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Anyone bought a house without a Realtor?

Discussion in 'The Lounge' started by marine_enlisted, Feb 16, 2004.

  1. marine_enlisted

    marine_enlisted 1/2 ton status

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    Looking at a house that is "For Sale By Owner". I have been told that it's cheaper just to have an attorney write up the contracts and all that.Also, since I would be doing the VA loan thing, the home inspection/appraisal mumbo jumbo would be handled by them. Anyone have any input? Thanks.
     
  2. lady bog

    lady bog 1/2 ton status

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    I wouldn't trust a private owner if you don't know what to look for in a house.
     
  3. laketex

    laketex 3/4 ton status

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    If you do the VA loan thing, you still need to have a home inspection done by your guy, just in case. I did an FHA loan and got an outside guy to inspect the house, and it saved me from making a 160K mistake...our realtor sucks too...if you go that route, make sure you get a good one. Ask a bunch of questions before settling on one. We went with a referral from a friend and it's been one nightmare rollercoaster ride that we're just hoping to get out of and get our "good faith" money back. Best of luck to ya though. /forums/images/graemlins/yikes.gif
     
  4. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    I bought the house I live in now in a private sale. It wasn't very complicated and saved me about $10K. There are lots of resources on the internet to help you out. Just make sure you have a good lawyer and get the house inspected by a inspection firm.
     
  5. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    [ QUOTE ]
    I wouldn't trust a private owner if you don't know what to look for in a house.

    [/ QUOTE ]

    And realtors are 100% trustworthy? They're just like any other salesman- they'll say whatever it takes to close the deal. /forums/images/graemlins/rolleyes.gif
     
  6. laketex

    laketex 3/4 ton status

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    fwiw, our realtor screwed us...was working for both the seller and us and pushed us this way. Didn't want me to get an inspection but I did anyway and found electrical nightmares and black mold...Whatever you do, GET THE INSPECTION! They're only about $250.
     
  7. thatK30guy

    thatK30guy 1 ton status Premium Member

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    [ QUOTE ]
    [ QUOTE ]
    I wouldn't trust a private owner if you don't know what to look for in a house.

    [/ QUOTE ]

    And realtors are 100% trustworthy? They're just like any other salesman- they'll say whatever it takes to close the deal. /forums/images/graemlins/rolleyes.gif

    [/ QUOTE ]

    I don't trust them. They always mark up the price from what the owner wants. Last I knew, they marked up on average around 15%!!! /forums/images/graemlins/yikes.gif /forums/images/graemlins/yikes.gif /forums/images/graemlins/yikes.gif Yep, if you pay $100K for a house, the realtor is getting $15K!!! All for sitting on his a$$ and doing paperwork, thats it! /forums/images/graemlins/angryfire.gif /forums/images/graemlins/angryfire.gif /forums/images/graemlins/angryfire.gif

    I prefer to buy houses from local people and if possible, someone you know. You only need an appraiser and someone qualified to do the deed transfer paperwork. I didn't use any lawyer or whatever when we bought our house.

    Nowadays, its all about realtors and them making a killing off the sale. /forums/images/graemlins/angryfire.gif /forums/images/graemlins/angryfire.gif /forums/images/graemlins/angryfire.gif
     
  8. HarryH3

    HarryH3 1 ton status Author

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    [ QUOTE ]
    our realtor screwed us...was working for both the seller and us

    [/ QUOTE ]
    This is a very common mistake. Just because a realtor is "showing" houses to you, it does NOT mean that he or she is working for you. Unless you have specifically signed a contract with a real estate agent to act on YOUR behalf, as what is known as a "buyers agent", then the realtor will ALWAYS be working for the seller and will represent THEIR best interests. /forums/images/graemlins/yikes.gif They just want to sell a house at the best price possible.

    Even if the for sale sign has the name of a different agent (known as the "listing agent"), the agent showing the house will also be working for the sellers (known as the "selling agent"). Always keep this in mind when you are shopping for a house. YOU are the only person in the negotiation that has your best interests at heart.
     
  9. HarryH3

    HarryH3 1 ton status Author

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    [ QUOTE ]
    Yep, if you pay $100K for a house, the realtor is getting $15K!!!

    [/ QUOTE ]
    A house can only sell for what the market will bear. Some realtors will mark up the price, hopiing to get a bigger commission check, but that can backfire by making the house seem unattractive compared to other homes selling for the same price.

    However, even if they mark up the price, they don't get to keep the difference of the markup. Typical real estate fees are 4 to 7 percent of the total selling price, with 6 percent being the most common. Using 6% on a $100K house, the total realtor fee would be $6,000. But that money gets split at least 4 ways. First, the listing agency gets half and the selling agency gets the other half. So now it's down to $3,000 for each agency. Then each agency pays the agent that actually worked on the deal. The listing agent and the selling agent will each get $1,500-2,000 for their part in the transaction. The agencies keep the remainder to cover costs of running the office and profit.

