Question
Buying a House: How much to offer or better yet what to do?
Okay so here it is...To wait or to buy is my question. Let me lay out the details. I make $57K a year, with an additional $605 monthly from Child Support. I have monthly expenses that include: car loan $695 (total due $35,000), second car loan $280 (total due $5,500), current rent $600, personal loan $107 (total due $1800), car insurance $230, credit card $15 (total due $300), phone bills $150, cable $107, and light water gas $200. I have gotten approved for an $110K mortgage at 5.35%, 30 yr fixed. The taxes on the place I am looking at are $1400, and the HOA fees are $110 monthly. I am trying to take advantage of the home tax loan, but what to do?? Do I stay where I am and pay off some bills and miss the tax credit, or do I go ahead and purchase the townhouse?? Please give me REAL, educated responses!!! Thanks!!! Also the townhouse is a foreclosure, priced already $20k under its comps (its in REALLY good condition, so no work would need to be done). So do I offer the asking price of $110K or is it insulting to offer $10K less?? The house just listed yesterday, and it comes with NO appliances. I would like to try and offer $100K with seller paying my closing cost, or $105K with them paying my closing and giving me an appliance allowance. Thanks I have two seperate car loans...for two seperate cars..I have a car for myself and one for my mom..Also I pay the full coverage insurance for my car, my moms car, and liability for my sisters car.
2 months ago - 5 answers
Best Answer
Chosen by Asker
the bank just wants their money. offer low. i wouldn't go over 100. maybe lower because appliances will be around $5,000. have them pay closing. I'd probably offer $95 and the bank will tell you what they need.
Source(s)
experience.
by allie in NY
2 months ago
Asker's Rating: 
Other Answers
You make a good salary, you won't have a problem getting a house hun.
by Ashley Buttercup- 2 months ago
You can't negotiate on foreclosed houses, they are bank owned and pretty much the price is "as is". I would find out for sure from your Realtor if you can make an offer and if you can, absolutely go for it...there is no such thing as being insulting in the housing market. And you better hurry fast if you do want the tax credit, you only have until the end of this month. Good luck!
by mageta8- 2 months ago
You mentioned the tax credit, but I just wanted to add that you will not be able to take advantage of this extremely generous tax credit after November of 2009. The Treasury department has not indicated that they will be extending this credit, so it's safe to assume that they're not. The question of whether or not you should buy is a little tricky. For those that are anticipating purchasing real property for investment purposes, the question they struggle with is are home prices going to go up or are they going to go down? However, when one purchases a home for the purposes of living in it, the question you must ask yourself is will you enjoy living in the townhouse and can you afford it. It sounds as if you can afford it, but only you can answer the question of whether you and your child will enjoy living there. In looking over your expenses, The one figure that stuck out for me is the car insurance. $230/month seems high. I see that you have 2 car loans, but it's unclear if you own 2 cars or if you have 2 loans against 1 car. Even for 2 cars, this seems quite high. Perhaps you can consider raising your deductible to get a bit of a break on the insurance premiums. Good luck!
by brad6969k- 2 months ago
Do not be afraid to make a low ball offer because if the seller tells you "NO" you can always offer more money. I think I would start at $90,000 because the banks wants these foreclosures off their books. Also remember that your realtor is on commission and gets paid higher fees if you offer more money. Below is a link to why you should buy a home Now fullsail5reasonbuyhome ... The tax credit ends November 30th so you must hurry to be able to close by this time. There is talk in congress about extending the credit but it is only talk right now. Would love to help you with an mortgage needs. I estimate your new payment including taxes are $740 plus HOA fees $110. This is a fixed rate so you pay $250 more than you are paying now in rent and you could get $8,000 from Uncle Sam. The $8,000 could pay off the car and personal loan and that saves you $387 a month so yes you should buy.
by William- 2 months ago