Home Selection Question

I agree with Dancer about the earnest money being kind of steep. How much is this townhome? I would imagine with a lease-purchase, $500 earnest money is fine. Understand that you will have to "hire" an attorney to read over those papers. If he or she isn't a specialist in Real Estate, I would be wary. You can't be a jack of all trades when it comes to the law. If this townhome is listed through a real estate broker, then I would "most definitely" get myself a buyer's agent. They will represent you at "no cost" to you. You need to understand that this real estate agent has a "fiduciary" duty to their client. It's kind of like using the same attorney in a divorce settlement. You wouldn't want to do that. This agent has a duty to make sure her client's best interests are served . . .over yours. Why pay an attorney who may or may not be "well-versed" in real estate law when you can have someone represent you, who "IS", free of charge. A contract does "NOT" have to have EARNEST MONEY to be valid. There is a "place" for it on the same pages as the contract, but a contract can be accepted and executed without EARNEST MONEY. I haven't heard of one that has. . . but, just the same, it is seperate. If you back out of the contract, the seller gets the entire amount of the EARNEST MONEY. Their real estate agent doesn't get a dime. She/He gets paid at closing upon the sale of the home or, in this situation, usually gets paid equal to a month's rent. I realize that you will be doing a lease-purchase and since you are doing that, I truly believe that $2K - $3K for the EARNEST MONEY is WAY TOO MUCH. You usually put a DEPOSIT (which, by the way, is NOT earnest money), which equals to first and last month's rent. Maybe that's where the figure of $2K to $3K came from? If you are going to be paying $1200 per month, that times 2 comes out to $2400K.

My suggestion, get yourself a buyer's agent tomorrow. If you'd like, I can refer you to someone in your area. Let me know. I'd be glad to help.

Keller

 

Don't get me wrong. I love Texas, it would just be nice to know I don't have to move again.

Dancer

 

tt00,
Keller can definately help you but I highly advise you to GET A BOOK AND START READING NOW!

Second, stop trying to talk to their realtor. YOU go get a buyers agent to do all the talking for you. DO NOT DISCLOSE any financial information to their agent because sure as your name is tt00, they will go back to the seller and tell.

Yes, the questions you asked are fundemental and they should have answered but since they're not cooperating with you, then maybe they'll listen to your agent.

You can look in the telephone book for a buyers agent - they are definately there. You can also go to www.realtor.com and see if you can find one in your state.

Go quickly! They can help guide you through this process because for someone who has never done it (and seasoned persons) it's very difficult! It's almost as twisted as credit repair.

 

and DO NOT, I say again, NOT, use a dual agent or an agent from the same office!

Dancer

 

Just noticed this thread, so I don't know if this has been approached.

As a Realtor myself, first I want to say, GET YOUR OWN REALTOR!!!!

Don't rely on the Realtor whose name is on the sign of the townhouse you're interested in. There's a good reason why you're asking the very questions here that you SHOULD be asking the one person who can truly anser them -- a Realtor.

Listen to your heart. It seems you're not comfortably asking these questions of that Realtor. That's because s/he represents the seller's best interest at this point...not yours.

Call around and find a Realtor with whom you're comfortable (ask the office manager to direct you to a townhouse experienced Realtor if necessary) or look in the newspapers and see whose name appears often on townhouse listings.

Then ask that Realtor for a consultation, letting him/her know that you think you've already found the property you're interested in and have lots of questions.

When you're comfortable with the answer, get a move on quick and have your own Realtor present an offer for that townhouse. (Generally speaking, Realtors are paid from the proceeds of the sale of the home, so you'll not be out of pocket and the townhouse won't cost you any more than if you go straight to the Seller's REaltor.)

Do it now! Time is of the essence!

(Gotta go take care of wedding stuff!!!)

 

Amen! I screwed up and called the listing agent's office and hooked up with another agent in the same office. BIG MISTAKE! I am now stuck dealing with the dumbest realtor on the planet! (Perhaps the dumbest in the solar system, I'm not sure.) They have systematically managed to offend the seller's in every possible fashion. My deal is in jeapordy due to them twisting things so that they can get their share in the way most convenient for the realtors.

