Author Topic: First Time Home Buyer Need Advice  (Read 1640 times)

vuedoolor

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First Time Home Buyer Need Advice
« on: April 24, 2017, 03:25:12 AM »
Hi, all I'm a first time home buyer and been looking for a house for a few months now and finally came across a house that met me and my wife's minimum requirement. Sad thing is that our offer got shot down and our realtor and I never even received noticed about whether or not our offer was rejected or accepted. The only way we found out that our offer was rejected was because the house appeared in inspection contingency status in the MLS. I REALLY REALLY REALLY REALLY liked this house and really wanted it. It was perfect! It had a new roof, new AC, appliances, and furnace etc.

When we first saw the house I told my realtor we wanted to offer $10k above asking price, which she told us we probably should just start off with the listing price first and go on from there since we can always resubmit offers. So then I went with her advice and offer listing price of $135k then 2 days later it was due to close all offers so we had to offer our highest and best offer and this is when I told my realtor that we needed to be more aggressive with our offer. That day right before the due date we offer $135k with increments of $500 to a max of $145k should anyone go over $$135k. We also opted for paying all closing costs and earnest money of $1500.

My only concern was that the seller agent never provided disclosure to my realtor or us and we also did NOT sign the Arbitration Disclosure and Residential Real Property Arbitration Agreement. What I really want to know is:

Did we make the right move? Should I of done something differently?
What can I do next time to ensure my offer is accepted?

Here's more info:

I'm preapproved for $170k conventional loan and qualify for both lift grant and MN housing down payment assistance.
This was the house: https://www.zillow.com/homes/for_sale/Saint-Paul-MN/house_type/2140311_zpid/20313_rid/3-_beds/134000-140000_price/498-520_mp/pricea_sort/45.045752,-92.921677,44.833352,-93.290749_rect/11_zm/

The house was only on MLS for a few days and already has an accepted offer..... back to the drawing board....  :*(

Oh forgot to mention that our realtor just recently got her real estate license too so she doesn't have a whole lot of experience but she's a good person that we trust. She's also the spouse to one of our family member which is how we got in contact. At first, I didn't want to use her because she has no prior experience but felt a bit obligated because she's helped us in the past and I feel like I really owe her one. I also know that she's really in it to help us and doesn't care about whether or not she gets any commission. We went through one realtor before her and that realtor although was more aggressive with offers and has more experience in our area was not really someone I can trust (too many little red flags).
« Last Edit: April 24, 2017, 03:40:29 AM by vuedoolor »

marty998

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Re: First Time Home Buyer Need Advice
« Reply #1 on: April 24, 2017, 06:14:46 AM »
Sad thing is that our offer got shot down

You didn't offer enough

Our realtor and I never even received noticed about whether or not our offer was rejected or accepted.

There could have been 250 offers...do you expect the seller to contact each and every one of them to tell them the bad news?

I REALLY REALLY REALLY REALLY liked this house and really wanted it. It was perfect! It had a new roof, new AC, appliances, and furnace etc.

You didn't offer enough.

When we first saw the house I told my realtor we wanted to offer $10k above asking price, which she told us we probably should just start off with the listing price first and go on from there since we can always resubmit offers. So then I went with her advice and offer listing price of $135k then 2 days later it was due to close all offers so we had to offer our highest and best offer and this is when I told my realtor that we needed to be more aggressive with our offer. That day right before the due date we offer $135k with increments of $500 to a max of $145k should anyone go over $$135k. We also opted for paying all closing costs and earnest money of $1500.

You didn't offer enough, and you trusted your agent against your better judgement.

Did we make the right move? Should I of done something differently?

The right move would have bought the place - you need to offer more (I'm sensing a pattern here)

What can I do next time to ensure my offer is accepted?

Take a guess :)


Here's more info:

Oh forgot to mention that our realtor just recently got her real estate license too so she doesn't have a whole lot of experience but she's a good person that we trust. She's also the spouse to one of our family member which is how we got in contact. At first, I didn't want to use her because she has no prior experience but felt a bit obligated because she's helped us in the past and I feel like I really owe her one. I also know that she's really in it to help us and doesn't care about whether or not she gets any commission. We went through one realtor before her and that realtor although was more aggressive with offers and has more experience in our area was not really someone I can trust (too many little red flags).


Ah, this explains it all.

In realestate, you need a bastard who is emotionally divorced from everyone.

