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Old 02-18-2008, 01:22 PM
 
Location: Corinth, ME
2,712 posts, read 5,656,187 times
Reputation: 1869

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I know several of our "local" agents have been most forthcoming in answering questions... I have a couple...

What would an appropriate amount be to offer as earnest money on a $40k property in Maine? Here in NC, deals well in excess of $100k ('cause there ain't nothin' under that! LOL) often start with what seems to me to be a meager $500... $1000 is the highest I have seen, working in a realty office.

What role would a lawyer play in the deal, if I am not represented by an Agent?

What about inspections... I KNOW I am buying a real "project house"... from what I have seen from inspection reports on "good" properties here in NC, I am reluctant to even ask for inspections... the guys down here nit-pick to the point that I fear sending an inspector into this property might get it condemned instead! Convince me that this is something I should do... 'cause at this point I am expecting "the worst" so there I don't see much point.

thanks...
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Old 02-18-2008, 02:23 PM
 
Location: Waldo County
1,220 posts, read 3,935,289 times
Reputation: 1415
Ernest money deposit is the least that you can get the seller to accept. If I were selling a $40K house, I would not listen to an offer unless there was $1000 in ernest money, and that would have to be increased immediately to at least 15% once there was an agreed purchase price and a contract in place.

You want to have your own lawyer. Your lawyer will do the title search, and make sure that the contract, and closing is done appropriately and in accordance with the laws of the State of Maine. The lawyer will also arrange for title insurance and file the assorted documents in the appropriate registry of deeds and make sure that the transfer tax and any other fees are properly paid. Do NOT do a real estate deal without a lawyer.

Do not trust that the real estate brokers will know their "you-know-what" from a hole in the ground, because most do not. Trust the real estate brokers completely once you have your lawyer standing between you and them.
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Old 02-18-2008, 03:15 PM
 
Location: maine/alabama
169 posts, read 550,647 times
Reputation: 161
the lion is right on the money. the only small point i would add is, don't share a lawyer.
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Old 02-18-2008, 03:15 PM
 
Location: Corinth, ME
2,712 posts, read 5,656,187 times
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Quote:
Originally Posted by Acadianlion View Post
Do not trust that the real estate brokers will know their "you-know-what" from a hole in the ground, because most do not. Trust the real estate brokers completely once you have your lawyer standing between you and them.
<g> I have known some decent, knowledgeable and honest brokers... of course I also factor into that, the knowledge that they don't get paid unless there is a deal! LOL but I have also known a lot more who told me stuff that was just plain not true. I have seldom known one to say "I am not sure... let me get back to you on that..."

So, yeah, I get what you are saying.. but honestly, I have not had such terribly good luck picking lawyers. So far the ones I have needed to use have managed to get the job done, but I not not been impressed by their efficiency and competence.. but felt more like it was just a case where I had to have one to be taken seriously or something.... so that even a bad one would do.
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Old 02-18-2008, 03:16 PM
 
Location: Northern Maine
10,428 posts, read 18,691,590 times
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A small deposit gets the process going. If the broker is a Realtor there will be a preprinted area where the seller can request a more significant deposit. Sellers won't want to take a property off the market for weeks when the buyer has very little invested in the transaction.

In Maine the buyer has a right to choose any title lawyer he wants. Don't let a lender or the seller force you to choose an attorney you don't want. Closing costs vary greatly. On a $100,000 house, title search and closing can vary from $550 to $3,500. Shop around. Some lenders have huge added fees. A good Realtor can guide you through this mine field.

Always buy title insurance.
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Old 02-18-2008, 03:53 PM
 
Location: Corinth, ME
2,712 posts, read 5,656,187 times
Reputation: 1869
Quote:
Originally Posted by Northern Maine Land Man View Post
A small deposit gets the process going. If the broker is a Realtor there will be a preprinted area where the seller can request a more significant deposit. Sellers won't want to take a property off the market for weeks when the buyer has very little invested in the transaction.

