Home Buying in 20147>Question Details

Kavi R, Home Buyer in Ashburn, VA

Planning to buy a home directly from a seller/realtor

Asked by Kavi R, Ashburn, VA Mon Aug 27, 2012

Came across a property near my friend's home which is about to be put up for sale (being painted etc..). Seller bought it from bankruptcy court, doing some fixes (mostly painting) and selling it. We tentatively agreed on a price without realtor commission. I am free to bring in a realtor if I want at my own expense.
Home value is lower 600's
I am thinking of approaching a realtor to make sure that contracts written correctly and do some more due diligence. How much I should pay for these services? What else I should be aware of?

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Answers

21
Beth Seifart’s answer
An agent can help you make sure you are not paying too much for the home. A good agent can pull up comps for you that will show what other similar homes in the area have sold for. This can save you a lot of expense and stress. If you write a contract and the home doesn't appraise for the price you offered then you have to negotiate on your own with the seller and they might not be willing to work with you. All of this is what an agent can do for you from the beginning. You really should get professional help to help ease some of the stress.

I hope this helps! Good Luck!

Beth Seifart
Keller Williams Realty - Leesburg, VA
0 votes Thank Flag Link Mon Aug 26, 2013
Great question and alot of Great posts!
2 votes Thank Flag Link Sun Sep 23, 2012
Kavi,

I think that you could approach an agent with a one percent (1%) facilitation fee, that is really not abnormal. The most important things to know are your contingency dates, how you can terminate the agreement, and what is the expectation of the agent you are hiring.
0 votes Thank Flag Link Fri Aug 23, 2013
Wow. Bad idea. This is big purchase and it's really important that you get it right. It's not like buying a shirt at the mall that can be taken back later for a full refund. The problem you have is that you don't know what you don't know. Does that make sense? You really want a trained professional working for you to make sure you are getting what you think you are purchasing. You want to make sure this is a "smart purchase". I could go on.
0 votes Thank Flag Link Wed Oct 3, 2012
CMA from Agent on the comps and hopefully somebody(Agent) will do this for reasonable fee. Otherwise have a very good home inspection done & best of luck.
0 votes Thank Flag Link Tue Oct 2, 2012
you can email sellshomes-va.com we can help you!
0 votes Thank Flag Link Thu Sep 6, 2012
Kavi,
You are making a good decision to involve a realtor for some peace of mind and to help the transaction go smoothly. Every realtor is different as to fees that they might charge for services rendered. It is best to have a discussion to express your needs, expectations and then come to an agreement as to compensation.
Hope that helps.
Dan Ritchey
Keller Williams Realty
703-999-0167
0 votes Thank Flag Link Wed Aug 29, 2012
Hey Kavi- give us a buzz this today at 703-929-5716 to see if we would be the right fit for you. Our office is right here in Brambleton (Ashburn), we can sit down and discuss your options.
0 votes Thank Flag Link Tue Aug 28, 2012
Original Poster here - Thanks for all your responses. I am basically looking for professional Realtors who can represent me from now on wards (do CMA and then write the contract) all the way to the closing. I respect the Realtors who insisted of charging full 3% as well as those who are offering a discounted rate.
0 votes Thank Flag Link Mon Aug 27, 2012
Professional real estate agent offers much more than just "writing a contract." Professional real estate agents offer knowledge of the market and knowledge of the real estate industry, which is priceless to you as a home buyer.

If you only want a contract written and reviewed, you should contact a lawyer.
However, keep in mind that a lawyer will merely make sure the contract is LEGALLY well written so it can be presented in court if the need arises; a lawyer will NOT do the market analysis or any of the multiple Offer to Closing items that must/should be done before the Closing can take place.

Federal Anti-Trust laws forbid real estate agents to discuss commission in public or in private meetings. Indeed, real estate commission is fully negotiable. I suggest that you contact several agents to find out their brokerage fees.
0 votes Thank Flag Link Mon Aug 27, 2012
Please call sony kim at 703 244 3997 sony_kim@msn.com
0 votes Thank Flag Link Mon Aug 27, 2012
Hire an attorney.... I recommend Jason with Westlake - he's in Sterling. Then have his law firm or Old American Title handle settlement for you.
0 votes Thank Flag Link Mon Aug 27, 2012
It would be 3% of the purchase price - the realtor would be fully and legally responsible for all due diligence. You cannot cut the pie and piece out what needs to be done and not done. It's a professional job and nothing should be taken lightly. There is a long list to go through.
An attorney does the settlement, the realtor does everything up to the settlement table.

