House buying question

[Eaglesfan27]

So, today we viewed a half dozen places. Mrs. Eaglesfan loved the last one except for one thing that she wants changed in the Kitchen, but we could do that without too much trouble within the next year. For me, the house is great except for the location. It is about 15 miles to work, but is very conveniently located by the interstate and another major highway. The size is great, nice size yard (certainly big enough to add a pool like we want.) They already have a media room wired with surround sound. The home is newer like I wanted, as it is only a year old. Basically it meets all of my checklists, and the wife loves it. We were pleasantly surprised to find it on the first day looking..

That brings me to my question. I've never bought a house before. With a new house (we saw one that we liked), I understand there is very little negotiation room since contractor's need to keep their stats up. However, with a used home, I expect some negotiation room in the price that the seller is asking since they need to move due to a job transfer. As a completely hypothetical situation, let's say they are asking 400,000 for the home (that is not the actual figure but in the ball park.) My question is: Is there a standard amount or a recommended amount that I should offer below this? For example, I'm considering offering 95% of the asking price or about 380k in my hypothetcal. Do people who have experience think that is too low or too high to open with? Should I only offer 90% of their asking price.

If we offer 95% of their asking price, I was also debating between asking them to pay all or part of the closing costs. I can afford the closing costs, but obviously would have more cash in hand to start the changes to the kitchen if they paid closing costs. Also, I'm going to be asking them to vacate the house in a timely manner as I want to move in by May. We are also going to ask them to leave in the surround sound speakers in the media room and also some drapes that my wife loves. So, with those stipulations does 95% seem like a reasonable opening offer? I'm going to talk with my uncle who is a lawyer tomorrow, but I thought there might be some good viewpoints here as well.

[JonInMiddleGA]

We're wrestling with the same thing right now ourselves, and I'm not really sure if there is a "right" answer.

Talk with your agent (if you've got one, I honestly can't remember whether you have one working on your behalf or not), they should be able to help you get a better handle on how the owner will react to a low-ball offer. You don't want to be so low that you lose an opportunity but you obviously don't want to pay more than you have to either.

For the sake of FWIW, we're probably going to offer something between 90 & 95 percent of asking price for the house I described in my Wacky Ass day thread earlier, but that's almost certainly the highest we've ever considered on a house largely because it's already priced very reasonably & we don't believe there's much wiggle room built into the price. IIRC, we ended up paying something like 86% of the the original asking for the house we're currently in.

[Eaglesfan27]

Originally Posted by JonInMiddleGA

We're wrestling with the same thing right now ourselves, and I'm not really sure if there is a "right" answer.

Talk with your agent (if you've got one, I honestly can't remember whether you have one working on your behalf or not), they should be able to help you get a better handle on how the owner will react to a low-ball offer. You don't want to be so low that you lose an opportunity but you obviously don't want to pay more than you have to either.

For the sake of FWIW, we're probably going to offer something between 90 & 95 percent of asking price for the house I described in my Wacky Ass day thread earlier, but that's almost certainly the highest we've ever considered on a house largely because it's already priced very reasonably & we don't believe there's much wiggle room built into the price. IIRC, we ended up paying something like 86% of the the original asking for the house we're currently in.

I read that thread and thought about posting in it, but didn't want to threadjack. Thanks for the feedback, it is much appreciated. I also don't think there is much wiggle room in this offer because it is reasonably priced compared to brand new homes in that subdivision which appears to be on the rise with plenty of beautiful homes being built..

[Eaglesfan27]

Dola -

Already talked to my agent, and she said she isn't sure how they will react to a lowball offer, but she knows they are motivated to sell because of the impending transfer.

[Masked]

The New Orleans market is very odd right now so it's hard to judge what you will have to offer. My parents made an offer on two houses in the past few weeks. The first time the seller came back and wanted significantly more than the asking price. The second time, my parents had to offer a bit more than asking to trump several other offers.

