How to Negotiate Your Best Deal When Buying A Home
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- Опубліковано 6 жов 2024
- Learn how to negotiate your best deal as a homebuyer and avoid common home buying mistakes.
#homebuyingpitfalls #buyingahome #housingmarket
Contact Stuart Epstein
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Todd Sachs is a Maryland Real Estate Broker and not a Lender, CPA, Attorney, or Financial Advisor.
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We thought this was an EXCELLENT conversation. This was one of you BEST Tuesday night podcasts! We learned a lot on a variety of subjects!
Real estate market is artificially inflated and distorted. It used to be a good investment to buy real estate but that's the past. Until prices come down I won't consider buying anymore real estate. Prices are way too elevated and rates are also too high. I'd love to buy a second property when it's affordable again.
I hate the governing system, seems like the only freedom is talking but you can lose your life expressing yourself.I am a minimalist and remain this way to survive. Money is the root of all evil. You ask good questions Mr Todd
As a prudent buyer of a single family residence, the most important variables to me are: Location, "Bones" of the house, The deal and lastly the agent. If you don't have these four factors optimized you are going to place your investment at possible risk. The Buyer Must be stronger than the seller with ability to close fast and with minimum possible delays. This also encourages the agent(s) involved to care about receiving a fast and good sales commission. Of course I prefer Dual agency where the law allows. It is all about the Deal that the seller wants. Motivated sellers can close faster with the deal that they want. It is always about the needs of the seller. The "Highest and Best" offer does not always imply the highest selling price. I Never get emotional about buying anything.
Can you please share why do you prefer dual agency? I had one such deal and I felt the agent worked for the seller only. House failed inspection anyway, but I felt the dual agent did not represent me well.
@@John1908-vo1iv First, A Dual Agency relationship must be legal in the state, usually with signed permission of each party. In Dual Agency the Listing agent or broker is legally responsible to each party. In my case when I see a Listing on the local MLS I will contact the listing agent for additional information. There are many reasons for this including the following. The ONLY agent who can know ALL information about the property is the Listing agent. Other agents including associates who may be working for the Listing agent, if that person is also the Listing broker can not know these important details. The Listing agreement by the seller will list only a few important details about the property according to the laws and court decisions of the state. The Listing agreement is the "official" marketing tool of the seller when represented by an agent. In other words it is legally PRIMARILY a marketing tool by the local and state association used to market the property. Only LEGALLY required information and data is described in the document which is described on the MLS networks. If a potential Buyer hires a "Buyers agent" ( not affiliated with the Listing agent as a "Team member" or associate, they ONLY way they can answer questions not from the official listing or subordinate "confidential listing remarks" ( separate form in my state) from the potential buyer is to make a request to the Buyers agent. In California where I am located there is NO STATE LAW that mandates that the Listing agent respond to the Buyers agents, telephone calls, emails, Texts or Faxs! I know many Brokers with listings who NEVER answer the telephone about their own listings. The only penalty for this is maybe a $500 fine after an administrative procedure of a local association. What agent cares about a $500 fine or a million dollar property where they could lose a 3% commission by not representing their own buyer? TherE are many mnay a
@@John1908-vo1iv My reply was deleted, so I will try again. I have purchased and sold several houses and EVERY time I have hired a "Buyers" agent including agents with a Brokers license I have been "inadequately represented" ( I don't want to be impolite but I can be sued for telling the truth and using the appropriate real world expletives).
@@John1908-vo1iv I already made two replies that YT does not like. Imagine buying a commodity like a car. Which person gets the advantage in any transaction, the seller or the buyer. The seller wants the money rather than the item. The seller wants the item more than the money. Where do you have a balance? In a sellers market where prices increase, volume decreases and inventory is low? Or in a Buyers market where prices are leveling off compared to prior prices ( can be over 100 years)? Who has the advantage in either case? The person who is financially strong and does not have emotion over the purchase. An item or house either sells or it does not. Who cares but the salesman? On Dual Agency transactions I have met my needs on both sides and am still friendly with the previous seller AND buyer and especially the agent who got both sides of the commission FAST so they can pay their recurring bills!!
Back in 2010, I had my retirement home built. It is small and efficient. I can't imagine how people who failed to plan and downsize for retirement are making it today.
I thought VA funding fee was 0.5%. If now is 2.15% that is a significant expense for a house valued at 400-500k. This makes the VA not appealing enough even for potential VA borrowers who have a 20% down payment, unless the interest rates are much lower, which he did not go in detail. The VA funding fee is not worth it in my opinion if someone has the 20% down payment, they are better off with a conventional loan. I also don't understand why someone would buy a house with $0 down, if they don't have the financial discipline to come up with a down payment.
