looking for an agent who can help us to buy a house in the next 6 months

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Submitted by cadream on March 27, 2008 - 11:36pm

Hi, I am planning to buy a house (>$850,000) in CV area in the next 6 months and looking for an agent who is willing to refund me 2/3rds of the commission paid by the seller. I will find houses on my own. My loan applications in the range of $ 1 million have been pre-approved by two banks this week. I know the process/paper work very well and just need your help on writing up offers when interesting properties come up in future. If you would like to help please email me
cvdream@yahoo.com

Many thanks in advance!

Cadream

Submitted by JWM in SD on March 28, 2008 - 6:27am.

JWM in SD
Ah yes, fools and their money. Have you not read ANY of the posts here ????
Read the Primer again and rethink it.

Submitted by Navydoc on March 28, 2008 - 6:43am.

Yeah that's no BS JWM. Cadream why the rush to buy? I gotta tell you we're DYING to buy a house; the down payment seems like it's burning a hole in my bank account, and I'm looking at the very same price range you are. While I won't be moving to SD for another year, my wife and I have discussed the fact that if conditions in the housing market have not substantially improved we're going to rent a place there. You do understand you will likely lose about $100,000 of your down money in the next year right? If you are ok with that you and I have a VERY different idea about the value of money.

Good luck with that anal probing! Wait, I have to adjust my tin-foil hat.....

Submitted by Reality on March 28, 2008 - 6:46am.

What are you talking about? Fool? The OP MUST be smart, since he has all this money. Right?

Submitted by Ex-SD on March 28, 2008 - 7:06am.

JWM & Navy Doc are telling it like it is.............but, if you insist on buying now, SD Realtor who is regular poster on this site would be a good choice to help you He is also a very straight shooter.

Submitted by snail on March 28, 2008 - 9:08am.

snail
Lets put the math here:
1. You buy $1 Million house represented by a buyer agent.
2. The buyer agent get his/her 3% from the seller agent = $30,000
3. You get back 2/3 of this = $20,000
4. Your property will depreciate 10% this year = $100,000

Why are you so concern about $20,000? If you qualified for $1 Million loan you must make about $250K a year, and 20K is a pocket change for you. You must be a Troll.

Submitted by FormerSanDiegan on March 28, 2008 - 9:25am.

... you must make about $250K a year, and 20K is a pocket change for you.

Huh ? Since when is 8% of one's income pocket change ?

Anyway, home prices in San Diego are broadly lower than 3 years ago. In 6 months the seasonal factors will be in a buyer's favor. Someone buying in Fall 2008 will be in a substantially better position than someone who bought in 2004, 2005, 2006, or 2007. I don't think it will be the bottom this Fall, but I believe that someone buying late this year or in 2009 will NOT regret it in 10 years.

Submitted by Lyra on March 28, 2008 - 9:57am.

why not redfin?

Lyra

Submitted by cadream on March 28, 2008 - 12:49pm.

All good comments and questions. Thanks.

The primary reason to buy a cv house this year is to get my son in a better elementary school. My principle is: to buy a house only when i can afford, and a house to me is the place for family happiness and not a tool for investment. I am prepared enough that I will not have to sell a house in the next 30 yrs.

WRT waiting for one more year to avoid $100,000 loss. It is hard to timing the CV housing market. Who know how much my family will loss/gain on a cv property in 30 yrs.

So why am i care about 2/3 commissions?

I have tested the cv house market by negotiating prices on properties of regular resales, new constructions, bankowned, and short sales with many listing agents in the last 6 months. I know when and how to buy a property in CV. I know the purchase agreement documents/escrow processing to protect my interest. If i do 2/3 of work in my future purchase, it may be reasonable to get 2/3 of the refund. It is not the $ amount that make difference in my life. It is the fairness.

Imagining myself as an agent, I would consider making >$8500 by doing some paper works. I like this board and just want to see if anyone is interested. If not, Redfin will be my back up.

Cadream

Submitted by Diego Mamani on March 28, 2008 - 1:03pm.

You can get in the same elementary school by renting a house of similar quality in the same district. It would be interesting to see the numbers in a buy vs. rent comparison. Is $1 MM the loan amount or the purchase price? What interest rate would one use to compute the opportunity cost of the down payment?

Going back to your original question, there is ziprealty.com, and you can always retain an attorney to represent you or review documents.

Submitted by guitar187 on March 28, 2008 - 1:37pm.