[Eaglesfan27]

Originally Posted by Masked

The New Orleans market is very odd right now so it's hard to judge what you will have to offer. My parents made an offer on two houses in the past few weeks. The first time the seller came back and wanted significantly more than the asking price. The second time, my parents had to offer a bit more than asking to trump several other offers.

Keep this very quiet, but it's not in the New Orleans area...


Edit: Rather, it is not within 50 miles of New Orleans.

[Masked]

Originally Posted by Eaglesfan27

Keep this very quiet, but it's not in the New Orleans area...


Edit: Rather, it is not within 50 miles of New Orleans.

Well in that case, be thankful you don't have to offer more than the asking price.

[stkelly52]

IF you really want the house you need to be careful about giving too low of an offer. How quickly are houses selling for in the area? If there are several other offers then you might be out of luck.

[Eaglesfan27]

Originally Posted by stkelly52

IF you really want the house you need to be careful about giving too low of an offer. How quickly are houses selling for in the area? If there are several other offers then you might be out of luck.

I just got a list of houses that sold in the area from my real estate agent. Most of the houses have sold between 95-105% of list price in the past year in this area. Most of the houses have been on the market for about 6 months on average.

I'm leaning towards offering 95% of the list price tomorrow, but haven't decided for sure yet.

[Mustang]

Depends on the current market where you are looking and what you've looked at before plus, how long has it been on the market? If it has been on the market a short period of time, you might not have alot of room.. as opposed to something that has been around 6 months. (My house I saw the day after it came on the market and I roughly gave them the asking price.. shaved $500 off it and they gave me the appliances.. but, then again.. my house was only $119K so... big difference)

[AgustusM]

all depends on the market - houses all around the neighborhood with for sale signs that stay up for weeks and you can comfortably low ball.

signs come down within days you better be prepared to up the anti

[Honolulu_Blue]

Originally Posted by Eaglesfan27

I just got a list of houses that sold in the area from my real estate agent. Most of the houses have sold between 95-105% of list price in the past year in this area. Most of the houses have been on the market for about 6 months on average.

I'm leaning towards offering 95% of the list price tomorrow, but haven't decided for sure yet.

I just went through the same process. Lady H_B and I just bought a house two weeks ago. We close on March 24.

Trying to figure out a purchase price was by far the hardest thing. We had the added difficulty of the fact that the house was never technically on the market, so there was no list price. The seller's realtor told us in advance, however, what they were planning on listing it for.

We ended up making our original offer at 90% of the asking price, they countered with 95% of the asking price and that was that. We considered dickering around with another counter offer, but figured it wouldn't be worth it. If you are looking to pay 95%, you can go in a little lower and hope for something like we got. You can always shave some off the purchase price after the inspection, though given the newness of the house I reckon there shouldn't be too much wrong with it.

A lot of the above advice is right, try to figure out the market. It sounds like you already had your realtor run the comperables in the area to get a sense of what similar houses are going for. I can't talk to the new construction stuf, because Lady H_B hates new construction. In fact, the house we bought was built in 1916 (it's 90 freakin' years old). It's a thing of beauty, though. I love it and cannot wait to move in.

Good luck with it!

[flere-imsaho]

As others have said, it all depends on how likely it is that someone else will make an offer on the house. If it's unlikely, then I'd feel secure offering 90%. This is assuming, of course, that what they're selling for is reasonable to begin with.

With regard to asking them to pay closing costs and suchlike, my advice would be to avoid getting complicated like that. "You'll pay for X, we'll pay for Y, etc...." There ends up being enough stuff flying around in these transactions that you don't want to make it any more complicated than it already is.

[Eaglesfan27]

Ok, VERY stupid question here at the insistence of my wife...


Do we the buyers have to pay our agent for the purchase of the house? If so, do we have to pay at the time of closing?

