It's time to take the big leap! Let's buy a house!
October 17, 2016 11:43 AM Subscribe
Starting our home buying journey slightly sooner than expected, what do we absolutely need to know/do?
We are going to relocate to southwest Vermont hopefully in the next 6 months. We are looking around Shaftsbury, Arlington, Woodford. We are looking at rural properties on at least 2 acres.
We weren't expecting to move quite yet, but while getting an idea of the market up there, we stumbled upon our dream house. Jumping far ahead in theory, we'd be moving a little faster than expected. I have spent the last year educating myself on the process with books and the internet, but it's such a huge thing and I want to make sure I do it right.
We have spoken to a local credit union and have been told we will definitely be able to borrow the amount we need. We were actually approved for 3 times what we want but we're not interested in spending any more.
I have made an appointment for us to go and see the house on the 29th while we are visiting for the weekend. The sellers agent will be showing us around.
- Should we have a realtor lined up before we see the house for the first time? Can we wait until we've actually seen it in person? I know we will need to be pre-approved before we get an agent, but we will wait on that if we can go see it alone initially.
- It's at the top of our self imposed budget so we would not go through with the purchase if there is any major work that needs to be done. We are allowing for a $10k contingency after all purchase costs but we don't want to be replacing a roof/replacing a boiler/spending thousands on a major issue using that money. What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
- I'm still kind of confused about how much we will need to set aside in escrow for taxes, is that something we can ask the sellers agent/our buyers agent?
- I'm reading mixed things as to the buyers agent commission. Is that paid by us or is it paid by the seller or does it depend on the house?
- I'm pretty sure of the answer to this, but we should use a buyers agent rather than going with the sellers agent right? Has anyone gone with the sellers agent and not regretted it?
- Is title insurance something we should be purchasing?
- Any other advice on buying a house out of state to relocate, would be so appreciated.
Basically, it's our dream house but we do not want to go in guns blazing with only our emotions to guide us. Buying a house is a huge deal and we want to make the right decision.
Please, if there is anything I'm missing I'm happy to fill you in.
Sidebar - If anyone has any input on how someone with admin/receptionist experience could look for a job (in a creative setting ideally) I'd love to hear it. Willing to work in Albany, NY or Bennington, VT (preferable). And any input on what salary/hourly rate to expect in an admin role would be would also help. Jobs I'm seeing online do not give salaries!
We are going to relocate to southwest Vermont hopefully in the next 6 months. We are looking around Shaftsbury, Arlington, Woodford. We are looking at rural properties on at least 2 acres.
We weren't expecting to move quite yet, but while getting an idea of the market up there, we stumbled upon our dream house. Jumping far ahead in theory, we'd be moving a little faster than expected. I have spent the last year educating myself on the process with books and the internet, but it's such a huge thing and I want to make sure I do it right.
We have spoken to a local credit union and have been told we will definitely be able to borrow the amount we need. We were actually approved for 3 times what we want but we're not interested in spending any more.
I have made an appointment for us to go and see the house on the 29th while we are visiting for the weekend. The sellers agent will be showing us around.
- Should we have a realtor lined up before we see the house for the first time? Can we wait until we've actually seen it in person? I know we will need to be pre-approved before we get an agent, but we will wait on that if we can go see it alone initially.
- It's at the top of our self imposed budget so we would not go through with the purchase if there is any major work that needs to be done. We are allowing for a $10k contingency after all purchase costs but we don't want to be replacing a roof/replacing a boiler/spending thousands on a major issue using that money. What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
- I'm still kind of confused about how much we will need to set aside in escrow for taxes, is that something we can ask the sellers agent/our buyers agent?
- I'm reading mixed things as to the buyers agent commission. Is that paid by us or is it paid by the seller or does it depend on the house?
- I'm pretty sure of the answer to this, but we should use a buyers agent rather than going with the sellers agent right? Has anyone gone with the sellers agent and not regretted it?
- Is title insurance something we should be purchasing?
- Any other advice on buying a house out of state to relocate, would be so appreciated.
Basically, it's our dream house but we do not want to go in guns blazing with only our emotions to guide us. Buying a house is a huge deal and we want to make the right decision.
Please, if there is anything I'm missing I'm happy to fill you in.
Sidebar - If anyone has any input on how someone with admin/receptionist experience could look for a job (in a creative setting ideally) I'd love to hear it. Willing to work in Albany, NY or Bennington, VT (preferable). And any input on what salary/hourly rate to expect in an admin role would be would also help. Jobs I'm seeing online do not give salaries!
