real estate

Not a real estate person, but we have bought 2 houses and sold 1.

First of all: Unless you hire an agent and sign a "buyer's contract" where you pay the agent out of your pocket, ALL AGENTS WORK FOR THE SELLER. If you go look at a house with Realtor "Bill" and find a house, decide to write an offer, etc. Bill is the "Selling agent" and usually deals with the realtor who listed the house for the sellers (the "Listing agent") but BOTH OF THESE AGENTS WORK FOR THE SELLER. Their commission is paid by the seller at closing. This means they have an obligation to get the highest price for the seller and they must disclose when they present an offer if you indicated you'd go higher. So if you mention you'll offer $130K, but will go to $150K, they must disclose this to the seller. What happens to your original offer? Expect a counter offer either for the $150K or higher. Same thing if you say "this is my dream house." If you want a realtor to represent your interests, you must sign a contract and that agent does not share in the selling commission. Listing agents really like this, because they don't have to share the commission.

Second of all: EVERYONE has their hand out during the transaction! You'll find people charging you for things you never imagined. You'll pay for a title search (to make sure the seller has a right to sell the property to you) and then you'll turn around and pay for title insurance in case the title search was defective. Some of it is a scam, but you really can't "opt out" of the fees, so just swallow hard and write the checks.

If you are buying in the South Bend area, let me know and I'll PM you the agent we used to sell our house there (10 years ago).

Hey,

I don't have an advice to give, but I just wanted to say good luck. I plan on buying a house this year, but think I will wait until after tri season. I'll definitely be following this thread....

If you don't get anyone else to provide the assistance you need, let me know, my mother has her own real estate company and has been a broker for years.  I can ask her whatever you want.

My advice is to look at For Sale By Owners... My mother is an agent and it's like this: You pay 200,000 to the seller for the house. The seller then has to pay his agent plus yours. But if there are no agents involved, you can get that same 200,000 house for 6% less. It's all about the bottom line for the seller. I wouldn't say all agents represent the seller - that is unless the agent represents both the seller and buyer. Then I'd be wary of what you tell the agent and your total interest in the house. I agree, there are fees out the wazooo for buying a home. You also have the right to request seller pay for certain things in your offer - ie home warranty, assistance in your closing fees, they fix or give money at closing towards fixing problems found during inspection etc... don't hesitate to ask for these - you have nothing to loose and the worst that could happen is the seller counters and you go from there. We got the home warranty and am so glad we did - the first year the ac broke (in texas) and it only cost us the $50 deductible to fix the 700 problem. as our house is older, we have kept the insurance each year covering ac, electrical, plumbing, water heater etc... we just took off the appliance as we had purchased new ones and they were insured by the maker.

stop by a title company and ask for a closing sheet and what are typical expenses paid by the seller and by the buyer.... this will give you a good idea of what you'll need at closing before you start your search. Also, something i didn't know despite mom being an agent - you have to make a deposit on the house with your offer (1000) - to show your true interest in the house. This deposit is then deducted from your closing costs.

Happy house hunting,
cathleen

In fact, a friend of mine who lives in Munster IN is trying to sell her house. (No agents involved). I can give you her number, if you are interested. Is Munster too far from South Bend?

THanks for the replys. Here's my situation. I have another two years of school here in IN. After two years I'm most likly going to move out of the state. I pay about 650 for an apartment, which is basicly being flushed down the drain. I need to figure out what I can afford, what I would be able to get out of it if I sell it. How much taxes are going to be. I'm thinking maybe getting something that need some work and fixing it.

Look at the ammortization, and you are pretty much flushing the mortage payment too during the early years. Buying and selling a house are a real pain in the *#&. If you look at all of the costs, (moving, commissions, utility hookups, etc.) it is hard to even break even in 2 years.

There were some very reasonably priced houses in South Bend, so the decision may rest on how quickly you think you can sell it in a few short years. Re-habbing a house can be fun/entertaining/profitable, but may not reconcile with a student lifestyle.

Thats what I don't know. Right now I'm looking at my options.


I might not mind owning a house in IN after I graduate. IN has a decent deer season and I'm not far from the MI season either

Edited by nbo10 2006-02-05 1:26 PM