Wednesday, January 19, 2011

Home Sweet Home - Chapter 2

So...we looooooved the house we looked at.

It is pretty much around the corner from where we live now.  So same town, same schools.

I mean, there wasn't much NOT to love:
Kitchen with Jenn-Air and Viking appliances *swoon*

Master bedroom with fireplace (which definitely calls for a huDge white bear rug, don't you think?! *Cue 70's porn music* Heh.)

Ginormous room over garage with separate stairway

Pool!  And 3 acres of land!

As you can probably deduce from the pictures, the house definitely is unique.  It was custom built in '99 as a reproduction colonial.  The detail-work throughout is amazing (wide pine floors!).  And the seller's decorative style is also verrrrry "colonial".  While walking through the house, I felt like I should be wearing petticoats.  And I swear I saw a butter churner in the corner!

The realtor explained to us that there is definitely a niche market for this type of home.  That out of 100 people looking to buy, only about 20 would be interested in this, and that the other 80 would lean towards a more modern (what I call "cookie cutter") style of home with the cathedral ceilings, kitchen island, typical 4 bedroom, etc.

After seeing this house, I know now that it's either this...or we stay right where we are, forever and ever amen.
We really liked the seller's realtor, so have been using him.

He has come to our Trenches.  And given us an estimate of what we could sell for.

THAT was depressing.

So, if you were to equate buying a house to driving a car, well, right now I'd say we are in neutral.

Trying to crunch numbers.

Running through all the scenarious:  "Soooo...if we were to offer THIS $ amount, and our offer was accepted...then we would need to sell our house for THIS $ amount in order to not be eating Ramen noodles until the boyz go to college..."

We have not yet made an offer.

But we are expecting to. 

Stay tuned.

20 comments:

Heather said...

It sounds very exciting! I LOVE that house. Gorgeous!

Good luck!

Stopping by from SITS.

J said...

That is a gorgeous house! Good luck!

Vodka Logic said...

I love it. An "old" house with modern ammenities sounds lovely. Good luck

Jen said...

I really like what I see. It looks like a gorgeous house.

I hope it all works out. Can't wait to see where you go from here. :)

Anonymous said...

The house is amazing, wonderful,and spectacular! Good luck with making your decision.

trifitmom said...

love the fireplace in master !!!!! we are right in the midst of negotiating the sale of ours and the buying of a new one. i hate it. hate it. don't go on zillow it is too depressing

Anne said...

Good luck! I love the house. They did a great job of making it look like a period house! All the charm and all most new. Love the kitchen!!! Of course, I have a galley with about 2 linear feet of counter space.

Mommy McD said...

Gorgeous home!
I'll cross my fingers it's the home for you!

Suburb Sierra said...

Amazing. Love it. Especially the replica of the 2009 LCD TV in the bedroom...the detailing is amazing ;) Good luck!!

amanda said...

uhm i don't care if you have to eat ramen the rest of your life - that kitchen is amazing!!

fingers crossed!!

Dysfunctional Mom said...

It looks awesome! Good luck.
We are niche market kind of people...I hate cookie cutter houses. I like old, unique home.

Classy Fab Sarah said...

That house is amazing. And the pool. Swoon.

Marie said...

Love that kitchen ! Good Luck !!

Serenityville said...

holy shit!

Fairly Odd Mother said...

So exciting! Good luck!!!

Rebecca said...

That house is so cool!!! I love the pool and the fact that you'll be piping in 70's porn music.

We're thinking of moving on, but the market is killing me...makes me so mad b/c we did what we were supposed to...no stupid loans and we actually make our payments (imagine that) and we're getting screwed by those that messed up! Arggghhhhhh!!!!

Michele R said...

It looks great.
You were a dream couple walking in the door of the house for the listing agent. meaning you were not represented by an agent so he does not have to split his commission when it sells....and he got the job of being your listing agent. i would definitely make sure he is willing to invest some $$ of his own to make this happen for you, such as helping to pay for closing costs or any repairs that may need to be done, and I certainly hope he would not give you any stories of how high your offer needs to be on this house.

Cheri said...

I agree with the former poster - PLEASE do not use the seller's agent. 2 reasons - one, he WORKS for the seller, He represents THEM. During negotiations, he will get them the best deal, by law. You have no representation AT ALL.

