scar988 Posted November 1, 2018 Share Posted November 1, 2018 Wife and I just bought a house on Tuesday. Moving on saturday. Pray for me. 3 Quote Link to comment Share on other sites More sharing options...
Shanedorf Posted November 1, 2018 Share Posted November 1, 2018 On 10/16/2018 at 9:57 AM, MKnight82 said: I work in real estate so let me give you a few tips: - As a buyer there's no reason not to have an agent. The seller will have to pay both their agent (if they have one) and your agent's commissions, so its absolutely free to you. There's no reason as a buyer to not have a professional representing you. I always struggle with this one. Its not really free, it was part of the original sale price of the home Let's say you buy a house for $ 100, the agent commission is technically paid by the seller. But where did the seller get the money ? From your pocket. And when the seller and his agent set the initial asking price, they looked at comparables, reviewed the appraisals and added the amount of commission to it to arrive at the $ 100 sales price. The sellers know they are paying a commission and they know how much they want to net out of the deal and adjust accordingly. Its a zero sum game So in the end, the buyer is the source of all funds and yes indeed, it did cost you money and no, its not totally free. Its just a little shell game That being said, I strongly concur on getting a professional Realtor to assist your search efforts and a good one is well worth the price. What price? We also negotiated with our realtor on his commission. He didn't want to at first, none of them do...but in the end... the process of being a realtor is identical whether the home costs $ 400k or $ 500k- so why would you pay more for the same exact job / performance ? That's how its been done traditionally, but its not the law. There is always some flexibility, but few have the testicular fortitude to push for it. One other tip that I'd offer is to educate yourself on what the remodel options are and what things cost a lot vs what doesn't cost a lot. The original builders and buyers didn't plan this home based on your needs - they did it based on theirs. So...how hard is it to go from carpet to hardwood ? How much does it cost to re-paint an entire home ? What is the cost to renovate a kitchen ? How about moving a wall ? A new garage ? By understanding these costs, you may find some smoking deals because you are willing to take a home that isn't perfect and make it so. Lots of people want a turnkey solution -" just bring your toothbrush" while others are willing to make changes/improvements. Talk to your charming bride and decide how much you're willing to upgrade/remodel ahead of time - that will open some new opportunities or close some depending on your comfort level with that strategy. And since you aren't in a time crunch, its worth discussing Example: Let's say everybody wants a 3 bdr 2 bath home - so those properties are scarcer and priced higher. IF you are willing to add a Master Bedroom, you can sometimes buy a 2 bdr home and make it your own, exactly the way you want it. That's a consideration for some, a non-starter for others. But you have to be smarter than the average bear to win at Real Estate in many markets. We've done tons of remodels, we're totally comfortable with it and we've been extremely successful ( and fortunate) in using that strategy. Its not for everybody, but its often decent a way to get exactly what you want at a better price and fewer competing buyers. Good luck... and don't rely advice from strangers on the internet. Ha Ha ! 3 Quote Link to comment Share on other sites More sharing options...
theJ Posted November 2, 2018 Share Posted November 2, 2018 20 hours ago, Shanedorf said: Example: Let's say everybody wants a 3 bdr 2 bath home - so those properties are scarcer and priced higher. IF you are willing to add a Master Bedroom, you can sometimes buy a 2 bdr home and make it your own, exactly the way you want it. That's a consideration for some, a non-starter for others. But you have to be smarter than the average bear to win at Real Estate in many markets. We've done tons of remodels, we're totally comfortable with it and we've been extremely successful ( and fortunate) in using that strategy. Its not for everybody, but its often decent a way to get exactly what you want at a better price and fewer competing buyers. This is the approach we looked at the first time we bought. We had a hard time finding something in our price range that was livable enough to do this with. Some of the houses we looked at were just too much a trainwreck. You could tell that if you tried to re-do the flooring, you'd end up needing to correct major structural issues. We were also limited in our budget and ability to purchase a large enough house to live through a renovation. Best place we found was incidentally the first place we looked at. Had ugly shag carpets, horrid wallpaper, outdated everything. It was perfect. But we wanted to see more places, and the sellers were putting a lot of pressure on make an immediate offer or walk. So we walked. When we buy again next year, we'll be taking this approach again. This time though, our budget is bigger. So i'm expecting that we'll be able to get a larger house and be able to renovate a room or two at a time while still living there. We also have more patience than we did previously. So if it takes 6 months, it takes 6 months and we'll end up with the dream home (hopefully). Quote Link to comment Share on other sites More sharing options...
milanb Posted November 13, 2018 Share Posted November 13, 2018 On 19/10/2018 at 2:02 PM, AFlaccoSeagulls said: 6) Once you actually decide on a home, we found it SUPER helpful to write a letter to the home owner just giving them information about you and talking up their home. We used a template thing online where you could create your own letter. If you're interested in this, I can do some searching when I get back home and let you know how we did it and what ours looked like. Ultimately I think that got us the home we just closed on. It was our 4th offer on different homes. I have heard of this tactic working, but quite honestly I received one of these letters a couple of years ago when my house wasn't even for sale, and I found it off-putting to say the least. The underlying message seemed to be: "You should sell your house to us without putting it on the market, because we are an adorable young family that deserves to own it." Yeah, right. Quote Link to comment Share on other sites More sharing options...
