Real estate General topic

[Jstpssng]

I've got about 30 years more to work, and wife too

This is a really good attitude to have. Conversely; you have 30 years to save money until the right property comes along.

 

[plowhog]

THey basically will do a verbal offer to the seller, not in writing until the seller says ok, then they make it in writing. Plus the deal above, I'm 99% sure the seller is the agents husband, but was not disclosed, and the question was not answered when I asked.

Those are such shoddy practices that it would get an agent disciplined in CA or NV.

 

[paulsharvey]

This is a really good attitude to have. Conversely; you have 30 years to save money until the right property comes along.

My comment on that is; you don't want to be retired and still making a mortage payment. Wife is approaching this as a 'rest of our life' move; I'm approaching this as, permanent, but things change. We are Not looking at a 5 or 10 year home though.

 

[ultrarunner]

No one wants to pay a commission because it adds to the price, I get that.

I guess selling a home and property is easy, but the reality is I don't mind paying a commission if it can save my ignorant butt on something stupid I could easily overlook.

When we bought our current home, we didn't sell our old home until about 4 months later. Then we had the option to buy the additional land because only then we knew we could swing it after we sold the old home.

I was very impressed with our real estate guy on that home buying experience. Without his expertise and contacts, the reality is we wouldn't have been able to buy that home.

When I sold my dads house for him when he was living with us in NC, my cousin recommended a guy in town where my father lived. My dad wanted the older woman real estate lady who he knew, but I went with my cousins suggestion. Guy driving a big dodge ram who did a lot of work himself and didn't dress to nice. The guy was good though and knew his stuff inside and out. Guy had a boiler replaced for us cheaper than I thought possible (although I told his guy it was a leak in the heat exchanger and he thought it was the hot water coil LOL). Guy handled everything for my father from start to finish, and was honestly amazing in helping me over 400 miles away.

There are good real estate agents out there, you just have to find them.

Some of my best purchases were made only because of my local Realtor...

She knew what I liked and when something came that way made sure I was the first to know...

She really earned her commission and I learned a lot from her.

Old school, specialized in a few neighborhoods and you couldn't go anywhere there without her calendar in the house which she personally went door to door each November...

Nothing happened that she did not know about...

 

[ning]

I'm fine paying a useful buyer's agent a commission. When we bought our current property, we weren't locals and the agent was instrumental in finding the right place.
Of course, it was also pre-internet (mostly) -- 1996.

Today, I'd be fine with signing an arrangement with a buyer's agent as long as there was a mechanism that if I found a property without them, they're not involved unless I involve them. If I track down the property and the agent isn't involved, they shouldn't get money. How that would work agreement-wise I'm not sure.

Likely my next property will be quite non-local so I'll almost definitely involve an agent - I'm expecting to change states and it's not remotely nearby. I'll want someone who knows the area well and hopefully has contacts, particularly because especially with "acreage" - undeveloped acreage at that - a lot of it doesn't even come on the broader market to change hands, and you're not necessarily going to see it at landwatch or zillow. At least that's my understanding. If that's true, then a good agent would be entirely necessary, invaluable.

If I was going to buy around here though, I'd completely avoid agents, I can manage everything and possibly engage a real estate attorney for contract issues if I thought it was warranted, but most of my offers up to now have been entirely boilerplate - agents have often just gotten in the way and definitely didn't come near earning their commision.

 

[paulsharvey]

The way I see it; but others are 100% free to feel different; you will never really be good at buying/selling homes, as you might only so it 2 or 3 times in your life. Sure, you can do a lot of research, but I do feel an agent has Much better general understanding that a common person. Do you get to keep your curtains, or rugs, or whatever. If you buy and sell your own stuff regularly, sure, you can get as good.

Also, I think the way to go, is a mix. Do your own research, and based on that, you can ask informed questions to the professionals.

 

[Jstpssng]

My comment on that is; you don't want to be retired and still making a mortage payment. Wife is approaching this as a 'rest of our life' move; I'm approaching this as, permanent, but things change. We are Not looking at a 5 or 10 year home though.

