Virgin Buyer

Average Closing Costs on the Rise

2006-08-11T10:22:00.000-04:00

I was reading the news this morning instead of doing my job and stumbled across an article on a local TV station's website about the average cost of closing on a home. The article reads that it now costs over $3000 to close on a house in the United States. The study was based on large city zipcodes and a $200,000 mortgage. It's kind of amazing to me that these crooked mortgage company bastards are so clever that they have come up with 50 different small fees and costs that can amount to an average of $3000 at closing - across the United States. What makes it even more irritating for a first time homebuyer is that I don't know what the hell any of those fees mean so I can't even argue. I am starting to consider being a life time renter. It would be so much easier.

What determines Property Value?

2006-07-31T15:28:00.000-04:00

One of the issues I have with buying a loft downtown is the proximity to some of Detroit urban projects. I was all set to make an offer on a unit so, as most wimps do, I asked my dad to come down to check it. Apparently I gave him poor directions because he ended up making up his own and took a freeway exit behind the development. It turns out that one of the rougher housing projects in the city was about 5 blocks behind were I was thinking about buying. I was curious to see how this would impact property value, because I like to believe the developers have some idea of what they are doing, so I did some research. One of the articles that I found said that many studies have concluded that supportive housing does not impact the value of properties in the area. I am not sure whether that is true or not because I have to believe that who ever wrote that article has never been to the Brewster projects in Detroit or, for that matter, would survive if they did but, none the less, I hope that person is correct because the place I have reserved is not real far down the road. Article Link

Car Insurance in a Big City

2006-07-28T20:08:00.000-04:00

It has just been brought to my attention by my insurance woman that upon moving into the beautiful city of Detroit my car insurance is going to almost double. What a kick in the teeth. The city of Detroit offers these tax abatements that look great on paper but after dealing with all the other bullshit the city has going on like a fee for trash pickup, income tax, and of course the insurance increases brought upon by a new zip code you end up paying out even more. I am so irritated by this whole debacle I am about to say piss on it and live in my f*cking truck. Should I have never left my parents house.

Getting out of a Purchase Agreement

2006-07-25T10:38:00.000-04:00

In an attempt to sleep better at night I was looking for a way to get out of my purchase agreement if I got cold feet around the time of closing. In my research I came across an article on Realty Times that for the most part says I am stuck. As sort of a consolation to your new 1000 square foot ball and chain the article offers ways to deal with buyer's remorse. Some of the more irritating ideas are that once you move in you will like the house. Asinine. Or the old cliche "time heals all wounds". More sound advice. The article is actually rather informative up to the patronizing ending. Now, if you will excuse me I have to go vomit , it seems cold feet is setting in months befor my closing.

Buying a New Construction Home

2006-07-24T10:31:00.000-04:00

I have a tremendous amount of anxiety about buying a loft that is not even built. It would be so much easier if I could see the finished product rather than just a floor plan. I have been scouring the web looking for helpful hints for what to do in this situation and I came across an article that gives some helpful hints if you are looking to buy a new construction home. Unfortunately, I found the article after I signed my purchase agreement but I do have some contingency clauses that would allow me to escape if things look bad.

Purchase Agreement for a Loft

2006-06-30T10:13:00.000-04:00

I sucked it up and signed a Purchase Agreement for a loft in Downtown Detroit. It's amazing how I spent months looking at houses in the suburbs and decided to buy a property that is not even built yet. I made my purchase based on floor plan blue print. I just had a terrible feeling that is all just a ruse and the shell where my loft is to be built is, and shall remain, a shell for years to come. If I do get robbed and this place never is built I think I am going to just squat in the building until they tear it down. Did I just impulse buy a loft?

Investing in Detroit

2006-06-08T11:23:00.000-04:00

I am fairly certain I am going to end up buying a loft in downtown Detroit. I have always wanted to live in a big city and since a real big city would involve a total uprooting of my life I am going to buy in the D. The area I am looking in has all kinds of renovation going on. Nearly every building is undergoing a transformation to become some type of housing and I find that encouraging. The thing that makes me nervous, outside the clown show City Council and the gangsta mayor, is what happens once all these units are filled? Once the developers get their return I am concerned they are out the door. The downtown Detroit area is cool to visit but to sustain a population they will need to open things like grocery stores, dry cleaners, and such. I wonder if these things are in the works. Does anybody have any knowledge about situations like this? I wonder if I am setting myself up for a disaster. Well, I do have on thing going for me. No matter how bad the city gets or how low my property value drops I will not have to EVER cut my grass.

