The first house the elementary, middle and high School are rated 2 out of 10. If that's the school rating in the nice parts of town I hate to see the bad
first home purchase, with fiancee
- Thread starter earlyre
- Start date
Coincidentally, I went to all (3) of those (well, the elementary I went to was demo'd and moved to the junior high building next door and the junior high moved but is still the same name). I assure you, those ratings are probably bogus. The city (proper) itself only has one school district, so yeah, there's a mix of kids, but academically, the opportunities are there (Advanced Placement courses in variety of subjects, etc).
You might want to look into gifting rules.
AFAIK: your Dad will have to file a separate tax form irs form 709 (but pay no tax)
and you will need paperwork "a gift letter" that the money is a gift and not a loan for your home mortgage lender
etc.
AFAIK: your Dad will have to file a separate tax form irs form 709 (but pay no tax)
and you will need paperwork "a gift letter" that the money is a gift and not a loan for your home mortgage lender
etc.
not every part of the country is as expensive as the Coasts...
My parents house is currently valued a little north of $300k, they paid $123k in '96. for 2k Sqft, on 1.5 acres in the country.
our long time neighbors moved a little over a year ago, new folks came from Cali. they couldn't believe how much house you could get around here for $300k.
my parents place would likely be well over a mill, if not closer to 2 if we were near either coast.
when my brother moved back here from DFW in 2016, he paid $114k cash for his house. over the last 10 years, it's "gained" another $100k in value...according to the internet...
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mortgage people mentioned that.
Get ahead of this - the mortgage company should have a form letter or template that your father can complete. I believe he also needs to provide account statements showing a balance pre-gift, then the withdrawal. You may have to do the same with your bank account.
They said it's better if after filling out the form, the money goes straight from his account to them. Bypassing me completely
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As a older guy now looking back the one advice I wish I had followed was buy a primary home young and sell that home every 2 years or so and move up to a larger home. No gain taxes, after 2 years ( ask your tax guy not me ) and stay away from new cars.
I knew a guy who did this, He never had a car payment and drove a old well over 150K mile Cadillac ( he said I don't do car payments I make house payments) Houses go up in value, cars go down... He lived in one of the most expensive houses in town flipping his primary home every 2 years before his retirement.
Do this and keep the credit card and car paymenys down ( bank wont lend money on that next home ) and flip every 2 years IMO the best way to build wealth and become rich, yes the market changes so you ride it out and then flip.
My 2 cents of what I did NOT do!
I knew a guy who did this, He never had a car payment and drove a old well over 150K mile Cadillac ( he said I don't do car payments I make house payments) Houses go up in value, cars go down... He lived in one of the most expensive houses in town flipping his primary home every 2 years before his retirement.
Do this and keep the credit card and car paymenys down ( bank wont lend money on that next home ) and flip every 2 years IMO the best way to build wealth and become rich, yes the market changes so you ride it out and then flip.
My 2 cents of what I did NOT do!
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The thought of moving every two years not that appealing
so we're moving through the process of buying this house, inspection done, lots of little maintenance issues ( i'm going to be doing a LOT of Caulking) only a couple things that stood out to me as legit safety concerns, and the sellers have agreed to fix those :
just looked up the County Auditors Data for the property, and it Really is a Small world....
it appears the parents of a former friend lived in this house from 2016-2023.
they bought it in Sept 2016 for $63k, and his Mom Sold it in Oct. 2023 for $105k. that buyer flipped it and Sold it to the Current Sellers in April 2023 for $193k.
now we're buying it for $212k.
- a 50 amp breaker feeding 10 gauge wire, which is only rated for 30amps max
- the main power line coming in is in contact with a Tree - realtor thinks "we" may be able to get AEP to trim it
- the water heater's relief valve doesn't have a drain pipe attached to it. so if it triggers, it'll just spray boiling water everywhere
just looked up the County Auditors Data for the property, and it Really is a Small world....
it appears the parents of a former friend lived in this house from 2016-2023.
they bought it in Sept 2016 for $63k, and his Mom Sold it in Oct. 2023 for $105k. that buyer flipped it and Sold it to the Current Sellers in April 2023 for $193k.
now we're buying it for $212k.
Yea...I'll pass
update: We Close on Tuesday (8/4), get possession 9am Sept 7th ( Labor Day )
Present owners gonna kick a month’s rent to you?
Reason possession is not transferring at the time of closing?
Will your attorney be holding escrow until they vacate?
According to the realtor, 30 days from closing is standard?
Originally, they weren't getting possession of their new house until mid September, therefore we wouldn't get possession until October...
In that deal we were "renting it back to them" for a month for $900 in closing costs.
That house fell through for them, they got another one with "immediate possession", so we're back to Sept.
Original proposed closing date was Aug. 7, but realtor moved it up 3 days.
Originally, they weren't getting possession of their new house until mid September, therefore we wouldn't get possession until October...
In that deal we were "renting it back to them" for a month for $900 in closing costs.
That house fell through for them, they got another one with "immediate possession", so we're back to Sept.
Original proposed closing date was Aug. 7, but realtor moved it up 3 days.
Why would someone have an attorney for a home purchase?
Well, typically when you buy a house, at closing, you’re the official new owner.
So now somebody else is living in your house.
If an attorney was handling this that person living in your house would have to put up escrow money that the attorney holds until the day they move out. Once they move out, typically you would go through the house and make sure it’s in the same condition as when you purchased it.
If it is you call your attorney say everything’s OK and they give the sellers the escrow money.
I don’t know what market you’re in but attorneys do not like their clients buying a house and not having the keys turned over to them on the day of the closing. And if it does take place, then your attorney would hold back some money from the closing in his escrow account until the day they get out of your house and you verify nothing has been damaged.
As of right now, you’re responsible for everything that takes place on that property because you own it. I’m sure this wouldn’t happen but don’t say it never happens. The reason attorneys don’t like this. What if they decide not to leave the house what if another house falls through.
Anyway, I’m just explaining at a closing keys are turned over and you go move into your new home.
Sometimes a hiccup in the system, and with the agreement of both parties that you don’t get the house, the day of closing some money from the sales priceis typically held back from the seller until you have possession of the house.
I don’t want to freak you out maybe that’s the way things are done where you live. I’m just telling you the customary and proper way of things are done.
Since you put a question with the attorney, I guess you did not hire one
@ClutchDisc
For the reason I explained above. It’s worth it to have an attorney when you’re purchasing probably one of the biggest items you ever make in your life. More so from a private party and a scenario like explained above.
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alarmguy,
You are 10000000% correct.
My oldest sister owns a law firm and most of her clients are real estate transactions. Worth every penny to avoid problems in the future.
*** EDIT ***
Proceed with caution if you do NOT use a lawyer in a big financial transaction with property deed, loan, taxes, any liens on property, etc….
You are 10000000% correct.
My oldest sister owns a law firm and most of her clients are real estate transactions. Worth every penny to avoid problems in the future.
*** EDIT ***
Proceed with caution if you do NOT use a lawyer in a big financial transaction with property deed, loan, taxes, any liens on property, etc….
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