might have got his original ask 5 months earlier just by low balling the listing and letting the DIY Renovators bid it up. I was pretty certain going in that the only things we could afford would require some significant refinishing, so if it meant doing a little more involved renovation/repair, I was OK with that.

It sat for so long, that the comparables were creeping up by the time we pulled the trigger. I still think I paid about 50k too much, but I paid about 110k less than asking and there was literally nothing else we were willing to afford in the neighbourhood at the time, unless it was either on a major road or backing onto one. To think that 4.5 years later this place is nearly double? Ummm. It’s bound to come down a bit, but it’s still going to trend higher because there isn’t enough ground level supply…

[psmith2.0]

Originally Posted by drewprops Haunted. ...

That's my go-to response on every weird housing situation..."the joint is obviously haunted; proceed with caution."

And don't call me at 3am when demon children are dancing on your chest as you sleep...I don't wanna hear it. There's a reason the place is selling for $250K less than it should, and it ain't go nothing to do with electrical, plumbing or the roof. I've seen all the movies...

[Ryan]

I told my agent that I'm willing to go 75k over asking but not 110k, and I won't waive any structural/health/safety inspection items.

If he thinks I could be in the running with that, let's make the offer. If that's gonna be a nonstarter with the seller, walk away.

[turtle]

I'm so glad I bought my current home at the start of the pandemic. It really helped us cement the price and keep the bidding war from happening. The owners were still living in it at the time and most weren't willing to chance the exposure at that stage when we jumped. I really think it helped us get this house for the price we did.

Now, I would hate to be looking at a new home. Everything that is being talked about up thread is why. I don't want to fight with overprice bidding and such. I did that once in Va Beach and offered $10k over listing on a townhouse. So glad that deal didn't happen!

Ryan, stick to your guns and know what you want and are willing to do. You have a place now so you aren't "forced" to find a new place. Houses will be available again when the time is right if this doesn't workout for you.

[Ryan]

I do have a place, but my lease is up at the end of June and the landlord is demanding a 12% rent hike. So I have time but there is a clock on this.

[turtle]

While the increase would suck, it would be better than being stuck in a house that is harder to get out of than a lease.

I get the feeling of pressure, but be sure any move you make is one you REALLY want to make.

[Ryan]

Originally Posted by turtle While the increase would suck, it would be better than being stuck in a house that is harder to get out of than a lease. I get the feeling of pressure, but be sure any move you make is one you REALLY want to make.

I also want to move from Boulder down to Denver, so even if I don't end up buying something I'll rent in Denver.

[Ryan]

Originally Posted by psmith2.0 That's my go-to response on every weird housing situation..."the joint is obviously haunted; proceed with caution." And don't call me at 3am when demon children are dancing on your chest as you sleep...I don't wanna hear it. There's a reason the place is selling for $250K less than it should, and it ain't go nothing to do with electrical, plumbing or the roof. I've seen all the movies...

I'm not one for the paranormal but I just toured an 1890 Victorian and I swear there was a presence. Doors kept closing on their own and at one point I could've sworn something moved behind me.

Absolutely stunning house, haunted for sure.

I mean look at this thing.

[PB PM]

Self closing doors? Sweet.

[psmith2.0]

Man, they’re going all out with the trim work. Scallops, the colors, etc. I’d never live in one - just not really my look/style - but I love looking at Victorian houses and all the elaborate trim work.

[psmith2.0]

Man, they’re going all out with the trim work. Scallops, diamonds, corbels, medallions, insets, the little turnings, the colors, etc. I’d never live in one - just not really my look/style - but I love looking at Victorian houses and all the elaborate trim work.

[Ryan]

There are two houses I'm looking at and will likely make an offer on one of them tomorrow.

First is a 1950's ranch/bungalow. Just flipped in the last few months. Big yard, move-in ready. Very walkable neighborhood though lousy transit access (20 min walk to light rail, and only one line). It's small but functional (1k sqft, 3 beds, 2 full baths).

The other is an 1885 (!) house just outside downtown. Small but functional lot. Has had upgrades—kitchen is recent, as are the windows and floors. It's also $265k more than the other. The neighborhood is highly walkable and it's a 5 minute walk to the light rail, plus it's on every line in the Denver system. Much larger at 2400 sqft but with lots of smaller rooms. Also had a water leak in the past though the seller claims it's been remediated.

The part of me that fears things going sideways is leaning towards the small ranch house. It's the quintessential starter home, my monthly payment would only be a smidge higher than my current rent and it's a safer/quieter neighborhood. Brand-new appliances, water heater and roof. No air conditioning but it's already got forced air and all the duct work so easy to add.

Or maybe I skip both and wait for something better to come along.

