Is it true that once you see a house on Zillow etc it probably has bids?

December 1, 2023 2:23 PM

I should get a realtor first or a loan first right? Then look for a house I like?

Newbie to housebuying. I don't have financial support from family. Will do this on my own.

A friend mentioned a loan officer first. But they didn't even have a realtor! I'm shocked.

I have names of realtors I'll be calling. One seems to work with you from the start. I assume she will recommend a loan officer. Or I could go to the local credit union. My work has an EAP plan with financial legal services but I can't find any realtor or house buying resources. I know the area I want to buy a house in. Can I afford it? Barely. But I need to get out of my situation as soon as I can. No credit card debt just student loan debt.

What would you do in my situation? What have you done?

posted by AnyUsernameWillDo to Home & Garden (18 answers total)

You should look for a first time home buyer book or class. In my state the classes are free and cover best practices for all the questions you ask plus a lot more. They also cover any programs you might be eligible for.
posted by Geckwoistmeinauto at 2:38 PM on December 1, 2023 [23 favorites]

It's going to depend a lot on the housing market in your location.

I just sold a house, and I had two bids the day after my place was posted on Zillow as a "coming soon." I've also seen houses languish on the market for months. In the location I'm in now, I looked at one place that had been relisted. The realtor told me it had been on the market for four months previously and hadn't gotten a single bid.

My current strategy is going to open houses because I'm still trying to get a feel for my new area and for the marketplace. I would suggest you talk to a realtor first. A good professional realtor knows a lot. Try to get personal recommendations if you can. A lot of people seem to go into real estate as a part-time gig that seems easy, and those are the people you want to avoid. One realtor I talked to told me that 87/% of realtors quit within five years.
posted by FencingGal at 2:40 PM on December 1, 2023 [5 favorites]

Yeah, very market dependent - not just the area but the type of places you're looking at.

When I was looking, most of the places I considered followed a pattern of listing on Thursday, open house(s) on the weekend, offers due by Tuesday. Very occasionally they got taken off the market because of a large cash offer during the open house or whatever, but for the most part places didn't sell before Tuesday. Our house had a second round of open houses because it didn't sell on its first Tuesday. We used Redfin as buyers, it was fine. We couldn't compete with anyone putting in giant cash offers on Saturday anyway.

Definitely figure out how much you can really afford (a first-time homebuyer class can help with this, and often qualifies you for various first-time homebuyer incentives and loan programs.

Also consider whether now is really a good time for you to buy - for most people in the US it's a financially a better idea to rent at the moment. Obviously there are non-financial reasons to buy, but consider all your options, not just homeownership.
posted by mskyle at 2:49 PM on December 1, 2023 [1 favorite]

I would start with a trip to your credit union to get an idea of how much of a loan you are qualified for. You should be able to get a ballpark figure from them pretty quickly; getting pre-approved will take a little longer but is almost certainly worth it. Once you have a general idea of how much you are able to spend, then get in touch with a realtor. Ask around for recommendations.
posted by mygothlaundry at 3:14 PM on December 1, 2023 [8 favorites]

No, that's not true, but like others have said it's dependent on how quickly homes are selling. Right now they are selling quite a bit slower. In a hot market, they might be listed and sold so quickly that by the time they appear on Zillow or Realtor.com they are already sold.

Like others have said:
1) start browing houses so you sort of know where you want to live
2) get a pre-qualification letter that tells how much you can spend.
3) get a realtor who will show you the houses you pick and if they are good some like it but either as good or better and to help you through the process of buying a home
4) once you find a home, get an actual loan, inspector, etc.
posted by The_Vegetables at 3:19 PM on December 1, 2023 [1 favorite]

When I was a first time home buyer I found this amazingly comprehensive and FREE guide online. The details and strategy of home buying vary by area and a very good realtor can help with those, but this website gives you the fundamentals of the process that are basically the same everywhere in the US.
posted by muddgirl at 3:21 PM on December 1, 2023 [5 favorites]

