New Homebuyer - tips/tricks/unnecessary costs? (1 Viewer)

[josefrees]

To be quite honest, you have to have the best building inspectors you can to get the whole picture. That way you can negotiate the costs onto the seller. Pretty much every aspect of living and the house need to be analyzed. One stupid little thing will often turn into a problem quite easily.

Since you are paying in cash and will have no mortgage this is definitely a big decision and I hope you have a large capital pool for which to work with. Make sure you have plenty left over post purchase before you do this.

Depending on your what your live is like now and what you want in the future are both very important. If you want to keep it for all time your options are more wide open because you can rationally purchase anywhere while if you want to eventually move on and make some money reselling it, you may want to move somewhere property values are growing (although at least in this area that means the property tax goes up) so that when you do sell you can outpace the monetary inflation and get your value back at least. Don't forget to ask the owner about their taxes and utility bills!!!

I do not know how handy you are but I assure you investing in learning stupid random house crap will save you tons of money and time. Try and befriend a dependable plumber.

Since you are paying cash you have the ever so precious mortgageless property commodity. This really opens your finances up.

 

[Random]

Paying cash should give you huge leverage on your offer. This will also give you the opportunity to choose your own title agency, some of which will include title insurance in the search fee. If you do pay cash, open an equity line (a year after close), for access to the cash should you need it.

 

[eoMMan]

What is the weather like in the area? What are the biggest threats (hurricanes, snowstorms, floods,etc.)?

 

[Warrior]

Real estate is so location specific it's hard to give advice. I will add this though, since title insurance came up - if I have a client that refuses to get title insurance I fire them. It's not worth the headache to me for one real estate deal.

Can you unpack this? Why is it a headache for you if they don't buy title insurance? Thanks in advance.

 

[the moops]

. I'm hoping I can finagle a washer/dryer/refrigerator in the negotiations so at least I'll have that taken care of.

95% of homes will come with those things. It's not really a negotiation.

 

[Otis]

. I'm hoping I can finagle a washer/dryer/refrigerator in the negotiations so at least I'll have that taken care of.

95% of homes will come with those things. It's not really a negotiation.

Throw in the roof for no extra charge and you've got yourself a deal!!!!

 

[Warrior]

Just checked this thread again, thanks for all the great tips!

There was a town home on the market about a month ago. On my way to scout out the area, I got in a minor car accident which derailed my scouting. The next day, the place was put under contract. I was pretty bummed because the pictures looked exactly like what I was looking for. Great location, layout, all the boxes were checked. Well a couple days ago, it came back on the market! The deal fell through at the last minute because of financing. I'm hoping/thinking the cash offer would really give me leverage on this one!

I spoke to my RE agent on Wednesday when I saw the listing was back up and asked them to see it ASAP because I was really interested in the property. I've been really picky and this place is the first that seems to offer everything I'm looking for in a home. It was built in 2008 so I'm thinking/hoping there won't be too many surprises and that the pictures tell most of the story. I told them how interested I was in it so that they would get the ball rolling, worried that someone might snatch it up again before I get a chance to check it out. My RE agent said they'll contact the seller so I can see it that night if possible.

Well, I get a call from the agent a couple hours later letting me know the situation. The seller was really frustrated by the financing falling through, they really want to get the process over with quickly this time and want to make sure there are no chances of it falling through a second time. This sounds like perfect news for me...until the next part. According to my agent, they have already received multiple offers on the house (just listed less than 24 hours prior). It sounds like a few others have been in my position - very interested and glad to see it's back on the market. However, the sellers have an open house planned on Sunday and want to ensure that everyone who wants to see the place gets an opportunity to. Therefore, they are not considering any offers prior to the open house. They will wait until Sunday night, ask for all interested parties to submit their best offer, and go with the highest one. They don't want to go through all that hassle again and with so many buyers interested, they are confident they'll get an offer they like.

So my question is this: Do you guys think I'm getting the run around? Maybe my agent communicated my high level of interest to the buyer's agent, and they're playing me with the "make your highest offer or you won't get this place, since there are so many others interested" game? It seems like they could be BS'ing me to get me to bypass the negotiations and give them a high offer from the get go. Assuming I see and really like the place on Friday night, I feel like I'll be in a bind. I would normally offer a good bit less than asking price and try to get them to drop a bit at least.

The price they're listing this place at is what I would consider slightly above market value. This is based on comps of places that are almost identical that were sold fairly recently in the same neighborhood. I'm pretty confident that it's priced at about 5k-10k higher than it should be under normal circumstances. However, if buyers really are chomping (sp?) at the bit, I may only get one shot at an offer.

