First time home buying advice

[ozzy702]

At least to me it would make more sense to look farther out of the city.

Buy the 1200ft home and have half the payment...

I know in the valley its probably slim pickins.

As you all know the market is wrecked right now.....

If you could stand the commute to Tooele County there are currently some added benifits.

Living much more than 15 minutes from work is definite no go for the wife and less desirable for me as well. Factor in wear and tear on the vehicles and gas prices from a financial standpoint and it doesn't really make it all that desirable. Oh, and I hate commuting, my commute in CA was a MINIMUM of 45 minutes each way and sometime as long as two hours each way if there was an accident, no thank you. If both the wife and I commuted from Tooele we'd be looking at $6000 a year for commuting related gas expenses, not to mention wear and tear on the vehicles. For comparison we spend less than $1000 a year right now for commuting related gas expenses (I walk, ride my bike or car pool to work and she works fairly close to home).

If there was housing fairly close to work (Riverton is the closest that's even slightly less expensive) that was affordable I'd consider it in a second but at least right now there are no 100k to 145k homes available within thirty minute commute or shorter (that aren't short sales) and that's what it would take to offset the gas and wear and tear on cars, let alone the cost of time wasted sitting in a car. As mentioned I may be attending school this winter and the wife will be headed back to school at some point in the next ten years as well which impacts our choice of housing.

For better or for worse the Sandy area is looking like were we'll be living...













When it comes down to it I have very little say in WHERE we will live but get to pick what kind of house we will live in and figure out the finances... that's just the cards the boss has dealt me... and she's always right... always.

I really appreciate all the advice and different view points on things because it keeps me thinking and looking at our options. I tried talking with my wife about living in Riverton today and it was not pleasant...

 

[skippy]

I commute from tooele to salt lake everyday it takes 30 minutes to get to work and spend about 40 dollars a week in gas and about 225 bucks a year on tires I purchased the car for super cheap. It's beat Honda civic but the mileage is sweet and it allows me to leave the dodge 3500 parked and the JK sitting in the driveway. But on the other hand you couldn't pay me to live in the salt lake valley.

 

[ozzy702]

I commute from tooele to salt lake everyday it takes 30 minutes to get to work and spend about 40 dollars a week in gas and about 225 bucks a year on tires I purchased the car for super cheap. It's beat Honda civic but the mileage is sweet and it allows me to leave the dodge 3500 parked and the JK sitting in the driveway. But on the other hand you couldn't pay me to live in the salt lake valley.

I'd drive a budget commuter too but I work in south sandy and the wife works in Cottonwood Heights so quite a bit more distance, plus the wife would either be driving her cherokee or a minivan. The $6000 a year was pretty conservative for us to both commute, even you spend over $2000 annually driving a civic. The other thing I've considered with long distant commutes is the long term instability pertaining to gasoline prices. For all I know we'll be paying $10 a gallon in a decade.

Plus my wife would never consider living in Tooele so it's not an option. If I were a single guy I'd consider it for sure, then I could have a decent amount of land to build a kick ass shop. That would most certainly offset my disdain for long commutes.

 

[Caleb]

Plus my wife would never consider living in Tooele so it's not an option.

Smart Woman I can't stand Tooele. See my posts here and here if you want to know how I feel about Tooele. (No offense intended to those that live out there, just one person's opinion )

 

[ozzy702]

I really should have bought a house despite having a much lower income than I do now... the cost of living has gone fully insane.

 

[ozzy702]

You're right. I think the situation between late 2008 and 2012 was a once in a lifetime opportunity for buyers, primarily first time buyers. But I don't think it's going to continue that way it is, forever. I doubt well see a bubble burst or drastic interest rate hikes but there's going to be times considered down, when the market isn't as nuts as this. If it were me, I'd keep saving and casually keep an eye open for something you like.

That's what we are doing now. Up until recently we've had dirt cheap rent in a fairly run down 4 bedroom duplex. We put up with the condition of the duplex because rent was reasonable but last year our landlord bumped our rent $125 and today bumped it $250. I'm pissed off enough that I'm considering paying significantly more just to 1) give him the finger (he's 70yo and does all his own work and is dirt slow, it will be several months before he has renters in here) and 2) so that we have a working dishwasher (drives my wife nuts), reasonably sized refrigerator (ours is tiny with no room to go bigger) and and more room for our growing family.

I'd love to buy but home prices are so insane right now that even making ~ 70k a year myself I'm not in a position to buy in the area(s) we want to live. Unfortunately we're down to just my income and will probably be in that situation for another five years so unless the market softens we'll be renting... at the same cost as buying...

 

[Tonkaman]

Just be sure to secure a place BEFORE giving that guy the finger. The rental market has been a real pain the last few years. Most good listing are taken within hours of being posted and are going for top dollar

 

[ID Bronco]

Be patient when buying. It sounds like you have been, but it will pay off later.

 

[jeeper]

Buy in the winter months.

 

[smartass_kid]

sucks that you're having bad luck, i assume the house/location/bedrooms is likely the most popular that everyone else is looking for too.

 

[ozzy702]

sucks that you're having bad luck, i assume the house/location/bedrooms is likely the most popular that everyone else is looking for too.

We're looking for the following: 2000+ sq/ft, 4+ bedrooms, 2+ bathrooms, 2 or 3 car garage (or shop), in decent shape (with 1,3, and 4 year olds I don't have time to do a ton of home repairs), either in Sandy east of 700e, possible Cottonwood heights, and I'm even considering Riverton or South Jordan, although the price would have to be great. We are in the mountains at least once a week as a family and I'm either mnt biking or hiking 2+ days a week early morning before work so the closer to the mnts the better.

