First Time Home Buyers

[billfromlaketravis 11,467]

First timer here, but the vets are welcome with their pearls of wisdom. 

A painter tried to bang me out of 13 large today. He was recommended by my realtor.  His estimate seemed way of out of whack, so I called my flipper friend. His response was priceless, "Is he using gold paint?" 

Lesson learned. Always ask a flipper for contractor recs. 

[Hornbeliever 712]

Ask enough questions from your realtor that this is the last time you use a buy-side realtor.

I was advised to never use a realtor when I first bought a home but I still did because was a bit hesitant.  I realized I did most of work and analysis.  I've bought a few homes without one since.....no issues and saved lots of $.

[kmac30 416]

Instead of just going with flipper contractor, I think the better lesson was to get multiple bids on your project. Just me, but I’ve seen some flips that were terrible quality work.

[ZB'Tejas 593]

11 hours ago, Hornbeliever said:

Ask enough questions from your realtor that this is the last time you use a buy-side realtor.

I was advised to never use a realtor when I first bought a home but I still did because was a bit hesitant.  I realized I did most of work and analysis.  I've bought a few homes without one since.....no issues and saved lots of $.

Saving money not using a realtor to buy? Did the seller's realtor agree to limit commission and lower home price because of it?

[crash_davis 23,113]

46 minutes ago, kmac30 said:

Instead of just going with flipper contractor, I think the better lesson was to get multiple bids on your project. Just me, but I’ve seen some flips that were terrible quality work.

This. Any home improvement project should only be awarded after multiple bids. 

I just had repair around my house. It was replacing the horizontal boards under my roof line. One dude quoted me 7K. Another dude quoted me $1200. One guy quoted me $600. 

[horn4life 3,760]

Well most of contract bidding is not complete rocket science.  With the internet you can do a lot of the basic cost research yourself, doing a little math and measuring.  At least have a darn good idea of the retail material costs, and estimate time costs.  If you know the material costs you are really just negotiating labor.  I will also say that some of the "flipper" contractors are sometimes a little short on the level of attention to detail you might want for your own home.  So make sure that YOU are paying attention to make sure they are doing all the right things from a prep perspective.

About the biggest "pearls of Wisdom" I can give you with painting is 1) spend as much money as necessary painting sample blocks on the house, biggest mistake is to not be happy with the colors you pick.  Sherwin Williams has a cool tool on their website where you can try different paints on different interior and exteriors.  I think you can upload your own photos, but it helps choosing colors. A couple test blocks are always smart.  2) Good painting is all about good prep work.  Tons and tons of frigging caulk sealing up all the seams give you the best finished product on exterior work. Indoors it is still all about prep work, but it's taping, smoothing, patching and sanding before a drop of paint ,that makes the job good or not.

[Dbeasy 15,049]

Ask enough questions from your realtor that this is the last time you use a buy-side realtor.
I was advised to never use a realtor when I first bought a home but I still did because was a bit hesitant.  I realized I did most of work and analysis.  I've bought a few homes without one since.....no issues and saved lots of $.

You don’t save a penny unless the selling realtor forgoes or a part of their full commission or rebates it to you or you negotiate the price down to a level the seller wouldn’t have otherwise sold for.

[Enchubben 5,510]

11 minutes ago, Dbeasy said:

You don’t save a penny unless the selling realtor forgoes or a part of their full commission or rebates it to you or you negotiate the price down to a level the seller wouldn’t have otherwise sold for.

which is why you should always have a realtor friend or family member that's a realtor involved so they can collect on the commission even if they don't do shit.  They can work in a portion of the commission to you as a contribution so they don't get taxed on it either. 

[deadshank 24,652]

1 hour ago, Enchubben said:

which is why you should always have a realtor friend or family member that's a realtor involved so they can collect on the commission even if they don't do shit.  They can work in a portion of the commission to you as a contribution so they don't get taxed on it either. 

Realtors sharing  commissions with parties not licensed as real estate agents or brokers is illegal in Texas. 