I thought that our broker was paid 3% but that it was paid from the proceeds of the sale of the house, but now my wife is confusing me, and so she insisted I ask the experts on here.

[cartman]

Originally Posted by Eaglesfan27

Ok, VERY stupid question here at the insistence of my wife...


Do we the buyers have to pay our agent for the purchase of the house? If so, do we have to pay at the time of closing?

I thought that our broker was paid 3% but that it was paid from the proceeds of the sale of the house, but now my wife is confusing me, and so she insisted I ask the experts on here.

It depends on the state laws. In Texas, the person selling the house pays the commission for both agents. In California, it's the person buying the house. Not sure what the LA laws are.

[FrogMan]

Originally Posted by Eaglesfan27

Ok, VERY stupid question here at the insistence of my wife...


Do we the buyers have to pay our agent for the purchase of the house? If so, do we have to pay at the time of closing?

I thought that our broker was paid 3% but that it was paid from the proceeds of the sale of the house, but now my wife is confusing me, and so she insisted I ask the experts on here.

tell her she is a very wise woman and yes we have experts, we even have our own resident doctor

FM

[FrogMan]

dola, got no answer for you though, as cartman's reply implies, the Canadian laws are probably different than many States laws. Fwiw, in Quebec, buyer never pays, seller always does...

FM

[finkenst]

Originally Posted by FrogMan

dola, got no answer for you though, as cartman's reply implies, the Canadian laws are probably different than many States laws. Fwiw, in Quebec, buyer never pays, seller always does...

FM

my baby sister (alright, she's 32) just bought her first house. The buyer pays a commission.. it goes to both the seller's agent and my sister's buyer's agent.

[rlfreeze]

Here is another idea. Find out who their agent is and contact him/her. Let them know you are interested. Perhaps, you could then negotiate with agent in the cost department. Because the agent is making a profit on the sell and buying of the house, you could work a deal on the closing costs and what not.

[kcchief19]

Originally Posted by Eaglesfan27

Do we the buyers have to pay our agent for the purchase of the house? If so, do we have to pay at the time of closing?

I thought that our broker was paid 3% but that it was paid from the proceeds of the sale of the house, but now my wife is confusing me, and so she insisted I ask the experts on here.

Some states have laws, but sometimes it's negotiable. In our market, 6 percent is the standard fee with 3 percent going to the seller's agent and 3 percent to the buyer's agent. That is almost always included in the sales price. By including it in the sales price, it helps with financing and out-of-pocket costs so that you don't have to come up with a downpayment, closing costs AND the agent fee.

The percentage of asking price varies by market and even neighborhood. Right now in Kansas City, sales prices are about 97 percent of asking price. But you may have one neighborhood where people get 105 percent of asking price and another with 85 percent of asking price.

When you say "our broker," is that YOUR broker or the broker for the seller? If you are working with your own agent, they should absolutely be able to use the local MLS or whatever system is used down there to tell you what the typical sales price and percentage of asking price is for that particular neighborhood. If they don't or can't tell you, I think they are doing you a major disservice. The only exception to that would be if you are buying in a highly rural or sparsely populated area where there aren't enough comparable sales. But here in Kansas City, you can look up individual subdivisions and get the average sales price, asking price, etc.

Good luck! For all the hassle, buying a home is a great experience.

[Solecismic]

We've bought two houses in the last ten years and sold two. Six months on the market sounds like a long, long time. Though it's not as bad given that homes traditionally sell better in the six months beginning in March.

Since we're going to be selling ours late this year, I've been tracking the local market extensively. There are currently 91 houses on the market, of which 40 have been there six months or longer and only 21 three months or less.

It's hard to determine everything because a lot of people overprice their home and just leave it out there to see what comes in. Others clearly want to sell immediately. I've tracked the assessed price/sale price ratio and there's not necessarily any rhyme or reason to it. Assessments can be very political.

