Author Topic: Potential First Home - Pros vs. Cons  (Read 3298 times)

nirvines88

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Potential First Home - Pros vs. Cons
« on: July 06, 2014, 06:37:00 PM »
So I've looked at about 20 single family homes in the last few months.  I've found a few that I like OK, but recently found one that I really like.  However, it has some potential pitfalls, and I'd love to hear the opinions of those on this forum about whether it sounds like a good or bad idea to buy this home.  FWIW, the home has been on the market for about 10 days.  I live in a city that has a relatively warm to hot real estate market. 

PROS
-Slightly less than $100 per sq. ft. (Most relatively nice homes in my area are $110-130/sq. ft.  Homes below $100/sq. ft. in my area are usually townhomes, in sketchy areas, or need work.)
-Curb appeal (Great looking yard, pretty trees, attractive from the outside.)
-Amazing interior (Has an open floor plan (something I desperately want but I've struggled to find), hardwoods, great kitchen, 1st floor master BR, and double garage - hello ping pong table!)
-Approx. 4-5 mi from where I work (10 min car commute or 35 minute run!)
-In a safe and well maintained neighborhood
-Built in 1995, so not too old

CONS
-Masonite siding (It's a '95 house so it should be good for a while, but I'd probably replace it with Hardie Plank in the next 5-10 years for ~$10k.)
-100 yards from a fire station (I don't think this would bother me THAT much, but ask my opinion again if a fire truck wakes me up at 3 a.m.!)
-300 yards from a railroad track (I've lived within 30 yards of a railroad track before so I'm not worried about this one at all, but it's still a negative for resale.)
-Across the street from condos (This isn't a con at the moment as most are owner occupied and there are no beaters outside - but could change in future.)
-One side of the house borders a 4 lane road with moderate traffic; however, there is a sidewalk, fence, trees, and perhaps 20 yards between the house and road  (This is the con I'm worried about the most.)

As you can see, most of the cons are of the unchangeable variety.  How would these cons detract from my living?  Would these cons be a dealbreaker for resale?  Any opinions or personal experiences would be much appreciated.

Another Reader

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Re: Potential First Home - Pros vs. Cons
« Reply #1 on: July 06, 2014, 06:49:26 PM »
Lots of incurable functional and external obsolescence.  What makes it cheap today will make it cheap and difficult to sell tomorrow.  In your shoes, I would keep looking.

Thegoblinchief

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Re: Potential First Home - Pros vs. Cons
« Reply #2 on: July 06, 2014, 07:46:11 PM »
I wouldn't mind any one aspect of the location too much, but all of them together might be a bit much, especially if you like to leave windows open as much of the year as you can.

AR makes a good point about a tough resale, even if you decide you can put up with it.

Annf

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Re: Potential First Home - Pros vs. Cons
« Reply #3 on: July 06, 2014, 08:43:03 PM »
I'd keep looking. This house would be hard to sell if you got in a bind and needed to move quick. That is way to many things to cause buyer objections.

nirvines88

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Re: Potential First Home - Pros vs. Cons
« Reply #4 on: July 07, 2014, 11:36:35 AM »
Y'all are confirming what I figured to be true but was hesitant to fully acknowledge because it's such a nice house!

Let's say this house's listing price was cut a substantial amount (say, I don't know, 10-15% or so).  If it was acquired at the right price, would that change things?

 

Another Reader

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Re: Potential First Home - Pros vs. Cons
« Reply #5 on: July 07, 2014, 11:55:02 AM »
When you move into a buyer's market (it's a seller's market in most areas today), the price of this house will drop more than better located houses.  You would have a tough time selling it and buying up or buying in another location.  All buyers are eventually sellers, and it pays to look at the property as a seller.

SDREMNGR

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Re: Potential First Home - Pros vs. Cons
« Reply #6 on: July 12, 2014, 11:08:02 AM »
There's no such thing as a bad house or good house, just a price that is too high or a good deal.  Whatever circumstances and issues are with the house, there is a price that would make it a good deal.  Never forget that.  Same with stocks.   Valuation skills make all the difference.  So yes, at a certain price or below,  that house would be a good deal despite those issues.  What that price is and whether you can get it would be up to you.  Also market dynamics dictate your chances of getting such a bekow market price.  But believe me, there are many many deals made out there.  You just have to keep looking and then jump on it when you find it.  Deals go fast.

escolegrove

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Re: Potential First Home - Pros vs. Cons
« Reply #7 on: July 13, 2014, 08:25:01 PM »
I personally would not buy that house (I own 5). Location, Location, Location is VERY important for resale and rentals (if you decide to go that way). We try to buy the most cosmetic disasters in the best neighborhoods as possible. As I am sure you know since you are a member of this site commuting costs money. So we also pay more to live in the best neighborhoods near work. We buy in great schools because that also drive the community (even though we are currently childless).

nirvines88

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Re: Potential First Home - Pros vs. Cons
« Reply #8 on: July 16, 2014, 02:03:28 PM »
I just found a house in a different (and nicer) part of the neighborhood.  It's located in a cul de sac tucked deep inside the neighborhood away from any railroads, fire truck stations, condos, and major roads.  However, it's about 400 sq ft. smaller, has slightly less curb appeal, has a less well designed upstairs,  and it is 10k more expensive than the other house in the lousier location.   Despite this, it has more than enough room for me, has a great open floor plan downstairs, and looks appealing. 

Thinking about going for it!  Thanks for the advice.