Real Estate advice....

[bepperb]

Involving a realtor in this is absurd. This should be as simple as getting the title insurance and whatever else the new mortgage requires and be done with it. Any hand holding would be better done by an attorney than a realtor.

The fact the son has a buyers agent has no bearing on anything. The agent hasn't shown him the house and has no entitlement to commission.

 

[bepperb]

Originally Posted By: andrewg
Thanks so far to all that have quickly responded. I just sent her son an email and advised him about all that was said here and not really needing anything more perhaps than a real estate attorney.
Lot's of things to discuss with the girlfriend and her son. Bottom line is being able to sell the property and not owe any fees. She'd like to be free and clear with the debt.


Not to be a jerk, but you make it sound like a realtor is preferable to an attorney. That's ridiculous. In this case an attorney is cheaper and more qualified... a real no brainer. A realtor's strengths are knowlege of the market and as a sales person. Those aren't useful in this situation. When it comes to knowlege of the transaction itself an attorney is a dozen times more qualified.

 

[JHZR2]

Originally Posted By: mrsilv04
Forget the realtor. That's an enormous waste of money on this transaction (and most other transactions as well). A good real estate lawyer is all that is needed.


+1. The rest is part of the mortgage costs the son will take (hopefully on a 15yr since rates are so low).

No reason to pay 3 or 6% on a family deal.

 

[Quattro Pete]

Originally Posted By: bepperb
Originally Posted By: andrewg
Thanks so far to all that have quickly responded. I just sent her son an email and advised him about all that was said here and not really needing anything more perhaps than a real estate attorney.
Lot's of things to discuss with the girlfriend and her son. Bottom line is being able to sell the property and not owe any fees. She'd like to be free and clear with the debt.


Not to be a jerk, but you make it sound like a realtor is preferable to an attorney.

Huh? Where did he say this? He came here asking questions, the way I read it.

 

[andrewg]

Originally Posted By: bepperb
Originally Posted By: andrewg
Thanks so far to all that have quickly responded. I just sent her son an email and advised him about all that was said here and not really needing anything more perhaps than a real estate attorney.
Lot's of things to discuss with the girlfriend and her son. Bottom line is being able to sell the property and not owe any fees. She'd like to be free and clear with the debt.


Not to be a jerk, but you make it sound like a realtor is preferable to an attorney. That's ridiculous. In this case an attorney is cheaper and more qualified... a real no brainer. A realtor's strengths are knowlege of the market and as a sales person. Those aren't useful in this situation. When it comes to knowlege of the transaction itself an attorney is a dozen times more qualified.

No, I wasn't saying that. I'm really just asking for advice for my girlfriend. I am about as ignorant as she is about real estate transactions....especially of this sort. I just want what is simple for her and her son and will cost her nothing to get out of her house. That's all.

 

[Tdbo]

Originally Posted By: opus1
Originally Posted By: expat
WHY have a Realtor at all!!
A good point. Perhaps just a real estate lawyer would suffice?


+1. Get a good real estate lawyer to draw up the paperwork. Done. That is what I did when I bought my parent's house.

 

[PandaBear]

If she is just going to sell it to a family member, a lawyer is good enough. However I think if a lender for the son is involved, the lender would likely need a title insurance and home inspection (just like a refinancing).

So in that case I think a title company can handle that (probably for about $1300) and the lender for the son should have this included in the closing cost (or lender pay for it in a no cost loan).

 

[Kuato]

All good advice above -- agree completely that a realtor is not required, and lawyer's fees etc are contained in closing costs. If she just wants to walk away, she should negotiate with her son to pay all the fees, etc so she is free of the house.

To answer the original question, it depends on what state you are in as to whether the realtor can act on behalf of both buyer and seller.

 

[Donald]

Originally Posted By: andrewg
Question to those that can help. My girlfriend owns a home that she really wants to get out of. Her son wants to buy it from her. The money owed on the loan is $230,000. The value of the property is about exactly what she owes. She wants to sell her home to her son for just what she owes in order to make it affordable for him, yet pay off her debt. She realizes there is no real equity and will make no money on the deal. Assuming her son has a lender and a realtor to make this happen, does my girlfriend REQUIRE a realtor (selling agent) of her own to sell the house OR can her sons realtor handle BOTH transactions? The reason I am asking this question is that if she get's a realtor of her own, the price of the house would have to be raised in order to pay her realtor, correct? So the $230,000 house would quickly become maybe thousands more. This is why she is trying to figure out if using one agent to attend to both transactions may save her and her son money. She wants to obviously get out of this house without paying to do so.
Any advice or ideas would be appreciated.


Why is there a realtor involved at all? A lawyer should be able to draw up a contract for sale which the lender will want to see and then the lender's attorney will do all the deed and mortgage paperwork.

I would avoid a realtor. There is no need and they will just have their hand out to grab a commission. They have not earned a commission.

