| Author | Message | ||
     Doughnut |
I sold my beloved S2 so that I could get closer to buying a home for my fiancee' and myself. Just wondering if anyone has any advice about house looking, buying or words of wisdom. So far it has been a real pain in the arse. Have found the house we really like, but I don't think they will take what I am willing to give, so I am continuing to look at other houses. | ||
| Bent_mind |
Don't let the RE agents pressure you. Also, their interpretation of the the English language is amazing. Get an inspection, don't go for the lowest price here, it takes considerable time to thorough. Don't be afraid to walk from a deal, and don't fall in love with a property. | ||
| Newfie_buell |
We just bought one, decided last month we needed a house. Picked one out in less than a week, needs an interior renovation but not a problem. You will know when you find what you want and need. | ||
| Rkc00 |
Location, Location, and Location. I wish I had taken my own advice. Mike Long Island, NY 06 XB12X Black/KickAsh of course | ||
| Chevysolid |
Most important (in my opinion) is to find 1 agent that you trust and/or know personally and deal with them and them only.... They will work for YOU and with the otehr agents. They still get part of the commision as does the agent for the paticular residence... but at least around here everyone sells everyone else's properties... It makes it so much easir. 2.. Don't set your heart on a paticualar place and then end up paying to much... Decide first how high you are willing to pay for that paticular residence and don't waiver (at least not by much) 3. Take the time to look at a lot of houses... If you have an agent you like you can easily sit down with them and narrow your search quickly from 100 to 5 or 6 and then go look at them. 4. Look for houses a little above your price range and you can always offer low.. ( I bought a house for almost 16k less than what it was listed and it was not over 100k) don'e be scared to offer low... it doesn't cost anything to offer... only when it is accepted (round here any way) Just a few things that helped me... Good Luck | ||
| Kdan |
My house is for sale! The beloved Ex has just lowered the price too! Anyone want a custom ranch in primordial woods on 4 & 1/2 acres? I designed and built it myself. | ||
| Mike_bolts |
I know the feeling... but once you get into your own four walls you will never go back. My advise to you is this... 1.) Don't sign the agent's agreement that states you must buy through them. 2.) Go online and find out all about your realestate market. In Houston we have www.har.com as a great resource. 3.) Once you settle on a good place that you might consider making an offer on, check it out during all hours of the day. Knock on the neighbors door and chat him up, you'd be surprised what they have to say about the drug dealing other neighbor, the mold problem next door, etc. etc. 4.) Find your own inspector and go over the place thoroughly. Ask about mold, cracked slabs, etc. be a pain in the a$$, there is no reason to be a nice guy this is a serious investment. 5.) Take everything "your" agent says with a heavy dose of salt. They want you to buy the house as expensive as possible for the comission. Consider going with a "buyers agent" which only represents buyers not sellers within their own company. Good luck!!! | ||
| Gearhead |
Everything above is great advice! One thing I would add is to decide if you're willing to start with a fixer-upper. It can be a way to buy up at a lower cost. Rich people trash houses too! I know of a guy who bought into a very high dollar neighborhood here by buying a house an elderly woman had lived in with over 20 cats. The place stunk to high heaven and wouldn't sell. He REALLY low balled the seller and got it. He went in and totally gutted the place and last I heard (sometime ago) he had the same money in it that they originally wanted for it but of course now it's completely updated. My wife and I bought a house out of an estate which needed lots of updating but it has great bones! We're not done but have made great strides on the place. You've got to have a spouse who can live with the mess though when you tackle the next new project and I'm fortunate that my wife gets it and is willing to dig in with me! Of course you've got to be willing to get your hands dirty, spend lots of time at the home centers and spend lots of money on cool tools but there are lots of resources out there if you're willing. It can be a long process also so a fair amount of patience is required unless you've got a large chunk of cash to start with. You'll miss some weekend riding too  Just one more note, because we were always working on the house our neighbors quickly became our friends because they saw a transformation that they were happy about as well. Now I'm the resident Bob Villa but it's made for a nice environment to live in. It doesn't hurt that one of my neighbors (boomerm2)now rides a Buell also and a former neighbor recently bought one and stops by regularly to talk shop. Just my 2 cents but it's working for us. | ||
