So I am looking to buy property in the OC
 

I am looking into buying property as a first time buyer. I still have my job and I have a good 10% available for a downpayment. My apt lease is up in 4 months and want to make the best decisions. I am looking at condos or single family detached and trying to stay below $300k in the Orange County area. Does anyone have a lender/broker that they trust or can provide a referral or are any of you in this business. Any help is greatly appreciated.

Find the house first. Then find a good Realtor in that specific area.

Here's a site: http://www.househunt.com/a-orange.htm

It would be great if these people got going in OC: http://losangeles.blockshopper.com/

Got a great guy here in TX for financing. Don't know if he can do CA. Got his name from another board member and it was an awesome referral.

Realtor's work for the sellors
why would any buyer want to pay 6% extra for a house
esp as the Realtor will not do much for you

the deals are from FSBO sellors or the damm banks
in this crazy market I would deal directly with a bank
offer to buy only if they finance a property they own
that should be a win win for the bank
as they get rid of the house
and get money coming in at the same time

You would think? But, It doesn't always work that way.

That's not a very bright way to look at it. Total commission "may" be 6%. If one has a buyer's representative, they split it. Even if one Realtor from the same brokerage shows another's listing, and it sells, they split. Splitting is more common than a home run.

I is unwise to let the listing Realtor represent both parties, don't you think? Get you own. But, as I said, if you retain a buyer's representative too soon, they will tire of showing you houses after the first couple of days. However, they are still entitled to share in the commission should you buy a house that YOU found.

I like to work with the top sellers in the local community where they farm. They know the lay of the land better than an out-of-region Realtor. That why I say find at least the area you want to live in before working with the Realtors' offices.

In my experience every single FSBO I have looked at has been WAAAAAAYYYYY overpriced. Most of them had major issues, read structural. Then again, my experience has been with looking at homes with 10 or more acres that were built prior to 1970.

A good Buyers Agent will help you avoid MANY pitfalls in the purchase of your first home. We have come out better using Buyer's Agents (and the two we have used have become personal friends). They did work very hard for us and kept us from some properties that would not have met our requirements (zoning issues).

All that said, go to the store and buy an electrical test kit. At a minimum, have a plug tester. Test plugs in every room of the house. You will find many electrical issues that way. A phone plug tester will do the same for your phone lines. Insist on looking in the attic. A good Buyer's Agent will know how to review the structure of the home, you should educate yourself first. You will see MANY major issues with the structure of homes, more in homes built after about 1978. Some of the worst homes we saw were less than 10 years old. Shoddy building practices!!!!

Older homes generally have quality of workmanship evident. You are mainly looking at issues with how the owners maintained the homes. Older homes might have issues with insulation and single pane windows. These can be addressed. There might also be earthquake questions with older homes and a local can give better advice on earthquake proof builds and the time frames when local homes were better built.

Who came up with this douchery of putting the indefinite article in front of place names? You wouldn't say "I'm going to buy property in the Sacramento."

I guess it's sort of like saying I'm looking to buy in the Hamptons.

As far as condos, be careful you only want to buy one in a desirable place where they can't build them anymore. You buy in a new place in Phase II and in five years you're competing with the developer who is now building Phase V and he's carrying low interest paper. I suppose the same could be said for Phase II and Phase V of tract houses as well.

"The OC" has been around a long time.

I don't have a local loan broker but have a local realtor/broker. He is a friend. He's awsome.

At the biggining, I thought the same as Nota, why pay extra for a realtor. I can do the search myself. I know some basic stuff and can read the advances... but he didn't charge he at all. If I get the house, he charges the seller, and offer me all his knowledges and tricks. Why not give him a try. It turns out that he knows a lot more than I thought. All I knew were a lot less than basic. He has been teaching me not only on how to look/search, but also how to evaluate the house/property, pointing out tricks other sellers/realtors are doing, suggesting on managing money/fund. I know you are smart and don't need all that but sometimes a pin point/reminding helps. If you interested in talking to him, PM me.

