Basicaly, how do you sell your home and buy a new one around the same time?
I've got the opportunity to move to a brand new home but would obviously need to sell my current home. I've bought before but was a first time buyer with nothing to sell back then. My current mortgage is a 5/1 ARM and has about two years left at a low rate and then catches up to the current rates. Ordinarily, I would wait until closer to the end of the fixed period but I really need to move and have found a smaller but much nicer house that would cut my mortgage down considerably as well.
I'm assuming a realtor will advise me on how to do this but I probably won't contact one until I've got my current house ready to sell, which will probably be the end of the year. I can wait to put it on the market until the spring if that is preferable for sellers.
Meanwhile, the house I am looking at is on a new estate and some models are built, some are in progress and some are just vacant plots. I wondered if anyone had any advice or experience on how to juggle it all around, what the costs (down-payment) was like and anything else that comes to mind? I did try to visit the show home recently but the staff weren't around and I couldn't wait but I will try again soon and see what they suggest as well.
Thanks for any pearls of wisdom you may have.
I would contact a realtor now just to get some 'first contact' and some advice. If they look after you when they're not "on the clock" that's who you go to when you do want to sell.
We used to be able to get "bridge loans", but that seems to have become more difficult. These days, they try to get both settlements on the same day.
Contact a realtor, and tell them what you are thinking, but that you won't make up your mind, or sign anything, untill the new year. But ask for a walk thriugh to see what needs doing. This is not always the obvious thing. They may or may not accommodate you, depending on how business is.
If you like a house you see, put an offer in and make it conditional on the sale of your house.
I thought your house was fairly new Mark? Why the move?
Don't have any advice, as we have lived in the same house since we bought into the housing market. I don't suppose the market is so cut throat up there,is it?
Don't go round the show home without a realtor/checking into this a bit further.
I heard that
You should always use a buyer's realtor when buying a new home or you will get screwed. You can only do this if the realtor accompanies you on your first visit.
This may not be true, but I would check it out to be sure.
Your realtor should oversee the timing to make sure it works for you. Hell, you're going to pay them enough.
How does this "buyers realtor" work. I know the theory is that they work for the buyer but it is not logical. Unless they have changed thing so they get a flat fee no matter what, they are still paid by the seller. They get paid when the place is sold.
If it is a flat fee no matter what, paid by the buyer, does that reduce the commission? remember that commission is figured into the seller's asking price.
The get half of the realtor's fee. usually 3%. If it's figured into the cost, then the buyer is paying the fee. In this market.... roll ...it could be said it's the sellers who are taking the hit. If you use a buyer's realtor, the person who suffers is the seller's realtor. The fee is usually 6% regardless -if there are 2 realtors, they split it. Or so I understand.
What's logic got to do with it? This is America...
Where's Stelesque when you need her? Of course JohnA also knows all about this, but whether or not we''ll be any the wiser once he's tolds us about it *remanes 2 b scene* (quilty AS CHARGED,,,,,,,,,
;)
That's where I'm confused. The seller pays commision from the monies received. Normally 6%, as you say, half to the listing broker and half to the selling broker. If the Buyers broker is paid the same as the selling broker, what's the difference. They are both paid to sell the house, ie. they don't get paid unless the house sells.
there was a move to have the buyer pay a "buyers broker" a flat fee and reduce the commision because there was no cooperating broker to pay.
OK here is the scoop **for monster ill draw pics * jj
there are realtors who work for the buyer ( buyers agent ) and those who work for the selling ( lister )
no realtor can represent BOTH the seller and buyer "in the same transaction" unless they disclose the relationship with all interested parties ,only this rule is a little differant in some states *
STATES licence realtors and make the rules.
its called the law of agency and its a little complicated
Its advisable to use a realtor when buying a new home as well as a resale . .
the builders have added a realtors fee in the price of the new home and if you dont use one the builder makes more MONEY ....
much like buying plane tickets from the airline itself and saving the airline a travel brokers fee .
as far as selling and buying at the same time you put a deposit on the new home with a contigency "meaning it only goes to settlement if you sell your existing home"
new home builders l give you 60/90 days to sell your existing home before voiding the contract .
it can be to your disavantage to buy before you have sold as you get impatient to sell and may drop your price substantally * ask realtor about that .