| Fusa21 |
You definitely want to pick the right neighborhood, every town has good and bad areas. I would look for the fixer-upper, they can be had for a bargain. You can't imagine what a $4000 set of custom Home Depot cabinets can do to a 1970's kitchen. It could add $10k right off the bat. I recommend the Buyers Agent too, I listened to all kinds of advice when we bought our house, and they were the most informative. Also check the local property assessments, they can tell you a lot about the property, including if the owner has tried to sell the house as 4 bedrooms but the city lists it as 2, there could be a Building Code violation. Happy hunting. | ||
| Oldog |
pay attention to the suroundings and drainage! I purchased a house here in Wilmington NC, lovely landscaping discovered shortly after moving in that the back yard flooded when it rained, we have hurricanes here and the house almost flooded, a time or two. get familair with the creeks and drainage in the area to see if its an issue. | ||
| Mtnchld |
In regards to getting a Mortgage- *DO NOT pay Discount Points *Do NOT pay more than 1% origination *DO NOT let them put a Pre-payment Penalty on your loan and ask the closer at the closing to verify it wasn't 'slipped in'. *Check the original Good Faith you get against the closing statement when you close. If there is an issue SAY SOMETHING. They will most likely correct things than lose the deal. (you'd be surprised how many mtg co's try to slip additional fees in at the last minute in hopes the buyer won't catch it) *Watch rates, don't just listen to your Loan Officer and take his word for it. *Make application with TWO different Mortgage Companies. The realtor will refer you their 'Prefered Lender', but shop around. It's this blind faith that gets people ripped off. I have been in the Mortgage Industry for 12 years and am very active with a couple National groups regrading Anti-Predatory Lending Laws and Mortgage Fraud Prevention and these are the basic recommendations we give to people. Decide what kind of loan is best for you don't let someone 'sell' you a loan. *Interest Only loans are good if you don't plan to stay in the property more than 5 years. Other than that it probably won't benefit you. *30 yr loans can be reduced to 18 years by making 1 extra payment to principle a year and give you the flexibility of a lower payment than a 15 year. * An ARM isn't really a safe gamble with the way rates are adjusting upwards. *100% financing can work for you IF you find the right program. Do your homework and ask A LOT of questions. If you're not satisfied with the answer ask someone else in the biz. Best of luck :} (Message edited by mtnchld on January 19, 2006) | ||
| Taxman |
there is a lot of good advise here. i'd like to offer some also. this is pretty much what i deal with every day at work. i am a Tax Assessor for the Michigan Dept. of Treasury. i do appraisals for the purpose of property taxation. call me the bad guy if you like but it's what i do. the first thing i would do is get your financing squared away. if you know what your interest rate is you can figure out exactly what your monthly payments will be. if you know your interest rate will be 6% and you can afford $700/month then you can offer $117,000. secondly don't forget that when you buy a home you have house insurance (most lenders won't let you go without). you will also have to pay property taxes (here in michigan that can be as high as $4,000/year on a $120,000 house. thats roughly $333/month just for taxes. make sure when your planning a budget to include estimates for these. try and find an area that is improving. it will help your home increase in value faster than a stable or declining neighborhood. if your thinking about a subdivision that still has many vacant lots one thing to keep in mind is that houses take much longer to sell if they have to compete with vacant lots (why should i buy this house when i could build exactly what i want). this is all general information. markets can very greatly even from block to block or subdivision to subdivision. and your situation with pertinant laws and dealings with realtors will change from state to state. if by chance any of you are looking at purchasing a home in the state of michigan. i would suggest that you contact me. there are a lot of little things that can be done to save money on property taxes. | ||
| Rubberdown |
Make sure you review the past utility,tax, and other reoccurring bills to avoid future shock. | ||
| Tripp |
check this out http://www.msnbc.msn.com/id/10922932/} | ||
| Arbalest |
Please remember that the broker does not have your interest at heart. No matter how friendly he/she seems, the broker is NOT your friend. The broker works for the SELLER. Be very careful. | ||
| Mikej |
