I Want to Buy My House
We are currently renting a 670 sf house in serious need of fixing up. We are hoping to be able to buy it, my dream scenario would be to agree with the landlord on a price and then simply turn our quite affordable rent payment ($960) into a house payment and pay and pay until the house is paid for. I realize I'm probably being too simplistic, any advice on buying from your landlord would be appreciated.
According to the tax man, the house is worth $236k up from $200k last year. Zillow has it at $290 but that doesn't take into account all the fixes it needs like new wiring and plumbing. There's no wall insulation, it still has original windows, the bathroom floor is soft, the appliances are outdated etc. Real Estate ABC has it at a nicer $269k, I'd like to offer the landlord $250.
A huge thing that is scaring me is that the housing bubble in Seattle shows no signs of stopping, according to an article in the Seattle Times today, 17 of 20 counties in Western Washington reported a 20 percent or more increase in house prices compared with this time last year. In my county, the median home price has jumped from $324,950 in March 2005 to $365,000 last month. I also read an article from Forbes stating that Seattle was the most overpriced city to live in "For the second year in a row, Seattle takes the top spot in our study. Why? The city does poorly on all counts, but was at the bottom when it comes to job growth, and the cost of living is very high." I'm worried that if I don't approach the landlord soon, he might decide to take advantage of the housing market and sell before we are ready to buy. My plan was to not approach him until next year when we are debt free so that if he would like a down payment it would be easier for us to come up with one.
The landlord is coming out this weekend to fix a leaky faucet that we don't have the tools to do ourselves, maybe I can test the waters and see how he feels about selling without really committing to doing it right away.