Online sites are useful to see what's out there, depends on your market how fast things move. In our market, a desirable property will list on Thursday, open house maybe on Saturday (not always, some places are appointment only) and will have offers by Sunday.
Pull your credit report now and make sure everything is correct.
This is the link to FannieMae homebuyer education course, it's very useful-- I learned a lot especially going into the closing process, it helped. Plus many mortgage companies want you to complete this course to qualify.
Get a pre-approval from 3 or 4 banks/credit unions/mortgage companies, and get your financials ready to go so you can get qualify for actual loan. It can really make the difference if you're in a hot market and you make an offer; our offer was accepted quickly because we had everything ready and the other offers were only pre-approved.
Look in your area at all the online sites, as well as interviewing realtors right away. As FencingGal says above, get a professional realtor who really knows the area, knows what to look for when viewing houses. We learned a lot about HVAC systems, windows, etc., because our realtor had gone through a home inspection certification program (we still had a separate home inspector) and was able to point out some serious problems we wouldn't have known to look for.
posted by winesong at 3:21 PM on December 1, 2023 [3 favorites]

#1 - you need an idea of how much you want/can spend on a house so you are looking in the right range. you don't need to have to final loan approval at this stage but you do need to know what you can afford. Going to a credit union is one easy way. In my personal experience, credit unions have never offered the lowest rates but what they tell you will be in the ballpark. Also, they will tell you the monthly payments associated with that loan so you can do a reality check about whether you personally can afford to spend that money on your mortgage each month, remembering that you need to have money for taxes, home insurance plus the rest of your life including your student debt.

#2 - you want to start looking at houses with a firm intention NOT to buy anything you see. Look at a dozen or more that you think are in your price range. This will help you understand what your money can buy, what expectations are reasonable and what kind of trade-offs to expect. you will also start to the see how hot the market is - are housing all selling in a weekend or a few weeks or are they still on the market for months?

#3 - I would work on finding a real estate agent that you can trust. Personally, even when I have identified the house on my own, I have really valued the experience of real estate agent in guiding me through the process from preparing the offer to inspections and closing. I found zillow real estate agent listing helpful to figure out who is active in the specific market where I am looking. There is real value to an experienced agent who knows the local micro market.

You might want to do #3 before #2 since the agent can arrange for you to see a whole string of houses in a row without having to worry about open house schedules. In fact, right now the housing market is slow so if it takes a few weeks to get things figured out before you start to look, that is fine. But please, as a first time buyer, don't make an offer on the first house you see - take your time to figure out what you want so you can avoid buyer's remorse.
posted by metahawk at 3:25 PM on December 1, 2023 [4 favorites]

As others have said, this is entirely dependent on your market. I have never hired a realtor at all; I made appointments to see houses with the seller's realtor after I got pre-approved for a mortgage. I hired a real estate lawyer when I made an offer that was accepted.
posted by metasarah at 3:36 PM on December 1, 2023 [1 favorite]

A good realtor has a lot of information that you will want access to as a first time buyer, including recs for other professionals you'll need (inspectors, handymen, loan folks etc.)

Get a realtor ONLY through personal recommendation; preferably from friends at work, so as to find established agents who who've found homes for people in your demographic and locality. (Ignore all "use my uncle!" type recommendations.)

(You asked what I have done. The first offer I put down, I put down with the sweet guy who came attached to the pictures of a cute place I saw on Zillow. He had recently gotten his realtor's license having been laid off from his prior gig as a hotdog vendor or whatever, and had no more idea of what I should be doing than I did. Thank goodness the offer we made with him was not accepted, as the house was in entirely the wrong area and went down sharply in value when the market turned. What I did next is what I recommended above.)
posted by fingersandtoes at 4:10 PM on December 1, 2023 [3 favorites]

A good realtor will be able to help you with every level of the process, but yes, a basic class would be worth taking. A red flag for a realtor is someone who cannot assist you, even at a very early stage.