[Enchubben 5,510]

something about that doesn't seem right then. When I bought my new home, which I could (and maybe should) have done myself, I pulled in a realtor halfway through. She collected 4% of the home price, and as a part of my close she gave me 25% of her commission back as contribution towards close.  Is that illegal? It was all documented and the lender didn't seem to blink an eye.

[Dbeasy 15,049]

Realtors sharing  commissions with parties not licensed as real estate agents or brokers is illegal in Texas. 

Just to clarify. If you are a buyer, you can bring in your realtor. For example, that realtor will earn the 3% commission. 1% of that goes to the broker. Of the remaining 2%, the realtor can rebate a part or all of that back to the buyer at closing. I’ve done this for friends and family many times. I won’t do it all the time, but if you catch me while I’m not that busy, I’ll do it. The broker has to approve the rebate. Plus, the buyer gets a realtor who can help them with the little “gotchas” of the deal.

[Dbeasy 15,049]

something about that doesn't seem right then. When I bought my new home, which I could (and maybe should) have done myself, I pulled in a realtor halfway through. She collected 4% of the home price, and as a part of my close she gave me 25% of her commission back as contribution towards close.  Is that illegal? It was all documented and the lender didn't seem to blink an eye.

That is legal.

[deadshank 24,652]

Disclosing the contribution of commission and making it part of the closing docs is legal.   I thought Enchubben was talking about getting a straight up sack full of cash from his agent’s split of the commish. 

[Dbeasy 15,049]

16 minutes ago, deadshank said:

Disclosing the contribution of commission and making it part of the closing docs is legal.   I thought Enchubben was talking about getting a straight up sack full of cash from his agent’s split of the commish. 

what he's describing is the buyer getting those commission dollars from the real estate agent, instead of them going to the agent. That's legal and is done often. It's just seen as a discount on realtor services.

[Enchubben 5,510]

1 hour ago, deadshank said:

Disclosing the contribution of commission and making it part of the closing docs is legal.   I thought Enchubben was talking about getting a straight up sack full of cash from his agent’s split of the commish. 

Yes sorry, what dbeasy said. I wasn’t clear.

Had I not brought in my family member/realtor, no commission though and no contribution to me.

[billfromlaketravis 11,467]

Im taking multiple bids on the painting. I agree with the first painter’s conclusions, but his pricing was way too high. If somebody in the thread knows a good/reasonable painter in Houston, please send them my way.

Best Buy was next in line to try screw me. Their home consultant quoted me $3200 for a modem, WiFi set up, Ring cameras, and to mount some TVs. Hard pass.

I should have probably used my flipper friend as my realtor. He would have taken a lower commission. The guy quit his job at a big O & G company to focus on flips, and his wife is a surgeon. He’s not hurting for money. I’ll certainly use him to sell my house down the road. 

Edited October 10, 2020 by billfromlaketravis

[billfromlaketravis 11,467]

After saying for years I never wanted a yard, I spent two hours doing yard work today. The wife won out, they always do,  and she got her pool. The previous owner kept the yard nice, but he made some dumb ass choices. I knocked out some expensive projects a landscaper would have killed me on. 
 

 

[Hornbeliever 712]

10 hours ago, Dbeasy said:

You don’t save a penny unless the selling realtor forgoes or a part of their full commission or rebates it to you or you negotiate the price down to a level the seller wouldn’t have otherwise sold for.

That's right.   I've always negotiated it away.   So for 100k home (easy math), I offer 97.5k, lets say.  Originally,  home seller would net 94k by paying 6% in 3/3 split.  This way,  they net higher and i pay lower amount.   Win win. 

The con to this is a realtor can show you many homes in 3-4 hours.   My way,  I've had to deal with logistics and could never see lots of homes in one day.  More scattered.  But well worth it in my view. 

Also,  avoid flat paint.   Cheaper but you'll regret it!

 

[Enchubben 5,510]

for anyone doing home repair projects and wanting multiple bids....

I have used the hell out of this app called thumbtack which helps you organize all your home projects, gives you access to a bunch of providers and reviews and let’s you setup quotes/bids through the app.

Makes it really easy to have three or four people come out to give you pricing and once you find someone good, I tend to use them outside of the app. The app is free btw.