In Wisconsin there is a disclosure law on the books that an agent or broker is required to inform house buyers and sellers of. By default, in Wisconsin, the agent is the seller's agent. In some other states by default the agent is the buyer's agent. In Wisconsin there is a buyer's agent contract whereby the agent becomes the buyer's agent and the buyer changes from a customer to a client, but this status then has to be disclosed to listing agents and sellers so everyone should know who everyone is representing. There are also seven duties owed to all parties and three additional ones owed to the client (such as loyalty to the client). There is also a rule or law that states an agent must represent the interests of the client over that of the agent's interests. Yeah, I got my license in 2005, been kind of slow putting it to use though, who knows what 2006 will bring. Rough to do part-time though. Jonathan, I'll be in the office on Friday afternoon if you want me to do some more research for you. Tripp, some regional markets will be hit hard, others will still be growing, like someone above said - it's all about location. I'm personally more concerned about the new credit card regulations and payoff schedules and what that will do to the general public than I am about the real estate market. | ||
| Kevyn |
I was a licensed agent back in the early 80's but interest rates were off the wall...have been a licensed agent since '98 and there is much good advice above. To which I'll add... Get your financing straight NOW!! Before you start shopping for a home. Mtnchld is dead-on!! Location Location Location---will influence what you pay now and what you sell for later as much or more so than your updates. And you will sell later. RE Brokers are no one's friend. They are loyal to themselves and their wallets. They are not in business to be 'your friend' or 'help' they are in the business of self enrichment. Find an agent that 'lists' and 'sells'. A dedicated Buyers Agent will most often create an atmosphere of confrontation with the sellers---not conducive to productive negotiations that address your true and realistic concerns. If you find a home listed, DO NOT buy through ANY agent associated with that brokerage!! Do I need to repeat that? Inspections are often misleading...paying more is not a guarantee for quality. Inspectors can nitpik a house to death and make it seem unlivable with so many 'faults' that buyers get scared and walk away from the deal. Interviewing an inspector is as important as interviewing an RE agent. Interview several; review their inspection reports before you hire them and try to get a feel for whether of not they are familiar and experienced in the area where you are looking. Get your calculator out. DO NOT accept estimates or 'good faith' quotes. If an agent can't tell you to within $10 what closing costs will be--perhaps it's time to start looking for a more experienced agent with better association at title companies. Stay in contact with your lender at all times. Stay in contact with your chosen RE agent and your agent should call you immediately with any and all updates and provide copies of ALL transaction related materials. Keep it all together in one folder. Stay organized---as painful as that seems and as much time as it takes---keep your own paperwork straight. The agent is there to assist you and guide you through the process. Take time with your wife and discuss and actually write down what you WANT and what you NEED and where you're willing to compromise amenities for price. Know what repairs you can make and are realistically willing to make on your own versus what repairs you need a contractor to make for you. 'Low Ball' offers insult the sellers and set the stage for conflict later in negotiations. Look at comparable properties and decide what is a realistic offer for the property you want. Agents, despite what's been said already, should know an area and should guide you towards a realistic offer that could close beneficially to all parties involved. Remember, eventually you will sell; perhaps it would be useful to keep that in mind as you contemplate a purchase offer... ...avoid For Sale By Owners...notify an agent you have a relationship with, let that agent contact the FSBO on your behalf and let that agent represent you during the negotiations. If the FSBO is unwilling to work with an agent---WALK AWAY quickly. Unless you are a licensed and practicing RE or contract attorney use an agent. The contracts are legally binding agreements with specific time sensitive and performance clauses that could cause financial penalties if violated. Have fun...it's an emotional roller coaster. | ||
| Ryker77 |
Buy a house that is within you budget including "IF" you have a bike wreck and are unable to work for months on end. You might be able to currently afford a payment of 1,000 per month. But "if" something happens how long can you hold out. Remember your NOT buying a house. You signing a loan to pay the bank XXXX.XX amount for XX years the you'll own the home. __ also be leary of "buy a house and in three years it will be worth double" I know alot of people that caught the tail end of the house boom market in the Atl area. They did NOT come out ahead and many who sold there house in 1-3 years didn't even break even. | ||
| Doughnut |
