I'm going to try to buy a home

[JackieOnLine]

probably crazy and I assume my lack of money and really appalling job history will make getting a mortgage a problem, but going to try anyway. I plan to ask my brother to help - like co-sign the mortgage - and don't know how that will go.
BUT - I dislike where I am renting and there are no good options unless I have more money to spend and buying would be less money, at least on a monthly basis. I'll have to pay to move, of course, and then I'll need and/or want to buy all kinds of things like a real bed (not inflatable) and stuff to take care of the tiny yard. a dog.

the place I looked at yesterday is a mobile home from 1982 that someone updated half of and then died. it's in a 55 and up park that is quiet and nice. it's $145,000 and just went on the market. that's a lot of money for an old trailer in a small town, but rents here are worse!

and I'd be living under an HOA, never did that before. I do know I'd be buying the actual lot, besides the home.

well! we'll see what happens!

ETA: my job hours are back down again and this up & down situation is hardly ideal. BUT I don't think I'd find more stability anywhere else.

 

[hilary1617]

Worth a try! Location, location, location. Quiet and nice sounds perfect.

 

[Larra]

Be sure to check on the HOA fees, and keep in mind that they can change, i.e. go up, over time.

 

[JackieOnLine]

thanks for the advice, I guess I didn't realize HOA fees could go up but of course they could.

it's probably not going to happen, I got an email from the realtor (and he represents both of us, so that's a bad idea for a start) that someone else was going to make an offer so did I want to also pending loan approval?

I stewed about it for maybe 2 hours and just emailed back, no, I'm not ready.

there is NOTHING else for 50 miles around anywhere near as affordable.

well, at least I made a start and can maybe be ready for the next one that comes up.

 

[JackieOnLine]

I suddenly realized it's stupid to do the dual agent thing, and if I'm going to know how to proceed (assuming the place doesn't just sell to the other person who looked at it) I should go get my own agent.

so I asked the realtor if he would recommend someone. I hope that wasn't rude.

 

[Spiky Bugger]

thanks for the advice, I guess I didn't realize HOA fees could go up but of course they could.

it's probably not going to happen, I got an email from the realtor (and he represents both of us, so that's a bad idea for a start) that someone else was going to make an offer so did I want to also pending loan approval?

I stewed about it for maybe 2 hours and just emailed back, no, I'm not ready.

there is NOTHING else for 50 miles around anywhere near as affordable.

well, at least I made a start and can maybe be ready for the next one that comes up.

Stupid?

My understanding of this...and we’re on House #10…is that because the agents’ pay comes from the SELLER, all agents are actually working for the seller.

Also, if there is ONE agent, the commission is more negotiable. As in $145,000 x 6%= $8700 in RE commissionS.

•If you are the listing agent, and a buyer also comes to YOU, you stand to earn $8700.
•If another buyer has a different agent, you stand to earn $4350 for your HALF of the commission.
•Seems to me, you might be more likely to reduce your commission by, say, $1000*, so that your seller could sell for $1000 less but save $1000 In commissions and your buyer would pay $1000 lower purchase price and you’d STILL make more than you would if two agents were involved.

To me, having one agent means the RE commission is quite negotiable.


*And don’t just jump into that $1000 number...you might be able to make an even better deal.

 

[JackieOnLine]

thank you, I appreciate that.

I'm just getting started, here. My brother says he is willing to help but uncomfortable with co-signing anything. he be willing to lend me "a set amount", he says. so that's wonderful.

everything is on the table. like, buying an RV instead. we'll see what happens!

 

[hilary1617]

Stupid?

My understanding of this...and we’re on House #10…is that because the agents’ pay comes from the SELLER, all agents are actually working for the seller.

Also, if there is ONE agent, the commission is more negotiable. As in $145,000 x 6%= $8700 in RE commissionS.

•If you are the listing agent, and a buyer also comes to YOU, you stand to earn $8700.
•If another buyer has a different agent, you stand to earn $4350 for your HALF of the commission.
•Seems to me, you might be more likely to reduce your commission by, say, $1000*, so that your seller could sell for $1000 less but save $1000 In commissions and your buyer would pay $1000 lower purchase price and you’d STILL make more than you would if two agents were involved.