[billfromlaketravis 11,467]

I found a handyman to take down an awning, take off some burglar bars, a security gate, and haul it all away for $250. 
 

Thanks for the Thumbtack rec. I might have the painting zeroed in. 
 

Empire Today is having a half off labor and materials sale right now. I’ll hear them out. 

[ROFL BOX 6,649]

for anyone doing home repair projects and wanting multiple bids....
I have used the hell out of this app called thumbtack which helps you organize all your home projects, gives you access to a bunch of providers and reviews and let’s you setup quotes/bids through the app.
Makes it really easy to have three or four people come out to give you pricing and once you find someone good, I tend to use them outside of the app. The app is free btw.

There are lots of variables that Thumbtack doesn't account for because it doesn't know HOW to account for them.

As to roofing, most homeowners don't know what a dead valley is, where it is needed & if they need one. They don't know about "Net Free Air" or what the right calculations are for proper NFA.

Sent from my SM-G950U1 using Tapatalk

[Enchubben 5,510]

3 hours ago, ROFL BOX said:

There are lots of variables that Thumbtack doesn't account for because it doesn't know HOW to account for them.

As to roofing, most homeowners don't know what a dead valley is, where it is needed & if they need one. They don't know about "Net Free Air" or what the right calculations are for proper NFA.

Sent from my SM-G950U1 using Tapatalk
 

100% it just gives you access to a database and will do the initial reach out to multiple services providers at once. I use it as a yellow pages and scheduling app. You should never accept a bid for work over a couple hundred bucks without having them look at the project in person first.

[Gil Bang 25,954]

Just to clarify. If you are a buyer, you can bring in your realtor. For example, that realtor will earn the 3% commission. 1% of that goes to the broker. Of the remaining 2%, the realtor can rebate a part or all of that back to the buyer at closing. I’ve done this for friends and family many times. I won’t do it all the time, but if you catch me while I’m not that busy, I’ll do it. The broker has to approve the rebate. Plus, the buyer gets a realtor who can help them with the little “gotchas” of the deal.

Please tell me that your figures were for illustration only.

 

Anybody who gives their broker a full point on a 3 point deal needs to have their head examined.

 

I’m on a 95/5 split. The worst I’ve heard of is 80/20 and that’s for new licensees with zero experience.

[Guest Lobo]

You know the title insurance business is nervous about blockchain when they start offering an unlimited lifetime warranty on their product.  

Dead Men Walking.  

[Dbeasy 15,049]

Please tell me that your figures were for illustration only.
 
Anybody who gives their broker a full point on a 3 point deal needs to have their head examined.
 
I’m on a 95/5 split. The worst I’ve heard of is 80/20 and that’s for new licensees with zero experience.

I’m a real estate investor and do this on the side. I also run a company full time. Anyone who does a few deals as an agent quickly reaches the type of splits you are describing.

[Judge Roybeanbag 11,819]

On 10/10/2020 at 11:05 PM, billfromlaketravis said:

I found a handyman to take down an awning, take off some burglar bars, a security gate, and haul it all away for $250. 
 

Thanks for the Thumbtack rec. I might have the painting zeroed in. 
 

Empire Today is having a half off labor and materials sale right now. I’ll hear them out. 

You took down the burglar bars and gate?  What’s your address?

[billfromlaketravis 11,467]

Definite thumbs up for Thumbtack. It saved me thousands on painting. The flooring quotes look good this far as well. 

[Randolph Duke 4,034]

On 10/9/2020 at 7:03 PM, billfromlaketravis said:

After saying for years I never wanted a yard, I spent two hours doing yard work today. The wife won out, they always do,  and she got her pool. The previous owner kept the yard nice, but he made some dumb ass choices. I knocked out some expensive projects a landscaper would have killed me on. 
 

 

Get used to doing things you don’t like to do. Or paying someone else to allow you to avoid those jobs. 

Find a good local hardware store. They will have far less employee turnover than big box stores, do you can refer to them for help on projects, or get a quick referral to help you. Take pictures on your phone to help explain your projects. 

