Buying a Home Without a Realtor

**Terminated** · 01-02-2012, 09:28 PM

I am doing research and can use all the info I can.

My girlfriend and I befriended a couple who are looking to sell their home due to a new job across the country, and we expressed interest.

They have mentioned they are going to list the house for sale soon, but would rather not go through a realtor. They have owned the house for about 7 years and have made various updates to the kitchen, back porch, and other odds and ends.

There are a couple of a points of "concern" if you will.

- Most of the house is wired to a circuit breaker, and some of the house is wired with the old style fuse box (Home built 1948). I would like to incorporate this into the price of the house, but I'd like to know how big of a deal this is and how I bring it up to them?

- The roof is about 15-18 years old they said, so I will be looking at a new roof in 10 years or so... I can do this myself with my dad, but also would like to negotiate that.

- The windows all look to be original to the home, or at least 30+ years old. The home is complete brick exterior, so I don't know if I want to venture into replacing them all on my own, even though I have replaced windows before.

Has anyone here bought or sold a home without a realtor? What other types of information should I be looking up? I have to find out from them what their normal taxes and bills are like, and I have a ballpark for what they are asking on the home, so I know what I am getting into when being pre-approved, but any help or insight would be greatly appreciated.

Also, if there are things here that I am missing and you'd like to ask about, fire away.

Thanks!

Dan

**blackfive-o** · 01-02-2012, 09:44 PM

Without a realtor, I would seek legal council. Just my .02

**scott5** · 01-02-2012, 10:00 PM

Originally Posted by blackfive-o

Without a realtor, I would seek legal council. Just my .02

I would do the same

**John4cam** · 01-02-2012, 10:10 PM

From what I always understood, it's actually pretty easy to do. I'm sure a google search would get you started. You can always find your own people to do your inspections, and also find your own closing agents.

**mustang50lx** · 01-02-2012, 10:28 PM

You will need a lawyer to check for back taxes and such for sure. Once you buy it you are responsible for all that.

**wick** · 01-02-2012, 11:14 PM

You will never get the loan unless you lay down least 20 percent. With the small "issues" you stated, those are actually big issues. The roof is about done now. Usually get 20ish years from it in the banks eyes...its gonna need replaced first. Then the wiring stuff...that's a no way in their eyes. Get it through a company and get a warranty. You will kick yourself in the ass if you don't. ...ac units are 4000.... mine was good bit didn't last two days. Warranty bought me a new one. Furnace is acting up now...that's next.

**PaxtonShelby** · 01-02-2012, 11:18 PM

Yep - a thorough home inspection is a MUST, and you'll need someone to do a title/lein search. I believe the rate depends on the purchase price - maybe around $1,000 per $100k or so? Been 17 years since I went thru that. We bought our house off the market as well, from a couple who was close to my parents. Saved about $10k in realtor fees, and the seller paid a third party for much of the legal paperwork. We paid the usual title search and inspection fees. Do some research and don't be afraid to go this route if the house measures up - it'll save you money in the long run. If the roof needs done and the electrical needs updated, certainly factor that into the equation. Just be prepared to take care of those issues as soon as possible - roofs typically last about 20 years, and if not done properly, they can go bad much sooner that that. Having a close friend / family member who is a contractor would be a plus. Good luck!

**stevec5ws6** · 01-03-2012, 12:24 AM

I am a realtor, in WV. some little things are different. but here is how i see it.

1. Title search and deed done by a lawyer you trust, and that isn't raping you on price. this costs $500 here on average. ( that's 250 for the title and 250 for the deed) they have the closing in their office.