In Maine the buyer has a right to choose any title lawyer he wants. Don't let a lender or the seller force you to choose an attorney you don't want. Closing costs vary greatly. On a $100,000 house, title search and closing can vary from $550 to $3,500. Shop around. Some lenders have huge added fees. A good Realtor can guide you through this mine field.

Always buy title insurance.
Thanks... this is an owner carry deal...
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Old 02-18-2008, 04:03 PM
 
Location: Northern Maine
10,428 posts, read 18,691,590 times
Reputation: 11563
Buy title insurance anyway. Any liens, back taxes or judgments follow the property, not the seller.
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Old 02-18-2008, 04:51 PM
 
Location: Free Palestine, Ohio!
2,724 posts, read 6,427,643 times
Reputation: 4866
Star, title insurance is insurance like the previous posters have indicated.
It will insure your purchase from "unseen" problems with the chain of title.
Unless you are a general contractor, I'd make sure you had an inspection to protect yourself from a failing septic, bad or old electrical issues, or any other hidden defects. Good luck.

Last edited by 7th generation; 02-18-2008 at 05:08 PM..
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Old 02-18-2008, 07:00 PM
 
Location: Florida/winter & Maine/Summer
1,180 posts, read 2,491,620 times
Reputation: 1171
Inspections: The problem with inspections is that the inspector has no real interest in the deal. Some inspectors do a drive by, and some do such a nitpicking job they may rob you of a sound home. My next door neighbor had an inspector check the house before he bought it. The inspector missed quite a bit. There was water damage around the windows, and wood damage in several areas of the house. The inspector missed all those problems. The owner was a bit miffed that his inspector missed these things. The house is only about 15 years old. All you can do is your level best. An inspector in Maine is probably an excellent idea if you are buying a house older than you are. Other than that, they may not turn up any more than what you can see with a good once over. Do not put all your eggs in a basket. Ask your inspector is he bonded and insured, if he sputters a bit, then most likely he is not. Remember, inspectors not bonded and insured can disappear like smoke. If you really want a guaranteed home inspection, get an inspection by a RPE or PE. Registered Professional Engineer that is. They have the training, and the backing to give you a certified inspection. The PE is not going to risk his license by performing less than an exhaustive home inspection. What is the price of peace of mind?

As everyone else has said, let me echo. buy title insurance, and make sure you are the beneficiary of the insurance, and not a financial institution.

Last edited by maine4.us; 02-18-2008 at 07:01 PM.. Reason: addition
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Old 02-18-2008, 07:02 PM
 
Location: Gorham, Maine
1,973 posts, read 5,226,483 times
Reputation: 1505
Quote:
Originally Posted by starwalker View Post
I know several of our "local" agents have been most forthcoming in answering questions... I have a couple...

What would an appropriate amount be to offer as earnest money on a $40k property in Maine? Here in NC, deals well in excess of $100k ('cause there ain't nothin' under that! LOL) often start with what seems to me to be a meager $500... $1000 is the highest I have seen, working in a realty office.

What role would a lawyer play in the deal, if I am not represented by an Agent?

What about inspections... I KNOW I am buying a real "project house"... from what I have seen from inspection reports on "good" properties here in NC, I am reluctant to even ask for inspections... the guys down here nit-pick to the point that I fear sending an inspector into this property might get it condemned instead! Convince me that this is something I should do... 'cause at this point I am expecting "the worst" so there I don't see much point.

thanks...
star, I don't have experience with 40,000 deals, but would think $500 -$1000 would be appropriate. Perhaps you might offer $500 with the Purchase and Sale Agreement and $500 after satisfactory Investigations (Inspections). I'm not sure why you wouldn't engage the services of a Buyer Agent in the process and won't get into that here, but if you don't have a professional representing you, then by all means hire a real estate attorney. If you are buying a "project house" and borrowing money, are you certain that you can finance it? Investors are getting very nervous in general, and many won't finance "as is" properties. By all means, get a reputable inspector in the house while you can. Do you really want to buy a defective property?
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