KSUFans Archives
Fan Life => The Endzone Dive => Topic started by: JavaCat on May 19, 2008, 02:05:38 PM
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Anybody got advice on buying a home? I'm starting the process of buying my first home. I'd particularly be interested in advice on getting a loan. Anybody bought recently? What kind of rate did you get? Who'd you go through? According to Bankrate.com the national average on a 30-year fixed is 5.76%. I filled out information online for a pre-approval through the Credit Union, but I'm guessing I won't get the best rate through them. My bank is Commerce bank so I'll probably see what they give me as well. If it matters, I'm looking to buy in the KC area (Prairie Village, Fairway, Mission, etc.).
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Yeah, don't just go to one place and fill out an application. You may have to shop around and it doesn't hurt your credit anymore by getting approved by 50 places vs. just one. If you have credit above 720 you can get the rate quoted without paying much up front. That is assuming, of course, that you have 20% up front. If you don't you can still borrow what you need but won't get as low of a rate any may have to pay fees. You also have the option of doing an 80/20 which I we did. You can then get the 80% locked in at a low rate and the 20% at a higher rate. This isn't that bad because you can pay off the 20% quickly with any additional funds you may have each month. I would recomend against getting one large loan above 80% of your house's value given the housing market today as it may be a long time before you can stop paying the PMI and it isn't tax deductible like the whole 80/20 loan. This is all advice you can get from a mortgage broker if you go that route. My advice would be to NOT hire a buyers agent. You can every single thing he can on your own and you will have much more negotiating power without one as their fees come from the seller. Plus, you can easily find houses for sale in the neghborhood you like without some jerkass dragging you around and getting a cut. When you find something you really like don't sit around and think about it or go to see a bunch more houses to be sure as it will prbably be gone before you get back to make an offer. There is a reason you like the place and it is the same reason a lot of other people will like it too. Start out offering about 10% less than asking price (depending on where you live) as a general rule of thumb. The worst thing that can happen is they counter higher and you go from there.
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Don't get in a hurry to buy a house. If you have student loans or other debts, work on paying those off first. Then save up so you can make a sizeable down payment on the house. Remember, you can get much better rates on shorter term loans. The more you can put down, the better off you will be. No payment should be more than 25% of your take-home pay.
Don't buy into the hype that it's better to buy a house since the interest the loan accrues is tax deductible. It does not make sense to spend $10,000 in interest just to get that $2,000 tax break. You'd be a whole lot better off saving some big bucks for 3 or 4 years while renting and then looking for a house.
A house is a money sucker. These are "fees" that don't get added in to the cost of a house. Repairs, maintenance and improvements can and will put a huge dent in your budget. There are things you will need to buy in order to do these things, like a lawn mower, tools, furniture, etc. If you intend to keep a decent looking lawn, then things like fertilizer, seed, and any equipment rental (aerators, etc) will run quite a bit per year. Utilities will also be much higher than in any apartment.
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rent unless you hate doing fun sh*t with your weekends.
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rent unless you hate doing fun sh*t with your weekends.
Yup... away games in the fall are a time to de-thatch and overseed the lawn.
And don't forget all those wonderful mornings that you have to call in to work because you have to have a plumber fix a busted pipe.
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Pay $100 a month to have someone care for your yard and shovel your snow. SLTexpense imo.
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find a good realitor you trust. with the way the market is, just go around and lowball the crap out of people as long as you are not in a hurry.
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find a good realitor you trust. with the way the market is, just go around and lowball the crap out of people as long as you are not in a hurry.
Why do you need the realtor if you aren't selling? Buyer's agents are for chumps imo.
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rent unless you hate doing fun sh*t with your weekends.
Yup... away games in the fall are a time to de-thatch and overseed the lawn.
And don't forget all those wonderful mornings that you have to call in to work because you have to have a plumber fix a busted pipe.
You guys are huge pessimistic fools. There is a lot to be said for owning your own house and taking care of your own. You won't have to call a plumber and you won't have to miss a bunch of work. Even if you do, who cares...you shouldn't be living on no vacation and if your work doesn't understand, then frack them.
I enjoy being outside and taking care of my lawn. One of my biggest pet peeves is HOA where you pay to let someone else shovel and mow. Don't spend extra money on things you can do yourself. Not only is it good exersize, you might feel like less of a bum.
Take that money and put it towards a big screen or remodeling the basement (or both).
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I wasn't referring to "taking care of the lawn". I was referring to all the electrical, plumbing and HVAC type stuff that generally requires expertise that you lack.
Sure, most people can figure out how to get it done, but it ends up taking forever and usually sucks.
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The best way not to get screwed on the interest is to make additional payments toward the principle each month. As little as $25.00 a month will go a long, long way. It can easily mean that you're only making payments for 20-25 years rather than for 30 years.
HOA fees suck ass and are to be avoided, IMO.
Overall, owning is way, way better than renting because you'll actually get money back when you decide to move. In many cases, the property appreciates quite nicely. There's a reason many people say that real estate is the best investment, you know. When owning is an option, renting is nothing more than throwing money away.
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Generally speaking, how much of a down payment (%) do you need to make to get the best interest rates?
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Generally speaking, how much of a down payment (%) do you need to make to get the best interest rates?
20%
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I wasn't referring to "taking care of the lawn". I was referring to all the electrical, plumbing and HVAC type stuff that generally requires expertise that you lack.
Sure, most people can figure out how to get it done, but it ends up taking forever and usually sucks.
