We are getting close to the end of what I think is the most detailed and complex history of building a house! Not only the planning and survey but every aspect of building the house and installing all the amenities to make the house a home. And now at the end all aspects to selling the whole lot to buyer who will have the most complete documentation of what he or she is dishing out the money for. This documentation is truly unique! Thank you for the good work!
God bless you, Scott. You have simultaneously taught (not just technical things, but life lessons) and entertained while taking on an enormous endeavor. This has been a blessing to many.
finally, a topic I'm an expert in not having a screwed up explanation given! also, important to note that the title policy is not a policy that has recurring premiums, nor does it protect against "future" matters or events, nor does it cover matters undertaken by the insured. It's a policy, or contract, of indemnity for which the premium is paid up front and covers the matters described in the policy only. there are three sections: covered risks, exclusions, and exceptions. all are very helpful...and all can be negotiated through what are called "endorsements" and those may carry their own premiums and should be done before the policy is ever paid for.
From Building essentials to sales..It's been quite a learning journey..The more episodes you produce, the more I feel like you don't want to let go of this house..Such a dear Spec House .
Scott, thank you for posting this video. I wish my wife and I had something like this when we bought our first house. Luckily, we did have a great agent that walked us through everything. Money well spent. Now, 3 homes (in two cities), a remodel, and 3 refinances later, we have it down to a system. I actually dislike buying cars more than a home now. We were also lucky that when we approached an agent about “updating” our first house before we sold it, she had been an interior designer as well as an experienced agent, so was able to guide us where to spend our remodel budget that would get the best return. We made all of the remodel $ back in the sale and still had enough to allow us to buy a bigger house (for our bigger family). Thank you for being a teacher. I am a willing and eager student.
Great videos, I’m a realtor in Los Cabos and I’ve seen all the videos on the spec house, you should be proud. This video is the first comment for you, and really you explained the proses really well. Congratulations
After years of processing mortgage loans all over the country at different lenders, I can confirm all of this is accurate and extremely well articulated.
Absolutely love the entire content of this series. I follow very few channels on RUclips, but all of them are of fine craftsmanship. Knife makers, boat builders, musicologists etc. As for home builders this is my first weekly watch. Thanks and keep up the fantastic work!
Great summary, title research is part of the buyer's Due Diligences before finalizing the acquisition I believe, together with some zoning, utilities and land surveying preliminary studies.
Good morning Scott and the EC family, I've fallowed the entire build and now to the final closing of what I would say was an awesome journey. Well done. Greetings from Jamaica 🇯🇲. Will continue to look out for future volg 🙏👍👍
Did a FSBO (For Sale By Owner) a few years back and it worked out great and that was in a buyers market! In a sellers market, the "FizzBO" is the only way to go.
There's brokerages out my way that do a hybrid. You self list it, do the tours and everything and they just get .5% for MLS acfess, negotiations and pictures taken of the house for the listing. Very worth it
You're right in that it's different in parts of the country. Many years ago, I handled my own closing instead of hiring an attorney. When we bought in Nebraska, the bank handled everything. They had the most to lose if everything went south. Thanks for all this series.
Great primer on the buying/selling process. I will say one thing, it's a MUCH less complicated process to purchase with cash, as opposed to a mortgage/loan.
Scott's comment " good real estate professionals when you can find them" is a very crucial statement. I have dealt with some that were terrible, showing me houses that were absolutely trash but attempted to pass them off as a good buy. Do your homework when choosing someone to work for you - remember you are their boss during the process !
As I was selling my first home as a FSBO (and boy, did I have to deal with people who tried to rip me off, or thought I was an idiot), I was using a real estate agent for buying another property. I easily proved I was MUCH more knowledgeable than she was, and I ended up doing my own inspections, because she was not doing a very good job. I had a hostile seller who was going through a bankruptcy, did not disclose a number of legal aspects (that I was later on the hook for in resolving), had forged his wife's signature, and I was left out front without a key to gain entry for several hours in the heat, and the electricity had been shut off hours before without our knowledge. While there is a level of knowledge that is needed to get a real estate license, it's certainly possible for a well informed individual to do a search/purchase on your own. Most people won't do that. It can be expensive handholding that you're paying for, and it can also be a mediator that you're paying for that can take the emotions out from perhaps a seller who isn't really wanting to leave a home. There are court traps in some situations where someone can waltz into court, hand over a check and rip it right out from under you. (Not sure why I keep finding those tough cases where an estate or probate or foreclosure is in the picture. You learn a bit about human traits, and how nasty things can get. I can say that I've been blessed to stumble into them, in order to get a home that we wouldn't otherwise get. But my experience with realtors has been a minefield. This last one I used was awesome! And I think he even put some of his commission in the pot to help me get it, as I had a VA loan in a sellers market (sellers don't like VA buyers because the house has to be in great shape and you can't pass on repairs in a sellers market, so they're often written off when compared to cash or FHA loans).
