House hunting

[LilBastage]

There's a lot of great advice here. I just want to clarify one point. And it really is one of the most misunderstood things in all of residential real estate.

The Realtor is always representing one party or the other (buyer or seller - never ''neither'') and owes that party full fiduciary responsibility. The only case in which this is not true is ''disclosed dual agency' (legal in Massachusetts), in which case the Realtor is representing both parties with consent of both.

As a buyer, the best way to avoid problems with this is to work with an exclusive buyers agent under contract to you. This way you know they are ALWAYS representing your best interests.

Doesn't this result in paying double the commission fees? IE. The seller paying the listing agent a commission and the buyer paying a commission to his agent? The end result being you're paying too much in commission fees?

Oh, one other little hint, find an agent who has been through a couple of boom and bust cycles. They're a lot of amateurs out there selling real estate. You'll save yourself a lot of aggravation at closing.

Doc.

When we bought both of our houses the seller paid the commission to our agent each time. That's standard here. I don't know about other places.



My best advice is to not settle. Don't get "that house" because it is close. Get what you want and what you are willing to live with 100% from the start. There's no worse feeling than dropping thousands of dollars and 3 months later regretting buying the house you settled for. Trust me on this one...

 

[Devil Doc]

There's a lot of great advice here. I just want to clarify one point. And it really is one of the most misunderstood things in all of residential real estate.

The Realtor is always representing one party or the other (buyer or seller - never ''neither'') and owes that party full fiduciary responsibility. The only case in which this is not true is ''disclosed dual agency' (legal in Massachusetts), in which case the Realtor is representing both parties with consent of both.

As a buyer, the best way to avoid problems with this is to work with an exclusive buyers agent under contract to you. This way you know they are ALWAYS representing your best interests.

Doesn't this result in paying double the commission fees? IE. The seller paying the listing agent a commission and the buyer paying a commission to his agent? The end result being you're paying too much in commission fees?

Oh, one other little hint, find an agent who has been through a couple of boom and bust cycles. They're a lot of amateurs out there selling real estate. You'll save yourself a lot of aggravation at closing.

Doc.

When we bought both of our houses the seller paid the commission to our agent each time. That's standard here. I don't know about other places.



My best advice is to not settle. Don't get "that house" because it is close. Get what you want and what you are willing to live with 100% from the start. There's no worse feeling than dropping thousands of dollars and 3 months later regretting buying the house you settled for. Trust me on this one...

Did the seller really pay the commision, or did it just look that way?

Doc.

 

[Jonesy]

[/quote]
Did the seller really pay the commision, or did it just look that way?

Doc.
[/quote]
When we bought our house, the seller paid the commision to both his and our realtor. The attorney handed out the checks to both and then gave the seller what was left. Not sure how it is elsewhere, but it's standard practice here. As far as the advice given to you so far, I see no one has given the best advice yet....make sure the wife is completely happy with the house, community, school system, etc.. or you'll be in for a long times worth of bitching and then have to go through it again.

 

[jfields]

Another peice of advide is that once you have narrowed it down to that house or two, go back again. Take notes, look at the house very thouroughly. Walk around aimlessly taking your time, trying to picture your stuff inside this house. Look inside all the cupboards, closets, etc.
You'll notice a lot of different things you missed the first go around. You never know............................. The carpet might be sorely in need of replacment and you can negotiate that as part of the sale. Getting it replaced with something the wife likes, the same time getting rid of someone elses filth, making way for yours.

Don't forget to look for that man space to smoke your cigars, or a good place to store them. :thumbs:

 

[mysterea]

First I'd like to say there's some golden advice in here. Alot of which our 'first time homebuyers' class (which I recommend) didn't cover.
I'll run this 'contest' for a week or so and announce a winner.

