edit: oops, misread…carry on
edit2: I thought he meant he would do FS by owner on his house. To which I responded that without using a realtor and get listed in the MLS, chances of sale is low. Some limited listing agents do exist, though.
I did a couple edits, but as said I do intend to probably use one to help sell…
even with that said places like zillow are changing the game. technology is making realtors less and less needed all the time.
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now I’m busy reading all about buying without help again. I like this one:
Reatlors want you to believe that the house buying experience cannot be complete without them. Actually, Realtors have told me that they are necessities, and they just don’t know how real estate transactions could be completed without them. Don’t believe it.
The home buying experience is not as complicated as Realtors wish you to believe. You don’t need to complete classes, and you don’t need to be a rocket scientist to do it. Personally, I hate using Realtors, because they simply increase the price of the property, regardless of what they try to tell you. Realtors cost you money, whether you’re a buyer or a seller.
If you’re a seller, you will pay up to a 7% fee for the seller’s Realtor. If you’re a buyer and you don’t use a buyer’s Realtor, the seller’s Realtor should give the seller a discount in commission because traditionally that 7% selling Realtor fee is split between the buyer’s and the seller’s Realtor. So if you eliminate a buyer’s realtor, the seller should be able to pass the savings along to you unless the seller’s Realtor is excessively greedy (and you’ll find those.)
Find the property you like. Make the offer. If the home is listed by owner, then submit the offer to the owner. If the property is listed by a Realtor, then you can submit the offer to the listing Realtor. If the home is listed with a selling Realtor, then you 'll have to go through that Realtor anyway. The easiest way to make the offer is to download the sales agreement (contract) from the internet for the Board of Realtors of your state. Don’t let Realtors tell you that you can’t get them or that you can’t use them. Bologna. Just because the forms indicate that they’re for use by Realtors doesn’t mean you can’t use it youself. I’ve done it myself and it’s easy. E-A-S-Y.
You don’t need any special training to complete the sales agreement, as everything is self explanatory. It addresses everything necessary to complete the transaction – everything from earnest money, closing dates, closing attorney, inspections, contingencies, etc.
So … go for it yourself and save the time, money, and headache of dealing with a “buyer’s realtor.”
In the 90’s, when newspaper classifieds were more prevalent, a lot of people used to do FS by owner. My parents sold our old house by owner, and the guy bought without a realtor and paid with a god damned check. Now people have been conditioned to be so lazy that they cannot do the leg work themselves. It may swing back the other way, but i doubt it. It’s just so easy to use a realtor. Buyers feel more comfortable, and since they technically don’t directly pay for it, it seems like a no brainer.
buyers do technically pay all of the commissions. Unless you want to play the I gave “person C” $10 to give to you, who gave you the money game.
I’m still getting dicked around with NACA, but the saving are worth it.
Beck - do yourself (or us) a favor and do the math if you had gone through NACA. Take what you paid to points against 1% lower than what you bought down from. Your downpayment is your choice, but know going into it you’re going to have a 3% interest rate on a 30yr fixed and know that your downpayment could do much better elsewhere. Also add all in of the PMI you’re going to pay, the closing costs outside of taxes and insurance, and then you’ll see why people like Mike and I are willing to jump through some hoops (on work time) to save A LOT OF MONEY. Like 10s of thousands.
Those of you who say you wouldn’t do it may change their minds when they see how much, over 30 years, Beck would have actually saved.
all of the money comes from the buyer, so yeah, the buyer pays…fair enough. The seller only gives a shit about how much they make from the sale.
In most cases, the seller signs a listing agreement that states how much commission the seller agent will get and how much commission the buyer’s agent will get. So, as you stated above, if you buy it yourself, the buyer’s agent portion should be discounted. Feel free to do so, but it makes viewing homes REALLY difficult. I tried a few homes without a buyer’s agent and the selling agents were almost impossible to work with. I even got stood up by one completely.
lol had I known about this when I got a house I would have taken more time and gone this route…
But hey Beck does finance for a living
Your cup holds water, I agree. But only for someone who is going to take advantage of the full term. Spending a year to buy a house I might keep for 5 years makes no sense. Especially when the house I bought would not have lasted a week, let alone a year.
