Questions about buying a new home

[Dallas]

So I am in the market to get a new home. The homes here in Anchorage are pretty expensive, mainly because there just isn't anywhere to build single family homes within the city limits anymore. It's pretty much all built up and the zoning in the city is a JOKE.

The stickler is that I am trying to decide what to do. The home I really want is about 20k more than what I would like to spend. It's a gorgeous home w/ plenty of space for my son and I, probably too much but I am not moving anytime soon. It sits on a corner lot and faces the sunshine all day and has major upgrades throughout the home. The house also sits near the schools I want my son to attend.

It hasn't been on the market but a couple of weeks atm, and I would hate to miss out on it. I am just trying to decide if I want to spend the monthly payment it would cost me. I make pretty good money and after budgeting w/ utils and everything I expect from owning it plus all of my outgoing costs on other debt, it leaves me about 28% of my monthly take home left over for personal savings/w/e $$. Is that not enough? Would this be what they call "house poor"?

Another thing I am curious about is say I like the home and want to make an offer, what offer should I turn in w/o insulting the seller? I know you have to start somewhere, but I honestly don't know where to begin.

Where should I come in at if I wanted them to assist in closing costs and less asking price?

If you have any input, it would be appreciated.

Thanks guys/girls.

 

[67CowboysFan]

I have no idea about market conditions in your area but if it is 20k more than you feel comfortable spending, maybe you could start at 30k under the asking price. I wouldn't worry about insulting the seller. They upped the price to allow for negotiations.

 

[kimrose]

The best advice I can offer is to get yourself a good real estate agent you trust to represent you (the buyer) and your interest. This agent will tell you everything you need to know, guide you through your entire experience, help you find other houses you may be interested in besides this particular one (you should always shop around before choosing), go to bat for you, and fight for you with the seller's agent til the final closing.

Also, you need to get pre-approved through a mortgage loan office. Then you will know exactly what you can spend, the exact amount they will loan you, and if you can realistically live off of what is left from that amount monthly.

Get ready for a crazy roller coaster ride. It is exciting and nerve racking, there will be days everything goes great, and days when it seems it's never gonna happen. But when you finally get to closing day and the seller's agent puts those keys in your hand, you will breathe a huge sigh of relief and realize it was all worth it.

 

[Duane]

So net after house note, utilities, insurance, car note, retirement savings, groceries, etc... is 28%? If so that sounds pretty good to me.

One thing I can tell you from personal experience is if you're buying an older home expect to pay more in repairs than you think.

 

[CF74]

Ask your realtor (Or any realtor) to prepare you a CMA (Comparative market analysis.) It should be free. This will give you an average sales price for similar homes in the same subdivision. Make sure you are comparing apples with apples.

Ex: 3bd, 2ba, 2 car garage, 1 story, 2,200 Sq ft. .30 AC lot, North Ridge Subdivision.

The more the details are similar, the more accurate the pricing will be. It should be a buyers market right now not sure about Alaska though. They might be 10-20 K over pricing the home...

 

[kimrose]

Ask your realtor (Or any realtor) to prepare you a CMA (Comparative market analysis.) It should be free. This will give you an average sales price for similar homes in the same subdivision. Make sure you are comparing apples with apples.

Ex: 3bd, 2ba, 2 car garage, 1 story, 2,200 Sq ft. .30 AC lot, North Ridge Subdivision.

The more the details are similar, the more accurate the pricing will be. It should be a buyers market right now not sure about Alaska though. They might be 10-20 K over pricing the home...

When we bought our home, this came as part of the appraisal we had to get/pay for. We got pictures of the other houses, comparisons in descriptions, and prices.

 

[Dallas]

Great advice. I'm glad we have this Zone here. I will def be asking my realtor about a CMA today. Great idea and I never knew those existed.

Thank you all