Loft in Detroit and property tax breaks

2006-05-31T11:19:00.000-04:00

I am very close to putting down a deposit on a loft in Detroit. I really dig a development I saw over the weekend. The site is not complete and for that reason I think the price's are still relatively low. I will have to put a deposit down in the next two weeks if I am going to do it. The area is titled as a New Enterprise Zone (NEZ) and therefore the property taxes are next to nothing. For the next twelve years I will be receiving a discount of 95%. Not bad. The one thing that is holding me back a little is the income tax in Detroit. Presently the income tax in Detroit is at 2.55% which blows because you get nothing for it. It's almost like the City Council of Clowns decided to penalize the people who chose to stay in Detroit. Regardless, I think I still might do it.

Decreasing closing costs

2006-05-24T10:20:00.000-04:00

I just read an interesting article about reducing closing costs. The article seemed to be geared more so toward refinancing but also offered some info for new homebuyers. Some of the points worth noting were things like challenge fees that seem extravagant and buddy up with your mortgage person. I can testify to that since I am using a friend to do my mortgage and he called me yesterday with a way to take $1750 off my closing costs. Rock Financial might be a chop shop but if you get a good person helping you they certainly have the capacity to hook you up. Regardless check out the article if you are interested.

Downtown Loft and Hot Sales Associate

2006-05-23T08:37:00.000-04:00

I went downtown yesterday to check out a loft that was advertised as being in my price range. I didn't bother shaving or dressing particularily well since the last person to show me a loft was a dude. When I walked in wearing my flip flops, t-shirt, and jeans I was greeted by a ridiculously hot sales women at the door. Apparently she miss took me for a homeless person or at the very best a college student because she proceeded to ask me three or four questions clearly designed to make me leave. After explaining that I do not live in a garbage can, have a job, am not looking to rent, and am not a college student she agreed to tell me a little about the properties. While going over the some of the aspects of the loft she hit me with a price that definitely superceded my price range. Since I had worked so hard just to get to this point and she was a super hottie I prentended as if I was still interested in the loft. From there she explained the upgrade options in, what as far as I could tell, was foreign language. For 10 minutes she spoke I nodded like an idiot as if any thing she was saying had meaning to me. I fought the urge to ask if I could replace the granite counter tops with plywood to avoid exposing myself as a fraud. She didn't need to know what a schmuck I really am. After she was done babbling about fancy tiles and stupid lighitng, I walked outside and pretended to examine the building from a distance as if I were considering buying the whole thing. Buying a home is hard enough but when you throw beautiful salespeople it makes it even worse. If I didn't have a girlfriend I might have bought one of these lofts on the spot. Bastards.

Guide to Fixing and Flipping Homes

2006-05-21T10:09:00.000-04:00

The Detroit Free Press has a write up on a book that claims to be a guide to flipping houses. The book was written by a couple that have spent their lives remodeling houses and also documented their work in syndicated columns, books, and TV appearances. The book offers a checklist about things to know and do before you sign the deal and also provides timelines for projects of the two month, six month, and one year variety. I find the book interesting because all of the houses I have looked at are in need of some level of repair and since my home repair skills do not extend past vacuuming I think I could use a guide of some sort.

Downtown Detroit Condo

2006-05-15T08:47:00.000-04:00

I think I might go look at a condo or two in Downtown Detroit. I heard a rumor, and it may be just be a rumor, that people buying new residences in Detroit are getting out of paying the city tax for a few years. That is my major hold up about the city. When I lived at my parents it use to piss me off no end that the city was taking money out of my check each week and didn't do anything with the money. No snow removal, no nice park, no safety......NOT A DAMN THING. But if I can live in Detroit and not pay for the lack of resources it wouldn't be as bad. I wouldn't want to stay in the suburbs and spoil myself.

Foreclosed Homes

2006-05-12T11:51:00.000-04:00

I went and looked at a foreclosed home yesterday. What a disaster! I am pretty sure that the people forgot some animal in the house because it smelled like piss and I think there was urine on the basement floor. The kitchen had some disguting and eery substance smeared on the cupboards and the pool was like a swamp. I am fairly certain I will not be buying that cesspool.