It's looking like the above is about 375-400k which is simply out of our price range. I really wish my wife were working but she has her hands full with the kids and her sanity (is that possible?) and the kids's wellbeing is more important right now than the money. In the meantime we're trying to save money, I have a few irons in the fire, I do as much side work as possible, my wife is starting to do photography that pays (very little but who knows in time) and we do have decent credit (I'm well above 800 and my wife is over 720) so hopefully when the time is right we can get out of the renting game.


PS, how are you guys doing? It's been ages!

 

[smartass_kid]

that is alot t o be looking for lol. you should check out midvale, that's where we ended up, you can be east of state street vs 700 east and older homes have some character that you might enjoy.
we looked for something in SLC city limits for about 6 months (wells fargo comm. investment= free money) but it didn't work out so we started looking east of I15. our house is smaller than we first considered but i didn't want too big and it's an older brick home.
it's only been about 2 years since we bought but value has gone up nicely.

same old stuff, i changed companies after we closed on our house (not a coincidence), no new kids and of course gone through a few vehicles but content with my ram

 

[Pike2350]

What budget are you looking at for something like that? I think the killer is going to be all the requirements. I bet if you went below the 2000 sq ft mark, you'd find more. I saw a nice house in Cottonwood Heights/Midvale/Sandy area sub 300K, but it was only about 1700 sq ft. It haad a redone kitchen and bath. https://www.utahrealestate.com/1450631

 

[ozzy702]

What budget are you looking at for something like that? I think the killer is going to be all the requirements. I bet if you went below the 2000 sq ft mark, you'd find more. I saw a nice house in Cottonwood Heights/Midvale/Sandy area sub 300K, but it was only about 1700 sq ft. It haad a redone kitchen and bath. https://www.utahrealestate.com/1450631

Our current duplex is ~ 1700 sq ft, 4 bedroom and has a smallish two car garage. We're bursting at the seams. If we had all boys or all girls it wouldn't be so bad since we'd just throw all the kids in one room. I really don't want to go smaller than 2000sq ft even if that means postponing a purchase. My wife and I both despise moving and have too much stuff to make moving frequently something we want to do.

 

[jeepin4x4james]

Just sold my house in Riverton (closed Thurs) with 5bd, 4ba, 2 car attached and a detached 18x25 shop, 3100sqft... sold in a few days at $350k... keep looking and I'm sure you'll find what you're looking for, just jump on it when you do.

 

[ozzy702]

Wow, James, that's pretty inexpensive, comparatively. My neighbor's home just sold (new folks moving in today) 3 small bedrooms, 1.5 ba, 1250sq ft, with a single car garage - detached, built in 1900 but updated electrical and new roof on .33 acre, same price - $350. Their realtor was pushing for less $339,900 but they asked for more and it was on the market 3 weeks. In the 3rd week they got multiple offers over their asking. However, they conceded $2500 when the inspection found a broken rafter.

Talking with two people in my office and my neighbors over the last few months, two of the listing agents pushed them to ask for less so they'd sell faster. The other of the guys was offered $2500 not to list it and just sell it to the folks the agent knew. They listed and got 5k over the offer as well as 50% of the closing costs.

I was working in the yard during one of my neighbor's open house showings and the agent came over to chat. She said she made 88 grand last month and it could've been more if she could get her sellers to list the houses "right" because some of them (pointing back at the neighbor's house) are still hanging around on the market. I couldn't help but think "isn't part of her job to get the most she can?" I'm glad they asked a little more. Three weeks on the market and they made 10k more.

A real estate agent is not your friend in a market like this. They want the quick sale.

- - - Updated - - -

Just sold my house in Riverton (closed Thurs) with 5bd, 4ba, 2 car attached and a detached 18x25 shop, 3100sqft... sold in a few days at $350k... keep looking and I'm sure you'll find what you're looking for, just jump on it when you do.

Wow.... I would have jumped on something like that. It's at the upper range of what we could qualify for but that sounds pretty great.

 

[Greg]

We're looking for the following: 2000+ sq/ft, 4+ bedrooms, 2+ bathrooms, 2 or 3 car garage (or shop), in decent shape .....

We're renting/listing our home, 4 bed, 2 bath, 2000 sq/ft, 3 car garage, vaulted ceilings, central air, etc, etc. $1500/mo rent or $275k.

But it's in Fruita, Colorado....

 

[UNSTUCK]

Shoot, we're thinking about selling our house now since we can get WAY MORE than it's worth, then renting for a year or two as we wait patiently for the market to crash again (it will). We'll then buy our dream house probably for less than we sold our current house for.
I know that a lot of time renting is looked down upon, but it can also be a good investment strategy. There is no way I'd come off of renting right now only to purchase a home that is seriously way over valued. I look around at my house and just think, these can't be selling for this price!

 

[Caleb]

I've seen the same thing said in several places. The market is over-valued and will likely come down some but it likely won't bust like the last time.

 

[ozzy702]

I've seen the same thing said in several places. The market is over-valued and will likely come down some but it likely won't bust like the last time.

I fully believe that. I really think Utah has the "bay area effect" in full swing right now. Home prices are probably 10-20% over-valued right now but even with an economic crash I just don't see them dropping like they did in 08'.

We could go buy right now, but it would be far less house than we want and not in an area we'd want to stay in long term, so for now we save and exercise patience (not my strong suit).