I have been renting every since I moved out of my parents house and now that I am finished with college and have a couple of years of after college work behind me I can afford to buy instead of rent. To be honest I would prefer a condo over a house and I know the HOA Fees and possible voting of improvement to community but I still like the idea of a condo. I am 29 and a house is just not me for or at least I don't think so.
So here is my question. I have been looking at Realtor dot com and found a few nice places but since I never have bought before I was hoping someone can give me some advice.
1. Do I have to find a Realtor? And if so where would one find one that is in your best interest and what are their fees usually.
2. Does the Realtor find the place for you or do you just hire them to close on the property?
3. Should I get pre-approved for a loan through my bank?
4. Financing a Condo... I have seen there are some pretty strict policies, any hints?
If you have any other advice please shoot it my way. I am not in a hurry but would like to find a nice place this year sometime.
--Daniel
Off Topic: Want to buy my first house/condo.
Moderators: carlson1, Charles L. Cotton
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daniel2002p
- Senior Member
- Posts: 225
- Joined: Wed Jul 25, 2012 9:19 pm
- Location: DFW
Off Topic: Want to buy my first house/condo.
"Gun control is like trying to reduce drunk driving by making it tougher for sober people to own cars."
1)Treat firearms as if they are loaded. 2)Point the muzzle away from non-targets.
3)Keep fingers off the trigger until ready to shoot. 4)Be sure of your target and backstop.
1)Treat firearms as if they are loaded. 2)Point the muzzle away from non-targets.
3)Keep fingers off the trigger until ready to shoot. 4)Be sure of your target and backstop.
Re: Off Topic: Want to buy my first house/condo.
1. Do I have to find a Realtor?
No. It has been a long time since I purchased a house but my memory is Realtors charge a fee when the purchase transaction is complete. In my case the fee was around 6% of the house price. The seller paid that fee out of the proceeds. The last house I sold was sold by owner meaning there were no Realtor's involved and no fees. I managed to cajole a real-estate lawyer friend into helping me with a contract.
2. Unless things have changed, no Realtor has to be involved in closing. They can find a place for you or you can find properties you are interested in and contact the listing agent. Remember the listing agent works for the home owner. If your agent locates a property that you purchase, their agencies will work out how fees are split between agencies and agents.
3. Good idea. Shop for rates first and see what you qualify for. Plan to search for a place that costs less than what the bank will lend.
No. It has been a long time since I purchased a house but my memory is Realtors charge a fee when the purchase transaction is complete. In my case the fee was around 6% of the house price. The seller paid that fee out of the proceeds. The last house I sold was sold by owner meaning there were no Realtor's involved and no fees. I managed to cajole a real-estate lawyer friend into helping me with a contract.
2. Unless things have changed, no Realtor has to be involved in closing. They can find a place for you or you can find properties you are interested in and contact the listing agent. Remember the listing agent works for the home owner. If your agent locates a property that you purchase, their agencies will work out how fees are split between agencies and agents.
3. Good idea. Shop for rates first and see what you qualify for. Plan to search for a place that costs less than what the bank will lend.
Re: Off Topic: Want to buy my first house/condo.
Congrats on being ready to purchase your first home.
1. I would not hire a Realtor. But, I would consider finding a Buyers Agent and use this person.
2. You give the agent your criteria and they will start searching for you. You review what they send you and then decide on what to go look at. The agent can also help steer you towards the better deals.
3. Yes, I would get pre-approved versus pre-qualified. This just gives you a leg up when negotiating since the sellers will know that the hardest hurdle is already complete.
4. I have no idea on this as I have never done a condo.
Good luck!!!
1. I would not hire a Realtor. But, I would consider finding a Buyers Agent and use this person.
2. You give the agent your criteria and they will start searching for you. You review what they send you and then decide on what to go look at. The agent can also help steer you towards the better deals.
3. Yes, I would get pre-approved versus pre-qualified. This just gives you a leg up when negotiating since the sellers will know that the hardest hurdle is already complete.
4. I have no idea on this as I have never done a condo.
Good luck!!!
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Re: Off Topic: Want to buy my first house/condo.
