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Old 06-06-2018, 10:36 AM
 
361 posts, read 248,333 times
Reputation: 367

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Quote:
Originally Posted by desperatedogadvice View Post
I feel badly for the OP who clearly did not do homework about the home buying process. Much of the standard procedure can seem like an affront. But the reality is that this is the way its done. If you air these grievances, more experienced people just chuckle and call out your (very public) lack of knowledge.

The solution is to have more money to put down. Or buy in cash.

Dual agent is another rookie mistake.

There could be some very expensive lessons in your future, OP. Best to slow down and get an education before going further. But if not, I wish you the best.
Assuming the home inspector does his job, I dont see how I could be harmed. The dual agent said "of course I cant tell you their bottom dollar, just like I cant tell them your top dollar".

So you may not get the best deal in the end with a dual agent, but this deal is skewed in my favor. So I dont see the issue.
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Old 06-06-2018, 10:40 AM
 
4,553 posts, read 11,593,256 times
Reputation: 3070
Quote:
Originally Posted by juggar View Post
Interesting, pretty sure the 3% would be applied as a lump sum towards the final closing cost, including the downpayment. They already were willing to give $1600 to replace the counter tops so asking for 3% (which includes that $1600) is fair.

I will call Chase and make sure some of it can go towards down payment.

I only offered 115k, because there IS work that needs to be done. This house was a rental for the last 5 years and you know how god damn renters can be.
If you are doing a USDA/RD $0 down, then you don't need a down payment and the 3% can be used to cover your closing costs and pre-paid items. If you are doing a 3% down conventional or a 3.5% down FHA, none of the down payment can come from the seller.
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Old 06-06-2018, 10:40 AM
Status: "ADOPT DON'T SHOP" (set 9 days ago)
 
Location: NY>FL>VA>NC>IN
1,972 posts, read 754,632 times
Reputation: 3689
Quote:
Originally Posted by juggar View Post
Interesting, pretty sure the 3% would be applied as a lump sum towards the final closing cost, including the downpayment. They already were willing to give $1600 to replace the counter tops so asking for 3% (which includes that $1600) is fair.

I will call Chase and make sure some of it can go towards down payment.

I only offered 115k, because there IS work that needs to be done. This house was a rental for the last 5 years and you know how god damn renters can be.
I typically use the listing agent, never bother with a buyer's agent (but I'm old and have been buying/sellinghouses since 1988) and I can assure you not bringing your "own agent" doesn't mean he kicks 3% of his commission back to you to apply to closing costs. In fact as a dual agent he charges you a fee for representation in most states. When I bought my last place I used the listing agent, and on the contract paperwork was a sheet from his agency that stated I was to pay as BUYER a flat fee of $195. for representation.
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Old 06-06-2018, 10:56 AM
 
Location: Rochester, WA
3,911 posts, read 2,112,912 times
Reputation: 10832
Quote:
Originally Posted by juggar View Post
Firstly, Thats just whom the seller chose to represent his home. They happen to be a dual agent, I did not go out and specifically seek out a dual agent. Though, it does give me a much better position to negotiate. Typically I would bring my own buyers agent and they would take 3% as their fee. In this scenario, I can ask that 3% to go to closing, rather than bring an additional agent.
Right... You can ASK for anything...

Quote:
The dual agent is supposed to be legally neutral, of course we all know they are likely seller biased. They did read me legal disclosures and she repeated multiple times "I CAN NOT HURT YOU". It was weird, but whatever.
Yeah - OK . She didn't have a big pot of water boiling on the stove or anything, did she?
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Old 06-06-2018, 11:00 AM
 
193 posts, read 77,617 times
Reputation: 555
Quote:
Originally Posted by juggar View Post
Assuming the home inspector does his job, I dont see how I could be harmed. The dual agent said "of course I cant tell you their bottom dollar, just like I cant tell them your top dollar".

So you may not get the best deal in the end with a dual agent, but this deal is skewed in my favor. So I dont see the issue.
The agent is representing the seller and wants to get the best commission. In a rural area that is not a hot market, commissions might be fewer and further between than in a more active market. So you are the cash cow. Its in the agent's best interest to get the most money for the sale and its in their best interest to make sure the sale goes through. You are an inexperienced buyer. No one is on your side in this deal. Not somewhere I would want to be no matter how much confidence I had in myself.

There are ALWAYS things a home inspector misses, no matter how good they are. They don't live in the house for a month and test all the systems with normal use-- they are there for a few hours and write a report. Things break. Things get missed. Systems that were working fine fail in the first few months after occupancy. And sometimes inspectors are recommended by an agent-- I would caution against using the recommendation in this situation as the agent's priority will be to make sure the sale happens and not that you get an accurate report.

OP, this is a lot more complicated than buying a car.
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Old 06-06-2018, 12:01 PM
 
770 posts, read 570,396 times
Reputation: 1475
Juggar,

Please come back in 10 years and re-read all your old posts ... You will get a good laugh ...
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Old 06-06-2018, 12:04 PM
 
770 posts, read 570,396 times
Reputation: 1475
This is like arguing with a 12 year old telling me how to buy a car .. .
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Old 06-06-2018, 12:06 PM
 
361 posts, read 248,333 times
Reputation: 367
Quote:
Originally Posted by TimtheGuy View Post
If you are doing a USDA/RD $0 down, then you don't need a down payment and the 3% can be used to cover your closing costs and pre-paid items. If you are doing a 3% down conventional or a 3.5% down FHA, none of the down payment can come from the seller.
I called Chase and you're right. Chase will give $500 and ill need to come up with $2500 which will be easy.

Closing cost are discounted with their "Dream maker" program and $3500 (roughly 3%) would certainly exceed these cost. He said we would apply any extra to pre paid stuff like insurance. If any more were left then buy discount points.

This could end up being very lucrative if im able to effectively lower the interest rate with the sellers money.
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Old 06-06-2018, 12:11 PM
 
770 posts, read 570,396 times
Reputation: 1475
Quote:
Originally Posted by juggar View Post
I called Chase and you're right. Chase will give $500 and ill need to come up with $2500 which will be easy.

Closing cost are discounted with their "Dream maker" program and $3500 (roughly 3%) would certainly exceed these cost. He said we would apply any extra to pre paid stuff like insurance. If any more were left then buy discount points.

This could end up being very lucrative if im able to effectively lower the interest rate with the sellers money.
Yep, your right. you are a genius. you are beating the system .. awesome job !
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Old 06-06-2018, 12:13 PM
 
1,390 posts, read 552,039 times
Reputation: 2423
Quote:
Originally Posted by juggar View Post
I understand they need to protect their interest, but its literally only $500. Like, seriously? It really should be based on credit score whether or not one needs to put $500 into escrow....

I find it honestly offensive they would attempt to charge me $14 for a damn credit report. Mind you, I get these free from Discover and many other credit cards. The dealership doesn't charge me for this either, they know its the cost of doing business.
Depends on if you are currently doing business with the bank. If you are not, they will probably charge you fees. If you are and have a sizable amount of money with them they often waive these fees. Here is some info on escrow https://www.nolo.com/legal-encyclope...rance-own.html
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