topic Re: House Hunting Question in Home

House Hunting Question

Bridgegal — Fri, 02 Apr 2021 02:03:49 GMT

We are house hunting and like most places there is very little on the market. So, we've met with one builder and talked to another one on the phone.

It is OK to follow the process with both until we get a price/bid and then decide on neither or one of them? If so, should we tell them we're getting another bid? We've never built a house and don't know how this part works.

We don't want to step on anyone's toes. Thanks

Re: House Hunting Question

LuvmyLab — Fri, 02 Apr 2021 02:06:32 GMT

I think it's perfectly fine to get two different quotes from different builders. You don't need to tell either one of them that you are getting more than one bid. You haven't finalized anything with either of them yet, so it's perfectly ok.

Re: House Hunting Question

Mistreatedbycs — Fri, 02 Apr 2021 02:35:07 GMT

It's not about the price, it's about the reputation, how reliable are they?

Check the BBB, check court cases if you can (some states offer a website that you can search by business), tour homes they have built, talk to current home owners, than worry about the price.

One may use 1/4" sheets of OSB and another might use 3/4" sheets of standard plywood so you will see a huge difference in cost just based on this. Also, it's wise to put into a contract a completion date with consequences or a builder has no incentive to finish the build.

You should get at least 2 quotes and the lowest is not always the best but you can learn from both of them. Now the fun starts....

The other option is to network, call people you know and ask if they know anybody that's possibly moving or even an elderly person who may need nursing home care. If you network, you possibly won't have to pay top dollar bidding against others. Good Luck.

Re: House Hunting Question

LonestarBabs — Fri, 02 Apr 2021 02:43:45 GMT

The cost of building materials has gone through the roof (no pun intended) AND some materials are in short supply. If you are building new be prepared for sticker shock due to increased materials costs and longer build times.

Prices of pre-owned homes are crazy, too. In many parts of the country there is simply little to no inventory.

New or pre-owned, be prepared for a wild ride right now.

Re: House Hunting Question

Snowpuppy — Fri, 02 Apr 2021 03:08:55 GMT

It is crazy out there, for sure.

You don't have to discuss intentions with anyone. You really are comparing apples to oranges. Lots in one location can demand so much more $ than a similar lot size in another area so look at price per sq ft and consider the finishes involved.

All builders have to build to code and pass inspection. What they build with is another matter. Materials like lumber and plywood are at all time highs.

I spoke with a realtor representing a builder and her attitude was take it or leave it, no negotiating and nearly no choice of finishes. Don't be surprised if you're asked for a pre-approval letter up front before they meet with you.

I do have some vacant acreage and some stock plans for myself that are sitting on a shelf. I'm thinking of moving forward.

Re: House Hunting Question

Desertdi — Fri, 02 Apr 2021 03:59:19 GMT

Real estate is a cyclical market. The same as the stock market. Right now, there is a "boom" all over the country. Next year, it could be the opposite........

Re: House Hunting Question

RedTop — Fri, 02 Apr 2021 04:03:43 GMT

I echo @LonestarBabs response regarding availability of building materials right now.

I am in WV, and know 3 couples who are in limbo with their new builds, because their contractors cannot get the materials needed to continue the jobs. All are in different stages of the building process, but only one house is under roof. All 3 couples are already nailed to the wall to complete these houses and are scared to death over all the obstacles with getting supplies, the much extended timelines, and the final costs.

Just this week, one of the couples had a relative in another state find most of a certain product they needed, and paid expenses for 3 friends with trucks, to make the trip with him to buy and haul that product back to WV, in order for the contractor to work next week.

No way would I be building a house right now!

Re: House Hunting Question

Bridgegal — Fri, 02 Apr 2021 04:42:05 GMT

Fortunately, we aren't looking at lots in a new development. We have found two that we would buy outright and then chose our builder not a development builder. That both simplifies and complicates things but that is what we are doing.

Re: House Hunting Question

Kachina624 — Fri, 02 Apr 2021 05:00:16 GMT

@Bridgegal I'm not looking to buy a house but I do like to look at houses for sale in my community. Right now they're going like hotcakes and usually sell within a couple of days.

I registered with Realtor.Com and get notifications within minutes of the houses being listed throughout the day. If I was seriously looking, I'd have my agent on standby to zoom over to look at new listings. Have you done this? I think you have to be very aggressive. There seem to be a lot of houses listed but they go fast. They say the price here is up 17% in the past year. We probably have more turnover here than you do in your location.