Both my house, and the house next to me were purchased entirely off market because of good, quick, professional realtors. We had put several bids on several houses and were out of every time (by A LOT) and our realtor was connected enough to know someone selling a house that we could both afford and didn’t want to hassle with bids. Price was agreed upon, sold and closed in just a few weeks.

One of my closest friends from childhood ended up buying the house next to us in nearly the same way; house was not on the market but we heard from the owner it was going to be listed. Before it was their realtor came in with their offer. Neither house ever showed up on any realty websites as “for sale.” Our market, at least as of last summer, were still receiving multiple offers within hours of being listed. If they didn’t, they were often problematic for some reason.
posted by furnace.heart at 4:15 PM on December 1, 2023 [1 favorite]

I bought my house 7 1/2 years ago in what sounds like similar circumstances to yours. Here is what I did that might be helpful:

Before You Buy was a very helpful book to read before I ever talked to a realtor, loan officer, or went to an open house. There are worksheets and checklists, which might seem like drudgery, but they can help you determine your Must-haves vs. Nice-to-haves and there is a LOT of info on each phase of the home shopping/buying process. I felt much better prepared to tackle all the details because, when I did meet with the my realtor and my finance guys, I had an understanding already of the industry jargon AND could ask better questions to clarify anything I didn't understand.

I got a personal recommendation to my realtor from a coworker/friend. My realtor was what I call an "old-timer" - he was a seasoned professional and had a list of professional contacts a mile long. Viewing a house and need an answer fast? He's got the seller's realtor's phone number in his contacts already. Show up for a viewing and some jerkwad locked everything and took the key away with them so no one else would bid? This guy would have boosted me through a window if I had found one that I could have gently pried open. He also had a depth of knowledge on the local market, all the loan types available, and what would be a dealbreaker for items that showed up later on an inspection. I was trying to get into a VERY tight market at the time and we must have submitted almost two dozen offers. He was patient and gracious and philosophical through every time I got outbid.

I went to the first-time homebuyer's workshop offered by my credit union and asked every question and worst-case scenario I could think of and they were patient, knowledgeable, and kind. They WANT to help you be a great homebuyer because they don't want you defaulting on your mortgage. I also got recommendations to other lenders and ended up going through a different local lender who was AWESOME about clear and timely communication and respecting the financial ceiling I had set for myself. Their biggest sticking point is, whatever your financial situation, have the documentation to show that the money for your down payment and closing costs is sourced and/or seasoned. They were so wonderful to work with that they also got my business when I refinanced a couple years ago. Just as pleasant as the first time around AND I couldn't be happier with the outcome.

I used the RMLS database, Homepath, HUD, and a quick gander at Craigslist/Zillow just in case I had missed something. If I saw a house I liked, I went through my Must-Have list, then did a quick google search for the address and checked the police call logs. Super easy to figure out if something was previously used as a grow house or meth lab that way. If the house passed my initial check, then I would get in touch with my realtor and he handled scheduling the showing and pulling the additional info from the realtor side of the listing - yep, they get extra info that isn't published on the realty websites.

Not gonna lie, it was a part-time job for months. And months. I didn't get a perfect home in a perfect neighborhood, but I got a solid house at a reasonable price point and now also have that network of contacts to lean on when I need siding repaired, a heat pump system replaced, or any of the million things that you tackle over the years.

Best of luck!
posted by Lady Sugar Maple at 6:18 PM on December 1, 2023 [4 favorites]

Before you move forward I would dig deeper into “barely” being able to afford it. Spend the time to figure out your budget, what you’re spending now vs what you earn. Keep in mind that your future bills will likely be higher (my heat bill in a SFH is double my apartment bill).

