Re: OT: house buying

Posted by docmirror on October 20, 2016 at 11:25:06 from (107.213.165.255):

In Reply to: OT: house buying posted by Mike M on October 19, 2016 at 08:50:57:

I buy and sell(and rent) houses. I've bought through agents(brokers) and also from individuals. The purchase through a broker is always, always, always, harder and more hassle. I've never used a broker to sell, so can't comment on that.

Typical commission on a house is 6% but can be as low as 3-4%. Generally, the selling and buying brokers will split the commission so each gets 3% of the sale price. You will hear RE agents tell people 'the seller pays the broker fee, so you don't have to care about that'. Well - Bullspit. The BUYER pays for EVERYTHING. He pays directly for the property, and all the required inspections if there is a loan, and the buyer pays for everything else indirectly through the escrow company, including the commission.

So, that's why more homes are for sale by owner now. The internet has made the Multiple Listing Service obsolete. The MLS used to be the secret bible of homes for sale. Now, everything, and I mean everything can be found on zillow.com, trulia.com, realtor.com, or fsbo.com. If it's not on one of those, try craigslist.org. When I sell a house directly, I market it just under the price of comps in the area. People using a RE agent won't show it, so I have to put up a sign, and answer the phone myself. I've had several people call me who were riding around with RE Agents and then they contacted me after the agent dropped them off. I have sold homes to people who use their own agent, and also to people who use an atty. Frankly, people who use an atty for a simple home purchase with loan are throwing money away. Same with the RE agent. I tell them they are free to hire anyone they want to represent them, but the fee is being paid directly by them, and not through escrow, which has enough garbage fees already.

Most critical if you are buying a home yourself, and not using an agent. Order the title search, and the title insurance documents after negotiating the deal. Then sit down for 2-3 hours and READ EVERY WORD. The title abstract and the what the title insurer are covering can often be very different things. Title insurance in the past 15 years has become a joke. I see some of the language in the title ins document, and it reads like a 12 YO kid wrote it. Example from a recent contract: "Lot 22, Lone Prairie estates may have easement from street to 12 feet west for utilities. The lot should be surveyed for boundaries along the west and south lot lines, as there is a fence which may or may not be encroaching on lot 22."

Wow, you reallly did your homework there! MAY HAVE? Well, does it or doesn't it? Is the fence on, or encroaching on the lot? What are you covering if it doesn't? Look for solid adverbs like 'must' 'will' 'does' 'does not' 'is' 'is not'. It's getting harder and harder to pin down a title co on what they are insuring and what they aren't. Even old liens from > 30 years prior are becoming sketchy. Jeez.

I am in the process of buying a building and lot in NM and it's going fine without a RE agent. If you have no experience in the process, I would hire a RE agent as a fee-simple agent, and not a commission agent. Offer them $500 or whatever, and have them handle the contract, and required documents, while you do the shopping, inspections, and buying which is the fun part.

Replies:

Add a Reply Name: E-Mail: Subject: Comments: Optional Link URL: Link Title: Optional Image URL: Optional Video Title: Optional Video URL: Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.   Advanced Posting Tools   Upload Photo  Select Gallery Photo  Attach Serial # List  Return to Post

TRACTOR PARTS	TRACTOR MANUALS

We sell tractor parts!  We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]