Houses

[dancerjodi]

So B and I looked at our first house last night - not too exciting (small rooms, old kitchen, old and wimpy electrical system and a lot of unusable land). Now that we've started the home search process things are getting excited . . . I want to keep looking and just get this phase of the whole thing done.

But we got our official pre-approval letter (woo hoo)! It was so weird to see such big numbers on paper!

I found another house in Waltham, this one is on the South Side off of Moody Street (only about 5 blocks from where my parents live its not RIGHT on the Newton Line but the realtor is advertising it as such) that we got the address for and drove by last night. Its a pretty big colonial with a nice sized yard for the city and its fairly private (its at the end of a long driveway from the street and there is 6 foot wood fencing giving privacy from the surrounding lots). We're going to look at it tomorrow during lunch - we're actually actively excited about this one (versus the one we looked at last night which we were pretty convinced we wouldn't like).

So - if we see this house and like it and the price and area and all amenities fit what do we do about it? I don't want to make an offer on the 2nd house we tour but on the other hand I don't want to lose one that just "clicks" and would perfectly meet our needs. I'm hoping that if all goes well tomorrow we can tell the Realtor that we're interested but need a few days to think about it and then we can knock out a bunch of other home visits at open-houses over the weekend. Do you think a realtor would be willing to call us if other offers come in (to see if we'll give a better one) or would they just sell to the first reasonable offer? Or is it up to the homeowner? This is a very confusing process to me, being someone that doesn't haggle for price . . .

Weird weird weird!

Comments

[devina.livejournal.com]

Something I found helpful to keep in mind when I was househunting: there are a gazillion houses out there for sale. If you absolutely LOVE the house and think it's just what you want right now, go ahead and make an offer for what you're willing to pay. If not, wait and look for others...I learned a -lot- just from shopping about what I should be looking for, what I wanted, what I didn't really care about, etc.

The realtor doesn't usually make the decision about which offer to take, the seller does. (But the realtor does make recommendations.) I don't know if they'll call you to let you know if other offers come in...they'll want you to bid your max to begin with, anyhow. But maybe. (It also might not be in your best interests; these folks work on commission, and I wouldn't put it past some of them to tell you other offers have come in when they really haven't.)

Hope that helps!

[erb23.livejournal.com]

i agree -- consider, the realtor is LEGALLY REPRESENTING the SELLER -- they will NOT give you any information that's not in the seller's best interest, you, the buyer's, best interest is not a factor. and as i mentioned below, the $'s involved are to maximize the seller's offer/price (and, directly, their commision).

i also wouldn't put it past them, at all, to say some offers have come in when that isn't really true. your buyer's realtor could see through this smokescreen, depending on their experience and savvy. and a buyer's realtor is LEGALLY REPRESENTING (looking out for) you! :-)

[devina.livejournal.com]

However - buyer's agent still works on commission, so be careful.

I'm a firm believer

[tiamatlady]

in decisions based on passion.
If you love the house, put in a bid.

While reading this the first thing I thought was "They're going to have a hard time getting rid of it." Because either a) it's not close to Newton, and they're advertising it as close. That5's going to turn off anyone who wants to live in Newton, comes to see the house, and decideds it's not close enough. or b) People read "It's close to Newton" and say "Oh It'll be too expensive." and don't bother.

Do, however, check out the property values before you make an offer. It may be the right price, then the real estate taxes will kill you. Property values are public domain. Plus there are sites (which are escaping me at the moment) that will tell you of recent property sales in the area, and esitamted values, to see if you're getting, the proverbial screw.
Real estate taxes could make an impact on your mortgage, if your bank requires an escrow account to pay them.

Whoo, where's all this coming from? And here I thought my brain was tapioca. *grin* Good Luck.

Re: I'm a firm believer

[dionysia.livejournal.com]

www.domania.com

Re: I'm a firm believer

[dancer.livejournal.com]

Its actually only 4 blocks from Newton . . . its an area that I'd choose to live in on purpose :)

Taxes in Waltham are really cheap (due to all of the industry) - our lender actually told us that it ends up being CHEAPER than some other communities because of the extreme tax savings :)

I found the assessor info on the City Web Site and the last time it was sold was 1987 for $130K (now they are asking $300). I found a condo a couple of blocks down that was sold last summer at around $250 and a two family that was sold at $350 so I think for the area (and the city in general) the price is reasonable (that is, if its a decent house).

We shall see . . .