Yeah, we built our house so we won't have to worry about that stuff. Once stuff gets to the age it starts to break down we will be in our next house anyway. Another thing I would add is that I will never own an old home unless the area I am moving has no new construction. The cost to have one built is no more than buying an older home and I never plan on adding a roof/HVAC/insulation/etc. to a house I own for the rest of my life. Makes it very easy to budget time and money.
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depends on credit, my sister in law has to pay 10%. 20% keeps you out of PMI.
you aren't out anything if you have a realitor and are buying. however realitors look out for eachother so you need one you trust.
you can also get a home warranty that covers all the electric/plumbing the first year. Good for if the A/C and furnace are old. I think my deductable the first year was 50 bucks.
Also shop around at banks for a loan. Make sure you get the certificate that says how much they'll give you before you go to offer.
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Also relevant to this discussion is where, precisely, you're planning to buy. KC? No rush, it's not like prices are going to move fast there. San Diego? Silicon Valley? There should be more urgency if you're in those markets as a rebound, when it happens, could be quick and sharp enough to price you back out of the market if you're young.
+1 to Jeffy's thought on the financial end of it. If you have student loans, credit card debt, a car loan or the like you have no business buying a home unless you have small children who need a place to grow up. Pay off your higher interest-rate debt as quickly as possible, begin saving 20% of your gross income for retirement, and then once you've adapted to this new reality see if you can still afford a home.
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Also relevant to this discussion is where, precisely, you're planning to buy. KC? No rush, it's not like prices are going to move fast there. San Diego? Silicon Valley? There should be more urgency if you're in those markets as a rebound, when it happens, could be quick and sharp enough to price you back out of the market if you're young.
+1 to Jeffy's thought on the financial end of it. If you have student loans, credit card debt, a car loan or the like you have no business buying a home unless you have small children who need a place to grow up. Pay off your higher interest-rate debt as quickly as possible, begin saving 20% of your gross income for retirement, and then once you've adapted to this new reality see if you can still afford a home.
Almost all right. Start with the smallest debt, make minimum payments on the others. When the smallest is paid off, snowball the payment into the next one and so on. Little victories.
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Overall, owning is way, way better than renting because you'll actually get money back when you decide to move. In many cases, the property appreciates quite nicely. There's a reason many people say that real estate is the best investment, you know. When owning is an option, renting is nothing more than throwing money away.
I think you need to rephrase what you said above. Renting with no intent to ever buy is throwing money away. If you rent cheaply and save a ton of money before you look at buying, you can do quite well on your real estate deal.
For instance, a 150,000 mortgage on a 30 year term at 6% will cost you 175,000 in interest and cost you 900 in principal and interest payments. Add to that the property taxes and insurance and PMI if you don't pay 20% down (PMI is throwing money away much more than rent ever is).
While most people don't pay cash straight up for a house, the more you pay up front, the better off you are - common sense. If you were to throw $300 into a money market earning 3.2% every month for 5 years, you would save 18,000 + over 1500 in interest. Then, by using that money as a down payment on the same 30 year loan, you will only pay 150,000 in interest (still way too much).
If you do chose a 30 year loan, then remember that 1 extra mortgage payment every year will remove 7 years from a 30 year loan. I paid extra on my 30 year loan over the past couple of years. When I refinanced just a couple of months ago, I had already cut nearly 7 years off of my loan. I refi'd from 6.7%/30 year to 4.9%/15 year and instantly cut another 3 years off of the loan and I have a lower payment. Still, I'm paying a ton in interest. If you can let the interest work for you while saving and renting with the intent of purchasing in the future, then renting is not a waste of money.
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I wasn't referring to "taking care of the lawn". I was referring to all the electrical, plumbing and HVAC type stuff that generally requires expertise that you lack.
Sure, most people can figure out how to get it done, but it ends up taking forever and usually sucks.
I understand what you were saying.. I guess I didn't make my point when I said that these aren't a big deal and rarely are an issue. Yes, you should probably know how to do the general stuff yourself, but it isn't like mr. intarwebs can't be there to assist you.
So far I have re-plumbed, re-wired a couple rooms for cable and power, and remodeled mostly everything in my house. Don't be a helpless turd who can't figure out how to do things on your own. Also- buy the correct tools for the job. Nothing is worse than struggling to do something with the wrong tool. That IMO is what takes the longest. Spend 40 dollars and get it done in thirty minutes or spend 150 and have someone do it.
Bottom line, yes you will have times you need to actually repair something in your house. Don't let that tiny bit of maintenance scare you. The key is finding a house that comes out pretty good inspection.
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Overall, owning is way, way better than renting because you'll actually get money back when you decide to move.
This is assuming you can sell your house when you decide to (are forced) to move.
Also- buy the correct tools for the job. Nothing is worse than struggling to do something with the wrong tool. That IMO is what takes the longest. Spend 40 dollars and get it done in thirty minutes or spend 150 and have someone do it.
Good point. Be prepared to spend thousands on tools you will rarely use.
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Thanks to everybody for the tips. I don't have any debt or else I wouldn't even be looking. I'm not really in a hurry to buy, but decided to at least start looking. This information will be helpful.
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You don't have to be completely debt free to consider buying a house. That's retarded.
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Best thing you can do. You algorithim freaks can figure this out.
http://www.unitedfirstfinancial.com/Portals/2/Flash/15_minute/
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You don't have to be completely debt free to consider buying a house. That's retarded.
That opinion sounds full of expertise.
