Couple of house buying questions

vex · 03-28-2006, 11:02 PM

First off, should we chose for our real estate broker to be a "Transaction Broker" or a "Single-Party Broker?" I really had no clue and told the broker that I'd have to consult FOFC first.(Well, I was thinking it)

Secondly, the house is for sale for $59,500, and we were willing to pay full price if need be, but we were going to first make an offer of $56,500.

When we were in the brokers office going over paperwork, she printed out a list of comparable homes that they had closed on in the past. I was looking at the list and thought an address seemed VERY familar. Low and behold, it was the house we were looking at. Turns out they bought it for $46,000 on 12/05 while it was listed for $57,500, re-painted and carpeted it and put it back on the market on 02/06.

Question is, what should we offer now? We're thinking a first offer of $52,000 or so, but we're really not sure what to do. Thanks in advance.

Swaggs · 03-28-2006, 11:12 PM

I don't have a good answer for the first question, but have a suggestion for the second one.

Get a number, in your head, that you are comfortable with. In this case, it sounds like you are willing to pay full price and would be happy with $56.5K. I think, that since it has been on the market for a month and a half, starting at $50-52K is a good idea.

Since it has been on the market for nearly two months, there is little chance that another buyer will become interested in the 48-72 hour window you will be working in, so offering $50-52K will give you a chance to save some money, but more than likely, they will give you a counter-offer somewhere in between their asking price and what you offer and that should get you somewhere near the $56.5K range that you are looking to pay.

If you want to play hardball and negotiate even further, you should be in a good position, as they will not want to lose a captive and capable buyer since the house has been on the market for a considerable amount of time.

vex · 03-29-2006, 12:42 PM

Just a bump from the 2nd page.

JonInMiddleGA · 03-29-2006, 01:10 PM

I'd say your figures are about right, maybe go $53k on the first, hoping to end up somewhere between $56k-$57k.

Crapshoot · 03-29-2006, 01:11 PM

I just want to know where I can buy a house for that price. Wow.

st.cronin · 03-29-2006, 01:12 PM

Quote:

Originally Posted by Crapshoot

I just want to know where I can buy a house for that price. Wow.

No kidding.

kcchief19 · 03-29-2006, 01:16 PM

Question the first: Your choice with what you feel comfortable with. Personally, if I'm using a broker I want them to be a single-party broker -- that makes them a bit more free to offer advice and help you watch out for pitfalls. In essence, they are acting for you. A transaction broker is really more of a neutral agent. They will advise both the seller and the broker, but they owe no allegiance either way. They can't advise you that you're making a bad offer or help you spot flaws with the home or the contract. The only time I'd recommend a transaction broker is when you're dealing with a buyer/seller who doesn't have their own broker and you want someone who can handle the paperwork. If you're working with an agent, you want them to be working for you. Most of the times, agents will want you to sign this up front before they even show you a house because without the agreement you aren't bound to use them, but once the agreement is signed they are your agent for the properties they are showing you.

As for the offer, I'd take a close look at what was done. If it was sold six months ago for $46,000 and is on the market at a 30 percent markup, there is something up. You say they repainted and recarpeted, but that's not worth $13,000. See if anything else was done -- new appliances, remodeling, eletrical work, roofing, plumbing, repairs, anything. If some other things were done, it's certainly possible. Maybe the house was simply in disrepair and they cleaned it up.

Check out the other comparable sales in the area -- sounds like your agent already did. Take a look at them and see if you're in the ballpark. If your offer would make your house the highest priced on the block, you might want to reconsider your offer. It's one thing to see comparable prices, but I'd drive by the houses and see how they really compare to yours.

Sounds like you're buying from a flipper, and if the agent is suggesting a transaction broker it sounds like they are selling it themselves. If that's the case, I'd definitely recommend the single-party broker, assuming the broker has no connection to the seller. You need someone who can offer you solid advice and not be helping out the seller who is sounds like they are trying to flip a quick buck.