Have you guys ever heard of a seller/agent playing this game? My agent seems pretty honest and straight forward, but I haven't known him that long and I'm sure they'll want to sell me a house as soon as possible to collect their portion. It's hard to tell if I'm getting the run around. Have any of you come across this tactic? If not, maybe I'm just being too skeptical.

 

[the moops]

Not uncommon at all to ask for everyone to submit best offer by a certain time.

 

[krista4]

Not uncommon at all to ask for everyone to submit best offer by a certain time.

Happens all the time. Don't know where you are, but here in Seattle the market is so hot that pretty much every decent listing is doing this. They all give a certain date for offers and look at all of them simultaneously. We bid on four houses, all with at least four offers, before "winning" the one we bought, which had seven offers. Here the average sale price is about 10% over list right now, too.

Have your agent do the comps, and bid the most that you are comfortable with, knowing you're only getting one bite at the apple. As long as you're comfortable with whatever your top price is, then you're good. Also if you're getting an appraisal even with an all-cash offer, that will give you some comfort.

Finally, in Washington we were able to put in an escalator on our offers, which said we would bid $2000 more than the highest all-cash bid, with a cap of $xxxxx. So we ended up paying about $20K less than our top offer instead of the full amount. Don't know if this is something that is done where you are.

 

[Dragons]

Your agent's best interest is for you to buy a house quickly, so he can collect his commission. The difference in $5-20k on the selling price is measured in $100s vs $1000s if he doesn't complete a sale.

Don't get caught up in a ridiculous bidding war. There are other houses. You are in a strong position paying cash, especially if they just got burned with financing. Make a reasonable offer and let it play itself out. Also, your financing is not limited by an appraisal, so you are in a dangerous position to overbid.

 

[Warrior]

Not uncommon at all to ask for everyone to submit best offer by a certain time.

Happens all the time. Don't know where you are, but here in Seattle the market is so hot that pretty much every decent listing is doing this. They all give a certain date for offers and look at all of them simultaneously. We bid on four houses, all with at least four offers, before "winning" the one we bought, which had seven offers. Here the average sale price is about 10% over list right now, too.

Have your agent do the comps, and bid the most that you are comfortable with, knowing you're only getting one bite at the apple. As long as you're comfortable with whatever your top price is, then you're good. Also if you're getting an appraisal even with an all-cash offer, that will give you some comfort.

Finally, in Washington we were able to put in an escalator on our offers, which said we would bid $2000 more than the highest all-cash bid, with a cap of $xxxxx. So we ended up paying about $20K less than our top offer instead of the full amount. Don't know if this is something that is done where you are.

Oh wow, I didn't know this was an option anywhere. I'll take a look to see if it's possible in VA. Very interesting.

Good to hear that the "make your best offer, one shot" thing isn't too uncommon. At least I know I'm not falling for some first time buyer sucker trick.

 

[Uruk-Hai]

Where in VA are you, Warrior?

If you don't get this one, don't panic (which is a common feeling, especially among first time buyers). There are always more good fits for you out there.

My first time buying a home, we lost out on The One and my wife & I were both extremely upset. Three weeks later we found one that was an even better match.

 

[Random]

Your agent's best interest is for you to buy a house quickly, so he can collect his commission. The difference in $5-20k on the selling price is measured in $100s vs $1000s if he doesn't complete a sale.

Don't get caught up in a ridiculous bidding war. There are other houses. You are in a strong position paying cash, especially if they just got burned with financing. Make a reasonable offer and let it play itself out. Also, your financing is not limited by an appraisal, so you are in a dangerous position to overbid.

Be careful. Step back and make an offer you're comfortable with.

Another thing that could help your position (and possibly get the house without the highest offer) is to offer cash, as is (no contingencies). To make this work for you bring your inspector with you to the open house (or schedule another showing) and make your offer based on what he says.

 

[Warrior]

Thanks guys. I'm in Richmond, VA.

 

[Yankee23Fan]

Real estate is so location specific it's hard to give advice. I will add this though, since title insurance came up - if I have a client that refuses to get title insurance I fire them. It's not worth the headache to me for one real estate deal.

Can you unpack this? Why is it a headache for you if they don't buy title insurance? Thanks in advance.

Because here real estate is a flat fee and it's too low to begin with. If I charged hourly for a real estate deal I could literally (in the proper sense) do 3 real estate files a month and nothing else and I would make as much if not more than I make right now. So if there are problems post closing that I could have figured out and dealt with prior to closing, then I can't charge to deal with that and have to do more free work. There are also malpractice issues. I can't represent a client buying a house and it turns out the seller doesn't own it becuase of a title issue.

