I just want to start a thread to share experiences, advice etc etc for first time home buyers on a budget.
Apart from personal priorities, what are the things that you can or should compromise on?
Do the school ratings change over the years lets say in 5-10 years?
What if you live in an area with lots of old houses (100-200 years old), what to look for?
how to pick a real estate agent?
how to deal with the real estate agents without letting them walk all over you?
lets share 
Re: First time home buying..
This is right up my alley! I have been a Realtor for almost 10 years now, so let’s see if I can shed some light on this topic…
The first thing any new homebuyer needs to do is consult a mortagage lender and get pre approval. You need to take in account not only your monthly payment, but taxes, insurance, HOA’s dues if applicable, utilities etc. I also counsel my clients on considering their over all lifestyle…do you entertain alot? Do you like to travel? Do you have childcare expenses? I do not believe in being “HOUSE POOR”, just because you can “afford” a monthly payment, does not mean you can afford to live in that house!
Location, Location, Location!! This is the one thing you cannot change!! Make a decision on a particular area that is suitable for your needs (affordability, commute to work, near where you shop, have family etc), and then start looking for homes.
There is no such thing as the “perfect house”, so don’t go looking for it! I have my clients rate on a scale of 1-10, and let them know that if they hit an 8 or 9, that’s the one! There will always be something you don’t like, but certain things like flooring, carpet, paint, appliances, fixtures etc are all cosmetic and can be changed. What cannot be changed is if the master bedroom is downstairs and all other bedrooms are upstairs or vice versa. So make a list of your non negotiables that you MUST have, and don’t get hung up on the other little things.
Most first time homebuyers stay in their home an average of 7-10 years. Since you just had your first child, chances are you will not be in the same house for his whole K-12 education. If you are looking in an established, well settled area, chances are that the school ratings will remain pretty constant. The Exemplary districts usually reamin so, and the Poor/Unacceptable districts as well. If you’re looking in a newer area/development, than yes, schools can change from acceptable to exemplary in a matter of a few years. Again, talk to friends and family who have experience and have sent their children to a particular school district for many years, they can help you make a decision.
If I remember correctly, you live up north, which is very different from the Texas market, as we do not have a whole lot of historical homes, but none the less, due dilligence is the key. Do your research about the area/neighborhood. What are the normal upgrades/rennovations? When was the last time the roof/HVAC system/plumbing replaced? DO NOT skimp on your home inspections!
Most people pick a real estate agent through personal reference/word of mouth. Start asking family/friends/co workers if they have someone they’ve worked with before and if it was a positive experience. Do not be afraid to interview different agents, after all, you’re trusting someone with your home search/finances, it’s a big deal!
Real Estate Agents are bound to a Code of Ethics and are there to serve your needs, educate you and facilitate your transaction, not walk all over you! They only get paid when you sign the stack of papers at the closing table, so it would be stupid of any agent to “walk all over” their client. That being said, if you feel uncomfortable with your agent, or feel like your needs are not being met, be direct and up front, and let them know that it’s best to part ways. Always follow everything up in writting!!! Email is your best friend!!
There is no harm in asking questions. Your agent should make you feel good about the homebuying process, not stupid! But also keep in mind that they are the professional, and do this day in and day out, with many, many, many different clients. They know what they are talking about, so trust is also the key!!! Nothing irks me more than clients who follow everything I say with “but so-and-so told me this” or “but I heard this…” 
Don’t undermine your agent with talk like that!
I hope I answered your questions with a perspective from the “other side”. Good luck and have fun!
Re: First time home buying..
neighborhood/crime rate/school district/community/new or old home (year of build)/pesticide certificate/property annual tax/ market value/home insurance cost/interest rate/monthly mortgage
you may find real state website of your city on google. you may pick agent either referred by friends/family or some other sources.
what kind of house are you looking for? wooden house doesnt last that much. 
Re: First time home buying..
I will recommend you to buy old house (built 2 or three years ago). Why?
because, it would cost you cheaper, many things require in new house like windows blind/fans/etc etc and it costs really expensive unless you have handyman(husband/brother) to do this stuff for you.
listen to khatti. she was in business.
Re: First time home buying..
I will recommend you to buy old house (built 2 or three years ago). Why?
because, it would cost you cheaper, many things require in new house like windows blind/fans/etc etc and it costs really expensive unless you have handy man(husband/brother) to do this stuff for you.
listen to khatti. she was in business.
