Foo - Gonna go house shopping soon. Any words of wisdom?

We are tired of living in the ghetto that our neighborhood has become. We have rearranged our finances enough that we feel we can afford a pretty nice house without extending ourselves too much. We want to start looking for a new house asap. Can anyone give any advice about dealing with realtors and the like? 1984 was the last time we moved, and we really didn't have to deal with realtors(bought from FHA). I just don't want to get screwed if I can help it. We need to sell our house before we can get a new one. How is that gonna work?

Any and all advise appreciated! I feel like a teenager trying to deal with a car dealer. :( :o






PS...Firefox is telling me I am spelling realtor wrong, but I don't know how else to spell it. :o

Firefox is telling me I am spelling realtor wrong, but I don't know how else to spell it. :o

I think Firefox is looking for 'Realtor' (capital 'R').

The least amount of hassle would be to have a realtor sell the old one and also help you buy the new.
I would imagine the best way to synchronize the move would be to put as much as possible into storage, and live in one of those extended stay hotels til you get the new house.

where do you live? alot depends upon your location

Dirt-floored crawspace. With some wise planning, you could hide a couple dozen bodies under an average-sized floor plan.

have any friends who'd recommend their realtor? that's a good place to start.

For background reading, I HIGHLY recommend the Motely Fool: http://www.fool.com/homecenter/homecenter.htm?source=LN

The least amount of hassle would be to have a realtor sell the old one and also help you buy the new.
I would imagine the best way to synchronize the move would be to put as much as possible into storage, and live in one of those extended stay hotels til you get the new house.

One big problem is that we have collected SO MUCH SHYYYYT over the past 20+ years that we would never be able to store it all. And I really don't want to get rid of it. We have the normal houseful of stuff. Plus I have a 30'X40' shop building that is also stuffed full of stuff. Racecar, tools, lawnmower, bicycles, shelves full of car parts, numerous workbenches and carts, tons of other stuff. I'm just having a hard time visualizing how people handle moving when they have collected so much "STUFF". :eek:

have any friends who'd recommend their realtor? that's a good place to start.

For background reading, I HIGHLY recommend the Motely Fool: http://www.fool.com/homecenter/homecenter.htm?source=LN

Thanks man. That looks like it might be helpful. Will give it a read, and have the wife check it out also. She's the brains of this operation. :D Will check with the folks I work with and see if they have any recommendations for a good Realtor.

About 4 years ago, we saw a house for sale and really liked it, so we made an offer on the house, contingent on the sale of the house we were living in at the time. We had a great realtor, he listed our house and did the real estate purchase contract on the one we wanted to buy. It was kind of nip-and-tuck, but we ended up doing the sale of the old house and purchase of the new house on the same day, but we didn't have to turn over possession of the old house for about 3 days--gave us enough time to pack up and move to the new place.

Everything had to fall into place and, for the most part, things worked out well. The whole process took about 2 1/2 months. I don't know if something like that would work where you live, dragracer, but it's food for thought.

Cheers.

location, location, location

Best advice I ever got regarding buying a house came from my best friend who bought his first house a good 15 years ago. When my wife & I started house-hunting 3 years ago, he told me

"Be sure to wear lots of antiperspirant to the closing."

Sitting there in that room filled with strangers, signing your name to page after page of huge thick incomprehensible legal documents, and then writing all those checks with all those zeros...I was still sweating like a pig!

And make sure it wasn't built on an indian burial ground. While it may be fun to live in, it'll eventually get sucked into some kind of strange space/time vortex, completely ruining your investment. And, I assure you, insurance doesn't not cover supernatural vortices.

One more question. I have no idea what is proper etiquette when offering a buying price. For instance, if the asking price is $125K, what would you make as an offer? Would you offer a few hundred less($124,500), a few thousand less($120k), or what? I'd really hate to overpay for a house, but I'd also hate to look like a damn fool(that could be the tricky part).

David

All they can say is no to a low offer, or counter with something inbtween. Decide what you want to pay and offer lower than that so that when the counter you have some room to play. Do not forget to include realtor fees, etc. into your budget.

I'd think you're safe offering 85% to 90% of the asking price. Like jsharr said, they can always say no, and unless you think it's a screaming deal, most sellers ask more than they're willing to take. If they're asking $125,000, offer $110,000 or $115,000, they'll probably come back with $120,000, and maybe you can settle at $118,000 or so.

It probably varies according to where you are, but realtor's fees are paid for by the seller where I live.

One more question. I have no idea what is proper etiquette when offering a buying price. For instance, if the asking price is $125K, what would you make as an offer? Would you offer a few hundred less($124,500), a few thousand less($120k), or what? I'd really hate to overpay for a house, but I'd also hate to look like a damn fool(that could be the tricky part).