Buyer's agent. And not an agent acting as one, one that reps buyers only if possible. Do some investigating in that area, and try to get a sense of who has a good reputation and works closely with clients to explain all of it, and write up the contracts in a way to protect you if, say, the inspection comes back with major issues. As far as commission, in my case (different state) the agents essentially split the commission, paid by the seller.
If you do go see the house with out an agent, play it cool. If the seller groks how much you dig the house, they might be less interested in coming down in price or providing funds for repairs should problems manifest. In our case, the seller threw in a septic system servicing costing a couple grand, so we would not have to worry about it for a few years at least.
posted by vrakatar at 12:14 PM on October 17, 2016 [1 favorite]
If you do go see the house with out an agent, play it cool. If the seller groks how much you dig the house, they might be less interested in coming down in price or providing funds for repairs should problems manifest. In our case, the seller threw in a septic system servicing costing a couple grand, so we would not have to worry about it for a few years at least.
posted by vrakatar at 12:14 PM on October 17, 2016 [1 favorite]
Response by poster: Also, in case it's important, the house has been on the market for 2 months. I'm not sure if this has any significance, I'm not majorly in the know when it comes to the Vermont real estate market. It was built in 2006 and looks great cosmetically speaking but obviously that doesn't speak for any potential issues.
posted by shesbenevolent at 12:15 PM on October 17, 2016
posted by shesbenevolent at 12:15 PM on October 17, 2016
I would strongly recommend that you write a list of pros and cons about this house, and the deal breakers (foundation and soil issues would come to mind). I know it's your dream house, but be prepared to move on, because (sorry to say) seller agents can smell eagerness and they will take advantage of your passion. A certain degree of detachment would help. I would also recommend a buyer's agent and discuss everything, including who pays commission. Since the seller's agent will be showing you around, and I presume everyone is from the same area, a buyer's agent would make negotiations more balanced. Please research history of the house plus culture and history of the place, because the house may be great, but how has the area held economically? How does the area fair politically? And so on.
As to the sidebar, I'd suggest researching the firms you would like to work for and check their websites (some will have rules on job application).
Take care and good luck.
posted by dragonbaby07 at 12:20 PM on October 17, 2016
As to the sidebar, I'd suggest researching the firms you would like to work for and check their websites (some will have rules on job application).
Take care and good luck.
posted by dragonbaby07 at 12:20 PM on October 17, 2016
I know nothing about house buying, but I have the impression that full time admin/receptionist work would pay in the $35-45K range in the Albany area. I'd probably start a search for that type of work at the various universities in the area.
posted by Kriesa at 12:30 PM on October 17, 2016
posted by Kriesa at 12:30 PM on October 17, 2016
- Should we have a realtor lined up before we see the house for the first time? Can we wait until we've actually seen it in person? I know we will need to be pre-approved before we get an agent, but we will wait on that if we can go see it alone initially.
Buyer's agent. No one else will look out for your interests. Not sure about how things work in VT, but in my experience in CA and OR, realtors do not specialize in buyers or sellers. Just get one who represents you rather than both you and the seller. The seller's agent will try to get you to just sign on with them if you do not come in with representation. Don't do it. They just want both ends of the commission. You don't absolutely need an agent to look at the house, but do not write an offer without an agent or lawyer representing you.
What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
You have to pay for your inspections out of pocket. I recommend either a general contractor, as mentioned above, or what I've done having separate plumbing, roofing, foundation inspectors come out. Loan and escrow fees usually get waived if the deal falls through because of issues found during inspection. Your agent, you're getting an agent right?, can help you negotiate those.
- I'm reading mixed things as to the buyers agent commission. Is that paid by us or is it paid by the seller or does it depend on the house?
Seller always pays all commissions.
- I'm pretty sure of the answer to this, but we should use a buyers agent rather than going with the sellers agent right? Has anyone gone with the sellers agent and not regretted it?
- Is title insurance something we should be purchasing?
Yes and Yes
posted by bluejayway at 12:33 PM on October 17, 2016
Buyer's agent. No one else will look out for your interests. Not sure about how things work in VT, but in my experience in CA and OR, realtors do not specialize in buyers or sellers. Just get one who represents you rather than both you and the seller. The seller's agent will try to get you to just sign on with them if you do not come in with representation. Don't do it. They just want both ends of the commission. You don't absolutely need an agent to look at the house, but do not write an offer without an agent or lawyer representing you.
What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
You have to pay for your inspections out of pocket. I recommend either a general contractor, as mentioned above, or what I've done having separate plumbing, roofing, foundation inspectors come out. Loan and escrow fees usually get waived if the deal falls through because of issues found during inspection. Your agent, you're getting an agent right?, can help you negotiate those.
