Questions about buying a house (St. Louis, Webster Groves: sales, real estate, loan)

[greenice]

So my husband and I are planning to start house hunting this spring. This will be our first home so I have questions.

When do we start looking for a real estate agent?
Can we show the realtor pictures of the style of homes we like so they get an idea? Will they think we're crazy if we give them a list of school districts?

We aren't looking for anything extravagant, just a 3bdrm with a basement (for storms) in a good school district.

[billiken]

You pretty much need an agent to look inside houses, and they'll also give you access to an online portal with the most up-to-date MLS info (much better than zillow, etc). I'd say you get one once you're "serious" about finding a house.

If you go to open houses or things like that by yourself and mention you have no agent, realtors will pounce all over you trying to gain a new client. I'd recommend trying to find someone outside of that environment. Interview potential realtors, ask friends, etc.

I think it's completely expected that you share your needs in a house. School district preferences are completely normal. We went through all varieties of houses our first trip so that our realtor could get a feel for what we were looking for. I think the more you look, the more you'll realize that you need stronger preferences than 3bdrms with a basement in a good school district (there are TONS of houses meeting this criteria), unless your budget is extremely limited.

[greenice]

Our budget isn't low, I know we can afford a good neighborhood. I'm just really nervous, I have no idea how to approach this.

[Hector2]

Originally Posted by greenice

Our budget isn't low, I know we can afford a good neighborhood. I'm just really nervous, I have no idea how to approach this.

You shouldn't be nervous yet. Now is the fun part before the grim reality of limited inventory and multiple offers on the few quality properties out there sets in. I am half kidding.

I think over the next couple of months you should start to talk to agents and let them know that you want to look in earnest in the Spring. Ideally, you would have an agent signed up sometime in February who might have some insight on what will be coming on the market.

By all means you should give the agent a list of school districts. I would think that would be the norm.

As for styles of house, if you are looking strictly for a particular style (e.g. mid-century ranch) then I would let the agent know that.

Remember, don't give in to pressure to buy something that you don't want to buy. You might feel that pressure because your agent gets paid after a sale--any sale.

[billiken]

^ Agreed. You want someone who is very familiar with the ins/outs of the areas you're looking in (I learned things I never knew from our agent, even though I was previously familiar with where we were looking), understands the market to help you negotiate successfully, and never pressures you. It's definitely a big purchase, don't feel rushed and take all the time you need!

For example, I found a house in Webster Groves well below our price point that I loved, but it needed work. I thought it would be a great idea to buy and renovate, but our agent advised against it just due to the market in that particular neighborhood (not much history of sales over $x amount, you'd be over-renovated and losing money eventually). Things like that are where I found true value in a great agent.

[greenice]

I'll be sure to be careful when choosing an agent.

I guess one thing on our side is neither of us give in easily.

[DinsdalePirahna]

and never use the same agent as the seller (believe it or not, people actually do that).

[Hector2]

Originally Posted by DinsdalePirahna

and never use the same agent as the seller (believe it or not, people actually do that).

Right. Should be illegal/unethical.

[SouthCityGal]

When you're getting close to seriously looking for a home, contact a bank first and get pre-approved for a mortage (assuming you will need one). Most agents won't work with you until you're pre-approved. They'll want to see your pre-approval letter (as proof) and it will state how much the bank is willing to loan you. The agent will use that number (plus whatever down payment you have) to narrow down your search. I don't recommend going with a lender recommended to you by your realtor either, unless you call a few different places and compare what they say. Try your own bank first, especially if it's a local bank and not a national chain.

Yes, you can absolutely request that the agent search only certain school districts. The search criteria can be very specific. You can even narrow it down to homes with dishwashers, if you can believe that!

Word of warning: before the recession, any agent could sell just about any home. Some areas in St. Louis have not rebounded well since then. You don't want an agent who will just show you homes and write up a contract. You want an agent that will give you a lot of comps (comparison prices so you know if the house you want is worth what others sold neaby), who's not afraid to question the selling agent, and who can negotiate (very well) any other details that come up, including repairs.

Be aware of agents who say things like "well, other houses are selling for that" or "the house seems okay to me" or "you can't ask them to repair [blank] because they lowered the price." Your agent should understand what you want, and help you get it--the agent should not make you feel bad or naive. I know from firsthand experience.