Don't forget to look for that man space to smoke your cigars, or a good place to store them. :thumbs:

Well John, my first requirements are for my wife's needs, but I'll tell ya what, I've already designated 'Mantown USA' if there's a room for my computer crap. Even if it's in the basement, it's gonna be a smoking room.
Also, alot of the houses around here are old colonials and such, most of which have a 'three season' enclosed porch. My current cigar room is one of these, and it's stellar for smokin' a stogie and listening to the rain. Some of my most tranquil times have been out on that porch!

Thanks for all the awesome advice guys, the 15 houses (or so) we looked at yesterday really gelled our ideas of what we want / need. I've already 'loved and lost' three houses, I'm thinkin that will get easier with time.

Good lookin' out guys, thanks!

Rob

 

[CasaSoho]

My suggestion is to get the hell out of Easthampton, particularly in the event you plan on having children in the near future, and move to Southampton. Better schools, better people, better homes. Town services are a little weak, but the town will never vote to approved a prop 2 1/2 overide and the assesors seem to be fair in their evalutations. If you have any questions about the areas you are looking at, shoot me a PM and will tell you what I know.

 

[BlindedByScience]

We bought a house built in '85, so I guess my thoughts run along the lines of a slightly older home. I've been very happy with our home and we basically lucked out. With a new / newer home, these may not be issues but these are the things that occurred to me after the fact. Some thoughts:

- Find a licensed home inspector / home engineer and pay him to look over "the one" before you put any money down. We didn't, and I wish we would have, thought the truth is I'd have bought the house anyway. I'd have been better informed and could have had some things taken care of before we purchased the home.
- Plumbing. Copper? Plastic? What kind of plastic? We ended up with a house that has some notoriously bad plastic pipe in it. I suppose it was due to my lack of knowledge on the subject but the bottom line is that we're replacing it a bit at a time.
- Sinks / faucets / toilets. All working properly? Look underneath wherever possible. Any signs of leaks?
- Appliances (built ins). Do they work? Do they work well?
- Heating / cooling. What type is it? How old is it? Pull the furnace filter out and see if it's been replaced recently. Does it work properly?
- In ground sprinklers. Do they work right?
- Garage doors. Do they operate smoothly? All the bolts / nuts tight?
- Roof in good shape? What type is it? Gutters clean and firmly mounted against the house?

The comments about neighbors and the neighborhood are well founded and as important as everything else I listed. We ended up with great neighbors and a great neighborhood. You can fix a lot of annoying things about the house but if the neighbors / area suck, you have little recourse.

We bought our house years ago when it was clearly a sellers market. Even still, today it's worth almost 2X what we paid for it......

Have fun, and good luck on your hunt.....B.B.S.

 

[NorCalCigarLover]

I purchased a home built in 1950, of course owning a 100 year old house is a goal of mine somebday. I'm also a remodeling junkie and have owned and remodeled 4 houses in my time, yeah I'm one of your oldies Rob :laugh: . Personally, I prefer older homes in established neighborhoods, but I can do all aspects of home repair/remodeling and am very patient when it come's to completeing a job in order to finish it the way I want. So I've never worried about paint, floor coverings, cabinets, etc, etc, etc.

I've always looked for a house that I thought I could make feel like a home to me and my family. Oh sure, I've taken everything everyone else has already said into account but the feeling I get from a house is one of the most important to me.

 

[Bond]

Looking at too many houses a day can make it all very confusing. It gets to a point where you can't remember which features and amenities went with which house.

If you haven't already, get to a bank and see about getting pre-approved, not pre-qualified.

This has been said several times but is great advice...get an inspection.

When you're ready to write an offer, ask for a home warranty to be paid for by the seller. Most of the time they will agree to that and it covers a lot of things for a year.

On the commission issue, both sides of the deal are paid out of the sellers pocket. While Realtors can type up an agreement that includes a commission from the buyer, most around here don't. This is how you get "no cost representation."

Other than that, Northwest Arkansas is a great place to live! :whistling:

 

[husker]

Hire an attorney who specializes in real estate before you sign anything!! Home purchase contracts favor the real estate company 100%, then the seller and lastly, the buyer.

