Advice for the first time home buyers/owners . . .

JLMACN · Jul 9, 2007

So glad you replied....

This is one of those things that sound scary to your average seller:

I do not know about Cali but here in Kansas because Realtors are very stupid (in nice words), the title companies do all the work. Realtors just know how to fuck it up even more. All these things you just listed as "questions" are NOT HARD, and in fact I have found that if you can figure it out, so could I. If for some reason I ever had a hard time figuring some out, I call the TITLE company and ask, not some dumb ass Realtor.

A realtor gives legal protection? When, where, how? Here in Kansas (and I am not in come urban farm either) realtors offer NO legal protection, so there goes your idea that they do. And no you are wrong 95% of houses FSBO do not end up listing with an agent because of legal protection, they do it because (like me) they do not have time to run and show the house to every person that calls and wants to look. Yes, the market is a huge buyers market as it is over saturated with sellers, and not buyers. Please tell me something I do not know. The bolded/underline part is a flatout lie. EVERYONE LISTEN, for an agent to get you a house LOWER than listed is ridiculous. It is not their responsibity to get your a CHEAPER house, it is just to get you a house. REMEMBER that they make commision off of the sale, so it would be ridiculous to think the realtor wants to take a $500,000 house and get it for you...for $400,000. Imagine that!!!! I do not think so.

Wow!!!!! you really are a money stealing Realtor huh? See how he lists all these things like they are such BIG DEALS!!!!!

People please do not listen to this clown. They use things like this to scare you into letting them help you. What paper work do you "guide" them through? the one that says, "sign here"?

Yes, for first time home buyers it is a scary process but no different than buying your first car either. But we do not need realtors for that do we? or maybe you think we do, which is why you are in the business you are in.

Point being, you do not need a realtor for any of the stuff this guy listed. I know MANY people that have BOUGHT and SOLD.....by owner and have came out very happy.

If anyone of you have any questions, do not call a realtor. Call someone that has bought a house before and you trust their advice. Or ask a question on here. Please don't let this Realtor scare you.

imawalkingcorps · Jul 9, 2007

JL hit it on the head. When I bought my house they approved me for 250,000. I could only afford 125,000. So.. I bought a house 125,000.00. Guy I bought it from paid all closing costs and paid for homeowners insurance for a year.

ReKz · Jul 9, 2007

JLMACN said:

...

Agency relationship: Traditionally, the broker provides a conventional full-service, commission-based brokerage relationship under a signed listing agreement with a seller or "buyer representation" agreement with a buyer, thus creating under common law in most states an agency relationship with fiduciary obligations. The seller or buyer is then a client of the broker. Some states also have statutes which define and control the nature of the representation.

Agency relationships in residential real estate transactions involve the legal representation by a real estate broker (on behalf of a real estate company) of the principal, whether that person or persons is a buyer or a seller. The broker (and his/her licensed real estate agents) then becomes the agent of the principal.

AC Transit · Jul 9, 2007

Joey said:

i hope youre kidding, if not, you've been brainwashed

RevoL · Jul 9, 2007

JLMACN said:

So glad you replied....

This is one of those things that sound scary to your average seller:

I do not know about Cali but here in Kansas because Realtors are very stupid (in nice words), the title companies do all the work. Realtors just know how to fuck it up even more. All these things you just listed as "questions" are NOT HARD, and in fact I have found that if you can figure it out, so could I. If for some reason I ever had a hard time figuring some out, I call the TITLE company and ask, not some dumb ass Realtor.

You said it, you don't know anything about Cali. Every state has a different process of a real estate transaction, some more similar than others. Since this is a predominantly CALI website, i think my information holds more water than yours but thats just me. In Cali, the title companies do not do all the work. Yes there are dumb agents out there, i work with them everyday. anyone can get a license these days, but there are some agents who know what they are doing from experience, and provide great service. Motivated buyers don't have the time to learn the process, or call title the title company, and would rather hire someone to do it for them, while they are trying to take care of everything else that goes along with the process of moving.

A realtor gives legal protection? When, where, how? Here in Kansas (and I am not in come urban farm either) realtors offer NO legal protection, so there goes your idea that they do. And no you are wrong 95% of houses FSBO do not end up listing with an agent because of legal protection, they do it because (like me) they do not have time to run and show the house to every person that calls and wants to look. Yes, the market is a huge buyers market as it is over saturated with sellers, and not buyers. Please tell me something I do not know. The bolded/underline part is a flatout lie. EVERYONE LISTEN, for an agent to get you a house LOWER than listed is ridiculous. It is not their responsibity to get your a CHEAPER house, it is just to get you a house. REMEMBER that they make commision off of the sale, so it would be ridiculous to think the realtor wants to take a $500,000 house and get it for you...for $400,000. Imagine that!!!! I do not think so.

