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Replies (6)
- B Mike West
- Contributions:240
You should have some confidence in the Realtor what you have chosen. Ask that person your questions and voice your concerns.
If you are looking at Condo complexes, it may be prudent to select on that has been approved by the FHA for financing. (Go to the FHA web site for lists of approved complexes.) They are not easy to find but will be a safer bet than one that is not FHA approved. The FHA certification process takes many factors into account-is the HOA properly funded, is maintenance being performed when needed...and many other important items. FHA approved complexes will qualify for FHA loans, so more potential buyer/borrowers can purchase there. Condos can be difficult to buy since lenders require a condo cert. and often use the information provided in that certification to deny a loan for dozens of reasons.
When making a purchase decision, ALWAYS think about what you are going to have to do when you want to sell. If buyers can easily qualify for financing you will have less trouble finding a qualified buyer down the road.
Good luck in your search.
If you are looking at Condo complexes, it may be prudent to select on that has been approved by the FHA for financing. (Go to the FHA web site for lists of approved complexes.) They are not easy to find but will be a safer bet than one that is not FHA approved. The FHA certification process takes many factors into account-is the HOA properly funded, is maintenance being performed when needed...and many other important items. FHA approved complexes will qualify for FHA loans, so more potential buyer/borrowers can purchase there. Condos can be difficult to buy since lenders require a condo cert. and often use the information provided in that certification to deny a loan for dozens of reasons.
When making a purchase decision, ALWAYS think about what you are going to have to do when you want to sell. If buyers can easily qualify for financing you will have less trouble finding a qualified buyer down the road.
Good luck in your search.
- Laura Byrne, "Laura Byrne"
- Contributions:1
Hi, I'm not familiar with agency law in Florida, but here in Maryland, if you have a Buyer's Agency contract with your Realtor, she or he is bound by that agreement to represent your best interests. The agent owes fiduciary duty to you, not anyone else. Personally, my business is built on referrals so I treat each client as if they were family or a close friend and do everything I can to make sure they are getting the best deal possible for the situation, and what they really want. However here are some extra precautions you can take just in case, or for some extra peace of mind:
1) Include an appraisal contingency. Even if you're paying cash, I always recommend an appraisal. Make sure your agent includes an appraisal contingency in the contract. That way, if your property appraises for lower than the sales price you can include a clause allowing you to back out if the seller doesn't agree to lower the price. Also, rest assured that the appraisal needs to be ordered by a third party as even the lender is prohibited from choosing the appraiser nowadays.
2) Research public records, police reports, and talk to neighbors.
3) Conduct your own market analysis. Ask your Realtor to send you ALL the listings in whatever zip code you are buying in, that are either active, under contract or have sold in the last 6 months. Be sure to compare apples to apples - looking at photos, taking condition (or is it a short sale or foreclosure) into consideration. Online auto-generated value computations, while they sometimes are in the ballpark, aren't customized enough at this time to really give you a true estimate.
Best of luck!
1) Include an appraisal contingency. Even if you're paying cash, I always recommend an appraisal. Make sure your agent includes an appraisal contingency in the contract. That way, if your property appraises for lower than the sales price you can include a clause allowing you to back out if the seller doesn't agree to lower the price. Also, rest assured that the appraisal needs to be ordered by a third party as even the lender is prohibited from choosing the appraiser nowadays.
2) Research public records, police reports, and talk to neighbors.
3) Conduct your own market analysis. Ask your Realtor to send you ALL the listings in whatever zip code you are buying in, that are either active, under contract or have sold in the last 6 months. Be sure to compare apples to apples - looking at photos, taking condition (or is it a short sale or foreclosure) into consideration. Online auto-generated value computations, while they sometimes are in the ballpark, aren't customized enough at this time to really give you a true estimate.
Best of luck!
- hpvanc
- Contributions:2570
I share your dilemma. I'm not comfortable trusting that someone paid on commission that only gets paid IF a deal closes can protect your best interests when it comes to due diligence. There are just too many conflicts of interest.
I like your idea of consulting with an appraiser, if your agent is someone you know well and have observed how they work through multiple transactions you could propose that you pay them for their due diligence work outright and they rebate the full buyers commission (if legal in SC) to you if you buy. Unfortunately MLS rules and the common practices make it difficult if not impossible to negotiate the buyers agent pay as part of the purchase contract.
Good luck.
I like your idea of consulting with an appraiser, if your agent is someone you know well and have observed how they work through multiple transactions you could propose that you pay them for their due diligence work outright and they rebate the full buyers commission (if legal in SC) to you if you buy. Unfortunately MLS rules and the common practices make it difficult if not impossible to negotiate the buyers agent pay as part of the purchase contract.
Good luck.
- Angie Boggeman, "angie boggeman"
- Contributions:469
I am assuming that you will be writing an appraisal contingency. That is what they are for. If your agent has only expressed moderate interest in you and your house search process, maybe you should be reconsidering your representation. Purchasing a new home is a huge investment and it is understandable that you are nervous. Try talking to the other owners in the area and have your agent run ALL of the comps in the area, sold, expired, withdrawn, cancelled, pending and actives.
- Ofe Polack, "Ofe Polack"
- Contributions:1417
The dynamic of relationships fascinates me! You either trust the competency of a buyer agent, or you don't. You need a committed buyer agent, that exhibits more than moderate interest in fulfilling your goals. I would interview other buyer agents, until I find a Top Agent, that I can trust based on his/her experience. When I write an offer I always add: "This property must appraise on/above this offer, otherwise the offer will be considered null/void and the escrow deposit will be returned to the buyer in its entirety". The best of luck!
- khcable
- Contributions:31
Thank you all for the great idea about the Appraisal Contingency. Is there a trade association of realtors that is trusted and wide spread, as a source of names for Appraisers in my area? Does an appraiser have to be licensed and have some special designation of having passed certain courses?
Thanks again for this helpful advice.
khcable
Thanks again for this helpful advice.
khcable
How a buyer can get the "Scoop" on a prospect
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