Good luck! Buying a house is hard and a PITA, but it's also sweet, sweet freedom!

Eaglesfan27 · 03-29-2006, 01:40 PM

Quote:

Originally Posted by kcchief19

Question the first: Your choice with what you feel comfortable with. Personally, if I'm using a broker I want them to be a single-party broker -- that makes them a bit more free to offer advice and help you watch out for pitfalls. In essence, they are acting for you. A transaction broker is really more of a neutral agent. They will advise both the seller and the broker, but they owe no allegiance either way. They can't advise you that you're making a bad offer or help you spot flaws with the home or the contract. The only time I'd recommend a transaction broker is when you're dealing with a buyer/seller who doesn't have their own broker and you want someone who can handle the paperwork. If you're working with an agent, you want them to be working for you. Most of the times, agents will want you to sign this up front before they even show you a house because without the agreement you aren't bound to use them, but once the agreement is signed they are your agent for the properties they are showing you.

As for the offer, I'd take a close look at what was done. If it was sold six months ago for $46,000 and is on the market at a 30 percent markup, there is something up. You say they repainted and recarpeted, but that's not worth $13,000. See if anything else was done -- new appliances, remodeling, eletrical work, roofing, plumbing, repairs, anything. If some other things were done, it's certainly possible. Maybe the house was simply in disrepair and they cleaned it up.

Check out the other comparable sales in the area -- sounds like your agent already did. Take a look at them and see if you're in the ballpark. If your offer would make your house the highest priced on the block, you might want to reconsider your offer. It's one thing to see comparable prices, but I'd drive by the houses and see how they really compare to yours.

Sounds like you're buying from a flipper, and if the agent is suggesting a transaction broker it sounds like they are selling it themselves. If that's the case, I'd definitely recommend the single-party broker, assuming the broker has no connection to the seller. You need someone who can offer you solid advice and not be helping out the seller who is sounds like they are trying to flip a quick buck.

Good luck! Buying a house is hard and a PITA, but it's also sweet, sweet freedom!

Excellent post. 26 days til we close, and I couldn't be more excited. For my purposes, we insisted on a single-party broker, and we were/are VERY happy with the service that she offered/offers to us.

KevinNU7 · 03-29-2006, 01:55 PM

Ok seriously what does a $56k house look like? I can't even buy land around here for that price

Edit: And by "around here" I mean New England

stevew · 03-29-2006, 02:24 PM

It all depends on location. You can get some nice spreads out here in the middle of nowhere for around 70K. If you want to buy a bit of a fixer upper, you can go in the mid-30s. Its basically location, there aren't the jobs in my area where you can make the big bucks.

For 56K I'd think it's probably a pretty nice place for a starting house. If the market is similar to where i live.

scooper · 03-29-2006, 02:54 PM

Yeah, my wife and I watch those home flipping shows where houses not much larger than our own go for over $300,000 or $400,000. Ours would probably sell today for around $140,000 in Ohio.

My wife works in HR and is involved in relocation for major hires. She is amazed at how many people make a killing by selling a home on either coast and moving into a comparable one in the midwest.

Franklinnoble · 03-29-2006, 03:02 PM

Ugh... my place cost over $350,000, and it's a fixer. I wanna know where you're buying a $55,000 house. At this point, I could almost pay cash for that.

Eaglesfan27 · 03-29-2006, 03:18 PM

Quote:

Originally Posted by Franklinnoble

Ugh... my place cost over $350,000, and it's a fixer. I wanna know where you're buying a $55,000 house. At this point, I could almost pay cash for that.

Yep. It's all about location. I priced comparable houses to what we bought and it was almost a million dollars near Los Angeles, CA. However, it is MUCH less for the location that I'm buying in. I also looked at similar houses in the middle of no-where and they run for about half of the price that I'm paying.