David

Proper ettiquette? This isn't golf, it's money. You can offer what ever you want, how reasonable is up to you, sort of depends on how much money you have and how badly you want the house.

One more question. I have no idea what is proper etiquette when offering a buying price. For instance, if the asking price is $125K, what would you make as an offer? Would you offer a few hundred less($124,500), a few thousand less($120k), or what? I'd really hate to overpay for a house, but I'd also hate to look like a damn fool(that could be the tricky part).

David


If you think the house is worth 125k, you offer that. If you think it's worth 105k, you offer that. You're not buying a house to show how nice you are.

usaa has a good program for home buying (mover's advantage) ... you get $$$ back after the sale. if you can't get into usaa, might as well tell the realtor you're working with about that program and they might have a compatible product (meaning a rebate or discount on fees/commissions). our reserve realtor from bissell hayes said she would match if we went with her ...

the asking price for the house we have was above the comps in the area. we made an offer based on these comps and really, the seller is expecting to have to negotiate. as much as we loved the house, we wouldn't pay more than the market will bear. frankly, no one should.

so .... see what the % of the asking price for the homes in the area (realtor will help with that) are selling for, get comps for homes in the area, and stick to your guns on your offer.

Proper ettiquette? This isn't golf, it's money. You can offer what ever you want, how reasonable is up to you, sort of depends on how much money you have and how badly you want the house.

Yeah. "Etiquette" Is probably not the right word. I just don't want to make an offer so low that the seller would think I'm just "kicking tires".

bigsky....what is usaa?? Never heard of it.

It might also be wise to buy a crappy house in the ghetto and renovate it so it looks nice. Over time the value of the house would increase drastically and the ghetto might not be a ghetto anymore. I know a lady that did that and the value of the house increased by over 1m dollars...

....... buy a crappy house in the ghetto .......

Already got one of those. J/K! :roflmao:

oops. sorry. usaa.com (https://www.usaa.com); credit union for military, spouses, family of military.

Already got one of those. J/K! :roflmao:

Or buy a big plot of land in the Ghetto and build a house on it...

where do you live? alot depends upon your location

I see these posts about location, but I'm not sure what ya'll are referring to. There are houses just about everywhere aren't there? I mean, sure, cost of housing is different depending on where you want to live, but I'm just not sure what you're getting at. FWIW... We live in southwest Missouri. Near Kansas, Oklahoma, and Arkansas. It's a fairly rural area. Definitely not the "big city". :)

Remember alll across the USA it's pretty much a buyer's market - which means the buyer sets the rules.

#2 - MAKE SURE YOU DO NOT GET a "fixed rate mortgage" that only lasts for a few years. There is a difference supposedly and alot of people are getting burnt.

#3 - Helps to have a downpayment. It makes the person you'r buying from alot more willing to say yes especially if you're not going through a realtor.

#4 - Realtors are not really out there for anybody but their own best interests despite everything they say and everything they say they will do.

#2 - MAKE SURE YOU DO NOT GET a "fixed rate mortgage" that only lasts for a few years. There is a difference supposedly and alot of people are getting burnt.



Actually you want a FIXED RATE MORTGAGE. You don't want a mortage with a variable rate. Probably what TG is saying is that some companies are calling them fixed rate when they are not. A 15 yr. fixed is the best way to go if you can afford it. Otherwise go with 30 years fixed.

1: +1 to Texasguy... watch out for those "fixed rate" traps.

2: Check the property out for easements and rights of way. It sucks big time when you bought a house, and the property YOU pay taxes for can be intruded on any time, day or night, by the local city, and any damage they do to your fence or other items, you pretty much can't sue for.

3: Get a property attorney to help with the sale. I can't recommend this enough. There are SO many ways to get screwed with properties, from crap on the deed due to a botched title search, to brain-dead inspectors who didn't notice the major mold damage, to plumbing that will end up needing to be ripped out and replaced because it plugs up every couple years.

4: Check your neighbors out. Seriously.

5: Check flood plains.

6: Check parking/driveway. You will be driving in and out thousands of times, so make sure you can stand the routes to the main freeways. Left turns across busy intersections to get to work suck.

7: Did I mention, get an attorney to look over those stacks and stacks of contracts?

8: Are there any homeowner's associations? Look at their rules and deeds. It sucks when some morons who have no idea of who you are, and have zero care of you or your life get a court order forcing you to move because you have a dog in the backyard, and its against the neighborhood deed restrictions, or that you are forced to park all your cars inside your garage 24/7. Or you have to get permission to host gatherings that have people park in the driveway or street.

9: Mailboxes. If its a through-door slot, close up the slot and buy a mailbox. Kids love sticking hoses through those slots while you are gone to work. Thankfully it hasn't happened to anyone on my street in a while, but the last place I lived, it was common for people to get flooded out this way.

