A Good Buy?

**brian.wolfe86** · 06-17-2009, 09:02 AM

Hi,

My fiancee and I are first-time homebuyers and we were hoping to get some advice on whether this community we're looking at building a home in is a good idea or not.

Here are some of the particulars about us:

-Our total monthly income is ~2600 after taxes

-We have no current debt other than my student loans (which I will not have to begin repaying until November at a rate of ~180 month)

-We are looking to close before December 1st (to take advantage of the $8k tax credit)

-After approximating finances, we will have ~14-15k to bring to the table when we close in November (including the tax credit...we have an arrangement with a friend to use it as part of our down payment)

Now, for some details about the house we're looking at:

-Located in the neighborhood of Waterleaf Dr in Avon, Indiana

-Here are the basics on the house:

-1725 sq. ft.

-3 BR/2 Bath

-Builder: Arbor Homes

-Lot size ~10500 sq. ft.

-Sod in the front/side, hydroseeding in the back

-Backs up to an open field (3-5 years, will be another set of houses from the same builder)

Options selected:
-Brick front
-Wood-burning fireplace (family-room)
-Garden tub and deluxe walk-in shower in master bath (increases total length of house by 2 ft.)
-Dual sinks in master bath
-Upgraded maple cabinets
-Vaulted 9ft. ceilings
-10' x 12' concrete patio in back
-Wiring drops for fans/lights in each BR
-Window grills all around the house
-Built-in microwave
-Smooth walls
-(No bonus room)

-Price with options: $140,000

Now, for my questions...

-All things considered, is this a good buy? (Please, ask questions if more detail is needed to make this a determination)

-Is Avon a good place to be buying a house? I've been looking at stats on it and it seems like a nice town, but I'm not sure...6k people isn't very large.

-We are planning on putting a 6 ft privacy fence around our backyard...when we move in 6-7 years and there are neighbors behind us, will this be enough privacy to still keep them interested in buying?

Any other questions I should be asking?

Thanks a lot,

Brian

EDIT: Also, this neighborhood is within 2-3 miles of a train station as well as Indianapolis International Airport...should I be concerned about noise from either of these?

**markbrian** · 06-17-2009, 12:33 PM

You need to speak with a Realtor that is in the area you are considering. Real estate is highly local and the home you described might be worth much more or much less depending on where the person answering your questions is from.

What kind of arrangement do you have with a friend regarding the tax credit being used as part of your downpayment?

**brian.wolfe86** · 06-17-2009, 12:38 PM

Yes, but I was hoping to find someone on here who was from the area and could tell me. I wanted to avoid fees if at all possible.

And the arrangement I have is a short-term loan...why?

**markbrian** · 06-17-2009, 12:47 PM

The money you are trying to save by not having professional representation may end up costing you much more.

As far as the short term loan, some people think the tax credit is some kind of coupon that automatically takes $8000 off the price of a home. Just wanted to make sure that was not the case.

**brian.wolfe86** · 06-17-2009, 12:53 PM

Good point on the realtor...do you have any idea on what kind of consultation fee he/she might charge?

And yeah, we got very lucky with a friend who was willing to help us out for a few months until we get our tax check

**markbrian** · 06-17-2009, 01:03 PM

If the home is listed on the MLS the commission is already set. It is best you talk with an agent locally. Ask friends & co-workers for recommendations of agents they have personally used.

**brian.wolfe86** · 06-17-2009, 01:07 PM

Could it be listed on MLS if it hasn't been built yet?

**markbrian** · 06-17-2009, 01:22 PM

Yes on my MLS but again you need to talk with a local Realtor.

**craig** · 06-17-2009, 06:09 PM

I would have said to definitely use an agent in your area before you start looking at homes but it sounds like you have already visited the builder and most likely in this case the builder will not honor paying an agent since they didn't accompany you on the first visit there. Builders will offer a commission to agents that bring buyers to them (not always though).
Your agent would have been able to help you in many aspects of the sale and answer questions to help you in your best interest.
You could still hire an agent to help you but now you may need to pay them out of your own pockets.