The discussions in here don't match up to the way we handle real estate here so it's clearly different in other states. I don't write title opinions. I couldn't possibly even begin the desire to want to do that nor would my clients be able to pay me enough. That is what a title company is for. They do a search for a buying and a binder is put together with all the easements and restrictions, filed maps, chain of title, judgment and tax search and everything else so we have a clear picture of the property. In order to turn that binder into a policy at closing I have to help clear anywhere from 5 to 50 title calls in the binder. Almost always they are simple things - like pay the premium at closing. Every now and then there are past owner judgments that were never cleared that still run with the property, improper deeds in the chain, and a myriad of other things.

We are actually dealing with a title issue right now for our buyer. The seller's attorney screwed up something royal in the chain of title as he has represented everyone who has sold this property for the past 30 years - kinda interesting and unique in that way. And he pooched the screw in one of the last transactions. It's a multi-million dollar transaction and our buyer can't get clear title to the property now and 5 companies, 2 law offices and a few really pissed off rich people are trying to fgure out how to handle the situation with everyone blaming each other. But at the end of the day, the liability for anything that falls apart if there is liability isn't my problem. It's the title company's. Because that is what they are paid for.

Now, pay me hourly for a real estate deal, let me make the $12,000 per deal I would make in that set up and I'll write whatever letters you want me to write.

 

[Henry Ford]

Real estate is so location specific it's hard to give advice. I will add this though, since title insurance came up - if I have a client that refuses to get title insurance I fire them. It's not worth the headache to me for one real estate deal.

Can you unpack this? Why is it a headache for you if they don't buy title insurance? Thanks in advance.

Because here real estate is a flat fee and it's too low to begin with. If I charged hourly for a real estate deal I could literally (in the proper sense) do 3 real estate files a month and nothing else and I would make as much if not more than I make right now. So if there are problems post closing that I could have figured out and dealt with prior to closing, then I can't charge to deal with that and have to do more free work. There are also malpractice issues. I can't represent a client buying a house and it turns out the seller doesn't own it becuase of a title issue.

The discussions in here don't match up to the way we handle real estate here so it's clearly different in other states. I don't write title opinions. I couldn't possibly even begin the desire to want to do that nor would my clients be able to pay me enough. That is what a title company is for. They do a search for a buying and a binder is put together with all the easements and restrictions, filed maps, chain of title, judgment and tax search and everything else so we have a clear picture of the property. In order to turn that binder into a policy at closing I have to help clear anywhere from 5 to 50 title calls in the binder. Almost always they are simple things - like pay the premium at closing. Every now and then there are past owner judgments that were never cleared that still run with the property, improper deeds in the chain, and a myriad of other things.

We are actually dealing with a title issue right now for our buyer. The seller's attorney screwed up something royal in the chain of title as he has represented everyone who has sold this property for the past 30 years - kinda interesting and unique in that way. And he pooched the screw in one of the last transactions. It's a multi-million dollar transaction and our buyer can't get clear title to the property now and 5 companies, 2 law offices and a few really pissed off rich people are trying to fgure out how to handle the situation with everyone blaming each other. But at the end of the day, the liability for anything that falls apart if there is liability isn't my problem. It's the title company's. Because that is what they are paid for.

Now, pay me hourly for a real estate deal, let me make the $12,000 per deal I would make in that set up and I'll write whatever letters you want me to write.

I don't do real estate work, but there are definitely lots and lots of prospective clients I turn down because the malpractice risk is higher than the financial reward can be. It's why I don't do social security disability cases unless they're attached to a P.I. case I'm already working on.

 

[johnnycakes]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

 

[Henry Ford]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

 

[RUSF18]

Not uncommon at all to ask for everyone to submit best offer by a certain time.

Happens all the time. Don't know where you are, but here in Seattle the market is so hot that pretty much every decent listing is doing this. They all give a certain date for offers and look at all of them simultaneously. We bid on four houses, all with at least four offers, before "winning" the one we bought, which had seven offers. Here the average sale price is about 10% over list right now, too.

Have your agent do the comps, and bid the most that you are comfortable with, knowing you're only getting one bite at the apple. As long as you're comfortable with whatever your top price is, then you're good. Also if you're getting an appraisal even with an all-cash offer, that will give you some comfort.

Finally, in Washington we were able to put in an escalator on our offers, which said we would bid $2000 more than the highest all-cash bid, with a cap of $xxxxx. So we ended up paying about $20K less than our top offer instead of the full amount. Don't know if this is something that is done where you are.

Just curious on this as I've never bought RE...so instead of actually giving a number, you said you'll pay $2K more than what the highest they received from everyone else? Is there anything stopping them from not BSing about what that price is and basically saying they got offered your cap less $1,999?

