Real estate General topic

[Jrasband]

Run away, don't get something with a easement to someone you don't even know.

 

[old and tired]

Run away... too expensive and the easement will be a constant headache which you have no control over.

and yes, the logging trucks will use that access.

 

[etpm]

My wife and I spent a lot of time looking for land. We looked at many parcels and drove hundreds of miles in the search. It got to the point that we were kind of desperate. But the desperation was false, which we came to realize. We weren't being forced to move from our house. Land prices weren't going up fast. But once we decided to buy some land it became kind of urgent after we looked at several parcels that wouldn't work for whatever reason. Then we realized, after a failed offer, that we were not in a hurry and we could slow down and wait for the right parcel to come along. What really showed us how we needed to slow down and wait for the parcel that was right for us was when we put an offer on a piece of land that the real estate agent assured us the seller would take. The piece of land was beautiful but access was down a steep dirt road that would be very hard to drive on in winter. And the well was shared by 6 other parcels. And the price was 10 grand higher than our budget allowed. This was in 1996, so 10 grand was more than it is now. Fortunately for us the seller rejected the offer. I was relieved. That ten grand higher price was going to be a burden for several years. My wife was relieved too. That steep dirt road and the high price scared her. The shared well was also a problem. Anyway, we calmed down, realized we weren't desperate, told the real estate agent we weren't desperate and we would just wait until the right chunk of land became available. And about a month later the right piece of land did become available. 15 grand less than the land we couldn't afford. And 5 grand less than our budget. It wasn't even on the market yet. We built a house on the land and still live here. We had a well drilled and we have great water, 15 gallons a minute. Where we live great water is not the norm. My wife and I have done plenty of work making the place ours but it is really very nice and the land is truly beautiful.
Eric

 

[paulsharvey]

ETPM, point taken, and I agree. In my house, we tend to take Forever himhawing around until we decide to do something, and then it is more of a matter of, we decided to do this, we are doing this.

When we bought our current (first) house, 17 years ago, we did several unofficial visits to multiple places, but the only actual showing was the one we bought.

When we bought last 3 or 4 vehicles; it was months of deciding to do it; followed by 1 visit, and yes, this checks all the boxes, sign the papers.

Now, we have started to slow down just a bit; my truck in late 2019; we test drove 3 or 4; and did walk away from one dealer who had something that "checked the boxes".

 

[paulsharvey]

Wife and me both Hate the whole big purchase process/shopping process. Last vehicle was her Charger, and she ordered it from Vroom, too avoid a lot of the BS (BTW, that process was less than enjoyable too).

I had wanted a newer tractor for last 8 years; when everything fell into place; sold my old one in 3 days and signed/loaded up new tractor 3 days later.

I know some people claim to to enjoy home shopping/vehicle shopping/tractor shopping; not me.

I told wife last night; kinda dreading this showing, I know they are gonna try to push us into a decision. Her words; "I'm not doing that, we will look, and if we like it, we will make an offer we think works for US, and that's it"

 

[riptides]

I'll just add, easements, ROWS and HOA's, I would stay away from (inspect utility easements). Last two purchases of property we spent some time at the court house looking over deeds and tax records. Amazing what one can find in older documents. Also for rural lots, survey paperwork and information is helpful. While your at the courts or seat of county government, ask about their master 20 year development plan or development strategy if they have one. Maybe even see if you can find an older development plan and see if they stuck to it.

 

[paulsharvey]

So, big picture; we have found it very difficult to purchase just land, over 5 acres. 95% of lenders and frankly real estate people don't know how to treat it. They know what to do with a home on small parcels, they know what to do with a future construction lot, but very few know much about buying 10-15 acres to build a home in the "next few years". One that's do, they want Stellar credit, 20%+ down, and max 10 year loans, and higher rates, to off set the risks.

Wife would prefer to purchase a more in ready home; I frankly like the idea of land and then having a scatter lot builder build a home.

Just kinda a general rant about buying rural properties.... system is set up for your subdivisions, neighborhoods, ect.

 

[ultrarunner]

Folks property has a sewer easement serving hundreds of homes deep in the draw.

For decades it was a hike to walk the areas you could walk.

The home is quite a distance away and I put in a nice gravel Fire road that loops around and connects with the backside of the easement.

Well the city sewer department likes my road and have cut my locks.

City says we have an easement and I say yes you do… down there but not on this separate parcel.

Easements are interesting and most just guess so even if the easement is far away my experience is those with rights will always go for the easy way.

 

[WinterDeere]

Getting back to the original topic of buying a property, and stretching your margin, always consider contacting the selling realtor directly. If you've been through the property buying game at least once before, and doing all of your own legwork to find properties online yourself, then dropping 3% on a buyer's agent is of questionable sanity.

When shopping for our current property, we just contacted the listing agent directly on each property we wanted to see, and they were thrilled to handle us under dual agency (same realtor for seller and buyer). I think we even threw in an extra 0.5% or 1% for them, which still saved us $20k on properties we were shopping, over having our own useless buyer's agent.