    All that being said, I've found that it is VERY rare for a real estate agent to add much, if any, value to a transaction. If you're willing to put up with people wandering though your house and doing your own price negotiations then you can save some cash by selling your house yourself. But I would still recommend getting assitance from a good attorney that knows real estate law. It will cost you $500 or so, but they will be working for YOU, to protect your best interests in the transaction. If your house is worth a lot of money then the savings can be pretty hefty.
     
  10. laketex

    laketex 3/4 ton status

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    I'll vouch for that. We were really dumb going in to this house. Went with a realtor that steered us toward a house that ended up belonging to a friend that had sold houses through our realtor before. A little fact that our realtor (John) did not disclose with us. We found that out from the lender. We also used the lawyer that John wanted us to use. The one "smart" move we did make was to use an outside home inspector. And during the whole inspection process, which was delayed through bullshit excuses to the day before the statute of limitations ran out, John was there telling me how I shouldn't ask for anything since i was getting the house at a "great deal". John would look at what the inspector found and tell me how it was piddly stuff. We were already planning on a kitchen remodel and central a/c install, but this piddly stuff didn't sit too well with us. Then we had all of 2 hours to read the inspection, draft a letter through our lawyer, and get it sent off.

    No attic access, but through the vent fan we could see black mold in the attic.
    Garage has 150a of outlets, 60a wire, hooked to a 30a breaker at the house.
    Boiler leaks and holds no pressure.
    Copper water lines in crawl leak.
    Lowboy water heater needs to be replaced.
    None of the outlets in the garage are grounded.
    Rear sliding glass doesn't have a lock.
    Water spots on walls in the crawl indicate leakage.


    ....and this is a "great deal"...only 150K in north aurora. Can't beat that. WTF ever. I asked for a lot back, and now it's just the waiting game on if I will get my "good faith" money back or not. So I second that the realtor is out to make money, not watch out for the buyer. Be REAL careful who you go with, what you listen to, and how you handle the situation. Don't be a dummy like me. /forums/images/graemlins/crazy.gif

    Bryan
     
  11. marine_enlisted

    marine_enlisted 1/2 ton status

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    Thanks for all the input. I would definately have the home inspected by an outside inpector. The home is on a 10 acre plot that originally had nothing there. The current owner moved the home there 3 years ago, set it on a foundation and remodeled it. Basically everything is new or updated within the last 3 years. Including septic,well,windows doors, flooring,roof,appliances,cabinets,central air, floor heat in basement, furnace, and a brand new 24x36 3 stall garage. The main thing that worries me is the fact that the owner did most of the work himself , with the help of his contractor buddy. Add that to the fact that the home is in Minnesota and I live in Virginia it may be too much of a hassle to try to do.
     
  12. ChevyCaGal

    ChevyCaGal 3/4 ton status

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    Get an inspector that you choose and like, not one they want. My friend just finished moving into their new house (old house, new to them). The owner had it inspected and it showed up being in great condition. My friend thought something was off, so she asked if she could bring in someone else. The realtor didn't like it, and was saying no it's not needed. The homeowner gave her permission and the realtor backed off. This new guy came in found termite damage and the underside of the kitchen counter top was rotting out from a water leak. He also found some wiring in the ceiling not up to code (as in bare in spots). They made them fix the wiring and termites and not add to the home price. They also had the realtor give them a check for new counter tops (they wanted to pick them out, not get the cheap ones the realtor wanted to throw in). So yeah, hire someone to look over the house. Someone working for you, and not them!
     
  13. R72K5

    R72K5 Banned

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    just liek with everything else in this world, try to do thigns yourself and be in control if at all possible, that goes for house buying selling, vehicle repairs, and so on and so forth, usualyl save all kinds and is ually doen right with proper research and knowledge


    good luck with the house, hope it ends up being a good deal for you /forums/images/graemlins/laugh.gif
     
  14. Goober

    Goober 1/2 ton status

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    [ QUOTE ]
    just liek with everything else in this world, try to do thigns yourself and be in control if at all possible, that goes for house buying selling, vehicle repairs, and so on and so forth, usualyl save all kinds and is ually doen right with proper research and knowledge



    [/ QUOTE ]


    Very well said! /forums/images/graemlins/waytogo.gif /forums/images/graemlins/waytogo.gif /forums/images/graemlins/waytogo.gif /forums/images/graemlins/waytogo.gif




    CLICK HERE before you post again.

    /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif
     
  15. ramjet gmc

    ramjet gmc CK5 Staff Staff Member Moderator GMOTM Winner

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    [ QUOTE ]
    CLICK HERE before you post again.

    [/ QUOTE ]


    that hits me right at home /forums/images/graemlins/histerical.gif /forums/images/graemlins/histerical.gif /forums/images/graemlins/waytogo.gif
     

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