I've only ever bought one property but thought I knew the process in the UK so I was surprised when my Solicitor told me about two other checks I'd not heard of: a Mines and Brine Survey and a Chancel Check. In this part of the country (UK West Midlands) there has, in the past, been extensive, small scale coal extraction and also Salt extraction hence the Mines and Brine Survey. The Chancel Check basically checks to see if the property is in 'Tithe' to the local church. If it is then you, as the property owner, are liable to pay for a proportion of any repairs to the Chancel of the Church would they be required. My property is liable but a payment of £50 got me an indefinite policy for all the time I own the property. If I sell it then the new owner has to buy a new policy.
I am a Realtor in Toronto, Canada and have heard thousands of explanations of the Real Estate buying and selling process and I think Scott has made it the most understandable. The only difference is, we don't use Escrow companies here, we use lawyers who will sell you a Title Insurance policy. And the listing Brokerage holds the money from the deposit in a trust account until everything clears and then they forward the money. The one step I see where people go wrong so often in the process, is as a buyer they approach the listing agent to transact the deal. Which is allowed in our jurisdiction, and banned in others. This is like going to court and approaching the prosecutor and seeing if they will represent you. You need your own representative to look after your interests. The listing agent is looking after the sellers interests. And if you think you are going to save money doing this.....you are not. The listing agent will just pocket both sides of the commission. They already have this in writing before you came knocking...or calling. Once again Scott clearly explains something that allows most people to have a clear understanding of a sometimes complicated subject. . He would have made a great educator, but I suppose he has become one!
Also check, UK Only, easements and covenants, within those we had chancel fees as the land was owned by the local church. The estate agent told us too, to keep some money to one side, just in case they come asking for church repairs, a friendly bit of advice. We had an easement for access for our neighbours and took out insurance if ever anyone was injured on it, something like £50 for 10 years and transferable to the new owners too, we are nice.
One thing to remember as a buyer is that typically both the listing agent and "your" agent are typically motivated by a higher sale price. The only people on your team are the inspector and your lawyer.
To a point. An extra $10,000 is generally an extra $150 to the agents (6% divided 4 ways)... Recent studies show that they are more motivated by increased selling volume than holding out for higher prices. Realtor owned homes take longer to sell, because they hold out for higher selling prices because that's where the money is for them.
I’m sorry you’ve felt burned in the past by an agent you didn’t feel was working for you. You clearly didn’t have a good experience and that stinks. The extra $92 an agent might earn on an extra 5K in sales price isn’t worth a past client feeling the way you do. Sorry for that. There’s better people in the industry and as Scott said, good agents are tough to find. Best of luck in the future internet stranger. I hope you have a good day.
@@denniscouturier378 I have been burned all three of the four times I’ve bought and sold. Realtors are like insurance, almost a necessary parasite. Horrible experiences.
It would be nice if there were financial incentives for the buyer's agent to get you a lower price. As it is, they are paid by the seller, and get more for a higher sales price. As some have pointed out, it doesn't turn out to be that much money for, say, a 5k swing in home price; still, it would be nice if the agent's incentives were clearly aligned with your own. Caveat emptor.
Can you think of how to align the buyer's agent's incentives with the buyer? One idea is a flat fee, regardless of the sale price. But both the buyer and the agent might feel that is risky. I can't think of a way to do it.
In Australia we have the 'settlement' date which is almost always 3 months. In the case of a party wanting an earlier settlement, then there is an agreement between the seller and the buyer. To buy a property a person goes to the bank to apply for a mortgage (which is the loan money) then holds the deed during the repayment period and the seller and buyer generally users an Estate agent to list or buy.
Scott/Nat, I enjoy watching your channel. I recently sold a house in Australia after doing construction under an "owner builder" permit (rather than using a general contractor or licensed builder). After 2 years of hard work, the house was to a high quality and standard. During the sale process I noted that listing the owner builder permit number on the sales contract is a legal requirement. It is listed as a liability and is applicable for 7years from the start of construction in Australia. Perhaps similar requirements exist in your region that are worth pointing out to owner builders out there .... Some buys seem to be turned away from owner builder works, while others will recognize good quality regardless of what is listed as a liability on the contract.