 

[johnnycakes]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller?

Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

 

[Henry Ford]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller?

Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

Know a lot of sellers who keep the entire amount of the sales price in an account for the rest of their lives, just in case the buyer decides to sue?

A judgment isn't a pile of money. It's a piece of paper, suitable for framing, and it might be worthless.

 

[johnnycakes]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller?

Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

Know a lot of sellers who keep the entire amount of the sales price in an account for the rest of their lives, just in case the buyer decides to sue?

A judgment isn't a pile of money. It's a piece of paper, suitable for framing, and it might be worthless.

Do you sell title insurance as a sideline or something?

 

[Henry Ford]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller?

Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

Know a lot of sellers who keep the entire amount of the sales price in an account for the rest of their lives, just in case the buyer decides to sue?

A judgment isn't a pile of money. It's a piece of paper, suitable for framing, and it might be worthless.

Do you sell title insurance as a sideline or something?

No, I turn away prospective clients who want to sue someone who doesn't have any money. And when that lawsuit has to do with the loss of their most expensive assets, I feel awful about it.

 

[johnnycakes]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller? Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

Know a lot of sellers who keep the entire amount of the sales price in an account for the rest of their lives, just in case the buyer decides to sue?

A judgment isn't a pile of money. It's a piece of paper, suitable for framing, and it might be worthless.

Do you sell title insurance as a sideline or something?

No, I turn away prospective clients who want to sue someone who doesn't have any money. And when that lawsuit has to do with the loss of their most expensive assets, I feel awful about it.

Ok... Seriously, thanks for the input. I'll give the title insurance rip-off some more thought, then. Closing isn't until the end of August, so I have time to think about it. I might just take it, then.ETA: we should mark this thread, then... Next time someone asks of the FFA has actually changed someone's mind on something, we can cite this example

 

[Henry Ford]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller? Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

Know a lot of sellers who keep the entire amount of the sales price in an account for the rest of their lives, just in case the buyer decides to sue?

A judgment isn't a pile of money. It's a piece of paper, suitable for framing, and it might be worthless.

Do you sell title insurance as a sideline or something?

No, I turn away prospective clients who want to sue someone who doesn't have any money. And when that lawsuit has to do with the loss of their most expensive assets, I feel awful about it.

Ok... Seriously, thanks for the input. I'll give the title insurance rip-off some more thought, then. Closing isn't until the end of August, so I have time to think about it. I might just take it, then.

Depending on what it costs where you live, you're probably looking at about $1-$2K to protect an asset worth hundreds of thousands of dollars.

 

[johnnycakes]

Question on title insurance:

In the past, when buying a property, I've always had to buy lender's title insurance because... they have the money and that was a requirement of getting financing.

I'm buying another property now... have financing approved.... lender is axing me if I want owner's title insurance. I think it's a waste of money.

Fwiw, I'm buying from the first owner of the property.

What says the FFA?

Adam is the first owner of the property. You might be buying from the first homeowner, but that land has been around a lot longer than anyone who's currently living.

OK.... good thought. I understand there are risks, but doesn't the seller warrant clear title at closing? If so, whom does owner's insurance really protect... the buyer or the seller? Also.. is this something on which I can shop around and get quotes? I just think this is a huge profit center for the lender. I've never had owner's title insurance before... never had a problem, and I have sold a few properties. Not a lot of properties, but a few. I'm sure there are horror stories out there; there always are. But if it is something that's necessary, I want to shop around for the best price.

Know a lot of sellers who keep the entire amount of the sales price in an account for the rest of their lives, just in case the buyer decides to sue?

A judgment isn't a pile of money. It's a piece of paper, suitable for framing, and it might be worthless.

Do you sell title insurance as a sideline or something?

No, I turn away prospective clients who want to sue someone who doesn't have any money. And when that lawsuit has to do with the loss of their most expensive assets, I feel awful about it.

Ok... Seriously, thanks for the input. I'll give the title insurance rip-off some more thought, then. Closing isn't until the end of August, so I have time to think about it. I might just take it, then.

Depending on what it costs where you live, you're probably looking at about $1-$2K to protect an asset worth hundreds of thousands of dollars.

IIRC, they're quoting me ~$1,500. That's 15 wipes with a $100 bill

 

[Henry Ford]

Depending on what it costs where you live, you're probably looking at about $1-$2K to protect an asset worth hundreds of thousands of dollars.

IIRC, they're quoting me ~$1,500. That's 15 wipes with a $100 bill

If a client told me he was buying an asset worth $300,000.00 and that he could make sure he didn't lose that money outright because of a country lawyer's screw-up 200 years ago with an additional $1,500.00 outlay, I would tell him without hesitation that he'd be foolish to turn it down.