AFlaccoSeagulls Posted November 13, 2018 Share Posted November 13, 2018 3 minutes ago, milanb said: I have heard of this tactic working, but quite honestly I received one of these letters a couple of years ago when my house wasn't even for sale, and I found it off-putting to say the least. The underlying message seemed to be: "You should sell your house to us without putting it on the market, because we are an adorable young family that deserves to own it." Yeah, right. If your house isn't on the market, then yeah I understand that, but if it is it's definitely a tactic that works. Quote Link to comment Share on other sites More sharing options...
milanb Posted November 13, 2018 Share Posted November 13, 2018 If I were selling my house and got a real estate love letter I would still find it off-putting. Quote Link to comment Share on other sites More sharing options...
AFlaccoSeagulls Posted November 13, 2018 Share Posted November 13, 2018 Well, to each their own. Quote Link to comment Share on other sites More sharing options...
milanb Posted November 14, 2018 Share Posted November 14, 2018 Seriously. This is a business transaction. What is the purpose of such a letter other than to persuade the seller to accept something other than the best offer? Quote Link to comment Share on other sites More sharing options...
MookieMonstah Posted November 14, 2018 Share Posted November 14, 2018 1 hour ago, milanb said: Seriously. This is a business transaction. What is the purpose of such a letter other than to persuade the seller to accept something other than the best offer? Some people have a lot of sentimental value in homes, they want to make sure its going to someone who will take care of it and be a good member of the community/neighborhood. Just because you don't like it doesn't mean others wont appreciate the gesture. Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted November 14, 2018 Share Posted November 14, 2018 37 minutes ago, MookieMonstah said: Some people have a lot of sentimental value in homes, they want to make sure its going to someone who will take care of it and be a good member of the community/neighborhood. Just because you don't like it doesn't mean others wont appreciate the gesture. Exactly. If multiple comparable offers come in, then I think a seller might lean towards the more thoughtful buyer. I probably would, but I think a buyer would just demo my house and build a new one because the house is so old and outdated, but the lot is very desirable. Also, closing costs can be negotiated, too, depending if the seller wants to leave anything for the buyer in the house (furniture, appliances, ect.) If one party pays another's closing costs, the party paid for has to report the closing cost money given to them as income on the taxes. I'm going to reach out to home investors this spring, just to see what I'm offered. But I'd have to relocate 50+ miles for work to avoid capital gains tax. Quote Link to comment Share on other sites More sharing options...
MKnight82 Posted November 14, 2018 Share Posted November 14, 2018 On 11/1/2018 at 12:45 PM, Shanedorf said: Let's say you buy a house for $ 100, the agent commission is technically paid by the seller. But where did the seller get the money ? From your pocket. And when the seller and his agent set the initial asking price, they looked at comparables, reviewed the appraisals and added the amount of commission to it to arrive at the $ 100 sales price. The sellers know they are paying a commission and they know how much they want to net out of the deal and adjust accordingly. Its a zero sum game So in the end, the buyer is the source of all funds and yes indeed, it did cost you money and no, its not totally free. Its just a little shell game That being said, I strongly concur on getting a professional Realtor to assist your search efforts and a good one is well worth the price. I don't know where you live, but no one in my market does this. Quote Link to comment Share on other sites More sharing options...
skywindO2 Posted November 14, 2018 Share Posted November 14, 2018 I've been looking into buying a town home or a condo recently and friends who have bought in the last couple years have all recommended the real estate agent they worked with. One friend gave me the contact information for mortgage broker. Way back early in the summer, I contacted a representative from where I currently bank and got a pre-approval letter for a loan but wasn't really considering anything at the time. I was mostly curious about what kind of loan I could qualify for to get a better idea of what kind of homes I should be looking at. Anyway, what role does a mortgage broker play in the home buying process? Should I contact one? Should I meet with a broker before a real estate agent first or vice versa? Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted November 14, 2018 Share Posted November 14, 2018 25 minutes ago, skywindO2 said: Should I meet with a broker before a real estate agent first or vice versa? I'd contact multiple brokers. It only takes a couple of days to get pre-approved, IIRC. Quote Link to comment Share on other sites More sharing options...
milanb Posted November 15, 2018 Share Posted November 15, 2018 16 hours ago, skywindO2 said: I've been looking into buying a town home or a condo recently and friends who have bought in the last couple years have all recommended the real estate agent they worked with. One friend gave me the contact information for mortgage broker. Way back early in the summer, I contacted a representative from where I currently bank and got a pre-approval letter for a loan but wasn't really considering anything at the time. I was mostly curious about what kind of loan I could qualify for to get a better idea of what kind of homes I should be looking at. Anyway, what role does a mortgage broker play in the home buying process? Should I contact one? Should I meet with a broker before a real estate agent first or vice versa? A mortgage broker will almost always get you a better rate (and better terms and conditions) than you can get yourself by going to a chartered bank. Here in Canada, most of the discount mortgage providers won't even talk to clients directly, so you have to go through a broker. Pre-approvals will give you a ballpark estimate of how much house you can afford, but are generally not legally binding and are only marginally useful when negotiating a purchase. If you submit an offer to purchase and don't have the full purchase price in cash, you will definitely want a "conditional upon financing" clause regardless of whether or not you have pre-approval, and you will want to give yourself two or three weeks to arrange that financing. You don't really need to talk to a mortgage broker until after you have signed the purchase agreement. It usually takes only a few business days to get a mortgage approved nowadays. You will also need a lawyer and a home inspector. Get your own home inspector, and not one recommended by a real estate agent. Quote Link to comment Share on other sites More sharing options...
Malfatron Posted November 15, 2018 Share Posted November 15, 2018 Just now, milanb said: You will also need a lawyer and a home inspector. Get your own home inspector, and not one recommended by a real estate agent. very much this Quote Link to comment Share on other sites More sharing options...
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