No, you don't have to be debt free to consider buying a house, but if you understand the philosophies in books such as "The Millionaire Next Door" then you will see that it can benefit you greatly in the long run and is definitely not "retarded." Since interest on debts works against you, it can minimize or cancel out any benefit you could get otherwise. With the economy supposedly as bad as many say it is, a solid comprehensive financial plan would benefit everyone. Having no debt is a great part of a financial plan because it limits risk in most situations (especially if you've backed it with a good emergency fund).
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rich dad poor dad. i was skeptical at first but it truly has helped big time.
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Almost all right. Start with the smallest debt, make minimum payments on the others. When the smallest is paid off, snowball the payment into the next one and so on. Little victories.
Sorry but no. Pay off the highest cost debt first no matter if it is the largest, smallest or somewhere in between. The only thing to consider when paying down debts is which is costing you the most to kick down the road.
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While most people don't pay cash straight up for a house, the more you pay up front, the better off you are - common sense.
That depends on the opportunity cost of sinking those funds into a home versus keeping them invested. If your income is low enough that you're not phased out of the mortgage interest deduction and your long-term portfolio ROI exceeds the cost of your mortgage you need to look more closely at the numbers. Specifically you should then consider whether your portfolio's historic ROI net of taxes returns more than the cost of your mortgage adjusted for your mortgage interest deduction. Small business owners get the bonus round of attempting to plan for unpredictable incomes & expenses, AMT issues, and the like. But please at least consider your portfolio ROI net of taxes versus the cost of capital in your mortgage net of the relevant deduction.
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You don't have to be completely debt free to consider buying a house. That's retarded.
That opinion sounds full of expertise.
No, you don't have to be debt free to consider buying a house, but if you understand the philosophies in books such as "The Millionaire Next Door" then you will see that it can benefit you greatly in the long run and is definitely not "retarded." Since interest on debts works against you, it can minimize or cancel out any benefit you could get otherwise. With the economy supposedly as bad as many say it is, a solid comprehensive financial plan would benefit everyone. Having no debt is a great part of a financial plan because it limits risk in most situations (especially if you've backed it with a good emergency fund).
you are right, however you'd have to be in a situation where you have roomates to keep the rent down, doesn't do much good to rent a place for 8/900 a month.
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Do not buy a home, build a home. Spend some time doing lots of research on homes and contractors (and the subcontractors they use). Most of the newer homes being built that are not completely custom are total crap. Most "flipped" homes are total crap. Building is the best bang for your buck, you get better more efficient technology. If you buy a home that is 5 years or older, you're going to need to redo everything withing 7 years anyway, unless the home was built with exceptional quality to begin with. So, basically your paying for some things twice because you're buying the home, then paying to replace things.
As a structural engineer I would really recommend looking at building a home from cold form steel. No bug problems, no shrinkage issues like you do with wood, and can be much more cost effective compared to wood. Don't be afraid to spend money on insulation and windows. Also, select a HVAC system that brings in a good deal of outside air. Systems that simply recirculate the air inside your home are terrible for air quality and your health.
The most important thing is to take time to plan, don't rush into anything, and don't let anyone rush you into anything. Some contractors will push, push, push, only to cause problems and delays that will end up costing you money.
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Do not buy a home, build a home. Spend some time doing lots of research on homes and contractors (and the subcontractors they use). Most of the newer homes being built that are not completely custom are total crap. Most "flipped" homes are total crap. Building is the best bang for your buck, you get better more efficient technology. If you buy a home that is 5 years or older, you're going to need to redo everything withing 7 years anyway, unless the home was built with exceptional quality to begin with. So, basically your paying for some things twice because you're buying the home, then paying to replace things.
As a structural engineer I would really recommend looking at building a home from cold form steel. No bug problems, no shrinkage issues like you do with wood, and can be much more cost effective compared to wood. Don't be afraid to spend money on insulation and windows. Also, select a HVAC system that brings in a good deal of outside air. Systems that simply recirculate the air inside your home are terrible for air quality and your health.
The most important thing is to take time to plan, don't rush into anything, and don't let anyone rush you into anything. Some contractors will push, push, push, only to cause problems and delays that will end up costing you money.
Great advice. Saves a lot of money and, especially, time in maintenance and upkeep. Utility costs much less than a drafty old pile you think you "saved" money on while you spend every weekend doing home improvement projects that don't, in the end, add value to your home. Plus, everything looks exactly how you want it to so you don't have to so much as paint a room.
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I would have loved to build, however the only place I could afford to build was in Gardner and when I researched it the builders were all pretty crap.
but otherwise, of course building is ideal.
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Overall, owning is way, way better than renting because you'll actually get money back when you decide to move.
This is assuming you can sell your house when you decide to (are forced) to move.
Also- buy the correct tools for the job. Nothing is worse than struggling to do something with the wrong tool. That IMO is what takes the longest. Spend 40 dollars and get it done in thirty minutes or spend 150 and have someone do it.
Good point. Be prepared to spend thousands on tools you will rarely use.
Jesus, you are an asshole. I didn't say spend thousands. I mean don't waste a bunch of time using needle-nose pliers to strip wire when you can by wirestrippers for 20-30 dollars.
Obviously you don't need to buy some gigantic industrial torch to do plumbing, you buy the small 30 dollar tank and do it yourself. Why are you such a dumbass about these things? Did your daddy leave you at age 3 and never teach you to be self-sufficient?
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Overall, owning is way, way better than renting because you'll actually get money back when you decide to move.
