Don Mahony

First of all, the amount of money you qualify for has NOTHING to do with how much a house is worth, neither does the amount you would like to spend each month. If you have the money for a $150,000 house, then only look at homes in that price range. The same holds true for a seller listing the house at a higher price because they need X amount to buy a new house elsewhere. The value of a house is determined by the condition and current market. You can offer a little lower (5 percent) without the risk of insulting the seller, but if you lowball a house, the seller may not wish to deal with you at all, and you just wasted everyone's time and lost your shot at the dream house. Your real estate agent has to submit your offer and the seller's agent has to present it to the seller, at least here in Texas. I personally don't feel right ethically going around lowballing sellers. If the house is truly over priced, then offering the true market value, backed up with evidence to prove your point (CMA done by your agent), is proper and reasonable. If you are only interested in "deals", then look at foreclosure properties and pre-foreclosure properties. You stand a better chance of getting into a 170K home for 150K that way, but please don't torment poor sellers who have worked hard for their home and are trying to live the American dream and list the home at a realistic price with lowball offers. Get your agent to advise you on the home's true value and go from there. FHA loans require about 3 percent down, so you can conserve cash that way, but the monthly payments will be more. VA loans will let you move in almost for a song, but all the closing costs and the VA funding fee are rolled in and you will be upside down (owe more than the value) so not a good idea if you think you will move in less than 7 years. Well, I am not from Denver, but these thoughts are somewhat universal. - Thu May 8 2008, 10:42

Of course the answer is yes. I am sure you would want to have a used car inspected before you purchase it to see if it is a lemon, and often we can't or don't do that and pay the price. Of course that investment is usually just a few hundred or thousand dollars. A pre-existing home has been subject to years if not decades of use and abuse by the elements. Owners may or may not know of existing problems, or have learned to live with them and don't even remember they are there. If you are buying a home, an inspection allows you to see if the wear is just normal and won't cause major concerns in the future. An inspection gives you the leverage to ask the seller to lower the price or to fix items that are seriously faulty, such as AC systems, plumbing, roof damage, termites or wood eating ants, cracked foundations, wood rot, septic systems, well water potability, etc. The home inspection is not like the extended warranty at the check out line. It is an important safeguard in your most expensive purchase. - Thu May 8 2008, 10:21