I am buying a 1BD condo! What to expect in the next 30 days?

Dear FW Real Estate Gurus:

I am buying a 1BD condo (720sqft) Boston area -- directly from the builder -- for $141K (with a possible $5K downpayment assistance -- a 0% loan). I am so excited! The place has an underground garage, hardwood floors, granite countertops, and high-end stainless steel appliances. The unit was offered via a "first time homebuyer" program sponsored by MASS Housing, so I couldn't use a traditional realtor. The program is providing me a real estate lawyer (to prepare an offer template for a nominal fee) and a home inspector (though I am not worried since it is a new property). Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.

Please correct me if I am wrong but here is my understanding on what is going to happen: 1. Lawyer prepares the offer letter, saying that I'll buy the place for 141K if the house passes the home inspection. 2. Home inspector comes and checks the house. Let's assume it is good. 3. The bank I got pre-approved from (I am pre-approved for 4.25% 30-year fixed) probably asks me more documentation and makes this official. 4. On a certain date, I sit down with the builder representative, with my 141K check I got from my bank and sign the purchase agreement. they hand me the keys.

After the purchase, do you recommend that a) I amend this year's tax returns for the $8K first-time homebuyer tax credit now or b) that I wait until January 2010 to do that with the next year's return. Advantages/Disadvantages?

Anything else I should know in general? Any suggestions? I am really excited...

bostonian123 said: Since this is rather non-traditional way of buying a unit, I thought I'd ask what to expect in the next 30 days.

You can expect to be cramped like sardines in a small living space paying HOA fees and possibly stuck there asking yourself "WTF was I thinking?" as real estate continues to lose value.

hah 720 square feet, tiny?
Bigger than my studio apartment in NY, I feel like my 600 square feet is plenty of room, depends on what you are used to.

congratulations on buying a place.

Your going to have a tough time selling in the future

The difference is this isn't in NYC. This isn't even in Boston. This is ~30 minutes away from Boston with no traffic, 1:00 hour to 1:30 with traffic, in a town that people live in just to get some space to spread out.

Do you work in Natick? Do you live there currently? You have some serious questions to ask yourself before you buy a condo based on its proximity to an upscale mall

What amazes me is he specifically mentions the tax credit, as if that was a motivating reason for the purchase. I've always thought it was a great deal to spend $1 to save 30 cents. Looking at the tax advantages of buying a home is like eating a donut for its nutritional value.

Congrads! I don't know if the other people who replied earlier knows the Boston market. I actually live in NATICK and think you did well on your condo. 720 sq ft for 1 bedroom condo is not bad. At least much bigger than my current apartment. I haven't followed the price trends for condos, so don't know if you got an extraordinary deal. Where is this condo? Is it near the train station? How much is HOA? The only down side would be high HOA. Your 30 year mortgage rate is awesome. How did you get it?

Theman2. You're right about skimpy workmanship on new constructions. It's so easy to put in nice kitchen cabinets and granite so buyers are blindsided by that and not notice what could be subpar work elsewhere.

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If it is the plan I had previous provided a link to, I would have second thoughts. The windows in the bedroom seem tiny (especially if it doesn't have central air), the bathroom doesn't have a tub which lowers resale and there is not a private master bath. The living room does seem big, but will fill fast with furniture, plus alot of the space will be used up as traffic areas to the bedroom, kitchen and front door. Typically, going for a bigger unit is not that much more, and will even lower per square foot costs.

If you plan on dating, or hoping to, I would think there is not enough closet space either.

bostonian123 said:
When I visited, I also felt that it was a bit tiny but I figured it is bigger than my current accommodation and I'd like to think that it should be enough for 1 person.

Consider how long, if at all, you think your SO, when she comes into the picture, is going to put up with a 720 sq. ft. 1-bed condo in suburbia? You don't need this stone mill around your neck now, rent a studio near Harvard Square and enjoy life.

While I'd say skip it, if you decide to go through with it, get an outside, independent home inspector not recommended by the builder. The home inspector that they recommend won't do anything to put a wrench in the deal or risk future business.

If you proceed, good luck, but I'd be asking for another 30k or so off the price minimum. In addition, I bet our idiotic government extends that credit and the prices will fall.

bostonian123 said: I am buying a 1BD (720sqft) condo!!! What to expect in the next 30 days?

Buyer's Remorse.

bostonian123 said: sananthak said: Consider how long, if at all, you think your SO, when she comes into the picture, is going to put up with a 720 sq. ft. 1-bed condo in suburbia? You don't need this stone mill around your neck now, rent a studio near Harvard Square and enjoy life.I understand and it is a valid point. However, even a semi-decent studio in Harvard Square is around $1450. And those units do not have centralized A/C, security door alarm, and in unit washer/dryer. Besides, I am tired of renting and moving every other year. Frankly, I am surprised you all wouldn't buy a unit like this. I thought it was a good deal. It is new. It is clean with new appliances. What else do I need really? I don't have kids or anything.

This is NOT in cambridge and would NOT be worth $1400 a month rent

At 0% interest you will not be getting a tax deduction off this mortgage, and you will most likely be taking a loss when you sell this (tiny) (apartment sized) unit to someone else. The problem is that the people that live in a tiny studio apartment are typically single. And single people live a lot closer to the city than Natick.