Well, for me, my realtor has been worth her weight in gold 10x over. Over the years, she's helped my family and I get in to close to 6 homes, and has become a close family friend. She is always looking out for us, and is a straight shooter. The 6% is usually split among the two realtors (if there is a sellers realtor) IIRC, but is worth it in my opinion. I'm not sure how it works with Condos though.
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The_Busy_Mom
- Senior Member
- Posts: 352
- Joined: Wed Jan 02, 2013 10:07 pm
- Location: DFW Metro Area
Re: Off Topic: Want to buy my first house/condo.
1. No, you don't have to use a realtor. However, the seller pays realtor fees, so no fees charged to you. A realtor who is a Buyer's Rep will represent you as a buyer, and is not allowed to be involved with a seller, too. Lots of realtors will try to work some of their 'for sale' properties into deals with buyers they represent. Double the commission. A Buyer's Rep will be concerned ONLY with getting you what's best for you.daniel2002p wrote:I have been renting every since I moved out of my parents house and now that I am finished with college and have a couple of years of after college work behind me I can afford to buy instead of rent. To be honest I would prefer a condo over a house and I know the HOA Fees and possible voting of improvement to community but I still like the idea of a condo. I am 29 and a house is just not me for or at least I don't think so.
So here is my question. I have been looking at Realtor dot com and found a few nice places but since I never have bought before I was hoping someone can give me some advice.
1. Do I have to find a Realtor? And if so where would one find one that is in your best interest and what are their fees usually.
2. Does the Realtor find the place for you or do you just hire them to close on the property?
3. Should I get pre-approved for a loan through my bank?
4. Financing a Condo... I have seen there are some pretty strict policies, any hints?
If you have any other advice please shoot it my way. I am not in a hurry but would like to find a nice place this year sometime.
--Daniel
2. Part of what a realtor does for you is the leg work. They find places that meet your requirements. They do the negotiating for you. Why not have someone do the leg-work for you? On the other hand, it really isn't required. When my husband and I built our home, we found our lot, did everything. Then we contacted our realtor (from our first home) to come to closing with us. He made 3% commission and did absolutely nothing to earn it. But that was our choice, because he worked magic for us with our first home. We have a good relationship with our realtor.
3. Absolutely get pre-approved. Then you know what you can/can't afford, and you won't fall into the trap of wanting something you can't have. And sellers will know you are a serious buyer if you are already pre-approved.
4. Haven't had to finance a condo, or any other house for that matter, in more than 13 years. Financing policies/options have changed dramatically in that time. Your realtor will be a VERY GOOD source of information when it comes to financing, etc.
Good luck with your purchase!!
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Re: Off Topic: Want to buy my first house/condo.
1. A house that is a FISBO (for sale by owner). You can just go buy it. Contract forms are on the TREC (Texas Real Estate Commission) website. No realtor is required. If a house is listed for sale by a REALTOR, however, it already has a listing contract in place. The seller has already agreed in advance to pay a commission to a licensed real estate broker when the house sells. They have already agreed to pay a cooperating broker a commission, if they bring a buyer. So the money has already been spent, so it makes no sense to not be represented in the transaction. You would find a Buyer's representative, to represent you. Almost any real estate agent will act as a buyers representative if you ask. They will ask you to sign a contract. They get the cooperating brokers commission paid by the selle,r if you buy a house. Make sure you like the buyers rep before you sign.
2. How much you want them to help you is up to you. You can find the places on your own through the internet and just have them show you the ones you select, or go full boat and have them find the places. Where they can be a big help is telling you about recent sale prices in an area, so you don't over pay. That information is usually not available to anyone except REALTOR's.
3. Get your the amount you can borrow pre approved. This shows the seller you can buy the place, not just waste their time. Include the letter from the bank with your contract.
4. Condo vs House. Houses are better because they generally appreciate more over time because you directly own the land. Most of the value in a Condo is the building. If the property is not kept up, the value can go down fast. Mortgage companies have different rules, they may require more down on condo's or may refuse to loan in a certain condo because of too many renters in the building or too many empty units.
