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Arzakon posted:Any reason you are looking to buy without an agent? If Canada works like the US, if the buyer has no agent, the selling agent will just take the full 6% commission rather than having to split it 50/50 with a buyers agent. There is no reason to not have a buyer's agent in the US. I guess I was under the impression that the sellers agent would be more willing to take a lower offer, knowing that they wouldn't have to split the commission at all... In any case, there are a couple of houses being sold privately that I'm interested in looking at, so there are no sellers agent to begin with in these instances.
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May 4, 2011 16:07
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greasyhands posted:Texas ranks 3rd in the nation. http://dallasdirt.dmagazine.com/2010/10/05/texas-property-taxes-third-highest-in-nation-percentage-of-median-value/ Those numbers are state level only I guess (or maybe Dallas area, the article doesn't specify) as I live in El Paso and the municipal add-ons here are killer and significantly higher than the 1.81% listed in that article. I get to pay for all the illegals to go to school and take their kid to county hospital ER when he has a runny nose (I'm not mad about it, that's just the reality of El Paso property taxes), and we have one of the lowest median incomes of any major city so the rate has to be higher to have a functioning city. I'm at exactly 2.67% of my homes assessed value (which is about 20K less than market). The biggest chunk goes to the local school district, and you can't really complain about educating kids. I'm in Bexar County, around San Antonio.
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May 4, 2011 16:58
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Kashwashwa posted:I guess I was under the impression that the sellers agent would be more willing to take a lower offer, knowing that they wouldn't have to split the commission at all...
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May 4, 2011 18:04
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Dik Hz posted:Generally speaking, having someone who knows the local market very well, has a ton of relevant contacts, and is trained at negotiation is worth the 3% mark-up. Having a realtor can be useful to help with paperwork and questions, but no one should be under the illusion that their buyer's agent is working to get them the lowest price possible on the cheapest home that they need. When you pay more for a house, they earn a larger commission.
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May 4, 2011 19:04
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And buyer's agents sure as hell don't want to put in six months of work so that you can get the lowest price possible. Even though waiting is almost always in your best interest.
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May 4, 2011 19:16
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Lyesh posted:And buyer's agents sure as hell don't want to put in six months of work so that you can get the lowest price possible. Even though waiting is almost always in your best interest. Great agents are super rare, my mom knows a really good one, but she's spent years cultivating a fantastic word of mouth reputation and keeping lots of buyers and sellers in the pipeline. You can take your time and be a great agent when you're not worrying about getting that next deal so you can pay your bills. Keep the pipeline full and you'll start averaging a couple closings a month. It's still an erratic income, but you can average it out if you try.
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May 4, 2011 19:41
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For an agent, the urgency to make a quick sale is far higher than the urgency to get you to spend more. Consider that their 3% comission might be (say) six thousand dollars (on a 200k house). If they normally work for three weeks for that money, but they can get you to make an accepted offer in two weeks, then they're effectively going to earn 50% more per week during that overlapped week (the one in which they take on a new client and get to work for them). That's a far higher premium than if you wind up offering $230k instead of $200k on a house (which only gets them $900 more). For a buyers agent, then, they have an incentive to get you to make a generous bid that will be quickly accepted, regardless of what that price might be. For a seller's agent, they are actually incented to get you to lower the price to attract a quick bid, though! Even if the lower price means they get $200 less on the commission, an extra week cut off the total time working for you is worth far more to them. When shopping for a good agent, finding someone who does not pressure you into making quick decisions is key. When my wife and I bought, we wound up shopping for houses for over four months; we spent a few hours with our agent about three weekends out of four, plus a few hours on the occasional evening, throughout that time. At no point did he try any tactics to get us to hurry up. And when we were figuring out our offers on places, he said that he was actually not allowed to recommend a bid. Dunno if that's a law in California, or just a policy of the agency he was working for, but he was adamant that it was against the rules for him to tell us what he thought we should bid on a house. Based on that experience, I'd say: if your agent is telling you to hurry up and bid on a house this weekend (prices are rising! interest rates are rising! The market is going fast, hurry up!) I'd be thinking about switching agents.
