thebiglebowski Posted May 6, 2012 Share Posted May 6, 2012 I have a house that I have owned free and clear for a couple years. I am guessing it worth $35k, maybe $40 on the best day. I've been saving for a couple years and should have another $35k by the end of the summer. I am considering moving up a housing level. I want to thoroughly think out all of the costs, though, to determine if it is worth it or it makes sense to just sit tight for a little longer. I don't HAVE to do anything. 1) Real estate agent cut on both sales (I'm fairly sure I won't do a for sale by owner). Are agents usually willing to take lower cuts if you can give them a sale and a buy? 2) Fixed costs (home inspection, title insurance, etc...). How much would these add up without a bank mortgage involved? 3) Moving. I can do this myself in one day. No cost, except maybe renting a truck. Just a pain in the ass. 4) Tax implications? Anything else to consider? Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted May 6, 2012 Share Posted May 6, 2012 Do what you want, there is no rough estimate I can tell you due to the main factors being the Agent's % cut and the home inspection price. I would hope your real estate is better than my rental property, they went from $320 a pop to a mere $90k! Quote Link to comment Share on other sites More sharing options...
natealcatraz Posted May 6, 2012 Share Posted May 6, 2012 320 to 90. The housing market is such shit. Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted May 6, 2012 Author Share Posted May 6, 2012 So I would probably pay 5% on the price of both houses to the agent? If I sold at 30k and bought at 60k I would pay 45 hundred to move up 30K? Not sure that is worth it. Just wanted to make sure I am thinking about this correctly. Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted May 6, 2012 Share Posted May 6, 2012 320 to 90. The housing market is such shit. It's Florida property, they tanked the worse! It's mainly Snowbird/Vacation area. So I would probably pay 5% on the price of both houses to the agent? If I sold at 30k and bought at 60k I would pay 45 hundred to move up 30K? Not sure that is worth it. Just wanted to make sure I am thinking about this correctly. You would pay the 5% of the Agent, plus the closing cost of selling (taxes, fees, title transfer.) Unless you have silver tongue to negotiate the splitting of cost for selling + buying. A main factor is the timing, it's not cheap to maintain a house that is on the market for months. Quote Link to comment Share on other sites More sharing options...
mattisr1984 Posted May 6, 2012 Share Posted May 6, 2012 you shouldn't be paying the agent their commission for a purchase. That usually falls on the seller / owner. Quote Link to comment Share on other sites More sharing options...
Guest Posted May 6, 2012 Share Posted May 6, 2012 I will probably be looking into real estate in Arizona in the very near future. I will be in the Phoenix area, and it is totally a buyer's market right now, so I am hoping to find a nice ass place for not a lot of $ Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted May 6, 2012 Author Share Posted May 6, 2012 you shouldn't be paying the agent their commission for a purchase. That usually falls on the seller / owner. That makes this feasible. If I can get 3% to the agent on the sale of mine plus taxes (and not have to pay an agent fee on the other one) I might get out with about $2k of costs on the move. I'm gonna sell this house eventually...so its not like I can avoid the costs. Just a question of paying them now or later. I guess the key is finding a house in the $60k range that I will want to hang on to for a while. As for timing, I am targeting the fall. Should be good on the seasonality cycle. What is a percentage to the agent for selling my house that would be considered an "A" rate. Do people sometimes get 1 or 2%? Quote Link to comment Share on other sites More sharing options...
patrick Posted May 7, 2012 Share Posted May 7, 2012 It's Florida property, they tanked the worse! It's mainly Snowbird/Vacation area. Where at? I just took a 98K loss and got out of mine. Credit is wrecked for now, but we needed to move for my job and, well...... I couldn't sell for what I owed. Quote Link to comment Share on other sites More sharing options...
hudsoncomplex Posted May 7, 2012 Share Posted May 7, 2012 Man, the housing market in the states is crazy compared to Canada! Quote Link to comment Share on other sites More sharing options...
