Put in an offer for a house....

[hepcat]

39 minutes ago, Arroz con Panther said:

I hear ya. Well, my point still stands. Don't push too hard for the next three (or is it two now) weeks until after you're married. Enjoy the chaos that is your wedding.

Yea man wasn't intending on putting in this offer but the house is in a GREAT location and pretty low in price considering the neighborhood and overall quality of the house outside of the problems I've noted. We had full intentions of starting the search after our honeymoon

[thefuzz]

On 1/29/2019 at 1:18 PM, RenoCarolina said:

Probably too late for this but anyone in the market for buying a house should 100% seek out a "Buyers Only Agent".  Your agent that listed your house will tell you that is not necessary, that their agency does this all the time.  But when it gets down to the nuts and bolts, that friendly real estate agent is working for the seller, not for you.  They are obligated by law to represent the seller.

Getting a buyers only agent ensures you have someone that is involved in real estate professionally and is only obligated to look out for YOUR interests!  They are still paid by the seller at closing but are not legally obligated to them, they are to you!

Also, so many sellers list their home without doing the grunt work.  We were going to buy an older home and spent $500 for inspection only to find a laundry list of structural defects that included the need for an engineer to evaluate.  I cut my losses and ran.  I knew the seller (little old lady) so I sent her the report so she knew what to get fixed but I was not going to pay for a structural engineer to inspect her house.

You mentioned that the structural issues would not need to be addressed in the near future but they will have to be addressed eventually.  Unless you find a buyer willing to pay for those you are actually taking on the financial obligations of the current owner by not requesting repairs or credit at closing.  

Good luck.

 

This is 100% not accurate...at least in FLA, SC, or NC.  I'm not super familiar with Texas real estate practices.

It's amazing how many people think they know a lot about real estate, and the building industry in general...when in fact, they are making wrong choice after wrong choice.

Doctors and Attorneys being at the very tip top of those that make bad decisions regarding both.

[LinvilleGorge]

I always chuckle at this idea that the buyer's agent is "paid by the seller". How much money is the seller bringing to the closing table? 

It's like a contractor telling you that all subcontractors are paid by him. Yes, technically that's true but those costs were factored into what he's charging you. If you're the only one bringing money to the equation then you're the one who's paying, period. 3% might seem trivial, but if you're spending half a million that's $15k. That's real money. I'm not saying not to use a realtor, I'm just saying that if you do make sure their services are worth what you're paying them.

[thefuzz]

33 minutes ago, LinvilleGorge said:

I always chuckle at this idea that the buyer's agent is "paid by the seller". How much money is the seller bringing to the closing table? 

It's like a contractor telling you that all subcontractors are paid by him. Yes, technically that's true but those costs were factored into what he's charging you. If you're the only one bringing money to the equation then you're the one who's paying, period. 3% might seem trivial, but if you're spending half a million that's $15k. That's real money. I'm not saying not to use a realtor, I'm just saying that if you do make sure their services are worth what you're paying them.

In 99% of transactions both sides come from sellers proceeds.

Now, they have factored that into what they are willing to list for and accept, but those funds do come from the sellers side of the HUD.

There are a few instances where buyers pay their agents directly, but that's really rare.

[LinvilleGorge]

23 minutes ago, thefuzz said:

In 99% of transactions both sides come from sellers proceeds.

Now, they have factored that into what they are willing to list for and accept, but those funds do come from the sellers side of the HUD.

There are a few instances where buyers pay their agents directly, but that's really rare.

If the seller is the one bringing the money to the table, the seller is paying. The buyer's agent's cut is figured into the selling price... that the buyer is paying.

[RenoCarolina]

2 hours ago, thefuzz said:

This is 100% not accurate...at least in FLA, SC, or NC.  I'm not super familiar with Texas real estate practices.

It's amazing how many people think they know a lot about real estate, and the building industry in general...when in fact, they are making wrong choice after wrong choice.

Doctors and Attorneys being at the very tip top of those that make bad decisions regarding both.

could you educate me as to what exactly I said was wrong?

 

 

[thefuzz]

25 minutes ago, LinvilleGorge said:

If the seller is the one bringing the money to the table, the seller is paying. The buyer's agent's cut is figured into the selling price... that the buyer is paying.

Sellers rarely "bring money to the table" these days, unless you are describing a few years when the market was awful, and the sellers overpaid/bought in the wrong years, and didn't put enough down on the house.

The commissions are paid from seller proceeds.  