yes, a real estate broker gives you legal protection. again, if something happens and someone wants to go to litigation, the brokerage is held liable. if you don't have an agent, now the buyer or seller are held liable directly and have no protection of a real estate brokerage to "blame". also i did not mean that legal protection is why 95% of sellers list end up listing with an agent, that was simply stated as a fact, and proves my point that the majority of people in the buying and selling process need an agent.

and you're telling me it is not an agents job to help their client to negotiate them the best possible price and the best possible terms? so if a house has been on the market for 120 days priced at $500K, and comps are showing $470K, you're telling me it's not my job to show them the data, and advise them that they may be able to get in at $450K? my job is to protect my clients best interest and negotiate them the best possible terms and price, the commission is what comes from a result of that. it's highly unlikely that you will get a home $100K under asking, especially if the seller isn't very motivated. but if a seller is motivated and you get it down to around 30-40K under asking, that only equals about $800 in commission, which would be worth it to me if the buyer is very appreciative they just got their home for 40K under asking and told everyone they knew about it (referrals go a lot longer than trying to make a quick buck). some agents are greedier than others though.

Wow!!!!! you really are a money stealing Realtor huh? See how he lists all these things like they are such BIG DEALS!!!!!

not really a money stealing realtor my friend. i don't work with anyone and everyone. i only work with motivated buyers and sellers. i don't take overpriced listings, and i don't show 20 houses to a buyer that is not going to buy. i don't chase after business, therefore i'm not really out to steal money, i get paid to do my job. and these are not big deals? so buying a home is not the biggest deal in most peoples lives, it's not the biggest investment someone would make? again not too many people have the time to do this stuff themselves, just like you said about the FSBO's and YOURSELF. i'm pointing this stuff out because the majority of first time home buyers don't know anything about the process and don't know the resources.

People please do not listen to this clown. They use things like this to scare you into letting them help you. What paper work do you "guide" them through? the one that says, "sign here"?

i'm not trying to scare anyone. i'm not trying to get business from this, why would i want to scare someone into using an agent, especially i'm not going to represent them. my business has never been better, no need for me to put pressure on people to make a decision. and paperwork, i'm pretty sure there are more people who have no clue what a purchase contract even looks like than people who know it front to back. and what about disclosures? disclosures are not 3 pages long in california, we're in a very sue happy state, and brokerages make sure to disclose everything there is to know about property. unless you want to go buy a home from a FSBO and have them "forget" to mention about a death on the property, or the home being built in a liquefaction zone.

Yes, for first time home buyers it is a scary process but no different than buying your first car either. But we do not need realtors for that do we? or maybe you think we do, which is why you are in the business you are in.

wow. no different than buying your first car? really. i do not even have to go into detail on this one. hahaha. Would you do surgery on yourself instead of going to a doctor? would you fly an airplane without taking lessons?

Point being, you do not need a realtor for any of the stuff this guy listed. I know MANY people that have BOUGHT and SOLD.....by owner and have came out very happy.

If anyone of you have any questions, do not call a realtor. Call someone that has bought a house before and you trust their advice. Or ask a question on here. Please don't let this Realtor scare you.

you're right, you do not need a realtor for any of this stuff. but how many people have the time to research this, and deal with all these things i mentioned, while going through the actual process of moving (everyone knows how much of a pain it is to move to begin with). and again this thread is geared towards FIRST TIME HOME BUYERS, not a skilled investor who knows the ins and outs and is familiar with the process. i won't even argue with you the fact that you know MANY people who have bought and sold by owner, it's your word, but again 95% of homes are sold by real estate agents, you can't argue with that either.

And just to let you know I have been through the process of buying several homes in california, and one in nevada, so i have been through this process myself, once even before i got into the business. what makes you think i am not qualified to answer a question about buying a home. ask a question on the sicceness about home buying? hahaha. and get answers from someone like you. ok. you've probably purchased what 3-4 homes in your life tops? the average siccness member owns .00025 homes. i've averaged about 2 transactions a month for the last 3 years (70+ since i've started) but i don't know anything right? actually i think it'd be better to ask these questions on a real estate message board than a rap message board. haha.

again if anyone has any more questions about the process i'd be happy to answer them, even if i'm not making a commission. haha. i'd recommend asking around people you know to see whose been through the process, and see if they were happy with their agent enough to refer them to you. or if you don't know anyone, then find out who the top producing agents are in your area and give them a call. don't just go with a friend because they just got their license, or you might end up with an agent that jlmacn is talking about.

LMD1510 · Jul 9, 2007

Think long term (5-10+ years). If you are in California, moving and making any profit or gaining any equity on a house isn't goin to happen in 2-3 years time with the current market conditions. Find a place you can see yourself in 5-10 years down the line in.

RevoL · Jul 9, 2007

^lmd is right. with all the foreclosures, bank owned/reo properties, and short sales flooding the market, prices are still on a decline. you can thank all the investors who bought at the tail end of the hot market thinking they were going to make a quick buck and are now dumping them left and right, or the loan officers who stuck their clients in loans they couldn't afford, like the option arms and neg ams. now banks are selling properties for a lot cheaper than homeowners can sell them for and tons and tons more are coming on the market every day, which is causing prices to drop even more. there are still little pockets here and there that are slowly appreciating, but the majority is on a decline. so be prepared for longer term 5-10 years.