 

[andrewg]

Originally Posted By: Donald
Originally Posted By: andrewg
Question to those that can help. My girlfriend owns a home that she really wants to get out of. Her son wants to buy it from her. The money owed on the loan is $230,000. The value of the property is about exactly what she owes. She wants to sell her home to her son for just what she owes in order to make it affordable for him, yet pay off her debt. She realizes there is no real equity and will make no money on the deal. Assuming her son has a lender and a realtor to make this happen, does my girlfriend REQUIRE a realtor (selling agent) of her own to sell the house OR can her sons realtor handle BOTH transactions? The reason I am asking this question is that if she get's a realtor of her own, the price of the house would have to be raised in order to pay her realtor, correct? So the $230,000 house would quickly become maybe thousands more. This is why she is trying to figure out if using one agent to attend to both transactions may save her and her son money. She wants to obviously get out of this house without paying to do so.
Any advice or ideas would be appreciated.


Why is there a realtor involved at all? A lawyer should be able to draw up a contract for sale which the lender will want to see and then the lender's attorney will do all the deed and mortgage paperwork.

I would avoid a realtor. There is no need and they will just have their hand out to grab a commission. They have not earned a commission.


A realtor got involved when her son started looking for a home without telling his mother. As soon as she found out he was looking...she offered her home.

 

[Click]

As a retired Realtor after 32 years of serving clients successfully, I can say that in a transaction between relatives like you are proposing, it can be done by a Title company or real estate lawyer or even a Realtor for a small fee. The realtor does not have MLS involvement or advertising or driving clients around, so some Realtors will do this type of transaction for a small fee similar to that of a real estate lawyer. BUT the biggest issue not mentioned is financing. You say its NOT an assumable loan, then the son needs to find a lender for a ZERO down 100% loan to value mortgage. Thats what got our country's financial mess started in 2007.
Also, a new lender will call for an appraisal and what if it only appraises at $200,000 then the son has to come up with even more money.
Id recommend you talk with lender FIRST and see if the whole thing is even remotely possible. I see all kinds of red flags here due to the new finance marketplace. Its not like the old days anymore in this crazy business.

 

[The_Jeff]

I used a buyer's agent but don't recall signing anything saying anything I bought, I had to do through her.

Son should just tell his agent, sorry, things changed, not looking anymore.

Agent shouldn't be too annoyed, as he was probably mostly showing listings from his own brokerage or friends of his anyway.

 

[hattaresguy]

Skip the real estate agent, the real challenge will be for her son to find a lender that will go to 100% LTV.

Questions how much does her son make and how much does he have to put down? Also does your state have any first time buyer programs like CHAFA in CT that will let you go as little as 3% down.

The first step is to get the house appraised, than figure out if the money works. An appraisal should be under $400. Most people unless they are in the market professionally really don't know what their stuff is worth.

 

[Quattro Pete]

Why is everyone assuming the son has no money for a downpayment and needs to finance 100% of the house value? Did the OP mention that? I must have missed it.

 

[PandaBear]

Originally Posted By: eljefino
Agent shouldn't be too annoyed, as he was probably mostly showing listings from his own brokerage or friends of his anyway.

Indeed, a few years down the road he may want to sell and look for the agent for future business.

 

[hatt]

Originally Posted By: andrewg

A realtor got involved when her son started looking for a home without telling his mother. As soon as she found out he was looking...she offered her home.
Did the son sign a contract with the realtor?

 

[hattaresguy]

Originally Posted By: Quattro Pete
Why is everyone assuming the son has no money for a downpayment and needs to finance 100% of the house value? Did the OP mention that? I must have missed it.


If he has money that's great. Still the house should be appraised, why would he want to pay $230k for a $200k house?

 

[andrewg]

Originally Posted By: hatt
Originally Posted By: andrewg

A realtor got involved when her son started looking for a home without telling his mother. As soon as she found out he was looking...she offered her home.
Did the son sign a contract with the realtor?

I just found out that this realtor is selling her sons current home.

 

[xfactor9]

Just wondering why she's so anxious to get out of this house? I think it'd be easier and cheaper to rent it to him and let him take care of the house as if it were his. There would be no costs like title, escrow, appraisal, mortgage orgination, etc. Both seller and buyer are spending thousands of dollars to basically transfer a piece of paper within the family. Doesn't seem worth it.

 

[KD0AXS]

Originally Posted By: xfactor9
Just wondering why she's so anxious to get out of this house? I think it'd be easier and cheaper to rent it to him and let him take care of the house as if it were his. There would be no costs like title, escrow, appraisal, mortgage orgination, etc. Both seller and buyer are spending thousands of dollars to basically transfer a piece of paper within the family. Doesn't seem worth it.





Would probably be difficult to buy another house or even rent when they pull your credit and see you already owe 230K on a mortgage. They will want to see that paid off first.