If the house sells for 550ish. The Realtors will take 27,500. Besides permits, they are the single biggest expense in building a house. More than framers. More than any trade. More than the dig out. More than the foundation. In reality, their services are worth roughly 3 thousand dollars each, for a total of 6k. They find and pay for a photographer. They find a home inspector for the buyer, which the buyer pays for. They put up a listing for the seller. The listing will be late. It will have mistakes. And the pictures will be in an order that doesn't make sense. After that, they will go on vacation to Palm Springs. Then they will tell you open houses don't work. Two weeks after that, they will be running short on money for their cocaine/Mercedes habit, and they'll tell you that the price is to high. You see, you lose 50k if you drop the price to 500k, but the realtors will only lose 1000 each. Total rip off. A photographer might cost 500 to 800. A home inspector might cost 500 to 800. And my Lord, anyone with a high school education could post an ad on Redfin. A lawyer might cost a few thousand, tops, to draw up a contract. The only thing some realtors, some, are good for is sniffing out good deals. There are some realtors that understand their job is to make the deal come together through any means necessary. Real sharks. Other than that, Realtors are a parasite on the middle class. As a profession, realtors operate like a cartel. You hire someone to help you buy a house because you don't know anything about houses. Well, guess what, they don't know anything either. It's the blind leading the blind. To facilitate a transaction, the realtors charge the equivalent of a brand new Toyota Camry. At 50 bucks an hour, figuring a 25% bite from taxes, it would take you around 666 hours to earn that Camry. Do you think the realtors are going to put in 666 hours? So how much is their time worth? $100? $200? $500? Even at $500 an hour. It would mean they put in 33 hours each, 66 hours together. Which sounds about right. Do you think your realtor was worth $500 an hour? People will say, but realtors starve. They have to make deals or they go broke. BS. If we, the voters, made their cartel illegal, and purchased the services necessary to buy and sell homes à la carte, homes would still change hands at the same rate they do now. Probably faster, since the middle class would be richer. The internet has made realtors an unnecessary profession, a parasitic profession, preying on people's dreams of owning a home.
My favorite is the ""mandatory local attorney title review"" . I've bought 11 houses and twice the local attorney missed an existing lien mistake. Both times the title company had to fix the clown's mistake and no the attorney who failed to do his job did not refund the money or make the payments to the title company.
Closing my third house this year and many listings on the way. Always use a professional you can trust. Ask people you know to help you and don't think you have to stay with one... Unless you sign an exclusive agreement. My wife and I have never made a client sign an exclusive agreement because are confident our skills and personal touch will keep our clients happy and refer us to people they know. If someone did want to go a different direction then so be it. It's not worth the time or money to force someone to work with you. This is Jon Reese with Signature Real Estate Group signing off.
No one likes to pay real estate commissions, but, in my humble opinion, it's well worth it. It the legal environment we live in today, there's no way I would buy RE without one.
I just bought my first house, read all the documents, talked to everyone involved, and I still don't understand what happened. All I know is I have a house and I pay the bills every month. It only gets more complicated every day. It's probably on purpose to make sure we're a nation of renters in the future. Very frustrating.
@@michaeldalton8374 it's a shame you don't appreciate what you get for your taxes. Bitching just keeps you unsettled about the inevitable. Stay informed & involved to keep them accountable & honest.
I think in order to understand how the business work, everybody has to become a real estate egent. There are many things that they don't tell us and many people who are real estate egents own at list three to four houses. The banks wants everybody to get a conventional loan to buy a house, and they says that that's the only way to buy a house when there is people making videos on youtube saying that you can get a line of credit an buy a house, deposit your checks in the line of cridet and you will pay your house in five to seven year. I asked my bank about that, and they said that only investor can do that! So buying a house is not investing? Obviously they don't want us to pay the house in less than ten years. At lest 20 to 30 years and then, your'er still not the owner because it's not enough with the taxes you pay for your work. Communism is covered in many layers in this country.
Out here in the east transactions are handled by lawyers...my wife is a paralegal who primarily does real estate work, including preparing all of the documentation needed for closings. It's kind of like herding cats for her...getting all of the various entities to provide all of the various paperwork in a timely fashion so the closing can take place can be a real chore...
Title insurance is important. A friend of a friend bought an empty lot in Delaware with the intention of building a house upon it. No title insurance was purchased. After the sale, they discover a large storm water sewer line running down the middle of the lot, and are unable to build anything. No title insurance, no recourse...
Ouch that hits deep. Not sure if there is anything like title insurance even available here in Germany, but with building permits usually being tied to strict development plans including plans on utilities etc, you almost never hear of such things here as well. I only remember a few years ago when one of the main streets leading into downtown had to be redone, including the old and leaky sewer system, they got a surprise and ran in either water or gas lines. I think those might have predated war. I never heard of anything like that with residential building, which doesn´t mean it might not happen. I wonder how that would be resolved here. I bet the one who wanted to build would be caught in a decade long bureaucratic process... But then, except for some of the really large main sewage lines, usually all utilities, sewage, water, gas, electricity, phone/internet run in certain corridors underneath the street. So hitting any utilities off the street should not really be possible. Well should, I guess nothing is impossible really.
Looking for a home was very stressful. Turns out being in escrow is also stressful, just a different flavor. I'm sure once I'll close then I'll have the remodeling flavor of stress. Does the stress ever end?
