1st Time Home Buyer Making an Offer & SO NERVOUS!

[Moosejaw]

Also...

In my opinion..which is based on some very wealthy people I know...always be house poor.

Try to stretch to get to the next point.

For example, when we purchased this house it was large enough to have a small apartment in the basement which we rent for 900.00/mo. Also...the extra $400.00 is a nice write off at the end of the year.

Also...$400.00 is relatively easy to earn per month if you really are in a bind. I cut back quite a few expenses, including selling a car to get into our house.

-G

 

[fire&ice]

Date: 2/9/2007 2:12:33 PM
Author: portoar

Date: 2/9/2007 9:10:57 AM
Author: fire&ice

Date: 2/8/2007 8:44:37 PM
Author: portoar

Fire & Ice -- then you probably signed a buyer broker agreement. Some agents use them. The reason is that we spend our time and money driving clients around and then they walk into a home without us and write an offer with the listing agent. . . . or use us to drive them around and then use Cousin Betty to write the offer. Buyer broker agreements say, in effect, I am spending my time and efforts to help you find a home, in return you agree to use my services when you buy a home. Sure, the agreements in my state say the buyer pays the agent a commission, but that''s only if the agent doesn''t get paid by the seller''s broker . . .e.g. in a for sale by owner situation, or, if you have agreed to work through your broker and then you go use someone else.

In my state the disclosure is very clear that I am working for the buyer. The commission structure is that the seller pays his broker a commission. Because of the reciprocal multiple listing service participation agreement between brokers, if I bring a buyer to another broker''s listing, he pays me a portion of his commission. But the pay structure is that seller pays his broker, and his broker gives part of his commission to me if I find the buyer. I have never considered myself to be working for a seller when I am working with a buyer, and all of my efforts are directed to finding a home they like, and getting them a good deal on the home.

The part where I think a lot of buyers are off is they expect to lowball all their offers. and many sellers expect too much for their homes. Both sides frequently need a reality check.

Actually, we refused to sign the agreement. It was terribly one sided. Sure, he drove me around; and, if he took us to a home that was for sale by owner, I agreed to give him a commission. But, we were familiar with the area & may find something on our own. Also, it was not open ended. It is not unusual for us to buy real estate and flip it. According to the agreement, 6 months from then - even though we found the property ourselves - we were obligated to pay him a commission.

There is quite a controversy here about buyer''s agents. At the end of the day, the agent is working for whoever is paying him/her. Most of the time, it is the seller through commission. Semantics about the listing agent paying the commission to the other agent. The seller is the one forking over the 6% or so to begin with.

Pricing/negotiating/offers, etc. is more of an art form. I would always consider the advice of the realtor; however, do my own research & trust my gut with any given parameters (seller''s motivation, buyer''s motivation, etc.) I DO think you can insult a seller with a low ball offer based on nothing but wanting a better deal. Often if I am offered a low ball offer (art and antiques), I''m not necessarily offended - but I can dig my heels in further and just want full price FOR THAT PARTICULAR BUYER. Emotion does enter into the fray. On the flip side, I''m a believer in "don''t show your ignorance by pricing to high".

Yes, realtors are often faced with low offers/too high properties. That''s when a good real estate agent is worth their due.

It all seems like a game of high stakes. Usually, most parties are happy.

 

[Stone Hunter]

So what''s going on? Did you make the offer?

I''ve read this thread twice and am excited that you''re going to make an offer on a house! Fun stuff.

Please let us know what''s happening. And tell us all about the location, and reasons you want THIS house as opposed to another one nearby.

 

[MiniMouse]

Metro, I''m really excited for you. I don''t know much about the house buying situ in the States (I know it''s different from the UK), but all I can tell you is that I previously bought a house that stretched me a little bit, but I never looked back. It was worth the sacrifices I had to make to get my dream house. If you choose a cheaper house without everything you really want, you''ll end up moving sooner rather than later and will rack up buying/selling/moving fees along the way, which will make the extra money you spend on this house, seem minor.

I say go for it and start at a low price, because you can always up the offer. You are in a favourable situation because you''re first time buyers and can accomodate the seller''s timeframe, so you really are ideal buyers.

GOOD LUCK and let us know how you get on. I''ve got everything crossed for you.

 

[metro]

Okay, the update....

I''m just going to throw numbers out there because it makes it easier for me to explain....

Listed house price in November - $172K
Today’s listed price $158,900

My husband and I wanted to stay around the $120''s - $130''s. We currently pay $1,100 in rent so we thought this price would be comfortable for us. We still owe TONS of money in student loans/debit so we didn''t want to get in over our heads.

I knew before walking through the front door that this house was out of our budget. I shouldn''t have looked at a house out of our price range to begin with

But as soon as we walked in, we feel in love with the place. We thought this is the perfect starter home for us! Perfect for our growing family tree and good central location, close to daughter''s private school.

After going back and forth about it, we took a leap of faith and offered (per my realtor''s suggestion) $155,900 with $4,500 back towards closing.

We don''t have any money to put down.

Seller came back Friday with a counter-offer $160,500 with $4,500 back. (That''s only $1,900 off listed price.