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May 5, 2011 00:43
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Buckwheat Sings posted:I'm thinking of buying a condo in Santa Monica in LA. I have pretty much zero experience and this will be my first buy if I decide to go for it and continue. I have about 90k saved up for a down payment. According to Zillow and my family income level I guess my max would be 400k for a home though it'd be pretty tight especially if it hit something like 450k. So far there's about 2-3 listings on Zillow ranging from 390-450. Haven't actually done any legwork let alone check them out yet. Wow, there isn't much love for the condos here! They aren't all horror stories. I bought a Fannie Mae foreclosed condo in Dallas in fall 2009. This was the first time I bought a place -- and I'm in my 40s, so I've rented a long time. I'm pretty happy with owning so far. The neighbors are cool and there have been no mystery assessments and don't seem to be any of those planned. The HOA seems to be in OK shape financially, and doesn't have a lot of weird rear end rules. The units seem pretty bulletproof -- lofts with lots of concrete. HOA fees seem to vary a lot. I've seen places with fees of over $1,000/m. Those seem to be in high end older places. So they have a security guard there 24/7 and I hear that old elevators are a bitch to maintain? And that helps explain the HOA fees. Other places are much more reasonable. Resources that I used when looking around: condo.com -- you can search by zip code http://www.homepath.com/ Foreclosed Fannie Mae condos People have listed a lot of reasons on why not to buy. One of the reasons I finally bought: I'm nervous about inflation and/or the US Dollar losing a lot of its value. I've got a sweet 30 year loan at 4.125%. If interest rates go up, then I'm cooking with gas. Because if there is inflation you want to be an asset owner and a borrower. And hey, if the economy works out OK in the next few years, then I'd expect that would bode well for housing prices, too. But my own personal opinion is that our "leaders" (and their voting constituents) can't stand the tax increases and spending cuts it will take to get our finances in order. And it is also pretty cool to have a place where I can trick it out how I like it.
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May 5, 2011 03:33
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Kashwashwa posted:One of the best mortgage rates I've seen available in Canada, is coincidentally available only in the Province in which I live. Check out the break costs on that loan, especially if you're likely to move again within the next 10 years. They can be quite nasty and might negate the benefits of having the fixed rate loan. e: Should clarify this a bit more. If rates decrease, then you will have to pay the break fees and they can be large. Each lender will calculate them differently but it's always going to be something like break cost = loan amount * (change in interest rates * remaining length of fixed term). If rates increase then you probably won't have to pay much (if you have to pay any at all), but you still end up 'paying' because you're not getting the full benefit of having the fixed rate. Contra Duck fucked around with this message at 04:20 on May 5, 2011 |
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May 5, 2011 04:01
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Can we get a name for the first monthly payment where the "principle paid" exceeds the "interest paid" on my monthly statement? I'd like to get it printed on a cake to celebrate.
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May 5, 2011 04:13
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Inept posted:Having a realtor can be useful to help with paperwork and questions, but no one should be under the illusion that their buyer's agent is working to get them the lowest price possible on the cheapest home that they need. When you pay more for a house, they earn a larger commission. A good real estate agent knows what your house is worth and negotiates in good faith to get you the best deal. Losing 5% of a 3% commission is much less valuable than getting a referral for another 95% of a 3% commission. That being said, there are bad agents out there. But there are a lot fewer post-bubble than there were during the bubble. Do your research and find a good agent. And when you do, trust them.
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May 5, 2011 05:01
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Best unexpected part about buying a home: Scaremongering junk mail saying <your last name> FAMILY WILL DIE HOMELESS ON THE STREET!!! without their mortgage insurance Worst unexpected part about buying a home: 9-18 month international travel position opening up at work 
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May 5, 2011 06:42
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eddiewalker posted:Can we get a name for the first monthly payment where the "principle paid" exceeds the "interest paid" on my monthly statement? You're half-way there, so 'Hump Check'?
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May 5, 2011 16:06
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roadhead posted:You're half-way there, so 'Hump Check'? I don't think it actually means halfway. I remember once upon a time when I ran some calculations with different interest rates that if they were really low that point could happen within a few years of a 30 year mortgage.
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May 5, 2011 16:31
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Bastard Tetris posted:Worst unexpected part about buying a home: 9-18 month international travel position opening up at work Yeah we're opening a position up about an hour away from where I live... The options are move, or commute. Commuting sucks but I'm tied down to this house. I've only been in it 15 months so I'm not in a position to sell, and I'd also be on the hook to repay my first time home buyers credit. Just another drawback about being a homeowner. Lack of flexibility. I could rent the house out and break even, but I couldn't buy another one and going back to an apartment would suck skipdogg fucked around with this message at 16:47 on May 5, 2011 |
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May 5, 2011 16:45
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FISHMANPET posted:I don't think it actually means halfway. I remember once upon a time when I ran some calculations with different interest rates that if they were really low that point could happen within a few years of a 30 year mortgage. How about "cresting the interest". When I refied my loan to a 15yr, the amount for principal in my initial payment was already greater than the amount for interset.