[thefuzz]

11 minutes ago, RenoCarolina said:

could you educate me as to what exactly I said was wrong?

 

 

You said that real estate agents at the end of the day work for the Seller.  That is absolutely not true in 90+ % of transactions.

Most buyers have a buyers agent, and the sellers have a sellers agent.  They both do not work for the seller.

There is the occasional "dual agency" where the agent represents both sides, but cannot disclose certain things to either party.  Most agents DO NOT want to do this on a regular basis, nor do the BIC's.

AGAIN, in NC, SC, and FLA, that is the way that agency works.  If a "buyers agent" is disclosing info to the sellers or their agent, they are running a very good chance of getting into some major trouble.

[LinvilleGorge]

19 minutes ago, thefuzz said:

Sellers rarely "bring money to the table" these days, unless you are describing a few years when the market was awful, and the sellers overpaid/bought in the wrong years, and didn't put enough down on the house.

The commissions are paid from seller proceeds.  

I understand what you're saying, but what you're saying is classic seller's agent slight of hand."Oh don't worry about it, the seller pays my commission!" Yes, that may be true on paper, but guess what? The seller knows this too. Any offer is evaluated subtracting out the buyer's agent's commission. That buyer's agent's commission is being added to the deal thaats being rolled into the buyer's mortgage. No buyer should ever go into a real estate deal failing to understand this.

Like I said, I'm not opposed to buyer's agents I just think buyers need to understand that whether it looks that way or not on paper, they are in fact in effect paying their buyer's agent's commission one way or the other. Just because it's not a line item in the deal absolutely does not mean that figure is not being factored into the deal and the decision made by the seller. Take the buyer's agent out of the equation and they could get that property for that much less so the buyer needs to make sure that he/she is getting appropriate value out of that buyer's agent.

[RenoCarolina]

When I said earlier that you need a Buyers Only Agent I guess I could have said you need to have a signed agreement with your "buyer agent".  See below the highlighted segment of the Buyers Agent instructions.  It says that until you have a signed agreement you should "avoid telling the agent anything you would not want a seller to know". Granted, my court case that I pursued (settled in my favor) was over a decade ago but in the course of that legal action I was advised that this verbiage is in the contract because until you have it in writing ANY agent you use is working for the seller.  Period.  

My case did not go to court but I am not aware of any changes in this Real Estate law that would give the buyer complete confidence in picking their representation other than choosing a "Buyers Only" Agent.  In other words an agency that does not list ANY real estate and ONLY works for the buyers.  In purchasing property in the past 12 years I have exclusively done it myself or hired a buyers only agent.  

While I see Linville's point that the selling price is negotiated with agency fee's in mind that is relying on a sellers market to actually become reality.  Which I avoid at all costs! 

Quote

 

Buyers

When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer’s agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not.

Buyer's Agent 

Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer’s agent, you should avoid telling the agent anything you would not want a seller to know.

Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement before writing the offer. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Be sure to read and understand any agency agreement before you sign it. Once you sign it, the agent must give you a copy of it. 

Services and Compensation: Whether you have a written or unwritten agreement, a buyer’s agent will perform a number of services for you. These may include helping you • find a suitable property • arrange financing • learn more about the property and • otherwise promote your best interests. If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller. 
A buyer’s agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer’s agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.

 

Dual Agent

You may permit an agent or firm to represent you and the seller at the same time. This “dual agency relationship” is most likely to happen if you become interested in a property listed with your buyer’s agent or the agent’s firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer’s agent will ask you to amend the buyer agency agreement or sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Some firms also offer a form of dual agency called “designated dual agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party. If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of • what your relationship is with the dual agent and • what the agent will be doing for you in the transaction. This can best be accomplished by putting the agreement in writing at the earliest possible time.

Seller's Agent Working With a Buyer

If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller’s agent (or “subagent”). The agent can still help you find and purchase property and provide many of the same services as a buyer’s agent. The agent must be fair with you and provide you with any “material facts” (such as a leaky roof) about properties. But remember, the agent represents the seller—not you—and therefore must try to obtain for the seller the best possible price and terms for the seller’s property. Furthermore, a seller’s agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers’ agents before you say anything that can help the seller. But until you are sure that an agent is not a seller’s agent, you should avoid saying anything you do not want a seller to know. Sellers’ agents are compensated by the sellers.