jerseydave77 Posted May 7, 2012 Share Posted May 7, 2012 you shouldn't be paying the agent their commission for a purchase. That usually falls on the seller / owner. Seller of the house pays both commissions. When he buys the owner of the house he's buying pays both. I have an aunt who's an agent and having one in the family has saved a lot of money as she handles this stuff for everyone. Quote Link to comment Share on other sites More sharing options...
mattisr1984 Posted May 7, 2012 Share Posted May 7, 2012 you shouldn't be paying the agent their commission for a purchase. That usually falls on the seller / owner. That makes this feasible. If I can get 3% to the agent on the sale of mine plus taxes (and not have to pay an agent fee on the other one) I might get out with about $2k of costs on the move. I'm gonna sell this house eventually...so its not like I can avoid the costs. Just a question of paying them now or later. I guess the key is finding a house in the $60k range that I will want to hang on to for a while. As for timing, I am targeting the fall. Should be good on the seasonality cycle. What is a percentage to the agent for selling my house that would be considered an "A" rate. Do people sometimes get 1 or 2%? I've never sold a house so I'm not sure how the commission is calculated. Be aware I was referring to you buying a new house. As a buyer, you should pay no commissions. When you sell your house, you will pay both commissions to the buying and selling agent. The buyer of your house may try to get you to pay for closing costs but you are not obligated to do so. Much like you may request of a seller. But like you said, its a buyers market which means sellers have less leverage in negotiating a sale. as far as az goes - I live here. Bought a house in scottsdale last year. I think it depends on where you want to live. LOTS of investors. Scottsdale is a desirable place to live so its not uncommon for properties to receive multiple offers. Glendale, maricopa, etc. May be a different story. Chandler is nice as well. There are certain places in phoenix, tempe and mesa that I personally would not want to own a home in but you find a deal if you're ok with the area. ps. I think my agent received a 2% commission on my house Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted May 7, 2012 Author Share Posted May 7, 2012 Works out better for me -- I pay the commissions on the $30k house and someone else pays on the $60k. This got me wondering, though. How can commissions be negotiated if someone else is gonna pay them? How am I supposed to do anything about the commission of someone else's agent? Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted May 7, 2012 Share Posted May 7, 2012 It's Florida property, they tanked the worse! It's mainly Snowbird/Vacation area. Where at? I just took a 98K loss and got out of mine. Credit is wrecked for now, but we needed to move for my job and, well...... I couldn't sell for what I owed. Naples, By the Gulf Coast. Quote Link to comment Share on other sites More sharing options...
goraiders Posted May 7, 2012 Share Posted May 7, 2012 I can't believe you can buy a house for 35k. Quote Link to comment Share on other sites More sharing options...
jase Posted May 7, 2012 Share Posted May 7, 2012 I can't believe you can buy a house for 35k. Exactly, everyone here must be leaving a zero out :/ A cheap house over here $400,000 to $500,000. And that isn't in any of the major cities at all. Quote Link to comment Share on other sites More sharing options...
mattisr1984 Posted May 7, 2012 Share Posted May 7, 2012 I can't believe you can buy a house for 35k. Exactly, everyone here must be leaving a zero out :/ A cheap house over here $400,000 to $500,000. And that isn't in any of the major cities at all. well, you get what you pay for. Quote Link to comment Share on other sites More sharing options...
ajxd Posted May 7, 2012 Share Posted May 7, 2012 I saw a foreclosure house sell for $14k recently. A hoarder lived in it so you basically were buying a shell. Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted May 7, 2012 Share Posted May 7, 2012 I saw a foreclosure house sell for $14k recently. A hoarder lived in it so you basically were buying a shell. I almost bought a Horder House, he passed away sitting in his living space. The house was 17.5k w/ 10% down lol I was lawling while driving to the record shop yesterday (it's in the ghetto.) There was a must sell house sign for $14.5k and $19k was the highest I saw posted there. Cleveland Housing market = the price of a VCR Quote Link to comment Share on other sites More sharing options...
