Tips on buying a house - Page 3

Ghoulish Delight · 06-22-2009, 02:06 PM

The agent would not.

Morrigoon · 06-22-2009, 02:20 PM

Moonie: if the agent you're talking about is the buyer's agent, absolutely not.

If the agent is double-siding the deal, then they might not tell the seller "hey, they said they'd be willing to pay more", but they might advise their seller to counter-offer. That's why it's a good idea to bring your own agent to the deal.

Oh jeez, this reminds me of another bit of advice:

DO NOT TALK TO THE LISTING AGENT! I mean, make nicey-nice if you run into them, as you might at an open house if the agent is sitting their own open house (sometimes agents looking to pick up clients will sit open houses for other agents, that's different), or if you and your agent visit a property where the listing agent has to let you in. But don't tell them anything about your moving circumstances, finances, etc. Remember to keep your cards close. Every bit of information will be considered during negotiations.

For example, if you were relocating to an area, and you had a job starting in 3 weeks, and you made the mistake of revealing to the listing agent that you were in a real hurry to close for that reason... don't think for a moment that that wouldn't come into play during the offer/counteroffer stage. They know you need to find a place, and soon, and that they can negotiate harder because you don't have much time to look at other properties. All that agent needs to know is that you'd like a 2-week escrow please, and the why of it is your business.

If you've picked a buyer's agent that you're going to work with, and you still visit open houses, as your agent for a stack of their cards. When you go into open houses, the agent sitting there most likely wants to pick you up as a buyer client. Maybe they're the listing agent, maybe not, and certainly while you're in the market for an agent, it's worth talking to them, you might like them. But it gets annoying after a while when agents are trying to poach you from whoever you've chosen, so once you have someone, you can just say, you have an agent, here's their card if they want to follow up.

One other thing: As a courtesy, if you work closely with one agent for a while, and they've been taking you out to look at houses, etc., then you decide you'd like to check out new construction... please please tell your agent and let them take you there the first time you visit. If your agent is not with you the first time you visit new construction, then the builder cuts them out of the deal if you end up buying that, and you basically rob your agent of the time they've spent with you. They only get a pittance from the builder even if they bring you to them, but at least it compensates them for their time and gas if you've been working closely with them. It really really sucks when you put weeks of work in for someone and they go to new homes behind your back and you get cut out of the deal.

BarTopDancer · 06-22-2009, 02:53 PM

If you can, visit the neighborhood(s) you're considering at different times (weekend afternoon, a Tuesday night). You can get a feel for the type of neighborhood it will be - are there parties going on at night on the weekends? Are a bunch of kids playing the street on a weeknight?

Morrigoon · 06-22-2009, 02:57 PM

Quote:

Originally Posted by BarTopDancer

If you can, visit the neighborhood(s) you're considering at different times (weekend afternoon, a Tuesday night). You can get a feel for the type of neighborhood it will be - are there parties going on at night on the weekends? Are a bunch of kids playing the street on a weeknight?

Sound advice!

Betty · 06-22-2009, 03:51 PM

Quote:

Originally Posted by BarTopDancer

If you can, visit the neighborhood(s) you're considering at different times (weekend afternoon, a Tuesday night). You can get a feel for the type of neighborhood it will be - are there parties going on at night on the weekends? Are a bunch of kids playing the street on a weeknight?

We did this looking for apartments and what a difference it makes. when I looked at one place, it was street sweeper day and there wasn't a car on the street. That place had serious parking issues every day but Tuesdays around 9am.

Morrigoon · 06-22-2009, 02:57 PM

Yeah, you can cruise open houses if you just want to get an idea of areas, but to look seriously, you need an agent.

Here's why:

Open houses are done for two reasons: to appease a seller, and to meet buyers. Only a very small percentage of homes sell from the open house. It does happen, but not as often as half-hour tv shows would like you to believe.

But buyers definitely visit open houses, usually before they have an agent. So agents sit open houses (their own listings, or another agent's listings) as a way to meet these folks and get them as clients. Unless you're the listing agent, you don't give a rat's patootie if the client wants to buy the house you're sitting in, or another house. Even if you are the listing agent... it'd be nice if they want to buy your listing, but you're more than willing to show them any other house they might like to buy too. A sale is a sale, whichever side of the deal you're on.