I will email you cadream. I'd be glad to help. You can easily pick up a property 10% below market.

Submitted by cadream on March 28, 2008 - 2:29pm.

It would be great if someone can educate me on buy vs. rent. I have been a home owner for 10 yrs and don't know much about renting markets.

Here are my situations:

Want to live in a house in CV with 4br/3 car garage this year.

The tax bracket this year is in > 30% due to income > $250,000 and little reduction in mortgage interest of the current house. The interests made in the cash accounts all went to IRA. It was painful to mail a check of $$$$$ for additional tax couple days ago, let alone not getting a penny from the goverment refund program or child credit... The only ways i can reduce the tax are by max 401 count and flex acounts.

Busy in my professional job and don't have time to open my own business for tax benefits.

Plan to buy a house in the range of 850k to 1 million with 30% down from a cash account to get a confirming rate around 6% for a 30 yr loan. The new limit of ~720k is going to set next week/month.

thanks.

Submitted by dejams on March 28, 2008 - 2:44pm.

cvdream,

Since you now the process of buying a home in SD, why don't you represent yourself and put in an offer directly to the listing agent? This way you save yourself the commission by lowering the price by 2.5-3% as if you were using an agent. Or Tell the seller/agent that the actual offer is higher by 2.5-3% since you don't have an agent. If the offer is accepted, you also save your self a little bit of money on the property tax. Why pay someone 8K for just writing contract? I am pretty sure you can get a RE attorney to look at your contract for cheaper than that. Just my 2 cents.

Submitted by OMH on March 28, 2008 - 4:11pm.

Like the OP said I don't see the benefit of getting cash back from an agent if you're comfortable with the buying process and know about contingencies, inspections, etc. You could get all the money designated for the selling agent directly from the seller at the close (legally, if it is written into the agreemnt and the lender knows about it), but then your tax base is higher.

The listing agent can give you the purchase form or just Google "California Residential Purchase Agreement".

Submitted by cadream on March 28, 2008 - 4:27pm.

I tried. Besides builders, no list agents took my verbal offers with pre-approval letter seriously unless I allowed them to be my agents. In terms of short sale/or Repos, banks preferred a higher offer and paying 2.5% commission to my offer at 2.5% reduction in price without commission. Anyone can explain?

Submitted by sd2oc on March 31, 2008 - 3:31pm.

cadream, i just sent you an email. i happen to own a 4 bedroom, 3 bath, 3 car garage home in carmel valley that i'm thinking about selling. i haven't hired an agent, and if you don't have one either, we can both save on commission. just a thought...

Submitted by dejams on March 31, 2008 - 5:20pm.

sd2oc,

How old is your house and sqft? I am also looking for one if the price is right. Is it a CV or Poway school district? My email is dejams@yahoo.com.

Submitted by sd2oc on March 31, 2008 - 6:12pm.

dejams, i just emailed you. let me know if you didn't get it.

Submitted by PCinSD on March 31, 2008 - 8:05pm.

Huh. That's kinda ironic. This site just brought together 3 different people that want to engage in a real estate transaction. I wonder if there's more on this site that might be closer to buying than I think. I hope not. When people here start deciding to buy odds are prices are not going to get much lower.

pabloesqobar

Submitted by marion on March 31, 2008 - 8:49pm.

Maybe I'm still asleep because I just don't get the logic of esqobar's post.

Submitted by PadreBrian on March 31, 2008 - 8:30pm.

yep, i would worry about the depreciation, not the commission.

Submitted by jbirdfunk on March 31, 2008 - 9:25pm.

It all depends on how low you can talk the sellers down, and how far you believe the prices in that range will fall, right? If you can get 20% off a already pretty low price in the 850k range it may not be a bad move IMO. I'm looking at doing some 20-25% off low balls at some homes just under a million. I may get nowhere at first but with time I'll prevail.

http://piggington.com/low_ball_offers
http://www.irvinehousingblog.com/2007/09...

Submitted by dejams on March 31, 2008 - 10:10pm.

It does not hurt to hear what people have to offer and perhaps someone willing to strike a deal if they are in desperate situation. I am aware of the board discouraging everyone to wait and buy within couple years but who knows where or when the bottom will hit. If seller is aggressively pricing in 10-20% lower than the current comps, why not strike a deal? I learn from an old wise man (former boss) that it doesn't hurt to ask or listen. It cost you nothing; we are here to learn from each others.

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