This is assuming you can sell your house when you decide to (are forced) to move.
Also- buy the correct tools for the job. Nothing is worse than struggling to do something with the wrong tool. That IMO is what takes the longest. Spend 40 dollars and get it done in thirty minutes or spend 150 and have someone do it.
Good point. Be prepared to spend thousands on tools you will rarely use.
Jesus, you are an asshole. I didn't say spend thousands. I mean don't waste a bunch of time using needle-nose pliers to strip wire when you can by wirestrippers for 20-30 dollars.
Obviously you don't need to buy some gigantic industrial torch to do plumbing, you buy the small 30 dollar tank and do it yourself. Why are you such a dumbass about these things? Did your daddy leave you at age 3 and never teach you to be self-sufficient?
Don't let Rusty fool you, he rocks the TOP OF THE LINE DYSON around his place like it's nothing.....nothing at all. :eek:
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Fairway is a nice area, good decision. It certainly is a buyer's market right now, especially for first-time home buyers.
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First of all: buy a home ASAP. Being able to itemize your deductions more than makes up for the difference between renting and owning.
Second: think about buying a newish townhome if you are worried about maintenance. You can pay someone else to take care of your landscaping, etc. Of course it's probably not much more than that to pay someone to mow the smaller yards up in north Joco. I would just worry about other unexpected big expenses in an older home.
A lot has to do with what you can afford. There's really no need to pay 20% down on a house--that just cuts into your tax deduction. You're better off having cash in the bank that you can use for repairs, job loss, illness, etc. Try not to buy in an area that's about to implode, and you won't have to worry about your investment depreciating. Location is EVERYTHING--think about crime rate, schools, current and future amenities, noise, traffic. If you can pay 5% and you've got over 680 credit, you're in really good position to get one of the better loans--over 720 and you can get the "best" loans. And get a buyers agent--it won't cost you anything.
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Also when you find one you like, call on utilities, find out what the other houses have sold at in the last year or so and compare what everything else has sold for. Find out how long it's been on the market. If over 6 months to a year feel free to offer up to 15% lower than asking.
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And get a buyers agent--it won't cost you anything.
BS. The buyer's agent gets a cut from the seller's agent or the seller themself when the transaction closes. Cuts down on your bargaining power. Would you rather sell a house to someone for $200k but have to give $5k to his agent or someone for $197k plus nothing?
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And get a buyers agent--it won't cost you anything.
BS. The buyer's agent gets a cut from the seller's agent or the seller themself when the transaction closes. Cuts down on your bargaining power. Would you rather sell a house to someone for $200k but have to give $5k to his agent or someone for $197k plus nothing?
Never use an agent just to use an agent, get someone that you can trust! There are good people out there that will look out for you, realitors that are successfull get that way on return customers and referrals. Find an old lady realitor.
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And get a buyers agent--it won't cost you anything.
BS. The buyer's agent gets a cut from the seller's agent or the seller themself when the transaction closes. Cuts down on your bargaining power. Would you rather sell a house to someone for $200k but have to give $5k to his agent or someone for $197k plus nothing?
Never use an agent just to use an agent, get someone that you can trust! There are good people out there that will look out for you, realitors that are successfull get that way on return customers and referrals. Find an old lady realitor.
Rule of thumb: Never trust someone working on commision...ever.
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And get a buyers agent--it won't cost you anything.
BS. The buyer's agent gets a cut from the seller's agent or the seller themself when the transaction closes. Cuts down on your bargaining power. Would you rather sell a house to someone for $200k but have to give $5k to his agent or someone for $197k plus nothing?
Never use an agent just to use an agent, get someone that you can trust! There are good people out there that will look out for you, realitors that are successfull get that way on return customers and referrals. Find an old lady realitor.
Rule of thumb: Never trust someone working on commision...ever.
that's dumb. Maybe at a furniture store or something, but when you only sell a handfull of things each year you have to be good to make it a career or you are done quickly.
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Rule of thumb: Never trust someone working on commision...ever.
that's dumb. Maybe at a furniture store or something, but when you only sell a handfull of things each year you have to be good to make it a career or you are done quickly.
No it's not. Name one thing a buyer's agent can do that anyone (ANYONE) cannot do on their own with their own self interest in mind instead of what sort of commision they may get. Do you know that the houses have different commisions and "bonuses" attached to them for getting them sold in certain timeframes and under certain conditions that a buyer's agent can see but you, as the buyer, cannot? Do you think these "bonuses" are placed on the property for the benefit of the buyer or to motiviate the buyer's agent?
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Rule of thumb: Never trust someone working on commision...ever.
that's dumb. Maybe at a furniture store or something, but when you only sell a handfull of things each year you have to be good to make it a career or you are done quickly.
No it's not. Name one thing a buyer's agent can do that anyone (ANYONE) cannot do on their own with their own self interest in mind instead of what sort of commision they may get. Do you know that the houses have different commisions and "bonuses" attached to them for getting them sold in certain timeframes and under certain conditions that a buyer's agent can see but you, as the buyer, cannot? Do you think these "bonuses" are placed on the property for the benefit of the buyer or to motiviate the buyer's agent?
dude, you obviously know more than the average person about that, I'm saying that the average person could/would probably screw themselves without the help of a good professional that they could trust.
A friend of mine (dumbass/very average type american) went to buy a house somewhere in Denver, agreed on a price, did inspections etc. The house didn't appraise and it fell through and he lost the inspection money.
now that wouldn't have happened to you or anyone that has done homework but like I said. I don't think the average person does.
