Zillow Advice: Buying Process - We're getting close to buying a home have set up a 2nd visit to meet with the seller

"So...... where do the dollars ...

Thu, 30 Apr 2009 18:38:00 GMT

"So...... where do the dollars come from from which the seller derives this "net" in most cases? That's right - from the dollars that the buyer brings to the closing table - usually in the form of a mortgage loan."

Sorry - unclear. I mean that the "net" is derived from what the buyer pays in ALL cases - and in most cases, that amount is financed with a mortgage. Thus, the buyer pays interest on those commission dollars since they were rolled into the amount of the buyer's mortgage.

"Contrary to what K101 said, ...

Thu, 30 Apr 2009 18:27:00 GMT

"Contrary to what K101 said, commissions are paid out of the sellers "net" and have nothing to do with your mortgage or interest."

Boy, you are brainwashed. I am going to say that and give you the benefit of the doubt against being an outright liar or stupid.

So...... where do the dollars come from from which the seller derives this "net" in most cases? That's right - from the dollars that the buyer brings to the closing table - usually in the form of a mortgage loan.

Please don't give me the song and dance about how the listing agent contracts with the seller and then they pay the buyers' agent out of the goodness of their heart, blah blah. The buyer is the only one bringing money to the transaction from which agents are paid a percentage off the top, and it is the buyer that pays - regardless of who the listing agent is "contracting" with.

Matthew, does Conn. require ...

Thu, 30 Apr 2009 18:02:00 GMT

Matthew, does Conn. require a "sellers disclosure"? If they do, and it's similar to the one we have in Ga., all the items that are part of the transaction are listed. Personal property being sold by the seller are listed separately on an addendum with dollar amounts listed.

Also, all know defects in the home and on the property are disclosed, with repair actions or non actions with dates disclosed.

If Connecticut doesn't have that, I would rely on a good residential home inspector, a property survey at least a 14 day "due diligence" period to throughly check out the property.

While I believe most sellers will tell you the truth, there are some who will conceal both major and minor defects, which is one of the many reasons to use your realtor and his/her experience to the max.

Contrary to what K101 said, commissions are paid out of the sellers "net" and have nothing to do with your mortgage or interest.

If you sign a buyers agency agreement, the agent will only be protecting your interests, even though his/her services are paid by the seller, so your out of pocket is zilch, nada etc..

Good luck, buyers today have "all the cards on their side of the table", so enjoy your advantage.

than you Michael that is ...

Thu, 30 Apr 2009 17:46:00 GMT

than you Michael that is great information, it's gas heat so I don't have those furnace questions.

I think michael covered most ...

Thu, 30 Apr 2009 17:43:00 GMT

I think michael covered most of it..

- Are all appliances staying?
- Are window treatments saying?
- Age of furnace + fuel type (try to verify on furnace)
- How often the furnace was maintained (look for recordings on the furnace)
- Age of water heater + type of fuel
- Age of roof
- Does basement get water? (look for signs like white lines and dampness)
- Any problems with the foundation? (look for cracks)

Most of this should be covered in your home inspection, but it helps to do your own due diligence since the inspector wont usually ask the seller any questions and can easily over look a lot of things. Also make sure you get a recommended inspector and let them know you want a very detailed report.

Ask about window treatments, ...

Thu, 30 Apr 2009 16:44:00 GMT

Ask about window treatments, appliances, utility costs, any pending assessments, age of the appliances, age of furnace, age of water heater, age of roof, age of A/C unit, any warranties that might pass onto the new buyer.

You can also ask (if your interested) if you could purchase furnishings (which would have to be part of personal property addendum).

You can ask about schools, the neighborhood, the neighbors, parks, amenities. If you are unfamiliar with the city you can ask them about the city.

You can TRY to ask them about any moisture issues in the basement.

Make it a friendly visit, and don't drill them with endless questions or they might just show you the door. You might want to tell them the motivation for buying their home (growing family, you love the house, etc) Personalizing the visit can go a long way in favorably impressing the sellers, especially when there might be other buyers.

Good luck.

"Never mind that as the buyer ...

Thu, 30 Apr 2009 16:44:00 GMT

"Never mind that as the buyer an agent would have been free to you."

What about the mortgage interest that the buyer pays on the portion of their mortgage that is handed over as your commission?

REAs are not "free" to buyers.

This is not a FSBO and I ...

Thu, 30 Apr 2009 16:33:00 GMT

This is not a FSBO and I have a realto. I just want to be as best prepared as I can I have read the disclosure report and there is no issues, the visit it to primarily to get a better understanding of the boundaries of the property but again since I was going to have access to the seller I wanted to know if there is something I hadn't thought of since she/he have lived in the house.

I have to agree very much ...

Thu, 30 Apr 2009 16:05:00 GMT

I have to agree very much with what Minna says. Representation is free to a buyer so why not use a professional?
If it is a for sale by owner I would advise to hire a lawyer as well. They are usually priced very reasonable. And like Minna says, get everything in writing.
The questions to ask also depend on the type of mortgage you are having. Going with VA or FHA will bring some restictions with it.
I would probably concentrate on questions regarding the condition of the property etc. Window treatments are less expensive to replace then other things.......

I take it this is a FSBO. ...

Thu, 30 Apr 2009 15:29:00 GMT

I take it this is a FSBO.
This is exactly why people hire real estate agents to represent them. So an experienced professional who knows exactly what they are doing can handle all these details and PROTECT your interests in the largest financial transaction of your life. Never mind that as the buyer an agent would have been free to you.
But anyway...moving on...the owner should have a set of disclosures filled out for the property. Review it, ask questions, however keep in mind you shouldn't just take his word for it. The best way to gauge the actual condition of the mechanicals and structure is to have a thorough inspection. If you are writing an offer on this property, make sure to put in an inspection contingency. This will protect you. As far as window treatments, etc. there is also a form that can specify these. Regardless of what is discussed - ALWAYS get it in writing.
I would highly advise at the very least to hire a good real estate attorney to help you with this if you do in fact decide to pursue this property. Good Luck.