what do you think about buying a small house for big bucks?

we really like a house - it's a very small ranch - but in excellent condition on 1/4 acre - and asking mid 400s

we REALLY like it and right now for the 2 of us, it's a fine size....but I am worried about resale - the house is very small (but in a good school district)

will we be able to make money on it in the future? or should we stretch and be house poor, but get a bigger house for a bigger mortgage and several hundred dollars more per month in a mortgage?

so confused

Re: what do you think about buying a small house for big bucks?

low to mid 400K is considered a starter price in the this market. i would not worry too much about the reslae value as there will ALWAYS be someone (newlyweds, empty nesters) that would be interested in a smaller sized home. not to mention, .25 acres is a decent sized lot.


as long a it fits your needs and budget, go for it.

Re: what do you think about buying a small house for big bucks?

Ditto what skew said, and also if its a great school district you will always have an interest when you sell.

Re: what do you think about buying a small house for big bucks?

do you think you will grow out of a house too fast? it's only 3 bedrooms with a den and dining room and kitchen. that's all. I fear that I'll feel like I'm in an apartment and want more space. But in this market, a house this nice, although small, is so rare.

Re: what do you think about buying a small house for big bucks?

i think you answered your own question, 'But in this market, a house this nice, although small, is so rare.'

as a newly married couple w/ no kids, i think 3 bdrms is a perfect size. is there a basement? if so, you could always finish it and use it as a den/family room/office.

are the taxes decent? reason being, you could always built up or out and although taxes will increase, they probably would be that bad if they are reasonably low now.

Re: what do you think about buying a small house for big bucks?

I personally think that location and school district are the most important things!

How far is it from the city? although the house is small do you have storage space like an attic or basement ( are they convertible for more space)? You can add on to the house later on if you have an 1/4 of land.

My DH & I bought a house in NJ for around the same price and it's not a large house but it's in a great location (18 miles outside the city), great school district and a big back yard for Northern NJ. We plan to stay there for 5-7 years and if we decide to stay longer we will add on to the house.

Good luck!!

ETA: Correct Spelling

Re: what do you think about buying a small house for big bucks?

Three bedrooms & a den is small???

Re: what do you think about buying a small house for big bucks?

thanks everyone

there is a basement and attic, yes

it's about an hour train ride to NYC, where we work, and a 10 minute drive to the station

the den and bedrooms are very small - you can fit a couch, etc. though

I just wonder if we should buy a bigger house, even if it needs work, and put money into it over time and at least not have to move in 5 years....even though the bigger more expensive houses we have seen need SO much work

Re: what do you think about buying a small house for big bucks?

Do you have a living room as well as a den?

Re: what do you think about buying a small house for big bucks?

I know someone posted a site about finding out how much other houses were sold for in the area so maybe you should look there?

Maybe you can find out what comparable houses sold for. Maybe the house is overpriced? Ask the realtor to run a report for you about what other houses sold for in the area ( it's part of there job too).

Hope this helps and good luck!

Re: what do you think about buying a small house for big bucks?

you really have to determine what your needs and 'must haves' are.

ie. DH has a big family so we need a big FDR and FLR. we have out of town family members, so we need 2 designated guest rooms. we both do a lot of work from home, so we need an office. DH has always had a pool, so he 'wants' a pool. we want a dog, so we 'want' a large lot (.50+)

while a smaller sized home might be perfect for someone elses needs, we NEED a large home. we are definetly willing to purchase a home that is not in mint condition, but the basics have to be there (large home, large lot, good SD, located in a neighborhood and not on a main road)

sit down w/ your FI and make a list; must haves and would like. if the home meets the critical criteria, i would go for it.

Re: what do you think about buying a small house for big bucks?

Skew raised some good points!! DH and I had a list of MUST HAVES and that's how we figured things out. It helps keep things in perspective!

Re: what do you think about buying a small house for big bucks?

yes skew, good points

no Karen, there is no living room

we did the home price search in the neighborhood and not many were sold in the past year, but the ones that were sold for about 40K less than they are asking (but we don't know what the other houses looked like or what they needed)

we offered 45K less than asking and they told us that was their LOWEST offer!

Re: what do you think about buying a small house for big bucks?

The house you describe sounds like the one we are buying. Except we have a living room and we don't have a den. Otherwise 3 bedroom ranch w/basement/attic, good sized bedrooms and FDR. We have less property, we are in Nassau, I think we are 40 x 100. We close soon, got a good deal and are paying slightly under $400K, we are in Lynbrook SD 20 which is an awesome district.

Re: what do you think about buying a small house for big bucks?

It is all about location and school district. I say go for the house. It might be small but you can always expand. In 15 years starter homes will be $700,000 or more probably. It will keep going up and up and up. Good luck!

Kim

Re: what do you think about buying a small house for big bucks?

I grew up in a small ranch like the one you described w/o a basement. My parents originally bought as a starter but stayed. We managed just fine (just the three of us). My mom even hosted many Christmases and parties. They eventually put on a small addition. I would go for it especially if you like the house/area. It isn't easy to find a house that you love in a good area.