To me, having one agent means the RE commission is quite negotiable.


*And don’t just jump into that $1000 number...you might be able to make an even better deal.

I think of it in a different way. I want to eliminate any possible conflict of interest. As a buyer I want someone to get the biggest price tag (home sale price) down to the lowest possible point. That could save me tens of thousands. Also, that person needs to know the market well and know the other professionals involved e.g. needs to provide a referral to a very solid home inspector who will be motivated to find any and every problem. My agent needs to convince the seller's agent that mine is the offer to accept, even if it favors me versus the seller... They also need to advise me to step away if they know the next door neighbor is a maniac or there's another not immediately obvious, but material, problem with the location.

 

[Settledownnow]

Before getting a real estate agent get a mortgage preapproval. They are not going to take the time to show you any houses without pre-approval. I recently went through Rocket mortgage and it was pretty painless. Best of all, I never had to sit in anyone's office.

 

[JackieOnLine]

Before getting a real estate agent get a mortgage preapproval. They are not going to take the time to show you any houses without pre-approval. I recently went through Rocket mortgage and it was pretty painless. Best of all, I never had to sit in anyone's office.

I'm working on pre-approval, but he already showed it to me and is willing to show me more. there is only ONE other place under 200,000 that isn't just a lot or a really bad dump and it's in the same (55+) park.

hilary1617 yes, it's the conflict of interest that is bothersome. I googled "pros and cons of dual agents" or something and read bout it. not even legal in some states.

in general I like the guy and wrote him this morning I'd stick with him for now (he had replied he was willing to recommend someone else if I wanted) but I can hardly ask the main questions, like is the seller in a hurry and likely to take the first (low) offer? or willing to wait? because he CAN'T tell me that.

from how little there is locally that is affordable I would guess they will get full price and fairly quickly.

 

[Susan in Tennessee]

Have you determined that you like the area well enough and job market is good enough to be the area you’d want to remain In even if things change with your job, (you want a different one, etc)?

You could still sell and relocate but not quite as easily as if just renting.

It’s a hard decision for sure.

 

[JackieOnLine]

thanks, Susan, yes I do like the area well enough. the job market is terrible but that's true everywhere I look as the entire system of how medicare pays for therapy in "skilled nursing facilities" changed just last fall and nobody had adjusted yet before covid hit. so the market was already bad and will probably continue so.

yes, selling to relocate would be much harder than if I continue to rent, but there are very few rental options available.

I've read the "roommate wanted" ads on craigslist since I moved here but every place I've looked at is - 45 minutes away, doable but also sharing a bathroom with several people some of whom are male - and other combinations. the good thing about that is, I am really forced to examine my priorites!

thank you to all for advice, I really appreciate it!

 

[Spiky Bugger]

I think of it in a different way. I want to eliminate any possible conflict of interest. As a buyer I want someone to get the biggest price tag (home sale price) down to the lowest possible point. That could save me tens of thousands. Also, that person needs to know the market well and know the other professionals involved e.g. needs to provide a referral to a very solid home inspector who will be motivated to find any and every problem. My agent needs to convince the seller's agent that mine is the offer to accept, even if it favors me versus the seller... They also need to advise me to step away if they know the next door neighbor is a maniac or there's another not immediately obvious, but material, problem with the location.

Good info.

There is also a “job” called “Buyer’s Agent,” and I’ve never gone that route.

https://www.realtor.com/advice/buy/what-is-a-buyers-agent-used-for/

 

[hilary1617]

Good info.

There is also a “job” called “Buyer’s Agent,” and I’ve never gone that route.

https://www.realtor.com/advice/buy/what-is-a-buyers-agent-used-for/

I've always hired one.

 

[Spiky Bugger]

I've always hired one.

Does the listing agent still get the standard 6%? And how do Buyers’ Agents fees work? Based on how much work they do? How much they save you? Sales price? I just always assumed I couldn't afford one...and they didn’t seem to be standard in my (low rent?) neighborhoods.