Dancer

 

ttoo I am just now able to check back on the board from last evening. Have you already met this agent that you emailed? Where did you say that you lived? I may know someone that would represent you. At least it would be someone that I knew and would recommend. Email me if you're still interested in me making some calls for you. A Buyer's agent gets their pay from the seller's side, so a buyer doesn't pay the commission to the person who represents them. If I can help answer any other questions, let me know. I'd be glad to help. Buying a home is sometimes a frustrating and scary process. You definitely need to have someone working for you that you trust and feel comfortable with.

Keller

 

Just one additional note: If you ask "your" agent how much you should offer, don't be surprised if they say "the full amount". Remember that "your" agent gets paid based on how much the house sells for.......draw your own conclusions.

Dancer

 

Dancer, That's "sounds" like it would be true. And, I am sure that there are agents out there who would "try" and make that work for them. But Realtors have a Code of Ethics that they are sworn by. They have a fiduciary duty to their clients. They "MUST" represent their clients' best interests at ALL COSTS, including their commissions. There is a National Realtor Publication that goes out to every Realtor, with names of Realtors who have violated codes and laws. You wouldn't believe how many names are published in there each month! Some get probation, while others get their licenses revoked! Believe me, no-one would want to take a chance on having their name published in that trade journal for all of their peers to see. That Buyer's Representation Agreement that you sign, protects you, as well. If your agent is NOT representing your best interests, you can file a complaint with their state board. It's serious business. It's the same exact relationship as an attorney has with their client. There are good and bad people in every business. I would make sure that you work with a "Buyer's Agent". They specialize in representing you, the Buyer. A good tip . . .the "CBR" designation will be by their name on their business card. example: Keller Williams, CBR
That designation means that this particular agent took the time to educate themselves in being a Certified Buyer's Representative.

 

Please correct me if I'm wrong, Keller. But you sound very much as though you're a real estate agent yourself.

If so, it's proper for you to let "tt00" know this and also that you are entitled to a referrral fee should he use the Realtor you "make some calls and locate" for him. It's his right to know.

I understand that you're a "short-timer" on this forum. But "upfront and straight from the hip" is how we like to do things around here. So if it's true that you're a licensee as I am, please identify yourself as such when you're offering to "help" so that "tt00" can make the best decision for his/her own interests.

Let's keep things above board and honest here.

Thanks!

 

To safeguard against this, request that your agent draw up a comparative market analysis based on immediate area properties which are similar and have sold (not just listed) within the last 3 to 6 months. It is a calculated formula (with some "professional horse sense" thrown in), similar to the one the appraiser will use later to verify the home's value for the loan.

Most reliable agents do this as a rule. But don't be afraid to ask and be convinced of what you should offer.

 

I am not trying to offend you at all, but it seems as if you are about to make one of the biggest investments of your life and you have no idea what you are doing.

First, you NEED a buyers agent, and not one that works in the same office selling the home. Second, no buyers agent is free EVER. By free, she/he may mean that the other realtor will have to split their percentage of the sale with your agent. But, BE SURE to get that in writing.

Also, your earnest deposit IS high. The reason they are asking for that amount is because they KNOW you dont have an agent. Why wouldn't they? They know you don't know what you are doing.

Lastly, look around at MANY houses. I would never agree to wait 90 days to sell my home to someone. My other home was on the market for 33 days. In that period I had 4 offers. Chances are you will find something you like better, and if by chance that house is still available then buying that home is still an option.

 

Hope, I appreciate your concern for tt00. As I stated earlier, there ARE Realtors who, very simply put, don't do their jobs, . . .at their clients' expense. My email on this board is active and I can be reached through it anytime, for personal conversing.