Cap Ologist · 03-29-2006, 04:35 PM

Vex, I have a villa in Corleone you can have or a house at Port Senyn rent free

JonInMiddleGA · 03-29-2006, 05:00 PM

Quote:

Originally Posted by Cap Ologist

Vex, I have a villa in Corleone you can have or a house at Port Senyn rent free

LMAO

vex · 03-29-2006, 10:22 PM

Well, it's a $60K house for a reason. It's fairly old(1955) and needs a good bit of remodeling:

vex · 03-29-2006, 10:23 PM

Quote:

Originally Posted by Cap Ologist

Vex, I have a villa in Corleone you can have or a house at Port Senyn rent free

lol, got anything in Vegas?

Marc Vaughan · 03-30-2006, 05:35 AM

Quote:

Well, it's a $60K house for a reason. It's fairly old(1955) and needs a good bit of remodeling:

Heh - 1955 is young by English standards and that price is very very nice compared to in England, we bought near Cambridge rather than in London because its cheaper here and still that price in our town would just about get you a garage (no house to go with it) ....

Samdari · 03-30-2006, 07:10 AM

Quote:

Originally Posted by Crapshoot

I just want to know where I can buy a house for that price. Wow.

I'm amused by the thought of being able to make more than one offer.

FrogMan · 03-30-2006, 07:18 AM

Quote:

Originally Posted by vexroid

Well, it's a $60K house for a reason. It's fairly old(1955) and needs a good bit of remodeling:

wow vex, unless it's got some serious structural problems, even with some remodeling to do, it looks like a very nice house for a young couple's first house. It's my opininon anyway.

Good luck with the whole process.

FM

stevew · 03-30-2006, 07:19 AM

Quote:

Originally Posted by vexroid

Well, it's a $60K house for a reason. It's fairly old(1955) and needs a good bit of remodeling:

That looks like a good place for little Vexorellis to run around in. Is that windowed area on the left the living room?

vex · 03-30-2006, 09:01 AM

Quote:

Originally Posted by stevew

That looks like a good place for little Vexorellis to run around in. Is that windowed area on the left the living room?

Yes, with a fire place in there as well, so I really like that. Only problem is all the windows are single-pane and need to be replaced.

MrBigglesworth · 03-30-2006, 02:03 PM

I don't know what things are like in Oklahoma, but if you don't have to pay a buyer's agent then you should definitely go for the single-party agent. No downside to it.

My gut tells me he wouldn't accept a $52k offer, he would lose money on the deal. Holding costs are probably very low for him, so he could hold out for another offer for months. If you are sure that this house is the one, I would start higher. If you have other options and don't mind potentially losing the sale, it doesn't hurt to make a low offer first.

vex · 03-30-2006, 02:21 PM

Yeah, they rejected $52K, stated $59,500, AS IS.

House built in '55, AS IS, don't think so.

Countered with $56.5K, still not AS IS, of course.

Also, supposibly when it first went on the market, they were offered $58K, which they rejected. We'll goto $59K, but AS IS, and such(they said no even to a termite inspection, but no one will ever get money lended to them without a termite inspection), just kinda scares us away.

GrantDawg · 03-30-2006, 02:23 PM

Quote:

Originally Posted by vexroid

Yeah, they rejected $52K, stated $59,500, AS IS.

House built in '55, AS IS, don't think so.

Countered with $56.5K, still not AS IS, of course.

Also, supposibly when it first went on the market, they were offered $58K, which they rejected. We'll goto $59K, but AS IS, and such(they said no even to a termite inspection, but no one will ever get money lended to them without a termite inspection), just kinda scares us away.

Yup. That means something is wrong and they don't want you to know what it is. Saying no to a termite inspection should be a no-go.

stevew · 03-30-2006, 02:23 PM

Yeah, might be a good idea to look elsewhere if they are big on the AS IS.

Franklinnoble · 03-30-2006, 02:25 PM

Quote:

Originally Posted by stevew

Yeah, might be a good idea to look elsewhere if they are big on the AS IS.

Is the house being sold by an estate?

stevew · 03-30-2006, 02:27 PM

Quote:

Originally Posted by Franklinnoble

Is the house being sold by an estate?