- I'm reading mixed things as to the buyers agent commission. Is that paid by us or is it paid by the seller or does it depend on the house?
Seller always pays all commissions.
- I'm pretty sure of the answer to this, but we should use a buyers agent rather than going with the sellers agent right? Has anyone gone with the sellers agent and not regretted it?
- Is title insurance something we should be purchasing?
Yes and Yes
posted by bluejayway at 12:33 PM on October 17, 2016
- Should we have a realtor lined up before we see the house for the first time? Can we wait until we've actually seen it in person? I know we will need to be pre-approved before we get an agent, but we will wait on that if we can go see it alone initially.
Yes you should have your realtor lined up from the beginning. You don't need preapproval to get a realtor, but you will need it if you're planning to make an offer.
- It's at the top of our self imposed budget so we would not go through with the purchase if there is any major work that needs to be done. We are allowing for a $10k contingency after all purchase costs but we don't want to be replacing a roof/replacing a boiler/spending thousands on a major issue using that money. What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
Generally, the contract will be written so that you can bail out after the inspection and get all your money back. (Earnest money + deposit) You'd be out the cost of the inspection, but that's small potatoes. The $10K contingency strikes me as a little odd, unless it's an incredibly tight market and you're adding it to sweeten the deal. If the furnace needs servicing and the back steps are a little wobbly, you can ask them to fix it before you move in. If the roof has giant holes in it, you can ask that they fix it before you move in, or credit you the cost of the repairs you'll be doing.
- I'm still kind of confused about how much we will need to set aside in escrow for taxes, is that something we can ask the sellers agent/our buyers agent?
Your bank will figure this out when they're doing the paperwork for your mortgage application. They calculate mortgage + interest + taxes into what you can afford for a monthly amount. They'll also adjust it if the home is re-assessed by the town, or if the tax rate changes.
- I'm reading mixed things as to the buyers agent commission. Is that paid by us or is it paid by the seller or does it depend on the house?
Seller pays everything. The only difference here is that if you use a service like RedFin, they'll give you back part of the commission on the house. For a first time buyer, I would not recommend going that route.
- I'm pretty sure of the answer to this, but we should use a buyers agent rather than going with the sellers agent right? Has anyone gone with the sellers agent and not regretted it?
RUN RUN RUN from the realtor who claims he can represent both parties in a real estate transaction.
- Is title insurance something we should be purchasing?
The chances of there being a problem are vanishingly small, but the same thing can be said about a fire that burns your house down, and I'm guessing you have insurance for that. If there's a hole in the title history, someone can show up and claim ownership of the house. If that happens, you want someone else paying the legal bills, or compensating you for the house.
- Any other advice on buying a house out of state to relocate, would be so appreciated.
Random piece of advice I wish I'd had 6 months and $50K ago: when you have the inspection done, find an electrician or a plumber or some other professional who spends his life digging around in people's attics and walls. Pay him to come along on the inspection. You will be amazed what an experienced electrician can spot that an inspector might not. (In our case, he spotted the hole in the roof, the wildly-out-of-code wiring, the rodent-chewed wires in the attic, and the asbestos in the walls. Sadly, this was two months after we closed)
posted by Mayor West at 12:52 PM on October 17, 2016
Yes you should have your realtor lined up from the beginning. You don't need preapproval to get a realtor, but you will need it if you're planning to make an offer.
- It's at the top of our self imposed budget so we would not go through with the purchase if there is any major work that needs to be done. We are allowing for a $10k contingency after all purchase costs but we don't want to be replacing a roof/replacing a boiler/spending thousands on a major issue using that money. What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
Generally, the contract will be written so that you can bail out after the inspection and get all your money back. (Earnest money + deposit) You'd be out the cost of the inspection, but that's small potatoes. The $10K contingency strikes me as a little odd, unless it's an incredibly tight market and you're adding it to sweeten the deal. If the furnace needs servicing and the back steps are a little wobbly, you can ask them to fix it before you move in. If the roof has giant holes in it, you can ask that they fix it before you move in, or credit you the cost of the repairs you'll be doing.
- I'm still kind of confused about how much we will need to set aside in escrow for taxes, is that something we can ask the sellers agent/our buyers agent?
Your bank will figure this out when they're doing the paperwork for your mortgage application. They calculate mortgage + interest + taxes into what you can afford for a monthly amount. They'll also adjust it if the home is re-assessed by the town, or if the tax rate changes.
- I'm reading mixed things as to the buyers agent commission. Is that paid by us or is it paid by the seller or does it depend on the house?
Seller pays everything. The only difference here is that if you use a service like RedFin, they'll give you back part of the commission on the house. For a first time buyer, I would not recommend going that route.
