Real Estate Agents

Good or Bad?
Most people, including myself, are not very trusting of Real Estate agents. Why? Probably because they are sales persons that work on commission. But that is the system, and it really is the best system. If they don't accomplish the goal....no money. The problem with this is that we all know it leaves a big area of distrust because you know their motive, you just don't know how far they will go to achieve it. This is why I said I only deal with a licensed Realtor. That is a very specific category that you must check to be sure "your agent" fits in. It's like making sure you have a surgeon instead of a grocery butcher operate on you. A licensed Realtor has an Ethical standard that they must maintain to keep that license and without that license, their income is in jeopardy. Being educated is just part of preparation for the smart home buyer.

There are also 2 main kinds of Agents.
1) Seller's Agent - represents the Seller. Paid by Seller
2) Buyer's Agent - represents the Buyer. Paid by Seller. Yes paid by Seller normally, but check with Agent before signing to be sure. Also make sure you understand Agent's charge in FSBO situations. (For Sale By Owner)

There is a 3rd "function", that is when an Agent functions as a Dual Agent, meaning representing both parties... Seller/Buyer. You must be legally informed if the agent is functioning in this Dual Agent role, and definitely have your ears tuned to those words, because it is important.

Listing Agent is the Seller's Agent. This may seem like a common sense statement, but many may not know. So if you call the Listing Agent, ask to see the house, then deal only with this agent, you are dealing with the Seller's agent and are not likely getting your best representation. We may be a dying breed in that we don't believe in cheating a home owner, but by the same account I don't want to get taken either. A fair deal is what you are after.

POOF! Gone!

Seller Emerges From the Dead........and Keeps House
Finally contact is made, and Seller refuses all repairs. States that moisture barrier was just installed and should take care of problem. (Obviously hasn't seen the house any time lately, but whatever....IT'S HIS!)

Offer to Purchase ----> Withdrawn under 13c Cost of Repair Contingency.

The money we loose on inspections, appraisal, etc is less than the cost to correct the moisture problem by ourselves. And I am certainly not going to tell that 'homeowner' that his plastic isn't going to work by itself.

I have to get back to the MLS listings. They have gotten away from me lately and I have lost track of what's on the market! Back to house hunting!

Closing Doubtful

Questionable Behavior Arises Again
It once again appears our "Out-of-State" Seller existance is in question. We are both again also questioning how serious this occassionally appearing individual is on the subject of selling this house. I personally see alot of research into various "agencies" rules and regulations ahead.

How can a licensed Realtor list a home for sale without proper contacts? This is the 2nd time that the Seller's agent has not been able to get a response from their client. We are entitled to submit the Repair Request according to my understanding of the Offer to Purchase contract that we have, yet it goes unacknoledged. We have been REFUSED a signed copy of this Offer to Purchase by this same agent with claims that it is "not required" by their office." I don't know how the courts feel about faxes and emails so I INSIST on an original for my records.

This same treatment happened when we submitted the Offer to Purchase initially, except I was the one that said "Withdraw the Offer." Now it's coming from the other half of the "we" and he is furious.

Mortgage Lenders

The Choice of What Company Gets Your $$$$$$$!
The average consumer makes no larger investment than the home that they purchase. This is a general fact that everyone should know. Hopefully today's home buyer is a bit more educated than many were years ago thanks to the internet and ease of gathering info 24/7. That is one of my purposes for this site. To help show where I gathered info from, what we go through in this process and the lessons we learn.

In this process for us, since it is a LARGE task, I kind of divided things into two areas. 1) Dealing with the Bank/Mortgage Company, and 2) Finding/Dealing with House/Realtor. The #1 job I assigned to my husband and I took the #2 job. Now understand that we both still function with equal say in both areas, but there is so much to handle that for us, it was much better to "divide and conquer." All the experts say to "shop interest rates" and they explain what you are looking for. We had decided ahead of time that we were only interested in FIXED rate mortgage and did our research to get an understanding of what POINTS were and what were the pros and cons in that area. We also made a decision that we wanted to try to use as little money as possible for a down payment in order to preserve our savings and still allow some money for emergencies. (In other words, we didn't want to spend every nickle we had to get into the house we purchased) We set a limit on what our monthly payment would be, and we stuck to this limit. We didn't go in saying "How much house can we buy?" We felt that this would better enable us to have the spending money we wanted to enjoy the home and do the "projects" we were seeking. All too often, home buyers will get a mortgage that straps them so bad that they have no money left to even buy curtains to cover their new windows much less anything else.

Despite my objections, the mortgage company was selected by my husband. I still withhold judgement at this point because so far....I have actually seen nothing but TYPICAL performance. The clock is ticking....