@ rekz- thanks for clearing that up.

AC Transit · Jul 9, 2007

RevoL said:

options arms = neg ams

its not that they can't afford it (these loans do have the lowest payment possible, so if anything its more affordable), it's that they don't understand the loan/how its structured and choose to make the minimum payment and get caught up when their loan caps out and theyre stuck with a fully amortized payment and a prepayment penalty.

RevoL · Jul 9, 2007

^good stuff. that's why i deal only with the real estate side and let my loan officer take care of the financing.

but once that 3-5 yrs is up and all of a sudden their interest rates jumps up and changes every month, and now have to pay principal+interest that's when it becomes less affordable. not too mention that a lot of loan officers stated they make more money than they actually make on the 1003. and now that prices are dropping, most of these people can't even refinance due to appraised values dropping every month leading to tons of foreclosures. i'm running into this every day when prospecting expired listings.

Gemini · Jul 9, 2007

I own my house and now looking to buy me another one, but I'm gonna sit it out for awhile til the market goes up again...too low right now.

AC Transit · Jul 9, 2007

RevoL said:

yeah thats why the mortgage business dried up - no one has equity in order to refi. The ones who want to refi have 90% LTV's. The thing is if you do have enough equity and are in an option arm, you can always refi into the first year of the programs and guarantee you keep those loan payments before you need to start paying principal and interest.

187Proof · Jul 9, 2007

I saw someone at the beginning of this thread mentioned having a 730+ credit score before buying? For the people on here that have bought/sold before, is this a MUST? I believe my score is right around 650 right now, but I'm not behind on any payments or anything like that. Would I be better have to wait a year for my score to continue to raise before I start the entire process as far as paperwork goes?

T-Spoon · Jul 9, 2007

187Proof said:

naw homie, i bought my first crib when my score was 650. it's a FAIR score. the person with a 730 score will DEFINITELY qualify for a better down payment (shit if ANY with that score) and a better interest rate, but u could still get a decent rate. if this is ur first house, then u MIGHT even qualify for zero down, first time buyer shit. talk to a lender. fold.

RevoL · Jul 9, 2007

Gemini said:

buy low, sell high.

are you upgrading or buying a 2nd investment property?

AC Transit · Jul 9, 2007

Higher credit score = lower interest rate...but you still need to qualify for the loan which is a whole other ball game.

Gemini · Jul 9, 2007

RevoL said:

I want to buy another house, but want to sell the one I'm in and go for a bigger one.

Pig-Homo · Jul 9, 2007

BUY A CHEAP FORCLOSED HOUSE WITH BULLET HOLES THREW THE WINDOWS AND DOORS AND LEFT OVER BLOOD STAINS ON THE FLOOR WITH BARS ON THE WINDOWS & DOORS.

BUT FOR REAL THO FUCK ACTUALLY BUYING A HOUSE, FROM TIME TO TIME IF UR LOOKING IN THE PAPER OR CRAIGSLIST THEY HAVE PEOPLE WHO ARE ALREADY LIVING IN A HOUSE THATS IN GOOD CONDITION AND WANT YOU TO TAKE OVER THEIR MORTAGE HOUSE PAYMENTS. THATS THE CHEAPEST WAY TO GO WITHOUT ALL THE BULLSHIT COSTS OF BUYING A HOUSE.

JLMACN · Jul 10, 2007

And just to let you know I have been through the process of buying several homes in california, and one in nevada, so i have been through this process myself, once even before i got into the business. what makes you think i am not qualified to answer a question about buying a home. ask a question on the sicceness about home buying? hahaha. and get answers from someone like you. ok. you've probably purchased what 3-4 homes in your life tops? the average siccness member owns .00025 homes. i've averaged about 2 transactions a month for the last 3 years (70+ since i've started) but i don't know anything right? actually i think it'd be better to ask these questions on a real estate message board than a rap message board. haha.

again if anyone has any more questions about the process i'd be happy to answer them, even if i'm not making a commission. haha. i'd recommend asking around people you know to see whose been through the process, and see if they were happy with their agent enough to refer them to you. or if you don't know anyone, then find out who the top producing agents are in your area and give them a call. don't just go with a friend because they just got their license, or you might end up with an agent that jlmacn is talking about.

We agree to disagree.

respect.

5000

ColdBlooded · Jul 10, 2007

I like to hear the story from all the angles. It's good to hear the experiences from people who aren't in the business, but have gone through the process. Just as it's good to hear an insider's perspective.

Joey · Jul 10, 2007

AC Transit said:

Can you explain why?

Advice for the first time home buyers/owners . . .

JLMACN

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JLMACN

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