2. Loan FHA- VAand some others you don't have to have 20 % down. but MOST of the time your are losing your ass with less than 25% down. the banks have what they call PMI ( personal mortgage insurance ) this is an insurance paid for BY you FOR the bank, basically aninsurance policy on you paying your mortgage).

also check the flood plain wv has a neat tool, but PA i don't know about. google floodsmart should get you there. a lot of things appear in an identified flood hazard area that can cost you $200 a month in insurance.

the above poster is right about the roof, banks are actually asking for a copy of home inspections now. which they really have no right to, since you paid for it.

also determine market value of the house, if getting a loan you'll have topay for an appraisal anyway. they will save about 5-7% of the sale price by NOT having a realtor. however you have to do all of the work yourself, finding people for title searches, finding home inspectors, pest inspectors, appraisal, being there to let the appraiser in, etc.

also wouldn't hurt to have an electrician give you a quote on bringing the house up to code. If you have a friend that's in realestate, or a person you trust, contact them, many times they will do the paperwork and stuff for the sale that will protect you for a drastically reduced fee. 2-3% max. sometimes a flat fee.

anything SAID is meaningless . i don't care what it is, if it's not on paper, it didn't happen.

Good luck, i don't get to check in here often so feel free to email me or PM me ( that should send me an email saying i have a PM)

**Terminated** · 01-03-2012, 01:03 AM

Yes the roof is pretty much the least of my worries, I can get permits for that and have it done at a reasonable price, it's the electrical that really concerns me, because it would need to be up to code, and who knows what we may get into once an electrician inspects it. I would definitely get a home inspection done beforehand, there is no doubt about that.

The house is assessed at about 30% less than what the 2004 sale price/2011 asking price is, but it's on the edge of the city and right near Baldwin Boro, so the area plays a part of it I guess.

Thank you for the heads up so far guys, they are trying to sell by May and I'd like to work quickly, but I don't want to get myself into a big ass mess.

FWIW it does have a new furnace and new appliances that will come with the house.

Edit: I have been Google'ing and bought the "For Dummies" book, but it's also good to have firsthand real-world advice and experiences from local folks. Keep it comin!

**wick** · 01-03-2012, 10:11 AM

I should have been a little more specific about two things. First being the 20% . That's for what is called a conventional loan. If you want to get the FHA loan, you can have all the permits you want....if the roof isn't replaced, the electrical isn't up to code and it fails the inspection, you wont be getting a house. That's the second thing. Trust me, I just bought a house. The inspectors (there are a few) rake the house with the finest of fine tooth combs. The seller is going to have to sale below what the house is valued at or you will have to come up with the difference in cash and you MUST show a paper trail of where the money comes from. No cash you have been saving under the mattress. No cash you got from selling a car for 10,000 and saying you sold it for $500 to save taxes. In their eyes, you only got $500. The other $9500 you will have to show came from somewhere....that's just an example. With the new year, codes changed.. inspectors will find a problem even with new houses. So, be prepared for some serious let downs. I have a very good friend whome is a real estate attorney. Im sure for a fee, he would be able to help you out.

**TooFast98Cobra** · 01-03-2012, 10:17 AM

^^^well said

**wick** · 01-03-2012, 10:17 AM

There are Sooooo many factors in buying a house. I have the list of pest inspectors, home inspectors, all that fun stuff that's bank approved. Not sure what the asking price is . But make certain that there is absolutely nothing wrong with the house. It must be better than new. No dampness in basement. No flickering lights. Plumbing all works correctly as in no slow drains. He will turn on every faucet in the house wide open and leave it run for half an hour. He will check every window, if one leaks, it isn't good. You also have to get with the boro code enforcement officer and get an occupancy permit. No feeling paint anywhere. Inside or out.

**wick** · 01-03-2012, 10:18 AM

Thanks bill!!

**TooFast98Cobra** · 01-03-2012, 10:21 AM

The time to buy is right now, buyers market

**SonofaBish** · 01-03-2012, 10:39 AM

I agree with much of what was said above.... the bank won't deny you from buying a house if its got some SMALL issues, but these will be documented in the home inspectors report.... a home inspector is definitely a seller's worst enemy... they find EVERYTHING! it could be so much as "you need an extra nail right there" or "you need to add a little caulking right there" etc... things like this won't fail the inspection... but, the inspector will also find BIG issues that you'd never find on your own, such as mold, etc... its definitley the best $300-$500 you can spend...

