House purchase/realtor questions

[Aaron]

My wife and I are starting to think about taking advantage of the 8k tax credit again and had a few questions about realtors and buying in general.

 

If we get a realtor, who pays them? Do we? The seller? etc

 

Do you really need a buying realtor?

 

How long does the average closing take?

 

What downpayment do most lenders require? The last time I checked, 3.5% was what we were seeing.

 

What would you guys do differently if you could buy your first house again?

 

If you bought a condo for your first place, do you regret it? would you do it again?

 

Any other first time home buying comments you have would be great. Just trying to get people's input so we can make the best decision.

 

Thanks

[ICEMAN1647545504]

3.5% is the down payment needed. Unless you buy a HUD owned home, than there is a program that you only need $100 down. The realtor gets paid from the proceeds of the sale and that is normaly 6% of the purchase price unless you have a buyers and sellers realtor than they split the fee (the fee is added to the sellers side and comes off the top of the purchase price). A lot of people feel that they can buy a "for sale by owner home" and save the 6% on realtor fees because they can get a lower price from the homeowner. A condo will be nice if you want maintanance free living. They are usualy a little cheaper than houses and more affordable for nicer naighbrohoods. I can PM you my number and give you a little more advice since I have owned a condo and a house and I'm in the business.

[wnaplay1647545503]

If we get a realtor, who pays them? Do we? The seller? etc

Usually split between realtors from sale. Your realtors rate can be negotiated if realtor is willing.

Do you really need a buying realtor?

Dont have to but they do have additional resources and experience.

How long does the average closing take?

We closed on our first home in 24hrs, however we were pre approved and I inspected my own home.

What downpayment do most lenders require? The last time I checked, 3.5% was what we were seeing.

Depends on lender, we payed zero.

What would you guys do differently if you could buy your first house again?

I would have forseen the future and bought now when houses are cheaper

 

If you bought a condo for your first place, do you regret it? would you do it again?

I have a few friends who did and all regretted doing so.

Any other first time home buying comments you have would be great. Just trying to get people's input so we can make the best decision.

Use a good inspector and ask questions. Ask him how old and in what condition major items such as windows, the roof, hvac unit are in and how long til they need replaced.

[Aaron]

Thanks for the help guys.

 

So if we "hire" a buying realtor, we don't have to pay her anything? Her income is earned when we buy a house, and is paid by the seller. Is this correct?

 

I don't particularly want a condo, the wife just likes the idea of getting a nicer place with our money.

[wnaplay1647545503]

Yes thats typically how the realtors are both paid. Seller pays both realtors/they split the fee based on selling price.

[dakotart]

What i have learned so far in my search for a house...

 

Lenders are typically demanding a higher downpayment for condos.

 

you should get a buyers realtor to help make sure you don't get taken to the cleaners.

 

promptly fire your realtor if she (or he) is an idiot and get a new one.

[Akula]

You don't pay the Realtor when buying, the seller gets to pay that. If you walk into a deal without a Realtor, you walk into a situation where you know the least. Get a Realtor.

[Nitrousbird]

If we get a realtor, who pays them? Do we? The seller? etc

- In general, the seller pays the realtors 6%, and is normally split equally between the buyer's agent and the selling agent.

 

Do you really need a buying realtor?

- Yes. It's not like you are going to get the house cheaper without one, and a GOOD buyer's agent does a lot for you.

 

How long does the average closing take?

- Depends. Normally figure 6 weeks or so if everything is a conventional sale. Short sale = many months. Foreclosed homes are a little quicker...our forclosed purchase took about 10 weeks.

 

What downpayment do most lenders require? The last time I checked, 3.5% was what we were seeing.

- Depends on the loan. Most want 20% now days. You'll take an interest hit + pay PMI with anything less.

 

What would you guys do differently if you could buy your first house again?

- For my wife, she wouldn't have got a condo. For me, ehh, it fit my circumstances at the time, though I wish I had done more to it while I lived there.

 

If you bought a condo for your first place, do you regret it? would you do it again?

- DO NOT BUY A CONDO. My wife was luckily smart enough to buy a unique and desireable condo in a great location, otherwise she would have either taken a loss on it in this market or never sold it at all. Condos are a hard sale, and you get NOTHING for it. For the price of those condo fees, you can pay someone to mow your yard and shovel your snow. Use the remaining money to save back for outside repairs when needed.

