all cash purcahse - easy questions

**mostpop** · 12-27-2009, 06:15 PM

1. i am trying to buy a house and was wondering do i have to pay the buyer agent or does the buyer agent take money from the bank (this is a short sale)

2. does the seller agent get paid from the bank?

3. the listing price of the short sale was $175 it says pending lender approval .. what does pending lender approval mean? Do you think i should offer $165 cash? 10k less than the pending price.. they told me that even if i offer 175 i still have to wait 20 days for their decision, its a short sale i dont understand why i have to wait 20 days..

4. if i was doing an all cash purchase of $175 and i have no loan how much do u think i actually pay when everything is all done with...(title, insurance, etc... tax.. how much do i really need in cash if i want to make a $175k payment)

5. if i dont get a buyer agent what am i saving..?

6. this house was partially burnt in the front it doesnt show up on title 'YET' thats what my buyer agent says but it will probably show up on the prelimiary .. but the insurance comapny fixed everything.. should i be concerned about something? if i try to sell the house is it going to be a problem if the house was already fixed?

7. since this is cash purcahse should i make the EMD to the escrow comapny? my buyer agent says to make it to them what do you guys think.??

**mostpop** · 12-27-2009, 09:14 PM

5. if i send out 5 offer letters and 2 bank accept me.. can i just choose 1 or do i have to take both? can i send

out as many offer letter as i want?

**markbrian** · 12-28-2009, 06:51 AM

1-depends on the terms of your buyers agent agreement and whether or not the property is offering a buyers agent commission.

2-the seller agent gets paid from the proceeds to the seller

3-If you get an answer in 20 days for a short sale you will be lucky. The bank has to order a BPO and determine if the loss they are taking is OK with their guidelines.

4-Since I am not familiar with the standard rates, charges etc for your area, this question could be best answered by your buyers agent

5-Because of the many questions you have here, and many others will come up, I seriously suggest that you NOT attempt a short sale transaction by yourself unless you are a highly experienced real estate professional

6-You will need to disclose this in my state, again this is a question that you should be asking your agent. It might affect resale, did it affect your decision making process? Don't you think some potential buyers will be concerned about this?

7-Listen to your buyers agent

In general, you need to talk with your buyer agent. Good luck and best wishes!

**BoiseRealEstateSoup** · 12-28-2009, 11:52 AM

By the sounds of it, you have the wagon in front of the horse.

If you are seriously getting ready to spend $175k don't you think you should have a professional in your corner?

Seeking answers online is ok, but you need to have someone on your side...whether you pay them or the bank does. Paying a good agent 5k is nothing compared to losing 175k......

Almost every question you asked is based on the terms of your contract.

I'll attempt to answer the questions, but remember, every purchase and sale agreement is different.

1. The seller will pay both agents. That will show up on your HUD-1 if it were a fee to you.

2. See above.

3. Your buyers agent can help you determine what a good offer is. Keep in mind, you should only offer what the property is worth to you. Also keep in mind that what it may be worth to you could be drastically different from what the market says its worth...in other words, be realistic.

A short sale isn't a short time frame. They can take up to 90 days...I'm working on one thats taken 7 months so far.
They take a long time because the seller is trying to get the bank to lower their payoff amount and release the lein/deed of trust. That takes TONS of hoop jumping and negotiating with mortgage insurance companies, investors and 3rd party decision makers.

4. Get a buyers estimated settlement statement from your Realtor.

5. Nothing...in fact, your taking a huge loss. Get an agent and most likely the bank will pay them. If not, you pay them for getting you through this and helping answer basic questions like these.

6. Disclosure. If you buy this house and then one day sell it, you have to disclose the fact that it was burned. Consequences are HUGE for non disclosure and as someone already mentioned...don't you think that potential buyers might be discouraged from buying this from you??? I would be...especially with all that is available to choose from on the market.

7. Your EM can be held by your buyers broker and made out to their trust account most likely. Don't write a check to anyone until you have a Receipt for EM which is most likely a part of your states Purchase and Sale Agreements.

These type of seemingly basic questions are vital and you really need an agent if you dont have one.

Good luck!