The good news in this situation is this: the agent sitting the open house is going to be more open than you expect, to hearing that the house you're in is not quite what you're looking for. And the smart agents will either have a stack of listings similar to that house with them, or will be ready to hop on the MLS to find some. They will often be able to show you those homes that very day.

Some homes might be great deals but bad open houses. For example, if it's too far inside a neighborhood, it probably won't be a desirable open house (for an agent) because people coming in off the street might easily get lost on their way there, so you end up with less traffic through the house. Or myriad other reasons along those lines. So not every house on the market gets held open, or if it does (to appease a seller), it might not be often. You don't want to miss those deals by only looking at open houses, ergo, you need to talk to an agent to get access to those houses.

Really good listings get into contract quickly. This can lead to some headaches with REO's (bank owned properties). Some REOs are listed waaay below the price they'll end up going for as a way to attract buyers, then they get multiple offers and get into a competitive bidding situation.

Now, areas like Perris and Hemet are probably moving at a different pace than Orange County, so this might not be as big of a problem, BUT, the advice remains the same:

If you like the property and you are comfortable with your offer price, do not waste time, write the offer. Be prepared between yourselves, know what it is you want so that you recognize it when you see it and are prepared to act quickly. Bad deals languish on the market, but great deals go quickly.

You can get an idea how hot a property is by looking on the kitchen counter (or whatever central drop spot might be most prominent in the house.) Agents who visit a property drop their card off for the listing agent to see they've been there. If there's a pile of cards, then a lot of people are looking at that house. All the more reason for a sense of urgency.

Talk to your lender about being prepared to write you a pre-approval that matches your offer. After all, you don't want to submit an offer for $250000 with a pre-approval that says you can go up to $300000 - that's just asking for a high counter-offer.

3894 · 06-22-2009, 04:13 PM

Quote:

Originally Posted by Morrigoon

Yeah, you can cruise open houses if you just want to get an idea of areas, but to look seriously, you need an agent.

Everything in your post is really informative and true but my point about the open houses is to get a hands-on idea of the market before contacting an agent. This would be way before Betty would be ready to make any kind of offer. It's just to look and see real estate without having an agent along.

When Betty has a feel for the market, then definitely, absolutely and positively, she should work with an agent. It's the most streamlined way of getting to a deal.

But agents work for the sellers, as has been said in this thread. It is in the agent's interest to get the highest price possible. It can only help for Betty to come prepared.

Ghoulish Delight · 06-22-2009, 04:19 PM

Quote:

Originally Posted by 3894

But agents work for the sellers, as has been said in this thread. It is in the agent's interest to get the highest price possible. It can only help for Betty to come prepared.

As has also been said, a seller's agent works for the seller. A buyer's agent works for the buyer. It is in the agent's interest to make a sale. If her agent isn't working to get the price that Betty wants to pay, the agent makes $0 because Betty doesn't buy the house. No matter what, Betty is the one in control. If the agent isn't working in her interest, the agent doesn't get a sale, the agent doesn't get a comission.

Kevy Baby · 06-22-2009, 03:10 PM

More RE advice: Buy low, sell high

katiesue · 06-22-2009, 03:13 PM

We just went through this. Definately get a good agent. Also you can sign up for services, either through your agent or another random agent, that will send you daily upates of new homes listed in your target area. You can specify area, price range, number of bedrooms etc. I found this superhelpful. Helps you see what's out there. Service was free. I also did a lot of my own internet searches. Helped to see what was out there, what the price ranges were things like that.

We had lots of issues as mostly Condos were in our price range. And lenders aren't currently condo friendly. They have a lot of specifications, depending on the lender, as to what they want to finance a condo. A larger owner occupied as opposed to renter ratio was one of the biggies.

We had one offer fall through because the condo association was going through a major assessment because of grading/drainage issues. It didn't affect the unit we were looking at - but no one would fund it anyway.

Also if you can find a good mortage broker it really really helps. The lenders are changing what they want from a buyer daily almost. Our closing had one small hicup but because I had a really good mortage broker I had no issues at all with the actual loan.