On any project, identify the steps or the work you can do. Farm out the rest. I needed a new water heater. I was fine with the specs on the old one, so I made a lateral purchase, moved in in place next to the old, drained the old, and paid $50/hr for the guy to come by and make the connection. It took him 10 mins and he made a quick $50. Painting the house, I do the the easier stuff and hired a guy to help me finish the job. 

In other words, be your own grunt and your own trainee. The savings add up quickly. 

I have a guy coming in next week to help me with some Sheetrock work (modifying built-ins). When he gets there, I will have materials on site for him and will learn from him. An extra $50 to spend an hour criticizing my work and teaching me tips is worth it to both of us.

I may never want to do Sheetrock again, but at least I will know what to look for and what questions to ask next time I farm the work out. 

[billfromlaketravis 11,467]

Painting your entire home kind of sucks. Thank God we have another place to sleep and spend the evenings. I don’t care on your home size. It’s going to take a week. 
 

Floor guys coming next week. Way under the median quotes. Thanks again for the Thumbtack recommendation. 
 

We knocked Comcast Fiber down to $35 a month. ADT down to $29.99 a month. 

[immamac 42,849]

I thought you were surly 1% this whole time. 

[billfromlaketravis 11,467]

13 hours ago, immamac said:

I thought you were surly 1% this whole time. 

You must have me confused with billfromtarrytown. 

[ChickenSandwich 9,834]

Slightly off topic, but time to shop around for home insurance. Who do you use or like?

[NeverMarryAStripper 21,907]

Not sure of the name, but he comes around once a week to collect cash in an envelope.  My house hasn't burned down yet.

[Chewbacca 7,777]

On 10/16/2020 at 10:01 PM, immamac said:

I thought you were surly 1% this whole time. 

His bourbon collection is the reason he's just now buying a house.

[T’Boo Ted Marshall 2,732]

Slightly off topic, but time to shop around for home insurance. Who do you use or like?

@C-man can help

[StassneyHorn 6,575]

I’ve had a place off Stassney and South 1st for about two and a half years. I’m thinking of selling and moving out of state to Tennessee to finish up some licenses, and if things are good possibly stay there.

It was the first place I bought, I get letters at least once a month from companies that want to buy my place but they’re all form letters. Is it smart at all to talk to these places or should I use a realtor? I’ve got popcorn ceilings in a small, old townhome (917 sq ft 2/1.5). Could probably upgrade cabinets, and the fridge or oven, but not sure how much that increases value.

Apologies if this is wrong thread, was my first home buy.

[Gil Bang 25,954]

14 hours ago, StassneyHorn said:

I’ve had a place off Stassney and South 1st for about two and a half years. I’m thinking of selling and moving out of state to Tennessee to finish up some licenses, and if things are good possibly stay there.

It was the first place I bought, I get letters at least once a month from companies that want to buy my place but they’re all form letters. Is it smart at all to talk to these places or should I use a realtor? I’ve got popcorn ceilings in a small, old townhome (917 sq ft 2/1.5). Could probably upgrade cabinets, and the fridge or oven, but not sure how much that increases value.

Apologies if this is wrong thread, was my first home buy.

No worries.  We have a real estate thread over on what's now "6th Street" but whatever. 

If you don't know, I'm a realtor (in CA), and here's my 2 cents:

Those form letters are cash buyers, and they are gonna lowball you, and then, once you've accepted an offer, they are gonna beat the shit out of you to get the price even lower.  

If your home can be resold with financing (meaning, if it qualifies for financing) you will almost certainly do better with conventional marketing.  If it's a real piece of shit and cannot be financed, the cash buyer form-letter guy may be your only hope.

You may be surprised what your home is worth.   Call a local reputable realtor or two, and ask for a market analysis.  Be sure and get a "net sheet" which shows what you will walk with once all expenses are paid. 

 

 

[ROFL BOX 6,649]

Yep, those form letters go out to everyone on your street & in every neighborhood.  They use computer programs to try & make it look like you're the only person that has received this letter & it's personalized to you... & it's not.

Obviously they aren't doing charity work here; it's for profit.  Buy low, sell high.

Unless you're in a pinch, do the conventional realtor thing & sell on your own terms.  If you need a realtor referral, I know lots - we probably do one project a month for a bunch, whether it's an actual repair of some sort or they have a TREC licensed inspector that flags something.