And also like I said get to know someone that you can trust. But Blanket saying that all people on commision are out to screw you or don't care about getting you the best deal available is not true at all.
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Rule of thumb: Never trust someone working on commision...ever.
that's dumb. Maybe at a furniture store or something, but when you only sell a handfull of things each year you have to be good to make it a career or you are done quickly.
No it's not. Name one thing a buyer's agent can do that anyone (ANYONE) cannot do on their own with their own self interest in mind instead of what sort of commision they may get. Do you know that the houses have different commisions and "bonuses" attached to them for getting them sold in certain timeframes and under certain conditions that a buyer's agent can see but you, as the buyer, cannot? Do you think these "bonuses" are placed on the property for the benefit of the buyer or to motiviate the buyer's agent?
dude, you obviously know more than the average person about that, I'm saying that the average person could/would probably screw themselves without the help of a good professional that they could trust.
A friend of mine (dumbass/very average type american) went to buy a house somewhere in Denver, agreed on a price, did inspections etc. The house didn't appraise and it fell through and he lost the inspection money.
now that wouldn't have happened to you or anyone that has done homework but like I said. I don't think the average person does.
And also like I said get to know someone that you can trust. But Blanket saying that all people on commision are out to screw you or don't care about getting you the best deal available is not true at all.
I used to work on commission. I was out to screw people.
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Rule of thumb: Never trust someone working on commision...ever.
that's dumb. Maybe at a furniture store or something, but when you only sell a handfull of things each year you have to be good to make it a career or you are done quickly.
No it's not. Name one thing a buyer's agent can do that anyone (ANYONE) cannot do on their own with their own self interest in mind instead of what sort of commision they may get. Do you know that the houses have different commisions and "bonuses" attached to them for getting them sold in certain timeframes and under certain conditions that a buyer's agent can see but you, as the buyer, cannot? Do you think these "bonuses" are placed on the property for the benefit of the buyer or to motiviate the buyer's agent?
dude, you obviously know more than the average person about that, I'm saying that the average person could/would probably screw themselves without the help of a good professional that they could trust.
A friend of mine (dumbass/very average type american) went to buy a house somewhere in Denver, agreed on a price, did inspections etc. The house didn't appraise and it fell through and he lost the inspection money.
now that wouldn't have happened to you or anyone that has done homework but like I said. I don't think the average person does.
And also like I said get to know someone that you can trust. But Blanket saying that all people on commision are out to screw you or don't care about getting you the best deal available is not true at all.
Rubbish. According to the Real Estate Buyer's Agent Council these are the reasons to use a buyer's agent (stolen directly from their web site):
- Evaluate the specific needs and wants of the buyer and locate properties that fit those specifications.
Honestly, if you can't evaluate your own wants and needs and find a suitable home you have no business buying one.
- Assist the buyer in determining the amount that they can afford (pre-qualify), and show properties in that price range and locale.
Ditto and there are many income / payment calculators available freely on the 'net that won't demand a 3% commission when your transaction closes.
- Assist in viewing properties -- accompany the buyer on the showings, or preview the properties on behalf of the buyer to insure that the identified specifications are met.
"Assist in viewing properties"? "Accompany the buyer on showings"?!? Again, if you're so helpless that you're unable to view properties on your own ....
- Research the selected properties to identify any problems or issues to help the buyer make an informed decision prior to making an offer to purchase the property.
Useful if an only if the buyer's agent is financially liable for any later-discovered problems and is required to make restitution. As a practical matter your home inspector already has that sort of liability so this is merely another pocket in which to fish ... at best. And I'd wager that the standard buyer's agent agreement absolves the agent of all liability for this sort of thing in advance.
- Advise the buyer on structuring an appropriate offer to purchase the selected property.
Structuring an offer? Is this a home purchase or a hostile takeover of a multinational corporation? Someone care to give me a single example of a buyer's agent "structuring an appropriate offer"?
- Present the offer to the seller's agent and the seller on the buyer's behalf.
If you really want to go uptown you could just hire a courier ... for way less than an agent's comission though the telephone and mails have worked well in this capacity for many years.
- Negotiate on behalf of the buyer to help obtain the identified property -- keeping the buyer's best interests in mind.
And the agent's commission of course.
- Assist in securing appropriate financing for the selected property.
LOL - unless the agent is the lender this is almost nonsensical.
- Provide a list of potential qualified vendors (e.g. movers, attorneys, carpenters, etc.) if these services are needed.
Just in case you've never heard of the Yellow Pages.
- Most importantly, fully-represent the buyer throughout the real estate transaction.
... and of course collect a large fee at the end.
What nonsense. A buyer's agent is merely another toll collector on the highway of life. Happily there's no need to stop and pay this one.
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Rule of thumb: Never trust someone working on commision...ever.
that's dumb. Maybe at a furniture store or something, but when you only sell a handfull of things each year you have to be good to make it a career or you are done quickly.
No it's not. Name one thing a buyer's agent can do that anyone (ANYONE) cannot do on their own with their own self interest in mind instead of what sort of commision they may get. Do you know that the houses have different commisions and "bonuses" attached to them for getting them sold in certain timeframes and under certain conditions that a buyer's agent can see but you, as the buyer, cannot? Do you think these "bonuses" are placed on the property for the benefit of the buyer or to motiviate the buyer's agent?
dude, you obviously know more than the average person about that, I'm saying that the average person could/would probably screw themselves without the help of a good professional that they could trust.