Not neccesarily true STA. When you go with a "new build" through a builder in a pre-planned master subdivision, you are not charged for windows etc...ceiling fans & blinds can be negotiated into your package. And there is no guarantee that a pre owned home already has those features. Or if they do, they might not be what you like, so you have to pay to change in anyway.
In this economy, with all the forclosures and empty homes on the markets, it's actually new builds that are selling faster, because the builders need to get the empty lots off their books, and are eager to sell fast, so they are throwing in many, many upgrades! My sellers are having a hard time competing as their house that is 5-10 years old is listed for the same price as a new build that can me made from scratch per buyers' choice with many more upgrades!
It all depends on your city and market, a reputable agent in your area can best advise on you new vs old.
But thanks for the plug, I appreciate your kind words!
Re: First time home buying..
aww khattiii.. you were in my mind before I opened this thread 
Thank you sooo much for sharing such valuable advice.. we have done the pre approval bit and all of that.. we are tight on budget for the very same reasons that you mentioned.. we are keeping in mind the monthly payment along with our passion to travel around.. we are not planning to buy a house to be cooped in but will love to travel just like we do now! and of course be able to live comfortably.. hence, dont plan to exceed over our budget no matter what!
The downfall for that is we will not find a perfect house.. we dont want to.. husband is awesome in getting things done mashaAllah and one of my uncles built his house from scratch in the US so we are willing to compromise on lots of things and will get the work done ourselves inshaAllah.. (I even know the kitchen that I want from Ikea :D) so yes our basic goal is get into something that is in move in condition and thats pretty much it!
The neighborhood is very important to us.. we are keeping that in mind!
We will definitely keep in mind the cost of upgrading must be in sync with the average cost of the housing for that neighborhood.. dont want to spend too much if we cant get that back later when n if we sell the house!
is it okay if I bug you through PMs if and when needed?
STA.. I dont think we even have a house around that was built couple of years ago.. I live in a historic town where houses from 1800s are still habitable and in good condition.. one of my co workers just bought a house that was bult in 1835 and lets say I am in love with that.. we love old houses and plan to upgrade after moving in!
Re: First time home buying..
You guys we on the right track! PM me anytime hun, no need to ask!
On this topic Khatti, are their any options where we can be homeowners which do.not involve interest.
Islamic finance for the most part is not completely Islamic in our research. But we would like to explore possibilities if there are any.
Re: First time home buying..
^ We also explored options (including LaRiba) to me, they have just renamed "interest" as "rent" and rest of the things are same including year end "interested paid" receipt for Tax reasons.
We are now looking for any interest free product in Canada.
Re: First time home buying..
auto: check Devon Bank. they finance loan according to the fatwa fo Mufti Taqi Usmani.
Khatti: yeah, foreclosure house is good option. it is all matter of good bid because of many buyers.
Re: First time home buying..
Please plan you budget because there are many hidden cost of homeownership it is not limited to closing cost.
Re: First time home buying..
What if you live in an area with lots of old houses (100-200 years old), what to look for?
ghosts?
Re: First time home buying..
automne.. we are going with islamic financing.. Guidance Residential to be exact!
and yes many people will tell you it's the same.. just called differently etc etc.. and yes it may very well sound like conventional lending but it's approved by sharia and we are trying to be sharia compliance to the best of our knowledge.. Allah Taala knows best!
Re: First time home buying..
auto: check Devon Bank. they finance loan according to the fatwa fo Mufti Taqi Usmani.
Khatti: yeah, foreclosure house is good option. it is all matter of good bid because of many buyers.
Not all foreclosures are a "bidding" process. It's usually on like that with HUD homes, where you are doimg a closed online bid through the asset management company. I've only dealt with one "auction" in the last couple of years. Big lenders, especially HomePath are now going in and doing cosmetic changes like new flooring, paint and any repairs needed, as well as offering 2 yr res home warranties right off the bat, and the pricing it competitively to their defaulted homes so that they will sell fast, and those transactions work like any other sale.
Re: First time home buying..
On this topic Khatti, are their any options where we can be homeowners which do.not involve interest.
Islamic finance for the most part is not completely Islamic in our research. But we would like to explore possibilities if there are any.
