Central Florida · Member since 2019 · 88 posts · 10 votes
This wouldn't be a big deal to not get this house but it's the one we wanted to live in. My REI is delayed until we find a new place. I am considering another less desirable home and my offer would be $120/SF and it's listed at $145. Not sure if seller will take it but it's above a previous offer and the place has been listed a while. Just wondering if it's worth it because of the condition and not exactly what we want. We seem very picky to the point we may need to build. So, is it better to get this process going now or hold out for a property we desire more? Good night all.
No house is 100% perfect. If you buy a house and do extensive renos, you are unlikely to get your money back on those.
If you are getting into real estate investing, why not buy a rental property and live in that until you find your dream home? Remember when buying a rental, it is different than buying a house for you to live in, so you will need to make some compromises. At the same time it might be good to see if all the things that you want in a new home are really needed.
No house is 100% perfect. If you buy a house and do extensive renos, you are unlikely to get your money back on those.
If you are getting into real estate investing, why not buy a rental property and live in that until you find your dream home? Remember when buying a rental, it is different than buying a house for you to live in, so you will need to make some compromises. At the same time it might be good to see if all the things that you want in a new home are really needed.
Sam, we don't need to rent as we own the home we live in, I just want out and before market loses anymore steam (seems we may have already lost $25,000 off sale price but I know that can change).
Theresa, the home I am considering putting a bid on would be an eventual rental. I was just hoping to get into a house that we would not have to move again for more than 10 years but like I said we may just have to build. The money from selling our current home would go to rental properties. Now you mentioned compromises. The potential home has a bad master bath tub so we were going to rip out the tub and do a big walk-in shower. It's not that I don't want a tub, I do but I am also very sick and tired of banging my elbows when showering and a large enough tub is really expensive. So that is a sacrifice I will make but is that a negative for a future tenant? The second bathroom is shower only so I could see that being a problem for a family that has young children, or am I wrong here?
@Deb R. You are right. Not having any bathtub in the home will be a negative for a family. Could you just use the shower in the second bathroom?
As for market value, are you moving to another town? If your house value has gone down due to the overall market and you are moving to the same area, the value of the other house will also go down.
Central Florida · Member since 2019 · 88 posts · 10 votes
7y
I guess I should've mentioned the house that we didn't get was not going to be a long term home but one that gave us a little tiny sliver of water access to a lake. It was an experience I was willing to sacrifice for to see what it felt like. My husband was crushed.
@Deb R. You are right. Not having any bathtub in the home will be a negative for a family. Could you just use the shower in the second bathroom?
As for market value, are you moving to another town? If your house value has gone down due to the overall market and you are moving to the same area, the value of the other house will also go down.
The shower in the second bathroom is not big enough to put a tub in, so not a better option for showering. We are not moving to another town just a neighborhood without a HOA. I did take into consideration that the potential house value would go down too but I am not seasoned in pricing houses so that is only my speculation of the price drop. I have been watching the pricing in the neighborhood and I cannot explain why one house went for less than another of the same floor plan. The one had a little bigger corner lot and the other upgraded kitchen and bath yet went for less.
Thank you for your reply and confirming that no tub is a negative, I will have to rethink things.
I didn't mean to put a tub in the second bathroom, rather you could use the shower in the second bathroom and not put in a large walk in shower in the ensuite.
When markets change, it can impact some neighbourhoods more than others. The areas that are in high demand will be less impacted.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
7y
I wanted to point out that it may be difficult losing the one you wanted, but you should be using it as a learning experience before your next offer. 1) Always be ready to walk away if you've done the research and you're offering what you feel is fair, owner-occupied or rental, and 2) if you really wanted it but offered too low thinking you needed negotiating room and someone else got it for what you would have gladly paid for it, hard lesson learned, don't do that again, and 3) research what about your offer made it weaker than the other, and do what you can to improve your position next time.
For instance, don't present offers contingent on the sale of your current home unless you're days away from closing. If you have a max price higher than your initial offer, an acceleration clause can help. Make sure you are putting yourself in your strongest position, research your numbers, and if someone else gets it for more, they likely paid more than you were willing to, anyway.
The worst for me is when they buy for thousands less than you offered because seller took the lower cash offer and you needed financing. We lost several great rental opportunities that way. But there will always be other opportunities, even for a lakefront bargain, so just learn from the experience, have some patience, and be ready to jump when the next one presents itself.
Central Florida · Member since 2019 · 88 posts · 10 votes
7y
@Theresa Harris I know you meant shower in the second bathroom but if I cannot even put a tub there then it is a worst option than what is in the master, as in even smaller. Many thanks for the luck, we all seem to need a little extra every now an then.
@Lynn McGeein thank you for the detailed response. The only things that made it difficult were my husband's attachment to it and that it took him so long to get me on board the option to try something that doesn't come along often.
I have been told that having the contingency of sale of current home may get your bid tossed in the circular file but no one specified a time frame, that's good to know that it may be an option. On point 3) what do you do other than wait for the sale price to be posted?