My wife and I are first time home buyers and have found a home we would like to make an offer. The owner is not willing to pay an agent commission AND we found the home WITHOUT the assistance of our agent. Are we obligated to include our agent if we have no contract with him?If purchasing a home ';For Sale By Owner';, who prefers not to deal with agents, how do I negotiate the deal?
YOur not obligated unless the realtor mentioned the house to you.
I would worry more about the sellers. You are likely to get burned, as the sellers are not obligated to disclose very much to you and you are describing someone with something to hide.If purchasing a home ';For Sale By Owner';, who prefers not to deal with agents, how do I negotiate the deal?
BE CAREFUL!!
The simple fact is some For Sale by Owners are concealling hidden defects in the home! Be sure to hire a top notch home inspector to go over that baby with a fine tooth comb.
No, you are not obligated to have your agent. But ask the seller if he'll pay just 2% commish. so that you can get your agent to help you. To go it alone as first timers is tough! Often sellers will pay something, so that you can at least get your paperwork done professionally.
Otherwise if no, call a local title or escrow company and ask if they will help you put your offer together.
Ask you agent to just as a favor drive by the house to get their impression. Some homes that have been on the market for EVER, are for sale by owner, because the house needs a new roof, and has needed a new roof and the seller is not willing to re-roof or discount enough to cover the cost. Or some similar scenario. You agent will usually care enough about you to at least give it a free look see. Just ask!
Please be careful! Buying a home is very complicated and potentially end up getting you into a real bind with a home that needs lots of work that you can't see, from a walk through, there can be so many hidden defects!!!
Very best of luck!
there is no reason whatsoever to not use an agent when you are buying. The seller is paying your agents commissionnot you. it costs you nothing. the listing agent will get to keep any unpaid commission if you do not use a buyers agent. why would you not want to be represented for free?
You do not need an agent nor an attorney. You are not required to use anyone that you have not signed a written contract with.
Use common sense. Find out what the prices of houses are going for in that neighborhood. Look at the house,does the roof look as if it needs to be redone. Are there other things you are a little worried about. Ask any questions of the owner that you have a problem with. If the seller does not want to fix an item, just ask for a discount on the sale price.
Look in your telephone book and call an appraiser, tell this person you would like to be helped out with some compts. Give him the address he will come back to you with an approximate sell price.
Now you have something to work with. Go to the home owner and ask how much they are trying to sell the house for. If it is below what the appraiser quoted you for compts you would be pretty safe to make an offer.
If it is above the compts quoted you might ask if there is somethiing unique about the house that others don't knw about because your compts are lower than the sales price.
If the sales price and the compts are within a few thousand dollars of each other you are now in the negotiation phase.
Go home and write a written offer on the property. In this document write down what you are willing to pay (Sales price) What you can put down (Down Payment) The rest of the sales price will be a mortgage loan. put that down as a loan to be gotten by the buyers.
Now place todays date on this document, place a date on the document that you would like to see this transaction close allow yourself about 3-4 weeks.
There will be some closing cost so you might want to add that closing cost to be determined prior to closing, or each will pay their own closing cost.
You might also require, in addition to the appraisal an inspection to be paid for by the seller. If they say no then you will have to sit down and talk about it.
Put in this document that acceptance must be within 5 days of receipt by seller.
Now contact a local Mortgage broker to secure your loan for the rest of the sales price.
He will need to fill out an application on you and any one else that will be purchasing the house with you.
You will also need the following items
#1 One months of payhstubs
#2 Six months of all bank statements in which you bank to include any 401-k plan you have with your employer
#3 Two year of federal income tax returns and W-2 to match.
This application will take some time so don't get antsy just get yourself a cup of coffee or a soft drink.
This person will also need to run a credit check of all that will be on the loan also, he will get an authorization form signed by you.
Once this credit check has been ran, he can now tell you what loan programs you are qualified for based on your credit scores. He will tell you if you can get a 100% loan or if you have to bring in a down payment.
He will also have an indication of your interest rate.
Now if the seller accepts the terms you have outlined good, if not stay there until all is happy, not just you but the seller has to feel comfortable also. You a negotiating a contract, so leave your personal feelings at home as well as any ego you might have that I must win at all cost. Give a little allow a little wiggle room.
Once all is accomplish now sign this contract. Tell our mortgage broker and give him a copy of this signed contract. He will then open an escorw closing, order an appraisal and the title report for you. Tell him about the appraisal that got you the compts and that you would like for him to appraise the property.
Based on this signed contract the escrow closer well issue escrow instructions for the both of you to sign.
Soon you will get a call from your mortgage broker telling you that your loan docs are ready for signing and you need to set up an appointment to do this. Set aside some time for this, it will take awhile. You mortgage broker should have given you the interest rate, monthly payments, the number of years the mortgage note is for and if it is an adjustable mortgage or not.
Look for those things in the docs provided. If they match the things your broker has told you you are good to go. The rest of the documents there are simply federal and state required items.
One word of caution, watch what you are signing, once you sign these docs you are a home owner with monthly mnortgage payments. There is no I changed my mind, I thought once I signed I could get out of the contract. No true. In a refinance you have a three day right of recission,not for a purchase.
I hope this has been of some use to you, good luck.
';FIGHT ON';
Not unless you signed a contract designating that. I doubt you did. Anyway the best way to move forward is to hire an attorney, just to make sure all the paperwork is done correctly.
Another good source is if you are financing the home, go to the bank and ask what you need to do. They'll walk you through it and order everything they need to close. It's not nearly as hard as the Realtors make you think.
If like you say, you have not signed a contract with any real estate agent...you are not obligated by any mean to include any agent in the deal. Just make sure, you have a good lawyer to represent you, who will review any contracts for you.
You are within your legal rights to put an offer in on the home. My wife and I also bought a FSBO. We hired an attorney to write up the paper work and to do the closing. The fee was about $ 400 vs a 6% commission
Check out this Report called
';Three Rules for Negotiating with a Home Seller';
http://www.yourfreehomebuyingsecrets.com/three_rules.aspx
It's provided by an awesome Mortgage Consultant the I have worked with.
Good Luck!
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