No, it was a quick renovate flip, at least that's what i get out of his early post.

Franklinnoble · 03-30-2006, 02:30 PM

Quote:

Originally Posted by stevew

No, it was a quick renovate flip, at least that's what i get out of his early post.

Ah. OK. Yeah, then the "as is" stipulation is scary.

Homes sold as part of an estate are almost always "as is" because it is presumed that the seller doesn't have much first-hand knowledge of the home.

Insist on a home inspection, pest report, and, if applicable, a well and septic test.

JonInMiddleGA · 03-30-2006, 02:37 PM

"As Is" isn't, in & of itself, a terrible thing ... as long as you're completely aware of what "IS".

In this case though, given their reaction (and _especially_ given the bit about the termite letter), I wouldn't walk away from this house ... I'd run away.

Eaglesfan27 · 03-30-2006, 02:38 PM

Quote:

Originally Posted by JonInMiddleGA

"As Is" isn't, in & of itself, a terrible thing ... as long as you're completely aware of what "IS".

In this case though, given their reaction (and _especially_ given the bit about the termite letter), I wouldn't walk away from this house ... I'd run away.

Ditto. No chance I would buy without a termite inspection.

stevew · 03-30-2006, 02:40 PM

Quote:

Originally Posted by JonInMiddleGA

"As Is" isn't, in & of itself, a terrible thing ... as long as you're completely aware of what "IS".

In this case though, given their reaction (and _especially_ given the bit about the termite letter), I wouldn't walk away from this house ... I'd run away.

Buying this house would be like Giving Amare Stoudemire a 72 million dollar extension without first checking his knees. I'm sure you'd get screwed hard.

JonInMiddleGA · 03-30-2006, 02:44 PM

Quote:

Originally Posted by Eaglesfan27

No chance I would buy without a termite inspection.

Unless you're paying cash for the house, I don't think anybody will lend without one anyway.

FrogMan · 03-30-2006, 02:49 PM

Tom Hanks once bought a house just like that...

FM

MrBigglesworth · 03-30-2006, 02:53 PM

Quote:

Originally Posted by JonInMiddleGA

"As Is" isn't, in & of itself, a terrible thing ... as long as you're completely aware of what "IS".

In this case though, given their reaction (and _especially_ given the bit about the termite letter), I wouldn't walk away from this house ... I'd run away.

Bad advice. Like someone said, you can't get a mortgage without a home inspection and a termite inspection. So make the sale contingent on getting a mortgage from your particular mortgage company, which most contracts are anyway. As long as you hand them a pre-qual letter, which you should have anyway at this point, that shouldn't be a problem.

As-is in many markets just means that the seller will do no repairs, it's take it or leave it. So if you do the inspections and find something wrong, you just walk.

Eaglesfan27 · 03-30-2006, 02:56 PM

Quote:

Originally Posted by MrBigglesworth

Bad advice. Like someone said, you can't get a mortgage without a home inspection and a termite inspection. So make the sale contingent on getting a mortgage from your particular mortgage company, which most contracts are anyway. As long as you hand them a pre-qual letter, which you should have anyway at this point, that shouldn't be a problem.

As-is in many markets just means that the seller will do no repairs, it's take it or leave it. So if you do the inspections and find something wrong, you just walk.

They have already said no to a termite inspection, per vexroid. Therefore, I don't see how Jon's advice was bad.

MrBigglesworth · 03-30-2006, 02:59 PM

Quote:

Originally Posted by Eaglesfan27

They have already said no to a termite inspection, per vexroid. Therefore, I don't see how Jon's advice was bad.

Not having the deal contingent on a termite inspection and not allowing the termite inspection are two different issues. I had assumed from the "as is" that they were just talking about contingencies.

JonInMiddleGA · 03-30-2006, 03:02 PM

Quote:

Originally Posted by MrBigglesworth

Bad advice. Like someone said, you can't get a mortgage without a home inspection and a termite inspection.

