Mechanics of Finding A Home: The Qualitative Squishy Stuff
What do you think about when you want to buy a home? Is it for you? Is it for you and your dog? Is it for you, your spouse and your dog? Will kids come? In-laws? Interlopers? Derelicts? Old lost college friends sleeping on a couch? Do you care about the school district? Do you care about the neighborhood? Need a pool? Is the roof leaking? What about those cracks in the driveway? Any earthquake fault lines nearby? Does it matter to you if John Wayne Gacy used to live there? Ok, you get the idea. There is a lot to consider. The biggest one can be – how easily can I sell the home if I have to?
Most people “hire” someone to help them find a home in the form of real estate commission they pay to a realtor “on the come,” meaning once they buy the home, they pay about 5% to the leeches who helped them shop. This is a big number. Think about it – on a $300,000 home purchase where you scrimped and saved to put down $50,000 after tax dollars and borrow $250,000+ , you pay in real estate commission $15K for someone who spent between 1 and 50 hours driving around your neighborhood giving you the dirt on Mrs. Smith’s trash man and Mr. Jones’ gazanias.