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Unread 09-28-2009, 07:47 AM
 
6 posts, read 10,643 times
Reputation: 10
Default Different avenues of buying a house

Having moved to the DC area recently, we are looking to buy a house probably starting next year. After searching neighborhoods and whatnot, it's clear the prices are high (Not complaining as I believe you get what you pay for and we like the area). However before I start my search and buying process I was wondering how much luck other people had with home purchases outside of the typical "Agent shows you a house and you buy it" realm, perticularly with foreclosures, auctions or FSBO.

Our first house we bought was a forclosure bought in 2005 and even with the RE bust we will still make a bit from the sale, at worst break even. To me it was a great financial decision to go that route as I didn't end up upside down in my mortgage like many friends that bought around that timeframe.

So.......any stories of alternative buying? Looking at doing as much research as possible before buying.
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Unread 09-29-2009, 06:34 AM
 
Location: Northern, VA
980 posts, read 1,842,100 times
Reputation: 514
I'm guessing you want to cut an agent out of the equation because you think it will save money? In VA, my commission comes out of the sellers proceeds. You may say "ultimately I'm paying your commission because it's my loan that's paying the seller that pays your commission". What the seller does with their earnings is on the seller. I do charge a retainer fee, which is all a buyer would pay me.

I don't think whether you end up upside down on your mortgage has anything to do with using a realtor, but it definitely has tons to do with using a good MORTGAGE LENDER. I would not recommend an internet lender; I've had past clients insist on using them inspite of my advice against it....every single one of those transactions started falling apart in the 11th hour.

I can tell you that if you're buying a foreclosure, you'll use an agent whether you like it or not. Banks don't want to deal with "regular people". When you submit your offer through whatever website you choose, the bank will forward your information to the listing agent, who will then write and submit your offer (unless you decide to hire another agent). If you're looking for an alternative, there are plenty of for sale by owner sites. When you're cruising neighborhoods you like, look for FSBO yard signs. Some FSBOs post on craigslist. Good luck getting a good deal from someone who's more likely to price their home on what they WANT to make from the sale rather than what the MARKET dictates.

Quote:
Originally Posted by PBSG2 View Post
Having moved to the DC area recently, we are looking to buy a house probably starting next year. After searching neighborhoods and whatnot, it's clear the prices are high (Not complaining as I believe you get what you pay for and we like the area). However before I start my search and buying process I was wondering how much luck other people had with home purchases outside of the typical "Agent shows you a house and you buy it" realm, perticularly with foreclosures, auctions or FSBO.

Our first house we bought was a forclosure bought in 2005 and even with the RE bust we will still make a bit from the sale, at worst break even. To me it was a great financial decision to go that route as I didn't end up upside down in my mortgage like many friends that bought around that timeframe.

So.......any stories of alternative buying? Looking at doing as much research as possible before buying.
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