jase Posted May 7, 2012 Share Posted May 7, 2012 Wait, so you CAN buy a house in America, in a major city(ghetto) for $19,000?!? That is simply astonishing. It'd cost more to buy in Cuba or Mexico Quote Link to comment Share on other sites More sharing options...
mattisr1984 Posted May 7, 2012 Share Posted May 7, 2012 yeah, you can. but chances are it will be a property that needs a LOT of work. investors buy them, fix them up and rent them. for example: http://www.zillow.com/homedetails/2806-W-Latham-St-Phoenix-AZ-85009/7513339_zpid/ i say keep the tagging in the bedroom, what do you think? it adds a unique charm. or this place, which apparently the listing agent wont even walk into: http://www.zillow.com/homedetails/1561-W-Peoria-Ave-Phoenix-AZ-85029/7782094_zpid/ Quote Link to comment Share on other sites More sharing options...
sjb2k1 Posted May 7, 2012 Share Posted May 7, 2012 the house next door to me is for sale. the other neighbor and i have been cutting the grass so there is an iota of curb appeal. not that it matters because the guy across the street cut down a huge tree in his front yard and left it all there. we also now have a bright pink house and mint green house on our street. fuck home ownership, seriously. sorry, i have nothing of value to add. just when i think about selling my house i get all super pissed off at how no one tries to make anything look nice on my street. Quote Link to comment Share on other sites More sharing options...
One Hundred Fifty-Two Posted May 7, 2012 Share Posted May 7, 2012 yeah, you can. but chances are it will be a property that needs a LOT of work. investors buy them, fix them up and rent them. for example: http://www.zillow.com/homedetails/2806-W-Latham-St-Phoenix-AZ-85009/7513339_zpid/ i say keep the tagging in the bedroom, what do you think? it adds a unique charm. or this place, which apparently the listing agent wont even walk into: http://www.zillow.com/homedetails/1561-W-Peoria-Ave-Phoenix-AZ-85029/7782094_zpid/ Former drug dealer and/or hoarder houses. Quote Link to comment Share on other sites More sharing options...
jase Posted May 7, 2012 Share Posted May 7, 2012 yeah, you can. but chances are it will be a property that needs a LOT of work. investors buy them, fix them up and rent them. for example: http://www.zillow.com/homedetails/2806-W-Latham-St-Phoenix-AZ-85009/7513339_zpid/ i say keep the tagging in the bedroom, what do you think? it adds a unique charm. or this place, which apparently the listing agent wont even walk into: http://www.zillow.com/homedetails/1561-W-Peoria-Ave-Phoenix-AZ-85029/7782094_zpid/ They honestly blow my mind, that first one especially. While being slightly crackden like, over here would still sell for maybe $150k in my town. And with a new roof, paint, any kind of lawn/garden work and a bit of new drywall would go for upwards of 200k. What kind of cesspools do you guys live in haha or is America really that far gone as a whole? Quote Link to comment Share on other sites More sharing options...
goraiders Posted May 7, 2012 Share Posted May 7, 2012 yeah, you can. but chances are it will be a property that needs a LOT of work. investors buy them, fix them up and rent them. for example: http://www.zillow.com/homedetails/2806-W-Latham-St-Phoenix-AZ-85009/7513339_zpid/ i say keep the tagging in the bedroom, what do you think? it adds a unique charm. or this place, which apparently the listing agent wont even walk into: http://www.zillow.com/homedetails/1561-W-Peoria-Ave-Phoenix-AZ-85029/7782094_zpid/ They honestly blow my mind, that first one especially. While being slightly crackden like, over here would still sell for maybe $150k in my town. And with a new roof, paint, any kind of lawn/garden work and a bit of new drywall would go for upwards of 200k. What kind of cesspools do you guys live in haha or is America really that far gone as a whole? No, mostly just the rust belt. Phoenix, despite being a big city is really a big suburb. I've been looking into apartments here and a crappy 1 BR is around 200k in Oakland, in San Francisco it'd be like 700k sadly. Quote Link to comment Share on other sites More sharing options...
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