more thoughts (of which you probably know, but maybe not, we did just have that thread a few months ago on someone buying their first place).
You make your profit when you buy.
Therefore, there's no point in looking at newly listed houses, nobody is gonna deal in the first week. (i wouldn't, nor should they). But relisted houses (they were for sale, got taken off, then back on, well that's just realtor games, it's still old and aging) You want to look at stale houses, houses that have been for sale for a while or even better ones who's price has been cut (the sellers are coming to grips with reality). I'm sure while looking you are getting a good feel for the market and the areas you are interested in. Nah, that house is too much, nah that house is in a bad location (you can't fix location), that house is overpriced. oh that house sold fast. So you should be able to tell which houses are stale and overpriced and yet still interesting, or more importantly would be interesting AT A BETTER PRICE. People who are paying two mortgages, taxes, insurance, repairs for 9 months are WAY more willing to make a deal than someone who's been on the market since Friday. Those people will bargain.
Dealing with bank owned properties is a waste. The bank DGAF, it doesn't affect them, they don't have to report it, they take no loss on the sale until they actually sell it and the property managers aren't getting graded on it. That market died in 08 when they changed the rules on accounting for it. And the responses take FOREVER.
Dealing with FSBO's (for sale by owner) is almost always a waste. They take everything personally (it's just business), they want too much money (otherwise a realtor would have the listing, but even they can't sell it) and it's been on the market FOREVER. It's worth exploring but unless something SUPER lights your fire, it's rarely worth the time. Paying the realtors is just like the paying taxes, you just gotta do it, it's part of the game.
If you do want/need something big fixed (roof, wall, plumbing, electrical work etc), get the money for it and hire it done yourself. If you want a new roof and agree to it as part of the deal, well as the seller you are going to use the cheapest shittiest company you can. I mean who cares? you aren't living there. As the buyer, nah, I want 15k for a new roof and I"ll get it done (and you'll get it done right. cuz you are living there and do care). Lots of people NEED cash back to get things fixed, but if you don't, getting money off the price pays off long term on both mortgage interest and pushing against tax assessments. (look i only paid X, that's an arms length transaction, best possible comparison there is).
When you make an offer, there's always a time limit on it. (24 hours, 36 hours, whatever). SET A HARD AND FAST LIMIT. (like 24 hours, 36 at most). Don't give them time to think forever on it and make changes. yes or no, make a decision. Offer a decent amount as earnest money if you can. Shows you are a serious buyer. You're talking thru the offer. An offer with 2 grand down means dick, an offer with 20 grand down, well that's a serious buyer. Most states (and you should check on this) it's really really hard to lose your earnest money. Like the deal has to blow up super bad and it to be your fault. Generally in the US, you can walk away for most anything found in inspections and financing and there be no penalty. You get your money back, it's just tied up while the deal is in progress. (and becomes part of the down payment usually). If you get a counter offer (which we'll get to) and you should. It too will have a time limit on it, take damn near every second of it, no matter what your initial thoughts on it are. if they give you 5 days, take the 5 days. Time has value. (don't give someone 5 days either, but people will).
A counter offer is not a modification of your offer, it is an entirely brand new offer. This is important and most people don't understand this. (and realtors prey on this which is why they modify the existing offer to "counter". You can (and should) counter their counter and everything is under negotiation again. They reopened it, not you. If they wanted it closed, they would have accepted it. READ EVERY PIECE of the counter. (read every single word of every single document TBH). I've seen more than once where someone didn't read the whole counter and missed huge pieces of it. In fact, when I sold my last house, I had to rent it back for a week (cuz otherwise how do you use the money to buy the next house? I fail to understand this) and that was reasonable so i was paying them $100 a day for the house up to X days. I get near the end for closing adn I call my realtor and say "hey, my utilities all shut off on closing, none of them have been moved to the new owners (which is the new owners job to set that up) and while I don't normally care, I am going to be living here and I am paying rent so i do expect ot have water, gas power, etc". Could have heard a pin drop. They thought I was going to keep them in my name til the end of the rental. WTF would I do that? not my house anymore I'M PAYING RENT. Neither realtor had read the contract. Well you could just keep them for an extra week. NOT MY PROBLEM the contract says ti's your problem and you need to fix it. And they did. READ IT ALL.
If you present an offer and they do not counter at all. 1. they have a crap agent. 2. walk away. You now have no leverage (think about it from the seller's side. oh they want this house so bad, I didn't have to give up anything and they already came up higher). You are talking thru the offers, always keep talking, you can keep talking until you come to a deal. Some people (and realtors) get really upset by it, too bad. I want the best deal possible and reasonable and both sides want that, and if they are talking then they can come to a deal. Of course you have to feel at some point, you've gotten a majority of what you want and can live with the rest.
A cash offer is better (and cheaper) than any financing offer and a strongly financed (pre approved with lots down, i.e. the deal gonna get done) is better than one that hopes to be financed, upon sale of the other house, with more contingincies. More congingincies from the buyer offer means better price for the seller.
HTH