Today is the best time I have ever seen to by a home or condo. Prices are relatively low and interest rates are at record low rates, thus the cost to own is very low. My first house in 1976 I paid 8.25% interest, my second house in 1989 I paid 12% interest. In 1989 I felt lucky because 4 years before the rate was 18%. My dad bought a house in 1964 he paid 5.25% interest. Most of your house payment is the interest, so the rate makes a big difference.
The only reason not to buy your own place is if you plan to move. You really need to stay in a place for 10 years to be able to sell it at a profit. One other concern is rising interest rates could depress prices, making it harder to sell at a profit in the short term.
If we have inflation and interest rates go to 9% you would probably be kicking yourself for a long time if you are still renting and want to own.
2. How much you want them to help you is up to you. You can find the places on your own through the internet and just have them show you the ones you select, or go full boat and have them find the places. Where they can be a big help is telling you about recent sale prices in an area, so you don't over pay. That information is usually not available to anyone except REALTOR's.
3. Get your the amount you can borrow pre approved. This shows the seller you can buy the place, not just waste their time. Include the letter from the bank with your contract.
4. Condo vs House. Houses are better because they generally appreciate more over time because you directly own the land. Most of the value in a Condo is the building. If the property is not kept up, the value can go down fast. Mortgage companies have different rules, they may require more down on condo's or may refuse to loan in a certain condo because of too many renters in the building or too many empty units.
Today is the best time I have ever seen to by a home or condo. Prices are relatively low and interest rates are at record low rates, thus the cost to own is very low. My first house in 1976 I paid 8.25% interest, my second house in 1989 I paid 12% interest. In 1989 I felt lucky because 4 years before the rate was 18%. My dad bought a house in 1964 he paid 5.25% interest. Most of your house payment is the interest, so the rate makes a big difference.
The only reason not to buy your own place is if you plan to move. You really need to stay in a place for 10 years to be able to sell it at a profit. One other concern is rising interest rates could depress prices, making it harder to sell at a profit in the short term.
If we have inflation and interest rates go to 9% you would probably be kicking yourself for a long time if you are still renting and want to own.
Re: Off Topic: Want to buy my first house/condo.
I agree with a lot of what folks say here. A realtor can be a great asset. Get opinions from those that have bought homes in the area you are looking for.
Another idea for a home type is a patio home. It is a free standing house but it doesn't have a lawn like a single family home. Most patio home communities have the same benefits of a condo with exterior maintenance and lawn care as part of the HOA. They give a little bit more privacy and you won't have someone banging on your walls
.
Another idea for a home type is a patio home. It is a free standing house but it doesn't have a lawn like a single family home. Most patio home communities have the same benefits of a condo with exterior maintenance and lawn care as part of the HOA. They give a little bit more privacy and you won't have someone banging on your walls
.U R Noodle
CHL since 1/26/2012 - 41 days mailbox to mailbox
CHL since 1/26/2012 - 41 days mailbox to mailbox
Re: Off Topic: Want to buy my first house/condo.
Remember with a condo: You will share a wall or two with your neighbors. Plus, if you live downstairs and sound deadening was poorly designed and built, your upstairs neighbors will drive you crazy with noise from their simple walking around or their washing machine or dishwasher noise.
If they're quiet, great, but what if they're inconsiderate, loud, obnoxious, high octane stereo players, etc. you have a higher chance of being miserable - less so with owning a house. At least you don't share a wall, walls or ceiling.
Plus, you're only as fire safe as your riskiest neighbor. If he or she falls asleep with a cigarette in his mouth...or does something stupid in the kitchen...you're potential toast.
Privacy is less so with a condo - more so with a house.
When the time comes to move, condos are often harder to sell than a house.
Does house ownership come with downsides?
Yes, of course, but for me, I wouldn't own a condo if someone was willing to give me one.
If they're quiet, great, but what if they're inconsiderate, loud, obnoxious, high octane stereo players, etc. you have a higher chance of being miserable - less so with owning a house. At least you don't share a wall, walls or ceiling.
Plus, you're only as fire safe as your riskiest neighbor. If he or she falls asleep with a cigarette in his mouth...or does something stupid in the kitchen...you're potential toast.
Privacy is less so with a condo - more so with a house.
When the time comes to move, condos are often harder to sell than a house.