I donot buy cars from dealers
or houses from realtors

both do know the market
and will try to get all the market will bear

the best deals on cars are always private sellers
as many have no idea of the value or market
same on houses
sure some over price or willnot deal
there are always others
you want to buy from a fool not a pro
if the fool wants way tooo little
the realtor will buy the house themselfs
and flip it

home inspectors charge a few hundred
realtors charge thousands
sure use an inspector and a lawyer to be safe
but remember the realtor any realtor works for
and gets paid by the seller


in the current mess
banks have way tooo many homes they have repoed
they need to move them yesterday
and I think thats where the deals are now
plus as the bank needs to unload the houses
they should be willing to deal on the loans too
to make the deal happen
and dollars saved do not matter where they come from
price or points or interest

1. Realtors represent both parties, and some do so for each side exclusively (either buyer's agents or listing/selling agents).

2. Buyers do not pay the Realtor's commission. It comes out of the seller's proceeds. So, why would you want to go into a transaction representing yourself (fool for a client) when buyer representation is essentially free? That is a no-brainer to me.

3. FSBO's can be a nightmare, even if just one of the parties doesn't know what they're doing. If an FSBO seller doesn't allow agent-represented buyers, then both parties generally don't have a clue about the process. That is a huge invitation for problems and/or lawsuits. Real estate as an industry is one of the most litigious out there. Most FSBO's never sell without at least one agent in the mix anyhow (like around 80+%).

4. Nearly all Bank-owned (REO) properties are listed with agents. Banks wouldn't sell any properties if they weren't advertised and marketed properly. In most cases, you can't just "deal directly" with a bank to make an offer on a property. Banks are not in the real estate business. They are in the lending and loan-servicing business. They utilize agents to list their inventory, just as traditional sellers do.

Well, a good buyer's agent can actually save you $$$, as they do know the market/area, and can substantiate a below-asking offer on an over-priced home. They can also save you from your own ignorance, negligence, and/or lack of due diligence.
Yes and no. Once a bank has taken a property back, they have incurred additional expenses and carrying costs associated with REO. Banks have loss-mitigation departments to reduce that very thing. They spend plenty of time and effort to make sure they get the most they can out of each property. After all is said and done, the cost of taking back the average $300k property is about $30k-$40k above and beyond what is lost on the note (remember, they pay listing fees too just like any other seller). All of that translates into minimum lender-net formulas. Around here, turn-key REOs in desirable areas are going for 5-10% over asking with multiple offers on each, and they go quick.

1 very minimal gain to buyers for high costs
I fail to see any thing a good inspection and lawyer can't do for about 10% of the agents fee or less

2 buyers pay the whole cost inc agents over priced and mostly non-negotiable fee
6% is not free and at home prices today it is thousands
if the seller was willing to sell at "X" price is ''X'' plus 6% to the buyers
to pretend otherwise is fraud BUYERS PAY EVERYTHING ON A HOME SALE

3 the main reason FSBO's have a hard time selling is the agents boycotting them
I offered every lieing piece of trash ''agent" who claimed to have a willing buyer
the 3% buyers fee but not one ever showed up with a buyer
the liers were just trolling for listings
I paid for my own ad's and marketing and saved thousands
so wouldnot list esp a exclusive list with any one
why any one agrees to an exclusive listing is a mystery to me

realtors have conned the banks into not dealing with the public
banks need to wake up and see they sure are in the real estate biz today
with the massive numbers of repo's they are sitting on now
and they need to turn the property's over as quick as they can
to anyone they can esp as prices are still droping like a rock

Irvine is great, but you pay a premium for the schools. Since this is not a concern, I would consider other South OC areas.
You are welcome to join me and Alex in Aliso; Richard was from Laguna Niguel, and Scott is in Mission Viejo.
I have a few loan guys that I have received from friends, and I was hoping to contact them for a refi. I will send you both of them, and you can compare them if you wish.