- I'm pretty sure of the answer to this, but we should use a buyers agent rather than going with the sellers agent right? Has anyone gone with the sellers agent and not regretted it?
RUN RUN RUN from the realtor who claims he can represent both parties in a real estate transaction.
- Is title insurance something we should be purchasing?
The chances of there being a problem are vanishingly small, but the same thing can be said about a fire that burns your house down, and I'm guessing you have insurance for that. If there's a hole in the title history, someone can show up and claim ownership of the house. If that happens, you want someone else paying the legal bills, or compensating you for the house.
- Any other advice on buying a house out of state to relocate, would be so appreciated.
Random piece of advice I wish I'd had 6 months and $50K ago: when you have the inspection done, find an electrician or a plumber or some other professional who spends his life digging around in people's attics and walls. Pay him to come along on the inspection. You will be amazed what an experienced electrician can spot that an inspector might not. (In our case, he spotted the hole in the roof, the wildly-out-of-code wiring, the rodent-chewed wires in the attic, and the asbestos in the walls. Sadly, this was two months after we closed)
posted by Mayor West at 12:52 PM on October 17, 2016
There are differences in local customs about offers are usually structured. In California (and I think in general) you can make the offer contingent on the inspection - you agree the inspection will be completed within a certain number of days but if there is anything you don't like in the inspection report, you can rescind the offer and get your deposit back. There is no criteria how for bad it is has to be (you could even use it as a excuse to get out of the sale if you changed your mind since inspections reports always turn up something.
Title insurance means that they are done the research to make sure you are really getting clear title and they let you know if there any easements on the property. In California, the title company also handles escrow - collecting money and doling it out according the terms of the deal - in some areas it is customary to use lawyers for this part.
In general, the seller pays the agent's commission. If there are two agents they split it. We bought a house that was for sale by owner (not agent) and so we negotiated that they would pay our agent's commission. Even though we found the house ourself, he earned his commission by helping us prepare the offer and made sure that the inspections got done, the mandatory seller reports got made and the deal closed on time.
posted by metahawk at 1:17 PM on October 17, 2016
Title insurance means that they are done the research to make sure you are really getting clear title and they let you know if there any easements on the property. In California, the title company also handles escrow - collecting money and doling it out according the terms of the deal - in some areas it is customary to use lawyers for this part.
In general, the seller pays the agent's commission. If there are two agents they split it. We bought a house that was for sale by owner (not agent) and so we negotiated that they would pay our agent's commission. Even though we found the house ourself, he earned his commission by helping us prepare the offer and made sure that the inspections got done, the mandatory seller reports got made and the deal closed on time.
posted by metahawk at 1:17 PM on October 17, 2016
In the traditional setup, when you are working with an agent & they find you a house represented by a different agent, both agents are legally representing the seller, and they split the seller's commission. A buyer's agent is someone who is legally representing you, not the seller. Whether they can be paid out of the seller's commission varies from state to state - the whole notion of buyer's agent is fairly recent - and I would imagine it depends on where & when they were inserted into the process.
I've bought 3 houses and have never used a buyer's agent. I have hired my own real estate lawyer for all these transactions.
If you will need a mortgage, you'll want to get a pre-approval before making your offer, both for your safety, and to help convince the seller that you're likely to be able to close. Pre-approval just means that the bank thinks you will qualify for a mortgage, based on your income and credit rating, assuming they agree that the house is worth what you're paying for it (or close enough). It does not guarantee you'll get the mortgage.
Upon preview: in most markets, most of the time, it is common to make your offer contingent upon getting financing, and contingent on a clean inspection. The exception is in overheated markets (such as Boston/Cambridge right now), where there are bidding wars. Most agents will tell you the fewer contingencies the better in such cases.
Also, markets are seasonal, especially in a place like Vermont. I would expect that a house that remains unsold into November would be more likely to take a lowball offer.
posted by mr vino at 1:26 PM on October 17, 2016
I've bought 3 houses and have never used a buyer's agent. I have hired my own real estate lawyer for all these transactions.
If you will need a mortgage, you'll want to get a pre-approval before making your offer, both for your safety, and to help convince the seller that you're likely to be able to close. Pre-approval just means that the bank thinks you will qualify for a mortgage, based on your income and credit rating, assuming they agree that the house is worth what you're paying for it (or close enough). It does not guarantee you'll get the mortgage.
Upon preview: in most markets, most of the time, it is common to make your offer contingent upon getting financing, and contingent on a clean inspection. The exception is in overheated markets (such as Boston/Cambridge right now), where there are bidding wars. Most agents will tell you the fewer contingencies the better in such cases.
