Many of you have been asking about our house search lately. You’re wondering if we found anything we like and if we’re moving into a place soon. I had no idea this house search would spark such an interest! For those of you who are curious, here are the details of our house search thus far.
The Initial House Search
Early on, we weren’t sure which type of property we were even looking for. In fact, I wrote a post titled, “Condo or House? A Question for the Readers.”
The condo would allow us to work less (yard work and such) and it would offer quite a few amenities, but of course, this came at a monthly price. A house, on the other hand, would allow more freedom, and more privacy, but it would require more work.
After searching through a few houses and comparing them to the condo, we realized that we could get much more house for the price. The condo would cost about $130,000, whereas a comparable-sized house would cost about $100,000. The condos were really considered “luxury” and therefore came at a higher price tag.
Since my wife and I have decided to spend less than $100,000 on our first house (even though we could technically afford nearly double that), we have seen many “interesting” properties. Many of these properties were so run-down and beat up that we didn’t even venture upstairs to view them in their entirety.
Of course, most of these properties are foreclosures, so the original owners gutted them before they were required to leave. Many of them are left without appliances and have been damaged in some way. Odd odors, such as old food, cat pee, and damp carpet were fairly common within these foreclosed properties as well. Since we’re not professional builders or remodelers and would like to do much of the work ourselves, we pretty much disregarded any house that required us to rip up floorboards (this was the case for most of the houses under $50,000).
My wife was leaning very heavily toward the luxury condo, but when we walked into “The” House, we both knew that this one took the cake, and it came at a discounted price.
Normally, when couples walk through “the house of their dreams”, they’re stepping into the most expensive house in the neighborhood. This wasn’t even close to describing our moment.
I’m fortunate enough to have a wife with vision, because to the untrained eye, this place is u-g-l-y, ugly! The entry door is painted blue and burgandy, the appliances are gone, the porch has curled up laminate flooring, the carpet is worn, the shingles are peeling, and there is cow-print wallpaper EVERYWHERE!
It does not have the “wow” factor now, but here’s what we see: original early 1900’s windows, solid doors throughout, steel framing in the basement, multiple laundry shoots (my favorite!), hardwood floors on the main floor and upstairs (hidden under the carpet), an open staircase, large bedrooms, a large formal dining area, a beautiful fireplace, a porch, and a perfect location (near the park, pool, and the hospital)!
This house was originally listed for $107,000, then was lowered to $95,000, and then was lowered again to $87,000. This was all in the course of only 3 months! I smelled a deal!
My wife and I originally offered a “low-ball” offer of $62,000 which was immediately rejected by the bank. After the rejection, we decided to look at a few more properties, but we soon realized that nothing else really measured up. I mean, let’s face it, I’m 6’8″ and there aren’t too many basements that can contain me! This house did, so it passes the test that few houses can.
We decided to get the bank’s attention and offered $76,000 (still $11,000 under their asking price, mind you). It worked, they countered our offer with $78,750, and today, we are splitting the difference which will hopefully be accepted by the bank!
Wish Us The Best!
We are putting the offer in under the condition that we can still opt out of the purchase if it does not do well in the inspection. Hopefully, the bank will accept our offer soon and we can continue with the process! Keep us in your prayers and hopefully everything will work out!
If we get this house, would you like to be involved in the renovation? My wife likes to take pictures! 🙂
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.