Real Estate Midadventures (NOT just about $$$)

[Leta]

You know, this is the second time that we have heard this bit about the agent needing to be paid if an asking price offer is made. Where would I look to find this out, do you know? Also, I don't know if this stuff makes a difference or not, but:

A) she has pulled the house from the market;
B) we didn't have our own agent, we just went through the seller's agent;
C) commission here is typically 6%.

I don't know what is considered a valid offer, but our particulars went like this:

-house listed at $81,499
-we have an FHA loan, so rebate for closing costs is standard- our mortgage agent wrote the paperwork this way and our hands are tied
-we offered, in writing, $82,000 less $2500 for closing costs (net offer of $79,599)
-seller refused, verbally, and told the agent that she wanted to raise the price to $90,000
-we offered, verbally, $86,000 less $2500 closing costs (net offer of $83,500 or almost $2000 over asking price)
-seller counter offers, verbally, $86,000 without concession of closing costs (or $4500 more than what it was listed at)
-we decline, of course, verbally
-seller pulls house from market

Right now, we are just waiting things out. The agent told us last fall that the renter's lease is up March 1st, 2012. DH is recovering from a total hip replacement right now, and is looking at March 1st as his probably return-to-work date. We aren't going anywhere until he's at full steam again, so we are comfy with waiting.

I am curious to know if the agent has any recourse, though. My impression of her was quite good.

 

[Marianne]

She wouldn't in Kansas. Nothing is considered legal/valid unless it's in writing.

The realtor was representing the seller, correct? Even though you did not have a realtor of your own - she still was representing the seller. She's not trying to hose you for money, is she?

Since rules, regulations and laws all vary state to state, I'd call your state's real estate commission to get the skinny.

In Kansas, there's a little form every realtor has their people sign before they'll even show them a house/ or list their house. Then if they go with a different realtor later on, the first one can get some commission if the house sells, even if they had nothing to do with it.

 

[Leta]

So another update. We decided against House B. It was too much house and not enough land. House A is supposedly returning to the market in the spring. We shall see. We aren't doing anything until the spring anyway, because DH is still recovering from surgery.

I am still pondering the property. We actually can get financing for it, it would be $325/mo for five years, but if we used our tax returns, we could have it paid off in three years. (Refresher: 8 acres, $16,000, has a well, septic, and 8c per kWh electric.) This timeline is good- it jibes nicely with DSS's age.

DSS will be starting college in the fall of 2016. Then we would just have him as our tenant here. Which, besides the peace of mind aspect, would be self sustaining- he could pay the entire year of mortgage, taxes, and insurance with his Pell Grant. His tuition is taken care of. Realistically, he'd need to get roommates to cover the utilities, but even if he lived here alone and we lost our minds entirely and put the utilities on a credit card, we'd all still come out way ahead of having him live on campus. He'll have to work part time on campus to pay for a car if he wants one (from here, he can take the bus for free). We will probably pay for his books and his mom and stepdad will probably pay for his car insurance, or vice versa. All four of his parents are committed to having him graduate debt free, so we'll make it work, I'm sure.

The concerns that I have over the vacant land are the building codes. However, I've been thinking, and we could drop a park model RV out there, build a garage with an apartment, or put up a yurt. I think we could figure something out.

The other option is a mobile home on 10 acres that I found. They are asking $45,000 and it meets FHA guidelines. I managed to find a lender! Finally! Our interest rate would be 4.5% on a 15 year note. The place is actually cute as a bug, and about the size of our current house, just with two bathrooms instead of one, and no basement. It's also FSBO. They burn wood (guy told me he spends $420 per year to have it delivered and stacked in the woodshed) and have a gas range hooked up to a 100# propane tank. Everything else is electric, but it's on 20c per kWh electricity, which is a bummer. It's also 8 miles further from DH's work, so that's 320 extra miles per month, which is gonna add up. The payments on this place would be exactly the same as the payments on the land, but for 15 years instead of 5, and we'd need a $1600 down payment instead of nothing.

It would be easy to get around the building codes there, since there is already a primary residence- a red herring house, if you will. We could get moved quicker.

I would love to hear everyone's thoughts on this.

 

[Marianne]

You research things well, have a really good head on your shoulders, so I'd say 'Follow what makes you happy!' Which one can you see yourself in 5 years from now?

Myself, I'd go with the FSBO. Building codes on the other place can create a boatload of delays and extra costs.