Hire an inspector who is not afraid to become a "deal killer" In fact, I would hire not only one who is competent as a structural engineer, but have a plumber check out the plumbing, a roofing company, an electrician etc.

Make sure the inspection report doesn't have a clause that states that items that were legal and appropriate when the home was constructed are not noted. We had a house about twenty years ago that had aluminum wiring and the inspector didn't mention it in the report because it was legal here when the house was built.

Use a title company that is not affiliated with the real estate companies. You can't tell them who to use, but you can tell them who not to use.

Did I mention to have an attorney on your side before you have any problems, not after. It will be a lot cheaper.

 

[BrownDevil]

#1. The real estate agent isn't working for you. He's working for the seller.
Doc.

This is not correct, unless your agent has disclosed that he is working for the seller.

If you are working with a buyer's agent, their full responsibility is to YOU. And if you are working with an agent that's taking you out to see 15 properties, it sounds like you are working with a buyer's agent.

Spot on

Did the seller really pay the commision, or did it just look that way?

Doc.

Seller always pays the commission. If you find yourself working for an agent asking you to pay when you're the buyer, find a new agent.


Aside from the underlying tone of a lot of folks who chimed in don't like/trust REALTORs, there was plenty of good tips here. Not sure if this was mentioned but as a REALTOR who prefers to work with buyers instead of sellers, keep this in mind.

15 houses is WAY TOO MANY house to look at in an afternoon/weekend. Here's why. Even if you keep very detailed notes, by the time you reach house #5 you're more than likely going to forget everything you loved about house #1, and when you reach #10...well you get the picture. Your agent can pull up MLS listings for you, you can take online virtual homes on many listings, and you can/should do your part to get the most homework done before you start checking out houses. And of course this isn't you and the mrs., but don't let your agent think you're just taking up his time AND GAS getting shuttled around to visit houses because it seems like a fun thing to do on the weekend.


Also.....find out what you qualify for BEFORE you step foot in one house. If you qualify for a $300k home, and your agent takes you to 5 different sub-$300k homes and one $320k house that you absolutely fall in love with....you're going to feel let down because you can't afford it and when you choose another home you'll feel like you're forced to "settle."


Happy hunting :sign:

 

[CigarStone]

Bro:

When the time is right, we will have to get together with Marty and his boys. You and I will do the basic grunt work and he and his gang can do the finish work!

I know it's been said in here but...........buy the cheapest house in a nice neighborhood............a little blood, sweat, and tears and boom...........instant equity!

Think load bearing walls............................remember ma H's house and the picture window in our smoking room!

Edited to add..................If you look at 15 houses in one day your agent isn't doing his/her job! If you talk and the agent listens, they should be able to pick the 4-5 that fit you best!

 

[Devil Doc]

BD, I've written a number of commission checks as a seller and I can assure you that I was spending the buyers money. The price I was willing to accept for the properly always included the commissions I was to supposedly pay. So like I said, is the seller really paying the commission or does it just look that way.

Doc.

 

[BrownDevil]

BD, I've written a number of commission checks as a seller and I can assure you that I was spending the buyers money. The price I was willing to accept for the properly always included the commissions I was to supposedly to pay. So like I said, is the seller really paying the commission or does it just look that way.

Doc.

Well naturally in that sense The seller is going to have all these things included in the selling price assuming he's making a profit.
However with the AZ market in the tank right now...seller's are taking it in the shorts and paying out commissions.

:thumbs:

 

[smokelaw1]

Might be a bit late, but something I always found very useful when shopping for a house---BRING A FLASHLIGHT. I always have a light on me (often more than one). WHen house-shopping, it came in handy many, many, many times.
Our realtor (who has since become one of our best friends, by the way) now caries a small led light (very bright, good battery life on the mid and low levels, and relatively affordable...made by Fenix, called the P1D-CE, if anyone cares) with her at all times when showing houses.

