House Buying Budget Question

[BMCSean]

We got ours for $21k under asking price, new build but it was because the person who had it built had financing problems.

[BLK306]

I've heard you get the best deals when they first open a community and when they are trying to close it out. However, I never thought you would get those kind of deals.

[BMCSean]

I've heard you get the best deals when they first open a community and when they are trying to close it out. However, I never thought you would get those kind of deals.

They bent over backwards for us because they wanted the house out of inventory and our realtor knew the saleswoman. They covered all closing costs as well.

[mk5.0]

On a new construction home?

Yes !!!!!! Make an offer you can afford..

[slow99]

My mortgage/insurance/tax payment is 22% of our household monthly income after taxes, maxing out 401k, medical, all that shit.

One way I thought about it was how we'd look if I (highest earner) lost my job ... and then it happened. The way I set things up, my wife's income (with my unemployment chooo$$$ chooo$$$) is just short of covering all bills AND the same amount of discretionary spending we had monthly prior to my layoff. We're only cash flow negative by a couple hundred dollars a month - we could last a very long time or just crank a couple other levers and become cash flow positive.

Long post, sorry, but that's how I approached it.

[Country cracker]

DR Horton sucks hairy monkey asshole. That is who the new developer is in our neighborhood and I have never seen suck shitty building.

[BoostedD1]

DR Horton sucks hairy monkey asshole. That is who the new developer is in our neighborhood and I have never seen suck shitty building.

^^^^^^this^^^^^^

Puts you in mind of fox'n jacobs homes of the 70's.


No bueno.

[bcoop]

Edit: Also, houses are going for OVER asking out there right now in DFW in most cases, and it's been that way over a year. If you see something you better jump.

Really depends on the price range. My realtor says it's nowhere near as crazy on homes over $250,000.

[BLK306]

My mortgage/insurance/tax payment is 22% of our household monthly income after taxes, maxing out 401k, medical, all that shit.

One way I thought about it was how we'd look if I (highest earner) lost my job ... and then it happened. The way I set things up, my wife's income (with my unemployment chooo$$$ chooo$$$) is just short of covering all bills AND the same amount of discretionary spending we had monthly prior to my layoff. We're only cash flow negative by a couple hundred dollars a month - we could last a very long time or just crank a couple other levers and become cash flow positive.

Long post, sorry, but that's how I approached it.

Well we are a single income family so it does not matter how cheap the house is if I loose my job. We would be screwed unless my little side hustle could pull it off.

[BLK306]

DR Horton sucks hairy monkey asshole. That is who the new developer is in our neighborhood and I have never seen suck shitty building.

Based on what? I'm not saying you are wrong I just want to know why you have this opinion. Truthfully could you not say the same thing about most builders under certain price points?

[slow99]

Really depends on the price range. My realtor says it's nowhere near as crazy on homes over $250,000.

Houses in my neighborhood are and have been for a while.

[SVT Lurch]

It's not the perfect house because it doesn't fit the budget.

If you don't have to move now, don't - especially if it's a new build and they're about to build 20 more like it in the same neighborhood.

Make sure your budget is in line with the lender's (unless you're a DFWM baller and paying cash).

There are horror stories about every builder from starter homes up to custom $1MM+ homes. Nobody is perfect all the time.

New home prices can be negotiable, but it depends on the builder's situation.

If you're a single income household and newly debt free, spend some time building up your reserves.

The general market is not nearly as hot as it was last year, but it's still considered a seller's market. How quickly they go and how much (if any) over list price is entirely dependent on the neighborhood/area.

Well we are a single income family so it does not matter how cheap the house is if I loose my job. We would be screwed unless my little side hustle could pull it off.

Might want to double check the numbers before you make the jump. It's one thing to get into home ownership to build equity, get the deduction, etc. but if you're just looking to move up it does not sound like the numbers are in your favor at the moment based on this thread.

[BLK306]

It's not the perfect house because it doesn't fit the budget.

If you don't have to move now, don't - especially if it's a new build and they're about to build 20 more like it in the same neighborhood.

Make sure your budget is in line with the lender's (unless you're a DFWM baller and paying cash).

There are horror stories about every builder from starter homes up to custom $1MM+ homes. Nobody is perfect all the time.

New home prices can be negotiable, but it depends on the builder's situation.

If you're a single income household and newly debt free, spend some time building up your reserves.

The general market is not nearly as hot as it was last year, but it's still considered a seller's market. How quickly they go and how much (if any) over list price is entirely dependent on the neighborhood/area.


Might want to double check the numbers before you make the jump. It's one thing to get into home ownership to build equity, get the deduction, etc. but if you're just looking to move up it does not sound like the numbers are in your favor at the moment based on this thread.

As much as I may hate to admit it you make a good point. Taking some time to build up a reserve would be a smart move. I guess now that I had decided we were ready to buy I was all of a sudden worried about interest rates going up. They have been saying they are at historic lows for years now. While they are going up I guess waiting a little longer would not be a terrible decision.

[Roscoe]

I wouldn't make that jump without reserves, so as said earlier, make sure you have a fallback.

On another note, offer 20% under asking for a new home build and stick to it. Hell, get a realtor for it. Seriously.