[wannabeabonedoc]

I'm moving soon and the wife and I are trying to buy a house. We went to look at a townhouse (read:affordable) and it looks pretty solid. BUT, I'm new to this whole experience so I was wondering if any of you who build/renovate/own houses could look at the pictures in the link and tell me what you think of it.

http://www.macneal.org

The selling price listed is if we have to go through a realtor. He said that if we do it without the realtor listed on that site, the price is 127,900. I was planning on offering him 126,000.

The guy selling is really honest and took me around to show me all the problems he encountered when he moved in. He apparently has re-done all the electrical work and plumbing and showed me any problem that he found was fixed. Just wanting your thoughts on the matter. Thanks

Gonnabeabonedoc

 

[I Are Baboon]

Looks pretty solid. 3 BR, 2.5 baths, plus attic storage? Sweet.

I really don't have an opinion on the price because I know nothing about the price of real estate in Virginia.

 

[douglas]

way cheap compared to my area.....and crazy cheap taxes, but 1200sq ft is kinda small espically

1)being theres so many rooms, each has to be pretty small
2)being theres no garage or basement, where to heck are you going to put all your bikes/bike stuff???

 

[Brian HCM#1]

It looks okay, have you continued to look around in your price range? Definitely get a Home Inspection, and make sure he/she is a member of ASHI. If mods have been made in a fairly new place I'd want them all looked at as best as possible. The last thing you want is moving into a place where modifications have been made, you go to change one thing and find all the previous work performed has to be ripped out because it's not done properly. What area are you looking in?

 

[Brian HCM#1]

The selling price listed is if we have to go through a realtor. He said that if we do it without the realtor listed on that site, the price is 127,900. I was planning on offering him 126,000.

And now on price, for a few thousand $'s less use a Realtor. Agents make between 2-3% on the sales end. I'd subtract 2-2 1/2% from the $129,000 and offer him that. If he's not going to budge, get a Realtor and protect yourself. Plus items may come up in a Home Inspection/Pest Inspection which will allow you to bargain even more.

 

[narlus]

do you really need a realtor for buying a property, if you've got a good idea of fair market price? i'd just get a lawyer to handle any legal issues.

 

[Brian HCM#1]

do you really need a realtor for buying a property, if you've got a good idea of fair market price? i'd just get a lawyer to handle any legal issues.

For a first time home buyer it might not be a bad idea to use a realtor.

 

[MtnBikerChk]

If you go without a realtor, make sure you have a DAMN good lawyer.

 

[narlus]

If you go without a realtor, make sure you have a DAMN good lawyer.

again, though...why would a BUYER need such great legal protection? a seller i can understand, but a buyer? maybe i am missing something?

 

[Brian HCM#1]

again, though...why would a BUYER need such great legal protection? a seller i can understand, but a buyer? maybe i am missing something?

I know California real estate laws are real tough. They are set to protect the buyers.

 

[narlus]

I know California real estate laws are real tough. They are set to protect the buyers.

ok....this confirms my opinion...

imo, realtors will do one main service for you as a buyer. find you a place. it's a fee which is taken out of the SELLER's price, though right? i haven't bought property in ~10 years but i don't recall us paying a higher price because a realtor introduced us to the property.

i could have it all wrong, but my recollection is that there's a listing fee for the seller's realtor, and a transaction fee too? which is all borne by the seller. if they don't want to use a realtor, and feel they have a good handle on the legal and market price aspects (and can draw the appropriate buying audience), they are in a position to save some $$$.

 

[Brian HCM#1]

ok....this confirms my opinion...

imo, realtors will do one main service for you as a buyer. find you a place. it's a fee which is taken out of the SELLER's price, though right? i haven't bought property in ~10 years but i don't recall us paying a higher price because a realtor introduced us to the property.

i could have it all wrong, but my recollection is that there's a listing fee for the seller's real tor, and a transaction fee too? which is all borne by the seller. if they don't want to use a realtor, and feel they have a good handle on the legal and market price aspects (and can draw the appropriate buying audience), they are in a position to save some $$$.

Yes they are paid off the selling price nothing comes out of the buyers pocket for that. There is way more entailed for a realtor than just finding a place. Sh*t we found our place on the MLS and had my agent just unlock the door for us to look. We also worked a 1% kick back from him on the purchase of the house. There still is a boat load of paperwork involved. If someone has a good understanding of construction knowledge then it's fine to go without a realtor, but for a newbie I still think it's helpful to have a realtor.

 

[narlus]

realistically, how many realtors are going to be well-versed in construction? not too many. get a home inspector w/ a great rep adn you are fine. sounds like bone-doc already has the property picked out, so no realtor service required on that end. any monkey can do paperwork, and that's what you hire the lawyer for.

seems like a pretty decision to me, in the absence of any compelling arguments.

 

[Brian HCM#1]

realistically, how many realtors are going to be well-versed in construction? not too many. get a home inspector w/ a great rep adn you are fine. sounds like bone-doc already has the property picked out, so no realtor service required on that end. any monkey can do paperwork, and that's what you hire the lawyer for.

seems like a pretty decision to me, in the absence of any compelling arguments.