Excellent description… The only difference in real estate here in Delaware is that your agent is not a “fiduciary“…. That used to be the case a few years ago until they change the law, the agent must “act in the best interest of all parties involved“….. so technically they are no longer a “fiduciary“…. I think they changed the law to protect people who did not do their own due diligence…
Real estate commissions based on a % of the home sale is the biggest scam running, ppl blindly accept it since its been done for decades, there should be a FLAT fee period for selling a home, they barely do anything in this market and get a heathly slice of your equity when selling, its utterly ridiculous
Dreamt of bumping into Scott in a crowded lobby of some sort overnight. Courteous, as always, he gladly paused for a quick conversation and picture with me. Sadly, it was just a dream. Hope all is well with you all.
I think it’s overly complicated because of the amount of money changing hands. The bigger the pie, the more people want a piece. Buyers, sellers, real estate agents, bankers, inspectors, insurance agents, HOA, municipalities, IRS and contractors to name a few. But…it’s all worth it 👍
Looking at this and comparing it to when we bought our house here in Germany with all the parties involved at the first glance it looks way more complicated. But add our amount of bureaucracy and I guess practically it is at the same level. There are no HOAs in the same way there are in the US, at least not on the same level including whole streets etc. There is something similar though usually in multi party buildings (apartements, flats, condos, whatever you call them) but their influence is restricted in comparison. Other than that, of course you have seller and buyer, of course you usually have a bank involved. There may be a real estate agent/broker involved, quite often those are be the same here, and they are paid by a prescribed maximum percentage of the selling price as well, by, depending who requested their service. Sometimes it is shared. For such legal actions a notary needs to be involved, also paid by a prescribed percentage. And then of course there is the municipality. When it comes to permits and inspections it seems to be quite similar, but afterwards usually only the municipality is involved with few and rather reasonable fees, most of that may also be done by the notary already, allthough you get to pay the fees (I think that would be like the ownership title and any title a bank giving a loan might have) and the happy tax paying starts (part per square meter, part per meter of street front which goes into street/road maintenance, winter services on the public road etc. You never stop paying, even if the actual buying process is paid and done. But if you bought your house years ago before real estate prices started to skyrocket, it is less per month than renting. at least compared to a newer lease. With the market that screwed up my house today being 12 years old would sell for almost 150k € more than when we bought new.
As long as the "buyers agent" is paid a fee based upon the selling price, and is paid by the seller, the Buyer never truly has unbiased representation unless they have their own independent attorney representing them. Yes there are "oaths" and the fiduciary responsibility and ethics that the Buyer's agent is supposed to have but the bottom line is you "work" for who pays you, and the seller is the person who pays the buyer's agent. This needs to change. The buyer's agent needs to be paid by the buyer but the realtor associations fight this tooth and nail. The buyer's agent fee can be rolled into the loan as it is now.
Very different in Quebec. The government maintains a real property registry and notaries (sometimes lawyers) do all the paperwork. He pays the seller, he pays off the remaining mortgage (if there is one) of the seller, he pays the real-estate agent(s), computes all balances (property and school taxes, other contracts, etc.), and controls all the money and collects his fee from the buyer. The banks rely on him to do things perfectly and he has a duty to keep the provincial registry up to date and accurate. Because everything flows through the real property registry, any liens against the property are easily identifiable. Thus: No escrow. No title insurance. Notary costs are a fraction of the legal fees one sees in the US. A much saner system than in the US and much of Canada. (OTOH, in Quebec there is no such thing as walking away and dropping your keys at the lender - you are on the hook for the mortgage, period, so could end up bankrupt if it comes to that. So in the mortgage you actually sign onto a 2nd mortgage that kicks in to pay legal fees for everyone (except yourself, of course)). And thus since: 1830. (I believe it flows from the Code Napoleon, the French Civil Code that predates our modernized Civil Code from the 1990's).
@@asdqwe4468 Not that notary fees are so high, but that lawyer's fees in the US on a home transaction are very high. I paid about CAD$800 (a friendly price from the brother in law of a friend, but it would not have been much more) in 1994. Today? Not sure - perhaps 50% more?
Unfortunately, both seller's and buyer's agents have it in their best interest for the highest sales price -- great for seller but not so much for buyer.
@@MrTooTechnical You didn't try very hard. Copy these four words: essential craftsman spec house Then paste them into the google and you will see four websites pop up. It ain't that tough and you'll learn more than just the price because there are comments, house plans, photos, the bid process and all that stuff.
I dont if you had a real estate agent or not but with over 100 RUclipss for potential buyers to watch you sure as not didn't need one. The person who buys this house has a beautifully made house. In any event one thing that any buyer and seller has to understand is the real estate agents are not agents of anyone except themselves. "Representing" is not a legal term.