Also, markets are seasonal, especially in a place like Vermont. I would expect that a house that remains unsold into November would be more likely to take a lowball offer.
posted by mr vino at 1:26 PM on October 17, 2016
I have bought several homes in my lifetime and in a buyers' market I never saw the point of a buyer's agent except for their local knowledge.
The last time I bought I saw a specific financial advantage to not having an agent: the seller's broker was able to drop their commission by the amount they would have lost to a buyer's agent in order to meet our lowball offer and make the sale happen.
But even if you were to offer the asking price and a second offer came to the table via an agent, you as the unrepresented party get all the seller's broker's attention since they get twice the commission if your offer is accepted. It is in the seller's broker's interest to sell to you and they will do everything in their power to help you get it.
posted by Dragonness at 1:41 PM on October 17, 2016
The last time I bought I saw a specific financial advantage to not having an agent: the seller's broker was able to drop their commission by the amount they would have lost to a buyer's agent in order to meet our lowball offer and make the sale happen.
But even if you were to offer the asking price and a second offer came to the table via an agent, you as the unrepresented party get all the seller's broker's attention since they get twice the commission if your offer is accepted. It is in the seller's broker's interest to sell to you and they will do everything in their power to help you get it.
posted by Dragonness at 1:41 PM on October 17, 2016
In some states, every real estate agent legally must represent the seller. According to this site, In Vermont that's not the case; the buyer can have their own representative who's loyal only to the buyer. The law requires a signed contract between you and your agent specifying that they are representing only you.
As a first-time buyer, you definitely should have your own agent who works for a separate agency. The seller's agent may try to entice you, but they won't be able to put your interests above those of the seller. With a buyer's agent, there's still an element of conflict of interest, because your agent doesn't get paid unless the sale goes through; it's in their interest for you to buy a house.
You can go and see the place without having an agent lined up. The seller's agent has no claim on you just because they're the first person you talked with about the listing.
posted by wryly at 3:40 PM on October 17, 2016
As a first-time buyer, you definitely should have your own agent who works for a separate agency. The seller's agent may try to entice you, but they won't be able to put your interests above those of the seller. With a buyer's agent, there's still an element of conflict of interest, because your agent doesn't get paid unless the sale goes through; it's in their interest for you to buy a house.
You can go and see the place without having an agent lined up. The seller's agent has no claim on you just because they're the first person you talked with about the listing.
posted by wryly at 3:40 PM on October 17, 2016
One thing to consider with any house up in the north is whether it has southern exposure. A house on the north side of a mountain won't get any sun all winter. That's been known to make people crazy. I'm serious, I've spent many years in that and similarly mountainous cold climates. It makes a huge difference. And realtors make houses look good online by always presenting their best features. Don't get your hopes too high on this one, it may turn out to be next to loud snowmobile racing neighbors or whatever.
posted by mareli at 4:19 PM on October 17, 2016
posted by mareli at 4:19 PM on October 17, 2016
If you are confident you will be buying this specific house, I would email as many buyer's agents in town as you can find, tell them you need their help in preparing an offer for one specific house, and ask them if they are willing to rebate a portion of their commission back to you. It is likely you will find someone willing to give you 1% of the house value after closing, if not more.
Aside from facilitating a rebate of the commission, I have not found buyer's agents to be helpful.
posted by deadweightloss at 4:49 PM on October 17, 2016
Aside from facilitating a rebate of the commission, I have not found buyer's agents to be helpful.
posted by deadweightloss at 4:49 PM on October 17, 2016
Hi there, (future) neighbor. I don't know for sure, but I suspect that, with a move up here, you will double the population of Mefites in Bennington county.
Others have had good advice, so I'll try to add some southwestern-VT-specific advice.
Let me just echo what some others have said: the housing market up here is quite a bit slower than a lot of the more urban and suburban markets. You don't have to get too attached to the one, true dream house; the market up here is a buyers' market. The one exception is high-quality, small houses. Almost everyone who wants one of those ends up getting a much bigger house than they initially thought they were going to get.
We looked around a bit when we moved up here and there are very few (if any, perhaps) agents who are exclusively buyers' agents. That said, you do want to make sure that whoever your agent is is not the one that's selling the property. Ideally, they should not even work for the same agency of the company that is listing the property. We didn't follow this advice and, while things ended up good for us, there were times where we wished that there was someone in "our corner." If you Memail me, I can let you know who our agent was; we were pretty happy with her and we were very happy with our lawyer. Just echoing what others say here: do not let the seller's agent talk you in to just using them as your agent, too. You want someone who looking out for your needs.
On taxes up here, they tend to be pretty low in the three towns that you've listed. I have to imagine that the escrow amounts will be manageable. If you're using the same credit union we used for our mortgage, if you put a certain amount down they don't even make you do that. Your agent should be able to give you a handle on that.
