Originally posted by: Marlin1975
Please tell me this is SF or some other "high" end part of CA? Cause 1050sqf for $230K
you realize that the median home price in Santa Clara county (~30 miles from SF, home of Silicon Valley, mostly older suburban tract housing, nothing special) is about $720K? $230K for a cardboard box would be an outrageous bargin in the ghetto, let alone the "high end" places. In even moderately middle class areas, 50 year old houses with nothing special to recommend them can flirt with $1 million. I'm on the fence about whether or not it is a bubble. I think as long as people have jobs in this area, the housing prices are going to stay up.
I am going to call a realtor tomorrow and have them help me out.
That will be no help at all. You'll just be losing 3.5% of bargaining room... wait a minute. If you offer her the full $230K, and you have an agent in tow, your agent will get $8K at 3.5%. That would leave Ms. Gougemeister with only $222K. Hmmmmm... :evil:
HTF could she wrangle her way out of paying that 3.5% to your agent?
That will be no help at all. You'll just be losing 3.5% of bargaining room... wait a minute. If you offer her the full $230K, and you have an agent in tow, your agent will get $8K at 3.5%. That would leave Ms. Gougemeister with only $222K. Hmmmmm... :evil:
HTF could she wrangle her way out of paying that 3.5% to your agent?
It's her house, she can sell it for whatever price she wants to.
Who are you to say what people can/can't charge?
Who are you to say what people can/can't charge?
Originally posted by: Ornery
I am going to call a realtor tomorrow and have them help me out.
That will be no help at all. You'll just be losing 3.5% of bargaining room... wait a minute. If you offer her the full $230K, and you have an agent in tow, your agent will get $8K at 3.5%. That would leave Ms. Gougemeister with only $222K. Hmmmmm... :evil:
HTF could she wrangle her way out of paying that 3.5% to your agent?
She can't and it would not help like you say. The only way she would consider negotiating a lower price was if I don't go with a realtor but I don't feel 100% comfortable with that.
As I said I am a n00b house buyer and don't really know the way it's done.
I think I am going to let this go. Don't want to rush into anything.
Originally posted by: Marlin1975
Please tell me this is SF or some other "high" end part of CA? Cause 1050sqf for $230K
Phoenix is like that now.
Sphexi
Diamond Member
- Feb 22, 2005
- 7,280
- 0
- 0
The neighbors that just moved actually moved to Charlottesville, the husband has a job there and hated the commute. I thought it was stupid to move that small distance, but that's just me, people up here commute that distance everyday without complaint.
The only way she would consider negotiating a lower price was if I don't go with a realtor
You already said, "She'd not take anything less than $227k". So, what really is her bottom line? She walks away with no more than $222K if you drag an agent along. Give her one chance to sell it to you for $223K, or you'll be back with an agent to fill out the papers at full asking price. You should be able to get your agent to kick back the difference to you, since it's only an afternoon's worth of "work" on their part. It could be called a "finder's fee" or some such BS.
You already said, "She'd not take anything less than $227k". So, what really is her bottom line? She walks away with no more than $222K if you drag an agent along. Give her one chance to sell it to you for $223K, or you'll be back with an agent to fill out the papers at full asking price. You should be able to get your agent to kick back the difference to you, since it's only an afternoon's worth of "work" on their part. It could be called a "finder's fee" or some such BS.
OP - Being a noob at the home market I would advise you to do a few things.
1. Get realtor, it costs you nothing and the amount of reasearch they should do for you will be very beneficial to you. As for the, "you will lose the 3.5% bargaining power" idea, I do not agree with it. Say the realtor finds you a house that suits you better, is priced better, and then they negotiate that price down by 10-12k. All of a sudden you have a better house for less money that someone else spent the time looking for based on your preferences. That the lady will give you 3.5% off is not guaranteed, she is looking to save 3.5%, why would she give it all away to you?
2. Keep looking. Although it is hard, try not to get stuck on one house, unless there is something so star studded about it that you can't walk away from. Something else will always come along.
3. There is a lot of paperwork involved in this process and each player will play their roles. The realtor will find and negotiate a house that you like, the appraiser will give you a fair market value, and the lawyer will make sure the contract terms are reasonable. It is in your favor to have all of these people on your side. When spending $200k+, $600-800 for a laywer, appraiser, and realtor is NOTHING
Lastly let me put this all in perspective. I am a realtor in Chicago. This is meant as general information only for the purposes of helping a fellow AT'er out. People may say to forget a realtor, that is up to you, it costs you nothing.
Finally my caveat, I live in IL, not VA, so take it for what it's worth. And Good Luck!