Don't forget to ask about TAXES. When looking for our home, we had to always remember that taxes in our area add up to the rent on a really nice two bedroom apartment.

 

[jfields]

First I'd like to say there's some golden advice in here. Alot of which our 'first time homebuyers' class (which I recommend) didn't cover.
I'll run this 'contest' for a week or so and announce a winner.

Don't forget to look for that man space to smoke your cigars, or a good place to store them. :thumbs:

Well John, my first requirements are for my wife's needs, but I'll tell ya what, I've already designated 'Mantown USA' if there's a room for my computer crap. Even if it's in the basement, it's gonna be a smoking room.
Also, alot of the houses around here are old colonials and such, most of which have a 'three season' enclosed porch. My current cigar room is one of these, and it's stellar for smokin' a stogie and listening to the rain. Some of my most tranquil times have been out on that porch!

Thanks for all the awesome advice guys, the 15 houses (or so) we looked at yesterday really gelled our ideas of what we want / need. I've already 'loved and lost' three houses, I'm thinkin that will get easier with time.

Good lookin' out guys, thanks!

Rob

:laugh: Don't worry Bro. I got the wife covered and then some in post # 9. :laugh:

 

[jgohlke]

My wife and I kept a running list of things we liked and didn't like about houses we visited. When it came time to buy our own house, we ordered the list (lots of give/take during this session). The original list was 60 or 70 items long, the prioritized list was only 27 (everything else just wasn't that important).

Then we drew a line...."must haves" above, "nice to haves" below. For us, that line came in between 7 and 8. I carried the list with me and just sat in the car when the realtor pulled up to a house that didn't meet our first 7.

The mortgage company has about 15 different ways to make money off of you. For they most part, they are just on the legal side of "scammer". Don't take any crap from them and if they don't do what they say they will, WALK. No surprises on closing day - that's the biggest scam of all.

And don't do what I did during closing - object to writing out my full name in cursive. We disagreed about the definition of the term "signature" and I (stupidly) said at one point - about writing out my full name in cursive - "I can do that, but I don't recognize that as my signature".....we laugh about it now....but it extended our closing by about an hour....

 

[Anthony]

Not sure if this was mentioned but as a REALTOR who prefers to work with buyers instead of sellers, keep this in mind.

15 houses is WAY TOO MANY house to look at in an afternoon/weekend. Here's why. Even if you keep very detailed notes, by the time you reach house #5 you're more than likely going to forget everything you loved about house #1, and when you reach #10...well you get the picture.

I completely agree with this. The Max number of properties I show to buyers in one day is 5 (maybe 6 if two of them happen to be on the same street, etc.). They all blend together very quickly.

BD, I've written a number of commission checks as a seller and I can assure you that I was spending the buyers money. The price I was willing to accept for the properly always included the commissions I was to supposedly pay. So like I said, is the seller really paying the commission or does it just look that way.

Doc.

Doc,

Yes - the commission is paid from the Sellers' SIDE of the transaction, but obviously, the actual money is coming from the buyers. Unless the balance of funds at closing isn't sufficient - in which case the seller will have to pay 'out of pocket'

 

[BkCloud114]

I completely agree with Anthony... One good piece of advice is to make sure you use a Realtor® All Realtors® are guided by a "code of ethics"... The best thing you can do is listen to what you Agent says. If you are not happy with your agent, get another one. Your Agent should be working for you, helping you make the best possible decision at the best time with the best information.

Sign on to www.Realtor.org This has a ton of information that you will find useful...

Everybody does things a different way, I usually have my clients rate a house between 1 - 10

Feel free to PM me with any questions also

 

[Infinity]

I'm assuming its your first house.

Buy the crappiest house in the best neighborhood you can afford and it will be the best investment you have ever made.

This is the best advise in this thread.


Location, location, location.

Brian