My daughter is 24 and looking to purchase her first home. She hasn't contacted any real estate agents in her area, just looking through real estate ads, craiglist ads, etc. If you were selling your home and was approached by her would you consider her as a potential buyer? She doesn't feel like she is being taken serious enough with her searches. I'm wondering if she doesn't need to talk with an agent.
I think she should really pre qualify for a loan, so it gives her an idea what she can afford to purchase.
Our daughter was also 24 when she bought her first home. Pre-qualification and a good experienced agent can really help her be taken seriously.
I agree with Conrad that she should use an agent and prequalify. I probably wouldn't take her seriously otherwise.
So if she has a home already in mind but it's not listed with an agent will the agent be sort of a laison between her and the owner?
Not impossible???, but very dependent on the affiliation the agent has with his/her company and it's guidelines/rules.
I think any new buyer owes to themselves to find a good agent whom has the experience to guide her through some education steps in home buying. So many considerations for a first time buyer.
She can also talk to a loan officer at a local bank or credit union for some pre qualification advice and numbers. I think this step is VERY important, before even shopping and certainly before considering making an offer on a house.
You have gotten very good advise from people that are experienced in Real State, now for my own perspective, If I see a very young girl at my door without an agent, I would also not take her seriously, Obviously, how does she know if she can buy my house? Or me thinking that she is just a looky look, to simply see the inside of my house.
Those are considerations that she need to understand,that are prerequisites in buying property.
Also, I don't know where you live, but her first home might not be a house. Besides financial, has anyone discussed - type of property? Age of property, location? Amenities?
I would once she gets her financing in order to go to a few open houses. I would also suggest with a parent in tow just to help deflect the on-site agents. This way she can check out - town homes, condos, single family, etc. Each has its advantages and drawbacks. When she is more focused on her specifics, then work with an agent to help find the best match. Nothing is more frustrating than a buyer who has no idea what they want or where they want to be.
Good luck and keep us posted.
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Thank you for all the good advice.
She has been to see the banker and has a letter of guarantee but we don't really feel that she should have to let the seller know this if she's just looking. She is definitely looking for property with acreage which narrows down her search considerably. Do you just go and ask a realtor to help you? I would think they would be busy enough trying to sell the properties they have listed.
Surely you have some friends who can recommend a good Realtor from their home buying experiences. Realtors list homes and also sell homes, even those they didn't list themself. Your daughters agent should be working for your daughter as a Buyers Agent.
The buyers (to be matched up with sellers) are what the realtors are looking for, so they should welcome your daughter with open arms.
But an experienced/successful realtor also knows how to educate a buyer, not just to sell them a place, but to hopefully help them choose wisely and be pleased with their purchase in the future.
When we have wanted to buy a home we have gone into a real estate company and told them what we wanted. The chances of getting a good realtor like Conrad describes is les. Than 50/50. Nothing against the good realtors but there are a lot of bad ones out there. They usually don't listen to what you say or you get the feeling they are not telling you everything.
If this happens just go to a different agency and try again. If the first one calls say you are working with "so-so" now. One time we went thru 4 different agents before we found one we liked.
The best way to find a realtor is thru the recommendation of someone who has purchased or attempted to purchase recently.
She probably can ask some of her coworkers for an agent recommendation. Her dad feels like some real estate agents may be too pushy.
Good news is that she has had 2 follow up conversations w/ the seller and will be able to view the house soon.
Unfortunately what metwo said is true. Shopping for a realtor can often be as important as the home shopping.
That is why I suggested the "experienced and successful" realtor rather than a random inexperienced one, just starting out? Realtors or buyer's agents who get good referrals from past customers are often top sellers in a firm. Ones that we used often can ask the right questions, point out things a buyer might not be aware of, and help to educate a buyer on possible issues to be aware of in the future?
