Home Builder Austin

Realtor.com shows lots of houses for sale at bargain prices. How can we tell which are honest?

To qualify to buy a house twice as big as the one we have now, we have to sell this one first, then apply for a mortgage prequalification, then shop for the bigger house. If we apply first, the present monthly mortgage payment would disqualify us for the bigger house. But what if we sell this house, then discover all those bargain houses have problems, such as needing extensive repairs or being perpetual short sales? The place we want to buy a bigger house is far away, but we also have the option of just keeping this house and staying here. We want to sell while the tax credit is in effect, because it can make it easier to sell faster. If it expires, we will just give up and stay put. So our real question is how we decide how cheaply to sell this house, without knowing how cheap houses really are where we want to go.

Public Comments

1. It is always best to consider with some skepticism any advise of a person who profits by your purchase. I have always invested in a private appraisal - sure it might cost a couple hundred dollars - far cheaper than over paying for a house - far cheaper. Also after seeing a house I am interested in I always go without the realtor and talk to the neighbors. A Sunday afternoon works well for this. "Hi, my name is Thomas and I am considering buying the house on the corner. Do you know anything about it and the neighborhood?" They may be friends with the owner, but most people cannot resist being asked their opinion and you will learn much: The bad: "Yeah, I think the basement leaks - I loaned Joe my portable sump pump last spring" " New roof last year - too bad they had so much water damage before it was replaced." "Kathy told me they were going to sellout and move after she got out of the hospital - poor thing - the home invasion really shook her up and I don't blame her, getting beat up and raped like that. We're putting our place on the market too as soon as it is all fixed up and ready to list. Whole neighborhood is going to hell!" The good. "Joe, over there, he is a fanatic about maintenance - always working on the place. Must be the best kept house in the neighborhood." "Schools are good here, top ten in the state rankings." Like any major purchase - it is worth a trip to check on prices before making the move of this magnitude. It is up to the buyer to do due diligence and pity the man who does not.
2. First, never buy without looking first and getting an inspection done. Go to the location you want to buy and spend a week end looking at the bargain houses so you know what type of condition they are in and the neighborhoods they are in. Usually there is a reason for them to be priced low. Once you have the knowledge of what it will cost to buy / repair a house in the area you want, then list your house for sale. When you go to purchase, Select your inspector carefully. Be sure to find someone who actually knows about things like construction, plumbing, wiring and roofing, and knows what the codes are in your area. Most inspections are a waste of money, the inspector has no idea what he is talking about and puts down things like the plumbing should be inspected by a licensed plumber, the electrical box should be inspected by an electrician, etc. etc. That is what you are paying him to do. If there is something wrong, he should know it and put it on the report. It is important for you to know before you complete the purchase. Most of the time, the licensed electrical / plumbing/ etc. contractor comes out, looks and says everything is fine, pay me $150 for driving out. costing you more money for no reason.