50 Year Mortgage

2006-05-10T11:42:00.000-04:00

A handful of lenders began offering fifty year mortgages according to CNN Money. It appears to me that the idea of a mortgage for half a century is kind of a sucker bet. First of all it would take forever to build equity since you would probably be paying interest for a decade and a half. Second, it appears that the mortgage rates are not fixed so your payment could go up. The emergence of these types of loans seem to point to the fact that the real estate market is perfect for a dude like me to buy a first house and thatI need to get off my ass and buy ad damn home! Of course I am still going to bullshit because I am a coward......

Missed great real estate opportunity

2006-05-09T13:54:00.000-04:00

I dragged my feet and missed out on the opportunity to buy a house I really liked in a neighborhood I loved. The house was priced far below market value and required a small amount of work. Nothing to really sweat. The aspect of the house that intrigued me the most was the location. The house was close to the lake and the mansions that line it. My thought was that since the house sat on a double lot if that area was ever specualted for condos or something it would be the first to be acquired. I have no reason to think that but it sounds good to me! Regardless, it is now a moot point. Now I have to find another house to miss out on.

Interest rate hike

2006-05-07T11:14:00.000-04:00

Well, by sitting on my ass and not aggressively looking for a house I have cost myself more money. With the interest rates going up this week I have cost myself a yet to be determined amount of money. I figure with my dismal progress rate and coward attitude I should have everything lined up and ready to sign by 2012. Of course, by then, the market will probably have turned, houses will cost more than they are worth, and I will still be renting this stupid flat with the loud, drunk, tramp neighbors partying and befouling the ceiling of my room with her guy of the week. Is it a crime to break into someone's house to oil their squeaky bed?

Home Equity Credit Card 1% Below Prime?

2006-05-03T09:15:00.000-04:00

Can anyone explain this to me? I'm not sure I entirely get it. Is the idea that you would be opening a credit card that has an APR one point below prime and that the lender is your own equity in your home? Does that make sense? If I were to buy a house that appraises for $160,000 and I only pay $150,000 for it can I open one of these to do updates or do I have to wait a few months? Any advice would be great.

Seller Concessions

2006-05-02T09:44:00.000-04:00

Seller concessions are almost necessary for me. I went back to a house I really like yesterday and found out that it is bank owned. Being bank owned the probability of having a lower offer accepted is not good and even worse at receiving seller concessions. This kind of puts a damper on my plans. I have the cash to pay for closing but I was more interested in investing that into upgrades and repairs. This is way too hard.

Making an Offer on a House

2006-05-01T08:26:00.000-04:00

I am considering making an offer on a house. My real estate agent found a property that claimed to be bank owned but it turns out the guys living there actually have the opportunity to keep their good credit if they can sell the house quick. The house seems to be priced under market value and looks like a good opportunity. I know I should seriously consider buying this house but I am nervous. Presently I am renting from a friend's brother and paying next to nothing leaving me with all kinds of disposable income. For example last week after returning from a trip to Palm Beach I bought roller blades, a kayak, and ate out every single night. It's nice to have the freedom to buy things on a whim but I guess I should suck it up and invest in a future instead of toys. True or False?

Might have found my house!

2006-04-30T15:51:00.000-04:00

I went and looked at house this morning and I absolutely loved it. The house is being foreclosed on, I think, so the owners have the opportunity to sell the house to salvage their credit. The house is a little further away from my place of employment than I'd like but it is worth it. Most importantly it has a bar in the basement. I'm going to check it out again tomorrow. We'll probably find out it is leaning to one side or the basement floods but till then I am hype! I should probably get on the horn with my boy over at Rock Financial.

Buying a Multi-Unit House

2006-04-28T16:15:00.000-04:00

I think I am going to go look at a duplex or two. I love the idea of living upstairs and renting out the bottom half because I can stilll spend money like a dope if someone else is paying most of my mortgage. My concern is the amount of necessary maintenance. I live in a duplex at the moment and over the year and a half that I have lived there we have only had one minor mechanical problem so, I wonder if it is a decent gamble. I'm sure the condition of the house is a big factor but I am curious if there is anything else I should be looking for. Has anyone ever owned a multi-family property and rented a unit? Any advice?