All good advice.......
Now, the best advice of all...
Buy my house in scenic Vermont ! :D
Great location...cheep !

Remember alll across the USA it's pretty much a buyer's market - which means the buyer sets the rules.

#2 - MAKE SURE YOU DO NOT GET a "fixed rate mortgage" that only lasts for a few years. There is a difference supposedly and alot of people are getting burnt.

Absolutely. Get either a fixed rate for the life or an adjustable you can live with (max possible rate, annual jump limit etc). Whatever you do DO NOT GET A NEGATIVE AMORTIZING mortgage!!!

#3 - Helps to have a downpayment. It makes the person you'r buying from alot more willing to say yes especially if you're not going through a realtor.

Not necessarily true. What you do want to have is a prequalification letter. Down payment means nothing to the seller; if you have a check (or guarantee thereof), that's all that matters to them. The bank, on the other hand, will give you a better rate for putting more down.

#4 - Realtors are not really out there for anybody but their own best interests despite everything they say and everything they say they will do.

Pretty much right on the money (pun intended). A good agent, however, will help you making the proper offer and won't let you overspend. Since their payment is based on how much you pay, however, truly good agents are few and far between.

guess I have to post something outside the quote.

Regarding what to offer: Prices of homes sold in the area are a matter of public record. If you do work with a realtor, he or she can dig that stuff up in a heartbeat and show you comparables in the neighborhood.

Good advice I heard during a speech by the editor of Kiplinger's Magazine: Don't buy more house than you need. Following that advice has allowed me to weather the bad times and helped me to pay off the mortgage early in good times. Plus, it's just plain less to worry about and look after.

And that advice about getting an attorney--spot on.

#2 - MAKE SURE YOU DO NOT GET a "fixed rate mortgage" that only lasts for a few years. There is a difference supposedly and alot of people are getting burnt.

Actually you want a FIXED RATE MORTGAGE. You don't want a mortage with a variable rate. Probably what TG is saying is that some companies are calling them fixed rate when they are not. A 15 yr. fixed is the best way to go if you can afford it. Otherwise go with 30 years fixed.
Wow. That has to be the dumbest thing I've heard today.

guess I have to post something outside the quote.
Downpayment has sealed ever single House signing including my own and most were situations where the sellers would have chosen something else.
In one case they came down 10k because of the big down payment.
In my case they chose me because I had a downpayment and the other people looking at the house did not. If i did not have a down payment chances are they would have gone with the other family because the other was an actual family unit and not a single male trying to buy a house :)

From my experience, having the down payment puts you in the driver seat in more ways then one - sometimes requiring you to know how to leverage it.

*shrug*

I've bought 4 houses and never mentioned my financing other than to say I had approved funding for the complete amount I was offering. There's a difference between a cash sale and a mortgage one in that there's more requirements for inspections and such, plus all the extra closing BS, but as a seller, I don't really care if they have PRE-APPROVED financing. I mean, if the bank's already approved the buyer for what they're offering or accept in a counter what do I care if they're "serious" by putting 20% down or want to pay more interest by using the bank's money via a "0 down" loan?

A lot depends on the laws in Missouri. Some states require attorneys to do all the title work, others allow title companies to take care of it. Most title insurance where I live involves pretty straight-forward exceptions to title--property taxes, municipal charges, utility easements, etc. If there's something you don't understand about the title to the property you're buying, ask an attorney, but most people around here don't bother and there's not usually a problem.

I've never heard of the hose-through-the-mailbox-slot thing. Sad. And I'm not sure a large downpayment really makes a difference, unless it's hot property and the sellers are looking at several offers at the same time.

Do NOT get a Pulte. They are the biggest pieces of **** you can imagine. If you get one, 1/3 of the cost of the house will be repairs.

Thanks for the comments thus far. All sound like good advise. As for putting down a big down payment, our house is payed for, so whatever we can get out of it will all(well almost all) go straight toward the new one. I think that will help us get what we want. Going this afternoon to talk to a Realtor recommended by my boss(friend & tennis partner). Just going to try to find out some info on where to start at this point. I'm already getting a little nervous over here...lol.

I see these posts about location, but I'm not sure what ya'll are referring to. There are houses just about everywhere aren't there? I mean, sure, cost of housing is different depending on where you want to live, but I'm just not sure what you're getting at. FWIW... We live in southwest Missouri. Near Kansas, Oklahoma, and Arkansas. It's a fairly rural area. Definitely not the "big city". :)Location could mean many things. Region of the country of a certain area in the state. Look at it as long-term parking of your money and see what you'll get when you cash out. The coastal areas has seen the most appreciation in the recent housing bubble, with many areas in Cali doubling in 4-5 years. However, there are many areas in... Texas for example, where housing prices have remained stagnant for the past 30-years. It's actually depreciated when accounting for inflation.