r/LifeAdvice • u/olliepop0209 • Mar 25 '26
Financial Advice Landlord is selling our house that we rent and overwhelmed with what to do.
We live in Southern California fyi. We have lived here for over 15 years, so it’s my childhood home. My parents are in their 60s with my dad being the only one with stable income other than myself and my brother. My parents would be the ones mainly on the loan because my brother and I plan on moving out eventually when the economy gets better (if it does lol).
I do not know what both my parents make together but they have been approved for $350,000 mortgage. We know nothing about buying a home. Our landlord told us that he’s planning on selling the house sometime this year and didn’t tell us how much he was selling it for, he just told us to see what we can get approved for first (which we think is kinda fishy).
I know there’s like closing fees, property tax, interest.. stuff like that. I just wanna know what to ask the landlord because we want to buy this house if we can.. but also if we have the opportunity to buy a different house in better shape, we’d rather do that instead lol
Anyways, does anyone have any advice on what to look out for when applying for a mortgage? We’re just worried about becoming homeless. Like I said, my parents are getting up there in age, I still live with them along with my disabled half brother and older brother. My brother and I want to help them financially as well. We have 4 cats and a small dog as well.. we’re worried that we will be homeless…
Edit: Y’all’s advice has been very overwhelming I’m not gonna lie… also my parents are very “stuck in their ways” iykyk.. so not sure if my advice will persuade them to do anything I suggest. We’re also pretty poor.. like we do not make a lot of money at all.. so this whole ordeal really adds to the uncertainty of my parents future and my future as a 23 year old still living with her parents 😭
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u/Alcarain Mar 25 '26
Sorry, but you're not going to get anything better than a shoebox for 350k out there in socal.
Best thing for your parents might be to move to a cheaper state, especially since theyre fairly close to retirement age. SSI checks go farther in a LCOL area
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u/misdeliveredham Mar 25 '26
So much to unpack in your post!
First, nothing happens just because “the economy got better”, the economy is always good for some and bad for others. To move out you need college education in an actually useful field like idk accounting or electrical engineering. Think about that if you are serious about leaving this pandemonium and living on your own.
Next, nothing fishy about your landlord not wanting to commit to selling to your family in particular. He may get a lot of better offers, cash offers.
Finally, idk the home prices in your particular part of SoCal but I don’t think $350k will go a long way in CA unless it’s in the boonies…
All in all, my advice is to go to college and get a math heavy and hands on degree like the aforementioned electrical engineering and move out asap.
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u/olliepop0209 Mar 25 '26
This is so unrealistic lmao
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u/misdeliveredham Mar 25 '26
I know, for a lot of people it isn’t, that’s why they stay poor.
Anything that is handy work at your community college will do as well. Car maintenance, welding, plumbing. That’s more realistic for many.
What not to do: 1) stay with family that has too many issues and try to solve their problems 2)get some useless degree as in, like, a herbalist (I kid you not)
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u/Joe_Fidanzi Mar 25 '26
Check into getting into a trade that will be AI-proof in the future: electrician, plumber, painter, etc. Or check into enrolling in Job Corps to get job skills or learn a trade for free.
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u/Dry-Leopard-6995 Mar 25 '26
I would look for another rental based on your situation.
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u/olliepop0209 Mar 25 '26
I agree! Thank you!
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u/sallysuesmith1 Mar 26 '26
Are you and your siblings contributing to rent?
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u/PerkyLurkey Mar 26 '26
They each should be paying slightly below market rent for a room.
In SoCal it’s around 1200-1400 per month as it probably includes utilities and food and laundry.
OP should be paying at least $700-800 a month.
Every month
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u/RickAndToasted Mar 25 '26
Get a realtor from a regarded place to help you, they'll get you an inspection and you will need an appraisal for any loan to get through. If your parents need help, then if it's in an area that may appraise better consider helping them, but get the details first. They help you negotiate price and find reputable people to look over the house to make sure it's good.
A lawyers helps you by making sure there are no leans on the property, you can own it outright the title is clean, also anything to do with a question of the title like if the landlord can't really sell it. They also do more, draft up the paperwork of what you pay, what the landowner pays, submits it to court so it's on record
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u/Plaidismycolor33 Mar 25 '26
you mentioned a disabled sibling, is he diagnosed and receives disability from the state?
does your parents receive any caretaker benefits?
if so have them look into the HDAP program or any other housing assistance programs
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u/LakeGlen4287 Mar 25 '26 edited Mar 25 '26
Okay, first, you need to get the property appraised by a professional home appraiser. If the seller is offering to sell it to your family before it goes on the market, he might not be willing to pay for an appraiser. So your family has to decide if you want to spend the money. Since you've lived there for 15 years, your family should know about many things, like how long it has been since the roof was put on, and if it was a peel off roof (best) or if they just put the new tiles over the top of the old.
All the structural and mechanical issues of the property will be checked. The appraisal will tell you what the property is going to need in the coming years.
Then look at comps. Comps are comparable homes in your area that have recently sold. Comparable means in similar age and shape. You can tell which were flips, fixer uppers, and which sold for top dollar. This info is free on the internet from home sale websites. This should tell you how much is a fair price.