Find Foreclosed Homes

2006-04-28T15:50:00.000-04:00

I found this link on MSN for a website that locates forclosed homes. It actually breaks them up into four categories Pre-Foreclosure, Auction, Bank Owned, and For Sale by Owner. You have to register for a 7 day trial but if you are looking for foreclosed home it will give you quite a few leads.

50-year mortgages

2006-04-28T08:26:00.000-04:00

I was unaware that such a loan even existed. Are these a gimmick to attract suckers or is it a legitimate device to help people get into a home. I couldn't imagine taking a loan for 50 years but, then again, that is twice as long as I have been alive. This article touches on the pros and cons of the loan.

The Art of the Lowball Offer

2006-04-27T17:00:00.000-04:00

Great article on MSN offering tips on making a lowball offer and getting someone to accept it. They way the market is around here I intend to make a bunch of lowball offers. Does anyone have an idea of what percentage to cut off the top of the asking price? Is there such a formula?

First Time Home Buyer's Remorse

2006-04-27T13:13:00.000-04:00

I have crazy anxiety about buying the right house. I look at houses like I look at songs on my Sirius radio. There are so many choices that there has to be a better choice on another station. Mixed with the issues that I don't know what I need and I vaguely know what I want I am completely flabbergasted. In my quest to find a website or article that says "here is the exact house you are suppose to buy" I found this article.

Stiffed by Real Estate Agent

2006-04-26T14:22:00.000-04:00

The Real Estate Agent that has been calling me all the time suggesting houses I don't want to see and neighborhoods I don't like all of a sudden does not want to return my emails. I sent her a list of houses I want to see, in response to her email, and have heard nothing. It's getting easier to can her by the hour.

Flip a Home

2006-04-26T12:21:00.000-04:00

A few months ago I had briefly entertained the idea of buying a house and flipping it with my roommate. He has all the know how in regard to repairs and building things and I have.............absolutely nothing to offer to the business proposition. This article confirms what I had already figured out: I am not smart enough to buy and flip a house.

Property Taxes

2006-04-25T12:52:00.000-04:00

After sitting at my desk for hours figuring out estimated property taxes by hand multiplying the Mill rate by State Equalized Value (SEV) I wised up and realized that the state of Michigan has a property tax estimator on their website. That would have saved me hours of searching for the damn mill rate online. Now I just need to figure how the hell an escrow account works?

House shopping today

2006-04-25T07:44:00.000-04:00

I'm going to look at a couple of ranches and a bungalow today. One of the houses has a finished basement with a bar and a pool table. For the most part that is all I want out of a house and, for that matter, life. I think I'll bring my pre-approval letter in case the bar is a wet bar and stocked with beer so I can make an offer on the spot. I'm getting sick of looking at houses anyway.

Trash or Treasure?

2006-04-24T19:16:00.000-04:00

My buddy is friends with an attorney who recently had a client pass away. The client left behind a decent house in a great neighborhood but that is not the treasure. The treasure is the heaps and heaps of rubbish littering the house. For example, when I was over there this weekend the attorney stumbled across a huge stamp collection he estimates is worth $40-$50K, six pounds of gold(she use to make jewelery), maps from WWII complete with Nazi emblems, and thousands of dollars in cash stashed around the house. With that said, I am going to have to cut this entry short.....I'm heading over to my grandpa's house to go through his basement.

House Hook Up

2006-04-24T17:23:00.000-04:00

My buddy is in the process of getting a tremendous deal on his first home. A friend of his is an attorney and represented a client that recently passed. With only an elderly woman left as family she is looking to dump the house. The house is not in great shape but is in a great neighborhood. Fortunate for my buddy he works for Pulte homes so has the ability and resources to make a killing when it comes time to sell the house. I am extremely jealous. I need something to fall into my lap so I can pull the trigger!

Pool: Increase homeowners insurance?

2006-04-22T10:27:00.000-04:00

I am going to look at a house with a pool either today or tomorrow. I'm not sure if I am interested more in the house or more in the pool. Is this even something I want? All the parties I have already had in my head were great but the fact of the matter is I am the kind of guy that could very easily end up with green water because he forgets he has a pool. Do pools increase home owners insurance a lot?

