I have read this thread, lots of good advice. Let's talk money for a second, and proceeding with the plan to avoid a pushy re agent.
The first thing Kev needs to do is get pre-appoved for a mortgage loan. He cannot make an offer that would be accepted without it. He is going 95 ltv. That's fha. Does he know about the offer sheets sitting in re offices? Does he know that his own bank or some online source have the best deal, or likely do not? Does he know which banks have the best appraisers in a rising market? Does he have any influence due to volume on those appraisers? Does he know the relative documentation requirements of the various lenders? OK, he wings it, let's assume he gets lucky and somehow picks the best combination of the above.
He decides to make an offer. He will be calling the listing agent. He will have no idea as to authenticity of the list price relative to its true market value. Is it inflated by the owners perception of its value? A buyer agent can analyze that pretty much instantly, and advise Kev accordingly. He can also present the offer in concert with a selling agent to get the seller to come to his senses, so to speak. Without an agent of his own, he will be writing his offer to the selling agent and awaiting a response from the seller, with no input. The selling agent cannot advise Kevin to make any other offer but full price. The best he can do is tell Kevin that he must present all offers, and cannot disclose that the seller is fuckkin' nuts for listing at this price, for example...
The offer is accepted. Does Kev know which inspectors are the best bang for the buck? Which ones do the best job, the most knowledgeable, especially as regards HVAC...
The appraisal comes back 4,000.00 below contract price. Does Kev know how to negotiate getting the seller to eat that...there are "tricks to the trade" and now we are dealing in emotions...
Inspector finds shit. What should Kevin let slide, what should Kevin insist on correcting? Buyer agent can give him advice...
Flood plain. 100 yr 1% likelihood. It is not eyeballed. FEMA establishes it, FEMA moves it. Wayne can tell you what happens when a lender makes you get Flood insurance, and your buyer agent can show you where your prospective house is relative to those lines. I can go on, but running out of characters. As far as appreciation..If interested I can discuss that also, a lot was left out.
Originally Posted by: dfosterf