On administrative jobs: I'd look both at Southern VT College and Bennington College as a first pass. The hospital is an option, but not particularly "creative." You can expand your circle a bit without going all the way to Albany: Williams College in Williamstown, MA (~20 minutes from Bennington), Mass MoCA in North Adams, MA (30 minutes), various places in Cambridge, NY (~20 minutes), Manchester, VT (~30 minutes) even Troy, NY (~45 minutes). Also, Pittsfield, MA and Brattleboro, VT are both basically the same distance from Bennington as Albany (~1 hour), so that could expand your options.
posted by Betelgeuse at 5:19 PM on October 17, 2016 [1 favorite]
Others have had good advice, so I'll try to add some southwestern-VT-specific advice.
Let me just echo what some others have said: the housing market up here is quite a bit slower than a lot of the more urban and suburban markets. You don't have to get too attached to the one, true dream house; the market up here is a buyers' market. The one exception is high-quality, small houses. Almost everyone who wants one of those ends up getting a much bigger house than they initially thought they were going to get.
We looked around a bit when we moved up here and there are very few (if any, perhaps) agents who are exclusively buyers' agents. That said, you do want to make sure that whoever your agent is is not the one that's selling the property. Ideally, they should not even work for the same agency of the company that is listing the property. We didn't follow this advice and, while things ended up good for us, there were times where we wished that there was someone in "our corner." If you Memail me, I can let you know who our agent was; we were pretty happy with her and we were very happy with our lawyer. Just echoing what others say here: do not let the seller's agent talk you in to just using them as your agent, too. You want someone who looking out for your needs.
On taxes up here, they tend to be pretty low in the three towns that you've listed. I have to imagine that the escrow amounts will be manageable. If you're using the same credit union we used for our mortgage, if you put a certain amount down they don't even make you do that. Your agent should be able to give you a handle on that.
On administrative jobs: I'd look both at Southern VT College and Bennington College as a first pass. The hospital is an option, but not particularly "creative." You can expand your circle a bit without going all the way to Albany: Williams College in Williamstown, MA (~20 minutes from Bennington), Mass MoCA in North Adams, MA (30 minutes), various places in Cambridge, NY (~20 minutes), Manchester, VT (~30 minutes) even Troy, NY (~45 minutes). Also, Pittsfield, MA and Brattleboro, VT are both basically the same distance from Bennington as Albany (~1 hour), so that could expand your options.
posted by Betelgeuse at 5:19 PM on October 17, 2016 [1 favorite]
Home inspectors are all over the map. It is impossible to know whose interests they are serving, but often it is not yours as the buyer. Hire your own inspectors. At the very least a termite inspector, a plumber to scope the plumbing lines with a camera, as well as the regular home inspector. If you have any doubts get a structural engineer as well. Be there in person (if possible) during every inspection. It takes time to notice all the potential problems. It was my termite inspector who pointed out that the home we were considering had no outside outlets at all, and only one hose bib on a half acre of property.
posted by WalkerWestridge at 9:27 PM on October 17, 2016
posted by WalkerWestridge at 9:27 PM on October 17, 2016
I'm currently selling one house and buying another in MN, and I'll just offer some random chat about my experiences.
We hired one realtor [Andy] to handle selling our house. Andy is recieving 6% of the sales price for that "service". The folks buying our house have a realtor [Betty], and she and our realtor are splitting that 6%.
We hired a different realtor [Carol] to help us buy in Minneapolis. The value she brought is familiarity with the area and the time spent to find suitable properties and arrange showings. The seller's agent [Dave] is presumably receiving 6% of the sale which he is splitting with Carol.
I don't understand the notion expressed above that Carol is not representing us. The contract we signed with her specifically states that all she is doing is representing us. Sure, I imagine that she would rather we buy a 600K house than a 60K house, but she did not attempt to push us into more expensive properties at any time. As it happens, Dave is with the same realty company [Edina Realty] as Carol, which I'm sure benefits Edina Realty, but we found this house on our own and told Carol we wanted to see it. I didn't notice that there was a preponderance of Edina Realty-repped houses among those that we saw.
The offer on our house had an inspection contingency. The buyer had the house inspected, they received a report of possible issues, then they chose to ask us to fix some of those issues. I don't get to see that inspection report. In my case, I was asked to: put smoke detectors in all the bedrooms, cover a couple open junction boxes in the basement, add a CO detector in the lower level, make sure all the windows had screens, and have the furnace checked by a contractor.
