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January 14, 2008
house buying process (for older home)
We are looking to by an old Victorian house. Being a first time buyer we are a bit confused as to what order to proceed in. The house we are looking at needs work (we plan to change existing floor plan, replace floors..roof...some electrical, maybe some plumbing, brick exterior...) So what do we do first? We have not made an offer yet but here are the people I need to get in there:
-Engineer to analyze structure
-Termite guy to check for termite damage
-Architect to give us an idea of what can be done
-Contractor
Am I missing anything serious? Can all this be done prior to the offer?
Comments
First thing you need to do is make an offer. Once it is accepted, then you will do your home inspection (many home inspectors are engineers so they will be able to flag any structural issues at the same time, and can also do a termite inspection). At the same time you are doing your inspection, your attorney will be reviewing the contract and you can make amendments to the contract based on any issues from the inspection. Once you have a final/signed contract, I would then start talking to an architect and contractor.
Posted by: guest at January 14, 2008 9:26 PM
Very sound advice, 9:26. The best advice I've heard all day on this site. Proper procedures, wow!
Posted by: guest at January 14, 2008 10:39 PM
So offer first? So if we bring the engineer in and he finds issues, or the termite guy finds issues, should the owner adjust the offer to the money we need to spend?
Posted by: nycityguy9 at January 15, 2008 8:15 AM
Definitely secure an accepted offer first -- you don't want to be shelling out $300+ for structural inspection and $150+ for termite inspection for every house you consider. Once you have the contract in hand, your lawyer will guide the rest of the process. He/she can help you negotiate the terms of the contract based on what you find in the inspection. Look for a lawyer with experience helping first-time buyers who are purchasing a house as opposed to coop/condo. A good lawyer will make all the difference in answering your questions, protecting your interests and guiding the process.
Posted by: gowanusaurus at January 15, 2008 9:06 AM
We bought a victorian a while back and made the offer contingent on the inspection. we found some plumbing problems and they lowered the price $5000. to make the problems go away. we tried to negotiate for asbestos abatement but the sellers said forget it and we forgot about it. These houses all have problems but in the end, we wanted the deal to go through. It felt ugly fighting for everything that was wrong with the house. At some point the seller might get annoyed with you and go with a lesser offer .
Posted by: Argyle Road at January 15, 2008 9:33 AM
That's right, if your inspection turns up issues, you will negotiate to have the price reduced or the seller remediate the problems. Keep in mind that, unlike in other states, the offer is not binding until you have signed the contract, which doesn't happen until you've had your inspection. Out of curiosity, which house are you looking at? My wife and I are also trying to find a Victorian (in Ditmas Park) but haven't been able to find anything yet that we like (and can afford!).
Posted by: guest at January 15, 2008 9:35 AM
Agree with all of the above. To follow up on the architect and contractor timeline, unless you're on an insanely tight schedule, you're wasting your time and money to bring them in before closing. It sounds like you have a rough idea of what you want to do, and they should be able to give very ballpark figures of what it might cost without even seeing the place, in order for you to make a realistic offer given your reno budget.
Posted by: guest at January 15, 2008 10:55 AM
Agree with above posts. When we bought, the offer is contingent on the inspection, so do not sign the contract until the inspection is complete and the terms have then been negotiated. We were able to negotiate down about 15K based on needing a new roof, but like above poster, gave up on some other things. We were probably pressured into that by the broker, so beware and stand firm, as this is a buyer's market. Remember, these are old houses, and we found a lot of surprises once we started renovations that would have been impossible for inspector to find. Good luck, and ask your lawyer a lot of questions, you're paying him/her to protect you!!
Posted by: guest at January 15, 2008 10:56 AM
We are looking at 7701 Ridge Blvd in Bay Ridge. We want to do a full/simi full restoration over time.
We also looked in Ditmas...many nice homes...we looked at 748 (or something) Westminister:
http://brownharrisstevens.com/detail.aspx?id=719448
Its nice...huge, needs some work though. Im just not too crazy about the area.
Posted by: nycityguy9 at January 15, 2008 11:55 AM
Also, the degree to which you will be able to get the price reduced for repairs needed is totally a function of whether it is a buyer's market for a particular house, and how badly the seller needs to sell. It's just a negotiation - there isn't anything that says you should get the house in good condition. So you will need to bargain hard.
Posted by: guest at January 15, 2008 12:43 PM
Unfortunatly, 7701 is owned ny an investor and I am quite sure he wont be willing to bargain much.
Posted by: nycityguy9 at January 15, 2008 1:05 PM
We just went into contract on a Ditmas victorian--and we insisted on getting the inspection before contract. Of course you can negotiate later in the process, once the contracts are signed. But with these old houses it's good to know what you're getting into ahead of time. Yes, they all have problems. But some have more problems than others--if there are structural issues, for instance, it will be hard to get a big enough price reduction to address them post-contract. But good luck.
Posted by: guest at January 15, 2008 1:59 PM
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