A realtor will help bargin with the price if lots of issues pop up in the home inspection.

 

[narlus]

and this realtor is getting their cut of the sale, based on final sales price. right?

great incentive.

 

[Angus]

How old is the HVAC?

Did they use Good shingles (25-30 year type) during the build, if not a new roof is just a couple of years away,

Being a Townhome are there any association costs? I have a friend who had to chip in 3grand to his condo association because they voted to improve the parking lot.

Have it inspected by at least two different people, as different people catch different things.

I can't help you on pricing as markets are different, In Chicago that would be a bargain, In Little Rock that would be a rip-off.

Good luck

 

[douglas]

seller pays around 6%, normally 1.5%=broker, 2.5% listing agent, 2% buyers agent, if theres no buyers agent then the listing agent gets 4.5%

So why not have a buyers agent, to negotiate, look out and guide you thru the process??

I dont get why they are saying you will get a discount if you dont have an agent, unless its a FSBO? or being sold by a realtor?

 

[narlus]

seller pays around 6%, normally 1.5%=broker, 2.5% listing agent, 2% buyers agent, if theres no buyers agent then the listing agent gets 4.5%

So why not have a buyers agent, to negotiate, look out and guide you thru the process??

I dont get why they are saying you will get a discount if you dont have an agent, unless its a FSBO? or being sold by a realtor?

sounds to me like they are gonna pass the buyer agent cut to the buyer, in the guise of a reduced sale price. or at least a portion of it?

i looked @ zillow but there is no data in that area.

 

[Brian HCM#1]

i looked @ zillow but there is no data in that area.

Maybe that area doesn't really exhist

 

[Brian HCM#1]

seller pays around 6%, normally 1.5%=broker, 2.5% listing agent, 2% buyers agent, if theres no buyers agent then the listing agent gets 4.5%

So why not have a buyers agent, to negotiate, look out and guide you thru the process??

I dont get why they are saying you will get a discount if you dont have an agent, unless its a FSBO? or being sold by a realtor?

My thoughts exactly. My next door neighbor was thinking of buying my house a few months back, I was willing to drop the price by $25,000 from the asking price and just have my agent write up the deal for only 1% total. I would have actually made a little more than what I would have sold it for asking price after paying commission.

 

[MtnBikerChk]

again, though...why would a BUYER need such great legal protection? a seller i can understand, but a buyer? maybe i am missing something?

How about someone to protect the buyer's interests? ....to make sure the contract is binding and doesn't have any hidden language in it etc etc?!

To make sure the laws specific to your state are followed?!

How can you think a buyer wouldn't need legal protection?

 

[narlus]

but yeah, a regular lawyer could handle this...it's not like you need johnnie cochran on retainer.

i still don't get why a realtor would be so useful in this situation.

 

[ktmsx]

First a townhouse will have a monthly fee in my opinion you might as well buy a single family house with a yard....second the market is way...up it is a great time to sell bad time to buy...keep renting for a year and watch the prices drop....

 

[buildyourown]

I would definitly use a realtor for your first house. There are lots of things you don't know about real estate, hence your post, that a realtor can walk you through. On the buyer end, any additional costs (actually 6% of sale) are covered by the seller. Sure, you might get the home for a bit cheaper, but it won't really affect the amount of your mortgage payment by more than a few $ a month.
When we bought our house, we used a regular highly recommended agent. The seller was using a discount (or 5%) agent. Our agent walked all over the seller and saved us thousands. Combine that with the fact that the house was underpriced by 20k, and the seller easliy blew $25-30k by trying to save 1%.

 

[buildyourown]

Oh yeah, it's illegal for an agent to represent both a buyer and a seller in the same deal. They will try, and you should call them out on it. It should be a red flag that something is up.

 

[Brian HCM#1]

Oh yeah, it's illegal for an agent to represent both a buyer and a seller in the same deal. They will try, and you should call them out on it. It should be a red flag that something is up.

Not here in California, it's fine to do that.

 

[ridetoofast]

a huge thing to consider with commanality (sp?) of structure is how the shared burden is considered. by that i mean if your neighbors roof leaks, which subsequently affects YOUR structure, WHO is responsible for the repair. with a townhouse id say that has got to be the most paramount concern. all the things already mentioned about the infrastructure are valid too, but if you aren't clear on the language/responsibility of that thing over your head that you all share, you could be in for one very painful experience.

 

[MtnBikerChk]

but yeah, a regular lawyer could handle this...it's not like you need johnnie cochran on retainer.

i still don't get why a realtor would be so useful in this situation.

I wouldn't hire johnie cochran - I'd hire a real estate lawyer.

 

[narlus]

I wouldn't hire johnie cochran - I'd hire a real estate lawyer.

that's good, because johnnie's not taking any more cases these days.

 

[ridetoofast]

did he retire? :devil:

 

[manimal]

129k for 1200 sqft? virginia must be A LOT more expensive than here in NC. brand new townhomes, 3/2 1500-1800 sq ft are under $120k.
i didn't think there was that much disparity between us

 

[narlus]

did he retire? :devil:

i think it was involuntary retirement.