 

[johnnycakes]

Depending on what it costs where you live, you're probably looking at about $1-$2K to protect an asset worth hundreds of thousands of dollars.

IIRC, they're quoting me ~$1,500. That's 15 wipes with a $100 bill

If a client told me he was buying an asset worth $300,000.00 and that he could make sure he didn't lose that money outright because of a country lawyer's screw-up 200 years ago with an additional $1,500.00 outlay, I would tell him without hesitation that he'd be foolish to turn it down.

And $300k in Lexington won't buy you an outhouse, fwiw.

 

[Henry Ford]

Depending on what it costs where you live, you're probably looking at about $1-$2K to protect an asset worth hundreds of thousands of dollars.

IIRC, they're quoting me ~$1,500. That's 15 wipes with a $100 bill

If a client told me he was buying an asset worth $300,000.00 and that he could make sure he didn't lose that money outright because of a country lawyer's screw-up 200 years ago with an additional $1,500.00 outlay, I would tell him without hesitation that he'd be foolish to turn it down.

And $300k in Lexington won't buy you an outhouse, fwiw.

I know.

 

[krista4]

Not uncommon at all to ask for everyone to submit best offer by a certain time.

Happens all the time. Don't know where you are, but here in Seattle the market is so hot that pretty much every decent listing is doing this. They all give a certain date for offers and look at all of them simultaneously. We bid on four houses, all with at least four offers, before "winning" the one we bought, which had seven offers. Here the average sale price is about 10% over list right now, too.

Have your agent do the comps, and bid the most that you are comfortable with, knowing you're only getting one bite at the apple. As long as you're comfortable with whatever your top price is, then you're good. Also if you're getting an appraisal even with an all-cash offer, that will give you some comfort.

Finally, in Washington we were able to put in an escalator on our offers, which said we would bid $2000 more than the highest all-cash bid, with a cap of $xxxxx. So we ended up paying about $20K less than our top offer instead of the full amount. Don't know if this is something that is done where you are.

Just curious on this as I've never bought RE...so instead of actually giving a number, you said you'll pay $2K more than what the highest they received from everyone else? Is there anything stopping them from not BSing about what that price is and basically saying they got offered your cap less $1,999?

We offered $2K more than the highest cash bidder as we were all cash and that shouldn't be considered alongside people with contingencies. But, yes, there are ethical rules, contractual claims, laws, and all that jazz to keep it honest. As I mentioned, in this instance we ended up $20K lower than what our stated ceiling was.

I had never done this before but it seems to be quite common here in WA. Have bought properties in several other jurisdictions and hadn't seen that, but maybe it's just a newer thing.

 

[krista4]

Is the OP going to update here? :(

 

[Chadstroma]

I will say I am most definitely looking forward to the day when I pay off my mortgage. That has to be an unbelievably good feeling to not have one.

At 3.25% with 27 years left, I have no interest in paying my mortgage off early. (pun intended)

 

[Chadstroma]

My tip is to not skimp on things like getting an inspection done. Find a good inspector that has great references.

Think of it like this- this is most likely the biggest purchase/investment you will ever make. Do you really think not spending a few hundred dollars for certain things that are designed to protect you is the best route to go with that?

 

[msommer]

I will say I am most definitely looking forward to the day when I pay off my mortgage. That has to be an unbelievably good feeling to not have one.

Financially speaking, I'll be looking forward to the day that my kids graduate from college. Going the private school route, they cost me more than my mortgage does and at least a house is some sort of guaranteed investment.

hopefully they don't decide on a major like history or european studies

Funny, one of my nieces and my nephew both started American studies in Copenhagen. One switched to business as a major and the other is trying to become an author. Both realized that future prospects were extremely limited. At least they learned Spanish...

 

[mr roboto]

Don't follow Kristas advice unless you want to end up with 7 homes in 3 continents.

 

[Uruk-Hai]

My tip is to not skimp on things like getting an inspection done. Find a good inspector that has great references.

Think of it like this- this is most likely the biggest purchase/investment you will ever make. Do you really think not spending a few hundred dollars for certain things that are designed to protect you is the best route to go with that?

Yep. For my last purchase, I checked around for awhile and found the biggest ### hole inspector I could. That dude was 6 hours doing his inspection (on a 1400 sq ft house with basement) and sent me a 70 page report. Some of the stuff he found was really nitpicky, some I asked the seller to fix, and some I took care of. But at least I knew everything that could possibly be an issue. $275 in a rural area like mine, but I'd pay 4x that anywhere for the knowledge.