Anyone a realtor here?

[94ToyBear]

Just got pre-appoved looking in the Arvada area.

[Jim]

FYI: The duplicate thread on the topic seemed less descriptive than this one so I hosed it.

Best Wishes with a purchase & move!!

[94ToyBear]

Thanks lol thought I might of did that.

[Brad]

Aaron Wermers wife Jess is a realtor.

[flashboiler]

If your buying, you want a buyers agent. Realtors are legally bound to represent the sellers interests. Buyers agents represent the buyer.

[94ToyBear]

If your buying, you want a buyers agent. Realtors are legally bound to represent the sellers interests. Buyers agents represent the buyer.

Didn't realize there was a difference. I'll have to look in to it

[Jackie]

If you go to any open-houses without an agent (representing you) with you, be careful not to reveal any information such as price, terms and motivation. Just play it cool and don't say much. The agent showing the house has an obligation to the seller to tell the sellers everything they learned about you. If they know you "loved everything about the house", you "need to close by Jan. 1" or "I'd be willing to pay more", Then you might be leaving money on the table or you might even scare them away from you.

Have fun and good luck!

[flashboiler]

A realtor firm will represent both buyer and seller in a home purchase. Even lawyers won't do that!

[94ToyBear]

We came aross a property, for our price range, and pretty much all we want! Need work, Land, very large detached garage, small attached garage, runner for the pups, and only 2 neighbors, across the street from a wild life refug too !!!
BUT is a for sale by owner. We did contact a buyers agent and he is working on setting up a viewing.
I'm not familiar with for sale but owner. Is there anything to keep an eye out for?

[flashboiler]

Bought my house FSBO, used a buyers agent, went super smooth. A good buyers agent will make sure all the t's are crossed and i's are dotted. Enjoy not having to pay 3% on the seller agents commission!

[94ToyBear]

So whats a buyer agents commission these days.? Around 3%

From what I'm told you can expect to pay 6 to7% commission for a realtor.

[Rick]

Is there anything to keep an eye out for? Inspection...Sewer Line,Electrical,etc.....

[94ToyBear]

I intend to have an inspection done for sure.
The question is on a FSBO property, can you ask to have the price dropped to fix or cover the repaire cost these days?
Are there allways sold as is ?
I heard the sellers usally pays for the buyer agent fee of 2.8% of the selling price

[Chris]

Inspections aren't really all that reliable, my last two places had problems the inspectors missed - the first was a gas leak that required opening a wall and my current place had a bad A/C the inspector said was good. I had to eat the cost for both - read their fine print.

Like any other sale you can deal on a FSBO. Don't even need anything wrong to deal - just like buying a car, everything is negotiable.

Best bet is to bring your own inspector or friend that knows construction and have them look things over for you. Ask lots of questions, look at the seller's past utility bills, ask if appliances etc have warranties, tax liens, pending tax increases or city improvements like sidewalks/sewer/street repair that you may be liable to pay.

[94ToyBear]

Thanks everyone. Great points Chris.
I know my way around some pluming. More gas line then water, fire places and my dad and uncle know a good deal about codes and what not.

[Patrolman]

I have bought FSBO in the past. It was a great transaction. I would gladly do it again. There is always room for negotiation. Others have given great advice.

My advice is to make sure you use an inspector who is also a structural engineer. I can refer you to someone if needed.

[94ToyBear]

Yes please do! Jeff.
When doing a FSBO do you typically get an appraisal?

[Chris]

Yep, the bank needs an appraisal unless you're paying cash - thry need to know if the mortgage will be backed by the property. When we sold our last place the appraisal came in 8k under what the buyer was willing to pay so they had great numbers behind them to negotiate a lower price.

It wasn't so good for us though.

[94ToyBear]

Yeah not good at all !
So from the past I have seen or known that if the house needs work such as a roof, or other repairs the bank won't let you buy it unless it fixed first.
Am I correct?

[Chris]

Usually, depends on how bad it needs the repair. The house I mentioned had a cedar roof which most banks don't like any more and require being replaced to write the deal. We convinced them to give us the loan anyway with the promise (on their paper) that we would replace it within 90 days. That gave us some negotiating grounds.