I’ve watched since the beginning. It is truly a beautiful house and you did some amazing work. But if u had the chance to do it all over again what would be something you would do different or change ?
hello I AM BOBBY AND I am buying a house right now..is there a way to get a blue print of the house i am buying. seller ,lawyer real estate agent owner city builder or what ? give me a answer. thank
What is the most baffling aspect of real estate sales for me is that we have pretty strong "lemon laws" in many places to protect buyers of $20000 vehicles but nothing equivalent for buyers of homes costing $100,000 and more.
That’s why we do inspections throughout the building process. Still plenty of warranty options for mechanical things in the house like HVAC and appliances
Real estate prices are crazy stupid in this old farts mind. I paid 26k for my house in 1980. I don’t know what it’s worth now, but I’m never selling. House next door sold for $110k in 2012 and just sold for $450k. I wish I understood economics, but it just makes my head spin.
It is quite simple really. You try and practice capitalism and the government and all its donor cronies take bites out of your profit all along the transaction. Sort of like line fishing for tuna in waters infested with sharks.
I guess the Native Americans didn't have all such things. There is no permanent title to the land other than what I can keep and hold with mty rifle. (See Palestine/Israel, see New World /Europeans, see Ukraine/ Russia.)
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
We are getting close to the end of what I think is the most detailed and complex history of building a house! Not only the planning and survey but every aspect of building the house and installing all the amenities to make the house a home. And now at the end all aspects to selling the whole lot to buyer who will have the most complete documentation of what he or she is dishing out the money for. This documentation is truly unique! Thank you for the good work!
And just like that, it's all over!
Thank you, EC, for this series. It's been a tremendous help to myself and many other people.
Every, and I mean EVERY, first-time home buyer should watch this. Best I've ever heard explaining the process.
The one best series of the whole of RUclips. Watched and appreciated every chapter of the story.
God bless you, Scott. You have simultaneously taught (not just technical things, but life lessons) and entertained while taking on an enormous endeavor. This has been a blessing to many.
Thank you Scott. I don't have anything else to say, nor how to express my sincere gratitude for the series.
That's one of the clearest and simplest explanation of that process I've ever heard. Thanks.
Thanks for letting us watch!
finally, a topic I'm an expert in not having a screwed up explanation given!
also, important to note that the title policy is not a policy that has recurring premiums, nor does it protect against "future" matters or events, nor does it cover matters undertaken by the insured. It's a policy, or contract, of indemnity for which the premium is paid up front and covers the matters described in the policy only. there are three sections: covered risks, exclusions, and exceptions. all are very helpful...and all can be negotiated through what are called "endorsements" and those may carry their own premiums and should be done before the policy is ever paid for.
From Building essentials to sales..It's been quite a learning journey..The more episodes you produce, the more I feel like you don't want to let go of this house..Such a dear Spec House .
Agreed. It's hard to explain, but this video has a certain "unexciting" feeling. Almost on a low.
@@EM-fi2qg Finances are rarely rarely exciting, if ever. Important, but so boring.
Scott, thank you for posting this video. I wish my wife and I had something like this when we bought our first house. Luckily, we did have a great agent that walked us through everything. Money well spent. Now, 3 homes (in two cities), a remodel, and 3 refinances later, we have it down to a system. I actually dislike buying cars more than a home now. We were also lucky that when we approached an agent about “updating” our first house before we sold it, she had been an interior designer as well as an experienced agent, so was able to guide us where to spend our remodel budget that would get the best return. We made all of the remodel $ back in the sale and still had enough to allow us to buy a bigger house (for our bigger family). Thank you for being a teacher. I am a willing and eager student.
Well said.
Great videos, I’m a realtor in Los Cabos and I’ve seen all the videos on the spec house, you should be proud. This video is the first comment for you, and really you explained the proses really well. Congratulations
After years of processing mortgage loans all over the country at different lenders, I can confirm all of this is accurate and extremely well articulated.
My God, you explain things so clearly. Thank you.
Absolutely love the entire content of this series. I follow very few channels on RUclips, but all of them are of fine craftsmanship. Knife makers, boat builders, musicologists etc. As for home builders this is my first weekly watch. Thanks and keep up the fantastic work!
What a great channel! Thank you for sharing and please continue!
Thanks Scott
You and Nate have done a masterful
Job on your utube channel
Thanks Scott a lot of good tips🤗😎🤗😎
Great summary, title research is part of the buyer's Due Diligences before finalizing the acquisition I believe, together with some zoning, utilities and land surveying preliminary studies.
Wow!
I've been watching since the very 1st episode, and this is awesome!
Very clear and straight forward like all of your videos on the Spec house have been.