 

If you decide to buy, I'll send you the number to our realtor. She is REALLY good; got our condo sold when other units at a similar price with more done to them couldn't sell theirs. She is the ONLY reason we were able to get the sweet deal we did on our home. She is an awesome realtor, and I'd recommend her to anything. And she will fight for you (had to several times for us...she is fully cool with being the bad guy when needed).

 

I will also say don't pick a realtor just because they are related to someone you know, or some friend that is starting out. You WILL regret it. Pick one that is recommended and has a good track record. We did and know we made the right decision (hell, we still chat with her from time to time, and she will be the one listing my Reynoldsburg house when it is ready).

[Doug1647545489]

Most people have already hit on the important stuff. Before you start looking, go into the bank and get pre-approved and discuss your loan options. Have all the necessary paperwork ready upfront. It makes underwriting much quicker. You can usually push hard and close in 30 days. Most close in 45-60 days. Don't feel obligated to spend the entire pre-approval amount. If you have good credit you'll probably still get pre-approved for an amount that will still stretch your monthly income. I was approved for $240k and only spent $195k. $200k was really my comfortable ceiling. I still got a sweet house, but I also still have lots of money each month for my savings/spending.

 

Don't be afraid to go through a few realtors until you find the one that really knows what you want. I did a lot of my own research and used my realtor to hammer down the prices and open doors.

[Bam]

I'll just say a few things as I bought my first house a few years ago...

 

-My closing took exactly 1 week from my offer to when I had the keys.

 

-A good realtor makes all the difference, I'm still friends with mine and in fact we've gone to a couple buckeye games even this season together, and I bought in 2007, he's just a good guy and excellent resource.

 

- Try to have a nice down payment saved up. Not only will it save you money in interest each month, interest rate as well as amount, but if you can get at least 10% down you get either take a slightly higher rate instead of PMI, still costs you more than having a full 20%, but not as much as PMI outright. Or just wait until you have the 20%, then get a killer rate on your mortgage and not waste $100+/month on PMI. Or buy a fixer-upper that you know will appreciate so that you only owe 80% or less, fix it up and refinance. This is what I did, I refinanced exactly 13 months after I bought my place, and I originally put 10% down and got a 6.65% rate 30yr fixed. When I refinanced I had enough equity that I got 4.95% 30 yr fixed, it knocked about $150/month off my mortgage.

 

-I think the housing market will be low for awhile, given the economy and job market, so I don't really see the rush, and as you can tell, the government extended the credit so there will probably be something in the future when you're ready to buy a house.

 

- I wouldn't buy a condo in this market, or probably ever. They historically DO NOT appreciate like a house, unless in a good market/city, like NYC or something, but generally they are a risk when trying to sell. Unless you buy a cheap one that will just sell itself.

 

-Lastly, LOCATION, LOCATION, LOCATION. - Do not settle for an area you don't like or doesn't have a good report. It will not only likely affect your quality of living but it will make it hard to resell it as well.

 

Good luck, definitely get pre-approved, it makes things go MUCH faster when you find "the one"

[craig71188]

I think most of the key points have been covered, but I'll ad a couple of comments/clarifications:

1) Your realtor is paid by the seller (unless you hire buyers broker and pay them), this means they are actually "employed" by the seller. Technically, they have to share your comments with the seller if asked. Unless you know your realtor very well, be carefull what you share with them when negotiating a price as far as how much you are willing to spend/go, etc.

2) Condo's are OK, but keep in mind you will pay a monthly "condo fee" on top of your payment. This fee can change (and usually does) each year depending on what your owners board decides to do as far as upkeep and improvements. If you get a decent one, it can be something you can use for income property down the road (but if you are interested in that, check into your condo communities rules first).

3) Research! www.realtor.com is the full MLS site. Also check the Franklin County Auditors site http://www.franklincountyauditor.com/ to further research your neighborhoods (see what houses have sold for and when) and any house you may be interested in buying (see when sold, improvements, prices).

4) Get a good home inspector - recommended by a realtor, check references, check BBB - some are just about worthless, others are great and can save you money if they find issues you missed.

 

My mother was in the business and I did sell my last house / bought my new house without a realtor - but unless you've got experience and or a really good information source, you're best off using a realtor.