Re: I'm a firm believer

[tiamatlady]

Good.
I should have known you'd have all bases covered.
See *points* Tapioca.
Bleh. Off to work. Via a donut. Hmmmm. Donut.

advice? Part 1

[erb23.livejournal.com]

if i were (and was) in your shoes, with a need to buy / finite time, and also with the preapproval (very important, not only for the sellers, but also for your own sanity -- you can know immediately what is and is not reasonable for you to buy) -- and looking for first home -- i think it's all about grabbing the first home that Works For You, that you Really Like. i guess it depends on how big of a window, how big of a percentage, of the homes you think you will like (from both a subjective, personal point of view, as well as objective, reality, hard facts point of view -- e.g., the electrical system/modernity requirements). and it also depends on the market -- pretty much both our first home ('97) and our 'final' 2nd home ('99) were bought in a hot buyers and sellers market, where prices were high(er) and demand from buyers was high and sellers were happy and buyers were edgy, 'cause (properly priced) houses would sell in days, not weeks. (we sold our first home in less than 24 hours -- and only after i had "given in" to our realtor on the market price, 'cause i thought it was way too high. it was almost exactly 1/3 higher than what we had bought it for, less than 2 years prior!!!) (also, we bought our 2nd home within 24 hours of going on the market -- we saw it the night it went on the market, and made a (over)bid that night. more about that later). anyway, the market now isn't as hot, so i don't think you need to worry anywhere near as much about losing a house out from under you to another buyer -- it can happen, but it's not as cutthroat.

a lot of thoughts. first one, you mention realtor this, realtor that a lot. agreeing with other comments, it's the sellers choice on accepting an offer. they can take the first one, they can wait, whatever ... but typically when a buyer makes an offer, the offer itself (which is a legal obligation offer!!!) has a time limit -- it must be accepted/rejected within a certain # days, i believe 1 or 2 days isn't unreasonable. and, if you make an offer, with a preapproval, that meets or exceeds the asking price, and they refuse, but still haven't accepeted ANOTHER offer ... i'm not sure but i bet you could start legal investigation (if you were a minority, i'm sure you could). i don't think that happens though -- if you really want a house, have preapproval, and your offer meets/exceeds, and they don't have another offer to consider, they should bite. if you think others might be making offers (i.e., Great house just went on the market, you see it first day, lots of ppl looking at it from the sign in sheet, feedback from YOUR realtor), and you really want it, then put a $ amount on that desire -- a % of total price -- and maybe offer a little more. grabbing #s out of the air, a 100K house, maybe offer 102K. or 105K. or 110K. (ranging from i'd really like this, to i REALLY REALLY want this one, to absolutele @#$%ing ridiculous (10% extra?!!).

following up on the "YOUR" realtor comment -- your wording makes me think you don't have your own "buyer's" realtor (i could be wrong). you should get one. they know the market, the area, the prices, the legalities, good for Q&A, etc. they can do legwork for you. and many house sales will have a 6% realtor fee built in anyway, typically for 3% to seller's realtor, 3% to buyer's realtor. from the two house buys we did, i'd say they're invaluable. but find someone you really want to work with...

advice part 2

[erb23.livejournal.com]

finally, on the when to make an offer dilemma, let me close with some thoughts... our second home, which was primarily a "step up" from our What We Could Afford At The Time first home, was also supposed to be, Ideally, our "we won't want to move after this unless i have to for a job" Dream Home. *I* fell in love with the one we found ... i ended up putting 2.5% more in the offer (which was an appreciable chunk of change -- i REALLY wanted it, and we were under the impression that someone else very well might have made an offer). and i don't regret it at all. now, we had budgeted ourselves several months to look, and we were under no pressure, and had already decided on a max home price that did not require us to sell simultaneously with a buy (we sold after buy) -- so we could have looked longer. but it only took us a couple weeks before we found the dream house (it turns out it's not malaika's dream home, but she likes it still :-). on our first home, however, we did have a finite time, neither of us REALLY liked it, but we thought it was practical, reasonable, the price was right, etc. it made sense. so we made the offer, figuring if it was right, we'd get it, and if not, oh well and keep looking.

if the 2nd house on your tour "works" and you are happy with the price (this is where advice from a buyer's realtor is helpful), and it really clicks ... then yes, you should make an offer. if you really feel unsure, then you should reevaluate : perhaps, just perhaps, you should be in viewing mode, getting a feel for the land, and swearing with each other Not To Be Looking For A Buy just yet... give yourself 2 weeks (or whatever) for aggressive Just Looking. and then make the decision to start zeroing in on The House To Actually Buy (and maybe looking back at previously viewed houses to see if they are still available, and make an offer if you want). i think being in the indecisive "is this right? should i try for this one? is this too soon? should i keep looking for a better home?" mode is ... awkward for a buyer's position.

if you don't have one, i really think you need a buyer's realtor :-)

and telling the seller's realtor "you want more time to think about it before making an offer" doesn't really gain you anything -- unless you (or YOUR realtor) is trying to feel them out, get a gauge of interest in the home, get a feel for whether you should maybe lowball and go under the asking price...

and finally, any reasonable seller's realtor WILL advise the seller to take any Good Offer (pre approval, etc -- you'd actually be surprised how many offers are made without pre-approval, so you are in good standing) that meets the asking price. if the realtor thought they could get more than the asking price, then they wouldn't have suggested the asking price -- i.e. they WILL suggest an asking price that's at the high end of what they think they could get. so an offer = asking WILL be accepted, unless a better (or stronger) offer comes in.