Does house ownership come with downsides?
Yes, of course, but for me, I wouldn't own a condo if someone was willing to give me one.
Re: Off Topic: Want to buy my first house/condo.
Daniel lives in an apartment so he already deals with those shared wall issues. Maybe they don't bother him as much as they bother you. I would never live in a condo for the same reasons I would never live under a HOA, but I know other people have different priorities. If someone gave me a condo, I would evaluate it as a rental or investment property and make a decision based on accounting, not emotion.Abraham wrote:Remember with a condo: You will share a wall or two with your neighbors. Plus, if you live downstairs and sound deadening was poorly designed and built, your upstairs neighbors will drive you crazy with noise from their simple walking around or their washing machine or dishwasher noise.
If they're quiet, great, but what if they're inconsiderate, loud, obnoxious, high octane stereo players, etc. you have a higher chance of being miserable - less so with owning a house. At least you don't share a wall, walls or ceiling.
Plus, you're only as fire safe as your riskiest neighbor. If he or she falls asleep with a cigarette in his mouth...or does something stupid in the kitchen...you're potential toast.
Privacy is less so with a condo - more so with a house.
When the time comes to move, condos are often harder to sell than a house.
Does house ownership come with downsides?
Yes, of course, but for me, I wouldn't own a condo if someone was willing to give me one.
Re: Off Topic: Want to buy my first house/condo.
Advice was requested...
Mine was tendered.
Mine was tendered.
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daniel2002p
- Senior Member
- Posts: 225
- Joined: Wed Jul 25, 2012 9:19 pm
- Location: DFW
Re: Off Topic: Want to buy my first house/condo.
Honestly that whole sharing wall thing make no difference to me... I have to travel so much for work that I am really only home two weeks or so out of a month (kinda getting tired of traveling but that is another topic). I just cannot see myself buying a house right now and not even having the time for the upkeep (lawn etc).IANAL wrote:Daniel lives in an apartment so he already deals with those shared wall issues. Maybe they don't bother him as much as they bother you. I would never live in a condo for the same reasons I would never live under a HOA, but I know other people have different priorities. If someone gave me a condo, I would evaluate it as a rental or investment property and make a decision based on accounting, not emotion.Abraham wrote:Remember with a condo: You will share a wall or two with your neighbors. Plus, if you live downstairs and sound deadening was poorly designed and built, your upstairs neighbors will drive you crazy with noise from their simple walking around or their washing machine or dishwasher noise.
If they're quiet, great, but what if they're inconsiderate, loud, obnoxious, high octane stereo players, etc. you have a higher chance of being miserable - less so with owning a house. At least you don't share a wall, walls or ceiling.
Plus, you're only as fire safe as your riskiest neighbor. If he or she falls asleep with a cigarette in his mouth...or does something stupid in the kitchen...you're potential toast.
Privacy is less so with a condo - more so with a house.
When the time comes to move, condos are often harder to sell than a house.
Does house ownership come with downsides?
Yes, of course, but for me, I wouldn't own a condo if someone was willing to give me one.
--Daniel
"Gun control is like trying to reduce drunk driving by making it tougher for sober people to own cars."
1)Treat firearms as if they are loaded. 2)Point the muzzle away from non-targets.
3)Keep fingers off the trigger until ready to shoot. 4)Be sure of your target and backstop.
1)Treat firearms as if they are loaded. 2)Point the muzzle away from non-targets.
3)Keep fingers off the trigger until ready to shoot. 4)Be sure of your target and backstop.
Re: Off Topic: Want to buy my first house/condo.
In some neighborhoods, you can find detached single-family homes with minimal yards and no HOA. The advantages are no shared walls, enough space to grill and do some container gardening if you like, but no lawn to mow. Plus no HOA fees & busybodies.urnoodle wrote:Another idea for a home type is a patio home. It is a free standing house but it doesn't have a lawn like a single family home. Most patio home communities have the same benefits of a condo with exterior maintenance and lawn care as part of the HOA. They give a little bit more privacy and you won't have someone banging on your walls
A good real estate agent can be a great asset. A bad one can be a great pain. I suggest getting referrals and then interviewing the agents to see if they're a fit before signing anything. You can buy a house without having your own agent but in many cases I think that's false economy. Having done it once, out of three home purchases, I'm disinclined to repeat the experience.