And if you can at all afford it - don't give notice on your current home until you have closed and have keys on the new one. I know a lot of people who have had things fall apart at the last second and if you've given notice you can end up in a huge mess.

Also make sure you know what the HOA fee or assessments are- if any. In the area we were looking at they run $350-400ish per month. That's for a condo but the homes can be $100-150. Just somthing else to keep in mind when you're thinking of what it's actually going to cost you.

06-22-2009, 02:06 PM	#1
Ghoulish Delight I Floop the Pig Join Date: Jan 2005 Location: Alternative Swankstyle Posts: 19,348	The agent would not. __________________ 'He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me.' -TJ
	Submit to Quotes

06-22-2009, 02:20 PM	#2
Morrigoon I throw stones at houses Join Date: Jan 2005 Location: Location: Location Posts: 9,534	Moonie: if the agent you're talking about is the buyer's agent, absolutely not. If the agent is double-siding the deal, then they might not tell the seller "hey, they said they'd be willing to pay more", but they might advise their seller to counter-offer. That's why it's a good idea to bring your own agent to the deal. Oh jeez, this reminds me of another bit of advice: DO NOT TALK TO THE LISTING AGENT! I mean, make nicey-nice if you run into them, as you might at an open house if the agent is sitting their own open house (sometimes agents looking to pick up clients will sit open houses for other agents, that's different), or if you and your agent visit a property where the listing agent has to let you in. But don't tell them anything about your moving circumstances, finances, etc. Remember to keep your cards close. Every bit of information will be considered during negotiations. For example, if you were relocating to an area, and you had a job starting in 3 weeks, and you made the mistake of revealing to the listing agent that you were in a real hurry to close for that reason... don't think for a moment that that wouldn't come into play during the offer/counteroffer stage. They know you need to find a place, and soon, and that they can negotiate harder because you don't have much time to look at other properties. All that agent needs to know is that you'd like a 2-week escrow please, and the why of it is your business. If you've picked a buyer's agent that you're going to work with, and you still visit open houses, as your agent for a stack of their cards. When you go into open houses, the agent sitting there most likely wants to pick you up as a buyer client. Maybe they're the listing agent, maybe not, and certainly while you're in the market for an agent, it's worth talking to them, you might like them. But it gets annoying after a while when agents are trying to poach you from whoever you've chosen, so once you have someone, you can just say, you have an agent, here's their card if they want to follow up. One other thing: As a courtesy, if you work closely with one agent for a while, and they've been taking you out to look at houses, etc., then you decide you'd like to check out new construction... please please tell your agent and let them take you there the first time you visit. If your agent is not with you the first time you visit new construction, then the builder cuts them out of the deal if you end up buying that, and you basically rob your agent of the time they've spent with you. They only get a pittance from the builder even if they bring you to them, but at least it compensates them for their time and gas if you've been working closely with them. It really really sucks when you put weeks of work in for someone and they go to new homes behind your back and you get cut out of the deal. __________________ http://bash.org/?top "It is useless for sheep to pass a resolution in favor of vegetarianism while wolves remain of a different opinion." -- William Randolph Inge
	Submit to Quotes

06-22-2009, 02:53 PM	#3
BarTopDancer Prepping... Join Date: Jan 2005 Location: Here, there, everywhere Posts: 11,405	If you can, visit the neighborhood(s) you're considering at different times (weekend afternoon, a Tuesday night). You can get a feel for the type of neighborhood it will be - are there parties going on at night on the weekends? Are a bunch of kids playing the street on a weeknight? __________________ Spork is the new MacGyver Postcards From My Edge
	Submit to Quotes