This is a big decision and should not be made in a rush. I closed on my first house two weeks ago so this is very fresh for me. Look at your online site of choice (redfin, Zillow, etc.) to get an idea or the types of houses in the area you like. Walk around different neighborhoods to get a feel for them and the housing stock. Maybe go to a few open houses when you decide what kind of places you might like. It helped me to get a feel for spaces.

I used my friend’s realtor and always knew I would use him because he had a lot of the same interests as me and passion for historic homes. If I had wanted a new build or flip he would not have been the right real estate agent for me. When I first contacted him he told me to talk to a bank to get a number that I should be approved for before he talked to me. I suggest you talk to your credit union. My banker would not pre-approve me with a hard pull because she didn’t want to impact my credit. I found that a small local bank gave better service, and also have a better rate than the larger or online banks. But that may not be true for you.

While, yes, there are fewer people looking now because of higher interest rates in my experience and location desirable and affordable homes still sell within one week. However, most are not already sold before being listed. There are some on the market for a month or two but that’s because of a problem with the house’s condition, location, or other circumstances. I knew this because I was looking at Redfin every day, favoriting houses I might like and getting an email when it was contingent. I came to the open house for the house I bought, then biked around the area because it was a bit outside where I was looking.

It sounds like you’re not ready yet, but you’re pre-ready. So start looking at the real stuff — money, housing stock, neighborhoods, and get a feel for your market.
posted by Bunglegirl at 8:39 PM on December 1, 2023 [1 favorite]

In addition to the advice above, I suggest setting up a Google alert for the town in which you want to buy the house. I set one up for other reasons to the town in which I live, and I get MLS listings sometimes BEFORE they are live by a day or three.

But, yeah, get a RE broker who is nurturing to a first time buyer and get a loan broker and be patient yet aggressive in your search.
posted by JohnnyGunn at 10:04 PM on December 1, 2023

In my experience, the interest rate offered by a credit union will look ever so slightly higher than the very best deal you could possibly find by spending all your waking hours combing through the offerings of for-profit providers, but the credit union loan will in fact end up costing you less because the credit union won't nickel-and-dime you with hidden fees and restrictive repayment conditions.

Credit unions exist for the benefit of their members rather than some external group of shareholders, and this shows in all kinds of ways when you join one.
posted by flabdablet at 11:02 PM on December 1, 2023 [2 favorites]

It’s an embarrassing title, but I found the book Homebuying for Dummies super helpful when we bought our first place in 2016. We just got it from the library. Markets go up and down but the same structure is largely in place, so I think it might still be a good primer.
posted by samthemander at 11:10 PM on December 1, 2023 [1 favorite]

We started with a realtor. We went for a somewhat "fancy", experienced realtor from one of those local best-of rankings since we figured they cost the same regardless of how "good" they are so you might as well have the best (the person we ended up with specialized in working with buyers and rarely does much selling so we had no worries about dual-agency stuff). I've heard some horror stories of getting pressured to use friends and family as real estate agents so I wanted to stay away from that. She did not rush us at all and we really benefitted from having her along for all steps of the process.

People will tell you not to use a loan officer recommended by your realtor. I will say that our experience was different - we explored rates and talked to folks at several companies including online lenders, national banks, local banks, and a local lender highly recommended by our realtor and the realtor's guy offered very competitive rates and was an excellent communicator throughout the process (I got the vibe that he was particularly motivated to stay on the ball to keep our realtor's referral business, which is perfectly fine by me - she also asked me at the end about our experience with him and seemed to take that feedback seriously).
posted by mosst at 11:35 AM on December 2, 2023 [1 favorite]

Do you have a credit union? they may have a 1st time home buyers class. Shop for mortgages. You can shop online w/out a real estate agent. I bought my house on Craigslist, no agents, fierce inspector. Get a fierce thorough inspector not affiliated with your lender or real estate agent. My inspector knew and disliked the seller, was quite thorough.
posted by theora55 at 1:40 PM on December 2, 2023 [1 favorite]