First Home

[DT86]

Hello guys and gals,

My girlfriend will be graduating nursing school this fall. We have been looking very casually for our first home together and she has been on my tail to get her a ring.

Some real nice folks that own property which connects to my family farm have bought another home that better suits them as the get a little older. They approached me about buying their home before it goes on the market.

One realtor has told them what he would list it for but they have not committed to him. They expressed that they understand how convenient it would be for me and would sell it for "much less" before it was listed.

I have known these people my whole life, they built the house 28 years ago and are nice folks.

This is a different league than the starter homes we have been looking at but is possibly a once in a life time opportunity to own a home that connects to our family farm.

So...

What do I need to know about buying a "for sale by owner" vs going through a realtor?

How can I establish a good price that is "much less" than what it would be listed at and everyone still feel that it is fair?

Thanks

 

[murphy1244]

Hello guys and gals, My girlfriend will be graduating nursing school this fall. We have been looking very casually for our first home together and she has been on my tail to get her a ring.

.....That posted before I meant to, stand by......

Good Luck! :thumbsup:

 

[DT86]

Good Luck! :thumbsup:

Thanks bud.

Read it again, it posted before I got done so I edited it. ...inaudible mumbling about fat fingering on the iPhone...

 

[dave1949]

You may have to pay something, but you could each (you and the current homeowner) hire an appraiser that works for a bank. That's something that would happen anyways if you finance it. Hopefully, you could split the difference of the two appraisals and everyone would be happy. On the other hand, if they come in with way different values, it could muddy the waters.

Unless they really want to do you a favor, what you and they stand to save by selling it to you unlisted is the typical realtor's fee which is a percentage of the actual selling price.

Existing homes here are selling for less than it would cost to build them new. Looking at it that way, if you like the house it is probably a better value than building new.

Better go ring shopping. :laughing:

 

[General Lee]

You could hire a realtor for you, and he/she will do some price comps (compare) with similar homes in the area. Compare that with the price the sellers are gonna give. I would still do the home inspection and such. Thats about all I got on the issue, good luck!

 

[murphy1244]

Go on the Auditors web site and find the current value, Cut 30% of that for under current value. The Bank will want a contract that you can get from a office supply store. I bought my first house that way and the Bank wrote up the contract. You should split the closing costs.

 

[dave1949]

Go on the Auditors web site and find the current value, Cut 30% of that for under current value. The Bank will want a contract that you can get from a office supply store. I bought my first house that way and the Bank wrote up the contract. You should split the closing costs.

That's the tricky part--how did you translate "much less" into 30% off?

If you mean the tax auditor's site, the assessed tax value can vary greatly from market value in different states. I have no idea how VA does it.

 

[mark02tj]

I cant really help with the "right price" question but I will address a bit of the For Sale By Owner (FSBO). I sold a house without a realtor and it was pretty painless. I went to a real estate lawyer and he drew up the contract. Most real estate contracts are pretty standard stuff so your lawyer will probably have one on his computer. When you apply for the mortgage you will need to give them a copy of the contract. They will pretty much take over from there. They might ask you if you have a preference for the title agency to handle the closing. You probably wont have a preference so you can let them choose or ask to see which agency might have different costs. Your attorney might have a preference for this as well. Dont be afraid of the process and dont be afraid to pay for a couple of hours of the attorneys time.

You might be able to find a real estate person to "run comps" (comparables or comparisons) on similar properties in your area to help figure out a price. Find someone that will do that for a fixed fee. DO NOT hire a "buyers agent". A buyers agent is going to charge a comission/fee based on the price of the house. Sites like zillow.com might be able to help as well.

If you can find comp information that includes the original asking price and the final selling price of a home it might prove helpful to you in coming to an agreement with your neighbor. For example it might be that the average house sells for 96% of what it was listed for. So if the neighbors realtor (that they havent signed with yet) tells them that the house will list for $200,000 then, on average, it should sell for $192,000. Then there is the realtors comission of 7% ($13440) which means the neighbor would expect to net $178,560. If they offer it to you for less than that - they are great neighbors. Between 178 - 192, they are saving you some money while putting a bit more in their own pocket - a win-win.

Hope this helps and doesnt confuse things for you. GOOD LUCK and all the best to you and your soon to be fiance!!

 

[2458n]

mark02tj has hit the main points. Is there someplace close for your loved one to work? How about schools Etc. If you need to resell will the house appeal to a wide market of buyers? The thing that is attracting you is the same for every real estate deal location, location, and location. Make sure this is a joint deal between you and the girl. Best wishes.

 

[mjcountrybumpkin]

Call me DT. Just done same thing last year. Very painless.