Good deals: Aliso Viejo examples:
http://www.redfin.com/CA/Aliso-Viejo/31-Mayfair-92656/home/5257944

http://www.redfin.com/CA/Aliso-Viejo/151-Matisse-Cir-92656/home/21629706

Realtors represent themselves exclusively. they get paid when a property sells so that is typically their only concern.
Most of them will not say jack to either a seller or buyer if it could squash the deal.
The ones I've dealt with only want one thing, for the deal to go through so they can get paid. Even if it is a bad deal.
They didn't care if someone got screwed as long as they got their commission.

To think a realtor or agent actually has your best interests in mind is more often than not foolish IMO.

Why do you use realtors you don't like or even trust? Would you use a mechanic, contractor or lawyer you felt that way about?

Like any other business, there are good and bad. If you consistently get the bad ones, than maybe you should be more careful about who you deal with.

I don't believe that for a second. Most of the FSBOs that sit on the market are overpriced or have flaws that make buyers skip over them.

Problem with selling the FSBO route is that it's very difficult to get buyer feedback about why your place isn't selling. Buyers don't want to tell the seller directly that their house is overpriced, ugly or has serious issues. They'll just look, pretend to like it and then never call. Leaves the seller wondering WTF is going on.

If a FSBO is well priced, well advertised and has an astute seller who can solicit feedback from potential buyers, then they usually sell pretty quick... around here anyway.

I've dealt with FSBO sellers, but only when I really do have a serious buyer. I'll usually call to explain, then screen the place for my buyer. If it seems suitable, then I'll sign the seller up on a 24hr. Sometimes they sell, sometimes they don't. Sometimes I end up getting a listing, most times I don't.

I'm yet to find a realtor that adds any value to the process. In all cases I have known more about the neighborhood, comps, the home itself, etc. If I ever do find a knowledgeable and professional realtor that will give me high quality advice (not BS), I will deal with him for life.

My first home was a FSBO, the sale was brokered by a lawyer. Zero fuss. Remember that most realtors are not brokers, they have to deal with a 3rd party broker to actually close the deal.

It isn't necesasarily the realtor, it's the system. it's flawed. They should get paid for performance but instead they get paid for a sale whether it was a good deal or bad deal.

I use realtors because it's necessary in most instances. I DO NOT rely on them. I do my own homework, I do my own investigation and inspections, I make my own descisions, etc.
I do not put myself in a position where I consider their judgement or make a decsion based on what a realtor tells me.
I simply use them to communicate offers etc.
When I bought the house I live in now I found the house, walked through it, checked the comps, checked the history of the house and neighborhood, and after I was all done I called my agent and instructed him to present an offer to the seller for $xxxx dollars, with this stipulation and that stipulation, these conditions, etc.
I instructed him to bring it to me so that I could read it and approve it before it was submitted to the seller. I left nothing to chance and took no one's word for anything.
I worked with the escrow company, the title comany, the mortgage company, I was very hands-on throughout the process and the sale went through perfectly with no hang-ups or surprises.


BTW I do my own mechanical work.

I rarely use contractors (except at work) and I watch them like a hawk. Given the chance I would not be suprized if they tried to rip me off or do shoddy work.

I do not trust lawyers at all. The only time I ever talk to a lawyer is if I need him to keep another POS lawyer off my back.

A seller will pay the same amount on an agent-listed property regardless. Either the listing agent gets the full boat, or it is split between the listing and selling (buyer's) agent. So there is little to be gained by NOT using a good buyer's agent. Again, if you wish to represent yourself (or believe that a listing agent will give you equal representation), you will have a fool for a client.
Ease up on the drama there Francis. Sounds like you are both scorned and out of touch. The market dictates price. Buyers pay what the market will bear. Sellers net about the same in the long run, as the typical FSBO takes so long to sell that the 6% premium is well eclipsed by that point.
:rolleyes:
No, it just shows you that most savvy buyers are smart enough to enlist the service of a pro, rather than winging it themselves. Also, most FSBO sellers are in over their heads, and have no idea how to properly market their home. Nor do they have the resources and connections available that most competent agents do. They think they can stick a sign in the yard and put a couple ads on fsbo.com and Craigslist and sell their home in a matter of days/weeks. If it were that easy, there would be no agents.
Usually when a person has a problem with several others, the real problem lies within.
Agents conning the banks? Wow, you really are delusional. :rolleyes::rolleyes:
The fact is that the banks wouldn't liquidate nearly as much inventory as the do without listing agents. If you believe otherwise, I have a nice tinfoil hat I can send you. :D