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MotherBear
- Senior Member
- Posts: 421
- Joined: Sun Feb 10, 2013 9:27 pm
- Location: Near Austin
Re: Off Topic: Want to buy my first house/condo.
Just bought a house (and sold the old one) almost a year ago -- so I'll toss in my two cents for whatever they may be worth.
1. Do I have to find a Realtor? And if so where would one find one that is in your best interest and what are their fees usually.
It's not necessary, but I would highly recommend it. Ours was worth her weight in gold -- and we had already picked out the house before we contacted her so arguably half the work was already done. She saved us thousands of dollars (she had a much better feel for the market and what she could talk the sellers down to) and tons of stress. She handled all the negotiations, the paperwork, harassing the sellers' realtor when he was terrible about getting back to her, helping us get a good inspector and figure out the big deals on his report, and so on. When we did our final walk-through, the sellers had removed several things that were supposed to stay according to the contract (appliances, draperies, shelves...) and also left significant amount of junk in the garage and shed. She made sure everything got fixed before things closed. I can't even begin to describe what a relief it was to be able to leave everything to her, because she was on top of everything.
As far as finding one, do some research and find a seriously GOOD realtor. How many homes they're selling per year is a big deal (I know you're not selling, but it's still an indicator that they're good at what they do). You also want to find one who works primarily in your area and in the types of real estate you're interested in (so, don't pick someone who's never bought/sold a condo); they'll be familiar with the market. Look at some properties they have listed and see if you think the listings/fliers/whatever look good. You know some fliers look like they were put together by a 5th grader in Microsoft Word -- not really the level of professionalism you want. To be honest, I found ours because she left a flier on our door, but I did my research and really liked what I found out about her. I looked at her listings online and they all looked terrific (as in, good presentation and photography) -- and they were selling fast in a bad market. She was well known in the community, she had a great track record, won lots of realtor awards, etc. By contrast, I Googled a church friend who works in real estate and couldn't find any results that were actually for him. Probably not the guy you want to choose. I don't know if you're familiar with Dave Ramsey, but he has some good tips on choosing a realtor and those are mostly what I used.
As far as fees, I'm pretty sure the seller covers realtors' fees in closing. So you really have no reason NOT to get one. The big thing to bear in mind is that you'll pay the same amount for the best realtor out there as for the worst, so find the best. And whatever you do, do NOT expect the seller's realtor to act in your interests at all. That's not what they're paid to do, and besides that they get more money the more you pay for the property (they get a percentage, traditionally). They'll be nice and helpful and not do anything illegal or unethical (ideally, anyway) but they're in it for their own clients, not you.
2. Does the Realtor find the place for you or do you just hire them to close on the property?
I think you can do it either way, but you might as well have them help you find the place. Ours didn't, because we already knew what house we wanted to buy (we hadn't planned to move, went to an open house on a whim, and it was exactly what we wanted). Normally our realtor would have helped us figure out our criteria, sent us information on available houses that met that criteria, and then taken us to see whatever we were interested in. She still took us to see a few other houses just on principle, and she really did a good job of finding them... we just already had our minds made up. She had a pretty neat online service that filtered house listings by our criteria and e-mailed us with updates. She had access to a lot of useful information (what other similar homes had sold for and so on), and I think if we had been looking for a place we would have had much better luck with her than without. The biggest thing I'd say is to make sure you clearly communicate what you want, and don't be afraid to look outside of what your realtor suggests for you. I'm not entirely sure this house would have been a big hit on our realtor's radar because it wasn't in as "nice" a neighborhood as I think she thought we should want. It's not a bad neighborhood at all, just not the one I think she expected for the typical family like ours. I'll admit that we were a little outside the box so I don't blame her, but if I had to make a criticism that would be it.
3. Should I get pre-approved for a loan through my bank?
That'll help. Our sellers didn't want an offer from us until we had proof of pre-approval, so if you already have it you'll be able to act more quickly when you see what you want. We went through a mortgage broker, I believe, and had them do manual underwriting. We were buying the new house prior to selling the old, which was a little nontraditional, but when they looked at the situation they were able to see that our finances were ok for it. It was nice to have the approval based on actual information beyond just a credit report or something.