@SachsRealty thank you for this conversation!
I've followed this channel for awhile now and You’ve had great content. This one however has been the most informative to me. Thank you Stuart Epstein for being willing to have a real conversation about the mortgage world.
Todd, you and your team are doing great work informing the public that doesn't have the experience/expertise to be informed.
Excellent job!
What a terrific education! Thank you!
Wow..all the information needed in this video..Open, honest, transparent..
You are funny Mr. Todd, you got me laughing during the conversation.
Best explanation; GREAT discussion regarding mortgage options!! The Buyer is at great risk without a Buyer's Representative, they are unrepresented, and at the mercy of the seller and the sellers agent. Both agents are necessary in the transaction to represent each party appropriately. The coming chaos is going to prove this.
I’m seeing lots of price cuts. $50. $100. $400.
They still aren’t lowering barely anything. Than poof. Removed from market.
In the last 50 years,developing nations wages has risen 40%.The houses today,with the drywall and cheap materials,is a joke,selling for $400k to $500k.
How about $1.4 M for the same box in California?
Houses are collateral for leveraged debt traders, the big gold rush industry in the USA. If they could use nail clippers as collateral the nail clippers would cost $1000 regardless of material and labor costs. House prices are a function of leveraged debt trading more than materials and labor. The western countries need to control that industry.
Also, that's not true the seller will be honest and will disclose items from failed inspection. Unethical agents will claim that the seller didn't see the report and will keep home in pending status as opposed to "back on market" especially if they have a 2nd offer which was not accepted before. This happened in my case twice. The seller and listing agent did not disclose major issues found upon inspection from 1st offer and contacted 2nd offer, probably lied 1st buyer finances fell through lol. People, do not buy a house without inspection!😢
I agree. I had an unscrupulous realtor when I was selling my home in 2020. She refused to tell me why the buyers were backing out on buying my home. She said if I knew the reason, we would have to disclose it to any potential buyers. I didn't find out what the problem was until after I got a new realtor and the house was under contract again.
Liscensed Contractors should do home inspections. Is home inspectors licensed???????????
We are interested in buying a property to use for section 8 housing. Can you talk about that sometime?
Regarding repair requests, as a seller I'm leaning towards getting my own home inspection from a licensed inspector prior to listing and fix any small issues (if there are any) that buyers might use to get a lower price. Hand the inspection report to the buyer stating: 'these are the issues that were found and were corrected therefore, the property is being sold in as-is condition; seller will not entertain future repair requests'. Buyer can still get their own home inspection if they wish but they will know there will be no back and forth.
Good luck with that
I've been eying some acreage and there is a lot Ive been watching that was almost 700,000 and they just cut the price 200,000 a couple of days ago.
But, yeah, the market is amazing! The media totally isn't lying. Hahaha
Thank you for the awesome channel and the great content!!!
Great interview!!
Flat fees or al la carte as you call it will solve this problem. Someone posted on another video that he used a flat fee broker. The broker suggested that it would 'be nice' to offer a fee to the listing agent so he did. Saved himself thousands of $$. I do think real estate attorneys are going to become a popular choice.
Great Live Todd, very useful info!
I had an inspection done by a inspector recommended by my agent..Turn out the spector was a joke..didn't disclose roof leak,AC not working. Ect..I have to take a contractor for a second opinion..turn out that's the inspector was working with my agent. Walk way from everything.
I agree FHA appraisers used to be strict and now they are missing things that I know should be flagged on the report.
I will START buying a house the same day they STOP imposing property taxes.
End of story.
Agree,agree, agree
Excellent interview
I'm a bartender. In 2021 and 22 we had tons of agents coming in flashing cash and spending like crazy. They would tell us stories saying they would not even wright an offer unless it was at least 10% over asking and waiving appraisal. They were actually proud of themselves for it. Now the few that still come in tell us they are not even doing showings or writing offers unless the buyers sign a contract for a guaranteed $5k payment after 2 months regardless of if the person buys a house or not. Also that $5k is on top of any possible commissions given by the seller
Let's see these realtors working at Walmart! About time they get a regular job
They would be earning their worth.
Buying a house at the hight in October due to job change and had to move, did my approval made the offer then got 2K plus phone calls in a week about home loans. I’m on all the do not call registered lists. It was terrible.
Incredible interview, thank you!
What a complicated mess this is because of one word... Debt
It follows that the buyer can insist on being present during the inspection. The seller can say no, but so can the buyer. It does not make sense to "fall in love" with a particular house until you work such things out to your satisfaction.