Are you so desparate to disagree with me that you'll do so even when we said the same thing?

If the (wannabe) seller won't even allow a termite inspection, then do you really think they're going to agree to a contingency about any other inspection? Or did you decide not to read Vex's post either?

There's a definite difference between "As Is" and "they said no even to a termite inspection". The former isn't automatically a bad thing (which IS WHAT I FUCKING SAID), it's how we're buying next month ourselves. The latter is a very large red flag that either a) the seller knows there's very serious problems or b)the seller is a complete f'n idiot & doesn't realize that nobody is going to lend on the house without a termite inspection.

Or, maybe, c) the seller is trying to find someone stupid enough to pay cash in full AND agree to do so without any inspections whatsoever.

GrantDawg · 03-30-2006, 03:16 PM

Quote:

Originally Posted by MrBigglesworth

Bad advice. Like someone said, you can't get a mortgage without a home inspection and a termite inspection. So make the sale contingent on getting a mortgage from your particular mortgage company, which most contracts are anyway. As long as you hand them a pre-qual letter, which you should have anyway at this point, that shouldn't be a problem.

As-is in many markets just means that the seller will do no repairs, it's take it or leave it. So if you do the inspections and find something wrong, you just walk.

In some states you walk away without earnest money, though, if the loan does not get approved. There is no way I'd buy a house that someone refuses to let me inspect. That is just bells and wistles going up everywhere.

MrBigglesworth · 03-30-2006, 03:20 PM

Quote:

Originally Posted by JonInMiddleGA

Are you so desparate to disagree with me that you'll do so even when we said the same thing?

If the (wannabe) seller won't even allow a termite inspection, then do you really think they're going to agree to a contingency about any other inspection? Or did you decide not to read Vex's post either?

I disagree with you because you are frequently wrong.

Vex never said that the seller wouldn't allow a termite inspection. That very well may be the case, but that isn't what Vex said. You probably don't work as a real estate agent, as I do, or buy and flip properties, as I do, you probably haven't taken a hundred or so hours of real estate classes, as I have, so maybe you don't know the little ins and outs of the process.

Frequently sellers will keep contingencies out of the contract because such contingencies are so easy to abuse to get out of a contract. Also, many contracts can force the seller to pay for termite repairs, so they want to keep the termite inspection contingency out of the deal, so in case termites are found they can treat it cheaply on their own instead of paying an arm and a leg to a company. So it is not out of the ordinary for investors, as opposed to homeowners, to not allow those contingencies in their contracts.

However, a strong mortgage contingency will enable the buyer to still get the benefits of the inspection and termite contingency, while at the same time protecting the seller by keeping those clauses from being abused.

MrBigglesworth · 03-30-2006, 03:22 PM

Quote:

Originally Posted by GrantDawg

There is no way I'd buy a house that someone refuses to let me inspect. That is just bells and wistles going up everywhere.

I agree. I'm just not sure that they are totally disallowing inspections, or if they just don't want those contingencies in. I had assumed the latter because the former is dumb from the seller's perspective.

JonInMiddleGA · 03-30-2006, 03:23 PM

Quote:

Originally Posted by MrBigglesworth

but that isn't what Vex said.

Quote:

Originally Posted by vexroid

they said no even to a termite inspection

Typical agent ... you didn't listen to a fucking word anybody else said.

GrantDawg · 03-30-2006, 03:27 PM

Quote:

Originally Posted by JonInMiddleGA

Typical agent ... you didn't listen to a fucking word anybody else said.

Yup. I love that commercial with the RA taking the people to same type house they don't want over and over again. Exactly what every RA I've ever been involved with does. The one I used to buy this house was a friend, yet he still did it. He would never show me what we were looking for, only what he wanted us to see. I finally had to find the house on my own and then bring him in to finish the deal.

CraigSca · 03-30-2006, 03:28 PM

Quote:

Originally Posted by JonInMiddleGA

Typical agent ... you didn't listen to a fucking word anybody else said.