4. Financing a Condo... I have seen there are some pretty strict policies, any hints?
That one I don't know anything about, but if you get a realtor who's worked with condos they'll walk you through it all.
Best of luck!
1. Do I have to find a Realtor? And if so where would one find one that is in your best interest and what are their fees usually.
It's not necessary, but I would highly recommend it. Ours was worth her weight in gold -- and we had already picked out the house before we contacted her so arguably half the work was already done. She saved us thousands of dollars (she had a much better feel for the market and what she could talk the sellers down to) and tons of stress. She handled all the negotiations, the paperwork, harassing the sellers' realtor when he was terrible about getting back to her, helping us get a good inspector and figure out the big deals on his report, and so on. When we did our final walk-through, the sellers had removed several things that were supposed to stay according to the contract (appliances, draperies, shelves...) and also left significant amount of junk in the garage and shed. She made sure everything got fixed before things closed. I can't even begin to describe what a relief it was to be able to leave everything to her, because she was on top of everything.
As far as finding one, do some research and find a seriously GOOD realtor. How many homes they're selling per year is a big deal (I know you're not selling, but it's still an indicator that they're good at what they do). You also want to find one who works primarily in your area and in the types of real estate you're interested in (so, don't pick someone who's never bought/sold a condo); they'll be familiar with the market. Look at some properties they have listed and see if you think the listings/fliers/whatever look good. You know some fliers look like they were put together by a 5th grader in Microsoft Word -- not really the level of professionalism you want. To be honest, I found ours because she left a flier on our door, but I did my research and really liked what I found out about her. I looked at her listings online and they all looked terrific (as in, good presentation and photography) -- and they were selling fast in a bad market. She was well known in the community, she had a great track record, won lots of realtor awards, etc. By contrast, I Googled a church friend who works in real estate and couldn't find any results that were actually for him. Probably not the guy you want to choose. I don't know if you're familiar with Dave Ramsey, but he has some good tips on choosing a realtor and those are mostly what I used.
As far as fees, I'm pretty sure the seller covers realtors' fees in closing. So you really have no reason NOT to get one. The big thing to bear in mind is that you'll pay the same amount for the best realtor out there as for the worst, so find the best. And whatever you do, do NOT expect the seller's realtor to act in your interests at all. That's not what they're paid to do, and besides that they get more money the more you pay for the property (they get a percentage, traditionally). They'll be nice and helpful and not do anything illegal or unethical (ideally, anyway) but they're in it for their own clients, not you.
2. Does the Realtor find the place for you or do you just hire them to close on the property?
I think you can do it either way, but you might as well have them help you find the place. Ours didn't, because we already knew what house we wanted to buy (we hadn't planned to move, went to an open house on a whim, and it was exactly what we wanted). Normally our realtor would have helped us figure out our criteria, sent us information on available houses that met that criteria, and then taken us to see whatever we were interested in. She still took us to see a few other houses just on principle, and she really did a good job of finding them... we just already had our minds made up. She had a pretty neat online service that filtered house listings by our criteria and e-mailed us with updates. She had access to a lot of useful information (what other similar homes had sold for and so on), and I think if we had been looking for a place we would have had much better luck with her than without. The biggest thing I'd say is to make sure you clearly communicate what you want, and don't be afraid to look outside of what your realtor suggests for you. I'm not entirely sure this house would have been a big hit on our realtor's radar because it wasn't in as "nice" a neighborhood as I think she thought we should want. It's not a bad neighborhood at all, just not the one I think she expected for the typical family like ours. I'll admit that we were a little outside the box so I don't blame her, but if I had to make a criticism that would be it.
3. Should I get pre-approved for a loan through my bank?
That'll help. Our sellers didn't want an offer from us until we had proof of pre-approval, so if you already have it you'll be able to act more quickly when you see what you want. We went through a mortgage broker, I believe, and had them do manual underwriting. We were buying the new house prior to selling the old, which was a little nontraditional, but when they looked at the situation they were able to see that our finances were ok for it. It was nice to have the approval based on actual information beyond just a credit report or something.
