House Hunting / Buying Help!

Well our house sold and we're in full contract and we need to find a new place to live! We are planning that this next home is our forever home.

We found 2 houses that we really love. Ironically, both are pretty similar (both colonials, 4 beds 2 1/2 baths, pool, FDR, FLR, large kitchen, basement, good size properties).

House #1 is $40K more than House #2 and at the top of our range. It's in a very good area with exceptional schools. The house has a large kitchen, which needs a total renovation (its very clean and functional so it will have to wait a couple of years). It does not have CAC, which is really one of our must-haves and the basement is not finished (something we would do down the line). Property is .43 acre with a pool in beautiful tree lined street area with houses just as nice and even nicer than this house. This house is closer to where my parents live and would be a slightly shorter (give or take 15-20 mins) commute to my job than house #2. Comps for homes in this area put this house price towards the middle-to high end of the spectrum.

House #2 is in a good area with good schools as well (but house #1 schools are ranked a little better). Has a newer kitchen w/granite and stainless steel and has CAC and a finished basement. Property is 1/2 acre with a pool on a cul-de-sac location. Some of the houses in the cul-de-sac are much smaller, but well kept. House price puts it on the high end for the area (based on comps).

So, what do we do? My parents and others have told that you buy in the best neighborhood possible and do the work when you can (Rome wasn't built in a day they say). They vote for House #1 even though it needs more work and is on the higher end of our budget. We can still afford it, but obviously renovations would have to wait. With House #2, its more move-in ready, but to buy a the high end for the area bothers me a bit.

Opinions, thoughts, suggestions?

Thanks!

Re: House Hunting / Buying Help!

I'd generally say if it's your forever home, buy in the better area. You'll have it for life, so you'll have plenty of time to fix it up. DH and I are in our starter home right now, and we were very lax with location. When we look for our forever home, location is going to a major priority.


However, are the towns very, very comparable? It sounds like they might be. If the other school district is say maybe only a rank or two better, I'd strongly consider house #2.

Re: House Hunting / Buying Help!

while i realize that you will have time to do improvements, do you really want to? my preference would probably be house #2 b/c id be more comfortable moving in from the start, without thinking of all the things i need to do to the place. but thats just me.

if #1 is your preference, why not put in a low bid for house #1 and see what they say....

House Hunting / Buying Help!

I'd go with house #1. The fact that #2 is at the higher end of the price range for the area would bother me. Also, it sounds like you are, in the long run, getting more for yourmoney with #1 (and a shorter commute is always a good thing)

Re: House Hunting / Buying Help!

It sounds like they are both good options, and if you plan to live in them long-term, the quote/unquote forever home approach, then it really probably comes down to your personal preference/gut instinct.

If you are concerned about the real estate investment aspect, number 1 seems like a better investment. If the schools/area are slightly better for house #1, and the house falls more in the average range for homes in the area (that has larger, more expensive homes), and you will be able to update/make improvements to house #1, then I think you can build more equity there.

Re: House Hunting / Buying Help!

It really depends on the neighborhood for me, so I'm not sure how the areas compare to each other.

House Hunting / Buying Help!

Based on this info I'd say #1 but having SD names would be helpful.

House Hunting / Buying Help!

House 1 would probably be the better investment, but I wouldn't want to pay $40k more for a house that needed more work. I would personally go with #2 because it sounds like it's all done and is a bigger property too.

House Hunting / Buying Help!

I understand why your parents say house #1 since it is in a slightly better SD.

But, you would be paying $40k more for house #1 and it will need a new kitchen, CAC and the basement will need to be finished. The kitchen, CAC and the basement may cost you close to $100k. I personally would go with house #2 as long as the school districts are comparable (which you indicated they are since you said SD #1 is "slightly" better).

Re: House Hunting / Buying Help!

Do you think you could make an offer for less than what they are asking for on the 1st house?

Re: House Hunting / Buying Help!

I would definitely go with house #1. There is more potential to build equity with this house than with #2. I wouldn't want to buy the nicest or biggest house in a neighborhood when the surrounding houses are considerably much smaller, which is the case with #2. Location is everything and something you can never ever change. With #1 you can do the renovations over time and make it your own, especially when it comes to a kitchen and basement. I see a lot more value in house #1. Good luck with your decision!

House Hunting / Buying Help!

Buy in the nicest area you can afford.