Our buyers are doing FHA financing, which drove some of those things. The smoke detectors in every bedroom and covering the junction boxes [which were open when we bought it and didn't come up in inspection] fall into that bucket.
The offer we put in on the Mpls house also had an inspection contingency. Our offer stipulated that we had 10 days to do a "closed wall" inspection, meaning we can't open up any walls to look for mold or what have you. I could have as many guys go through there as I want [on my dime], but nobody's going to get a look into that crawl space up top.
I hired an inspector [Earl] who was recommended by Carol [her referral got us $50 off the fee]. Earl was seconded by my BIL Fred, who works in new-development land management. I suppose Carol and Fred could both be pulling the wool over my eyes, but it seems unlikely. Earl charged $500 for the inspection and a radon test. Again, it's not clear to me whose interests other than mine Earl would be serving. Of course, he's like any other hired expertise, he's going to look at things and give me his opinion, but he's getting paid his $500 whether or not I like the report. I suppose it's possible that Carol is kicking some portion of her commission to him to get him to overlook stuff, but that seems like tinfoil hat territory.
If the inspection had turned up something bad, and we passed because of it, I'd be out that $500 but I'd get my earnest money back. He and I walked the whole property, he making notes and taking pictures and me asking questions, and at the end he gave me a printed report with possible issues. He had walked the roof but was not a roof contractor, of course, so I hired Greg to evaluate the roof and write an estimate for any repairs he felt it required [report cost $100]. From that list we chose a few things to have the sellers fix, and they agreed. Inspection contingency removed.
For example, one item on my inspection report was that the basement steps had no handrail. If we were doing FHA financing, the sellers would have had to install a handrail before FHA would approve the financing. We let that go because we figured we'd rather not have the sellers put up some bare minimum handrail.
Maybe this is a MN thing, but had we asked for every little thing on the inspection to be repaired/replaced, and the sellers said no and killed the deal, they would have been required to disclose all those things in advance to future prospective buyers.
The mortgage company in both cases orders an appraisal, separate from the inspection. Typically, this is something that the buyer pays for out of pocket [$4-500], but I guess my mortgage company likes me, because they covered that cost for me [they actually did the appraisal ahead of the inspection contingency removal, as well, which is not usual]. Their concern is not the same sort of health and safety issues that the inspector looks at; they're primarily concerned with "Is this house worth the amount of the mortgage?".
What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
Yes, it depends on what the inspection turns up to a certain extent. You can back out after your inspection, and get your earnest money back, but I think you'll need a reasonably plausible rationale. I don't think I could have backed out of this house because the inspection showed that the upstairs bedroom doors don't latch completely, for example.
In my case, if the inspection turned up the need for a new roof or boiler, for example, the options are:
1. I walk away. I'm out the $600 for the inspections I did, but I get my $2500 earnest money back.
2. Something else. Say it needed a new roof. We could come back and ask the seller to put on a new roof. They can do so, or offer to drop the price by the cost of the roof, or walk away, or something else. It's all a negotiation.
The details will be laid out in the offer you write. There are some standard things [for example, our offer contained language stating that I couldn't just change my mind after the offer was accepted], but your agent or attorney will go over all this with you when you write the offer.
I'm still kind of confused about how much we will need to set aside in escrow for taxes, is that something we can ask the sellers agent/our buyers agent?
You can look up the taxes on the property online. I'm going to have to escrow a year's taxes, I believe. Either agent, or your mortgage person, should be able to tell you how much you'll need to escrow. Don't forget insurance; it typically works the same way. You'll probably have to escrow a year's insurance, unless you just pay it.
posted by chazlarson at 4:09 PM on October 18, 2016 [1 favorite]
We hired one realtor [Andy] to handle selling our house. Andy is recieving 6% of the sales price for that "service". The folks buying our house have a realtor [Betty], and she and our realtor are splitting that 6%.
We hired a different realtor [Carol] to help us buy in Minneapolis. The value she brought is familiarity with the area and the time spent to find suitable properties and arrange showings. The seller's agent [Dave] is presumably receiving 6% of the sale which he is splitting with Carol.
I don't understand the notion expressed above that Carol is not representing us. The contract we signed with her specifically states that all she is doing is representing us. Sure, I imagine that she would rather we buy a 600K house than a 60K house, but she did not attempt to push us into more expensive properties at any time. As it happens, Dave is with the same realty company [Edina Realty] as Carol, which I'm sure benefits Edina Realty, but we found this house on our own and told Carol we wanted to see it. I didn't notice that there was a preponderance of Edina Realty-repped houses among those that we saw.