If your daughter likes this property (and it is currently for sale by owner), they can sometimes negociate a lower percentage for handling the paperwork and closing, often paid for by the seller. Although other arrangements can be made and sometimes split between the buyer and seller.
(I do hope she looked at many other properties before falling in love with this one?)
Just my opinion but it can be kind of like finding the right life partner. You have to shop around some before you can make a safe judgement on the good ones vs the not so good ones and what to look for (and look out for).This message has been edited. Last edited by: conrad,
LOL...you are so right with a large amount of stress and maintenance in both !! I'll post updates when I have them. As I've told her if this doesn't work out something else will.
Ga.Peach, this is not any advice, just an observation of this area. I have found in the past many times that single women aren't taken seriously around here.
It's that old standard that all women should have a husband or man doing all their financially dealings for them and the vehicle repairs.
It happened has happened to me in several instances with both property purchase and vehicle repairs in several different towns. They don't think a woman knows anything about either and certainly not about how a vehicle works.
I had to go out of my area to a larger town for financing when I purchased our property since DH & I weren't married yet at that time. But I got the deal done with a lot of persistence and no realtors involved. I just made an offer, presented my guarantee of financing and we set up a closing date with attorneys for both present. Mine was vacant land and I had already walked the entire 16+ acres and knew it would suit our purposes. And mine wasn't the only offer nor was it for the most ** but I hit the bricks and got the financing before anyone else could prove they had it. I spent a LOT of time both on the phone and sending/receiving faxes.
"The soil is the source of life, creativity, culture and real independence." David Ben-Gurion
You're so right GaKaren. Working in a male dominated field I see it all the time. I believe this is why DD has had a tough time being taken seriously on some of her searches PLUS in the area she is looking there is such a high demand for such properties. We should know more this week.
Please clarify, you said that she already has some sort of prequalification with a bank, and thinks that she has to show that to any seller that she looks at their homes ? Because that is not so. she doesn't have to show anything unless she is willing to put on an offer. Otherwise she can simply say that she is looking to buy a home in the are, and that she alsready has been prequalified.
DH's daughter bought her first home at 24 and she did get prequalified first. Then she used a real-estate agent, but most importantly, she had her father come along with her at the signing just to make sure she wasn't taken advantage of. They would have charged her an extra $1500 if he hadn't caught a mistake.
Oh and he also checked out the home too, before an offer was made.
Life is a great big canvas...throw all the paint on it you can.
As zone9alady mentioned, we also looked at and advised our daughter's first home purchase. I was also there with her at the closing. She was (and is) a smart girl and also did "her homework".
I don't think it a bad idea for anyone to have multiple advocates on their side when purchasing or selling an expensive item like a piece of real estate, especially for the first time. (Young or old)
Lots of good advice one more suggestion is if Dad/Mom are going to be part of the process then they should be looking along with the daughter. Too often I have seen young adults lose the house they wanted because they were taking advice from people who didn't know or understand the market.
Good luck to your daughter.
It is good for her to learn the process, visit open houses, and get the feel of the neighborhoods. However, do not give her name
and contact info to anyone as Builder reps represent the seller and so does the Realtors holding the open house on a resale.
I would ask friends, people at church or work if they can recommend a good Realtor. A good recommendation is valuable.
Then call the agent and ask her to be her buyers' agent. The Realtor will recommend several lenders for her to get pre-qualified.
Remember USDA zero down loans and ask more about them with the local lender. There are boundary lines of each city. Visit the website and you may see the boundary map for your city. Just a thought
Back to the showings... The agents I know usually don't waste valuable time showing homes unless they know their client is ready willing and "able", so pre-qual before showing is a good thing. Nothing worse than falling in love with something, that is not reachable.
RELThis message has been edited. Last edited by: real estate lady,
Rker321, yes she has the letters from the banks. We've told her she shouldn't have to show the letters until an offer is made. She just feels she hasn't been taken seriously with a few of the sellers and had asked whether or not she needed to mention the letters. However, the seller of the property she has been eyeing this past week hasn't questioned her at all. He's been very accommodating.