Second, because he will pocket all commission (a huge payday), he will very inclined to make sure this deal goes through.......I am a licensed real estate agent, trust me........I refused to do these "Dual Agent" deals - where I had both sides. It is so unfair to the buyer.

If you haven't signed anything, PLEASE get your own agent - both for teh offer on the new house AND for your listing. Too much at play here, especially if you are near neutral.

If he has offered to "cut his commission" if you use him, RUN. This isn't a good sign....and don't forget - you get NO representation.

Because he works for the SELLER, he can not advise nor advocate for your during negotiations. He cannot give you advice on what to offer and if he DOES, then rest assured he is violating YOUR info to the seller. He is required by law to keep MUM. If you had your own agent, things would be entirely different. Your agent would do research on the best price, and work for YOU. The listing agent is by law required to work for the seller and I bet money he didn't tell you that. If so, why would you say "I love that - no representation". I hope you don't mind my bluntness - you seem to be pretty blunt yourself!

Example: You make an offer and it goes through. Great. Now you have inspections and something horrible comes up and you need your agent to go negotiate a better deal. Except that he works for the seller and will work for THEM to keep the deal together. THIS is where the largest percentage of lawsuits come from - dual agent situations.

Because you have involved the listing agent to this degree, the ethical thing for him to do is let you pick another agent and YOUR new agent can pay the LA a referral fee - very common practice. When an agent has conflicts of interest, they give the deal to another agent for a referral fee. That way, the LA works for the seller, and your agent works for YOU. In price and term negotiating, in dealing with inspections and aftermaths, in keep the deal together if problems arise OR advising you to move on if terrible info comes to light. THIS agent stands to lost BUCK if it falls through so will be very tempted to "smooth things over" that your own agent might be more forthcoming about. I expect one day Dual agent deals will be illegal. For these reasons.

Please at least interview another agent to see the difference. There are SO many horror stories and I am one honest agent to be telling you this. (I'm inactive due to disability, just terribly honest as well.)

Commission - for math purposes, let's say the commission is 6% on a house price of $500,000. (Just guessing here). So, total commission on that price would be $35,000. That will be ll HIS. If YOU had your own agent, it would be split usually 50/50 - he would bet $17,500 and your agent would get $17,500 (and THEN, the agent would pay some percentage to their broker, often 50% as well, so the individual agent takes home $8750 BEFORE taxes, expenses, marketing, etc.) See how that much money difference could be a HUGE motivator?

If you are STUCK using him for some legal reason, you have every right to request his BROKER step in and represent you during deal negotiations so you can ASSURE yourself of a fair deal.

More next post.....

Cheri said...

Continuing.....

Imagine when you list your house - you want your LA to sell your house BUT still represent YOU in negotiations. If he brings the buyer, he won't. IF he goes DUAL Agent, he no longer represents you or the buyer...you are just as if for sale by owner. WHy??? The ideal position is - you have a listing agent, and a buyers agent brings your buyer - 2 agents in involved, each gets individual representation.

Because this situation borders on very unethical, to talk people in to it, agents agree to drop commission a percent or so........why??? Because they KNOW you will feel screwed in the end, so they try to soften it with money savings. Don't bite!!

Good luck!

Cheri said...

Duh, so along with the $35,000 commission on the new house, he will get YOUR commission sale too. When you sign the listing contract (if you must), there is an area where you have to agree or disagree with dual agency - say NO!!! Do not allow him to sell your house himself - require him to either have a buyers agent OR he gets a separate agent to represent the buyer for a referral. Protect YOUR rights. If not, why list? Don't you do it for representation?

Most people misunderstand and think the listing agent should SELL their house. NO. The listing agent should MARKET your home so it is sold - and you retain representation.

In negotiations, the Dual agent cannot answer questions such as "Do you think should offer this much? Would the seller take that?" Illegal to answer that questions, since he KNOWS the other party. Too easy to violate privacy. Your own agent would be allowed to tell you what they know, found out, think, suspect....because they don't owe privacy to the other party. Dual agents must sit "on the fence" and throw their hands up - no advice, no advocating - simply fill out the paperwork. For FULL commission.

As you can tell, I was not highly popular with my colleagues BUT my company hired me to train new agents in a company of over 300 agents! Good luck!

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