Conversely, much of the payment in the early years go toward interest. Saving more, and ensuring you are in the house you want will go a long ways in the future

 

[Sigarms]

But the agent I'd use if I sell my VA property (If I can find what I want in WV) I like. He seems to be on the ball.

Think it's no different than any other position people can hold. Some are on the ball, and those who are on the ball are generally successful. Knowing your industry along with caring and loving your job can also go a very long way of adding onto that success IMO.

I've been lucky. The only two times I've bought and sold a house, both guys were apparently good at what they did and I have no doubt that they actually cared about our interest in selling and buying.

As much as we complain about people who offer a service, we also forget that a lot of customers can be a Richard cranium. Part of the human experience

 

[WinterDeere]

The way I see it; but others are 100% free to feel different; you will never really be good at buying/selling homes, as you might only so it 2 or 3 times in your life. Sure, you can do a lot of research, but I do feel an agent has Much better general understanding that a common person.

Despite having started the buyer's agent bashing tangent, I do agree with you here.

I suppose it comes down to the market you're buying in. I have had the luck or luxury to time my real estate purchases to be always in a buyer's market, when inventory is moving real slow, and so really... the buyer's agent had zero to offer me. I have Zillow, I have Realtor.com, I can see all the same property availability they can, albeit maybe delayed a few days. In a buyer's market... who cares? I don't need to hand you an additional $30k, to show me the same property I found myself on realtor.com, when the seller's agent will do it for free.

But if trying to buy in a seller's market, when property is being snapped up as quick as it is being listed, then I would definitely want a buyer's agent. But not just any agent, you'd want one who is very senior in their area, operating in a larger firm, so as to have the most personal contacts built up from years in the industry. These are the folks who have the best chance to hear about listings before anyone else. That cute young Freshman agent you might be given, cold-calling a realtor's office, is not the one you want, in this scenario. Personal contacts count here, you gotta work them.

 

[etpm]

I never want to assume, but the co-worker, has a very black name. Is that part of the issue? IDK, but what are the odds...

You say you never want to assume, yet you just did. That's ********. And racist.
Eric

 

[Sigarms]

You say you never want to assume, yet you just did. That's ********. And racist.
Eric

I think you're being unfair to the OP by calling BS and a racist to boot, as he's only drawing a possible conclusion by and observation.

Perhaps you need to move from Washington State to California?

When I talked with Shatwanda over the phone, I'd be willing to bet deed to deed she was black after talking with her.

Yes, I am a racist...

Reality is racism and bigotry is rooted in ignorance.

 

[paulsharvey]

You say you never want to assume, yet you just did. That's ********. And racist.
Eric

I'm saying you don't want to assume the agent is steering based on race, but it is a possibility, intentional or not. It could also be just an incompetent agent, or one who thinks 0.25 acres is a yard and space...
Yes, 100% certain names, anyone can tell likely ethnic background, and if you want to deny that, you're putting your head in the sand. Now, if you are saying the agent is BS and racist, that may or may not be the case. All I'm saying is, it's kinda odd that this lady, who has a good job (not sure of her money situation, but she makes good income) tells an agent that she wants a decent yard, and some space, and the agent keeps sending her these little 0.25 acre and under properties.

Regardless of the cause, the solution is the same; different agent. I'm not saying file a lawsuit or call the NAACP, just get an agent that listens to what you want.

Edit: I really dont think it is intentional, as they only get paid if you buy; I'm assuming in her case, it's either incompetence, or kinda subconscious assumptions on what she really wants. I don't assume malicious. For the record, I have no idea of the ethnic background of the agent, and it could just as easily be same-same, and still be unintentionally steering

 

[ericm979]

, or one who thinks 0.25 acres is a yard and space...

It is to the vast majority of people. I wouldn't assume anything based on that except maybe that they don't deal primarily with large rural properties.

 

[etpm]

The way I see it; but others are 100% free to feel different; you will never really be good at buying/selling homes, as you might only so it 2 or 3 times in your life. Sure, you can do a lot of research, but I do feel an agent has Much better general understanding that a common person. Do you get to keep your curtains, or rugs, or whatever. If you buy and sell your own stuff regularly, sure, you can get as good.