I am sure that your intentions were not to insult me publicy, however, I feel the overwhelming need to defend myself. I realize that you do not know me and I may be "NEW" to this board, but I am not new to the concept of being an honest and ethical human being. I have a "personal" code of conduct that I follow regardless of where I am. Your feeling compelled to let me know "HOW WE DO THINGS AROUND HERE" was a direct attack against my character and probably should have been kept to yourself, especially since we haven't had the good fortune of getting to know one another. This isn't my first post on this board nor my first time to mention my profession. I cannot think of a way to make it anymore clear that I am a Realtor than when I stated it at the very beginning of this thread. However, if you misunderstood, then perhaps I should clarify what I meant to say in case there were others also. I AM A REALTOR. You had stated that you were and agent, Hope. I am not. I am a Real Estate Consultant.

When you have a minute, you might want to re-read this entire thread. IMHO it's always good practice to see where a thread started before you comment as it has great potential to go in various directions. I am sure that you are even more aware of this because you've been around here longer. I am sorry that we have gotten off on the wrong foot and hope that when we meet up on future posts, we can compliment one another's comments if we choose to try and help others with our knowledge.

tt00, good luck with your house buying, I think that too much advice can be a "bad" thing so I will just leave you with the previous info. You have my email if I can answer any other questions.

Keller

 

Thank you for clearing that up Keller. And I apologize if I offended you.

However, as I stated, I still believe it is only proper for you to have disclosed that you may benefit financially from any referrals you make here to other licensed real estate professionals.

As well, for our laymen friends here, it can be misleading to not properly disclose that the services of a Buyer's Agent are not technically "free". It's true that many are paid from the proceeds of the transaction; however, even Buyer's Agents are the first to disclose that their services do indeed also costs the buyer something, even if he or she does not write a check upfront for it.

Then too, some Buyer's Agents are paid directly by the buyer; etiher up front or by retainer.

I know that as we get to know one another from all of our posts here, we'll be able to compliment each others offerings, just as you say.

Meanwhile, may I respectfully suggest that each time you, I or any other licensed professional posts here on a topic that offers our help in services, that we also identify ourselves as such and, where applicable disclose any related financial gain?

You see, when a person is in dire straights for advice, he or she generally does not bother to search back through the previous posts of the the person whose advice and help they may be accepting. I've personally be "guilty" of this, as I'm sure many others of us have.

I'm sure too you'll agree, it's only fair to them to reiterate when applicable.

Sincerely.

 

Keller and Hope, no offense was intended in my earlier posts. I'm speaking from personal experience with "buyers agents" in 4 different states. If someone asks their agent "I really want this house, how much should I offer to make sure I get it?" They get told "Full Price".

Like I said, I don't have a problem with realtors. They are providing a service for a price. This is how they feed their families. You may personally be the most ethical individuals on the planet, however not everyone is immune to temptation. Many realtors I have dealt with have the theory that :If I know you can afford it, and you really want the house, AND it incidentally increases my commission, who's to prove that a full price offer isn't the best plan? After all, they could reject a lower amount but nobody turns down full price.

I just developed the mindset years ago that "Once an offer has been accepted, your realtor isn't working for you anymore, they're working for their commission." and it's stood me in good stead for years.

Dancer

 

Dancer,

No offense whatsoever is taken. As I'm sure Keller can also attest, there are unfortunately unethical real estate agents in our profession, just as there are unethical folks in all other walks of life.

It is the bane of my professional existence! And makes me and Keller work 3 times as hard to make up for their seamy behavior.

All the more reason to get your own agent. And make sure they are NOT a "sub-agent". That's a sector that's dying away in most parts of Texas, but is alive a kicking in others, as well as in other states.

A sub-agent represents the seller, even if that agent is with a totally different company than the listing agent!!! How 'bout them apples?

And don't get us started on dual agents, transaction brokers and the like. It can all be quite perplexing if you don't know who the players are.

But, as I said before, ask for an analysis of home sale prices, have your agent go over it with you thoroughly. Don't be afraid to ask questions. That's the beauty of having your own agent; he or she works for you! And has a legal responsiblity for your best interests in this transaction.

All scum buckets aside, the rest of us licensees take our responsibility to our clients very, very seriously. Besides which, we know that to be otherwise is not worth having our licenses suspended or even revoked. And our professional reputations damaged beyond repair.

 

"DITTO", Hope.