Just be aware that banks are getting loose again and giving loan amounts on houses they wouldn't have before. Basically over-valuing the house and risking loss for you and them if things go sideways. They didn't learn a thing from the housing crash so you have to watch yourself. You determine what you can pay and don't let them tell you otherwise.

[94ToyBear]

Yeah it's pretty scary stuff! I don't intend to get something we can't afford. It crazy how high prices are cpmpaired to 5 years ago.

[Jackie]

Make sure you can find good home-owner's insurance too. We got turned down by three different ins. companies when we bought our house in Evergreen. The fourth company only agreed to cover us if we cut down about 5 trees in our yard for fire mitigation. We agreed and actually took even more trees down than we were asked to do. (Fire=bad)! That cost us about 5 - 6K but the yard looks nicer and the house is safer. All these things add up... add paint, carpet, fixtures etc. The list never ends!

[94ToyBear]

With this property I worry about that.
It's next to a small creek, there's a large a
Tree next to it too.
Cost of fixing things are never good but luckily for us I pretty much grew up doing home improvements in my dad's and uncles rental house's. But still costly I'm sure.

[Patrolman]

If the house is next to a small creek, make sure that it is not in a flood zone. If it is, it would certainly require flood insurance. That could significantly increase your monthly expenses. We looked at a couple homes that were within flood zones and the flood insurance would have been too expensive (and unpredictable pricing in the future).

Our current house is on the edge of a flood zone. We have opted for flood insurance, but it was priced cheaply enough, and it wasn't mandatory.

[94ToyBear]

The flood zone is one of the highest concerns.
I unfortunately think it is in one just it being in north west Arvada.

Is there away for me to find out were flood zones exist?

[94ToyBear]

Well from a fast search I found that it is below .2% chance floodplain so from that I whould say it's not in a flood zone, but still has potential to flood due to the small creek........right?

[Patrolman]

Flood insurance is through the Govt, but issued through insurance companies (the Govt is who would cover the claim). Any place you get a quote from should all return the same price. You can look at the fed govt site and I believe it will provide the risk based on the address:

https://www.floodsmart.gov/floodsmart/pages/residential_coverage/homeowner.jsp

[94ToyBear]

Well we passed on that property, it was everything we wanted except, the whole house was trashed, the ditch near and the huge wall blocking the Sun shine.
Sight on another property all ready. Going to see it today.
Sits on .53 of an acre has 2 car garage Sun shine, and no water near it.

[Patrolman]

Sorry about the delay. This is the structural engineer that my buddy used. He is an engineer, but also does a regular all around inspection. I was impressed with his work and would certainly use him myself for my next purchase.

Stephen McSpadden, PE
of Coyle Inspection Engineers, Inco
2170 Parker Rd Denver CO 80231
303-745-5209
www.coyle-inspect.com


As has been stated, make sure you also get a sewer camera inspection done. They should be $99, maybe less. It found some issues, and we negotiated the price of the house down further based on it. Also there is the security of knowing exactly what the sewer line needs for the future. Hopefully no major surprises.

[94ToyBear]

Thanks Jeff !

Well we went to see another house today and was needing some updates, like carpet, paint and counter tops but did not give to right vibe.

We visted the .5 acre place 3 times today one to see the whole lot inside and out, 2nd my dad meet us there to see the out side, then back later on when the realtor opened up the doors so my dad can look inside aswell.

Well.......its need lots and lots of work which I'm not opposed to doing I'm not totally new 2 home improvements I grew up fixing my uncles and my dads rental houses and also grew up installing gas lines and fireplaces as well as some plumbing inventing so its not totally out of the question to go after it but its a huge comment allready and taging the improvements to it is pretty hard to take in at once. Really its allmost prefect except that theres To much work that need to be done, but the good thing is its all repairable!

What is your experiences with something like this?

[Patrolman]

When we were looking 4-5 years ago, we looked at a LOT of homes. The descriptions often times didn't give the full story, so the only real way to find out is to make a visit. At least one of the ads said "needs work" or "bring your tools". It didn't mention bring a furnace - the previous owners took it with them! Seemed like a lot of places were like that. There were obvious issues that were not disclosed in the ad, and we couldn't justify paying anywhere close to asking price based on what it would need. That meant a lot of visits and multiple offers being put in on different places.

Once you find the one that works for you, it will likely be pretty obvious. Don't rush your decision as this is a big commitment of time and $. It has to be something you could easily live with for the next 10 years.