I like all your content I try to watch as much of it as I can help a guy out some times thank you for your hard work
Good morning Scott and the EC family, I've fallowed the entire build and now to the final closing of what I would say was an awesome journey. Well done. Greetings from Jamaica 🇯🇲. Will continue to look out for future volg 🙏👍👍
Thanks Scotty. Good stuff.
Enjoy Elohim #
Did a FSBO (For Sale By Owner) a few years back and it worked out great and that was in a buyers market! In a sellers market, the "FizzBO" is the only way to go.
There's brokerages out my way that do a hybrid. You self list it, do the tours and everything and they just get .5% for MLS acfess, negotiations and pictures taken of the house for the listing. Very worth it
Thanks for including the sale wrangling. I'm looking forward to seeing how it goes!
Thank you, Scott very clear and spot on.
You're right in that it's different in parts of the country. Many years ago, I handled my own closing instead of hiring an attorney. When we bought in Nebraska, the bank handled everything. They had the most to lose if everything went south. Thanks for all this series.
Great primer on the buying/selling process. I will say one thing, it's a MUCH less complicated process to purchase with cash, as opposed to a mortgage/loan.
Congrats with wrapping up the project guys, well done! Looking forward to building a spec house season two! ;)
Thank you for doing this series.
Scott's comment " good real estate professionals when you can find them" is a very crucial statement. I have dealt with some that were terrible, showing me houses that were absolutely trash but attempted to pass them off as a good buy. Do your homework when choosing someone to work for you - remember you are their boss during the process !
As I was selling my first home as a FSBO (and boy, did I have to deal with people who tried to rip me off, or thought I was an idiot), I was using a real estate agent for buying another property. I easily proved I was MUCH more knowledgeable than she was, and I ended up doing my own inspections, because she was not doing a very good job. I had a hostile seller who was going through a bankruptcy, did not disclose a number of legal aspects (that I was later on the hook for in resolving), had forged his wife's signature, and I was left out front without a key to gain entry for several hours in the heat, and the electricity had been shut off hours before without our knowledge.
While there is a level of knowledge that is needed to get a real estate license, it's certainly possible for a well informed individual to do a search/purchase on your own. Most people won't do that. It can be expensive handholding that you're paying for, and it can also be a mediator that you're paying for that can take the emotions out from perhaps a seller who isn't really wanting to leave a home. There are court traps in some situations where someone can waltz into court, hand over a check and rip it right out from under you. (Not sure why I keep finding those tough cases where an estate or probate or foreclosure is in the picture. You learn a bit about human traits, and how nasty things can get. I can say that I've been blessed to stumble into them, in order to get a home that we wouldn't otherwise get. But my experience with realtors has been a minefield. This last one I used was awesome! And I think he even put some of his commission in the pot to help me get it, as I had a VA loan in a sellers market (sellers don't like VA buyers because the house has to be in great shape and you can't pass on repairs in a sellers market, so they're often written off when compared to cash or FHA loans).
Thank you for great video !
I've only ever bought one property but thought I knew the process in the UK so I was surprised when my Solicitor told me about two other checks I'd not heard of: a Mines and Brine Survey and a Chancel Check. In this part of the country (UK West Midlands) there has, in the past, been extensive, small scale coal extraction and also Salt extraction hence the Mines and Brine Survey. The Chancel Check basically checks to see if the property is in 'Tithe' to the local church. If it is then you, as the property owner, are liable to pay for a proportion of any repairs to the Chancel of the Church would they be required. My property is liable but a payment of £50 got me an indefinite policy for all the time I own the property. If I sell it then the new owner has to buy a new policy.
I am a Realtor in Toronto, Canada and have heard thousands of explanations of the Real Estate buying and selling process and I think Scott has made it the most understandable. The only difference is, we don't use Escrow companies here, we use lawyers who will sell you a Title Insurance policy. And the listing Brokerage holds the money from the deposit in a trust account until everything clears and then they forward the money.
The one step I see where people go wrong so often in the process, is as a buyer they approach the listing agent to transact the deal. Which is allowed in our jurisdiction, and banned in others. This is like going to court and approaching the prosecutor and seeing if they will represent you.
You need your own representative to look after your interests. The listing agent is looking after the sellers interests. And if you think you are going to save money doing this.....you are not. The listing agent will just pocket both sides of the commission. They already have this in writing before you came knocking...or calling.
Once again Scott clearly explains something that allows most people to have a clear understanding of a sometimes complicated subject. . He would have made a great educator, but I suppose he has become one!
Thank you sir
Well said sir!
Also check, UK Only, easements and covenants, within those we had chancel fees as the land was owned by the local church. The estate agent told us too, to keep some money to one side, just in case they come asking for church repairs, a friendly bit of advice. We had an easement for access for our neighbours and took out insurance if ever anyone was injured on it, something like £50 for 10 years and transferable to the new owners too, we are nice.