Where the hell's the LOL smiley?

MrBigglesworth · 03-30-2006, 03:30 PM

Quote:

Originally Posted by JonInMiddleGA

Typical agent ... you didn't listen to a fucking word anybody else said.

Jon, a typical real estate contract allows for the seller to let the buyer have access to the property to do any and all inspections that they want to do. I have not heard of a residential real estate contract that specificlly forbids inspections. Maybe that is what Vex meant, but as everyone has said, it sounds too dumb to be true. I think it is more likely that they don't want it to be contingent on a termite inspection. I also wouldn't be surprised if Vex didn't know the difference between a contingency and an outright denial, as most people don't understand the difference, and his agent (who hopefully is a single party buyers agent) may not have explained it to him correctly. So please stop acting like a prick, we are both trying to help Vex.

JonInMiddleGA · 03-30-2006, 03:50 PM

Quote:

Originally Posted by MrBigglesworth

(who hopefully is a single party buyers agent)

FINALLY ... we agree on something.

Quote:

So please stop acting like a prick

I know you are but what am I?

As for helping Vex, I'll tenatively agree that we both have that goal in mind.
Problem is, I believe you may be thinking too much like an agent & not enough like the buyer, which is most definitely where I'm coming from (see last paragraph).

There also may be some state-to-state differences coming into play here that would render both of us off-base. For example, the recently adopted standard contract in Georgia, the boilerplate one that is used for the majority of transactions, has a new & very different inspection clause than the one's I've seen before. Not only does it create a kickout clause for anything discovered in any inspection, but also creates an open-ended walkaway option for the potential buyer at the conclusion of the inspection. In other words, you can simply suffer from "offering remorse" and withdraw the offer without penalty at any time in the 10-15 day inspection window unless otherwise stipulated, regardless of whether the withdrawal is related to anything in the inspection. That's VERY different from the way things used to be here, especially where any earnest money was concerned.

Based on both past & very recent experience, it's VERY possible that either the seller's agent or the buyer's agent (or both) did a poor job of communicating the owner's response to Vex. But absent anything else to indicate a problem there, from a buyer's perspective, the reaction to the termite inspection is as a big a red flag as I've ever seen on any real estate deal.

JonInMiddleGA · 03-30-2006, 03:52 PM

Quote:

Originally Posted by CraigSca

Where the hell's the LOL smiley?

Sorry, didn't feel like I needed one.
Remember, I'm coming off of months of house hunting, right now real estate isn't exactly my favorite profession

Thankfully, at least we've had a good buyer's agent this time ... some of the seller's agents though ... whew. Major league brain damage, the kind that even had my agent shaking his head in disbelief.

Franklinnoble · 03-30-2006, 03:57 PM

Unlikeliest. Thread. For. A. Flamewar. Ever.

vex · 03-30-2006, 04:06 PM

I'll have to ask on a clarification on the termite ordeal. We're really not impressed with our agent, even though she's supposibly one of the top agents in the area.

JonInMiddleGA · 03-30-2006, 04:07 PM

Quote:

Originally Posted by vexroid

I'll have to ask on a clarification on the termite ordeal. We're really not impressed with our agent, even though she's supposibly one of the top agents in the area.

My personal advice on that subject is to always remember that the agent works for you, not the other way around. That's what seems to get twisted around too often for my taste. The phrase "I don't HAVE to do a motherfucking thing" came in really handy during our most recent transaction.

edit to clarify: The "don't HAVE to" refers to the really annoying tendency my agent developed to use the phrase "You have to do XYZ" when a more accurate & palatable phrase would have been "The seller wants you to X" or "I would like you to do X". The only thing I "have" to do is die eventually, everything else is pretty much optional and we just needed to clear up that little point.

