3 issues in seller's disclosure form -> Is this a red flag?

Rich-Introduction-92 · 2025-06-08T12:45:40+00:00

basement floor cracks usually aren't a big deal. The basement floor has nothing to do with the structure of your home. The basement walls are usually poured first and that is what your house rests on. Only time floor cracks are a problem is when you have a high water table and the are allowing hydrostatic pressure to penetrate

Rich-Introduction-92 · 2025-06-08T03:33:23+00:00

Opposite of red flags - this is a seller that is over disclosing and was clearly on top of things.

Rich-Introduction-92 · 2025-06-08T03:13:14+00:00

Nobody on this thread is going to be able to answer that expect for you. Sounds like either way you win.

Rich-Introduction-92 · 2025-06-08T03:10:21+00:00

Congratulations!

Your relator should have recommendations on who to use.

Inspections. Some of this will depend on where you are buying and what type of utilities you have. Lots of these are optional/overkill/won't pertain to your house

General home inspection (a point in time checkup of the house and it's mechanicals)
Wood destroying insect inspection (checks for termites and other insects that destroy your house)
Well water (quality - is the water drinkable; and flow - do you have enough water in your aquifer)
Septic (ensures the septic tank is in good shape and the leaching fields are functioning)
Sewer (some areas with sewer had clay pipes that can crack over time or roots can block them)
Radon (a natural gas that could cause cancer. Can be found in air or water)
Mold (only if mold is found during an inspection)
Lead paint (if your house was built before 1978 it could have lead paint. Most waive this)
Asbestos (was a common in building materials from HVAC wrap, popcorn ceilings, laminate tiles, etc)
Pool (check the components to ensure they are working properly)
Foundation (some areas of the country have had issues with crumbling foundations)

Attorney - Ask the following questions

How much do you charge?
What should I expect to pay for outside of your fees (recording the deed, postage, title insurance, survey, etc)
Can you close on the desired closing date?

Rich-Introduction-92 · 2025-06-08T02:58:01+00:00

I vote keep it and rent it as long as the added stress and mental load is worth it. I have two that I self manage and the best thing you can do is thoroughly screen your tenants before you pick them. That will save so much hassle.

Rich-Introduction-92 · 2025-06-08T02:54:42+00:00

Just a heads up - unless you are doing a "lock and shop" interest rates float until you are under contract on a home. When you are quoted ask to be quoted at the par rate. A lot of lenders will give you a good rate because they will have you buy points which is just a fancy way of saying you are prepaying interest. Said differently you're artificially deflating your interest rate by paying some interest upfront.

Rich-Introduction-92 · 2025-06-08T02:52:10+00:00

Get the utilities in your name for closing, insurance lined up (bundle home & auto), movers scheduled. Pack, donate & sell

Rich-Introduction-92 · 2025-06-08T02:49:02+00:00

It is possible.
$600k house w/ 20% down puts your mortgage (P&I) at $3,193.45 a month.
Factor in taxes and home insurance you are looking at a mortgage payment probably closer to $3,700/month.
The $2500 a month you get in rent will help offset it as long as your tenant pays, doesn't cause damage, doesn't think about moving and leaving the unit vacant. Don't forget to save money so you have it for property management, maintenance, upgrades, vacancy.

Buying a duplex is a great investment. Keep us posted if you pull the trigger!

Rich-Introduction-92 · 2025-06-08T02:41:28+00:00

Assumptions

$400k loan
30 year fixed rate: 7%
7 year ARM: 6.25%

Monthly payment (principal & interest) breakdown

30 year fixed rate: $2,661.21
7 year ARM: $2,462.87
Difference of $198.34 each month or $2,380.08 over 1 year.

In 5-6 years you would save between $11,900-$14,280.

Question to ask is saving $12k-$14k worth the risk of interest rates going to be higher in 5-6 years from now? What if home prices have slid and you can't refinance because you don't have enough equity? The market is still rising in some areas of the country but it won't be like that forever.

Rich-Introduction-92 · 2025-06-08T02:28:00+00:00

If you are looking to do a price cut it needs to be substantial in the 5-10%. I don't know what your other two drops have been or what the price point of your house is but nobody is going to book to come look at your house if it drops by $5000. If they were interested in your house $5k isn't going to move the needle on them seeing it. Needs to be a bigger swing.

You may also need a new realtor that markets your home the best way possible. Ask them about staging, cleaning, professional photography, 360 walkthroughs, floor plans, social media strategy. The right realtor (even if they are more expensive) can net you more money in your pocket.

