Questions about buying a house

B

brandons87

250+ Posts
1) are mortgage rates bottomed out or are they still going to decline over the next few months?

2) from the seller's perspective, do they care how much of a down payment you make or any of the details, or is the only thing they care about what the total offer is on the house?

3) If I want to buy a house and move in immediately (i.e. within the next 30 days or so) does that mean that I'll have to pay more for it?

4) Whats a good initial offer on a house in a steady, non-depressed, non-bubble market? 10% below county appraisal? 5% below appraisal? Just as a starting offer for negotiations. I'm assuming that its pretty stupid to offer the appraisal/asking price right off the bat.

5) Once somebody agrees to sell you their house, whats a typical lead time before you can close the deal and actually move in? I know it varies on a lot of factors, but whats a good average to go by?
 
1. if someone can forecast this with certainty, they could make plenty of money. i don't think i can tell.

2. a seller doesn't care about down payment. your lender does (so, unless the lender is financing, it doesn't matter)

3. no (just find a house that is ready for a move in)

4. hmm, it all depends. but don't expect rounds of negotiations for offers. its primarily a one-time shot, so make it wisely.

5. no idea about the average. but it could be as quick as 2-3 days if both parties has everything prepped.
 
many of your questions depend on the house(s) in question - how long have they been on the market, what the neighborhood is like, condition of the house (all factors to how much to offer), and are the occupants out, ready to move, needing to stay, what's the reason for selling (all things that affect time-to-movein). The short answer is - GET A GOOD REALTOR. They will be able to tell you these things - good ones will know the neighborhood, be able to give you estimates on mortgage rates and prices, market trends, etc. As with any relationship, get a referral.

I have a fantastic one if you need one (no, they aren't family, nor do I work for them - she's just done me solid on both the houses I've bought, and about 12 others for members of my family and friends).
 
The Fed would like to see mortgage rates come down even further, but the problem there is they have direct control over short-term interest rates not long-term rates. Generally speaking rates are fairly low, so don't wait for them to go down another 0.50%.

As a seller of a house I am not a big fan of realtors. They make their money on selling houses quickly, not maximizing the value of the house.

On the buy-side they are the deal of the century. Texas law mandates that the seller pay for the buyer's realtor fees. They should be able to guage market conditions to help you in your negotiating strategies.

Just remember that your interest and the realtor's interest are not perfectly aligned - they want to do a deal quick whereas you may prefer to do a deal cheap (or maybe not do a deal at all).
 
Regarding question 2, a seller may care about the down payment if it is in a competitive area. We received 3 offers the first day our house came on the market. We went with the offer that had the largest down payment, as that speaks to the likelihood the buyer will get all of the necessary financing arranged. Nothing worse for a seller than to essentially take the house off the market and then find out the potential buyer can not get financed.
 
1. Mortgage rates are extremely volatile right now as a result of the uncertainty in the market place regarding both the economy and inflation. I am seeing rate changes as often as 3-4 times a day, sometimes improving sometimes deteriorating. Like one of the responders said, if someone could predict the answer to your question reliably, he or she would be very rich. President Truman was said to have asked for a one-armed economist so he couldn't say, "on the other hand."

I think your best bet is to get pre-approved, let someone trustworthy and competent give to what is known as a good faith estimate on a "pre-tend house" in the price range and payment range that fits your wishes. See what the rate is at that time. They are fairly good right now, most days. Then you can shop with confidence and it shouldn't matter to the seller then what amount of down payment you are making because you are pre-approved at the price range they are asking.

Move in times and closing times are a matter of negotiation and will be based upon both parties, buyer and seller's unique situations. It generally takes us about 30 days from start to finish to close, allowing time for surveys and appraisals but we have closed in 7-10 when all of that sort of stuff has already been done. The lag time with the lenders right now is pretty long as so many have gone under and the ones that are left are getting more business. If I can help you feel free to contact me. Brooks Hiller [email protected]
 
HOw do I get access to comparison info? Is there a website that lists what the surrounding houses sold for and when they sold?

Is there a website where I can see how the appraisal of the property tracks over the years?
 
Sellers do care about more than just the offer's net. FHA and VA loans involve more hassle in terms of ispections, etc., and are considered less desirable.
 
Sorry I came across your post so late. The CAD appraisal will have nothing to do with the list price of home nor should it matter in the OFFER price. Market conditions will reflect the most likely list and sales price.
Are you in the DFW area?
Most sellers are mored concerned with the Type of loan because with a VA loan the buyer is limited in what closing costs he/she can pay. SO the seller picks that up by keeping the sales price up if at all possible.
I would think that you should be able to close on your home within thirty days. Very reasonalble time frame and very doable.
 
Update: I found a house I want to buy. Its 2700 square feet, 5 bedrooms. The only downside is that its an older house (built in 1963).

Home inspection was great, no repairs needed, no danger spots (roof, water heater, foundation, etc).

The asking price is 137,000. I went to Zillow and their estimate value was at 190k. I think they are using the average cost per square foot of houses in the neighborhood and using that to extrapolate their estimate.

So it sounds like this house is being undervalued. The owners paid 105k for this house in 2002. The house has been on the market for about 2 months. According to Zillow, the average home price in that neighborhood appreciates at about 3% per year.

I'd like to save as much money as possible, so I was thinking about making an initial offer 10% below asking (125k). Of course thats just a starting point in negotiations.

Does that sound reasonable? If I got this house I would be staying in it long term.
 
sorry, but zillow can be wildly inaccurate. i surely wouldn't use it for any serious home valuations. where i live in california the county tax assessors' office has a website that lists the home sale prices in my area. either use something like that or ask your realtor for actual comps. using zillow isn't a good way to get comp values.
 
Zillow doesn't work in Texas. It flat out doesn't work, and for the same reason the tax appraisal isn't a good estimate. The state doesn't require sellers or buyers to report how much a sale was. And nobody does, because it would result in a huge tax increase (appraised values tend to lag market value). The best estimate of costs is dollars per square foot in the neighborhood. From there adjust up or down based on cuteness, location, yard, whether it will need to AC or roof in the near future, etc.
 
Zillow is crap. Find a Realtor to represent you. They have access to all the comps. Looking at the actual sale prices for similar properties is the best way to judge the current value of a house. No two houses are the same, of course, so adjustments have to be made for the differences.

At the end of the day, however, valuing a house is not an exact science. The final price can vary based on wide variety of factors not the least of which is motivation of the buyer and the seller.

Throw an educated offer on the table and start negotiating.

Bernard
 
I know that our tax appraisal does not even include ~700 sq. ft addition that the previous owner put in 8 years ago. And the value on their books is about $75-125K below the 'real' value of the home. So it is not the best indicator. The best indicator is a house that recently sold in that 'hood. Now it is not alway available, though.
 
Like everyone else said, get a realtor. It's free for you as a buyer. The seller, while not legally bound, generally pays for both realtor costs. The realtor will help you find comps and determine what your offer should be.

If you buy the house the seller will pay their fees. If you don't buy the house, you owe the realtor nothing. Go get one and take advantage of their expertise.
 
Realtors are a great asset if you are buying a house, esp in a market you are not familiar with. If you are selling, it's a little more debatable.
 
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