My gut instinct is that 95-105% and six months average sale time are conflicting concepts. Perhaps there are a lot of houses on the market that have been there forever and can't sell, skewing the average. At six months, I'd think 85% would be a reasonable offer.

[Eaglesfan27]

When I said our broker, I meant my broker. The seller is actually a real estate agent and they are representing themself. However, that is even scarier if I had to pay my agent and the seller an additional 3 percent each in addition to the closing costs and downpayment. My understanding in Louisiana is that I only have to pay the closing costs and Downpayment and that the brokers are paid their commission from the actual sale money of the home, but suddenly I'm concerned that my perception was wrong..

[Eaglesfan27]

Dola -

My agent (I keep using "our" because the agent represents myself and my wife) did give us a list of properties and what percentage of asking price they have sold at and how long they were on the market.

[finkenst]

Originally Posted by Eaglesfan27

When I said our broker, I meant my broker. The seller is actually a real estate agent and they are representing themself. However, that is even scarier if I had to pay my agent and the seller an additional 3 percent each in addition to the closing costs and downpayment. My understanding in Louisiana is that I only have to pay the closing costs and Downpayment and that the brokers are paid their commission from the actual sale money of the home, but suddenly I'm concerned that my perception was wrong..

that's the way it is in illinois and arizona.

[finkenst]

fwiw, 6% split in arizona, 7% split in illinois

[Eaglesfan27]

Well, at least according to the LA-Legal website which discusses typical house buying transactions in Louisiana and issues involved with the transaction, the "real estate commission" is paid for by the seller.

[Eaglesfan27]

Dola -

Also, I just sent an email to a friend of mine who bought a house in the past year, and I'm hoping Dutch will chime in if he has bought a place.

[Dutch]

Damnit, you pinned me down!

I am no expert on home buying. Actually, I just had to contact my realtor this week to discuss selling my home because I have orders to Germany this summer.

But in any event, the seller pays for both realtor's so far as I remember. The seller paid all the closing costs as well, but that's negotiable. (3% for buyer agent and 3% for seller agent)

Keep an eye out for similar homes and see what they are selling at....(if possible). Pay close attention to the age of the house, the square footage and the selling (asking) price. See if it's comparable to what you are looking at. (That might be easier for me since I'm in a big neighborhood with the "cookie-cutter" styled homes.)

You should be able to get a home warranty on your house with the initial sale and you can re-up it every year. That may be more beneficial if you are buying an older home. But for the first year, it's good piece of mind, especially if you just sunk a bunch of your capital into a down payment.

Be prepared for the last meeting with your realtor when it's time to decide on a contract to offer. Don't get cold feet. Trust your research. When the realtor asks you how much you want to offer, stick to your gameplan.

Don't go to low. I bought my house a few years ago when the market was hopping, so I didn't have much choice. The market seems a little colder now, so I expect some negotiating as a seller.

I think more expensive homes (like what I assume you are looking for) would have more wiggle room, but I am unsure.

Anyway, what was the question?

[Dutch]

Also, how long do you want to live in this home?

If you are there for a long period, adjustable rate mortgages might be a scary option. Interest rates are still low and a fixed rate should be the way to go.

[Eaglesfan27]

Thanks Dutch!

I was fairly sure that the seller paid both commisions, but hearing you say that makes me feel better about my understanding.

My agent told me that I could have asked the seller to pay the closing costs, but the fact that I'm willing to do so may show that I'm a more serious buyer. Since, I'm already negotiating some on the price, I'm not going to worry about the closing costs. I actually have my agent typing up a tentative purchase agreement tonight that if it looks "correct" and my attorney uncle approves of it will be signed in the next 24 hours or so... *GULP*

Oh yeah, the seller is specifically offering a 1 year "maintenance" plan on the home. I doubt it will used much since the house was built in 2005, but you never know, and as you said it will be nice piece of mind since I'm sinking a large portion of my liquid funds into the downpayment and closing costs.