advice part 3

[erb23.livejournal.com]

Oh ! and finally ! -- one other thing -- besides offer price, is the amount / % down in the (legally binding) offer. if you offer, say, 1% more, but you can only afford 5% down, and someone else offers, say, asking or 1% less, but 20% or 25% down, the other party with more $ down may very well get the buy -- it's a stronger offer. they have a stronger (more $ up front). and there's also the $$ amount offered up front, i forget the term, pre-P&S. you make the offer, with an offer price, % down, X$ up front in the offer (legally, non refundable, even if the deal doesn't ultimately go through). if they accept, you write a check for the x$ to them, it's held in escrow, and unless something really out of your control happens, they ultimately keep it. if you change your mind and back out, they keep it. you can do just like $1000 if you want. but if someone else makes an offer too, with say 2% or 5% or whatever (possibly 10's of thousands), they'll definitely get it before you.

hope this isn't too awful much for a comment!!!! :-) just trying to help...

Re: advice part 3

[dancer.livejournal.com]

Thanks for the info!

Now how do I find a buyer's realtor? Just walk in to the office and say "hi, I want a buyer's realtor"? How did you two find one?

Re: advice part 3

[erb23.livejournal.com]

yep. say "we're looking for a house and we have budgeted and gotten a preapproval for about 1.2 Million." stand back, whoever is left standing (or walks throught the mob and everyone shrinks back from) is the Alpha Realtor. depending on how long you can snow job this guy before he realizes you're not looking for a million dollar home, (s)he might do you some good :-)

Actually, i'm not sure a million dollar home is much to shake a stick at in newton area... is it more like 10 million? or more?!?

seriously, it's just a matter of finding one in a realtor office. and i GUARANTEE you that if you went in, talked to whichever realtor was manning the desk at the time, they would NOT suggest, "oh, i think you're a good fit for $PERSON, i'll put you in touch with them." nope, it's cutthroat, they'll keep you for themselves until they think you're dead weight. i think it's a combo of hitting several realtor offices, preferably in person, and talking with many realtors, getting cards (taking notes in the car after "interviewing" each one?)... feeling them out for the area, prices, questions you have, both to inform you and to get a feel for their character, personality, aggressiveness, honesty. then see if any friends (or friends of friends) that live in the area know of any 'good' realtors that cover that area (you'd be surprised how far a realtor will travel! but for your best bang for your buck, you'll want someone centrally located at least somewhat close to your desired location).

when we moved to Acton, we went to a realtor to find a place to rent. when we decicded to buy, we went back to her. she was older, proficient, knowledgable. and also matronly and too, i dunno, businesslike. no real complaints, it was entirely personal. so when we decided to sell, and buy new home, we first went buying hunting, and basically were calling realtors for the listings we were interested in (this was our "We Aren't Buying Now Just Looking To Get A Feel For The Land And Prices" stage). one of the realtors was really friendly, aggressive, young (well, 30's, which was comparably young). we were actually somewhat interested in a house she was representing, which could have caused a conflict of interest (we would have probably gotten another realtor, possibly from same agency, to represent us). but we didn't, and we signed her on (another (semi)legal document) to solely represent us. she did, i think, a great job -- finding listing that matched us, giving us feedback, and also handling the sale of our home afterward (as i mentioned, she got us a 33% return on a 2 year ownership! woo hoo!).

hth.

Re: advice part 3

[erb23.livejournal.com]

Oh! and to more directly answer your question, i wouldnt necessarily say outright, "i want a realtor to represent us as buyers" -- too direct. hold your cards close. it's like buying a car :-p -- i don't like salesmen. just express your (serious, active) interest in buying a home locally, what your pre-approval range is, what your interests are. let the conversation flow, ask questions. s(he) may or may not bring up representation (which would/could involve signing a form agreeing sole representation). you're probably bettter off fielding that with a "we're not quite ready for that yet..." until you've made your decision, on your own, outside, possibly after seeing several people. then when you find someone you like, then you can bring it up.

Re: advice part 3

[dancer.livejournal.com]

My problem is that I don't have a 'poker face' and just can't bring myself to hide things (I know its dumb and gets me into trouble sometimes, it just feels to sneaky though)!

And you see why I bought a car at Saturn . . . just walk in and pay price on the sticker :)

Re: advice part 3

[erb23.livejournal.com]

that's cool, all you really need is the ability to say "no" to someone that's being to pushy to be your best friend and take your money. all you need is to be able to nod your head, walk outside after and say, "yep i like him/her" or "wow, no way i want to deal with that guy again for the next several weeks, representing me no less!". when you make your choice (hopefully with some friendly GOOD agent), then you can hand over any poker face requirements to them -- they'll be representing you throughout the whole process!!! so it works out for everyone. if you're the type to just pay sticker price (and i'm the same way, i hate haggling/bartering), then you're definitely the type to get representation.

[grendel.livejournal.com]

Follow your heart. Make the offer.