Z9, her dad went with her to the banks and I'm sure he will be with her at the closing too! We will also go with her to look at the house and property before any final decisions are made.
Conrad, it is a feel good feeling to know you have raised a smart and independent child. DD has been searching now for over a year and she feels this is the one! DH and I both have raised concerns that she hasn't thought about and she's very appreciative for our input.
Lakelark, I've personally gone with her to view a few of the properties and DH is on "stand-by" just in case the right one comes along. She very much wants and values our advice.
Real Estate Lady, I'm pretty sure the USDA loan is obtainable. She and DH are more involved with the loan qualifications process,more than I, but I'm certain this one was mentioned if the property is eligible(?). Just wonder if the government shut-down might affect it?
Be sure to keep us posted!
And tell your DD, we are all pullin' for her in her successful choice and purchase.
I would not draw up any offer until you have a Realtor or attorney check the public records, court document from the local court, et. on the house of choice for the following reasons..
...to make sure the party she is talking with actually owns the property. There have been cases here where prospective buyers, without representation, have given escrow deposits to
non-owners when viewing the house, thus deciding to make an offer. The party who meets at the property may be a scam artist, a trespasser, a dishonest neighbor, etc. or Land contract/agreement of deed/rent with option to buy parties who do not have the power to sell.
...that the house is not in foreclosure, thus
turning a normal 30 day or so closing into a possible 3 to 6 month closing. Plus the sellers' lender (mortgagee) has to approve sales price agreement and may not do so. In addition, the seller has to qualify for the short sale status, which is a whole different process.
3) IRS liens, contractor liens...and the list goes on.
I have met buyers through the years , who happened on a FSBO or decided to go FSBO, with horror stories, including one story of a occupant who was a caregiver for a elderly
lady who was senile and owned the property, and the caregiver took off with the buyers $5,000.00 deposit. There is another situation where a scam artist was finding vacant houses, running a for sale ad in Cr****list, breaking in the back door, welcoming prospects in the front door, and collected all kinds of deposits..then fled the state.
If you dont consult a Realtor from the very start -at least consult an attorney. We do everything in our power to protect buyers and sellers from harm.
Just a head's up.This message has been edited. Last edited by: real estate lady,
Thank you REL. We are definitely going to contact our lawyer if this property looks promising.
ETA....I am going to advise my daughter if this property doesn't work out to find a real estate agent!!! Her mama's nerves just can't take it This message has been edited. Last edited by: Georgia Peach,
As long as the shut down lasts the USDA loans are a no go.
I'm curious, why does your 24 y/o daughter at this point in her life want a house with acreage?
Does she really understand the maintenance? The extra insurance and other issues that arise from having more than a small lot? Top it off at that age a concern about her security?
I recently had a listing out in the middle of the boonies. Lovely land, no visible neighbors, etc. I was a nervous wreck whenever I did open houses! On top of it, because the property was unoccupied, but on a security system, it was vandalized several times. The house was not in a bad area.
Just curious why she feels she needs such a burden at this time of her life.
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I personally know a young, very young woman who bought a home/acreage horse farm all on her own! She has a very good job. Don't know whether she had an agent or not, but it was a small community where everyone knows everyone.
Hope your daughter finds what she loves...
Thanks Lakelark, I surmised this was the case. Hopefully for ALL of America this situation will be straightened out quickly!!
Charming, she was raised on a farm with animals and she misses it especially her horses! She doesn't see it as a burden nor do I. It isn't necessarily the boonies (your word, not mine, I prefer G*O*D's country) that's vandalized. We have lived in the country for 30 plus years with no security problems whatsoever. It's just our way of life....quiet and peaceful
Thanks CJO, we have an appointment to view the property so hopefully I'll have an update soon.
