Blank.Page Post Count: 29 |
my fiance and i are going to start looking into buying a house here in a few months, and i just thought i'd ask some of your experianced home buyers some q's!
my fist one is, how does a realator work? like how do you pay them? i'm sure it's not hourly, so is it usually just one lump some, and if you decide not to buy a house, do they still get paid? also what are somethings you wished you had known then, that you do now?? any good tips? thanks so much! |
Charise Post Count: 4 |
You shouldn't have to pay a real estate agent. They get paid (typically) 3% of the purchase price upon the closing of the house. Some may charge a fee of a couple hundred dollars for their time, but any of the good ones will waive this fee. One tip I would suggest is to really figure out all of the numbers for different mortgage companies. There are so many programs that are offered, and they can make a big difference in your monthly payment. If you have any more questions, just ask! I used to work in the real estate business, and I just recently bought my first house in July.
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Blank.Page Post Count: 29 |
wow thanks for your help!i'll def keep you in mind when we get closer, cause i'm sure i'll be running into questions left and right!
if you live in the states (i live in ohio) can you recommend any good morgage companies that you know of, or the type of programs? |
Charise Post Count: 4 |
No prob! As for mortgage companies, I wouldn't go through any little fly-by-night companies. With the way the economy is right now, even bigger banks like Wachovia Mortgage were sold off to Chase. Bank of America has a good program right now. Also, how much are you planning to put down? We put very little down, so we went with an FHA loan. They have all sorts of programs for first time homebuyers.
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Blank.Page Post Count: 29 |
if we buy in a year we'd put down 5,000. if we wait 2 years it'd be about 10,000. whats fha loan?
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Charise Post Count: 4 |
Since you will be putting little down, I would def. look into an FHA loan. An FHA loan is a government backed loan, so you can get by without a big down payment. Plus they accept gifts from family if you were getting help from someone. Do you have money for closing costs? Those are what kills you. They can run anywhere from 3-5% of the loan. Also, if you go through a loan officer (as someone mentioned) they will charge you about 1% of the loan amount. So if you buy a house for 120 then they would get about $1,200. But it is worth it if you don't know what kind of loan to get or where to start. Don't worry about the inspectors, surveyors, closing attorney's, or anything like that until you have a contract to buy. Once that happens, your real estate agent should supply you with a list of people you can chose from to do those things. You will get walked through the process. :) Oh! And don't forget to get a pre-approval letter from your mortgage company before you go house hunting. Most people won't even look at an offer if you haven't even been approved yet. Not to mention, this may piss off your agent since they need to know they aren't wasting their time.
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Lauren. Post Count: 885 |
Actually, the realtor's commission depends on a couple of things. Usually the total taken out is 7%. If the listing agent sales the house, they get all 7%. However, if a realtor outside of the listing realtor sales it, they split it 3.5-3.5%. Of course thats just the "normal" amounts. Different amounts can be put in contracts depending on how you and your realtor write up your contract. (This is based off of the Real Estate agency I used to work for, as well as my sister-in-law being a broker of a Real Estate company.)
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Lauren. Post Count: 885 |
Another thing to think about is on your offer for a house, always shoot reasonably low. Chances are they'll give in before you get to your asking price. A lot of people also ask that the seller pay closing costs as well and work that into the contract. It never hurts to try, right? :P
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~RedFraggle~ Post Count: 2651 |
Things I'd wished I'd known before I started looking... if the price looks too good to be true, then it probably is. Before I found my flat I offered on three others, and they all failed their surverys... two for damp, and one for major structural damage (due to subsidence, which is a big problem where I lived at the time, due to all the old mines under the city).
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Blank.Page Post Count: 29 |
we've been looking a lot online, and have been lik e"wow that house is only 120?!?! what a steal. sad to know they'd prob fail too. *sigh*
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~RedFraggle~ Post Count: 2651 |
Well... not necessarily. The housing market is so slow at the moment (it wasn't when I bought 3 years ago) that you're more likely to find a genuine bargain now. But just be careful.
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kein mitleid Post Count: 592 |
Also be wary of the current mortgage loan market. To buy a home these days, you'll need 20% down and the monthly mortgage payments can't exceed 28% of your gross income, with total debt payments (i.e. car loans, student loans, etc.) not to exceed 36%. Otherwise, I'd be buying a house right now, too.
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~RedFraggle~ Post Count: 2651 |
Oh, I also recommend seeing a financial adviser. They'll be able to find you the best mortgage deal. You will of course need a good property lawyer, and a trustworthy surveyor (they may also be able to give you advice regarding areas to avoid, such as areas prone to flooding).
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Enlightened By Life Post Count: 14 |
There's some great advice already up here. Just to reiterate, DO be sure to go through a strongly reputable mortgage company, and have your figures sorted out before you get involved with your realtor. Also know that you can have a realtor begin to show you places, and you may decide to stick with this person or go with someone else if you find you don't quite like him or her. It shouldn't cost you a thing to have someone show you homes. Don't forget to be sure you have a home inspection when you find the one that tugs at your heart strings!
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Estella Post Count: 1779 |
GOSH, YO - WELL, I'M BRITISH, SO IT'S DIFFERENT HERE, AND THE REALTORS ARE CALLED 'ESTATE AGENTS'. WHEN I BOUGHT MY FIRST HOME, I DID THE FOLLOWING (WHICH WORKED FOR ME):
1. ASKED PEOPLE AT WORK FOR ADVICE (LOCAL PEOPLE ARE MORE LIKELY TO KNOW HOW IT WORKS IN YOUR AREA) - THEY TOLD ME THEIR EXPERIENCES OF VARIOUS MORTGAGE COMPANIES AND STUFF, AND THE STUFF TO LOOK OUT FOR. 2. WENT TO VARIOUS ESTATE AGENTS, TOLD THEM MY PRICE RANGE AND WHAT I WAS LOOKING FOR, AND ASKED WHAT THEY HAD TO OFFER. 3. HARDCORE HAGGLED - AND WHEN THE ESTATE AGENT SAID I WAS OFFERING TOO LOW, I SAID 'OH, NEVER MIND THEN, I DON'T THINK I CAN AFFORD IT SO I'LL LOOK SOMEWHERE ELSE'. THEN THEY HARDCORE TRY TO GET YOU BACK, YO! 4. PRAYED (WELL, IT DEPENDS WHETHER YOU BELIEVE IN GOD WHETHER YOU FOLLOW THAT ONE!). |
seasongster Post Count: 58 |
inspection, inspection, inspection. DO NOT buy a house without a full inspection. this should take about three hours for an average sized house, and you will get a report detailing every little thing the inspector could find wrong with the house. we bought last may, and the first house we put an offer on failed the inspection miserably.
the first thing a good real estate agent will ask you for is a list of what is non-negotiable. our list consisted of 'sound foundation, dry basement'. ;D most people need a certain number of bedrooms, bathrooms, certain amount of floor space, garage, big yard, fenced yard, close to certain schools, certain neighbourhoods, whatever. figure out what you NEED in your house, and what you can slide a little on if everything else is great. it will help you narrow down the insane lists of properties that your realtor might come up with, and will help them to serve you better by not showing you houses that you would never, ever consider. |