Re: House Hunting Question

Lilysmom1 — Fri, 02 Apr 2021 10:58:47 GMT

@Kachina624 , it is the same here. Bidding wars are common. Houses priced competitively to encourage bidding. Building supplies hard to get. We have people moving into the Province (low COVID rates a big attraction) and many are buying houses sight unseen except for video. A sellers market for sure. I would not want to be buying or building right now. S

Re: House Hunting Question

Desertdi — Fri, 02 Apr 2021 11:30:35 GMT

@Lilysmom1 @Kachina624 People are buying up "mid-century" ranch houses....with NO landscaping and NO garage.....for half a million bucks..........in the HOTTEST place on earth outside of Saudi Arabia. And $ a half-million is outrageous if you only live here during the winter.........it's cheaper to stay in a hotel(!!) di

Re: House Hunting Question

wagirl — Fri, 02 Apr 2021 14:32:34 GMT

Having sold my house in January, 2 days after is was listed, with 10 offers-- 3 of which were from one person and $140,000 above listing price----then thinking of trying to buy another one---has numbed my grey matter to buying another house for awhile----I live in western WA and it is a sellers dream right now----bought the land and then built on it in 1986 for just under $100,000. Makes me shake my head in amazement.

Re: House Hunting Question

queendiva — Fri, 02 Apr 2021 14:52:42 GMT

DS just had his offer on his first home accepted last week. I think the seller made another choice(s) earlier that may have fallen through.

He has found that you MUST offer above asking. I think his offer was 4th of 14. He is buying an end unit town home in suburban D.C.- another mad-$$$$ area. Turn-key condition. He found that in his $400K price range a single family home was not an option. Fixer-upper, no garage, not the best location, etc. Previous offers on similar homes went to cash buyers, As Is, to be used for rental income. Fortunately he is military, will be getting a VA loan and has a housing allowance. The home will actually be much larger than his apt. and the monthly mortgage payment will actually be lower than his rent on a 850 sf apt. Another reason I think his offer was chosen is that he is flexible on the move date. Closing is planned for the end of this month, but the buyer wants to rent back until June. Moving to AZ, where DS was previously stationed. I wonder if the sellers are building? I hope the rent-back deadline is not extended, as DS is going to be away on assignment for the summer.

I think waiting to buy is rarely a good plan. While inventory may eventually increase, so will prices. Nothing to indicate a bubble like 2007-8. Building new right now seems to be a gamble. Best not to be in a hurry.

OP: Good luck with your choices. I am so happy that I moved in 2018.And I thought inventory was limited then! It was, but nothing like today.

Re: House Hunting Question

software — Fri, 02 Apr 2021 16:38:21 GMT

Lumber is HIGH and interest rates are starting to creep up.

Finding a contractor will be the least of your worries.

Re: House Hunting Question

Kachina624 — Fri, 02 Apr 2021 21:27:20 GMT

@wagirl wrote:
Having sold my house in January, 2 days after is was listed, with 10 offers-- 3 of which were from one person and $140,000 above listing price----then thinking of trying to buy another one---has numbed my grey matter to buying another house for awhile----I live in western WA and it is a sellers dream right now----bought the land and then built on it in 1986 for just under $100,000. Makes me shake my head in amazement.

@wagirl You must have thought you died and went to heaven. Your timing was impeccable.

Re: House Hunting Question

Bridgegal — Fri, 02 Apr 2021 21:53:02 GMT

@Kachina624

Yes. I'm hooked up with Realtor.com and they send new listings as soon as they come on. Our realtor usually gets appt. within a couple of hours , if not sooner. No issues there.

Houses get multiple offers the first day. We haven't seen anything yet that we wanted to make an offer for but keep hoping. And then we'll probably get out bid. UGH.

Re: House Hunting Question

stevieb — Fri, 02 Apr 2021 23:50:40 GMT

@Bridgegal To my mind, a home, particularly building a home, is a huge undertaking and a very large investment. As long as you are above board and make no promises you don't intend to keep, I say you do what you need to do. Not to sound jaded but I'm not sure the same can be said of the builders so I wouldn't sign anything without being very clear what I was signing.

Re: House Hunting Question

wagirl — Sat, 03 Apr 2021 14:37:01 GMT

@Kachina624 ---yes I still can't wrap my brain around it---not anything outstanding about that house==just a box with smaller boxes in it--however--the hubs built on to the 3 car garage, a double bay garage--making it a 5 car garage with an attached house--for his cars--thats what did it.

Re: House Hunting Question

ccassaday — Sat, 03 Apr 2021 15:10:35 GMT

I think it is fine to get a bid from both. Some builders may not give you a detailed bid until you sign a contract though. We chose the builder my sister worked with do went through everything before signing. Including picking out furnishings ect. I don’t believe they would of done that without a signed contract normally. Just a general bid. The other builder we went too could only give us a estimation without a signed contract. What was nice about the builder we used is we had the exact cost and everything picked out before we signed the contract and building started since my sister worked there.