06-22-2009, 02:57 PM	#6
Morrigoon I throw stones at houses Join Date: Jan 2005 Location: Location: Location Posts: 9,534	Yeah, you can cruise open houses if you just want to get an idea of areas, but to look seriously, you need an agent. Here's why: Open houses are done for two reasons: to appease a seller, and to meet buyers. Only a very small percentage of homes sell from the open house. It does happen, but not as often as half-hour tv shows would like you to believe. But buyers definitely visit open houses, usually before they have an agent. So agents sit open houses (their own listings, or another agent's listings) as a way to meet these folks and get them as clients. Unless you're the listing agent, you don't give a rat's patootie if the client wants to buy the house you're sitting in, or another house. Even if you are the listing agent... it'd be nice if they want to buy your listing, but you're more than willing to show them any other house they might like to buy too. A sale is a sale, whichever side of the deal you're on. The good news in this situation is this: the agent sitting the open house is going to be more open than you expect, to hearing that the house you're in is not quite what you're looking for. And the smart agents will either have a stack of listings similar to that house with them, or will be ready to hop on the MLS to find some. They will often be able to show you those homes that very day. Some homes might be great deals but bad open houses. For example, if it's too far inside a neighborhood, it probably won't be a desirable open house (for an agent) because people coming in off the street might easily get lost on their way there, so you end up with less traffic through the house. Or myriad other reasons along those lines. So not every house on the market gets held open, or if it does (to appease a seller), it might not be often. You don't want to miss those deals by only looking at open houses, ergo, you need to talk to an agent to get access to those houses. Really good listings get into contract quickly. This can lead to some headaches with REO's (bank owned properties). Some REOs are listed waaay below the price they'll end up going for as a way to attract buyers, then they get multiple offers and get into a competitive bidding situation. Now, areas like Perris and Hemet are probably moving at a different pace than Orange County, so this might not be as big of a problem, BUT, the advice remains the same: If you like the property and you are comfortable with your offer price, do not waste time, write the offer. Be prepared between yourselves, know what it is you want so that you recognize it when you see it and are prepared to act quickly. Bad deals languish on the market, but great deals go quickly. You can get an idea how hot a property is by looking on the kitchen counter (or whatever central drop spot might be most prominent in the house.) Agents who visit a property drop their card off for the listing agent to see they've been there. If there's a pile of cards, then a lot of people are looking at that house. All the more reason for a sense of urgency. Talk to your lender about being prepared to write you a pre-approval that matches your offer. After all, you don't want to submit an offer for $250000 with a pre-approval that says you can go up to $300000 - that's just asking for a high counter-offer. __________________ http://bash.org/?top "It is useless for sheep to pass a resolution in favor of vegetarianism while wolves remain of a different opinion." -- William Randolph Inge
	Submit to Quotes

06-22-2009, 03:10 PM	#9
Kevy Baby Chowder Head Join Date: Jan 2005 Location: Yes Posts: 18,500	More RE advice: Buy low, sell high __________________ The thing about quotes on the internet is that you cannot verify their validity. - Abraham Lincoln
	Submit to Quotes

06-22-2009, 03:13 PM	#10
katiesue Senior Member Join Date: Apr 2005 Location: San Diego Posts: 4,678	We just went through this. Definately get a good agent. Also you can sign up for services, either through your agent or another random agent, that will send you daily upates of new homes listed in your target area. You can specify area, price range, number of bedrooms etc. I found this superhelpful. Helps you see what's out there. Service was free. I also did a lot of my own internet searches. Helped to see what was out there, what the price ranges were things like that. We had lots of issues as mostly Condos were in our price range. And lenders aren't currently condo friendly. They have a lot of specifications, depending on the lender, as to what they want to finance a condo. A larger owner occupied as opposed to renter ratio was one of the biggies. We had one offer fall through because the condo association was going through a major assessment because of grading/drainage issues. It didn't affect the unit we were looking at - but no one would fund it anyway. Also if you can find a good mortage broker it really really helps. The lenders are changing what they want from a buyer daily almost. Our closing had one small hicup but because I had a really good mortage broker I had no issues at all with the actual loan. And if you can at all afford it - don't give notice on your current home until you have closed and have keys on the new one. I know a lot of people who have had things fall apart at the last second and if you've given notice you can end up in a huge mess. Also make sure you know what the HOA fee or assessments are- if any. In the area we were looking at they run $350-400ish per month. That's for a condo but the homes can be $100-150. Just somthing else to keep in mind when you're thinking of what it's actually going to cost you. __________________ My life is so exciting I can hardly stand it.
	Submit to Quotes