I am buying a 1BD condo (720sqft) Boston area -- directly from the builder -- for $141K (with a possible $5K downpayment assistance -- a 0% loan). I am so excited! The place has an underground garage, hardwood floors, granite countertops, and high-end stainless steel appliances. The unit was offered via a "first time homebuyer" program sponsored by MASS Housing, so I couldn't use a traditional realtor. The program is providing me a real estate lawyer (to prepare an offer template for a nominal fee) and a home inspector (though I am not worried since it is a new property). Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.
Please correct me if I am wrong but here is my understanding on what is going to happen: 1. Lawyer prepares the offer letter, saying that I'll buy the place for 141K if the house passes the home inspection. 2. Home inspector comes and checks the house. Let's assume it is good. 3. The bank I got pre-approved from (I am pre-approved for 4.25% 30-year fixed) probably asks me more documentation and makes this official. 4. On a certain date, I sit down with the builder representative, with my 141K check I got from my bank and sign the purchase agreement. they hand me the keys.
After the purchase, do you recommend that a) I amend this year's tax returns for the $8K first-time homebuyer tax credit now or b) that I wait until January 2010 to do that with the next year's return. Advantages/Disadvantages?
Anything else I should know in general? Any suggestions? I am really excited...
Message edited by: FatWallet moderator on 2009-11-05 14:44:32 CST
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TITLE: I am buying a 1BD condo! What to expect in the next 30 days?
TEXT: Dear FW Real Estate Gurus:
I am buying a 1BD condo (720sqft) Boston area -- directly from the builder -- for $141K (with a possible $5K downpayment assistance -- a 0% loan). I am so excited! The place has an underground garage, hardwood floors, granite countertops, and high-end stainless steel appliances. The unit was offered via a "first time homebuyer" program sponsored by MASS Housing, so I couldn't use a traditional realtor. The program is providing me a real estate lawyer (to prepare an offer template for a nominal fee) and a home inspector (though I am not worried since it is a new property). Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.
Please correct me if I am wrong but here is my understanding on what is going to happen: 1. Lawyer prepares the offer letter, saying that I'll buy the place for 141K if the house passes the home inspection. 2. Home inspector comes and checks the house. Let's assume it is good. 3. The bank I got pre-approved from (I am pre-approved for 4.25% 30-year fixed) probably asks me more documentation and makes this official. 4. On a certain date, I sit down with the builder representative, with my 141K check I got from my bank and sign the purchase agreement. they hand me the keys.
After the purchase, do you recommend that a) I amend this year's tax returns for the $8K first-time homebuyer tax credit now or b) that I wait until January 2010 to do that with the next year's return. Advantages/Disadvantages?
Anything else I should know in general? Any suggestions? I am really excited...
Message edited by: MVP9596 on 2009-11-05 14:44:55 CST
bostonian123 said:Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.
You can expect to be cramped like sardines in a small living space paying HOA fees and possibly stuck there asking yourself "WTF was I thinking?" as real estate continues to lose value.
Message edited by: brettdoyle on 2009-11-02 19:47:51 CST
brettdoyle said:bostonian123 said:Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.
You can expect to be cramped like sardines in a small living space... and possibly stuck there as real estate continues to lose value.
720 square feet is tiny...maybe not to you but it is for anyone else that might possibly buy it in the future. Don't be surprised if the place is worth $120k or so in the next year or so.
Expect to feel buyers' remorse as the property declines in value and you realize that paying $140,000 for a condo the size of a garage for the tax credit was a bad move.
Cerdo said:Expect to feel buyers' remorse as the property declines in value and you realize that paying $140,000 for a condo the size of a garage for the tax credit was a bad move.
does that depend on region whether its a bad move or not, regardless of declines all over? 140,000 in that area isn't the same as 140,000 in the midwest or southwest.......... but it shouldn't be expected to be, right?
The difference is this isn't in NYC. This isn't even in Boston. This is ~30 minutes away from Boston with no traffic, 1:00 hour to 1:30 with traffic, in a town that people live in just to get some space to spread out.
Do you work in Natick? Do you live there currently? You have some serious questions to ask yourself before you buy a condo based on its proximity to an upscale mall
What amazes me is he specifically mentions the tax credit, as if that was a motivating reason for the purchase. I've always thought it was a great deal to spend $1 to save 30 cents. Looking at the tax advantages of buying a home is like eating a donut for its nutritional value.
amend the return. They are taking almost 4 months (due to fraud) to process the FTHC with IRS. It might delay your 2009 taxes if you put it on those taxes when you file in January.
Congrads! I don't know if the other people who replied earlier knows the Boston market. I actually live in NATICK and think you did well on your condo. 720 sq ft for 1 bedroom condo is not bad. At least much bigger than my current apartment. I haven't followed the price trends for condos, so don't know if you got an extraordinary deal. Where is this condo? Is it near the train station? How much is HOA? The only down side would be high HOA. Your 30 year mortgage rate is awesome. How did you get it?
I am buying a 1BD condo (720sqft) Boston area -- directly from the builder -- for $141K (with a possible $5K downpayment assistance -- a 0% loan). I am so excited! The place has an underground garage, hardwood floors, granite countertops, and high-end stainless steel appliances. The unit was offered via a "first time homebuyer" program sponsored by MASS Housing, so I couldn't use a traditional realtor. The program is providing me a real estate lawyer (to prepare an offer template for a nominal fee) and a home inspector (though I am not worried since it is a new property). Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.
Please correct me if I am wrong but here is my understanding on what is going to happen: 1. Lawyer prepares the offer letter, saying that I'll buy the place for 141K if the house passes the home inspection. 2. Home inspector comes and checks the house. Let's assume it is good. 3. The bank I got pre-approved from (I am pre-approved for 4.25% 30-year fixed) probably asks me more documentation and makes this official. 4. On a certain date, I sit down with the builder representative, with my 141K check I got from my bank and sign the purchase agreement. they hand me the keys.
After the purchase, do you recommend that a) I amend this year's tax returns for the $8K first-time homebuyer tax credit now or b) that I wait until January 2010 to do that with the next year's return. Advantages/Disadvantages?
Anything else I should know in general? Any suggestions? I am really excited...New home does not equal without problems.
Some homebuilders were using subpar materials, unskilled labor, and cutting all the corners they could to get things done quickly when the RE book was happening. It takes time for the issues to show up. Don't make the mistake of thinking that a newly built house is a guarantee that there are no defects.
Message edited by: FatWallet moderator on 2009-11-05 15:15:08 CST
Theman2. You're right about skimpy workmanship on new constructions. It's so easy to put in nice kitchen cabinets and granite so buyers are blindsided by that and not notice what could be subpar work elsewhere.
Expect a very slow response from your lender, probably not by November 30th. I'm in escrow now and the process is moving at a crawl. It's taken nearly a month to get documentation of our large deposits reviewed by an underwriter. Our contact at escrow said this is quite common now as many lenders are overwhelmed with applications.
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Looking at the tax advantages of buying a home is like eating a donut for its nutritional value.