If you work in Boston I'd even look at some of the condos for sale in East Boston right off of bennington, around the same price, and a 3 minute walk to the T (and 15 minute ride downtown) vs. a 7-10 minute walk to a commuter rail, which will take you to the T, which will eventually get you downtown. Same amenities.

Just a quick breakdown of what you're getting for your $150 HOA fee ($1800/yr):
About $10/month of water
About $20/month of garbage service
About $20/month of insurance (and you still need to get your own)
And that leaves $100/month to pay for a parking spot in an area that has free parking, everywhere.

Just to reiterate, this is a stupid idea. You should rent. Also, your posts show you're not familiar with the area enough to buy. Go drive around at 8pm at night and see where you plan on eating or what bar you would go to (with a bunch of guys that have wives and kids by the way, not single women)

also why do you move every two years? don't like the neighbors? rent increasing?

you won't like the neighbors here either. and the HOA fees will increase. and you won't be able to move

How much does it cost to rent "a 1BD condo (720sqft) in Natick, MA?"

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bostonian123 said: The problem is that the people that live in a tiny studio apartment are typically single. And single people live a lot closer to the city than Natick.This is not Cambridge, agreed. Also correction on the interest rate, 0% only on the 5K assistance, mortgage will be ~4.25%. Well, this is a 1BD not a studio but I know what you mean. And it is a great point.
If you work in Boston I'd even look at some of the condos for sale in East Boston. Same amenities. I work in Cambridge, actually. Looked at East Boston and Chelsea but passed because of 1)crime 2)garages were expensive -- and I'd like to keep my car.
Just a quick breakdown of what you're getting for your $150 HOA fee ($1800/yr): About $10/month of water. About $20/month of garbage service. About $20/month of insurance (and you still need to get your own). And that leaves $100/month to pay for a parking spot in an area that has free parking, everywhere. Well, it is 100 per month right now. And I was thinking about the value (of the garage) for the winter.
Just to reiterate, this is a stupid idea. You should rent. Also, your posts show you're not familiar with the area enough to buy. Go drive around at 8pm at night and see where you plan on eating or what bar you would go to (with a bunch of guys that have wives and kids by the way, not single women) You are absolutely right. I don't know Natick. I don't hang around in Welllesley/Natick area. However, I need the make a decision on this opportunity by tomorrow. Otherwise they will pass this unit to someone else.

Frankly, I was thinking about buying anyway. Tax credit only affected the timing of the purchase. I was just looking for a peaceful (minimal city traffic noise, no crime, no "circle around to find parking" hassle) place to call home. I figured a brand new place for 128K (after incentives, before downpayment) is as good as it gets.

P.S. I usually only move due to rent increasing or/and bug infestation of old houses. I won't have to deal with mouse/bugs here and rent won't increase.

We are at a period in history in which there has never been more vacant housing units in this country and these people are trying to force a sense of urgency to "Buy now or be priced out forever". Call their bluff and let them pass it on to some other sucker.

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It does sound like this place might be good for you and where you are in your life, but some people point out things that will make it more difficult to sell in the future.

So while it seems good to you now, it may come back to bite you in the future. If you can live with that, then fine. However, I also agree with calling their bluff. Let them pass it on. The market is in turmoil right now, it is highly unlikely they have a line of people to buy this condo. If it is not meant to be, someone else might get it. If it is meant to be then perhaps you end up with a better deal. I think waiting and taking a bit more time is your right decision.

I understand your desire to own a house and you feel like you want to do it now because renting is/has been a hassle. That being said the current environment is very renting friendly in a lot of places, so the reality is maybe now is not the time, even though you are ready. It seems like you want to buy something and you are settling. It is not like this is some kind of once-in-a-lifetime dream opportunity. Which means you can afford to take your time, do some more work and if things work out with this place and you can get an even better deal so be it.

I get the feeling that you are not a very patient guy, which is understandable. I assume you are somewhere in your mid to late 20s. You like you should be buying a place to be grown up, but you don't really have the patience to spend a lot of time and energy on it, so you just kind of what to jump on it and go. I am advising some more patience here. The marketplace now is not one where buyers need to be rushing into things or feeling urgency. Take your time, it is likely even a better opportunity will show up.

tripleB said: bostonian123 said: I have had enough!

With the exception of a handful helpful people this place is full of bitter losers who live in their mom's basement and tell everyone that their choice of buying a home horrible. It doesn't matter if you get the best percentage rate or the best price. People with a reading comprehension of a 3 year old: I asked "What to do AFTER the process" but everyone was ready to bash me, probably even before I posted, with "We are telling you not to buy, but you are not listening!!!" Luckily, some smart people noticed. My understanding is that the majority of the people here are buylow-sellhigh junkies. They see everything as an money making opportunity -- forgetting the idea that some people want a PLACE TO LIVE, not to flip in 2 years. And that there are "internet hero's" hiding behind the screen giving me red regardless of what I write, thank you for showing me that I was wasting my time here. I've spent hours in here and got what... 3 serious answers to my original question. Are you kidding me? Shame. Thank you all the nice people who answered my question. But this is a waste of time. You can thank all bitter threadcrapping losers for the deleted posts.

Preserved for the Greatest Hit's Thread.

I LOVE FWF!!!

We piss people off without getting profane or racial!!! ROFLMAO

OP lets see how you view these responses after 2 years in the condo. Believe it or not we are all presenting honest sincere opinions.

Isn't that what you wanted.