4. Financing a Condo... I have seen there are some pretty strict policies, any hints?
That one I don't know anything about, but if you get a realtor who's worked with condos they'll walk you through it all.
Best of luck!
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The Annoyed Man
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Re: Off Topic: Want to buy my first house/condo.
The law doesn't require a realtor, but real estate law is so complicated that not having one is like going to court without a lawyer........pretty foolish unless you are yourself very experienced in these matters. Keep in mind that each those who has responded so far, myself included, have already been though this at least once, and we each have some experience to fall back on. With enough enterprise, we could possibly see our way through another purchase without a realtor. But I have to tell you that I would not be in any way comfortable with it, and I would not do it myself. I've done this twice now, with a realtor's help. The realtor who helped me buy my house has done it hundreds of times.
When you hunt and kill a deer and gut it, you leave the entrails and other unwanted parts for the wild animals, because even coyotes and buzzards gotta eat. The 6% commission collected on the sale price of your house is shared between the seller's and buyer's representatives and is handled during escrow. You, as the buyer, will not be paying them directly because that commission comes out of the price of the house collected by the seller. Not to compare them to coyotes, but realtors gotta eat too. The seller will almost certainly have representation of his own, and that realtor is not your advocate. He is bound by law to represent the seller's interests, and not yours.
Do as you like, but I would not buy my first property without a professional realtor representing my interests.
When you hunt and kill a deer and gut it, you leave the entrails and other unwanted parts for the wild animals, because even coyotes and buzzards gotta eat. The 6% commission collected on the sale price of your house is shared between the seller's and buyer's representatives and is handled during escrow. You, as the buyer, will not be paying them directly because that commission comes out of the price of the house collected by the seller. Not to compare them to coyotes, but realtors gotta eat too. The seller will almost certainly have representation of his own, and that realtor is not your advocate. He is bound by law to represent the seller's interests, and not yours.
Do as you like, but I would not buy my first property without a professional realtor representing my interests.
“Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.”
― G. Michael Hopf, "Those Who Remain"
#TINVOWOOT
― G. Michael Hopf, "Those Who Remain"
#TINVOWOOT
Re: Off Topic: Want to buy my first house/condo.
I have been a real estate lawyer here in California for nearly 40 years, and have been a real estate broker for ~35 years or so. Some of my experiences are not directly relevant to Texas rules but generally, some might be useful. I have never sold houses for a living, but was for many years CEO of a real estate investment group and a brokerage that handled only its properties.
A Realtor is a licensed real estate agent (whether salesman or broker) who is a member of the local Multiple Listing Service, State Association and National Association of Realtors. They subscribe to a Code of Ethics and such like rules, over and above the state's regulatory scheme. You can be a real estate broker without being a Realtor but cannot be a Realtor without being a licensed real estate agent. Generally, an agent active in residential sales will be a Realtor.
You do not have to have one to purchase property. That said, I learned a long time ago, in another context, that nothing beats knowing what you are doing, and if you don't, you had best get someone on your side who does, in all but the most trivial endeavors. Mistakes or misunderstandings can be very unpleasant and costly.
For a buyer, a good agent (Realtor, if you like) will discuss with you your wants and needs, likes and dislikes, determine what sort of price range you can be interested in, then scour the area you are interested in for properties that meet your criteria, at least in part. Usually the properties are being offered for sale through other agents. Most active agents spend a great deal of time staying familiar with the market place they work in, what is on the market, what deals are being done, the price levels and other pertinent factors. They use this knowledge, and their experience, to narrow the search for properties that you may be interested in.
Once you have found a property, an agent will help prepare an offer, and engage in whatever negotiations back and forth are necessary until either there is a contract, or one party loses interest. Markets vary enormously, in activity. Sometimes the market in an area is very slow, and a buyer will have his pick of properties. Sometimes, the market is very active and offers are frequently overbid by other potential buyers. The agent has to know what is going on in that market.
The agent will have the proper forms in customary use, have some idea of what conditions to the purchase are advised and the strong and weak points of various deal possibilities. Once a contract is accepted, the agent, or someone working for the agent a specialist comes in to guide you through escrow, with the blizzard of paperwork, deadlines, approvals, choices, changes that the circumstances may present.