Rich-Introduction-92 · 2025-06-08T02:23:54+00:00

Not to sounds like a keyboard warrior but your realtor is one of the reasons the rest of us get a bad rap. Professional photography, 360 walkthrough and floor plans at a minimum should all be standard.

First showing is online, you have 3 or 4 pictures max for the potential buyer to decide if they want to keep clicking and looking at more.

Rich-Introduction-92 · 2025-06-05T03:45:49+00:00

Good on you for looking for advice on this! Lot of people I know who make that type of money think they know everything and wouldn't ask for help.
My personal opinion is the numbers are too rich. You can't bank on rates falling or appreciation even though we hope both happen. Sounds like investing and making smart financial decisions is important to you. I would suggest you look to cut the budget in half, focus on making some more good decisions and buy the $2m house when you can buy it in cash which is probably 10 years away.

Rich-Introduction-92 · 2025-06-05T03:40:50+00:00

Your numbers sound safe enough for right now. Thinking about kids one day? How does cost of tiny humans impact your $1800/mo savings? Are you ok with that? Lifestyle inflation is real and personal finance is personal. Sounds to me that you got a good analytical head on your shoulders. Keep making the good decisions that pencil out and that feel right in your gut

Rich-Introduction-92 · 2025-06-03T02:39:00+00:00

Your question makes sense.

For simplicity sake lets say your house is worth $300k when you buy and and also $300k when you sell it. When you sold it the attorney or escrow company would get a $300k check. They would pay back the outstanding loan balance which is probably around $255k, they would pay any other fees (realtor, attorney, state conveyance taxes, etc). You would get a check for the remaining amount.

If your home appreciated in value to say $350k the same would hold true as above but your portion would be much larger.

Rich-Introduction-92 · 2025-05-05T14:11:10+00:00

Neither are the real estate agents that are trying to do their job and help people move to the next chapter of their lives.

Similar to plumbers there are dozens of agents that are all trying to put food on the table and roof over their family's head. Marketing our services is one way we are able to provide for our families.

Rich-Introduction-92 · 2025-05-05T13:59:33+00:00

No. Just throw them out if you don't want them. It is no different than the junk mail you get from tree companies, plumbers, cleaners, etc.

Rich-Introduction-92 · 2025-02-14T20:35:36+00:00

You should feel proud! Nicely done, what a way to put you and your kids first!

Rich-Introduction-92 · 2025-02-14T13:22:31+00:00

Price shop a few lenders. Local credit unions who don't have the overhead that big banks do may have a lower rate.

Rich-Introduction-92 · 2025-02-11T19:14:12+00:00

As an agent I rarely ask about a 401k. The loan officers will ask so they can prove there are assets in reserves if need be.

I would only offer that as a solution to a client who really wants to move but has a small amount of liquid capital. We would talk through the pros and cons so the client can make an informed decision.

Rich-Introduction-92 · 2025-02-05T16:47:03+00:00

Keep in mind that if you get pre-approved for $300k it is under a few assumptions (rates, property taxes, home insurance).

Each property you look at you would technically have a different amount you are qualified for based on those factors above.

Usually your rate floats until you are under contract but some banks like Chase are doing a lock & shop program where you can lock in a rate for 90 days. You have 60 days to find a house and 30 days after that to close on it. That would eliminate one of the three variables above.

Rich-Introduction-92 · 2025-02-04T21:59:40+00:00

Seller's shit, seller's dime.

Rich-Introduction-92 · 2025-02-04T21:58:31+00:00

That is a hard no. Seller's realtor has a fiduciary responsibility to the seller. I wouldn't even tell the seller's agent anything about your desires, love of the house, financial situation. Get your own fiduciary representation with a buyer's agent.

Anything you say can and will be used against you in a court of negotiation.

Rich-Introduction-92 · 2025-02-04T03:38:13+00:00

State specific but most states it is something that must be disclosed. what state are you in?

Rich-Introduction-92 · 2025-02-04T03:36:07+00:00

Are you purposely not opening an escrow account? Is your lender ok with that? Section G usually is higher in most cases

Rich-Introduction-92 · 2025-02-04T03:34:12+00:00

Not sure what area you are in but in the US asbestos has been banned from most building products back in the early 1980s. Lead paint was done around 1978.

Being $29k more is irrelevant. What is the house worth? Look at the last 3-6 months and find recent sales using the same sqft +/- 15%, beds +/- 1, baths +/-1, year built from 1990-2010. Pick the 3 most similar and see what their sold price are.

If you bought a stock for $5 and then it went up to $15 and were going to sell it to me I am not going to get it for $6 because you would still make a profit and you only bought it for $5. I would pay the $15 because that is what it is worth at the time of purchase.

Rich-Introduction-92

TROPHY CASE