| cabmandone |
05-27-2014 03:38 PM |
Quote:
Originally Posted by Z-man
(Post 8082687)
Denis - excellent explanation - thanks!
Three questions to everyone:
1. While we have listed our home with an agent - one that I believe is pretty fair. But we are not obligated to only use her as our buying agent on our new home. Would it make sense to seek out the listing agent and go through them on the purchase of a new home? That way, that RE agent would get all the commission, and likely seek to persuade the owner to sell to us. Sounds unethical - but it would put us in a better position.
2. Agents that represent both the buyer and seller - seems unethical to me, or at a minimum, there is a conflict of interest. But we have come across that - on a piece of land we are interested in. But the listing agent would rather go with the other offer since she would get full commission then. How can we best deal with that scenario?
3. From a financial perspective, given the asking price of our home, and the type of home we are looking to move into, if we sell our home, we would be putting about 60% down, and financing the rest. I could possibly put down an additional $100k. But I would still need to finance a portion of the cost of the new house. Using this as a guideline, how could I make my offer more attractive?
Thanks for the input guys!
-Z
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On point 1, it does not make sense to use the listing agent as they are representing the seller. You should be represented in the transaction by someone knowledgeable in the market and with the price range of home you're considering.
Point 2. Do NOT accept dual agency. That form of "representation" isn't representation at all. The agent becomes a high paid paper shifter.
Point 3. Get PRE APPROVED not prequalified for a loan. If you're approved that means you have the funds pending inspection and appraisal. You can if you have enough down waive the inspection and possibly even the appraisal but doubtful the bank will let you waive the appraisal condition regardless of the amount down as they're still on the hook.
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