However, Mrs. Eaglesfan has been gazing at the pics all day today, and she really does love the place and I find it very nice, so we'll take the plunge tomorrow.. Oh yeah, the area is in a "C" Flood Zone which is my understanding is the best designation and all of my research shows that there has been no significant flooding in the area in the past. Also, the air quality is very good, tax rates are nice, the crime rate is SO much lower than where I currently live that it is unbelievable... basically all my last minute final research is turning up very positive.

[Eaglesfan27]

We are hoping to live in this home for the rest of our lives

It's big enough that we could have 3 kids and live very comfortably. Since, the plan is 2 max, I'll probably always have an extra room for an office. Of course, the media room could always be converted if something very unexpected happened. I guess there is a chance we could decide we wanted something nicer in 10 years or so, but I doubt that would happen. In any case, I definitely plan on going with a Fixed rate, and I was very pleasantly surprised when I was instantly pre-approved on Friday for a rate that I'm quite happy with. I thought my rate would be higher due to some bad credit from 98-99 back when I was a financially struggling medical student..

[Honolulu_Blue]

Originally Posted by Eaglesfan27

Well, at least according to the LA-Legal website which discusses typical house buying transactions in Louisiana and issues involved with the transaction, the "real estate commission" is paid for by the seller.

For what it's worth, this is also how it works in Michigan. We just bought a house and the seller will pay all the commission. Here there is a 6% commission of which the seller's agent gets 3% and the buyer's agents will get 3%. We pay all the other closing costs.

[Honolulu_Blue]

Dola

Apparently, as Dutch explained above, it works the same way in Louisiana.

You might also want to get the seller to buy you a one year home warranty. Ours cost $400 and it covers repair/replace of all the "big ticket items" in a house if they go bad due to wear and tear in the course of the first year.

We also wrote into our agreement that we had the right to walk away if the house was appraised at anything lower than the purchase price. That was sort of an odd provision we threw in because the house we bought was pretty unique for the area and it was hard to figure out the fair market value.

Just some more things to keep in mind.

When you sign and send in the offer it's exciting/exhilirating/terrifying all at the same time. Fun stuff.

[Dutch]

I'm not sure of the difference in flood zones. I was initially required to have flood insurance but only the back part of my lawn is actually in a flood zone so it wasn't neccessary. (I never did figure out if it was still a good idea to get it...just in case...or if I was flood insured since it wasn't actually a flood zone.)

Anyway,

It's really quite impressive as my neighbor's entire yard is in the flood zone.

Check out these picks from Tropical Storm Rita as it crossed over Shreveport.


Most of my backyard - nice and green


Neighbor's yard...taken at roughly the same time!

[Eaglesfan27]

Originally Posted by Honolulu_Blue

Dola

Apparently, as Dutch explained above, it works the same way in Louisiana.

You might also want to get the seller to buy you a one year home warranty. Ours cost $400 and it covers repair/replace of all the "big ticket items" in a house if they go bad due to wear and tear in the course of the first year.

We also wrote into our agreement that we had the right to walk away if the house was appraised at anything lower than the purchase price. That was sort of an odd provision we threw in because the house we bought was pretty unique for the area and it was hard to figure out the fair market value.

Just some more things to keep in mind.

When you sign and send in the offer it's exciting/exhilirating/terrifying all at the same time. Fun stuff.

Actually in post 30, I mentioned that they already have stipulated that they will buy a 1 year home warranty for us.

I got the agreement and just finished reading it. It says we have the right to walk away if the home appraises at lower than the purchase price. We also have the right to walk away if any problems that we find unacceptable show up in our independent inspection. We also can request they fix it in a timely fashion, and if they refuse, then we can walk away. There is also a standard contingency clause for if our financing falls through (despite us being pre-approved.) I'm reading the rest of it now, but it seems like our agent is being very meticulous which I like. Oh yeah, there is also a clause for us getting an out if the home is found to have any termite infestation or damage which is important down here. Alternatively, we can have them treat the house and repair any damage that has been done. However, the owner reportedly has a certification that the house has been routinely treated to prevent termites since it was built. Also, since the house is mostly brick, termites should hopefully be less of a problem here.