A friend of mine (dumbass/very average type american) went to buy a house somewhere in Denver, agreed on a price, did inspections etc. The house didn't appraise and it fell through and he lost the inspection money.
now that wouldn't have happened to you or anyone that has done homework but like I said. I don't think the average person does.
And also like I said get to know someone that you can trust. But Blanket saying that all people on commision are out to screw you or don't care about getting you the best deal available is not true at all.
Rubbish. According to the Real Estate Buyer's Agent Council these are the reasons to use a buyer's agent (stolen directly from their web site):
- Evaluate the specific needs and wants of the buyer and locate properties that fit those specifications.
Honestly, if you can't evaluate your own wants and needs and find a suitable home you have no business buying one.
- Assist the buyer in determining the amount that they can afford (pre-qualify), and show properties in that price range and locale.
Ditto and there are many income / payment calculators available freely on the 'net that won't demand a 3% commission when your transaction closes.
- Assist in viewing properties -- accompany the buyer on the showings, or preview the properties on behalf of the buyer to insure that the identified specifications are met.
"Assist in viewing properties"? "Accompany the buyer on showings"?!? Again, if you're so helpless that you're unable to view properties on your own ....
- Research the selected properties to identify any problems or issues to help the buyer make an informed decision prior to making an offer to purchase the property.
Useful if an only if the buyer's agent is financially liable for any later-discovered problems and is required to make restitution. As a practical matter your home inspector already has that sort of liability so this is merely another pocket in which to fish ... at best. And I'd wager that the standard buyer's agent agreement absolves the agent of all liability for this sort of thing in advance.
- Advise the buyer on structuring an appropriate offer to purchase the selected property.
Structuring an offer? Is this a home purchase or a hostile takeover of a multinational corporation? Someone care to give me a single example of a buyer's agent "structuring an appropriate offer"?
- Present the offer to the seller's agent and the seller on the buyer's behalf.
If you really want to go uptown you could just hire a courier ... for way less than an agent's comission though the telephone and mails have worked well in this capacity for many years.
- Negotiate on behalf of the buyer to help obtain the identified property -- keeping the buyer's best interests in mind.
And the agent's commission of course.
- Assist in securing appropriate financing for the selected property.
LOL - unless the agent is the lender this is almost nonsensical.
- Provide a list of potential qualified vendors (e.g. movers, attorneys, carpenters, etc.) if these services are needed.
Just in case you've never heard of the Yellow Pages.
- Most importantly, fully-represent the buyer throughout the real estate transaction.
... and of course collect a large fee at the end.
What nonsense. A buyer's agent is merely another toll collector on the highway of life. Happily there's no need to stop and pay this one.
all that crap is exactly why you don't pay a buyers agent to do it for you.
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all that crap is exactly why you don't pay a buyers agent to do it for you.
wtf :confused:
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I was thankful to have a buyers agent when I bought my first house.
Having an agent on either the buyers or the sellers side is good insurance against something going wrong.
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Overall, owning is way, way better than renting because you'll actually get money back when you decide to move.
This is assuming you can sell your house when you decide to (are forced) to move.
Also- buy the correct tools for the job. Nothing is worse than struggling to do something with the wrong tool. That IMO is what takes the longest. Spend 40 dollars and get it done in thirty minutes or spend 150 and have someone do it.
Good point. Be prepared to spend thousands on tools you will rarely use.
Jesus, you are an asshole. I didn't say spend thousands. I mean don't waste a bunch of time using needle-nose pliers to strip wire when you can by wirestrippers for 20-30 dollars.
Obviously you don't need to buy some gigantic industrial torch to do plumbing, you buy the small 30 dollar tank and do it yourself. Why are you such a dumbass about these things? Did your daddy leave you at age 3 and never teach you to be self-sufficient?
:lol:
Do not buy a home, build a home. Spend some time doing lots of research on homes and contractors (and the subcontractors they use). Most of the newer homes being built that are not completely custom are total crap. Most "flipped" homes are total crap. Building is the best bang for your buck, you get better more efficient technology. If you buy a home that is 5 years or older, you're going to need to redo everything withing 7 years anyway, unless the home was built with exceptional quality to begin with. So, basically your paying for some things twice because you're buying the home, then paying to replace things.
As a structural engineer I would really recommend looking at building a home from cold form steel. No bug problems, no shrinkage issues like you do with wood, and can be much more cost effective compared to wood. Don't be afraid to spend money on insulation and windows. Also, select a HVAC system that brings in a good deal of outside air. Systems that simply recirculate the air inside your home are terrible for air quality and your health.
The most important thing is to take time to plan, don't rush into anything, and don't let anyone rush you into anything. Some contractors will push, push, push, only to cause problems and delays that will end up costing you money.
It's very wasteful to build. (for the environment)
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I pay $45 HOA fees. They mow my lawn, "maintain" the sprinkler system, and plow the streets and clear the driveways in the subdivision when it snows. Money well spent since i'm pretty lazy.
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I pay $45 HOA fees. They mow my lawn, "maintain" the sprinkler system, and plow the streets and clear the driveways in the subdivision when it snows. Money well spent since i'm pretty lazy.
:eek: Extremely well spent imo. That is rediculous low for HOA fees.
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I pay $45 HOA fees. They mow my lawn, "maintain" the sprinkler system, and plow the streets and clear the driveways in the subdivision when it snows. Money well spent since i'm pretty lazy.