Well USDA may of course be delayed with the shutdown..but hopefully that will resolve and she can look into the program. Even FHA possibly..but the well and the septic have to be 50 ft. apart.. in effect the property has to qualify FHA. 3.5% down..
I still think she should contact a Realtor for protection-buyers' agent! She can find a good one through referral. A Realtor can open up her marketplace as well...to introduce more property, quite possibly, than she can find on her own.This message has been edited. Last edited by: real estate lady,
Your daughter is very smart in wanting acreage. You should always buy the most land you can afford, the house can always be improved, remodeled, added on to etc. You can't add more land if you are locked in a subdivision with small lots.
I think living out here in the woods is much safer than living in the city, crime is almost nonexistent.
Since she is a country girl at heart, she would never be happy in a tight knit subdivision.
Life is a great big canvas...throw all the paint on it you can.
Update!! DD likes the property. DH and I went with her. We felt the price was a bit high being a 20+ year old house. Some updates but nothing high end like hardwood flooring, tile, and granite countertops, roof has some age on it (12 years), some noticeable areas on ceiling where old leaks had occurred but in process of being painted. Cosmetic but still costly repairs down the road, e.g. roof repair, pool, etc. Although financing is available, because of her credit score being low because of lack of credit history bankers are advising her to reapply in 6 months for a conventional loan which will save her money in interest in the long term. The bankers have been wonderful explaining to her the credit process and ways to increase a credit score which is all new to her and us too! We have pretty much determined the FHA loan w/ PMI isn't what she needs. She is in no hurry so in 6 months if this home is still available she may contact the seller again. In the meantime she will keep searching. It's (the perfect property) out there SOMEWHERE According to the seller he will list the home with a real estate agent by the end of the month if he hasn't sold it on his own.This message has been edited. Last edited by: Georgia Peach,
As you can see, getting pre-qualified on the front end would have helped. 640 is the minimal score for FHA. A Realtor would have suggested a "home inspection contingency" to address repair issue solutions at sellers expense. Even if a contract is drawn up AS IS - you "CAN"ask a seller to repair and or replace..."to go forward". Some do, some don't.
Remember accept, reject or counter offer is not always about price, it can be about repairs.
However if they are unwilling to do repairs.. can go back and work.. to get price reduced.
Best she get a Buyers' Realtor to protect her interest. While buyers go direct to sellers' thinking the price is lower because of commission...some seller price the house "emotionally"...thus overpriced. A Realtor will pull "solds" for you that are comparable to subject, thus giving you a pretty good idea of value.This message has been edited. Last edited by: real estate lady,
REL, what's the difference in what she did and being pre-qualified? She was qualified for a loan according to 3 banks but the interest rate wasn't as good as it could be if her credit score was over 700 (it's like 690 I think?). She's doing all the right things, credit wise, but what's against her is the timing! She is less than a year in to her job which is in the field her degree is in which the banker said was a real positive! No credit references. Doesn't seem to really matter either than she has enough for 20% down it still is all about the credit score!
I'll be interested in a realtor's take on the property! Although it is nice property I can't see the price being increased!This message has been edited. Last edited by: Georgia Peach,
Well, then she was pre-qualified...what's worse having to pay a little higher interest rate now...or possibly spending more sales price later if the case is rising prices in your area.
Call some Realtors..and ask this question - "are prices rising or dropping in our area". Then you will know what to do.
You don't have to give anyone you name or number to get that answer. If they insist..h*ll tell them Sue. (LOL)
Realtors give out free advice all the time, in hopes of future business. So do title companies and mortgage companies. It is there for the asking.This message has been edited. Last edited by: real estate lady,
Thanks REL. It's been a real education for DH and me trying to help her! The banker says 6 months down the road 1/2 percent could be the difference in the interest on the loan ALTHOUGH he didn't explain the amount of money which would be involved. After doing some figuring her boyfriend says it would be close to a 50,000 difference in the life of the loan. But there again your question about the sales price vs.the higher interest rate is something to think about.