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May 5, 2011 17:30
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FISHMANPET posted:I don't think it actually means halfway. I remember once upon a time when I ran some calculations with different interest rates that if they were really low that point could happen within a few years of a 30 year mortgage. Yea but you'll never get any phrase better than "Hump Check" EDIT : and on my 30 year at 6% it'll take like 19 years. heh roadhead fucked around with this message at 17:37 on May 5, 2011 |
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May 5, 2011 17:35
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Paying more interest than principal every month for 19 years? No wonder you guys think housing is a godawful investment.
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May 5, 2011 17:39
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Yep. DO NEVER BUY In a poker tournament, the last guy to be eliminated out-of-the-money is called the Bubble Boy (e.g., after him, every eliminated player receives a cash payout higher than the entry fee was for the tournament). So, Bubble Check might work? Alternatively; when granted stock options, the options which are worth anything are the ones that are "in the money" (because the option strike price is lower than the current market value, and therefore, you will earn a profit if you exercise those options). So, "in the money check"? Anyway, I bet it feels good! I've got a looooong time before I hit that point. e. Also, since we often seem to be in disagreement, I just wanted to say that I agree 100% with this: Dik Hz posted:Good real estate agents get the majority of their work from word-of-mouth. Every homeowner I know knows what every house in their neighborhood sold for. Do the math. I'm sure there's bad agents out there, but the assertion that most agents are just trying to pump their commissions is hyperbolic. Pretty much everyone buying or selling a house, knows someone who bought or sold a house, and asks them about their agent. It's how we found our agent. Agents who take advantage of their clients do not do well in the long run. Leperflesh fucked around with this message at 19:19 on May 5, 2011 |
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May 5, 2011 19:14
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greasyhands posted:Paying more interest than principal every month for 19 years? No wonder you guys think housing is a godawful investment. Purchasing real estate for the purpose of home ownership almost never works out to be a positive investment. The fact that people even couch the concept in terms of "investing" shows just how much wool has been pulled over the average person's eyes. The primary benefit is that you might spend less than you otherwise would renting.
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May 5, 2011 19:40
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archangelwar posted:The primary benefit is that you might spend less than you otherwise would renting. And the other intangible benefits like pride of ownership. I went into my home purchase knowing full well that it's not the best investment idea. I bought for the quality of life owning a home brings with it.
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May 5, 2011 21:53
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Anti-Hero posted:And the other intangible benefits like pride of ownership. I went into my home purchase knowing full well that it's not the best investment idea. I bought for the quality of life owning a home brings with it. Like what? I never quite understood that argument. If you are diligent about your renting and creative with decorating you can mold a place to a good 80% of what you might want. I made my apartment really cool looking by doing some cheap things that are reversible but added a lot to it. I'm proud of my apartment and showing it off to people.
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May 5, 2011 23:36
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Who wants to put in a bunch of money and energy into a place when they could get kicked out whenever the lease runs out? I knew someone who rented for 3 years, put up a mural in the front room, planted a bunch of things in the garden, and got kicked out one day because the landlord needed a place for her kid to live. I mean, sure, put some paintings up or whatever, but you're not going to be able to tear out poo poo carpet and put in tile or knock down a loving wall in an apartment. It's terrific for you that you like renting, but it sucks for some people for a number of reasons, most of which boil down to not being able to do the things you want (car repair, having a big pet, painting, changing flooring, gardening). If you don't want to do those things, then yeah, renting is perfect. Or if you can find a magical apartment where the landlord doesn't care, but good luck with that.
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May 5, 2011 23:57
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Chin Strap posted:Like what? I never quite understood that argument. If you are diligent about your renting and creative with decorating you can mold a place to a good 80% of what you might want. I made my apartment really cool looking by doing some cheap things that are reversible but added a lot to it. I'm proud of my apartment and showing it off to people. Rents are very high where I live for no other reason but a captive market (Alaska). If you have a pet, like I do, you are forced into living in the ghettoest of ghetto apartments in order to rent a one bedroom for under $1,000/month. Mind you this is Alaska, not some sprawling urban center where high rents are to be expected. Add in the fact that the property management agencies here have a reputation for screwing over their tenants and the result is most people buying homes here if they can afford them.