True, there are plenty of dead-beat agents out there. Those types usually don't last very long, and don't have the skills/intelligence/work ethic to make it a career. However, most competent/worthwhile agents would never jeopardize their reputation or their license (and risk severe fines/penalties/lawsuits) over one deal by falsifying or omitting information.

Chris,

I can't offer any advice, but best of luck with your search. South OC is an awesome location and we'd all by lucky to have you as a new neighbor :)

If you need a good, reputable mortgage broker who isn't a criminal, just PM me. My neighbor in LN is as honest as they come and will take good care of you.

To the OP:

Even if you choose to go with an agent, it's still up to you to do your own due diligence. That's what I'm finding, as I'm going through a similar process, right now. There's no one perfect source for information, but I've found the redfin website very useful for online searching of properties. Very user friendly search program, and if you decide to avoid using a traditional agent to look for properties for you, you can use redfin as your broker and save some money in the process. Of course, as part of my due diligence, I also use other websites like zillow, californiamoves, listingbook, and propertyshark to double cross reference information.

FWIW we used a buyer's agent when we bought our current house but she was/is a 20-year pretty close friend so we had confidence that our interests were well represented. She definitely helped with the transactional aspects although we did essentially all of the legwork (not much) to locate the house in the first place. Our inspector was also a personal friend. We also know other folks who are architects, builders, etc. If you know anyone in the business it could be very helpful to seek their advice and assistance, esp. as a first-time buyer. Trusting complete strangers with such important and financially substantial decisions is downright scary.

I've got a guy I did my refi with who did a great job. Happy to recommend him if you want.

I just close escrow on a purchase a couple of weeks ago. I am so happy with her performance that I don't think I can do it without her an agent. She knows what I want and she screens the home before I have a chance to see it or go through it with a fine tooth comb. I signed papers the very morning we left for Alaska. We closed a few weeks later. We gutted all of the interior as we speak. When I get done with house near the end of the year, she will be listing it for us. No if or buts. I am hoping this will be a long lasting business relationship. there are good ones in every business, you just have to find them.

Chris, I use a loans guy up here in San Marino. He's been great. a bit far for you. If you really don't have anybody let me know. You may not remember me, I have a red 930 and we met a few years ago running Otega and sat with Alex and had coffee outside afterwards in that little cafe near the 5 fwy. Anyway, good luck with the search.

Jeff

I just realized that the title of this thread is all wrong. It should be, "I am so looking to buy property in the OC." ;)

Great, so you found another one?

Jeff

Yeah. We put in a bid, and should hear back by tomorrow.

Congrats on your new project. Show us some before and after pics when it's done.

Sure if you would show me how to post pics. I can't seem to get it to load up.

Good luck with your new place. Let me know how it goes.

Jeff

PM sent, Jeff.

+1

Hey Richard - great to see you! Hope all is well with you and yours.

Motion is back in CA?

Thank you!

Milt - We are maintaining homes in CA, but prefer to spend most of our time in MT, weather permitting :)

This is how we can tell Southern California people, from Northern California people and
the ROW. So. Cal. people put (THE) in front of 90% of everything that they say.
I love the highway designations. We call the freeway's Highway 880, Highway 101 etc.
They call them The 880 or The 101. This is a sure fire way to tell if someone is from So. Cal.

Hella true, Crow.

Wow - Motion is back. Who knew.

Hey - are you still maintaining a Montana blog. I followed it for a bit but then couldn't access it.