1. Get realtor, it costs you nothing and the amount of reasearch they should do for you will be very beneficial to you. As for the, "you will lose the 3.5% bargaining power" idea, I do not agree with it. Say the realtor finds you a house that suits you better, is priced better, and then they negotiate that price down by 10-12k. All of a sudden you have a better house for less money that someone else spent the time looking for based on your preferences. That the lady will give you 3.5% off is not guaranteed, she is looking to save 3.5%, why would she give it all away to you?
2. Keep looking. Although it is hard, try not to get stuck on one house, unless there is something so star studded about it that you can't walk away from. Something else will always come along.
3. There is a lot of paperwork involved in this process and each player will play their roles. The realtor will find and negotiate a house that you like, the appraiser will give you a fair market value, and the lawyer will make sure the contract terms are reasonable. It is in your favor to have all of these people on your side. When spending $200k+, $600-800 for a laywer, appraiser, and realtor is NOTHING
Lastly let me put this all in perspective. I am a realtor in Chicago. This is meant as general information only for the purposes of helping a fellow AT'er out. People may say to forget a realtor, that is up to you, it costs you nothing.
Finally my caveat, I live in IL, not VA, so take it for what it's worth.
And Good Luck!Oh brother... :roll:
Title companies perform a service, as do lawyers (to some extent), and charge accordingly. Now, would someone care to explain to me EXACTLY how a friggen real estate agent adds anything to the equation worth anywhere near 3.5% of the total selling price... PER AGENT? Christ! :|
Title companies perform a service, as do lawyers (to some extent), and charge accordingly. Now, would someone care to explain to me EXACTLY how a friggen real estate agent adds anything to the equation worth anywhere near 3.5% of the total selling price... PER AGENT? Christ! :|
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
- 68
- 91
Originally posted by: FrustratedUser
Damn biotch!
Saw a house listed for $230k with basically everything I need. 1050sqf, car port, 600sqf unfinished basement, sundeck and 0.3 acres close to town.
Did a background check on the house and the current owner who happens to be the realtor bought it for $186k 6 weeks ago. :|
I met up with her and asked what improvements she had done in the last 6 weeks. This made her understand I knew what she paid for it so she finally spilled the beans
Anyhow, she put new paint on the walls, new dishwasher, new stove, she claims the bathroom was new (can't really check that, looked a standard white bathroom). Everything else was untouched. I would be very surprised if she put in much more than $8k and now she's jacking up the price by $41k. :thumbsdown:
I would consider offering her somewhere in the $210k - $215k range. She said she could be flexible if I don't use a realtor. I am now considering giving an offer but I'm a n00b.
Look at atleast 10 comps. Then make a FAIR offer.
And realtors do this once in a while. Get used to it. You'll see it the rest of your life.
As an agent for the buyer, it costs the buyer nothing, so why not use one? It will give you access to the MLS and all the info that comes with it. Thats will save you time and headache when looking for a house. The agent can do everything from finding home history to comparable property values.
As a seller's agent, they make the appointments to show your home while you are at work, they help with the negotiations because not everyone can do this well, even here you have to find a realtor worth their salt. There is tons and tons of paperwork and not everyone has the time or inclination to go through this stack, hence a realtor. They also keeps things on track when things slow down, when negotiations become spitting contests, etc...
Also, here in Chicago, the %s have dropped from 7% of the deal to 5%. even these are negotiable.
...it costs the buyer nothing...
Oh please, you know damn well the price is jacked up to cover the ludicrous costs of commissions. From 7% down to 5% is only a step in the right direction. When the total commissions are in the triple digit range, THEN the service will be priced fairly. As it is, these ungodly commission prices are the very first and thickest layer of inflation!
Oh please, you know damn well the price is jacked up to cover the ludicrous costs of commissions. From 7% down to 5% is only a step in the right direction. When the total commissions are in the triple digit range, THEN the service will be priced fairly. As it is, these ungodly commission prices are the very first and thickest layer of inflation!
Thanks for your input guys. I'm in no hurry to buy yet. Got a contract to rent the current house until June '06.
I am going to wait a few days (while she's off to California on vacation) and then call her and say I'm not interested in pursuing this any further (spending money and get some paperwork done) unless the price drops considerably. Considering the minimal work that was done during the 6 weeks I could start talking at $205k.
If she can sell it for more it's my loss.
I am going to wait a few days (while she's off to California on vacation) and then call her and say I'm not interested in pursuing this any further (spending money and get some paperwork done) unless the price drops considerably. Considering the minimal work that was done during the 6 weeks I could start talking at $205k.
If she can sell it for more it's my loss.
If $205K is good for you, go for it. Also remember, you just started looking and you saw something you like. If you continue to look, you will see something you like again.
It is common for realtor to pickup a cheap house to flip when they see a deal.
The best thing you can do is find & purchase a run down house/lot in the area that you want to live in and build it yourself. It will take more time & sometime cost more money, but it will be built the way that you want.
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