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May 6, 2011 00:07
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moana posted:Who wants to put in a bunch of money and energy into a place when they could get kicked out whenever the lease runs out? I knew someone who rented for 3 years, put up a mural in the front room, planted a bunch of things in the garden, and got kicked out one day because the landlord needed a place for her kid to live. I mean, sure, put some paintings up or whatever, but you're not going to be able to tear out poo poo carpet and put in tile or knock down a loving wall in an apartment. It's terrific for you that you like renting, but it sucks for some people for a number of reasons, most of which boil down to not being able to do the things you want (car repair, having a big pet, painting, changing flooring, gardening). If you don't want to do those things, then yeah, renting is perfect. Or if you can find a magical apartment where the landlord doesn't care, but good luck with that. While I certainly agree with you to an extent, you can mitigate this by renting properties other than just multiunit apartments. I have rented places where I could do pretty much all of these things, as long as we sought HOA approval for paint colors. In fact, owning your own place does not mean you can do all of the things you listed because of HOA or community laws.
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May 6, 2011 05:04
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In certain areas, you pretty much have to own if you want to have a dog or cat, and that's important to some people. If you have certain 'vicious' breeds like pit bulls (which are no more likely to attack humans than any other dog) then you are not renting, period, and you may be restricted from owning in certain areas due to legislation, HOA policies, or being refused homeowner's insurance.
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May 6, 2011 06:10
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Anti-Hero posted:Rents are very high where I live for no other reason but a captive market (Alaska). If you have a pet, like I do, you are forced into living in the ghettoest of ghetto apartments in order to rent a one bedroom for under $1,000/month. Mind you this is Alaska, not some sprawling urban center where high rents are to be expected. Add in the fact that the property management agencies here have a reputation for screwing over their tenants and the result is most people buying homes here if they can afford them. Okay none of that has to do with buying in general but buying in your area. That's fine. Don't write it off as can never do that with renting. moana posted:Who wants to put in a bunch of money and energy into a place when they could get kicked out whenever the lease runs out? It doesn't have to be a *ton* of time, but there are some fast cheap things you can do when you first move in, that amortized over at least two years isn't much work at all. Painting is one example (at the very worst you have to paint it back when you move). quote:I knew someone who rented for 3 years, put up a mural in the front room, planted a bunch of things in the garden, and got kicked out one day because the landlord needed a place for her kid to live. That's why I'd never rent from a small time landlord. I'm very very picky when I look to move, which means that I don't have to move too often because I'm always happy with my landlord. quote:I mean, sure, put some paintings up or whatever, but you're not going to be able to tear out poo poo carpet and put in tile or knock down a loving wall in an apartment. Yeah, you have to look at the floorplan and basics and be fine with those. quote:It's terrific for you that you like renting, but it sucks for some people for a number of reasons, most of which boil down to not being able to do the things you want (car repair, having a big pet, painting, changing flooring, gardening). If you don't want to do those things, then yeah, renting is perfect. Or if you can find a magical apartment where the landlord doesn't care, but good luck with that. quote:In certain areas, you pretty much have to own if you want to have a dog or cat, and that's important to some people. If you have certain 'vicious' breeds like pit bulls (which are no more likely to attack humans than any other dog) then you are not renting, period, and you may be restricted from owning in certain areas due to legislation, HOA policies, or being refused homeowner's insurance. I have found many such magical apartments. Just takes time and patience. And still don't see where any of all that said responds to the "pride of ownership" idea. I just don't really take pride in something differently based on how I am paying for it.
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May 6, 2011 12:54
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Chin Strap posted:Like what? I never quite understood that argument. If you are diligent about your renting and creative with decorating you can mold a place to a good 80% of what you might want. I made my apartment really cool looking by doing some cheap things that are reversible but added a lot to it. I'm proud of my apartment and showing it off to people. I hate apartments and good rental houses are hard to find around here. Rental houses that make sense financially vs just buying the same house are extremely hard to find, I've never actually seen such a thing. Apartment vs Condo is a different story, renting makes a lot of sense there, assuming you're ok with cheaper appliances etc. Your landlord is never going to buy you a top rated dishwasher or the most efficient AC unit. sanchez fucked around with this message at 14:04 on May 6, 2011 |
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May 6, 2011 14:01
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Konstantin posted:If you have certain 'vicious' breeds like pit bulls (which are no more likely to attack humans than any other dog)
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May 6, 2011 14:02
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Chin Strap posted:And still don't see where any of all that said responds to the "pride of ownership" idea. I just don't really take pride in something differently based on how I am paying for it. Because it's your opinion and no one is going to change it since you are happy with your current rental situation? In many states you have to vacate your rental home in as little as 30 days if it is sold. This can mean having to find a new rental house and being able to move into it in less than a month (and if you have kids within the same school district). It's just not something people want to ever have to deal with if they can avoid it. Pride of ownership is intangible. If you have attach no value whatsoever to it that's fine, but you have to be at least a little open to seeing how it does matter to many people.