[psmith2.0]

If it’s only down to those two, I think I’d go with the ranch.

Just seems that unless you’re super handy, have lots of free time and/or genuinely enjoy blowing every weekend (and day off) on Home Depot/DIY/renovation-and-repair fuckery, buying something from the 1800’s is the quickest, sure-fire way to test those limits.

My dad and stepmom lived in a 1922 house in north Chattanooga, just across the river from downtown (and all that goes with it) for many years. I honestly don’t recall a period where there wasn’t something going on or needed addressing…yard slope, basement bricks, foundation, drainage, retaining wall, front porch, floor joists, plumbing, plaster, electrical, kitchen, tile, bathroom weirdness, deck/patio and on and on. Just constant upkeep, projects, repairs, upgrading. On top of that, they were surrounded by either a) finger-wagging, meddlesome yuppie shitheads with dogs who never stopped barking (ever) or b) bohemian hippie twats who seemed to believe lawnmowers and a gallon of exterior paint were “like, all oppressive, mannn…we just wanna live free and natural, mannn…”.

I don’t even want to think of how many thousands they spent over the years, and how much labor (a good bit of it involving me), endless trips to Lowe’s and Ace Hardware, dealing with several contractor/trades where a couple turned out to be more trouble than they were worth, etc.

They now live down in the country in Georgia, 14 miles from me. Huge yard that he loves to mow, a four-year-old nice, open-floor plan house, closest neighbors a good 150-200 feet away, quiet neighborhood of 40+ (age) couples who take care of their yards/property, no sirens at all hours, etc.

If it’s between an “older fixer-upper with character” (code for “this is all you’ll ever be messing with” ) or a newer (or recently renovated/upgraded) place, I’m going with the latter. Every time. There’s more to life than roaming the aisles of Home Depot every single weekend.

[PB PM]

Honestly, they are both older homes and are going to need work away. At least get one that has been worked on more. Why pay an extra 265k for possibly more headaches?

Another question is, larger yard, do you have the time or even want to maintain that?

[Ryan]

I'm inclined to agree on the very old house. I did some googling on that topic last night and everyone who's ever owned one agrees they're a ton of work.

I'm ready to rule out anything built before 1950. While I'd love something recent (post-1990) that's just not realistic in Denver unless I want to live out in the 'burbs, or buy a condo.

The larger yard is mostly dirt right now with some mulch border areas. If I buy it I'll xeriscape the yard so it's low maintenance and doesn't require a sprinkler system. I'm getting a dog later this year so I'll put in at least a small area of a new grass hybrid that's become popular in Colorado called "Dog Tuff". Only has to be watered a couple times a year, resistant to dog urine and doesn't even require mowing.

I pulled the permit history on the ranch house and got some information from the sellers. New roof in 2017, foundation repairs last year, garage and driveway have new concrete, appliances/water heater all brand-new, flooring is laminate wood (and also new). New fence and new windows and window frames.

[psmith2.0]

The ranch sounds like all the big things have been recently addressed/taken care of. I’m not sure I’d pay $200K more for what my be an ongoing time/money drain, being so old.

They’re both “old”, but I can’t imagine the ranch being a huge hassle, or dealing with all the big-ticket renovations/repairs, after all the things you listed above…a five-year-old roof, new concrete, new appliances, flooring and windows. Any idea on the electrical and plumbing?

But I can only say what I would do (I hate constantly fiddling with stuff…household, tech, repairs, troubleshooting, neverending projects, making/cleaning up the messes often involved, etc.) so I may be wired completely different on all that than many here.

I hate giving up my entire weekends to “fixing shit”. I’m not a YouTuber, so it isn’t like I’d be filming that sort of stuff and making any money off it. Zero incentive. I don’t mind a few weekends a year, sure; I enjoy a good elective, cosmetic project in the spring and fall. But just constant “what is it NOW?!” major stuff would drive me around the bend! 🤪

[PB PM]

The ranch is sounding like the better choice of the two, given what’s been done. Not an easy choice, homes aren’t like a computer or car you can trade in a year if you don’t like it. That said, it can have improvements made down the line, and with that recent work it’s likely had at least some parts of it brought up to code, which would make an future renovation work less of a pain.

[Ryan]

Made an offer on the ranch house. Listing agent says three others are in play so we'll see.

[turtle]

I agree with the ranch of the other option. While I like a certain bit of character in a house, I am not a professional handyman nor do I have aspirations to be one.

[BlueRabbit]

I'm assuming that the ranch house is off of the W line? If so, parallel bus service on Colfax is pretty decent by Denver standards.

Having lived in a bunch of older buildings, small and weirdly shaped rooms are something that will get old pretty quickly.