03-28-2006, 11:12 PM	#2
Swaggs Coordinator Join Date: Oct 2000	I don't have a good answer for the first question, but have a suggestion for the second one. Get a number, in your head, that you are comfortable with. In this case, it sounds like you are willing to pay full price and would be happy with $56.5K. I think, that since it has been on the market for a month and a half, starting at $50-52K is a good idea. Since it has been on the market for nearly two months, there is little chance that another buyer will become interested in the 48-72 hour window you will be working in, so offering $50-52K will give you a chance to save some money, but more than likely, they will give you a counter-offer somewhere in between their asking price and what you offer and that should get you somewhere near the $56.5K range that you are looking to pay. If you want to play hardball and negotiate even further, you should be in a good position, as they will not want to lose a captive and capable buyer since the house has been on the market for a considerable amount of time. __________________ DOWN WITH HATTRICK!!! The RWBL Are you reading In The Bleachers?

03-29-2006, 01:10 PM	#4
JonInMiddleGA Hall Of Famer Join Date: Nov 2000 Location: Behind Enemy Lines in Athens, GA	I'd say your figures are about right, maybe go $53k on the first, hoping to end up somewhere between $56k-$57k. __________________ "I lit another cigarette. Unless I specifically inform you to the contrary, I am always lighting another cigarette." - from a novel by Martin Amis

03-29-2006, 01:55 PM	#9
KevinNU7 College Starter Join Date: May 2003 Location: Beantown	Ok seriously what does a $56k house look like? I can't even buy land around here for that price Edit: And by "around here" I mean New England __________________ Boston Bashers - III.14 - (8347) Last edited by KevinNU7 : 03-29-2006 at 01:56 PM.

03-29-2006, 02:24 PM	#10
stevew Hall Of Famer Join Date: Dec 2003 Location: the yo'	It all depends on location. You can get some nice spreads out here in the middle of nowhere for around 70K. If you want to buy a bit of a fixer upper, you can go in the mid-30s. Its basically location, there aren't the jobs in my area where you can make the big bucks. For 56K I'd think it's probably a pretty nice place for a starting house. If the market is similar to where i live. Last edited by stevew : 03-29-2006 at 02:27 PM.

03-30-2006, 02:37 PM	#30
JonInMiddleGA Hall Of Famer Join Date: Nov 2000 Location: Behind Enemy Lines in Athens, GA	"As Is" isn't, in & of itself, a terrible thing ... as long as you're completely aware of what "IS". In this case though, given their reaction (and _especially_ given the bit about the termite letter), I wouldn't walk away from this house ... I'd run away. __________________ "I lit another cigarette. Unless I specifically inform you to the contrary, I am always lighting another cigarette." - from a novel by Martin Amis

03-29-2006, 12:42 PM	#3
vex Grizzled Veteran Join Date: Jul 2001 Location: Tulsa	Just a bump from the 2nd page.

03-29-2006, 01:11 PM	#5
Crapshoot Grizzled Veteran Join Date: Dec 2003	I just want to know where I can buy a house for that price. Wow.

03-29-2006, 01:16 PM	#7
kcchief19 Pro Starter Join Date: Oct 2000 Location: Kansas City, MO	Question the first: Your choice with what you feel comfortable with. Personally, if I'm using a broker I want them to be a single-party broker -- that makes them a bit more free to offer advice and help you watch out for pitfalls. In essence, they are acting for you. A transaction broker is really more of a neutral agent. They will advise both the seller and the broker, but they owe no allegiance either way. They can't advise you that you're making a bad offer or help you spot flaws with the home or the contract. The only time I'd recommend a transaction broker is when you're dealing with a buyer/seller who doesn't have their own broker and you want someone who can handle the paperwork. If you're working with an agent, you want them to be working for you. Most of the times, agents will want you to sign this up front before they even show you a house because without the agreement you aren't bound to use them, but once the agreement is signed they are your agent for the properties they are showing you. As for the offer, I'd take a close look at what was done. If it was sold six months ago for $46,000 and is on the market at a 30 percent markup, there is something up. You say they repainted and recarpeted, but that's not worth $13,000. See if anything else was done -- new appliances, remodeling, eletrical work, roofing, plumbing, repairs, anything. If some other things were done, it's certainly possible. Maybe the house was simply in disrepair and they cleaned it up. Check out the other comparable sales in the area -- sounds like your agent already did. Take a look at them and see if you're in the ballpark. If your offer would make your house the highest priced on the block, you might want to reconsider your offer. It's one thing to see comparable prices, but I'd drive by the houses and see how they really compare to yours. Sounds like you're buying from a flipper, and if the agent is suggesting a transaction broker it sounds like they are selling it themselves. If that's the case, I'd definitely recommend the single-party broker, assuming the broker has no connection to the seller. You need someone who can offer you solid advice and not be helping out the seller who is sounds like they are trying to flip a quick buck. Good luck! Buying a house is hard and a PITA, but it's also sweet, sweet freedom!