Georgia, I have been reading this thread with great interest. But, I want to know: is there a reason your DD is NOT working with a buyer's agent?
From my 25+ years of experience buying and selling homes, I would never consider going it alone. I always had a buyer's agent representing me when I was looking for a home to buy. And, of course, a different agent who represented me when selling a home.
Personally, as a seller, I would not deal with anyone, much less a sweet but inexperienced 24 year old, who would come to my house unsolicited, without an agent.
When I was looking for my very first home, I knew nothing, which is why I needed a buyer's agent. The agent also gave me the confidence to pursue a home sale by helping me to navigate my way around the confusing financing procedure.
Imagine how much less aggravation you and she might have if there were a top-notch buyer's agent in the picture. Just saying...This message has been edited. Last edited by: aychihuahua,
Thanks Aychi. This is a FSBO property and DH contacted our banker who in turn contacted the banker in DD's area. Actually he doesn't work for just one bank but several and he has guided DD through the process of who pays for what, inspections necessary, title searches, etc. What would a buyer's agent do that he hasn't? We own several properties and have never dealt with a buyer's agent. I've never heard of such a person until this thread. Not saying that she doesn't need one but why would a buyer's agent be needed when she has a banker and a lawyer? It hasn't been too terribly aggravating just time consuming.
OK, perhaps I misinterpreted your previous posts. I was getting the impression from these posts that this was just one hassle after another. Lawyers cost money; is yours doing this work pro bono? I ask because the buyer does not pay a fee to a buyer's agent; that is paid by the seller at closing.
ETA: I just realized that some states require a real estate lawyer to handle the documents and closing, etc. Perhaps that is the case where you live.
PS I am not a real estate agent. This message has been edited. Last edited by: aychihuahua,
Oooohhh I'm not sure about the Lawyer question but I do know we haven't closed on any real estate without one and it certainly wasn't pro bono ! Do lawyers do that ?? You didn't misinterpret my posts because DD has had two (maybe three) sellers who didn't call back or respond to an e-mail and she was getting rather discouraged. The answers given here pretty much answered my original question. She's a young girl, no representation (at least not in that city), and asking about property in the 200 to 300 thousand dollar range. Not sure I'd take her serious either but I would be cordial. I didn't know the info about the buyer's agent fees being paid by the seller and will pass this along to DD. Thanks again for giving me your advice. I appreciate it so much!
The buyer's agent is a real estate agent representing the buyer in a real estate transaction. Their only interest is helping the buyer through the transaction. The agent will prepare the offer/contract to purchase when the client is ready, also help schedule inspections and depending on the state will work with the lender and closing attorney.
In a FSBO situation they can have a one time showing agreement with an agent or the seller can sign an agreement to pay the commission arrangement.
The agent takes some of the burden off the purchaser and helps the buyer get the best price possible. An experienced buyer will have a pretty good idea of comps in the area and will know if the price is too high and will not appraise. Always a concern. A good agent earns her commission and then some.
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Thanks Charming for the info. How is the cost for a buyer's agent determined? Is it a certain percentage of the real estate transaction or a set fee determined by the agent?
GA Peach, the real estate agent can be paid in several different ways.
I think to clarify - a buyer's agent is a real estate agent. A seller's or listing agent represents the seller in the transaction and with the seller and listing agent will determine in the listing contract what percentage commission the seller will pay at closing and how that commission will be split between the two agents.
If you're purchasing a FSBO it can work several ways, get the seller to pay 1/2 the commission that would normally be charged to your agent or you can pay the agent yourself.
Keep in mind when you get a mortgage the appraiser will know whether or not it is going to have a commission paid and will view the comps accordingly. If the house is over priced and they are not paying a commission, it might not appraise for the contract amount.
A real estate agent will be able to discuss with your daughter what has sold recently in the area to help determine what is a good price for the property.
