Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So we just got married and are now sort of looking for a house.. Since we just paid for the wedding ourselves, it has impacted our savings significantly. We're currently renting month-to-month so we're not desperate one way or the other.. We still have a sufficient amount for a down payment (I'd like more, but it should do).. Additionally, in 7-8 months we'll be able to nearly double what we currently have saved for a house.
My question is, when should we start looking and when should we contact a realtor? Already spoke to a broker and received a good faith estimate for the pre-approval amount, so we know our current limit. However, we don't really understand how the realtor thing works. We don't want to be pressured into buying something but also don't want to feel like we're wasting the person's time because of our situation. Any advice would be greatly appreciated!
We still have a sufficient amount for a down payment...
That's a rather bold statement. Be really sure on this.
Quote:
My question is, when should we start looking
a) when you have enough cash set aside for ALL of the closing costs but also the moving and decorating and inevitable repairs...
and a responsible reserve on top of all that.
b) there is no b.
Quote:
and when should we contact a realtor?
When the weather turns cold again and the other buyers start thinking about the holidays and move on to their week in Florida and all that.
Talk about what you want to do, your timetable, etc.
Find one that you like. Doesn't mean you have to start looking right away. You might want to have him/her take you to see a few houses in your price range to find out what your price range will actually buy.
It may help you figure out whether the price range you have in mind is actually going to buy the house you want to call home.
If it is, great.... if you have the money to buy, start shopping.
If it's not, then maybe you might want to save a bit more before you buy.
It's hard to make decisions like this without knowing what you're in for.
Also... if you are thinking of a house in a lower price range (less than 250k), you can go through one of the first time buyer's programs at one of the local credit unions and that will help you with a lower (or no) downpayment and lower closing costs. That way, you can be sure you have enough money in reserve to protect you in the event of unexpected expenses (and they always arise with houses).
I'm not the biggest advocate of putting down extra money in the current real estate market. I am, however, a huge advocate of keeping money in savings for all sorts of scenarios... including one where you buy now and have to sell in 2 years and need to pay for the difference if the house sells for less than you paid.
Agreed, also not a big fan of massive down payments, especially at these interest rates, I feel like thats an old saying that is not relevant currently.
And you should talk to a realtor now. Assuming you will get a better deal later in the season is very general and almost akin to ignorance being bliss. Do better deals go down at the end of the season when people fear they will be stuck in a home they are trying to move for another year? Yes. Does that mean while you're waiting a perfectly good home in your price range at a great price may be sold and you miss out? Yes. Go talk to a realtor and let him work for you, that's why they get paid. I have a great one in the Cary area who worked nearly 2 years on the hunt before we closed.
Unless you are looking for something that isn't the "norm" in our area, finding a home should take you between 30 to 60 days. There is just so much inventory out there. I have so many clients recently that didn't want to buy "right away" but found the home they really wanted!
I'd suggest you "interview" a couple of agents. Find someone you can trust. Find someone that is looking out for your best interests.
Don't sign anything LONG TERM. If you find an Agent that wants you to sign Buyer's Agency the first time you meet, sign it...for ONE DAY. That way, the MINUTE you feel pressured, you can RUN!
Unless you are looking for something that isn't the "norm" in our area, finding a home should take you between 30 to 60 days. There is just so much inventory out there. I have so many clients recently that didn't want to buy "right away" but found the home they really wanted!
I'd suggest you "interview" a couple of agents. Find someone you can trust. Find someone that is looking out for your best interests.
Don't sign anything LONG TERM. If you find an Agent that wants you to sign Buyer's Agency the first time you meet, sign it...for ONE DAY. That way, the MINUTE you feel pressured, you can RUN!
Enjoy shopping for your new home!
Vicki
Quite true, Vicki. We've been working with our agent (slowly.. we take up very little time) since last October, or thereabouts. Haven't signed anything yet. I'm sure they'll have us do it when we either 1) pick up the pace and start seeing houses fast and furious, which I doubt we will ever do, or 2) write up a formal offer somewhere.
Agreed, also not a big fan of massive down payments, especially at these interest rates, I feel like thats an old saying that is not relevant currently.
And you should talk to a realtor now. Assuming you will get a better deal later in the season is very general and almost akin to ignorance being bliss. Do better deals go down at the end of the season when people fear they will be stuck in a home they are trying to move for another year? Yes. Does that mean while you're waiting a perfectly good home in your price range at a great price may be sold and you miss out? Yes. Go talk to a realtor and let him work for you, that's why they get paid. I have a great one in the Cary area who worked nearly 2 years on the hunt before we closed.
You sound like us... we are up to about 8 months with our realtor so far.
There were some deals to be had last fall, but most of the houses were stinkers that nobody wanted in the spring/summer.
It is not too early to speak with agents. We all know that it is a relationship business, and that you need to be comfortable with the agent.
Of course, every one of them should review agency with you, review Working With Real Estate Agents from the NC Real Estate Commission, and ask you to sign it.
It is certainly not too early to speak with mortgage bankers, to get a good idea how they handle lending.
You should get copies of any agents' Buyers' agency agreements for review.
The sooner, the better. You can read them at your own pace, and have your questions answered and paperwork executed before you sit down to write an offer.
Then when writing the offer, you are focused 100% on the property, and not wasting time on the agency agreement. It sems that a great many consumer complaints, and you can see them on CityData, include, "We signed so many papers we didn't read, and just assumed the agent was looking out for us."
And you can skip the "one day deal" if Section 13 says "Either Party may terminate this agreement at any time prior to location of a suitable property."
As a home shopper, I would NOT sign an agency agreement that did not include that phrase. That means the agent has to earn your business and your trust every day.
Your review of the form will tell you that the agent must project an expected compensation, and must inform you if the compensation varies. This is a fairly recent and nice piece of protection for the Buyer that should be in place early in the relationship. Particularly with some huge bonuses flying around for agents to take you to some properties and subdivisions.
Congratulations on the recent nuptials!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