[Eaglesfan27]

Wow, Dutch. Very dramatic. As you know, we were in Shreveport for Rita as well, and the apartment we stayed at had some dramatic flooding outside of it.

As far as our home, the entire neighborhood is in a Flood C zone which doesn't require any flood insurance and from all of my research is supposed to be the best flood zone possible, but we will obtain flood insurance "just in case."

[Dutch]

Originally Posted by Eaglesfan27

Wow, Dutch. Very dramatic. As you know, we were in Shreveport for Rita as well, and the apartment we stayed at had some dramatic flooding outside of it.

As far as our home, the entire neighborhood is in a Flood C zone which doesn't require any flood insurance and from all of my research is supposed to be the best flood zone possible, but we will obtain flood insurance "just in case."

That would be my question though. If you are not required to have flood insurance, does that mean your home insurance would cover flooding since it would be considered unusual?

I'm very curious how that works.

[Eaglesfan27]

Originally Posted by Dutch

That would be my question though. If you are not required to have flood insurance, does that mean your home insurance would cover flooding since it would be considered unusual?

I'm very curious how that works.

That is a very good question. I'm not sure, but I'll be researching that over the next few days.

[Honolulu_Blue]

Originally Posted by Eaglesfan27

Actually in post 30, I mentioned that they already have stipulated that they will buy a 1 year home warranty for us.

I got the agreement and just finished reading it. It says we have the right to walk away if the home appraises at lower than the purchase price. We also have the right to walk away if any problems that we find unacceptable show up in our independent inspection. We also can request they fix it in a timely fashion, and if they refuse, then we can walk away. There is also a standard contingency clause for if our financing falls through (despite us being pre-approved.) I'm reading the rest of it now, but it seems like our agent is being very meticulous which I like. Oh yeah, there is also a clause for us getting an out if the home is found to have any termite infestation or damage which is important down here. Alternatively, we can have them treat the house and repair any damage that has been done. However, the owner reportedly has a certification that the house has been routinely treated to prevent termites since it was built. Also, since the house is mostly brick, termites should hopefully be less of a problem here.

Gotcha, I read the hose maintenance thing and just wasn't sure if it was one in the same as the warranty. Upon a closer reading, it clearly is.

Well, from my limited experience on the subject, the purchase offer as you describe it sounds pretty tight. All the important things seem to be in order. We had similar provisions, but no termite provision. Not an issue in Michigan.

We had our inspection two weeks ago. Our inspector identified about 4 things that he recommended we have taken care of immediately. We gave the list to the seller and asked that they have some repairs done (fixing stairs to the basement, replacing a rusted through pipe, etc.) and to give us a credit to replace the entire electrical system. The house is 90 years old and the wiring is all whacky and not too safe. They responded with a simple "No." Since we were in love with the house, we sucked it up and decided to hold off moving in for a bit and take care of the repairs ourselves (ie, pay someone to fix it for us).

Good luck!

[flere-imsaho]

Originally Posted by Eaglesfan27

My understanding in Louisiana is that I only have to pay the closing costs and Downpayment and that the brokers are paid their commission from the actual sale money of the home,

That is exactly how it worked for us... in Illinois.

[cartman]

I wholeheartedly endorse the home warranty plan, even on a newer house. I lot of times the warranty on appliances expires when a house is sold, or just don't transfer to the new owners.

My place was built in 2001, and I bought it in early 2004. Right after I moved in, the compressor went out on the AC. All I had to pay go get it fixed was $75. That payed for several years of home warranty coverage right there. Just recently, the motor in the jacuzzi tub went haywire, and all it costs to get the motor replaced was another $75.