What D6c and GTG said! Be diligent in your research! I helped a group of Muslims once...there were 4 families, all the men were on IT/Engineering....they each had been saving, but did not want to get loans...they formed a committee type deal where they each donates $50,000 to the "pot" for one family to buy a $200k house...a year later the next family bought...and so on until all 4 families were homeowners! It was quite interesting...and took alot of trust and courage on all parts, but it worked!
Re: First time home buying..
7) Real Estate Agents are bound to a Code of Ethics and are there to serve your needs, educate you and facilitate your transaction, not walk all over you! They only get paid when you sign the stack of papers at the closing table, so it would be stupid of any agent to "walk all over" their client. That being said, if you feel uncomfortable with your agent, or feel like your needs are not being met, be direct and up front, and let them know that it's best to part ways. Always follow everything up in writting!!! Email is your best friend!!
It depends on the agent though, just because there is a code of ethics does not mean everyone abides by it in the same manner, has the same level of expertise or you are as important to them as their other clients. This is why it is critical to find the right realtor, its the same as finding a good doctor or good accountant. The training may be similar, they may have to abide by same code of conduct and ethics, but it does not mean they are the same.
I have seen many cases where realtors want to close a deal quickly even if it is to the detriment of the client because they can go chase more business, or while $20K may mean a lot to you, 3% of that difference means little to them and they want to close and focus on new business.
so buyer beware, not just of the property but also the realtor....and lawyer and inspector. ask around.
What D6c and GTG said! Be diligent in your research! I helped a group of Muslims once…there were 4 families, all the men were on IT/Engineering…they each had been saving, but did not want to get loans…they formed a committee type deal where they each donates $50,000 to the “pot” for one family to buy a $200k house…a year later the next family bought…and so on until all 4 families were homeowners! It was quite interesting…and took alot of trust and courage on all parts, but it worked!
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Wow that is amazing. I have been a part of committees for a good 6 years back home and we really were able to afford big ticket stuff. I guess it is gonna take some time and settling to maybe do something of the sort.
Thanks sweetie
Re: First time home buying..
It depends on the agent though, just because there is a code of ethics does not mean everyone abides by it in the same manner, has the same level of expertise or you are as important to them as their other clients. This is why it is critical to find the right realtor, its the same as finding a good doctor or good accountant. The training may be similar, they may have to abide by same code of conduct and ethics, but it does not mean they are the same.
I have seen many cases where realtors want to close a deal quickly even if it is to the detriment of the client because they can go chase more business, or while $20K may mean a lot to you, 3% of that difference means little to them and they want to close and focus on new business.
so buyer beware, not just of the property but also the realtor....and lawyer and inspector. ask around.
Agreed, there are some very shady agents out there, and unfortunately, I have come across a few in dealings! I'd like think they are the minority, and not the norm though. As always...due dilligence is key!!! If something/someone is rubbing you the wrong way, go with your gut.
That is why I stress keeping a paper trail of everything!!! I always, always, always follow up my verbal conversations with an email or text...so that BOTH client and myself are protected!
[quote="automne77, post:27, topic:259272"]
On this topic Khatti, are their any options where we can be homeowners which do.not involve interest.
Islamic finance for the most part is not completely Islamic in our research. But we would like to explore possibilities if there are any.
What D6c and GTG said! Be diligent in your research! I helped a group of Muslims once...there were 4 families, all the men were on IT/Engineering....they each had been saving, but did not want to get loans...they formed a committee type deal where they each donates $50,000 to the "pot" for one family to buy a $200k house...a year later the next family bought...and so on until all 4 families were homeowners! It was quite interesting...and took alot of trust and courage on all parts, but it worked!
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I have heard about these among some families. It is awesome and fantastic as long as each member of the commuter holds up their bargain and there are no unforeseen circumstances like job loss, health related issues till each member is homeowners. The NEEYAT of all committee members should be fair and equitable. No one should cheat the other one. This is hard with unfortunate circumstances. I guess this a form is committee. Everyone needs to trustworthy.
Pick "smallest" house with best location you could Afford. I also don't BELEIVE in being house poor. Remember it doesn't matter what your friends and family think. They are not paying your mortgage. Buy a house with a good layout. Cosmetic flaws can be overlooked and are easily fixable especially if someone is handy. For example don't exclude a house because you don't like the paint colors in the room. This is a quick and inexpensive fix. Think with your head and not your heart.