Were it me, and it soon will be as we are buying a home in Texas as soon as our house here sells, I will have my lawyer review documents. An agent will pretend to know about everything, including all sorts of legal issues but don't rely on that. Some do, some don't, some only think they know, and it is beyond the scope of their responsibility, anyway. Moreover, the lawyer will be unquestionably on your side. Agents are susceptible to a malady of once the deal is signed, they represent the deal, not their client, because only a closed deal gets them paid. Things may be discovered, or occur, that make it in your best interest to bail out, and some agents hate to see a deal fall apart, their commissions along with it. Be especially attentive to disclosures from the seller and the HOA covenants and its rules. You will have to live with those. Some people seem to have trouble understanding these, so a lawyer on your side will be very useful to avoid unpleasant surprise.
Commissions are paid from the sellers' proceeds and almost always are divided between the listing broker and the selling broker. Generally the listing broker gets paid a commission the same whether you have a selling agent representing the buyer or not. You might as well have one, as it costs nothing extra. The agent may also be helpful in finding and qualifying for a loan, through his/her contacts.
There is a lot more to this of course.
A Realtor is a licensed real estate agent (whether salesman or broker) who is a member of the local Multiple Listing Service, State Association and National Association of Realtors. They subscribe to a Code of Ethics and such like rules, over and above the state's regulatory scheme. You can be a real estate broker without being a Realtor but cannot be a Realtor without being a licensed real estate agent. Generally, an agent active in residential sales will be a Realtor.
You do not have to have one to purchase property. That said, I learned a long time ago, in another context, that nothing beats knowing what you are doing, and if you don't, you had best get someone on your side who does, in all but the most trivial endeavors. Mistakes or misunderstandings can be very unpleasant and costly.
For a buyer, a good agent (Realtor, if you like) will discuss with you your wants and needs, likes and dislikes, determine what sort of price range you can be interested in, then scour the area you are interested in for properties that meet your criteria, at least in part. Usually the properties are being offered for sale through other agents. Most active agents spend a great deal of time staying familiar with the market place they work in, what is on the market, what deals are being done, the price levels and other pertinent factors. They use this knowledge, and their experience, to narrow the search for properties that you may be interested in.
Once you have found a property, an agent will help prepare an offer, and engage in whatever negotiations back and forth are necessary until either there is a contract, or one party loses interest. Markets vary enormously, in activity. Sometimes the market in an area is very slow, and a buyer will have his pick of properties. Sometimes, the market is very active and offers are frequently overbid by other potential buyers. The agent has to know what is going on in that market.
The agent will have the proper forms in customary use, have some idea of what conditions to the purchase are advised and the strong and weak points of various deal possibilities. Once a contract is accepted, the agent, or someone working for the agent a specialist comes in to guide you through escrow, with the blizzard of paperwork, deadlines, approvals, choices, changes that the circumstances may present.
Were it me, and it soon will be as we are buying a home in Texas as soon as our house here sells, I will have my lawyer review documents. An agent will pretend to know about everything, including all sorts of legal issues but don't rely on that. Some do, some don't, some only think they know, and it is beyond the scope of their responsibility, anyway. Moreover, the lawyer will be unquestionably on your side. Agents are susceptible to a malady of once the deal is signed, they represent the deal, not their client, because only a closed deal gets them paid. Things may be discovered, or occur, that make it in your best interest to bail out, and some agents hate to see a deal fall apart, their commissions along with it. Be especially attentive to disclosures from the seller and the HOA covenants and its rules. You will have to live with those. Some people seem to have trouble understanding these, so a lawyer on your side will be very useful to avoid unpleasant surprise.
Commissions are paid from the sellers' proceeds and almost always are divided between the listing broker and the selling broker. Generally the listing broker gets paid a commission the same whether you have a selling agent representing the buyer or not. You might as well have one, as it costs nothing extra. The agent may also be helpful in finding and qualifying for a loan, through his/her contacts.
There is a lot more to this of course.
Luckily, I have enough willpower to control the driving ambition that rages within me.