Will it happen?

One Week From Closing Date

The Sound of Silence....AGAIN
Well one week from today, as our "Offer to Purchase" now states, is our closing date. (Aug 31) The Seller's Agent was presented with the Repair Request and Agreement after our meeting with our agent late Monday afternoon/evening, and we have yet to receive any sign of life.

Let me interject that this seller is out-of-state and after failing to even acknowledge our Offer to Purchase for a WEEK....we withdrew that offer promptly the next business morning! Lesson for all purchasing a home and dealing with "out-of-town" owners --> Set a time limit for responses! Now in fairness to individuals who must move before their homes are sold, I am sure when dealing with these homeowners a buyer would have no problems. On the other hand, if you happen to be dealing with a business of some kind that owns the home, they need to be reminded that you don't care how "busy" they are....you only care about 1 house deal.

Housing Market Cooling

The local & national news tonight was all talking about the real estate market "cooling off" and how so many homes are on the market now. The AP states....in every article might I add....

"The National Association of Realtors reported Wednesday that sales of existing homes and condominiums dropped by 4.1 percent in July from June to a seasonally adjusted annual rate of 6.33 million. That was the lowest level since January 2004."

"On Wall Street, the housing report rattled investors and pushed stocks lower. The Dow Jones industrials lost 41.94 points to close at 11,297.90."

Glossary of Terms for Home Buyer

Bankers & Realtors Have Their Own Language
When you prepare yourself to enter the Real Estate arena, it may not matter how hard you think you have studied and prepared, you will still end up asking "What is that?" or "How does that work?" Some things vary from situation to situation or even lender to lender etc. One thing is for sure....you need a basic source that you can refer back to for reference when you are trying to remember what the Appraisal is, at what stage in the process it is usually done, and who pays for it. Trust me...these are very important facts you will want to know. Fairly early in my research I found "How To Buy A House" by Michael Bluejay which just seems to have all the basic info and is well written. It's definitely a great reference to have.

Appraisal

According to our "bank man" the Appraisal on the house is scheduled for today or tomorrow. We aren't really concerned that the house will appraise for the amount of the loan, but whether any "repairs needed" will be mentioned. If there are and problems listed, the bank could insist that the repairs be made before closing, which of course would hold up our closing date of next week, Aug 31. This would cause the closing to be rescheduled for a later date which would then cause problems for us in several ways, from our lease with the townhouse we are renting to personal health issues because of the actual move being pushed beyond the end of Sept. It's out of our hands tho, so we will just have to wait and see what happens.

Parental Inspection

We were talking to my parents on the phone, and they decided to drive up and see the house. This was the first time that they had seen more than just the MLS listing on the internet and it's accompanying picture. When we got to the house, my father pulled out his flashlight and started his own inspection of the premises. I was surprised I didn't see him pull out his coveralls and get up under the house in the crawl space, but he resisted that temptation. He did of course, point out everything he saw wrong, and there were plenty of those things. I was walking around with my mother and pointing out the strange or problem areas, but she had exactly the opposite reaction saying "Well that doesn't have to be fixed immediately" which of course we had already discussed. Since we don't own a refrigerator or stove we plan on purchasing these items. The refrigerator will have to be immediate but we had discussed seeing if the stove is functional for a short period since we really haven't decided what we want to do there. With the move, closing cost and repairs that we know must be done immediately like the french doors from the dining room, painting and potential unknowns that will pop up though, we don't want to get too carried away with repairs that can wait for next month or so. (The carpet will hold for a little bit in other words.)

Repair Request and Agreement

Time to Gather Repair Estimates
Monday morning we got the estimate from Chris, the General Contractor for the repairs to the very wet floor joist and garage door frame. I forwarded that to our Realtor who added that estimate with the others and had the Repair Request ready for us later that afternoon when we met him at his office to discuss the issue. He also had written estimates from an Electrician about the double-tapping and a few other things mentioned in the inspection, the Septic Service that I had come out, and an estimate for a dehumidifier for the crawl space. All of these things fell into the "surprise" category with the inspection and we were not expecting anything along these lines. This house has been neglected for quite awhile as far as routine maintenance is concerned and it is showing dramatically. We were deliberately looking for a house with "projects" that we could do at our own pace because we enjoy these things, but these "surprises" discovered in the inspection are out of our league and therefore more costly than just materials. We feel it is fair to ask the Seller to pay for these repairs and we hope he accepts the offer. It's up to the appraisal outcome and then the bank, from what our Realtor tells us, as to exactly how this will be handled between the two parties. (The Seller & Buyer since we have requested that instead of the Seller making the repairs, that we be given a "credit" so that we can have the repairs made ourselves)