My boss scares the living shit out of me on a day to day basis. She will make you piss your pants just by looking at you and is therefore perfect for negotiations. Let your family friend spin her training wheels on others...

good luck for next time :)

vuedoolor

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Re: First Time Home Buyer Need Advice
« Reply #2 on: April 24, 2017, 06:50:09 AM »
umm.. okay... "You didn't offer enough" once is enough no need to repeat it so many times. NO need to be a dick about it

Your advice which is obvious didn't help much but thanks for trying
« Last Edit: April 24, 2017, 06:52:48 AM by vuedoolor »

marty998

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Re: First Time Home Buyer Need Advice
« Reply #3 on: April 24, 2017, 07:00:29 AM »
At the end of the day, that's exactly what it comes down to. It's a negotiation and the seller is out to extract as much as they can from all buyers.

Honestly you had the right idea to blow the competition out of the water if you had the capacity. From experience, I've missed out on so many deals by not offering enough (as if to ram home the point once more).

Just don't over complicate it, there's a million people out there who will tell you there's secrets and what not. It's not true, everything always comes down to price.

Drifterrider

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Re: First Time Home Buyer Need Advice
« Reply #4 on: April 24, 2017, 07:10:19 AM »
OP:

Houses are likes busses; there will be another one shortly.

If you are in a sellers' market your two choices are to pay big or wait.  Do not become emotional.  Do not fall in love with any house.  It is a business decision, or at least it should be. 

If your realtor is not meeting your needs, get another realtor.  A well qualified realtor should have sales comps for any house they show you.  Not listing price, not asking price.  SALES prices. 

You mentioned something about not having seen the disclosures:  not uncommon before agreeing to a price but never sign to buy without them. 

Biggest of all:  Caveat Emptor.  If it feels wrong, it is.

YttriumNitrate

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Re: First Time Home Buyer Need Advice
« Reply #5 on: April 24, 2017, 08:53:25 AM »
That's a nice looking house with fancy stainless steel appliances and tile work. However, since you have four kids, a house with 1970s harvest-gold colored appliances and a second bathroom at the same price would be my preference.

redbird

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Re: First Time Home Buyer Need Advice
« Reply #6 on: April 24, 2017, 11:27:05 AM »
Remember that your agent is just giving you advice. You don't have to follow what they say as far as offer amounts goes. It's ultimately up to you how much you want to offer. And if you don't feel like they're being helpful, you can get a different one.

I just bought a house in a hot seller's market. I really liked this house and didn't want to lose it for various reasons. I also wanted those appliances in it (seller was originally going to keep them). The full asking price was a great price for the age/condition/comps in the area as it was. I offered full asking price and I wanted the seller to leave the appliances behind for me. The seller received other offers but I suspect they were below asking price, as my offer was accepted by the sellers as it was.

sequoia

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Re: First Time Home Buyer Need Advice
« Reply #7 on: April 24, 2017, 11:43:57 AM »
umm.. okay... "You didn't offer enough" once is enough no need to repeat it so many times. NO need to be a dick about it

Your advice which is obvious didn't help much but thanks for trying

At the end of the day it is all about price - how much you are willing to pay for a property. Not sure what kind of advice you expect to get here?

Yes, it does not help that you are first time home buyer working with a newbie agent, but ultimately it is your decision how much you willing to pay, regardless what your agent say.

mustachepungoeshere

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Re: First Time Home Buyer Need Advice
« Reply #8 on: April 24, 2017, 03:23:41 PM »
I can't believe how terrible the photos are.

Poor quality, poorly lit, poorly framed. No external shots, and no wide angle internal shots to give better context and perspective inside.

I agree with Marty that your real estate agent dropped the ball, but if I was the seller I would be disappointed at how the house was presented for sale.

Papa bear

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Re: First Time Home Buyer Need Advice
« Reply #9 on: April 24, 2017, 03:32:07 PM »
umm.. okay... "You didn't offer enough" once is enough no need to repeat it so many times. NO need to be a dick about it

Your advice which is obvious didn't help much but thanks for trying

That was the advice you needed.  Take it from those of us who were outbid on many properties.




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Meowmalade

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Re: First Time Home Buyer Need Advice
« Reply #10 on: April 24, 2017, 04:27:29 PM »
Instead of offering to pay all closing costs, I would have moved that value into your max offer amount.  Psychologically, it feels like more to the seller when it's part of the "house value".  That said, you might still have been outbid... I guess you'll find out after they close.  Sometimes people will list at under market value to spark a bidding war, so you have to look at comps to figure out how much you want to bid and ignore the asking price as a reference.

Don't worry, another right house will come along!  There's always another if you're patient.


adamcollin

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Re: First Time Home Buyer Need Advice
« Reply #11 on: April 25, 2017, 11:59:27 PM »
For a house like that you need to offer more.