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Buying a House

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It is official…signed purchase agreement, approved mortgage, appraisal complete, and closing date tentatively scheduled. I am buying a house.

As I previously mentioned, I had an inspection done prior to bringing it up to anyone but my dad. And then he and I reviewed it together, highlighting the “red flags”. I then scheduled a call with my landlord who has offered to sell me the home since I moved in.

(He is an older gentleman and has been selling off his rental property for several years now. He’s not just trying to unload a trouble house as some readers have suggested. And yes, I have reviewed the local property records and can confirm this as truth.)

The Deal

I am really terrible at negotiating, but armed with my inspection report and numbers of repairs and quotes from contractors, I felt I was prepared. I also had a goal price and a max price, along with non-negotiables. My landlord received the inspection report about a week before we chatted so he could see where I was coming from.

But, in the end, I think we both felt good about where we landed…

Home price: $95,000

Seller to:

  • Replace the roof (completed last Friday) – inspector said it would have to be replaced in next 5 years
  • Replace A/C unit – (completed a couple of weeks ago) We have had trouble with it every year when we first turn it on. He has always fixed it, but it’s from 2007 so I didn’t want to risk the cost of replacement in the next few years.
  • Upgrade/replace electric – This house still has a fuse box and several outlets that are finicky. This is a work in progress because finding an electrician has been challenging. The roofer referred us to someone, so he has him set to come out this week to get a quote. *crossing my fingers

We had a leak in our one bathrooms so that was already under repair and he let me pick out all the new tile, etc. so it’s really like getting a new bathroom.

Monthly Budget

Closing is currently set for the end of this month. I am SO EXCITED!

Based on mortgage estimates, my payment will be about $480 per month. I currently pay $650 in rent. And I’ve already gotten home insurance, just converting my existing renters policy on closing date. Between the two, my monthly housing payment is not changing much at all.

I realize the BAD community doesn’t approve of this decision. But after 14 years of constant moves, this is the right decision for me.


7 Comments

  • Reply Katie |

    Congratulations! Home ownership brings plenty of responsibilities, but also some security. That’s a low mortgage payment, which is great. My only question is that you’ve said repeatedly that you live in a remote, rural area. If resale is going to take awhile if you want/need to move, don’t rush to pay off the mortgage. You don’t want all your money tied up in a house.

  • Reply Anonymous |

    Do you not have property or school taxes in Georgia? Your payments don’t make sense

  • Reply Shanna |

    Congrats on your new house. It sounds like you really did your homework! But I am flabbergast about how low the cost of real estate is there. In my area a “tear down” is at least a million and will have multiple offers at that. I hope it brings you contentment and years of stability!

  • Reply T'Pol |

    Congratulations! Despite being a BAD community member against this decision, I congratulate you. After all, personal finance is personal. Now that Princess is going to stay at a dorm, will you be down to two kids living at home? Gymnast and Beauty? I hope, you will be happy and content with your decision. Please do remember that even a brand new home may end up having issues so, it is always a good idea to create a “maintenance fund” earmarked for repairs.

    • Reply Walnut |

      Definitely keep a house repairs fund. I personally like to keep about $10k in an easily accessed savings account. In my area, this could new hvac, roof, or electrical box replacement. The latter two are common with storm damage/lightning and hvac always likes to go kaput at the least convenient time.

So, what do you think ?