I won’t keep my house longer than 5 years…hence the shortened 15 year term. Would I consider doing something like NACA next time around? Certainly, but with a $204k house cap, I won’t be able to.
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The only other plus side to FHA I can think of is that it’s the only assumable mortgage type left. Meaning someone can pick up my rate/terms. It especially makes sense in my case where someone is going to most likely be buying my house whom has a significant amount of equity from their first house. Not to mention, if rates increase in 5 years back to 6%+, they can take advantage of my 4%. :dunno:
You’re paying 4% on a 15 yr?
AND you’re selling in 5 years?
AND you only put 10% down?
AND we’re the crazy ones?
No offense man, but I thought you had 4% on a 30… on a 15 that is horrible. You should be low 3s at worst. If your main priority is to build equity as quickly as possible, you should have put more down and paid less interest (obvious solution, I know, but I thought you would have done that).
I’ve never looked into assuming a mortgage… but if that was the case, your 15yr would probably not be attractive to someone bringing over a lot of equity because they would have to apply that money to your large monthly payments at a relatively high interest rate over the remainder of the loan, and they would lose the benefits of them putting a lot down, getting a lower rate, and getting whatever loan they want. If we’ve bottomed out for rates, which we really haven’t, then at worst, 5 years from now they would be at high 3s for a 15 yr… with a sizable downpayment, and they wouldn’t want your loan anyway. Their equity would have go hand in hand with established credit… so I can’t imagine they wouldn’t get rates as good as yours w/o assuming your mortgage.
This isn’t the NACA guy talking, it is the guy who isn’t looking to waste money on such a large investment. Granted, I only thought about this for like 5 seconds after reading your post… so correct me if I’m wrong.
The $204k cap caries by location, and number of dwellings… so if you’re looking out of the area, the range goes up substantially. If you’re looking for an in-law apartment, or even duplex+ it goes up a lot.
:gotme:
When I applied for FHA it was 4.5% for 30 or 4% for 15. A month later my buddy got 3.75% for 30 on an FHA loan. The benefit for a 15 was that I could have MIP removed when I hit 78% equity, as opposed to having it on the loan for the mandatory 5 year term on a 30 year loan. My goal is to have my mortgage down to 78% by this time next year. 4 years of not having to pay $200/month MIP saves me ~$10,000.
I never said that someone would assume my mortgage, just that it was a point/benefit of someone who was considering an FHA loan.
My main goal is to get as much equity in the house in the next 5 years, extra payments and principle payments. I don’t understand how my down payment has anything to do with that, whether I put $50,000 down right away or throw it on the mortgage over the next year, it’s almost 6 in one hand, half a dozen in the other… I also don’t understand where you think I put 10% down? I mentioned earlier that with closing costs, insurance, taxes, fees, etc that including the 3.5% down required by FHA, the total out of pocket you would need equates to about 10% of the purchase price of the home. I mentioned that I needed to come up with ~$20,000 to close on my house, via FHA… I would’ve put twice that down, but I wasn’t going to lose liquidity when I didn’t have things like a couch and a bed and planned on re-carpeting a house etc etc.
$204k cap regardless of where I live and the number of dwellings won’t work for me, unless I can spend a lot more than $204k on a single family home in East Amherst/Clarence.
Don’t answer if you don’t want, but just so I understand, you put more or less than 10% down? I understand it cost you 10% to close, which equates to $20k so it isn’t like we don’t know what you spent ( and I think you posted it a while ago) , regardless, it sounds like you put like 19% down if you’re only paying MIP for a year @$200/mo. But it in same breath you’d have to put down another $20k to avoid it all together, which would be approx 10% of the cost of the house.
