Author Topic: Personal Preference vs. Resale Value (FTHB)  (Read 3008 times)

davo

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Personal Preference vs. Resale Value (FTHB)
« on: March 29, 2014, 11:03:08 AM »
Hello!

I am buying my first home after renting in Tallahassee for 10 years. I like smaller homes, and location is my first need/desire. My agent is trying to convince me to exclude homes under 1,000 sq ft without 2 bathrooms. She explains that nobody else wants houses like that so in the future I wouldn't be able to sell it. I would like to hear from some MMMers on this topic.

FACTS:
Currently renting 850 sq ft 2/1 apartment for $635 right next to my office
single 28 yr old male & 1 small dog
I like this size of home

My preferences in a house:
1. LOCATION (10 minutes commute or less to work/activities. In other words in-town.)
2. Small yard with fence, for my dog to poop in while I am away
3. future rental income or sale value
4 and beyond. Anything else.

Example of what my REALTOR is showing me: http://www.realtor.com/realestateandhomes-detail/3076-Royal-Palm-W-Tallahassee_Tallahassee_FL_32309_M51009-56163

Example of what I want to look at: http://www.realtor.com/realestateandhomes-detail/1118-Marys-Dr_Tallahassee_FL_32308_M60561-42344?row=1
AND http://www.realtor.com/realestateandhomes-detail/3041-Rain-Vly_Tallahassee_FL_32308_M59225-06427?row=1

Other facts I would prefer not to be face-punched on: (but will still put out here)
Max I am willing to spend is $125k, would prefer to be lower
Excellent credit, pre-qualified at 4.3%
5% down, (have $15k in cash, I want to keep $5k after close for emergencies) [bracing my face]
I don't plan to wait to have 20% because I plan to live here for a while, and rates are very low now.


Thank you,
David

mspcoup1

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #1 on: March 29, 2014, 12:11:47 PM »
I bought a 2 bedroom 1 bath short sale in Minnesota two years ago.  My opinion is that there is always a market for "starter homes" read: the most affordable single family homes available.  Even if a family doesn't want to live in a 2 bedroom 1 bath, a single person surely would.   I am also able to pay down more extra principal as I am able earlier in the mortgage, which in the event I want to sell and upgrade, I have more flexibility than the person moving up from a $200,000 house to a $300,000.  In fact, after two years of owning my house, I have enough equity to put 20% down on a $300,000 home (the short sale situation was a big factor in this).  Another consideration is that if you are planning on "moving up" in the future, your realtor fees will be way less than said person with a $200,000 house.  Win win!

Another Reader

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #2 on: March 29, 2014, 12:20:16 PM »
I don't know anything about the area, but if your agent is not showing you the homes you like, you need a new agent.  Tell the agent your requirements and the price you are really willing to pay (not "up to $125k," or you will be looking at $130k homes and the agent will tell you to make an offer).

I would be concerned about only having $15k in savings after 10 years.  Have you been working the entire time?  You could be pressured if you have a problem with the house or your car needs to be replaced.  In your shoes, I would focus on building some cash reserves.

davo

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #3 on: March 29, 2014, 12:34:12 PM »
We've only been looking for a week now. She has been very good and no pressure to make offers on what we've seen. I am interested in the $118k house below, but not enough to buy it. I would like to look at cheaper houses as well, because small size does not bother me. Mainly I was put off by the blanket statement about smaller homes. Yesterday I told my realtor I would specifically like to look at some homes under $85k. This is what prompted our discussion. So I sent her two listings to look at.

I was in college for 4 years. I have been working since then for 6 years. In a very short summary, I was a crazy overspending, indebted fool during and briefly after college. I have changed that completely over the past 5 years. I have been digging out for most of that time. I save about $800-$1000 each month now. The only debt I have is federal student loans (4.25%), since I am in public service these will be forgiven (tax-free) in 8 years.

« Last Edit: March 29, 2014, 12:36:24 PM by davo »

Daleth

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #4 on: March 29, 2014, 12:48:17 PM »
I don't know anything about the area, but if your agent is not showing you the homes you like, you need a new agent.  Tell the agent your requirements and the price you are really willing to pay (not "up to $125k," or you will be looking at $130k homes and the agent will tell you to make an offer)

I agree. Not necessarily that you need a new agent, but that you need to be clear with this agent and she needs to show you what you want. If her enthusiasm/availability wanes after you make it clear to her that you would ideally want a smaller home under $90k, then you may indeed need a new agent because that would mean she's trying to push for something that will bring her a higher commission.

Cassie

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #5 on: March 29, 2014, 01:52:38 PM »
There is always a market for starter homes and in fact these usually sell much quicker because more people can afford them. Stick to your guns about what you want.

davo

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #6 on: March 31, 2014, 09:05:46 PM »
There is always a market for starter homes and in fact these usually sell much quicker because more people can afford them. Stick to your guns about what you want.

I have come to this conclusion this weekend.

I am happy to report my realtor sent a new list of homes under $100k that meet my criteria, and 2 of them I am really excited to see this week!


davo

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #7 on: April 08, 2014, 02:53:03 PM »
I'm happy to report I will be closing on a 2/1.5 townhome under $80,000, in 30 days! The realtor immediately adjusted what she showed me after our conversation. This place is just the size, location, layout, and price I had in mind.


arebelspy

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #8 on: April 08, 2014, 04:27:27 PM »
Awesome.  Congrats!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

meadow lark

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Re: Personal Preference vs. Resale Value (FTHB)
« Reply #9 on: April 08, 2014, 08:04:39 PM »
Yay!