[Supplicium]

Ive been looking at houses for about a year now and I finally decided to get a condo. A lot of people dont like them for their reasons but in my situation there are more pro's then cons. My plan is as soon as I pay off a condo I am going to move to FL get a house and keep the condo up here.

[Nitrousbird]

I'll just say a few things as I bought my first house a few years ago...

 

-My closing took exactly 1 week from my offer to when I had the keys.

 

-A good realtor makes all the difference, I'm still friends with mine and in fact we've gone to a couple buckeye games even this season together, and I bought in 2007, he's just a good guy and excellent resource.

 

- Try to have a nice down payment saved up. Not only will it save you money in interest each month, interest rate as well as amount, but if you can get at least 10% down you get either take a slightly higher rate instead of PMI, still costs you more than having a full 20%, but not as much as PMI outright. Or just wait until you have the 20%, then get a killer rate on your mortgage and not waste $100+/month on PMI. Or buy a fixer-upper that you know will appreciate so that you only owe 80% or less, fix it up and refinance. This is what I did, I refinanced exactly 13 months after I bought my place, and I originally put 10% down and got a 6.65% rate 30yr fixed. When I refinanced I had enough equity that I got 4.95% 30 yr fixed, it knocked about $150/month off my mortgage.

 

-I think the housing market will be low for awhile, given the economy and job market, so I don't really see the rush, and as you can tell, the government extended the credit so there will probably be something in the future when you're ready to buy a house.

 

- I wouldn't buy a condo in this market, or probably ever. They historically DO NOT appreciate like a house, unless in a good market/city, like NYC or something, but generally they are a risk when trying to sell. Unless you buy a cheap one that will just sell itself.

 

-Lastly, LOCATION, LOCATION, LOCATION. - Do not settle for an area you don't like or doesn't have a good report. It will not only likely affect your quality of living but it will make it hard to resell it as well.

 

Good luck, definitely get pre-approved, it makes things go MUCH faster when you find "the one"

You info is dated.

 

- 1 week closings are things of the past. We couldn't get a closing that quick with a CASH BUYER!

 

- Banks won't give you anything special for a 10% down payment now. Their lending rules now are VERY different than what they used to be. Remember how they would give a loan to any hood rat with a SSN? Those days are long, LONG gone.

 

- I just spoke to my realtor today; she said the market is still strong for the under 200k homes, and we were speaking about when we can get my Reynoldsburg house listed. She is doing comps for me right now.

 

- Unless you are buying a hot property (such as a foreclosed home, or a new, cheap listing that is sure to go quick), you aren't nearly as hard pressed to get a pre-approval. And in all honesty, that's not the lengthy process. The banks (and their underwriters) are uber-strict on properties now, and they are the ones that will slow you down. Now if you are wanting to get a hot property, you need to have your ducks in a row. Pre-approval, and the balls to make a same day offer. I had 1 day to make an offer on what is now our home, and the next day to make our best and final against the other offers. But buying a foreclosed home is a whole other ball game...we purchased in June, and could sell it today very easily for a nice profit, so there is a reason the right ones go fast.

 

Now is the time to buy due to the tax credit...that's a nice chunk of money to help out, good till April 30th.

[Aaron]

You info is dated.

 

- 1 week closings are things of the past. We couldn't get a closing that quick with a CASH BUYER!

 

- Banks won't give you anything special for a 10% down payment now. Their lending rules now are VERY different than what they used to be. Remember how they would give a loan to any hood rat with a SSN? Those days are long, LONG gone.

 

- I just spoke to my realtor today; she said the market is still strong for the under 200k homes, and we were speaking about when we can get my Reynoldsburg house listed. She is doing comps for me right now.

 

- Unless you are buying a hot property (such as a foreclosed home, or a new, cheap listing that is sure to go quick), you aren't nearly as hard pressed to get a pre-approval. And in all honesty, that's not the lengthy process. The banks (and their underwriters) are uber-strict on properties now, and they are the ones that will slow you down. Now if you are wanting to get a hot property, you need to have your ducks in a row. Pre-approval, and the balls to make a same day offer. I had 1 day to make an offer on what is now our home, and the next day to make our best and final against the other offers. But buying a foreclosed home is a whole other ball game...we purchased in June, and could sell it today very easily for a nice profit, so there is a reason the right ones go fast.

 

Now is the time to buy due to the tax credit...that's a nice chunk of money to help out, good till April 30th.

 

Yep, thanks for the info.