(Note: This brochure is for informational purposes only and does not constitute a contract for service.)
The North Carolina Real Estate Commission P.O. Box 17100 • Raleigh, North Carolina 27619-7100 919/875-3700 • Web Site: www.ncrec.gov REC 3.45 3/1/13

 

 

 

[raz]

if it was me i would actually have a company who does foundation repair come out and give you a bid, maybe get 2 bids.  then you'll know what you're looking at, and get an idea of how long before you have to do it.  also you can ask the seller to subtract it from the price, or a percentage of it.   

[thefuzz]

1 hour ago, LinvilleGorge said:

I understand what you're saying, but what you're saying is classic seller's agent slight of hand."Oh don't worry about it, the seller pays my commission!" Yes, that may be true on paper, but guess what? The seller knows this too. Any offer is evaluated subtracting out the buyer's agent's commission. That buyer's agent's commission is being added to the deal thaats being rolled into the buyer's mortgage. No buyer should ever go into a real estate deal failing to understand this.

Like I said, I'm not opposed to buyer's agents I just think buyers need to understand that whether it looks that way or not on paper, they are in fact in effect paying their buyer's agent's commission one way or the other. Just because it's not a line item in the deal absolutely does not mean that figure is not being factored into the deal and the decision made by the seller. Take the buyer's agent out of the equation and they could get that property for that much less so the buyer needs to make sure that he/she is getting appropriate value out of that buyer's agent.

I think you mean buyers agent in the first sentence.

If the home is listed for sale by owner with no mention of buyers agent compensation, then yes, adding a buyers agent is going to cost the buyers money....that is such a small % of homes sales though.

Most sales are through traditional brokerage houses, meaning the sellers pay somewhere between 5-6% of the total sales price of the home.  Buyers agents brokerage gets 50% of that commission, and sellers agent's brokerage gets the remaining 50%.  The brokerage distributes the monies out to the agents at that time depending on their in house rules and agreements.

If you see a house listed on realtor dot com, and you go take a peek during an open house, and you do not have a buyers agent, the sellers are still likely paying the 5-6%, you just aren't getting the protection of having an agent on your side, and it's very possible that the listing agent will take the full amount of the commission if you all agree that he becomes a dual agent.

If a house is listed for sale by owner with no mention of buyers agent compensation, then the buyers could be paying for said agent....this is not normal AT ALL in day to day transactions.

 

 

[thefuzz]

1 hour ago, RenoCarolina said:

When I said earlier that you need a Buyers Only Agent I guess I could have said you need to have a signed agreement with your "buyer agent".  See below the highlighted segment of the Buyers Agent instructions.  It says that until you have a signed agreement you should "avoid telling the agent anything you would not want a seller to know". Granted, my court case that I pursued (settled in my favor) was over a decade ago but in the course of that legal action I was advised that this verbiage is in the contract because until you have it in writing ANY agent you use is working for the seller.  Period.  

My case did not go to court but I am not aware of any changes in this Real Estate law that would give the buyer complete confidence in picking their representation other than choosing a "Buyers Only" Agent.  In other words an agency that does not list ANY real estate and ONLY works for the buyers.  In purchasing property in the past 12 years I have exclusively done it myself or hired a buyers only agent.  

While I see Linville's point that the selling price is negotiated with agency fee's in mind that is relying on a sellers market to actually become reality.  Which I avoid at all costs! 

 

 

If you show up to an "open house", a model, a sales center, etc....and talk to the guy or gal in that home/office....the likelihood of them working for the Seller is almost 100%. 

If you call the number on the sign in the front yard, you are almost guaranteed to be speaking to the sellers agent.  This much should be obvious, but to many people it's not.

At then end of the day, if you live in a town for a long period of time, you should have an agent that you work with.  They can be your sellers agent when you sell, and your buyers agent when you buy...they will always work for you, unless you are purchasing a home they have listed...then you may want to get your own representation.  (that scenario is very rare)

However, to just walk into Coldwell Bankers office right now, and tell them you want to go looking at houses...that person is immediately working for you, especially if you sign the exclusive buyers agency forms.  (rarely happens).  They will (should) require you to sign a "working with real estate agents" form that explains agency (what protects sellers and buyers).  If there is any confusion, speak up.  Ask the agent who he/she is working for...they will explain it in as much detail as needed.

 

[thefuzz]

Back to the OP.

 

After thinking about this, I would go ahead and skip over the home inspector (still get it) but don't wait till then to reach out to some licensed and insured companies in your area that deal with foundation issues.

Get a couple of quotes, that way you are at least educated on the issues.