[LCHorn 2,620]

On 10/20/2020 at 7:56 PM, StassneyHorn said:

I’ve had a place off Stassney and South 1st for about two and a half years. I’m thinking of selling and moving out of state to Tennessee to finish up some licenses, and if things are good possibly stay there.

It was the first place I bought, I get letters at least once a month from companies that want to buy my place but they’re all form letters. Is it smart at all to talk to these places or should I use a realtor? I’ve got popcorn ceilings in a small, old townhome (917 sq ft 2/1.5). Could probably upgrade cabinets, and the fridge or oven, but not sure how much that increases value.

Apologies if this is wrong thread, was my first home buy.

Those guys are mass marketing because they are looking for the stupid and/or lazy. 

This is why realtors exist (at least partially). 

[StassneyHorn 6,575]

Thanks for the responses, I understand it’s a form letter ha. Just starting to think about the process out loud and it had me wondering about those letters and recall ads like the Chris Watters 3 day guarantee here in Austin. I think the location could sell the place quick enough with any realtor, just unsure the pressure involved to remodel for a sale or what kind of increase in price I could be looking at as a result. 

[Gil Bang 25,954]

Those are questions that an experienced realtor can answer for you.

[billfromlaketravis 11,467]

We finally finished the paint and floor marathon. Only took 10 days. My wife is a saint for staying at the house answering the workers’ questions while I worked.

We’re moving in next week. 

[billfromlaketravis 11,467]

On 10/19/2020 at 10:34 AM, ChickenSandwich said:

Slightly off topic, but time to shop around for home insurance. Who do you use or like?

Not sure what you’re located, but Charlie Moreno at Goosehead in Houston will save you some money.

Edited October 24, 2020 by billfromlaketravis

[billfromlaketravis 11,467]

On 10/20/2020 at 7:56 PM, StassneyHorn said:

I’ve had a place off Stassney and South 1st for about two and a half years. I’m thinking of selling and moving out of state to Tennessee to finish up some licenses, and if things are good possibly stay there.

It was the first place I bought, I get letters at least once a month from companies that want to buy my place but they’re all form letters. Is it smart at all to talk to these places or should I use a realtor? I’ve got popcorn ceilings in a small, old townhome (917 sq ft 2/1.5). Could probably upgrade cabinets, and the fridge or oven, but not sure how much that increases value.

Apologies if this is wrong thread, was my first home buy.

We found out recently the former owner of our house inherited some millions after his mother passed. He didn’t bother to make a single improvement before he listed the house. He could really give a shit about spending 5k to make 7k back when he sells  the house. 
 

My point is, is the juice worth the squeeze? 

Edited October 24, 2020 by billfromlaketravis

[ChickenSandwich 9,834]

Yup. Why deal with ramifications. Crappy work. Warranty info. Does the buyer like the cosmetics of the repairs. Fuck that. As-is

*price accordingly 

Edited October 24, 2020 by ChickenSandwich

[UTPhil2006 3,807]

@StassneyHorn I can assist you with either selling or potentially non low ball purchasing depending on what you want to do with it (we can go over both options, like above said is the juice even worth the squeeze) -- shoot me an email - phil@reihomerealty.com

Edited October 24, 2020 by UTPhil2006

[deadshank 24,652]

10 hours ago, UTPhil2006 said:

@StassneyHorn I can assist you with either selling or potentially non low ball purchasing depending on what you want to do with it (we can go over both options, like above said is the juice even worth the squeeze) -- shoot me an email - phil@reihomerealty.com

Phil is totally hawt, too. 

[UTPhil2006 3,807]

39 minutes ago, deadshank said:

Phil is totally hawt, too. 

And I put out 

[UTPhil2006 3,807]

39 minutes ago, deadshank said:

Phil is totally hawt, too. 

And I put out 

[Horn_Spanker 524]

Tips I learned the hard way:

Don't buy a super long water hose, buy several shorter ones and connect them when needed.

Don't plant winter rye grass.  You'll be mowing all winter while your neighbors laugh at you.