not approved for mortgage but found dream house?

Quote from matthewmon : ^yeah I agree. I would probably try to get the tax value lowered after I moved in too. Zillow does show what the houses around it have sold for and the cheapest one on the entire street sold for 168k with well over 50% of the houses on the street sold last for $200k or more.

I would recommend to go with full price. You will not get it for under 150k You said that this house needs some upgrades, but it is your opinion. Trust me bank does not care. Been there .
If you think it is your dream house go with full price. But if you try to get good deal go with 150k and see what happen.

Quote from 1stbuy : Calm yourself. We all know you live in a glorified shoebox. childish ad hominem....your typical MO This house seems great, and I hope OP finds their dream home, whether its this or some other place. there's no doubt that he'll find the home of his dreams with a $160k budget.

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Quote from financechick : ......

You don't say?

Please do troll tell us some more.

Quote from financechick : ........

So your pretty much addmiting to be a racist on a public forum?

Wow i hope you get banned.

Quote from tomekolodziej : I would recommend to go with full price. You will not get it for under 150k You said that this house needs some upgrades, but it is your opinion. Trust me bank does not care. Been there . If you think it is your dream house go with full price. But if you try to get good deal go with 150k and see what happen.

I'm really torn on this one. I can see OP is very excited and really wants the house but we are talking about 10K.

OP, it's really up to you and how you feel about it. If it's your dream place at a price you are comfortable with, I might consider the full price. You could always knock off a grand or two - ask for closing costs, home warranty, etc.

Right now it tends to be a buyer's market. However if it's a desirable area for a great price, you may want to offer close to (or even at) full price - contingent on passing inspection.

Good luck! Let us know how it works out.

Quote from nizzy1115 : So your pretty much addmiting to be a racist on a public forum? Wow i hope you get banned.

at what point did I say, "don't buy that house because the city is about 40% african?"

I simply drew attention to some facts that the OP had possibly overlooked. At no point did I take a hardline on anything.

If your are trying to skip having a realtor you are insane. Its not you that saves money its sellers realtor that doesnt have to share their commision on the selling price. Oh and make sure you pay for a home inspection, preferably with someone who is a structural engineer, also you will need money and get sewer inspection and roof. If you dont have the money for these then you shouldnt even look at buying property.

sorry i didn't reply back sooner but I'm working a minimum of 77 hours a week right now and didn't have internet at work last night....

saw the house and it would need way too much work inside. its only 11 years old but is pretty beat up inside and outdated. almost nothing in it looked like new condition and we found a ton of negatives like the shower wasn't big enough (i'm 6'5"), kitchen floor was uneven, ceiling leaks, etc. the contractor that builds the houses in the neighborhood has a bad reputation for poor quality houses. i would prefer to buy a house built in the last 5 years or so....even though not new it will feel like new if it was built well and taken care of.

i'm still super glad i saw it online because it sparked my interest enough to make me go get prequalified. the mortgage loan officer says even if i don't buy for another 9months or a year from now my credit will have recovered plus my score was so high that I didn't need to be as concerned with it as I thought. shopping for a first home is exciting so elongating the process is cool. I am in no rush so will wait for the right one. it has got me thinking more about what i want in a home.....once i decide on the criteria i want in a home a little more I want to get a buyers agent. the agent that was selling the home we looked at was very likeable and knowledgeable and I may choose him to be my buyer's agent. even though it was his listing he was never pushy in trying to sell it and pretty much agreed that the house had a lot of flaws and needed a lot of work. who knows when a house may get listed that is the right one for me and soon i will be ready to pounce. December is usually when house prices are lowest so hopefully there will be a few houses I really like and I can low ball using a max I'm willing to spend of $180k or so or maybe a foreclosure will come along at a great price. i'm going to narrow down the neighborhoods I like which I think will only be a very few. i'm only looking in about a 5 mile radius in Winterville NC to be close to my parents and workplace plus it has lower property taxes than living in the city of Greenville.

I may come back here to ask questions from time to time and will definitely give an update once a home has been bought, thanks!

Quote from matthewmon : December is usually when house prices are lowest so hopefully there will be a few houses I really like and I can low ball using a max I'm willing to spend of $180k or so or maybe a foreclosure will come along at a great price.

Keep in mind that there's not much inventory in December so there won't be much to choose from.

Quote from gammann : This is usually a bad idea. The seller's agent is working on behalf of the seller, and has no obligation to you. Since you are already emotionally attached to this house, you may not think straight when it comes to the actual shape of the house. Your own buyer's agent will help you determine if the price is comparable to others, as well as make sure you are getting a fair deal. Which ever way you go, do not skip on the home inspection. Why are they selling it below tax value? I think in most areas, tax value is less than actual value, but maybe not the case in this area. Is there something wrong with it, that maybe warrants the cheap price? Or are the sellers in a position where they need/want to sell fast (moving, divorce, etc)?

Tax valve has nothing to do with market value. Different agency for different reasons. My county house house a sign that says specifically "Tax assessed value is not market value."

Quote from saladdin : Tax valve has nothing to do with market value. Different agency for different reasons. My county house house a sign that says specifically "Tax assessed value is not market value."

Agreed. I didn't say it was market value. What I was saying is that in most places, I would think tax value is under market value. Why would people pay taxes on a value much higher than their actual value? Therefore, listing for quite a bit less than tax value, would be pretty low.