I looked up some info on the house I like: Records say the Building value is $90,600 and the land value is $14,400 for a total of $105,000. Is this what the house is "fair market value"? Is this what the house "worth? They are asking $156,900. I would like to get it for $125,000. Is my offer way off base to be considered. The house has been on the market for about 150 days. | ||
| Dana P. |
Doughnut yes it can be worth that.That is just the Assesment value.Did you get a pre-approval on yourself yet to see what you are capable of affording and try different mortgage holders to see which has got the most to offer you. My sister owns Heritage Title in Racine they may be of some assistance on your closing costs if you request them which you can.House values typically go up in your/my area 3% a year without the owner doing anything raise the value. The assesment value is basically a value put on your home from what the city or town see's you have done to your home without knowing whats inside that has been done.Also they look at the neighborhood and a 2 mile square radius on values to determine yours. Also schools,churches shopping,etc. can play a roll in it.Hope this helps.If your looking for a Realator call Coldwell banker ask for Joan Hubbard tell her I sent ya she's a great lady and smart.Also my nephew sells Mortgage through Well Fargo which he is my sisters son.He's really good at getting thing approved you can trust. Let me know if I can be of some assistance in any way?? | ||
| Ryker77 |
Is this what the house is "fair market value"? Is this what the house "worth? its only worth what somebody is willing to pay. Unless you get lucky and find an idiot willing to sell in a hurry for a loss. You will pay your "fair market value" thats what you think is fair. If you need to sell the house in a year. At that time those buyers on the market will determine there "market value" for the house. Ask your realtor to show you a list of comparable houses that have been sold in the last 6 months. like other people have told you-- don't be afraid to give a low ball intial price offer. | ||
| Mikej |
In Wisconsin about the only way a buyer will get a CMA for a house is with a Buyer's Agent agreement. A buyer can however go down to their local city hall and do their own research on nearby properties that have closed. My town has the records on computer accessible to the general public by simply going in during their office hours. That's what I did when we were buying our house, which was before I got my license and access to the MLS system. Additionally the local main newspaper here ( jsonline.com ) has a section in their real estate section called "Done Deals" where they list all the closings each week. Takes a bit of work but someone could search through the Done Deals for a local town and find out what their local market has been doing, helps to have a good key word though to help with the search for data. http://www.jsonline.com/homes/donedeals.asp | ||
| Phat_j |
if your handy, look into a house or 2 from hud (housing and urban development) i'm in the process of buying one right now, at about 50k below market value, it needs about 10k worth of work......... good value to me. | ||
| Kevyn |
Comparable homes are the same or nearly same sq.ft.; architecture, lot size, bedrooms, bathrooms, basement. From here you have to consider fit and finish, updates, surrounding homes and neighborhood. 6 months is a good rule of thumb; you really need to get together with an agent and examine the market for that particular block of that neighborhood. Is your selected home in a builders subdivision? Easy to find comparable properties this way. Ask relatives, friends and neighbors to recommend a realtor they have done business with. Contact the recommended realtor's and see what happens. No need to sign an exclusive agency agreement, it's a gimmick IMHO. A good realtor will interview you as carefully as you interview them. You'll know at the end of the interview whether or not you want to work with that realtor and the realtor will know whether or not they want you as a client---i.e., whether or not you're ready to buy and whether or not you'll close. The real estate game is not black and white, the rules always change without announcement or explanation. You need to remain alert, vigilant, organized and... HAVE YOUR MONEY READY because when the right house appears you'll need to move decisively and quickly. HAVE YOU GONE SHOPPING FOR MONEY YET!! | ||
| Mr_grumpy |
Only thing I can add to the above. If it don't smell right, walk away. Buying a house is like the old saying about marriage. "Marry in haste, repent at leisure" | ||
| Hans |
#1: Be patient #2: If you have found the house that gives you both the feeling: "This is IT", try to imagine yourself as seller:  Then you get a clear eye for te weak spots. Hans | ||
| Swampy |
The realtor, or agent or what ever you call them typically is just a commision weasel. Insist that they present whatever lowball hairbrained offer you comeup with....in your presence. That at least gets the seller talking. The seller is just a normal person trying to sell. Try repos for some really great deals. VA loan repos, usually you have to already have the financing inplace, or cash, but those can be the real "Lets make a deal" bargains. Look close at the houses that have been up for a while. | ||