Last time I checked, 78% principal is also applicable on a 30yr. I may be wrong, but that means it changed. At 77% the bank has to remove it and 78% your eligible and they don’t have to tell you.
I dunno man, I don’t want it to seem like I’m telling people how to spend their money but at the same time, if you’re doing it right, I might be doing something wrong.
In march I was preapproved for a 30yr @4.3%.
I got approved in september for 3.15% on a 15 yr conventional refi with no points, or could have gotten 3.00 with one point. didn’t finish it since we are selling the house, but might not be a bad idea to run the numbers for refi at the current rate. If you put as much onto the loan as you make it out to be, you might be able to get a 10 year. Rates on that at VisionsFCU.org are 2.95 with no points, and 2.75% with one point.
I don’t recall what I paid on points for my first house, but NACA is 1% purchase price for every .25% on your rate.
When you start @ 3.5%, do the math… 14% will buy you down to 0.0625% ( which is actually as low as they will go. Some banks only go down to 0.125%) … so you have to ask yourself… are you better off putting that 14% down on the house @ 3.5%, buy down points to have ~0% for 30 years… or invest elsewhere?
I put ~ 10% down plus taxes, fees, insurance etc. I didn’t want to liquidate myself entirely. For taxes, closing costs and fee’s I had to come up with another $10,000. I wrote a check for ~$20,000 on the day of my closing. The sellers covered another $7,000. However the amount down after all my fee’s/taxes etc didn’t put me in a 78% equity position to avoid MIP. (PMI doesn’t apply to FHA loans, but MIP is essentially the same thing). I would’ve needed ~$50k plus closing costs etc to avoid MIP. So what I figured was to take $20,000 liquid cash and put that down, rather than the $50k and pay MIP for a while until I could get my nest egg back up and just pay right down to 78% and have the MIP removed…MIP is mandatory for 5 years on all FHA loans longer than 15 years. So if I went 30 years and paid it down to 78% right away the first month, I’d still have a ~$200 MIP fee for 59 more months. If I went 15 years, I wouldn’t pay MIP for anything longer than the time it took me to get to 78%, hence if I do it in a year, I’ll save $10,000 in MIP bullshit.
In April I had a loan approval for 4.5% for 30 years through FHA. However, I needed to go the 15 year route because of the MIP issue. That took .5% off. I closed in late July. My buddy got pre-approved for a 30 year @ 3.75% a month later. There was nothing I can do, I’m not going to bitch about .5% or even 1%…I don’t care, .5% is about $8k over 15 years, it’s menial and stupid to lose sleep over. I’m not claiming to be weathy or not consciencous about money, but I’ve spent $10k on a lot more useless shit over the course of a year, shit I’ve spent more of watches in the past 8 months 
Thanks for clearing that up…
UPDATE: I should have my place inspected Friday.
SHOULD
If you are not happy with the inspection let me know, I can give you the number of a guy who will report back to Nacala that all is well.
I’ll take his number now if you could…
What is the rate you are going to end up with? I recently locked in @ 3.75% on a 30yr with First Niagara
I’m shooting for 2%… the rate today is 4%… which pisses me off. It was 3% in October. Still the lowest available right now, but not as low as it was.
3 of the main benefits of NACA aside from their guaranteed 1% below market are:
- No downpayment required. $0.
- No PMI. (You do pay a membership fee for 5 years or so which insures you and your mortgage and that is $50/mo or 1/3 of what PMI would be)
- No closing costs (Realistically, there is money due at closing, but they are not the “extra” costs that lenders typically charge at closing. I’ll need my taxes and insurance, etc…)
3.75% is great… no doubt. Based on how the market has been and your definition of recently, you could have bought that down from a higher amount or put a lot down on the place… or you got lucky with the timing of your lock in date. I will probably not luck out, but I have some money to buy down or put down if I feel like it.