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May 6, 2011 14:17
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Nocheez posted:They may not be more likely to attack, but pit bulls are capable of much more damage when they do attack. If you had the choice of a Pomeranian or a pit bull attacking you, which would you choose? Thats not really a fair comparison at all now is it? You could compare APBTs to something like a GSD or a retriever of some sort and make a better point. That said, I'd probably lean toward having to chose the pit, simply because they are as a rule much less likely to be aggressive to people, and are usually pretty easy to calm down.
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May 6, 2011 14:59
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Mutar posted:Thats not really a fair comparison at all now is it? You could compare APBTs to something like a GSD or a retriever of some sort and make a better point. That said, I'd probably lean toward having to chose the pit, simply because they are as a rule much less likely to be aggressive to people, and are usually pretty easy to calm down. I didn't want to start this argument here, because people somehow don't want to understand the physiological differences between breeds.
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May 6, 2011 15:12
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sanchez posted:I hate apartments and good rental houses are hard to find around here. Rental houses that make sense financially vs just buying the same house are extremely hard to find, I've never actually seen such a thing. I am not sure how you are making this comparison, but I doubt you are factoring in that different people have different needs. I have yet to find a purchasing option that made financial sense for me given that I change locations roughly once every two years. Just because a mortgage payment is less than a rent payment does not automatically make one more financially sound than the other. Rental houses are only harder to find because they take legwork on the part of the renter to find as opposed to the central management of large apartment complexes, but they are becoming increasingly common.
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May 6, 2011 15:39
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Nocheez posted:I didn't want to start this argument here, because people somehow don't want to understand the physiological differences between breeds. But you did, and still keep arguing, Good job. Dogs are dogs people, if a Pomeranian bites you as hard as it can on your balls it will hurt. Pit Bulls too. Great talk! On topic, I bought a house and regret it to an extent and am happy to an extent. I get to do what I want with it. It has added expenses, but I don't have immediate neighbors as I did in multi-unit apartments, (which was always a detractor because there are always noisy/inconsiderate neighbors). The note is the same as rent/a little less than what the multi units are going for. The Chicago area is expensive. We are in a great school district and despite the budget crises across the nation the town knows the schools keep property values relatively stable in the circumstances and won't cut their funding to the same degree other areas are. Foreclosures and short sales in the area are way below average compared to other towns and the population generally is college educated white collar and/or blue collar workers. If I was to rent in this area, it would cost me the exact same. I wouldn't have upkeep though. Upkeep sucks. It does. But we grew up being told to own a home. I kinda wanted to. Do I regret my decision? No. Do I think it was the best decision? Meh. Am I screwed over because of it? Not absolutely. Maybe a little.
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May 6, 2011 15:41
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Konstantin posted:In certain areas, you pretty much have to own if you want to have a dog or cat, and that's important to some people. If you have certain 'vicious' breeds like pit bulls (which are no more likely to attack humans than any other dog) then you are not renting, period, and you may be restricted from owning in certain areas due to legislation, HOA policies, or being refused homeowner's insurance.
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May 6, 2011 15:57
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Is it realistic to have an electrician, plumber and carpenter to do a home inspection for you rather than a "home inspector"? The only downside I could see to this would be coordinating of it, but that's not a huge deal.
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May 6, 2011 16:31
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Kashwashwa posted:Is it realistic to have an electrician, plumber and carpenter to do a home inspection for you rather than a "home inspector"? 1) Check out the inspection contingency language in your contract - there may be a requirement that it be based on a particular type of inspection of some sort. 2) Not sure if your lender will require a particular type of inspection as well.
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May 6, 2011 16:41
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Kashwashwa posted:Is it realistic to have an electrician, plumber and carpenter to do a home inspection for you rather than a "home inspector"?
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May 6, 2011 16:46
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sanchez posted:Apartment vs Condo is a different story, renting makes a lot of sense there, assuming you're ok with cheaper appliances etc. Your landlord is never going to buy you a top rated dishwasher or the most efficient AC unit. I want to get a lesser apartment after this lease so I can save more towards Do Maybe Buying but...these amenities!
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May 6, 2011 16:50
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Yeah, having a particular inspection from a 'home inspection agency' is what I was concerned I may need... guess I'll find out when it gets to that point. As far as cost, that's the part that I can't see being the case... a home inspection costs what $500? To pay three tradesmen @ $70 / hr for two hours each would still only be $420, and they'd look at a poo poo ton more than a home inspector would.
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May 6, 2011 16:51
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