| Kevyn |
..."The realtor, or agent or what ever you call them typically is just a commission weasel." Not sure about the rest of the nation, but in Missouri, it's customary for the seller to pay both listing and buyers agent commission from the listing side...the listing agreement specifically states either a percentage of the sales price or a fixed amount to be paid to the cooperating brokerages at closing. Agents work under the sponsorship of brokers; agents have a contract with the broker and take a 'split' of the commission paid to the brokerage. In Missouri, it's illegal for an agent to accept a commission from a customer. All 'commissions' paid to an agent must come from their sponsoring broker. In Missouri, commission is paid from the closing sales price on the HUD closing documents and it's illegal to have any undisclosed commission agreements. Consider that the realtor or agent won't get paid a dime until the deal closes. All the time they spend with you and all the activities they do on your behalf are gratis--free. Some agents, busy agents, will simply churn through customers; get them under contract, turn the transaction over to their 'transaction coordinator' and move on to the next customer. After writing the purchase contract you may not see that agent ever again...but they will get you into their client base where you'll be 'dripped' with junk mail to keep the agents name in front of you. Yes, it's a business and you're a customer. It's not personal, just polite and efficient. You get the house you want at an agreed on price and the agent gets paid. End of story. Other agents will stick beside you through the whole purchase process; from the first showing to the day of closing they'll be there. You will get lots of phone calls from the agent and you'll be able to reach the agent easily by phone. The agent will keep you updated, the agent will be there for the inspection and sit with you and present options for the inspection resolution; especially when it gets tough and the sellers say no. The agent will stay in contact with your lender and know the status of your loan process and be able to calculate your closing costs to say, within $100! The agent will have arranged for closing at an office convenient to you at a time convenient for you and will be using a reliable title company(title insurance is of maximum importance! Land America, Commonwealth, Stewart Title are the most well known underwriters/insurers of title. Your title search is CRITICAL to ownership---it guarantees that there are no undisclosed liens or claims to your property. A Stake Survey will determine encroachments from adjacent properties on to your property and encroachments of your property on to adjacent property and it will disclose all utility easements; and it will give you a map of your property that shows exactly where your home is in relation to your property lines. Do not waste money on a spot survey---get a full Stake Survey to guarantee the best and most absolute title insurance.) they have worked with before where they know the closer and know what to expect at closing. The agent will insist that your lender send a representative to the closing table to explain all the loan documents--instead of having the title company closer present the loan doc's and not be able to answer questions about why specific charges appear on the loan documents and charge YOU for a service that the lender should provide.(Sometimes, a lender will have you come to their office prior to closing to sign the financial loan documents and give you a bank check to take to the closing office---your agent will know this and have it all coordinated to go smoothly for you.) ..."Insist that they present whatever lowball hairbrained offer you comeup with....in your presence." In my relatively short career as an agent, I've never had a buyers agent insist on being present to have me present 'whatever lowball hairbrained offer' a buyer has come up with. In fact, I've only had one 'lowball' offer accepted(against my professional advice) by the seller and that was because the seller just really wanted to get rid property. I was completely surprised because the property was without doubt worth more on the market. The seller simply wanted to walk away. What started as a Residential Sales Contract became a Special Sale contract with the seller responsible for NOTHING aside from delivering a clean title at closing. The buyer assumed total responsibility for all necessary repairs, inspections and occupancy permits. If a seller hires me to represent them in a transaction I have a fiduciary responsibility to represent their interests and buyers presenting 'lowball hairbrained' offers need to understand that they'll be purchasing the property in 'as-is' condition and and be prepared to remedy any municipal code or occupancy conditions from their pocket and not to expect any negotiations during any inspection resolution presented... |