Title search will cost you 1% of purchase price.... dumbest thing i've ever heard of... in today's modern, electronic age, it takes someone 3 seconds to determine if there's any liens etc on the home... just a good way to rip off consumers

Definitely seek legal advice.....

**TooFast98Cobra** · 01-03-2012, 10:43 AM

Originally Posted by SonofaBish

I agree with much of what was said above.... the bank won't deny you from buying a house if its got some SMALL issues, but these will be documented in the home inspectors report.... a home inspector is definitely a seller's worst enemy... they find EVERYTHING! it could be so much as "you need an extra nail right there" or "you need to add a little caulking right there" etc... things like this won't fail the inspection... but, the inspector will also find BIG issues that you'd never find on your own, such as mold, etc... its definitley the best $300-$500 you can spend...

Title search will cost you 1% of purchase price.... dumbest thing i've ever heard of... in today's modern, electronic age, it takes someone 3 seconds to determine if there's any liens etc on the home... just a good way to rip off consumers

Definitely seek legal advice.....

actually 7to10 business days bish, not 3 seconds. lol been doing it for close to 12 years now.

**Terminated** · 01-03-2012, 10:45 AM

Yea these are some of the things I was thinking, a home inspector may find these things and that will alter the asking price...

Thank you for all the info guys, looks like I will have some work to do this week!

**stevec5ws6** · 01-03-2012, 11:36 AM

Originally Posted by Terminated

Yes the roof is pretty much the least of my worries, I can get permits for that and have it done at a reasonable price, it's the electrical that really concerns me, because it would need to be up to code, and who knows what we may get into once an electrician inspects it. I would definitely get a home inspection done beforehand, there is no doubt about that.

The house is assessed at about 30% less than what the 2004 sale price/2011 asking price is, but it's on the edge of the city and right near Baldwin Boro, so the area plays a part of it I guess.

Thank you for the heads up so far guys, they are trying to sell by May and I'd like to work quickly, but I don't want to get myself into a big ass mess.

FWIW it does have a new furnace and new appliances that will come with the house.

Edit: I have been Google'ing and bought the "For Dummies" book, but it's also good to have firsthand real-world advice and experiences from local folks. Keep it comin!

Assessed ... That is for tax purposes appraisal is real time snap shot of the market in sc the assessment can be 3 yrs old and is never right for the appraisal.

**somethingclever** · 01-03-2012, 12:22 PM

Don't put you and your girlfriend both on the title...only 1 of you.

Lots of home inspectors in the phone book - get one.

Before spending ANY money on anything, make sure you can get financing unless you're a cash buyer.

**SonofaBish** · 01-03-2012, 12:24 PM

Originally Posted by TooFast98Cobra

actually 7to10 business days bish, not 3 seconds. lol been doing it for close to 12 years now.

but why?? Surely no one has to go and research anything in a courthouse anymore?? type the parcel # (or whatever) into a computer system, and it will spit everything back out........

Lets put it this way, if its not a computerized system, then someone has really got to step up their game....

Do you send it out to another company to do the title search?? If so, 7 to 10 days makes sense, as work will pile up.... but for THAT company that you send it to, is it not as simple as a computer database lookup?? The person whose desk it comes across, even if it sits there for 4 days before they get to it, they don't actually go in person and look up paper documents do they?? If its a 10 second computer lookup, then why the insane cost?

Maybe i dont understand the process correctly - which is a good possibility - as its never been explained to me, i'm just making guesses... in the days when everything had to be researched in person, at a courthouse, looking through paper documents, this kind of cost made sense... but even still in today's technological day?

now you've got me wondering - i'm gonna have no choice but to look it up! LOL