The offer on our house had an inspection contingency. The buyer had the house inspected, they received a report of possible issues, then they chose to ask us to fix some of those issues. I don't get to see that inspection report. In my case, I was asked to: put smoke detectors in all the bedrooms, cover a couple open junction boxes in the basement, add a CO detector in the lower level, make sure all the windows had screens, and have the furnace checked by a contractor.
Our buyers are doing FHA financing, which drove some of those things. The smoke detectors in every bedroom and covering the junction boxes [which were open when we bought it and didn't come up in inspection] fall into that bucket.
The offer we put in on the Mpls house also had an inspection contingency. Our offer stipulated that we had 10 days to do a "closed wall" inspection, meaning we can't open up any walls to look for mold or what have you. I could have as many guys go through there as I want [on my dime], but nobody's going to get a look into that crawl space up top.
I hired an inspector [Earl] who was recommended by Carol [her referral got us $50 off the fee]. Earl was seconded by my BIL Fred, who works in new-development land management. I suppose Carol and Fred could both be pulling the wool over my eyes, but it seems unlikely. Earl charged $500 for the inspection and a radon test. Again, it's not clear to me whose interests other than mine Earl would be serving. Of course, he's like any other hired expertise, he's going to look at things and give me his opinion, but he's getting paid his $500 whether or not I like the report. I suppose it's possible that Carol is kicking some portion of her commission to him to get him to overlook stuff, but that seems like tinfoil hat territory.
If the inspection had turned up something bad, and we passed because of it, I'd be out that $500 but I'd get my earnest money back. He and I walked the whole property, he making notes and taking pictures and me asking questions, and at the end he gave me a printed report with possible issues. He had walked the roof but was not a roof contractor, of course, so I hired Greg to evaluate the roof and write an estimate for any repairs he felt it required [report cost $100]. From that list we chose a few things to have the sellers fix, and they agreed. Inspection contingency removed.
For example, one item on my inspection report was that the basement steps had no handrail. If we were doing FHA financing, the sellers would have had to install a handrail before FHA would approve the financing. We let that go because we figured we'd rather not have the sellers put up some bare minimum handrail.
Maybe this is a MN thing, but had we asked for every little thing on the inspection to be repaired/replaced, and the sellers said no and killed the deal, they would have been required to disclose all those things in advance to future prospective buyers.
The mortgage company in both cases orders an appraisal, separate from the inspection. Typically, this is something that the buyer pays for out of pocket [$4-500], but I guess my mortgage company likes me, because they covered that cost for me [they actually did the appraisal ahead of the inspection contingency removal, as well, which is not usual]. Their concern is not the same sort of health and safety issues that the inspector looks at; they're primarily concerned with "Is this house worth the amount of the mortgage?".
What kind of costs would we be looking at if we get as far as the inspection phase but don't go through with it? I know we will need to put up earnest money, as far as I've read, there should be a inspection clause so that would that money be returned to us should the inspection come out badly? Does that depend on what the inspection turns up?
Yes, it depends on what the inspection turns up to a certain extent. You can back out after your inspection, and get your earnest money back, but I think you'll need a reasonably plausible rationale. I don't think I could have backed out of this house because the inspection showed that the upstairs bedroom doors don't latch completely, for example.
In my case, if the inspection turned up the need for a new roof or boiler, for example, the options are:
1. I walk away. I'm out the $600 for the inspections I did, but I get my $2500 earnest money back.
2. Something else. Say it needed a new roof. We could come back and ask the seller to put on a new roof. They can do so, or offer to drop the price by the cost of the roof, or walk away, or something else. It's all a negotiation.
The details will be laid out in the offer you write. There are some standard things [for example, our offer contained language stating that I couldn't just change my mind after the offer was accepted], but your agent or attorney will go over all this with you when you write the offer.
I'm still kind of confused about how much we will need to set aside in escrow for taxes, is that something we can ask the sellers agent/our buyers agent?
You can look up the taxes on the property online. I'm going to have to escrow a year's taxes, I believe. Either agent, or your mortgage person, should be able to tell you how much you'll need to escrow. Don't forget insurance; it typically works the same way. You'll probably have to escrow a year's insurance, unless you just pay it.
posted by chazlarson at 4:09 PM on October 18, 2016 [1 favorite]
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*Buyer's and seller's agents will pay off an inspector under the table to tell you what you want to hear. You may be required to have an official inspector for your mortgage, and that's fine, but you want to hire someone to work for you and tell you, as if you were a member of their own family or at least a potential paying customer, whether they advise buying the house and what work might have to go into it in the near-medium-long range.
It takes a lot of work and experience to be an expert in houses and buying houses, but you can obtain the same expertise instantly by paying for it.
posted by Lyn Never at 12:13 PM on October 17, 2016 [2 favorites]