Can you do a video on using a helioc to purchase another home then selling the previous home
We're in the process of selling 2 properties in sw Mo.
Plan to downsize buying the next house with no more than an acre .
Wishing you the best.
Todd, how old would you consider too old to be a first time home buyer?
Travel back in time about 30 years
How much would you save in Fees if you Purchase with Cash?
Good Show..Thank you.
Around me it seems like the agents will also lower the listing price right as they accept an offer - is this just so they can show "we get 5% over asking" or something?
I definitely would like to hire that loan officer Mr Stuart
The elephant in the room, for the buyer, is the specific amount of the commission and how and when it's negotiated........So, in the post-NAR-settlement world, it's confusing for buyers who are expected to sign a buyer's agent agreement before seeing properties and knowing what the new norms are. Ugh..........Perhaps the buyer commission negotiation should be at the time of offer, as a part of each offer? This is a real can of worms.
Here is my response to the question about looking at the lowest borrowers credit score and using that as the basis. If something happens to all other buyers (e.g. accidental death) then the lender is stuck with the person that is alive and this could be the person with the worst credit score, so they have to keep that in mind when assessing risk.
payment/property taxes - both can sink a buyer.
Can the amount of down payment impact the interest rate? Specially on a VA loan.
As far as I know, no. For both VA and conventional. I think the credit worthiness matters more than the down payment. I got same interest putting 40% down as someone with similar credit score but only 3-5% down.
This year I want to use earning calls to help with my strategy on companies I want to invest in. However, I don't understand them. I am always lost and have no clue what they are discussing I lose interest after 20-30 minutes and not gaining much insight. What things should I be looking to get out of an earnings call to help me invest in a specific company or real estate?
In my opinion focus on two key objectives. Learn when to sell stocks to minimize losses and maximize gains to start protecting yourself. Second, prepare to make money when the market turns around. I advise speaking with a broker or financial counselor will be much better .
Cynthia McClure Alexander is the licensed fiduciary I use for guidance . I do not think self-investing worth is worth it from my experence . Some may have no account minimums and charge annual management fees of less than 0.5% per amount managed. Self-directed investment accounts have the lowest fees and give you the most freedom, but the risks are higher. A safer choice is to hire a financial advisor and let them guide your investment strategy.
If you're a high-net-worth individual, you might need someone to give you personalized, tailored advice and make financial decisions on your behalf. That's a wealth manager. They have strong knowledge of managing investments, estates, tax planning, and other financial topics.
I see no reason for stressing yourself over these things when you can get a finacial advisor . A financial advisor can help you determine if dividend investing is a good fit for your financial goals and can help you develop a strategy. They can also help you consider your risk tolerance, liquidity needs, and short- and long-term goals. Consulting a financial advisor can be especially helpful if you're new to buying and selling individual dividend stocks. You can also ask your advisor questions about reinvesting your dividends .
THE PRIOR HOE INSPECTIONS SHOULD BE PUBLIC KNOWLEDGE, not 10 people seeing the home and 10 people paying to see the same problems because the bank is the last sayer what you need to put down to buy the home, inspections is a racket .
Why you "steepling" bro?
personally I am not cheering for home prices to go down. I bought early 2021 in georgetwn tx. These buiders are still buiding like gangbusters having deals. I have no debt except the house put down 250k of hard earned equity from CA I'm glad I didnt put don more because I could have I never wanted to come here and pay what I did but it was the market rate then Now because of the economy and interest rates property tax HOA oh wah wah no one can afford a house. Now if I want to sell my house I could loose as much as 50K. Lets all cheer to bring the prices down. So when the do are the people moving into homes going to buy so it will go down in value? You guys sound like its great lets drop the prices so we screw people like me. I know they've gone down and all the poor crying people buy a house that apprises at that value and find a year or so later its gone 20k thats what I hope. So backwards. I didnt cause this yet I'm prob stuck for god knows how long. lkets cheer for more people to loose money. oh but not the investors or buiders and agents
You had a lot of equity from California, and you had a great advantage, I think you should count your blessings. Most people do not have that kind of down payment. I personally am not a big fan of Californians and all the West Coast people because you guys ruined the local markets for the local buyers who cannot afford to buy now because you sold your junk homes in CA and moved in land bringing the prices higher.
Agents just get in the way. It's all about their bloated commissions.
Todd hardly let this man talk. He did most of the talking. It was a good episode though.
Mr. Todd is truly a bout fairness.He knows what he is talking about.I think he is a great broker