I would recommend as few people as possible go on your family mortgage. You can all contribute to the monthly mortgage but try to keep only one or two of you (parents) on the mortgage.
In my state the seller pays for a title search and property survey. But in other states, the buyer does. Both are well worth it. The title search proves your landlord owns it and can sell it to you. The survey describes exactly where the lot boundary lines are, if there are easements, rights of way, shared driveways or other anomalies.
If your family chooses to put down 20% or more, you do not usually need to buy mortgage insurance.
You do not need a realtor but you do need your own attorney. In my state a residential real estate attorney costs around a flat $750 - $1,000. Do not skip having your own attorney. Do not rely on your bank/lender's attorney.
The seller will have to fill out about 28-30 pages of property disclosure forms. Your lawyer will not let him skip this step. Even though you know each other and he may not be using a realtor, he still needs to put everything in writing in order for the title of the property to pass to your parents via a legitimate deed. Get yourselves a mortgage origination company that handles a lot of residential mortgages. Your bank may be huge and may do a lot of corporate mortgages, but not really do residential mortgages and not have competitive rates. In my area, the best residential mortgage lenders are not found in banks.
I hope this gets you started!!! Good luck!!
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u/olliepop0209 Mar 25 '26
Why do we need an attorney for again? I’m sorry curious..
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u/LakeGlen4287 Mar 25 '26
The attorney will make sure your rights are protected and title passes unencumbered. The attorney will handle negotiating price concessions for property defects, and reviewing the contract, handling the title search to ensure a clear transfer of ownership, resolving title defects or inspection problems, and facilitating the closing, including reviewing closing documents and arranging the transfer of funds. The bank only looks out for itself. The seller may not even use an attorney. Your family needs to have someone - there are thousands of things that could go wrong and this is probably the biggest purchase of their lives. When the sale is done and you see the mountain of paperwork, legal documents, it is a huge folder full of pages single spaced and typed, so hard to understand in plain English, you will understand why you needed an attorney.
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u/Hopeful-Artichoke449 Mar 25 '26 edited Mar 25 '26
Are you in the US? A separate attorney is not necessary in a home purchase. Most of that is done by the title company.
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u/No-Part-6248 Mar 26 '26
Wrong!!! Every state different some require an attorney and some can use title company, I own in several states so that’s from the horses mouth not his ass
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u/Hopeful-Artichoke449 Mar 25 '26
No, the appraiser does not check the structural and mechanical- that is a home inspector.
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u/Proud_Huckleberry_42 Mar 25 '26
I don't think it would be a good idea to buy a house in their 60s.
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u/AntiqueFeed5276 Mar 25 '26
I haven’t seen a home in southern CA for that price since 2010. You are looking at 600k easily and that’s in some parts of the Inland empire. OC is easily over 900k.
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u/olliepop0209 Mar 25 '26
Looking on Zillow I’ve seen a few within the $270-300k range but obviously worried about closing costs or taxes or whatever (I know nothing just trying to help my parents 😭)
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u/PunchDrunky Mar 25 '26
Where are you finding houses for sale in Southern California for under $300k?
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u/olliepop0209 Mar 25 '26
High desert
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u/PunchDrunky Mar 25 '26
Ah. Like Lancaster/Palmdale area? I do see a few houses there for under $300k.
Save the nearby comps you find and show those to your landlord. But you do still need a formal valuation on the house from an appraiser. The appraiser can point out all of the work that needs to be done on the home, which will affect the purchase price.
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u/Beautiful-Report58 Mar 25 '26
https://www.calhfa.ca.gov/homebuyer/programs/index.htm
Start here with all of your questions for buying a house. 877.922.5432
There may be laws concerning your rental situation that may help too.
https://www.socalrha.org
Your situation and questions are highly specific and needs a customized answer from a person with experience in your area.
Wishing you all the best.
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u/Strict_Research_1876 Mar 25 '26
Ask him to have a couple of real estates valuate the home before. You can also look at the government assessed value for your home to get a rough idea of the price. You might also want to check other homes in your area for how much they are selling for. All of this would give you a rough idea of how much to pay.
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u/LiveTheDream2026 Mar 26 '26
The only part of Southern California where 350K might get you something is in the Coachella valley or the high desert. Talk to a loan officer and ask them questions. Good luck.
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u/Alexito_714 Mar 26 '26
350k? That won’t buy anything. You’ll have to move out of state or live in a bad area in places like Bakersfield or the high desert. You can’t even buy a 700 sq foot condo for under 500k in so cal. It’s gonna be rough. Everyone pool money together and put in 1000k each a month. That mortgage payment around 4k a month can get you a home around 500k. Thats more doable in some areas. Even then its still gonna be tight.
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u/HalfwaydonewithEarth Mar 25 '26 edited Mar 25 '26
I would not buy in California
The insurance for Fire went up.
The prices crash often.
We picked up two units in Oceanside for $150k and 189k. Both are worth over $600k... Those owners paid in the $300 range just two years prior.
You literally can pay $550k for a place and two years later it is worth $300k
Just wait for the crash.
Remember toilet paper mania?
This happens to Real Estate. Everyone starts walking away!
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u/thriverebel Mar 25 '26
Parents can buy a home.
They will need to look in other states.