:eek: Extremely well spent imo. That is rediculous low for HOA fees.
No crap. I know people that pay hundreds and still have to maintain their own yard. The best I can figure is that the money goes to have somebody call the commitee when you park a car in the driveway over night.
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SD, I have to disagree with you on the buyer's agent. Ours was a godsend, and there's no chance in hell we would have gotten the house we wanted as fast as we did, for the price we got it, without her. I guarantee you the house cost less thanks to her negotiating for us than had we "saved money" on the price by not having an agent of our own.
Java: I also highly, highly recommend you hire your own inspector when you've found a house you want to make an offer on.
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Do not buy a home, build a home. Spend some time doing lots of research on homes and contractors (and the subcontractors they use). Most of the newer homes being built that are not completely custom are total crap. Most "flipped" homes are total crap. Building is the best bang for your buck, you get better more efficient technology. If you buy a home that is 5 years or older, you're going to need to redo everything withing 7 years anyway, unless the home was built with exceptional quality to begin with. So, basically your paying for some things twice because you're buying the home, then paying to replace things.
As a structural engineer I would really recommend looking at building a home from cold form steel. No bug problems, no shrinkage issues like you do with wood, and can be much more cost effective compared to wood. Don't be afraid to spend money on insulation and windows. Also, select a HVAC system that brings in a good deal of outside air. Systems that simply recirculate the air inside your home are terrible for air quality and your health.
The most important thing is to take time to plan, don't rush into anything, and don't let anyone rush you into anything. Some contractors will push, push, push, only to cause problems and delays that will end up costing you money.
It's very wasteful to build. (for the environment)
:lol: @ your ignorance Rusty. Steel, which I recommended, is the most recycled product on the planet. Not one piece of scrap would be thrown away from building a steel home, it would all be recycled. Also, new properly designed and installed electrical, mechanical, and plumbing systems use far less energy and water then anything done even five years ago.
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SD, I have to disagree with you on the buyer's agent. Ours was a godsend, and there's no chance in hell we would have gotten the house we wanted as fast as we did, for the price we got it, without her. I guarantee you the house cost less thanks to her negotiating for us than had we "saved money" on the price by not having an agent of our own.
Moral of the story is you could have gotten it for 3% less than you did if you negotiated yourself. I'm not saying it's for everyone but assertive people who can do a minimal amount of homework will benefit by doing it on their own. She did her job by making you feel like you got a good deal (which you may have but you still paid 3% more than you had to).
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I paid an inspector 100$ and he covered pretty much everything. It was a guy my agent recommended but I'm sure they were scamming me.
If you know a lot about everything give it a go yourself. If not, get an agent.
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I paid an inspector 100$ and he covered pretty much everything. It was a guy my agent recommended but I'm sure they were scamming me.
That's a pretty good deal imo
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I paid an inspector 100$ and he covered pretty much everything. It was a guy my agent recommended but I'm sure they were scamming me.
That's a pretty good deal imo
I don't know what they normally cost but I've heard of people that pay like 5 different people that each specialize in something else 50-75 each.
He came in shook my hand and said "cireksu, I will do this like I'd check my own son's house."
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Also just to clarify, the agent I used normally only does commercial property, is older, has made a career out of it and was also an agent for my grandmother and parents.
I wouldn't expect the same from Joe shmo realitor that has another job as well as many do.
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Also just to clarify, the agent I used normally only does commercial property, is older, has made a career out of it and was also an agent for my grandmother and parents.
I wouldn't expect the same from Joe shmo realitor that has another job as well as many do.
d00d, the only one you have to convince that you didn't overpay is yourself. If you are happy with it, good for you.
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Moral of the story is you could have gotten it for 3% less than you did if you negotiated yourself. I'm not saying it's for everyone but assertive people who can do a minimal amount of homework will benefit by doing it on their own. She did her job by making you feel like you got a good deal (which you may have but you still paid 3% more than you had to).
First of all, are you just pulling that 3% number out of thin air? That's highly subjective and dependent on the situation. Secondly, as a first-time buyer who knew nothing about buying a house, with or without doing homework, I promise you I could not have done as well as my agent, or nearly as quick.
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Moral of the story is you could have gotten it for 3% less than you did if you negotiated yourself. I'm not saying it's for everyone but assertive people who can do a minimal amount of homework will benefit by doing it on their own. She did her job by making you feel like you got a good deal (which you may have but you still paid 3% more than you had to).
First of all, are you just pulling that 3% number out of thin air? That's highly subjective and dependent on the situation. Secondly, as a first-time buyer who knew nothing about buying a house, with or without doing homework, I promise you I could not have done as well as my agent, or nearly as quick.
3% is the traditional percentage the agent gets from the seller EDIT: IF THE SELLER HAS THEIR OWN AGENT AS THEY SPLIT THE COMMISION. IF THE SELLER HAS NO AGENT THE BUYERS AGENT WILL GET BETWEEN 5 AND 7 PERCENT FROM THE SELLER. They could get more if the seller has put a "bonus" on the selling of the house within a particular timeframe or under particular conditions, so 3% is the low end. The buyer does not get to see these "bonuses" that the seller attaches as extra incentive for the agent. The agent also is not forced to disclose what percentage they get from the seller to the buyer (care to guess why this is?). Really honest buyer's agents will disclose to the buyer before closing what amount they got, did yours? I'm not saying that people should never get a buyer's agent, I'm just saying people who don't like wasting money shouldn't.
