1st time homebuyer...........
 

Gent's -

Been thinking about plunking some of the extra cash towards a home. Always been a renter...not tied down nor have kids yet.

Just curious as I go through the process.
Did you guys just follow a book or like me....find a home I like, and just have the lawyer deal with the rest. I want to be a informed home buyer but like the daily grind, I got's too much schitz on my plate right now to really figure out the ins and out.

Just looking for some real world advice......

Chef,

Much of the answers you seek will be determined by the area you live in. As your Location only states that your in a "X5world" location, we really can't help you dial in your answers.

In California for example, lawyers are not commonly use to close a real estate deal. But in other states, it's quite common.

B

find a "buyers real estate agent" that you trust, the sellers agent pays them, not you. They'll be a good source of info.

:iagree:

typically the only time a Lawyer is used is at closing, and this is a closing Lawyer. The best advise is above...find a good buyers agent that you can trust. They are your best resource.

One other piece of advice...dont let your emotions control the purchase. Remember this is an investment.

LOL...Thanks. I've purchased two homes and buying a third this week and I've never used a lawyer. I was thinking WTF?

That said using the listing agent should in theory save you 3%; however, being your first home I'd be leery especially in todays market. Having your own agent who you trust can really save you thousands in a down market like the one we are having here in California.

you might save some money using the listing agent as your agent, but definitely not half the total commission, whether it be 2.5% or 3%. by becoming a dual agent, agents take on twice the risk. it wouldn't be sensible to take on twice the risk for the same pay. you might have a better chance at securing the property, save a few thousand off the purchase price, or have some of your non-recurring closing costs paid if you go through the listing agent, but it's not a guarantee. find an agent that you trust or has a good reputation. don't worry about whether they're a buyer's agent or listing agent. the only true buyer's agents are the ones that work for listing agents. a "buyer's agent" who works for themselves will never turn down listing a property because in real estate, that's where the money is at. and if you list properties, you're not really a buyer's agent. not sure where you live, but if you're looking for a good agent, PM me and I can refer you to one.
being a first time homebuyer, also make sure you go through a trustworthy lender. make sure to read the fine print. shop around and see who will give you the best rates and closing costs. when shopping for a loan, make sure to do all your shopping within a 2 week period. hard inquiries on your credit after the 2 week period will hurt your fico score. most banks won't lock your loan until you've entered into escrow on a property. i know one lender who will lock in the rate before you find a home, but those rates are higher. let me know if you have any questions.

First and foremost, visit your friendly banker or a Mortgage broker and get pre-qualified or better still get pre-approved. They will advise you how much of a mortgage you can afford and with that info you can pre-determine the price range you will be shopping for. When you find a great deal, you can negotiate with confidence.

Secondly, get a Realtor you can trust that will represent you as a buyer's agent. I wouldn't deal with a Seller's Agent. Their loyalty rests on the Seller and would like the highest price for the property. Your buyer's agent can do a lot for you, even checking out the neighborhood and the property you're interested with. And they are free-of-charge!

Thirdly, take your time. Prices are going down like crazy!. I just attended a seminar on Short Sales and Foreclosure and the statistics are staggering. There will be a lot of distressed sales during the next few months. You should be able to get a good deal if you are pre-approved.

Fourthly, you don't need an attorney. Between your Realtor and the Escrow company, you don't have to worry about any legal stuff. The Real Estate forms are very well-written and tested in the courts. Just make sure you ask the Realtor to explain all the paragraphs before you sign the offer.

Good luck, even though you don't need it. It's a buyers market right now if you're not in a hurry.:thumbup:

an attorney is ALWAYS a good idea. they don't charge much. usually $500.....

better to be covered prophylactically!

Hi Chef

Kind of a broad question, so assuming it is for you to live in, here are a couple of broad tips.... (caveat - IMO)

1.Work out what you want. Sounds silly but the number of people who have no idea 'until they see it' is quite enormous. By that I mean do you need a 2,3 or 4 bedrooms with ensuite and bathroom, do you need (or want) a study/den, single or double storey or a condo/apartment.
2. Spend a few moments looking in your local paper to find out the names of all the agents advertising in the target area. Then go to their websites and peruse their offerings. This allows a bit of research before you have to talk to anyone, and the better agents or an industry/national website lets you filter down to just the kind of properties you are wanting in your price range.
3.Legwork. Regardless of who does it, (eg buyers agent) it has to be done. It's exactly like buying a car. You need to compare the prices, look under the hood (ie structure) make sure it has the same options etc before you can compare the price. Re buyers agents, I would ask yourself if you are happy to let someone else buy a car for you, if so then go ahead with them. They will present options to you but you are relying on their reputation/price as to how thorough they are. Like I said, SOMEONE has to do it.
4.Land appreciates, buildings depreciate. The value of a property goes up in direct proportion to the land content. If you have a apartment that is one of a 100 on a plot, don't expect to get the same value uplift as a house on the same size plot when everyone is spruiking how many % the area has risen (or even dropped). By the way, finding the land value in the area is a great way to assess the price. If you are paying land value for something and the house is a bonus (ie needs work) then you are able to capitalise on this depending on the value you add. Secondly, the market commentators are talking about the WHOLE market, rarely do they (or even know why to) differentiate between condo price movements versus house price movements. It is quite often one type of property (eg houses) that is driving the suburb.
5.Purchase. It might pay to let the forum know which city you reside in so that local members can give you some tips re the laws in your state, however I work on the rule of fair/fair. If a vendor wants a high price then I get something in return. Quite often that can be an extended settlement. I have in the past bought property at the vendors price, but on condition that I have no money down for 10-12 months. That can mean extra growth in value without the overheads/payments. (It doesn't really alter much if the value is going down as you'd be in that boat if you'd settled immediately anyway).
6.Don't be small minded. Lot's of people 'walk' from a deal over a couple of thousand dollars as they feel they didn't 'win' some part of the negotiation. They look back later and say they 'coulda' bought that property cheap etc. Take the long term view.
7.Finance. GET YOUR OWN CREDIT CHECK. Lenders like to hit your credit reference each time you make an application and multiple hits show that you are shopping around. Get your own current copy, provide that to a broker and don't sign anything until you have a proposal in front of you.
8.Talk to a BROKER. Let them do the running around for you and get pre-qualified/approved so you can crunch a deal if you have to with a stressed vendor by offering short term settlement. As above, time=money, so settle soon get a discount.
9. Don't try to screw the agent for a cheap commision deal. How motivated would you be in his shoes if the buyer is wanting you to run around as an agent and then want a lower commision? Pay him/her full comm and get them WORKING.
10. TAKE YOUR TIME AND HAVE FUN!

Good luck

Cheers