[Dutch]

Hmmm, somebody at work just told me that the buyer pays for their own realtor fees (which kind of makes sense) but I never remember paying my realtor anything? I assumed it was all included....

So I'm confused now.

[Eaglesfan27]

Originally Posted by Dutch

Hmmm, somebody at work just told me that the buyer pays for their own realtor fees (which kind of makes sense) but I never remember paying my realtor anything? I assumed it was all included....

So I'm confused now.

Darn. I'm hoping the person at your work is wrong. My friend hasn't replied to their email yet, but you don't seem to remember it, and the LA-Legal website says that the seller pays "the commission" which I assume is split between both brokers.

[wade moore]

Originally Posted by Eaglesfan27

Darn. I'm hoping the person at your work is wrong. My friend hasn't replied to their email yet, but you don't seem to remember it, and the LA-Legal website says that the seller pays "the commission" which I assume is split between both brokers.

I think you're making more complicated on yourself than you should be ...

Assuming VA is like most other states (which I think it is)... the money for the seller and the buyer comes out of what you agree to pay for the house. Various people THINK of it various ways, but what it comes down to is if you put down a contract for a $100,000 home and the commission for both realtors is 6%, the seller is walking away with $94,000. So some people say you're paying for it because it is out of the money you paid them, some say the seller is paying it because it comes out of their bottom dollar.

Either way I think your concern is that you will have to come to the table with that commission money, you won't. I just bought my house a year and a half ago. The only money to come to the table with is your closing costs and then your mortgage "check". That's it...

Now again, that's if it is the same as VA.

[Eaglesfan27]

Wade Moore, I think you are correct. I just polled 4 co-workers who have all bought houses in Louisiana and they all say the same thing. The money comes out of the sale price. It's a matter of perspective of who is paying it, but ultimately it is the seller who is getting the sale price - the commission of both agents.

My only concern was: Do I have to make an extra payment besides the downpayment and closing costs. The answer appears to be no, which is good

[JonInMiddleGA]

Originally Posted by Eaglesfan27

My only concern was: Do I have to make an extra payment besides the downpayment and closing costs. The answer appears to be no, which is good

If it's any consolation, I just asked the exact same question myself about 2 hours ago. That's how I thought it worked but figured I better be sure rather than sorry.

[Eaglesfan27]

Originally Posted by JonInMiddleGA

If it's any consolation, I just asked the exact same question myself about 2 hours ago. That's how I thought it worked but figured I better be sure rather than sorry.

That is consolation. Glad I'm not the only one who was confused/concerned about this.

[Craptacular]

Originally Posted by Eaglesfan27

As far as our home, the entire neighborhood is in a Flood C zone which doesn't require any flood insurance and from all of my research is supposed to be the best flood zone possible, but we will obtain flood insurance "just in case."

Dealing with FEMA and flood insurance has EASILY been the most frustrating part of my homeowning experience. It's frickin' ridiculous. I could vent for ten pages, but I'll digress, for now.

Zone C is one of the zones that either has less than a 1% chance of flooding in a given year, or is protected by levees (must ... hold ... back ... rage). You may still purchase flood insurance, but ONLY if your community participates in the National Flood Insurance Program (I'll just go ahead and assume most places down there do).

To answer Dutch's question, your homeowner's policy DOES NOT cover flood damage, even if you are not required to have it.

[Eaglesfan27]

We made a formal offer at 7:00 PM tonight. Now, we are in the long 24 hour waiting period to hear their response...


I finally just asked my agent even though I felt kind of stupid asking that question, and she told me it is standard that the seller pays both agents in Louisiana from the sale price of the home. I don't have to pay any other fees besides downpayment and the closing costs.

Keeping my fingers crossed that our offer is accepted (we finally decided to go with a offer of a little over 95% and asked for a few things to be left such as the surround sound in the media room and drapes, curtains, and such.

[Marc Vaughan]

Best of luck - hope it all comes good for you