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It is a fallacy that some buyers think it is always better to buy direct.
Quite frankly, a buyers' agent can save you money by not letting you overspend. Many FSBOs can be attached emotionally to the property, the Realtor helps them get unattached,fsbos want reimbursement for improvements, the Realtor will tell them approx.what their home is worth and fsbos are relucant to to hear about comparable properties sold in the neighborhood, and rather talk about what homes are "listed" for (not sold comp!). How can the buyer be sure they are making a sound investment by listening to the fsbos' advise- they can't-- they need professional representation.
In addition you may be dealing with a seller who has part interest,
or a future interest through agreement for deed or land contract, and do not even have ownership through deed to pass on to your daughter. A buyers' Realtor researches this through public records.A buyers realtor is very "red flag" oriented...from ownership to value to repairs. Here's a for instance, repair wise, you daughter likes a lovely farmhouse, and buys it through owner..fsbo
and near closing learns this...the well is within 50 ft of the septic. That's a .. No go for FHA.
Realtors know these things....and our job as a buyers' Realtor is to take the brunt of the problems, watch out for pitfalls, keeping the buyer stress free as possible....from beginning to end for a smooth tranaction.
Curious-why can't the boyfriend..go in on the loan.This message has been edited. Last edited by: real estate lady,
Thanks REL. At my prodding, she spoke with a realtor yesterday and the first property this lady mentioned was in a subdivision and the 2nd was way too much money! I asked DD, "was she listening to what you want??" Both properties DD had already seen in the MLS ads.
and to answer your question...
Curious-why can't the boyfriend..go in on the loan.
They aren't married nor do they live together.This message has been edited. Last edited by: Georgia Peach,
IMHO Your daughter should dump the one she met with and move on. She obviously was not listening. I would never ever show a buyer a property outside their stated price range without their permission. I also take very seriously their list of preferences.
I don't know how large your local real estate market is - but if there are agents who work primarily in rural properties - that is her best bet for someone who understands the area and what she wants. They are also familiar with what is available and what is worth any where near what is being asked.
BTW - all real estate agents have access to the same data base.
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I will give her (the realtor) the benefit of the doubt and say this was a telephone conversation and they do have a face to face meeting set up sometime soon. Maybe she was just throwing some properties out there for DD to think about but neither was what she has in mind.
In our area of Georgia there are real estate agents whose primary listings are land with acreage (rural), commercial properties and foreclosures. These agents are whom we have dealt with acquiring our properties. Maybe it's all about location but we seem to be having a problem with finding an agent in her area who deals with these type of properties. She is nearer Atlanta.This message has been edited. Last edited by: Georgia Peach,
Many farm properties, larger tract property may not qualify for FHA, thus may USDA. Keep in mind. A subdivision in the countryside because of utility availability- may be the winning reason she told you about the property in the subdiviion.
I agree.. open lines of communication with the Realtor. She may have pointed out those properties because of budget...as well.
Also remember do not call off signs--those Realtors represent the seller. Make a note of the address and call your buyers agent..I would recommend. There is most likely already a buyers agent split within the MLS offered commission, so don't think you may be paying more...to have a buyers agent.
Ask lots of questions!This message has been edited. Last edited by: real estate lady,
Of course the boyfriend can go on the loan, and so can you, or anyother person that wishes to invest with her.
But she will really need an atty for this one. don't do it on her own.
Partnerships are not unsual, when you are buying property.
Thanks REL. DD says this lady stressed to her that if she finds property to call her first. DD thinks as this is HER (the realtors) job so I'll have to explain the reasoning behind the statement. This lady is an acquaintance from DD's church. I had to smile though when DD was describing this woman and her attire, hair, her short petite stature, etc. She said, "mama she is always dressed to the nines at church so I'm not sure if she's going to want to traipse through a horse pasture with me" ... LOL ... We will see
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