Buyer's agents were very useful, back before you could find your own listings on the internet, but their job is mostly obsolete today. In some cases, one who's very well-connected or working in a large office, can help you find a property before it's been listed, which may only matter in a very hot seller's market. In other cases, they may give first-time buyers some level of comfort that they're being taken care of and not screwed, although the fact that they work on commission doesn't give them much incentive to get you the lowest price. Overall, I think they're somewhere between a parasite and useless.

 

[JJT]

You answered your own question, "it's a stretch financially". DON'T DO IT!

 

[ultrarunner]

If I would have listened to conventional wisdom at the time I might still be renting.

At age 22 I bought a 1910 shack on a 25x100 lot and the property was facing condemnation.

I took my life savings and sold my car to buy it for $11,500 cash.

Family came to see it but didn't have the heart to tell me what a blunder I had made.

Best single investment ever and since I moved only 2 renters since.

Sometimes a stretch makes the dream a reality?

 

[WinterDeere]

You answered your own question, "it's a stretch financially". DON'T DO IT!

I couldn't disagree more. I've been successful, through some combination of hard work and luck, the fraction of each which we could all debate. But it all started with making an enormous stretch, to the point where there were months in which I had decide between home repair and eating. Friends who thought I was going in over my head at the time have never caught up, as they missed out on a full doubling in local real-estate value at the time, while they were either renting and saving or in smaller properties that didn't earn them nearly as much in said doubling.

I was able to mostly retire in my mid-40's, and start a business more to support my lifestyle than financial needs. I'm not Jeff Bezos, but I will never worry about finances, on our current track.

For most people, your home is the single largest investment you will ever make. Chosen and managed wisely, it will provide well for you in retirement. The most important factor in all of this is location, and all that surrounds that "L" word, it's the one thing you can never change about a property.

 

[kenmbz]

Look at this from both the place to live and as an investment.
Paying down a loan contributes to the funds you have in retirement.
Calculate the payments you can afford and that can tell you what you can comfortably buy.
Include tax, insurance, some money for upkeep, HVAC costs.
and importantly, moving costs and selling/buying expenses (closing costs etc.)
Once you have this picture, you can then feel more comfortable in the purchase.
Stretching a bit up front to get better returns is a business and risk decision.

People who get in over their head don't plan for all the costs.
Plan for them and this becomes less stressful.

 

[drssg]

If I would have listened to conventional wisdom at the time I might still be renting.

At age 22 I bought a 1910 shack on a 25x100 lot and the property was facing condemnation.

I took my life savings and sold my car to buy it for $11,500 cash.

Family came to see it but didn't have the heart to tell me what a blunder I had made.

Best single investment ever and since I moved only 2 renters since.

Sometimes a stretch makes the dream a reality?

I'm reminded of the real estate mantra: Location. Location. Location!

Your condemned shack cost about the same as my childhood home in Ohio, which had 40 acres, a house, and a barn. Granted, this was probably 20+ years before your purchase, but a big factor is where you want to live.

 

[JasperFrank]

In five years, the real estate market will collapse in the same way it always does. So save up with liquid cash and wait for it.

 

[ultrarunner]

I'm reminded of the real estate mantra: Location. Location. Location!

Your condemned shack cost about the same as my childhood home in Ohio, which had 40 acres, a house, and a barn. Granted, this was probably 20+ years before your purchase, but a big factor is where you want to live.

Yep… 40 years ago in East Oakland California.

Still own the place today…

 

[ultrarunner]

In five years, the real estate market will collapse in the same way it always does. So save up with liquid cash and wait for it.

Yes and no.

It was proven that the foreclosure sales on the court house steps had a pecking system of buyers… very much a closed club.

When the market collapse lots of money on the sidelines… at least my experience.

I made offers on many foreclosed properties… some 20 or more percent over asking and nothing.

One had so much interest with 9 qualified offers they did a reset inviting the 9 to submit best final offer and I did not.

A flipper bought it.

 

[paulsharvey]

Real Estate is such a local thing; it could (and very well might) crash in midwest and north east, and boom in the southeast.

I can't help but wonder what happens as the baby boomers finish dieing off? The youngest end of that gen is what, 70ish now, and the top end already 80. What does that do to supply? Does it really matter That much if the supply is bought up to turn into rentals? Big picture, I don't think anyone has the answers.

 

[paulsharvey]

On a Big picture, the US is nearing a population drop trend in next 15 years or so, and even before that, once you count out undocumented folks, we might already be in a population drop over all. We 100% have whole states, and many smaller areas that are depopulating.

We also have more and more remote working stuff; where you might be able to work as a well-paid project manager, from remote WVa or Ark, and that affects home sales trends too.

Over all; people prefer good climates, so I would expect SE US to grow, and Mich/Illinois/NY/NJ to start to shrink?

 

[dodge man]

I’m at the young end of the baby boomers, I’m 61. You trying to kill me off?