Also, I think the way to go, is a mix. Do your own research, and based on that, you can ask informed questions to the professionals.

I owe you an apology paulsharvey. I should have contacted you privately with how I felt. It should not have been public. I also owe this community as a whole an apology. My comment could be seen as incendiary and that was not my intent. I have no excuse for my public comment.
Eric

 

[paulsharvey]

All good. I didn't mean to get anything side tracked; but if your agent isn't pulling their weight, ditch them.

My feeling with the agent, I'm find the properties, and only touring things we are legit interested in. The agent is mostly for the behind the scene stuff that I don't understand; what needs to be included in the offer, options in offer X, but have them cover Y in closing cost; ect. Yes, they are getting a significant chunk of money, but I also know I don't know how some of this stuff works.

Yes, I did take a real estate class 23 years ago; but I don't remember much, and didn't pay that much attention when taking it.

 

[paulsharvey]

Our agent does send pretty much everything with atleast 3 bed rooms, in the geographic area we asked for, with more than 5 acres, within the price range. 99% of the time, we have already seen them, and generally already pulled flood maps, wetland maps, and looked at zoning. We also do a drive by to check the neighborhood, the road condition, ect before scheduling a tour.

Wife and I both Hate the buying/salesman side of stuff; and although some enjoy going on tours, we view it as a means to an end, not a fun process. This goes for cars, tractors, ect. Try to have the facts first, then visit to confirm

 

[Oaktree]

Conversely, much of the payment in the early years go toward interest. Saving more, and ensuring you are in the house you want will go a long ways in the future

Before I bought my first house I never realized just how much you paid in interest over the life of the loan. It was in the mid 70s, interest rates were a % or so higher than they are today. Reading the fine print at the closing was quite a revelation...if I went the full term of the mortgage I would have paid roughly 2½ x the principal amount in interest!! You can bet I paid that one off early!

 

[Sigarms]

Before I bought my first house I never realized just how much you paid in interest over the life of the loan. It was in the mid 70s, interest rates were a % or so higher than they are today. Reading the fine print at the closing was quite a revelation...if I went the full term of the mortgage I would have paid roughly 2½ x the principal amount in interest!! You can bet I paid that one off early!

What's interesting is I'll look at the rate of inflation as to what was paid and what that money is worth today, but one thing I don't take into account is interest that had to be paid on the loan over that time to actually buy the home.

We took out a 30 year mortgage due to the cost of our home and land, but were able to pay it off in 15 years. I don't even want to think how much interest we paid.

Point being, someone bought a house in 2002 for $250,000, they actually paid well over 300K for the house when it was finally paid off.
It is nice though when EVERYTHING is paid off and you don't owe ANYONE any money

 

[paulsharvey]

We got a response from our 'bring all offers' owner. Only willing to budge a grand total of 2.5% of intial asking price (which is over our price we are willing to go to).

 

[WinterDeere]

We took out a 30 year mortgage due to the cost of our home and land, but were able to pay it off in 15 years. I don't even want to think how much interest we paid.

Definitely. Paying off early is the best way to save, even if you're suffering the higher rates of a 30-year fixed mortgage.

Round numbers, borrow $500k at 3.5% for 30 years, you're looking at paying back $808k, so $308k in interest alone. Pay that off in just 15 years, and total cost drops to $643k... you just saved yourself $165k.

But if you believe you can swing 15 years, you can save even more by signing for a fixed 15-year mortgage, as their rates are lower. In that case, your total cost might be only $600k, or $208k saved over a regular 30-year fixed term.

The bigger part of the savings is what sigarms did, just paying early. But the additional $43k saved by dropping to a 15-year's rates isn't exactly throw-away money, either.

The numbers I'm using above are admittedly dated, but do well to demonstrate the point. I think I got my 15 year mortgage at 2.125% in 2012, and 30-year was running at least 1% higher, at the time. If the rates are higher today, then even more important.