if you are looking for a resale to already have sold your home gets you the advantage as you dont have to buy * contingent *and that may get you a lower price for your FIRM offer .
talk to a realtor about this .
use the same one to buy and sell if you can that way they work harder so as not to lose EITHER COMM
before putting home up for sale remember * CURB APPEAL * neat front lawn etc lots of potential buyers will tell the agent to *drive on * if the first look that which is outside is not appealing ,expecially if there are many more homes nearby .
if you sell quickly before your new home is complete put a contigency in the contract to rent back until the new home is ready ....
hope this helps
smile
I thought your house was fairly new Mark? Why the move?
Don't have any advice, as we have lived in the same house since we bought into the housing market. I don't suppose the market is so cut throat up there,is it?
It was indeed new when I bought it but I've never actually liked it and it has too much crappy history. I was much happier the year I couldn't live in it and rented a place a few miles up the road so have been looking for something similar to own. Found a new estate with some nice homes and floor plans I really liked so figured I may as well sell mine and get something smaller but nicer.
I don't think the market is as bad here although it appears to be dipping badly in some areas but not here yet. I think it would be a good time to offload my place, especially as the city I live in is quite backward and has no appeal to me whatsoever.
I'm looking forward to a fresh start.
Thanks for all the tips and advice - John, appreciated your post as well as it confirmed what I was thinking but really had no idea about.
Mark, I remember you talking about moving back to the UK within a couple of years. If you're still even vaguely thinking about that, I can't help thinking it would be unwise to face all the expense of selling up twice...... ???
That's where I'm confused. The seller pays commision from the monies received. Normally 6%, as you say, half to the listing broker and half to the selling broker. If the Buyers broker is paid the same as the selling broker, what's the difference. They are both paid to sell the house, ie. they don't get paid unless the house sells.
there was a move to have the buyer pay a "buyers broker" a flat fee and reduce the commision because there was no cooperating broker to pay.
There again its all tied up in legalize the comm is paid from the proceeds of the sale of the home. so its the end comsummer who pays same as other cost of doing bisiness is added on to the selling price of the product .
the consumer always pays
the comm is paid to whomever the LISING agents broker is .
the LISTING COMPANY then pays the owed commision to the SELLING agents broker ( COMPANY ) .
no agent is paid personally it has to go thought whomever that agents company is ( STATE LAW ) and they take a cut out of it as well, the agent usually gets according to there agreement with the company anywhere between 1 and 2 %
agents are self employed and pay all there own expenses .
Comm is not fixed some companys charge a fixed fee (see internet) for selling the home but its paid upfront wether the home sells or not , much like a add in the paper.and only lasts for a set time .
Some brokers will have a sliding scale of comm but the selling agent agreement is usually at least 3 % so if the fee is less it comes out of the listing brokers comm.
All this is confusing.
i know thats because the STATE is so active in licensing and law making regarding real estate its very heavily regulated and like all things run by govt (fed , state , or local ) its smothered in red tape and regulations ."here im wearing my libertarian hat "
:smile:
I guess my point is that the "buyers broker" may be required to act in the interest of the buyer, if the fee comes out of the commision, they need the house to sell before they get paid. Their interest is the same as what used to be the cooperating broker.
Mark, I remember you talking about moving back to the UK within a couple of years. If you're still even vaguely thinking about that, I can't help thinking it would be unwise to face all the expense of selling up twice...... :???:
Much as I would like to go back, the reality is that it has changed so much, I think I would struggle to readjust. Although I have a decent job here, it was one I talked my way into and did not have the qualifications to back it up. I'm not sure I could repeat the trick here, let alone back in the UK and the advice I got from folks there was to at least have a degree before seriously returning.
A look at salaries in UK put me off also - I'd take quite a pay-cut, doing the same job there. Additionally, I'd have to start again in terms of getting on the property ladder etc. as I had to sell my flat there in 2001. All in all, I've talked myself out of going back and will make the best of it here.
Although most years have been a bit crap here, I really enjoyed the year in the rented house. I could possibly have a nice chunk of change to play with that I did not have before because my house is now worth more than the newer one I am looking at and I've got a bit of equity in it as well. Just seems like a smart move, financially and for quality of life.