SEARCH IN THE CITY In my search in the suburbs I had thought I was interested in an older, in fact one of the few places I had found that I liked was a 184 year old Victorian, it was great. I loved all of the wood work and the interior that was full of character, a servants stairs, great second empire detailing, a safe built under the stairs and a great garden to name a few. I was really tempted by the house. If it hadn't been in the middle of nowhere I may have actually went for it...and maybe later in life a great old Victorian is where I will end up. When I started looking in the city I thought my enjoyment of older homes would continue. It was surprising to see how my interests changed. I went from wanting a really old Victorian to building a brand new home. As corny as this may sound, sometimes the process of looking for a home is a journey, one where you learn a lot about yourself and the things that are important to you. I expected the process to be similar to the suburbs, to look at a bunch of places without much luck, but almost immediately I found some places that I liked, not loved, but liked so I was encouraged. I also had a new realtor who was a little more motivated than my previous one. One of the other reasons I hadn't looked downtown was I didn't think I would find anything I liked in my price range that wasn't in the ghetto. I really wanted to try and stay in my neighborhood or one of the other downtown neighborhoods. But of course these are the most sought after areas and price made many of them out of my reach. My neighborhood is called the "Graduate Hospital" area and it has gone through a revitalization over the past several years. Many people used to define center city's southern border as South Street but now many have extended it to Washington Avenue. From South Street to Washington Ave and from Broad Street to Approximately Gray's Ferry to the West is the Graduate Hospital neighborhood. It's gottne more popular over the last few years as some bars and cafes have begun to appear and formerly run-down areas have been rebuilt. This of course drives up the prices of homes...but the edges of the neighborhoods had places within my financial reach. LET THE NEGOTIATIONS COMMENCE Much quicker than I thought, I found a place I liked. It was within the neighborhood I wanted (although on the very edge of it) and was close to what I was looking for. I actually put a bid in on it. Now here is the utterly heart renching, exciting, queasy, wonderful and and extremely nerve-racking part of buying a house. Again, read as much as you can...do your own research. Don't depend soley on your realtor to guide you. They shoould offer advice, but remember they work for you and if they are telling you something that doesn't feel right, trust your instincts. The place I was looking at was listed for $249k. I put in a bid for $235k ansd asked for the seller to pay closing costs. The seller coutered saying the absolutel minimum he would accept would be $245k and since I was asking for about $15k in closing costs (this estimate on their part was incorrect by the way) he wanted $260k. Now I was in a quandry, I liked the place but I wasn't in love with it and was willing to walk away. But I did like it and it was in the neighborhood I wanted. It didn't have a finished basement which was a big contention on my part. I was planning on using a FHA 203k loan to finish the basement before I moved in so I had to figure that in the cost of the house as well. I ultimately told my realtor to respond with a counter of $250k but to tell the seller it was my final offer. The seller countered with $255k and I stuck to my guns and walked away. I of course worried at the time that I was making a mistake (and I should note that my realtor was encouraging me to take the offer...as much as I like my realtor, I think that was a little of the shark circling). I worried I was passing something up I would regret but I made the call. I didn't think the market supported the price the seller was asking and I did say it was my final offer. (As of this post my call was a good one, the property is still listed and they have reduced the price by $10k...guess he should have taken my offer). But I'm ultimately glad the deal fell through. LOCATION LOCATION LOCATION (at least a few blocks away) I've mentioned I live in the "Graduate Hospital" neighborhood. After looking at a few places in my neighborhood and not finding what I really wanted (at least within my price range) I started looking outside my neighborhood. They say location is everything in real estate, well that is certainly true in Philadelphia. A few blocks down the street is a neighborhood called "Point Breeze". It's just over the Washington Ave. border and it's amazing how much neighborhoods change within a few blocks. So "Point Breeze" ... ok ... some parts of it are the 'hood. But I was able to hook up with a realty company buliding new houses all over this neighborhood. They are trying to revitalize it just like my current neighborhood was revitalized years ago, the city has also marked it as an area for improving. I searched through the neighborhood and found a lot on the edge of the neighborhood, not far from my current place. Within two-blocks there are several brand new houses, on the street I'm looking at my house will be the 4th new house on the block. So as much as I can evaluate the real estate potential (with having absolutely no experience) I have made what I think is the best choice. I plan to live there for a few years but not forever so my hope is in a few years the neighborhood will improve and so will my investment.