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I have an opportunity to buy a home from a friend of mine before it goes into foreclosure. We have agreed upon a price and I have been approved for a mortgage. I have been working with a realtor (getting advice etc) but no contract signed with her. She said she would represent me with a fee of 3% and help with all the paperwork. I am a first time buyer so have no idea the process for buying a home. The seller only wants to deal with me and the mortgage company.
Do I need a realtor? Can I go with an attorney? Any information you can help me with is greatly appreciated.
It's so nice to hear that you used your Realtor and now are willing to ditch her for this house; you come to this forum for advice on how to accomplish that.
Just because you didn't sign anything doesn't mean you don't owe her for her time and expertise. Is it more important to do what the owner wants or what's in your best interest?
SOMEBODY needs a professional who knows the ropes in this scenario, in order for the contract to be legally binding, in order for everything that needs to be shepherded to closing to be done properly, in order that the risk of someone being sued down the line after closing be reduced.
Is there a good reason why you don't want to use the agent who's been helping you up to now? You do realize that she doesn't get paid until you close on a house with her, right, and that you've been benefiting from her advice for free up until now? How do YOU feel about that? (Not the seller, you.)
3% is pretty average for a buyer's agent, yes, depending on your local (I don't know what state you're in). The agent won't be paid until closing; an attorney generally will be paid whether you close or not.
Also, you say before the house goes to foreclosure. Is this a short sale situation (where the seller is hoping that their mortgage lender will take less than owed as payoff of the loan)? If so, yes, you definitely need professionals involved, and even then it will most often be a nightmare.
You have no idea if this is a fair price, what a contract looks like, what contingencies you should have, what inspection company you should hire, what is normal to negotiate...
You need a lot of help. You don't know what you don't know.
Have a conversation with the Realtor. Ask what they would advise. I know what I would do if you called me.
Thanks everyone for the quick response. The realtor I've been talking with is great. Just didn't know if that was a fair price she was offering. I agree, that I def need alot of assistance in this process. I just wasn't sure if 3% was standard since I found the house myself. It would just be for the paperwork and walking me thru the process.
Tippy--these days, I think MOST people "find" their houses themselves through internet searches, etc. The only way my agent would have something to show me I didn't already know about would be if she got an inside line on a house that was getting ready to come on the market, but that hasn't happened.
The agent's job isn't so much finding the house as helping you find a house that fits your needs and helping you through the process.
I think most people these days find the houses themselves. That is the easy part with everything being on the internet these days. The guidance from a real estate agent on pricing, negotiations, inspections, contracts, closing and the list goes on is key to making a real estate transaction go smoothly.
I am sure there are people here that can do these transactions themselves, but they have been seasoned in real estate for years and know enough about it to go through with it.
I have an opportunity to buy a home from a friend of mine before it goes into foreclosure. We have agreed upon a price and I have been approved for a mortgage. I have been working with a realtor (getting advice etc) but no contract signed with her. She said she would represent me with a fee of 3% and help with all the paperwork. I am a first time buyer so have no idea the process for buying a home. The seller only wants to deal with me and the mortgage company.
Do I need a realtor? Can I go with an attorney? Any information you can help me with is greatly appreciated.
Thanks!
--" before it goes into foreclosure"---
That phrase, alone, would have me wanting a good buyers realtor representing me.
The fact the seller says he only wants to deal with you and the mortgage company would be another " red flag"
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