[94ToyBear]

We plan on putting a bid 55k lower then then the asking price, its hard to justify the buy at the asking price really.
I know these days its not heard of to under bid, but were thinking with it being an estate sale the price has been reduced allready, been active forsale for 30 days they just might want to move on from it we might take the big leap of faith.

[Patrolman]

If you can get it $55k under asking price, you are probably doing pretty good! Fingers crossed for you!

[94ToyBear]

I dont think it will happend, but its a start! Hahaha.

one thing i have learned from having a good Woman next to me a 3 year old Son and another babe boy coming in march a father will go great lengths to secure a safe home for them at the cost of his own comforts.

[94ToyBear]

For thoes who used a buyers agent, did or have you ever had to pay anything out of pocket for them or was it the sellers responsibility?

[Rick]

I know these days its not heard of to under bid, but were thinking with it being an estate sale the price has been reduced allready, been active forsale for 30 days they just might want to move on from it we might take the big leap of faith The answer is always NO unless you ask......you might get a surprise

[Rick]

[quote=94ToyBear;295292]For thoes who used a buyers agent, did or have you ever had to pay anything out of pocket for them or was it the sellers responsibility?[/quote Hell No!!!!! 3homes and never outta pocket

[94ToyBear]

Thats what i was told by the agent but was told if the seller refused to pay for his fee then i would have too. but if it ever got to that i would know first and decide to terminate the offer.

Sound legitimate?

[flashboiler]

Yep, seller normally pays realtor/broker fees but everything is negotiable.

In Colorado it is very easy to terminate the offer. You can just say you aren't comfortable with the loan terms and you can cancel without any penalty.

[94ToyBear]

And if you terminate ernest money is not lost right?

I have a question, we set a lower bid, and told our buyers agent what we want to start at. I hvae no clue how it really work but this dont seem right to me.

Do i need to sign a offer contract ??
I hope im saying this correctly.

[Patrolman]

Is this an auction or did you put in a contract with an offer on it?

[94ToyBear]

Not an auction, no contract with an offer yet.
I do have a contract offer in had, but never knew that this is what you had to do when you make an offer

[Chris]

Without a signed purchase agreement nothing is legally binding. No earnest money can be lost w/o a signed agreement stating that's the case. If your agent is any good that should be made very clear by him/her.

[94ToyBear]

Ok so everything seems to be good. I just never heard of a offer contract, the ernest money is very clear on the contract. Thanks everyone i really appreciate it.

[Jackie]

Yes. I think the offer contract is the only thing that keeps you in line and becomes legally binding if signed by the seller.

[94ToyBear]

Contract will be signed today.....this is nerve wrecking !
I unfortunately do think the offer will go though and might have to up the offer...and of course we dont want to.

[Chris]

Good luck!

[Patrolman]

Hope that you get agreed terms and price that you are happy with!

[88Toy]

Hey Adam, are you an ower, I mean owner yet? j/k Hope Christmas comes early for you!

[94ToyBear]

Hey les, No not yet, the home we are interested in are sand bagging us I think. they wanted to wait till today to make there mind up on if they wanted to take a cash offer instead of our amount.
this is all pretty over whelming!

[88Toy]

Hang in there. It's all worth it when you're finally standing inside, looking around when the reality hits that it's all yours!

[Patrolman]

Yep, hang in there. There is nothing quick about the home purchase process.

[94ToyBear]

well nothing yet....... its pretty frustrating that almost every house we have gone in to needs major repairs and over priced. I cant believe that there are homes are out there that need to be scraped and still selling for 200-250k. I have no issues with home improvements, but geeeez ! full on structural issues???? there are some pretty greedy people out there. BUT over all I have learned so much ! it seems like I know more about the home buying process then most home owners do ! we are about 20 homes viewed and 3 home bids in and nothing yet ! we did an under bid for a POS property, and two cash offers came in right after, a verbal bid and a high counter for another POS, and then over bid for a HUD home, still got over bid. Search continues...............

[Patrolman]

Be patient. It will eventually pay off. It took us about 2 years of looking at piles of junk and getting out bid. Finally the right place came along. It was the best decision to wait.

[Java]

me too, our joke was all the fixer uppers are burner downers. took a little over a year, hang in there.