 

[luelling]

but yeah, a regular lawyer could handle this...it's not like you need johnnie cochran on retainer.

i still don't get why a realtor would be so useful in this situation.

I had an real estate agent I worked with when I bought and he was killer. He was young (around 30), trust worthy, and found us exactly the house we wanted. I think the biggest thing about him and why he did such a good job is because he is solo and not with soem firm. He didn't advertise, and only did business by word of mouth and I can tell you that I would recommend him to anyone.

He worked on a percentage as you had mentioned earlier, but encouraged waaaaay low balling people in housing offers (which cuts his margins). That to me was a big indicator, plue he worked a LOT with use for several months and only made about $3k on the deal when we finally found a house we liked. My opinion from the deal (this is my first house purchase though) is that a having someone help you find a house can be good, but all of the cookie cutter agents we talked to before him sucked....in this situation going with the small guy paid off.

 

[KenW449]

Rather than start a new thread, i will revive this one. My lease is up on my Apartment in about a month or so and rather than extend, i would rather spend the money and buy a house. Im pre-approved for about 150k at 4.2%, though not set in stone because i need to get all my documents in proving how much i make. Found 2 places so far close to work, but not home to see them yet. I hate my noisy upstairs neighbors and how far i have to walk from my apt door to my car door. Makes for carrying large heavy things a worse experience. Im on the second floor but still need to go up 2 flights of stairs. Any help in the process about whay to expect is appreciated. One is 4 bed rooms, the other is 3. I would rent one to my buddy to help pay for costs.

 

[jonKranked]

pro tip: aim for less than what you're approved for.

 

[Westy]

pro tip: aim for less than what you're approved for.

That is pretty good advice considering he probably cannot get a mortgage for more than he is approved for.

However when trying to decide how much to spend one really should put together a detailed plan. If you have a very stable job and expect to get >5% raises every year and plan on living in the place for a long time one may be better off pushing what they can afford today, especially if you are planning on having a roommate to cover the mortgage.

On the other end of the spectrum if your job is not stable and you can't count on raises, can't count on a reliable room-mate you probably want to spend significantly less than what you are qualified for.

Definitely budget in maintenance and repair costs. How old are the systems in the house? Roofs need replacing every 30 or so years, siding 50 years, hot water heaters 10 years, HVAC systems 15-30 years, Sewer lines 50 years, plumbing, septic tanks etc. You probably will end up doing most of the work for regular upkeep like yardcare etc, but you will need to buy lawn mowers, ladders and other tools.

 

[KenW449]

pro tip: aim for less than what you're approved for.

I am, place 1 is 125k, will try to offer less if i like it. 1800Sqft on 8300sqft plot 4bed 2 bath built in 49. Looks remodeled though.
Place 2 is 90k, foreclosure valued as 166k. 2000sqft on 10000sqft plot. 3 bed 2 bath, built is 62. Only 1 picture from the outside, dont know what the inside looks like.

 

[KenW449]

If you have a very stable job and expect to get >5% raises every year and plan on living in the place for a long time one may be better off pushing what they can afford today, especially if you are planning on having a roommate to cover the mortgage.

Damn, Westy is being helpful with relevant info! I always like your left field answers though. Anyway, i do have a steady job that i can expect raises with. The roommate is just an extra money saving factor, not a requirement. The loan agency will only give me then estimated property value or negotiated price, whichever is lower. House 2 is being sold for 70k under market value so they would only give me 90k.

 

[Westy]

Damn, Westy is being helpful with relevant info! I always like your left field answers though. Anyway, i do have a steady job that i can expect raises with. The roommate is just an extra money saving factor, not a requirement. The loan agency will only give me then estimated property value or negotiated price, whichever is lower. House 2 is being for 70k under market value so they would only give me 90k.

I don't know where you live but if this is your first time get a good real estate agent. Every region has different things you need to look out for when buying, whether it is aluminum wiring, termites, sinkholes, cardboard sewer pipes etc. Your agent should be able to tell you what to look out for, it is also important to find a good inspector who will do the same.

It is common in places with higher home prices to have Agents that will kick back 1-2% of their commission. That may not be a possibility where you are, but worth looking into.

 

[jonKranked]

foreclosures are always a gamble. i have a buddy who buys rental units, he's bought a couple foreclosures, some of them of been fine, but he's had a couple that needed a lot of work to make them habitable, and 1 that was a complete gut job.

when i was looking at houses i remember seeing one house, which, while not a foreclosure, had sold at auction previously. from the outside, it didn't look like anything some cleaning wouldn't address. the inside first and second floor were dirty and dated (90's construction) but nothing too terrible. what was telling was the box of respirators on the kitchen counter along with a sign that said "for basement use".

when the person who bought the house at auction got inside and saw how bad it was they turned around to sell it straight off. the prior owner apparently had a gambling issue. when he vacated he left a basement window open (probably out of spite). water got in. it was abandoned so long that power got turned off and the sump pump stopped working. this eventually led to black mold. LOTS of it. the basement and hvac would have required pretty much a full gut job to properly address. they were asking something like $200k for the house, but our real estate agent estimated at least another $200k to get the house habitable. in good liveable condition the house would probably appraise around a half million.