EDIT: http://www.abanet.org/publiced/practical/buyinghome_agent.html
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I paid an inspector 100$ and he covered pretty much everything. It was a guy my agent recommended but I'm sure they were scamming me.
That's a pretty good deal imo
I don't know what they normally cost but I've heard of people that pay like 5 different people that each specialize in something else 50-75 each.
He came in shook my hand and said "cireksu, I will do this like I'd check my own son's house."
You can get just a general inspection, which is just that, it looks for the obvious. If there is a reason to believe there may be something more in depth required, such as termites, etc., you can get one of those inspections as well.
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:lol: @ your ignorance Rusty. Steel, which I recommended, is the most recycled product on the planet. Not one piece of scrap would be thrown away from building a steel home, it would all be recycled. Also, new properly designed and installed electrical, mechanical, and plumbing systems use far less energy and water then anything done even five years ago.
If you can't understand how creating new steel, and carpet, and shingles, and wood floors, and tiles, and bathtubs, and toilets, and cutting down trees/destroying farmland to put it all together isn't more wasteful than buying an existing house, LOL @ YOUR ignorance.
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I'm not saying that people should never get a buyer's agent, I'm just saying people who don't like wasting money shouldn't.
Again I promise you, our agent was anything but a waste of our money. I'm glad you have such confidence in my negotiating / house-hunting skillz, but I don't. Whatever money was indirectly spent on our buyer's agent was money very well spent.
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:lol: @ your ignorance Rusty. Steel, which I recommended, is the most recycled product on the planet. Not one piece of scrap would be thrown away from building a steel home, it would all be recycled. Also, new properly designed and installed electrical, mechanical, and plumbing systems use far less energy and water then anything done even five years ago.
If you can't understand how creating new steel, and carpet, and shingles, and wood floors, and tiles, and bathtubs, and toilets, and cutting down trees/destroying farmland to put it all together isn't more wasteful than buying an existing house, LOL @ YOUR ignorance.
Ladies and gentlemen, I present to you, Rusty, King of the Tree Huggers!
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:lol: @ your ignorance Rusty. Steel, which I recommended, is the most recycled product on the planet. Not one piece of scrap would be thrown away from building a steel home, it would all be recycled. Also, new properly designed and installed electrical, mechanical, and plumbing systems use far less energy and water then anything done even five years ago.
If you can't understand how creating new steel, and carpet, and shingles, and wood floors, and tiles, and bathtubs, and toilets, and cutting down trees/destroying farmland to put it all together isn't more wasteful than buying an existing house, LOL @ YOUR ignorance.
Come to think of it I probably do need another home or two. :popcorn:
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christ, i hate americans.
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christ, i hate americans.
Me too. Bastards expect to start at like $8-10/hr they they want vacations, paid holidays, benefits and the like. In more enlightened parts of the world you can still chain the serfs to their stations for $0.25/hr or less and run 24/7 on two shifts. Americans just plain suck.
:beerchug:
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:lol: @ your ignorance Rusty. Steel, which I recommended, is the most recycled product on the planet. Not one piece of scrap would be thrown away from building a steel home, it would all be recycled. Also, new properly designed and installed electrical, mechanical, and plumbing systems use far less energy and water then anything done even five years ago.
If you can't understand how creating new steel, and carpet, and shingles, and wood floors, and tiles, and bathtubs, and toilets, and cutting down trees/destroying farmland to put it all together isn't more wasteful than buying an existing house, LOL @ YOUR ignorance.
Ladies and gentlemen, I present to you, Rusty, King of the Tree Huggers!
Wait, does this mean you agree w/ my original post on how building new is wasteful?
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I didn't read through any of this, but I'm planning on closing my first house at the end of this month. I bought a house in Overland Park and had a real estate agent that I found was very helpful and honest. I'm usually very good at seeing through people that BS, haven't been proven wrong on that too many times. He would openly point out negatives to a house and basically hint that maybe house A or B wasn't really what I was looking for.
You probably know as much as me about house buying even still, but if you have any questions, I'll be more than happy to help, just PM me. BTW, my credit was in the 760s and my rate was 5.875%. I'll also give you the name to my realtor if you'd like.
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Me too. Bastards expect to start at like $8-10/hr they they want vacations, paid holidays, benefits and the like. In more enlightened parts of the world you can still chain the serfs to their stations for $0.25/hr or less and run 24/7 on two shifts. Americans just plain suck.
inflation may have impacted your figures, but basically completely correct. they're grateful for the work too.
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I just bought a house in Manhattan and didn't use a realtor to help me. I did use a realtor to help sell my place in Lawrence though.
Sellers agents :thumbsup:
buyers agents :lol:
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I'm not saying that people should never get a buyer's agent, I'm just saying people who don't like wasting money shouldn't.
Again I promise you, our agent was anything but a waste of our money. I'm glad you have such confidence in my negotiating / house-hunting skillz, but I don't. Whatever money was indirectly spent on our buyer's agent was money very well spent.
Did the agent find you a badass house?
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I watch House Hunters a lot. So I pretty much know everything about buying a house.
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I'm not saying that people should never get a buyer's agent, I'm just saying people who don't like wasting money shouldn't.
Again I promise you, our agent was anything but a waste of our money. I'm glad you have such confidence in my negotiating / house-hunting skillz, but I don't. Whatever money was indirectly spent on our buyer's agent was money very well spent.
Did the agent find you a badass house?
I can't believe it took this long for that to come out. Disappointing.