Tips on buying a house

[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.

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]

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]

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.