One thing to remember as a buyer is that typically both the listing agent and "your" agent are typically motivated by a higher sale price. The only people on your team are the inspector and your lawyer.
To a point. An extra $10,000 is generally an extra $150 to the agents (6% divided 4 ways)... Recent studies show that they are more motivated by increased selling volume than holding out for higher prices. Realtor owned homes take longer to sell, because they hold out for higher selling prices because that's where the money is for them.
I’m sorry you’ve felt burned in the past by an agent you didn’t feel was working for you. You clearly didn’t have a good experience and that stinks. The extra $92 an agent might earn on an extra 5K in sales price isn’t worth a past client feeling the way you do. Sorry for that. There’s better people in the industry and as Scott said, good agents are tough to find. Best of luck in the future internet stranger. I hope you have a good day.
@@denniscouturier378 I have been burned all three of the four times I’ve bought and sold. Realtors are like insurance, almost a necessary parasite. Horrible experiences.
It would be nice if there were financial incentives for the buyer's agent to get you a lower price. As it is, they are paid by the seller, and get more for a higher sales price. As some have pointed out, it doesn't turn out to be that much money for, say, a 5k swing in home price; still, it would be nice if the agent's incentives were clearly aligned with your own. Caveat emptor.
Can you think of how to align the buyer's agent's incentives with the buyer? One idea is a flat fee, regardless of the sale price. But both the buyer and the agent might feel that is risky. I can't think of a way to do it.
In Australia we have the 'settlement' date which is almost always 3 months. In the case of a party wanting an earlier settlement, then there is an agreement between the seller and the buyer. To buy a property a person goes to the bank to apply for a mortgage (which is the loan money) then holds the deed during the repayment period and the seller and buyer generally users an Estate agent to list or buy.
Scott/Nat, I enjoy watching your channel. I recently sold a house in Australia after doing construction under an "owner builder" permit (rather than using a general contractor or licensed builder). After 2 years of hard work, the house was to a high quality and standard. During the sale process I noted that listing the owner builder permit number on the sales contract is a legal requirement. It is listed as a liability and is applicable for 7years from the start of construction in Australia. Perhaps similar requirements exist in your region that are worth pointing out to owner builders out there .... Some buys seem to be turned away from owner builder works, while others will recognize good quality regardless of what is listed as a liability on the contract.
Pry will fall down
If the house sells for 550ish. The Realtors will take 27,500. Besides permits, they are the single biggest expense in building a house. More than framers. More than any trade. More than the dig out. More than the foundation.
In reality, their services are worth roughly 3 thousand dollars each, for a total of 6k. They find and pay for a photographer. They find a home inspector for the buyer, which the buyer pays for. They put up a listing for the seller. The listing will be late. It will have mistakes. And the pictures will be in an order that doesn't make sense. After that, they will go on vacation to Palm Springs. Then they will tell you open houses don't work. Two weeks after that, they will be running short on money for their cocaine/Mercedes habit, and they'll tell you that the price is to high.
You see, you lose 50k if you drop the price to 500k, but the realtors will only lose 1000 each. Total rip off. A photographer might cost 500 to 800. A home inspector might cost 500 to 800. And my Lord, anyone with a high school education could post an ad on Redfin. A lawyer might cost a few thousand, tops, to draw up a contract.
The only thing some realtors, some, are good for is sniffing out good deals. There are some realtors that understand their job is to make the deal come together through any means necessary. Real sharks. Other than that, Realtors are a parasite on the middle class. As a profession, realtors operate like a cartel.
You hire someone to help you buy a house because you don't know anything about houses. Well, guess what, they don't know anything either. It's the blind leading the blind.
To facilitate a transaction, the realtors charge the equivalent of a brand new Toyota Camry. At 50 bucks an hour, figuring a 25% bite from taxes, it would take you around 666 hours to earn that Camry. Do you think the realtors are going to put in 666 hours? So how much is their time worth? $100? $200? $500? Even at $500 an hour. It would mean they put in 33 hours each, 66 hours together. Which sounds about right. Do you think your realtor was worth $500 an hour?
People will say, but realtors starve. They have to make deals or they go broke. BS. If we, the voters, made their cartel illegal, and purchased the services necessary to buy and sell homes à la carte, homes would still change hands at the same rate they do now. Probably faster, since the middle class would be richer. The internet has made realtors an unnecessary profession, a parasitic profession, preying on people's dreams of owning a home.
My favorite is the ""mandatory local attorney title review"" . I've bought 11 houses and twice the local attorney missed an existing lien mistake. Both times the title company had to fix the clown's mistake and no the attorney who failed to do his job did not refund the money or make the payments to the title company.
Our skill master💯🇺🇲
This channel is way better than any conventional University.