Sony Kim
Associate Broker
Keller Williams
703 244 3997
sony_kim@msn.com
0 votes Thank Flag Link Mon Aug 27, 2012
Hey Kavi- it would definitely be in your best interest to have a Realtor assist you in your purchase. Below are 15 basic things to consider when purchasing a home that Realtors take care of for you. Keep in mind there is a extensive list of additional items we will help you with. Please contact us so we can go into further detail for you.

1. For starters you should ask and agent to do a Market Analysis to see what the home is actually worth to determine whether you are paying above, at or below market value for the home.
2. A Realtor to negotiate on your behalf and professionally represent your best interests.
3. An exclusive right to represent buyer agreement (now required in Virginia).
4. NVAR contract and addendum's that someone is representing your best interest.
5. Mortgage providers working for your best interest and the ability to actually get you to closing, while getting you the best rates and type of financing for your particular situation.
6. Title company to ensure their are no existing liens and provide you with "clean" title.
7. Home inspection/radon inspection to ensure there are no major issues with the home and someone to help negotiate those items for you. Contractors to help estimate repairs.
8. Meeting with the appraiser.
9. Scheduling termite inspection.
10. Order a home warranty if applicable.
11. Help assist in obtaining home owners insurance.
12. Help review your home owners documents.
13. Final walk through to ensure the home is in the same working condition.
14. Review closing documents such as your HUD 1.
15. Assist you with movers and utilities.

Thanks

Joe
0 votes Thank Flag Link Mon Aug 27, 2012
Kavi, agents from out of state always have a good perspective but Virginia has very different agency laws governing our licensees than other states. So keep this in mind when reviewing the answers.
0 votes Thank Flag Link Mon Aug 27, 2012
Kavi, good question. There shouldn't be any reason you can't get full service for a discounted fee. I know some of my colleagues won't agree but a savvy buyer's agent knows that partial fee-for-service is better than none. If you approached me I wouldn't certainly negotiate with you. Just be willing to pay something reasonable. Remember that buyer's agents normally get around 3% (some more some less) so offering $500 on a 600K home would not be well received.

Good luck!
0 votes Thank Flag Link Mon Aug 27, 2012
All good advice to you, Kavi, from my colleagues. You never know what you don't know so you are wise to want to bring in a professional to counsel and advise. Whomever you hire, insure they disclose their agency relationship appropriately and specify the tasks performed and fees related to these tasks as is required by our agency laws in the Commonwealth of VA. Unfortunately, you are asking to hire a limited service agent but you may want to hire a Full Service Agent so that all your expectations are met and so that you are fully protected in the process with your own representation. The Spear Realty Group is always here if you need anything in your home buying process.
0 votes Thank Flag Link Mon Aug 27, 2012
One of the biggest purchases in your life and not going to use Professional Representation?

cash deal? or are you getting a mortgage?

and who says the homes value is in the lower $600s? Did you have it appraised? and if your getting a loan, that bank will do the appraisals.

YES having a Realtor or Professional Representation is in your best interests.

Buyers sides fees run 2.4% to 3% of the purchase price paid by the seller.

Remember the SELLER is a Realtor. So they know THEIR SIDE OF THE DEAL.

Best of Luck
0 votes Thank Flag Link Mon Aug 27, 2012
[Full Disclosure - I'm a Realtor] Kavi you should pay what you're able to negotiate with the Realtor. Many Realtors, from my experience, won't offer partial representation like that. I've had clients ask me this in the past, and I've charged them based on the task at hand - ie: how much time I was going to spend to help them put the transaction together plus help with regards to the financing, title (especially important in the case of a foreclosure), home inspection (again, especially important here), and so forth.

With a home purchase of that size, hiring someone to help you do due diligence is money, and time, very well spent.

Hope this helps, and if I can help further in any way, feel free to contact me.

Matt Elliott
Realtor
Keller Williams
703-627-2167
matte@kw.com
0 votes Thank Flag Link Mon Aug 27, 2012
HI Kavi - I would be happy to discuss a discount buyer agent commission with you. Please contact me if you would like to discuss. I can recommend a very detailed and thorough home inspector who will make sure you are aware of any potential issues with the home's condition.

Thanks,
Sonal
703-863-0031
0 votes Thank Flag Link Mon Aug 27, 2012
since property is bought at foreclosure/ Bankruptcy auction, make sure its free of lien and seller has clear title. you can hire a attorney or a realtor with a fixed fee arrangement to guide you through the process .

Kamal Singh
703-728-3403
Web Reference: http://www.vamdnewhomes.com
0 votes Thank Flag Link Mon Aug 27, 2012
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