wrote in news:f5878ef9-ef99-4b2f-9555-abbfa28d23c0
@e60g2000hsh.googlegroups.com:


I'm interested in buying a home in IL, first time home buyer.
There is a home came out as fair condition and is priced $195000.
My realtor said it is 'a bit under priced' didn't exactly mention how
much.

My realtor wants me to put as much earnest money as possible to get it
closed as quickly as possible.
He also believes that will help him for negotiation process.

In this market condition - I heard it is buyers market, what is the
reasonal amount for earnest money?
I was thinking that I can put $5000. Should I put more or less?
Also, my realtor is thinking about making initial offer for $180,000,
expecting to close the deal
around $190,000. My realtor explains that though it is buyers' market
and for some houses, those come out
as discounted as much as 20 - 30%, however that would be rare for the
housing market that I am interested in,
under $200,000. In usual situation, I would agree with my realter
100%, however, in this given market condition, I'm not so sure,
feeling that I could demand lower price; however, on the other hand I
wouldn't want to scare off sellers that I'm getting a bit tired of
home buying process.

well, this pretty much sums up my situation.
Do you think that I could demand lower than or around $180,000?

Ask the realtor to pull the CMA's (comparative market analysis) aka Comps
on 3 homes that have CLOSED in the SAME AREA within the last 6 MONTHS. I
say CLOSED and not "active listings". People can list the price at
anything. What they get is a different story. If the market is changing
rapidly there you may want to ask for 3 months.

The realtor may mention that the comps do not reflect and sale
contingencies on the price it sold for. For example: seller to put new roof
on, seller paid some closing costs, seller agreed to have driveway
resurfaced, seller paid an upcoming assessment which technically he did not
have to.

If the realtor discourages you from doing this I would get another realtor.

As far as what you put down there should be a customary percentage for your
area. There is no need to put down more.

Couple of more realtor questions: How long has the house been on the
market? What is the typical time on the market for they level home you are
looking at.

One of the standard items you can put in the contract offer is that the
house must appraise at or above the offering price. This gives you an out
or renegotiation justification. If you will have a loan the bank will
require an appraisal. Soe banks actually have someone come out. Some do
nothing more than pull Comps. If you get a private licensed appraiser then
they work for you. You would get a written appraisal.

Especially being a first time buyer SPEND THE $ AND GET A HOME INSPECTION.
A satisfactory home inspection should be part of the contract offer. Be
there when they do the home inspection. They encourage it. They'll show you
the things they find (as well as a written report) and they'll teach you
stuff about houses.

Some states require a home inspector be licensed by the state. In some
states, believe it or not, any jabonee can set up shop and call themself a
home inspector. Either way, if you want a warm fuzzy on the quality of your
inspector get one that is a member of ASHI http:\\www.ashi.org or NACHI
http://www.nachi.org

Everything has to be put in the offer. The offer may go back and forth a
few times but when it's accepted by buyer & seller, you can't add stuff
later.

Keep in mind that the commission of both the buy and selling realtors is
paid by the seller. Both realtors work for the seller (there are
exceptions) but they do have a code of ethics. Your realtor is not
necessairly out to put the screws to you.


This is not an an all inclusive home buying post. There are many things,
important things, not mentioned. If you have a family member or very good
friend who has done it a few times that can be invaluable.

Red...