First Time Homeowner -- Need Advice!

[bmoeller]

I've experienced that before..... We've got a lot of stuff boxed up in Rubbermaid containers downstairs now.

Nothing I had boxed up was damaged. Just some freebie carpet remnants that got soaked good. Were really musty underneath.

 

[HEMI®Dart]

AMassaro,



Is it true that if I were shopping for a house, picked one that I wanted to see but it was in a predominately Vietnamese or Black neighborhood, it would be illegal for you to say something?



This house I am interested in:



http://www.realtor.com/FindHome/Hom...84649DA5412C&snumxlid=1066922819&lnksrc=00002



I thought I read something along those lines. I couldn't believe it.

 

[AMassaro]

AMassaro,



Is it true that if I were shopping for a house, picked one that I wanted to see but it was in a predominately Vietnamese or Black neighborhood, it would be illegal for you to say something?



I thought I read something along those lines. I couldn't believe it.

I can answer questions as honestly as possible. But there is a sort of gray line we cannot cross. In other words, if a couple of, let's say ethnic heritage "Z" were to come to my office and ask me to show them homes in a predominantly ethnic neighborhood "Y", I can say nothing and show them the homes. I have had people say I want to live with this ethnicity and try to follow their wishes, but it is a fine line. Very hard for myself and others in this business to follow exactly. I hope that when I'm showing houses, the people can distinguish for themselves if it is the type of neighborhood they are interested in.

 

[AMassaro]

I can tell you that is the Englewood neighborhood of Chicago. I think you can look up the rest online. Are you seriously considering purchasing something like this, or are you just pulling a fast one?

 

[HEMI®Dart]

I can tell you that is the Englewood neighborhood of Chicago. I think you can look up the rest online. Are you seriously considering purchasing something like this, or are you just pulling a fast one?

Thanks for answering my question.





I was just pulling a fast one. I tried to find the most beat-up house in Chicago. :-laf



I thought this page might have been yours, but you are in Illinois.



http://www.beachresidence.com/

 

[AMassaro]

You might have found one of my relatives



I'm Anthony (Tony) and live in Chicago... You're good though... :-laf

 

[HoleshotHolset]

Why wouldn't you want to use the services of a Realtor, especially since they are free.

I respectfully disagree with that statement.



Nothing is free. In one transaction (two realtors in a buyer's agent and seller's agent role) someone is shelling out ±6% of the purchase price of the property in the form of a sales commission which is split between the agents.



I'm not knocking Realtors, but wanted to point out that their services are far from free.



Matt

 

[AMassaro]

I respectfully disagree with that statement.



Nothing is free. In one transaction (two realtors in a buyer's agent and seller's agent role) someone is shelling out ±6% of the purchase price of the property in the form of a sales commission which is split between the agents.



I'm not knocking Realtors, but wanted to point out that their services are far from free.



Matt

I respectfully disagree... The commission is decided upon long before a buyer steps into the transaction. And that is why I was recommending to use a realtor. It cost the buyer nothing to use the services of a realtor. The money is taken from proceeds at closing from seller. And I have never been involved in a transaction at 6%. Most around here are at 5% or less. And then we split it at say 2. 5% each. Then my company takes it's transaction fee of around 8%. Then I get 60% of what's left over. I work extremely hard for what little money I recieve. And most people don't understand that fact. Dozens of phone calls and setting up showings. Then sometimes your client doesn't show up or ends up going the FSBO route (for sale by owner). Then you get deals that fall apart after months of negotiations. I'd have to say that 80% of the work that I do goes for naught. I can go on and on. Last year I had 4 deals die before closing for various reasons. Three months of work and no money. I almost quit, but I refuse to be a quitter. So when we do score a commission, it is money worked for... Not trying to rant, just want to set the facts straight.

 

[HoleshotHolset]

What do you find in my post that is inaccurate other than the regional differences in the overall commission percentage?



Around here, most agents (or their companies... ) like to charge a Buyer's Agent fee - luckily my agent waived that fee so I had no out-of-pocket expense for my buyers agent's services when I bought my first house. She pocketed 3% of the purchase price - we both made out.



The intricate details you added concerning how much of that 5% or 6% commission actually makes it to the Realtor doing all the work is irrelevant to the home buyer or home seller. If a real estate transaction involves a Realtor, someone will have to cover that cost... it isn't free. That's the bottom line I'm trying to portray.



I can appreciate how much work that goes into a real estate transaction and my sole reason for posting was to illustrate that there will be additional costs incurred when using a Realtor. For a lot of people, using a Realtor is the only way to go... to each his own.



Matt

 

[AMassaro]

I have a hard enough time working with and finding buyers. I have heard of agents charging buyers certain fees for working with them. Not around here. Too much competition.



My point is the buyer pays nothing. It is free for them. Commission has already been established and is paid for by seller. That is my bottom line I'm trying to portray.



I guess we'll have to agree to disagree.

 

[HEMI®Dart]

Tony,



While you are here.



I researched this but could not find and answer.



Can we still withdraw 401K funds penalty free for a first time home buyer?

 

[AMassaro]

I honestly have no idea. You better talk to a tax expert on that one. Sorry.



If your credit is excellent (I mean really good) and you have the income to back it up, there should be lenders who will give you 100% loans for the purchase of your home. You will pay PMI and I don't always recommend it, but if this is the only way to purchase property, I don't see a problem. I always tell my first time buyers to seriously consider purchasing rental properties and living in one of the units for a few years, building up equity while hopefully living there for much less or for free. Saving money all the while and building equity, then using both to purchase a single family home and keep the rental property. Do this every few years and keep adding rental properties. It's not a get rich quick scheme, but it is a will make you wealthy easier than any other method, other than winning the lottery.

 

[JAG1]

I personally would not buy anything inside nor near city limits. I discovered a long time ago that it's a lot better further out than in town. Your permits are easier, cheaper, and you'll have more room to build a nice shop or big garage in the future. Plus you won't have a homowners association threatening to put a lien on your property, destroying your credit, just because you want to store your truck or camper on the driveway for a week.



If you find a nice arceage, you can always live in your rv or a singlewide while you build or remodel. Don't be put off by the work, it's the quickest way to really increasing your net worth in a big chunk by fixing up properties or building your own home. And it's very satisfying once you do your first one.



Btw, the least expensive building permit for a new home is a dwelling replacement permit, and it's fun to tear down the old one too.



I'm over 55 yrs and will do another one soon by myself too

 

[HEMI®Dart]

If you don't mind me asking....

Tony,



What's the most expensive house you have ever sold?



2-3 Million?

 

[AMassaro]

I wish... Most expensive home was just under 500k. Most for an industrial type warehouse was 860k.

My past personal investment properties have made me far more than all money made selling for others. Unfortunately everyone thinks their property is worth a million bucks now, so good deals are impossible to find. The most money is made, in my opinion, when you make the purchase at the correct price (lowest).