) Saturday, DH and I spent the day talking about it. The more we talked about it, the more unsure we became of being able to afford the house. Our mortgage with added water and electric would be about $500 + . Even though we LOVE LOVE LOVE the house, I just don''t see how we could make that work. I want another baby and I don''t see how we could have both. I think the house would take up every penny we bring in. So I called my realtor Saturday night and said we wouldn''t be making a counter-offer. We''re backing out all together.

My husbad is so upset. He feels like he can''t provide his family with a modest home. I''m disapointed. I really thought this was the place for us. But, maybe it just wasn''t meant to be.

Better luck next time.

 

[Dee*Jay]

Metro, I''m sorry that this deal looks like it''s not working out for you. But don''t dispair; it simply wasn''t the right house at the right time. If you were my client I would suggest we keep looking, but at house that ARE in your range. I think you might be surprised what a little perservearance will do--keep at it and see what comes up.

Big hugs!

 

[whatmeworry]

Sorry to hear that, but keep searching something will turn up in your price range.

 

[AndyRosse]

Oh metro, I know how you feel. But don''t worry, keep looking in your price range, and I guarantee that you will eventually find an affordable place that you will love! **HUGS**

 

[Independent Gal]

Yes! Metro! Don't despair! Cheer up!

FIRST of all, $1900 is not that much, so it's possible the seller will come back and say 'OK, I'll take the offer after all'.

And even if that doesn't happen, all will be well! I'm sure it will!

I lost the place I loved and couldn't quite afford, but then a month or so later I found MY place which I COULD afford and I love nearly as much. And I know that in a few years, I'll be able to afford a little more space, and this place is just great in the meantime without the stress.

The same will happen for you two! Give it a little time and I'm sure you'll find a place that makes you happy happy happy! And that won't generate extra financial stress. That way, you can concentrate on getting everything else financially under control, and within a few years, you can get a dreamhome.

In the meantime, have a serious talk with your realtor and make sure he stops trying to tempt you to do somethign you're not comfortable with. THAT'S JUST PLAIN MEAN! Tell him you ONLY want to look at things in your price range from now on.

 

[metro]

Thank you, for all your information and support

Hopefully we''ll find something soon! I''ll keep this thread posted on the lastest and greatest!

 

[Stone Hunter]

Oh I''m so sorry. I hope something turns up soon that you''re comfortable with.

 

[metro]

One thing for sure - house hunting isn''t a fun as I thought it would be

 

[Independent Gal]

Oh, it''s so sad to hear you say it''s not fun.

It SHOULD be fun! There must be a way to make it fun! Hmmmm... Let''s see...

The most fun I had househunting was trying to guess, with my agent, why a place seemed under priced. One time we decided that there MUST be a pit of snakes hidden under a trapdoor in the floor somewhere, and then we set about trying to find it when we got to the showing. teeeheeeee! It was hilarious.

Also fun is seeing peoples'' funny decor ideas and trying to guess who the person is who lives there. One place I looked at had a wall made entirely of cork with the other walls all painted brick red. There was a couch and a tv, and that''s it. Haha. So bachelor.

Maybe you just need hope? It will work out! It will!

Ladies? What makes it fun when it''s fun?

 

[whatmeworry]

I once saw a home that had a video camera hanging above the hot tub.

 

[Independent Gal]

That''s hilarious! I hope it didn''t fall off its hook into the tub at an inopportune moment?!

Perhaps that''s why the house was for sale. Owners deceased. Cause of death...

 

[portoar]

I''m sorry you''re so disappointed about not getting the home -- but, I think you made the right decision in backing out. If you''re first time homebuyers and worried about being able to make the payments, you should definitely stay with something in your comfort zone.

I don''t think your husband should feel like he cant afford the provide you with a decent home. Almost everybody starts small and modest. I would return to my earlier suggestion that you make a list of what you HAVE to have and be realistic, and compromise on the rest. Your first home is not your forever home, it''s your getting-your-foot-in-the-door home.

If I remember right, you asked your realtor to see something a little above your price range. From now on, stick within your price range. Honestly, it sounds to me like your realtor is doing a pretty good job.

When you are looking at the homes in your budget that you didn''t like, what was the problem with them? Not enough bedrooms? Needed remodeling? You can do a lot with paint and with making improvements bit by bit over time.

I would stick with the least expensive home you can find in a nice neighborhood, don''t expect to get everything you want, and realize that in time you will be able to move into the home of your dreams.

Good luck and let us know what happens!

 

[phoenixgirl]

Metro,

I''m glad you didn''t wind up buying a house you couldn''t afford. The seller actually upped their asking price in their counter offer! Yeesh! I know that know you feel disappointed, but I think you''d feel much worse if you''d taken the plunge . . . you''d feel that awful claustrophobic feeling of being in a bad situation you can''t get out of.

Someday you''ll look back on this and think, "Remember when we thought we wanted that other house? Then [x,y,z] would never have worked out this way . . . "

 

[Stone Hunter]

Hey it''s the weekend I hope there are alot of open houses for you to go to in your area.

Maybe concentrate on certain neighborhoods and try to find the cheapest one in each and laugh about them and then think about how you would change them so the house wouldn''t get laughed at anymore. Maybe you''d find a "diamond in the rough" that way? Sorry it''s the only game I can think of that adds laughter and possibility together.

Best of Luck for this weekend!