Our First House

[SezzySue]

Ok, so dh and I are looking at buying a house here in Las Vegas. The market is down and there are TONS of houses. Many did ARM interest rates a few years back and now no one can afford their homes.

We found one that is 2 story, all appliances included, nice neighborhood, 1541 sq feet, 3 bd, 2 1/2 bath, 2 car garage, decent lot for $175,000. Its torn to peices and been on the market since June or so. We have a good shot if they will take a little under the asking price but we want to hurry since we can't afford the asking price.

We were thinking of offering $165,000 and pay closing costs. That will leave us with about $5000 cash to do any fixes we need in the house. we taslked about completely hard wood floring the first level (laundry room, kitches, living, dining, bathroom) and having carpet installed upstairs (all three bedrooms). We would do the wood floors ourselves along with painting, replacing doors, moldings, and fixing up the lawn which is no big deal.

With us financing $168,000 or so we are looking at payments being about $1275 including taxes and interest rates. We need to verify the HOA fees and what the insurance on it would be, but I think this is affordable to us.

Then we are going to put up a partition in the garage to convert it into a partial studio/ workshop. I woul get my business liscenes and work out of the home. I am SO excited about that part of things. I would be able to advertise.

If we do decide to do this then dh and I will be staying in Vegas at least another 5 years or so and he will take up a job with the contractors here and I will be able to finish going to school.

So I wanted to share and see what ya'll thought.

[mitziebella]

Sounds like you have it all worked out....i can't wait for the day we're ready to settle down and buy our first home...

[Teresa]

Honestly, I don't know if it would be the best idea to buy there. The market is so unstable right now! I only say this because I have no less than 5 good friends that are stuck with their homes right now and losing a lot of money because of it. If the house is really "torn to pieces" $5000 may not cover everything that you are going to need to do to fix up the house. If you don't mind me asking, what neighborhood is it in? I would hate for you to spend money on a house if you are going to lose it all in fixing it up.

[MontanaSweetie]

Originally Posted by Teresa Honestly, I don't know if it would be the best idea to buy there. The market is so unstable right now! I only say this because I have no less than 5 good friends that are stuck with their homes right now and losing a lot of money because of it. If the house is really "torn to pieces" $5000 may not cover everything that you are going to need to do to fix up the house. If you don't mind me asking, what neighborhood is it in? I would hate for you to spend money on a house if you are going to lose it all in fixing it up.

I agree to a point. $5,000 is not going to fix everything, trust me! I don't know what the market is like in Vegas, so its hard for me to say if the price you are getting the house for is fair or not.

[missjenn00]

sounds like a good plan but dont go in to quickly..we just bought our first home which is nice but needs some work..

[Bex]

also take into consideration if you're impounding how much homeowners ins and taxes will be; you don't want to be screwed later. good luck!!

[SezzySue]

well our calculated payment includes the taxes which I think are $1400 a year.

It is in North LV just kiddy corner to the neighborhood where we currently live.

We are going back into the home this week to write down everything we plan to fix and we are checking materials so we know what it truely will cost to fix all that we want.

What we do know are the floors on the first level, all dooors upstairs (4), closet doors, moldings, carpet upstairs (that will be after we move in though), and a little landscaping outside. Then the basics like paint of course.

[CoffeeGirl]

Best of luck

[familyof4]

Like everyone said the market in Nevada is the number one for foreclosures... I live here too (Reno).
But we did just buy a house too and we are happy we did. We know that we got it for an awsome deal and couldnt be happier. We are planning on living here for about 10 years and then depending on the market then either selling or just keeping it and rent it out.
It sounds like you have a good plan but 5,000 sounds like alot but it's not when it comes to redoing everything.
I wish you the best of luck.

[Dragonfly76]

Originally Posted by SezzySue We were thinking of offering $165,000 and pay closing costs. That will leave us with about $5000 cash to do any fixes we need in the house. we taslked about completely hard wood floring the first level (laundry room, kitches, living, dining, bathroom) and having carpet installed upstairs (all three bedrooms). We would do the wood floors ourselves along with painting, replacing doors, moldings, and fixing up the lawn which is no big deal.

I'd be very careful buying a house right now because the market is so unstable but if you find the one you want and can get a fixed mortgage you're happy with then go for it.

I'd start off at a lower offering price. They might be desperate (since being on the market for 6+ months) to get out of the house and will take a lower price. I'd say start off at $155,000 (no cosmetic repairs) with them paying the closing costs. They can counter, then the negotiations begin. Or you can offer the $165,000 (with closing costs) but tell them you want the house cleaned and brand new carpet (of your choosing) installed upstairs and whatever else you think needs to be done.

$5000 is low. When we bought our house, it was already upgraded (nice tile floors, good carpet, great lawn) but we wanted to paint and do other things. $5000 was quickly gone within a month. With the repairs you already listed, it sounds like more than $5000.

Good Luck with everything!