03-29-2006, 02:54 PM	#11
scooper College Benchwarmer Join Date: Oct 2000 Location: Cinn City	Yeah, my wife and I watch those home flipping shows where houses not much larger than our own go for over $300,000 or $400,000. Ours would probably sell today for around $140,000 in Ohio. My wife works in HR and is involved in relocation for major hires. She is amazed at how many people make a killing by selling a home on either coast and moving into a comparable one in the midwest.

03-29-2006, 03:02 PM	#12
Franklinnoble Banned Join Date: Jul 2002 Location: Placerville, CA	Ugh... my place cost over $350,000, and it's a fixer. I wanna know where you're buying a $55,000 house. At this point, I could almost pay cash for that.

03-29-2006, 04:35 PM	#14
Cap Ologist College Prospect Join Date: Nov 2003 Location: Flower Mound, TX	Vex, I have a villa in Corleone you can have or a house at Port Senyn rent free

03-29-2006, 10:22 PM	#16
vex Grizzled Veteran Join Date: Jul 2001 Location: Tulsa	Well, it's a $60K house for a reason. It's fairly old(1955) and needs a good bit of remodeling:

03-30-2006, 02:03 PM	#23
MrBigglesworth College Starter Join Date: Dec 2004 Location: PA	I don't know what things are like in Oklahoma, but if you don't have to pay a buyer's agent then you should definitely go for the single-party agent. No downside to it. My gut tells me he wouldn't accept a $52k offer, he would lose money on the deal. Holding costs are probably very low for him, so he could hold out for another offer for months. If you are sure that this house is the one, I would start higher. If you have other options and don't mind potentially losing the sale, it doesn't hurt to make a low offer first.

03-30-2006, 02:21 PM	#24
vex Grizzled Veteran Join Date: Jul 2001 Location: Tulsa	Yeah, they rejected $52K, stated $59,500, AS IS. House built in '55, AS IS, don't think so. Countered with $56.5K, still not AS IS, of course. Also, supposibly when it first went on the market, they were offered $58K, which they rejected. We'll goto $59K, but AS IS, and such(they said no even to a termite inspection, but no one will ever get money lended to them without a termite inspection), just kinda scares us away.

03-30-2006, 02:23 PM	#26
stevew Hall Of Famer Join Date: Dec 2003 Location: the yo'	Yeah, might be a good idea to look elsewhere if they are big on the AS IS.

03-30-2006, 02:49 PM	#34
FrogMan Hattrick Moderator Join Date: Jan 2003 Location: Pintendre, Qc, Canada	Tom Hanks once bought a house just like that... FM __________________ A Black Belt is a White Belt who refused to give up... follow my story: The real life story of a running frog...

03-30-2006, 03:57 PM	#48
Franklinnoble Banned Join Date: Jul 2002 Location: Placerville, CA	Unlikeliest. Thread. For. A. Flamewar. Ever.

03-30-2006, 04:06 PM	#49
vex Grizzled Veteran Join Date: Jul 2001 Location: Tulsa	I'll have to ask on a clarification on the termite ordeal. We're really not impressed with our agent, even though she's supposibly one of the top agents in the area.

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