The OP actually answered my question after going an looking at the house.

ok so now i have really found my dream house and after seeing it twice now I have made an offer.

house tax value listed as 192k for 2012.....went on market 5 days ago i called and saw it the second day on market. listed at $182k w/ a 2k carpeting/upgrade allowance. seller bought it at a auction a little over a year ago for only 147k. several things need fixing and it needs a lot of cleaning because it was occupied by smokers and they had dogs but when fixed and totally clean it will be an awesome house. the day the seller got the house she lost her job....the seller's real estate agent told my mom this info. the real estate agent is the seller's best friend. the seller didn't have the money to fix the house and has now relocated for a job. the pool needs major work they are putting in a new liner. sounds like the seller is strapped for cash. as an example the house hasn't even been pressure washed so the sides that have vinyl siding are dirty and the mailbox is leaning over and needs replacing --- the seller didnt have money to fix the house up like she planned on when she got it at a steal at the auction.

the house probably needs almost 10k worth of work (will have a better idea of the exact cost after the home and pool inspections) considering fixing up the pool and replacing carpets and bathroom countertop and some other things. its good enough that we could wait and don't have to fix everything at once.

I offered 165k today. i do not have a buyers agent yet. i'm trying to use not having to give another agent some commission to my advantage and trying to get the house for a low as possible while at the same time not losing it to another buyer. if my bid isn't accepted or i run into problems i will get a buyers agent.

after i verbally gave my offer after i saw the house for the second time today i told the agent that we are first time homebuyers that can only afford 165k (after inspection i hope to lower the offer some) and told her to push the seller to take it. i gave her the prequalification paperwork i had which just so happened to be based on buying a 165k house so it looks like that is all we can afford i guess (first house we looked at and reason we got prequalified was 165k so that is why the loan officer put it on the prequalification) which is probably good i guess. we actually have a 50k down payment and are approved for 132k mortgage. the agent said something like "well let it sit on the market for 30 days and the seller may bite" then she got my phone number again and we all drove away.

they are doing a new pool liner on tuesday next week and i guess we will have no say in it she said the seller will probably just get a regular blue one.

i wonder since it seems the seller is strapped for cash if it would work if we said we will pay 158k or so and we will pay for fixing the pool and everything in the house and replacing the carpets etc. and we will pay all closing costs.....plus we have no agent to give commission to (so no money is coming out of sellers pocket) ---- if they would bite on that?

what do you guys think?????

Quote from matthewmon : ok so now i have really found my dream house and after seeing it twice now I have made an offer. house tax value listed as 192k for 2012.....went on market 5 days ago i called and saw it the second day on market. listed at $182k w/ a 2k carpeting/upgrade allowance. seller bought it at a auction a little over a year ago for only 147k. several things need fixing and it needs a lot of cleaning because it was occupied by smokers and they had dogs but when fixed and totally clean it will be an awesome house. the day the seller got the house she lost her job....the seller's real estate agent told my mom this info. the real estate agent is the seller's best friend. the seller didn't have the money to fix the house and has now relocated for a job. the pool needs major work they are putting in a new liner. sounds like the seller is strapped for cash. as an example the house hasn't even been pressure washed so the sides that have vinyl siding are dirty and the mailbox is leaning over and needs replacing --- the seller didnt have money to fix the house up like she planned on when she got it at a steal at the auction. the house probably needs almost 10k worth of work (will have a better idea of the exact cost after the home and pool inspections) considering fixing up the pool and replacing carpets and bathroom countertop and some other things. its good enough that we could wait and don't have to fix everything at once. I offered 165k today. i do not have a buyers agent yet. i'm trying to use not having to give another agent some commission to my advantage and trying to get the house for a low as possible while at the same time not losing it to another buyer. if my bid isn't accepted or i run into problems i will get a buyers agent. after i verbally gave my offer after i saw the house for the second time today i told the agent that we are first time homebuyers that can only afford 165k (after inspection i hope to lower the offer some) and told her to push the seller to take it. i gave her the prequalification paperwork i had which just so happened to be based on buying a 165k house so it looks like that is all we can afford i guess (first house we looked at and reason we got prequalified was 165k so that is why the loan officer put it on the prequalification) which is probably good i guess. we actually have a 50k down payment and are approved for 132k mortgage. the agent said something like "well let it sit on the market for 30 days and the seller may bite" then she got my phone number again and we all drove away. they are doing a new pool liner on tuesday next week and i guess we will have no say in it she said the seller will probably just get a regular blue one. i wonder since it seems the seller is strapped for cash if it would work if we said we will pay 158k or so and we will pay for fixing the pool and everything in the house and replacing the carpets etc. and we will pay all closing costs.....plus we have no agent to give commission to (so no money is coming out of sellers pocket) ---- if they would bite on that? what do you guys think?????

if i havent heard back by monday or tuesday i should call to try to work something out so i can help pick out a pool liner i like? if i havent heard back by friday go ahead and get a buyers agent? thanks for any help!!

It won't save you any money if you do not get yourself an agent. The commission which is usually 6%, will now all go to the SELLER's agent instead of being split up 3% 3%. Additionally, it sounds like you were showed the house by the seller's agent? If so, for that house, he/she is now your agent, and even if you find a new agent and purchase that house, your new agent won't get any commission.

If you don't hear back within 3 days, I would call and rescind the offer, the offer is valid until you say so. In regards to the pool liner, It sounds like its too late and already scheduled. The asking price of the house includes that liner.