Home Price Just Reduced

2006-04-21T11:30:00.000-04:00

I just got a call from my real estate lady and apparently a house that I like a lot has been reduced by $7,500. I was considering making an offer on the house at the old price but I thought I would have all kinds of time since the house has been on the market forever. I told the agent I would love to get in the house again when I get back from Florida on Thursday and she said someone else was considering making an offer early in the week but she would "try to stall them". Just my abysmal luck. I wonder if this just a tactic she is using to get me to make an offer or the real deal? Buying a house is way too hard. I wonder if my parents will let me move back in?

Lowering bills to buy house

2006-04-21T11:27:00.000-04:00

When the idea of buying a house popped in my head I handled it in the same fashion as most things in my life. I blindly leapt into the market searching for houses and working on financing. I called my boy at Rock Financial and got approved for a loan then I started calling Real Estate agents. I got hooked up with a couple of ladies from Century 21 but I think they are way more into then me. Unfortunate for them I still have not signed the contract! As the reality of the situation crept in I realized owning a home would, without a doubt, cramp my life style. Once that set in I started looking for ways to lower my monthly expenses so I could buy a house and still be quasi-stupid with my money. A few things I did:

1. Sold my car to lower my payment. I sold my car for about a $2000 profit and put it down on a used truck. I financed it through GMAC finance at a 5.5% rate, which is not bad I guess, and my payment went from $334 to $263 and my insurance is $300 cheaper.

2. I looked at my Sprint bill and realized those bastards were billing me monthly for a poker game I never played - EVER. I also dropped some other garbage and saved another $15.

3. I also looked at my checking account and realized I could save $5 a month buy turning off paper statements. Since I throw them out anyway that was an easy decision.

4. I looked at my student loan account and also turned off paper delivery and that cut something like 1/4 point of my rate. Not much but it also means I don't have shred those stupid paper statements.

5. I tried to switch my beer to 30 packs of Stroh's but that is not going to work so I moved on.

In my estimation, by checking a few websites, making a phone call or two, and selling my car I am going to save over a $100 a month. Money that can be used for stupider, more foolish pursuits like buying rounds for chicks or losing my ass in blackjack.

Arms

2006-04-12T11:30:00.000-04:00

I have a buddy at Rock Financial and he hooked me up with a mortgage, actually two mortgages. I guess the idea is that since I am looking to put as little as possible down and the two loans will eliminate the need to pay PMI. I'm not really worried because I believe him but I am curious if this is a standard practice? I don't intend to live in the house for a real long time, maybe 5-7 years. The first ARM portion of my loan is for 7 years. Does this make sense to anyone?

Real Estate Agents

2006-04-10T11:31:00.000-04:00

I'm going to look at some houses today or tomorrow with a couple of Real Estate agents. I'm debating whether or not I should hire them. They both seem like nice ladies and I would guess they are not crooked but I am still a little leery about inking them because I don't know what to look for in a Real Estate agent. Basically, all I am looking for in a house is a good value. Something that will someday make me some money. I go look at houses with these ladies and they keep saying things like "oh, I see you really like knobby pine" or "so, you don't like shotgun style ranches". LADY, I DON'T EVEN KNOW WHAT THOSE THINGS ARE! What am I suppose to be looking for in a Real Estate person?

My conundrum

2006-04-09T11:28:00.000-04:00

I am a mid-20's male living in a large metropolitan city. I have been making mid to high $40's salary for the last three years. During that time I lived at home for almost 2 years with nothing but a $334 car payment and the usual small bills like cell phones and gym memberships. The last year or so I have been renting a place with a couple of buddies for $250/month a small portion of my monthly income. YET, I still have not saved much money. In comparison to some of my more money savy friends I feel like a dope. I do have money in my savings, I started a 403B last year, and have some money in my E*Trade brokerage account but I definitely think I should have more. I plan to buy a house in the near future but I am concerned that owning a home will cramp my style and make me a boring, frugal person . My intentions behind starting this blog is obtain some type of financial direction that will allow me to still have fun but also own a home. I figure I'll give it four months and if I don't receive the sought after advice I'll chalk it up as another stupid purchase/investment like my ebay bobblehead business or certifying to become a basketball official.