Closing my third house this year and many listings on the way. Always use a professional you can trust. Ask people you know to help you and don't think you have to stay with one... Unless you sign an exclusive agreement. My wife and I have never made a client sign an exclusive agreement because are confident our skills and personal touch will keep our clients happy and refer us to people they know. If someone did want to go a different direction then so be it. It's not worth the time or money to force someone to work with you. This is Jon Reese with Signature Real Estate Group signing off.
No one likes to pay real estate commissions, but, in my humble opinion, it's well worth it. It the legal environment we live in today, there's no way I would buy RE without one.
Sweet!
Keep up the good work!
I just bought my first house, read all the documents, talked to everyone involved, and I still don't understand what happened. All I know is I have a house and I pay the bills every month. It only gets more complicated every day. It's probably on purpose to make sure we're a nation of renters in the future. Very frustrating.
Yea exactly. But congratulations
@@michaeldalton8374 it's a shame you don't appreciate what you get for your taxes. Bitching just keeps you unsettled about the inevitable. Stay informed & involved to keep them accountable & honest.
@@AnthonyStabler and honestly having to pay taxes means you are making money.
I think in order to understand how the business work, everybody has to become a real estate egent. There are many things that they don't tell us and many people who are real estate egents own at list three to four houses. The banks wants everybody to get a conventional loan to buy a house, and they says that that's the only way to buy a house when there is people making videos on youtube saying that you can get a line of credit an buy a house, deposit your checks in the line of cridet and you will pay your house in five to seven year. I asked my bank about that, and they said that only investor can do that! So buying a house is not investing? Obviously they don't want us to pay the house in less than ten years. At lest 20 to 30 years and then, your'er still not the owner because it's not enough with the taxes you pay for your work. Communism is covered in many layers in this country.
Out here in the east transactions are handled by lawyers...my wife is a paralegal who primarily does real estate work, including preparing all of the documentation needed for closings. It's kind of like herding cats for her...getting all of the various entities to provide all of the various paperwork in a timely fashion so the closing can take place can be a real chore...
I have an inkling that there was a rant restrained in there somewhere? 😉
Where I live, the same seller agent is almost always the same one the buyer works with. There is almost never a "buyers agent".
Your good good man..
I sold by Owner on Zillow. Worked out great!
Title insurance is important. A friend of a friend bought an empty lot in Delaware with the intention of building a house upon it. No title insurance was purchased. After the sale, they discover a large storm water sewer line running down the middle of the lot, and are unable to build anything. No title insurance, no recourse...
Ouch that hits deep. Not sure if there is anything like title insurance even available here in Germany, but with building permits usually being tied to strict development plans including plans on utilities etc, you almost never hear of such things here as well. I only remember a few years ago when one of the main streets leading into downtown had to be redone, including the old and leaky sewer system, they got a surprise and ran in either water or gas lines. I think those might have predated war.
I never heard of anything like that with residential building, which doesn´t mean it might not happen. I wonder how that would be resolved here. I bet the one who wanted to build would be caught in a decade long bureaucratic process... But then, except for some of the really large main sewage lines, usually all utilities, sewage, water, gas, electricity, phone/internet run in certain corridors underneath the street. So hitting any utilities off the street should not really be possible. Well should, I guess nothing is impossible really.
Looking for a home was very stressful. Turns out being in escrow is also stressful, just a different flavor. I'm sure once I'll close then I'll have the remodeling flavor of stress. Does the stress ever end?
Excellent description… The only difference in real estate here in Delaware is that your agent is not a “fiduciary“…. That used to be the case a few years ago until they change the law, the agent must “act in the best interest of all parties involved“….. so technically they are no longer a “fiduciary“…. I think they changed the law to protect people who did not do their own due diligence…
Real estate commissions based on a % of the home sale is the biggest scam running, ppl blindly accept it since its been done for decades, there should be a FLAT fee period for selling a home, they barely do anything in this market and get a heathly slice of your equity when selling, its utterly ridiculous
Dreamt of bumping into Scott in a crowded lobby of some sort overnight. Courteous, as always, he gladly paused for a quick conversation and picture with me. Sadly, it was just a dream.
Hope all is well with you all.
Haaa Haa!!!! Glad to hear he was courteous... but he always is... K
in Texas the fastest you can close is 15 days, and that is rare to happen
Coffee is for closer's only.
How long from start to finish did this series take?
Although many Title companies provide escrow services. Escrow and Title companies provide different services and certainly are not "synonymous ".
Does anyone know what the final sale price was?
where is the date on the video?
I think it’s overly complicated because of the amount of money changing hands. The bigger the pie, the more people want a piece.
Buyers, sellers, real estate agents, bankers, inspectors, insurance agents, HOA, municipalities, IRS and contractors to name a few. But…it’s all worth it 👍
Looking at this and comparing it to when we bought our house here in Germany with all the parties involved at the first glance it looks way more complicated. But add our amount of bureaucracy and I guess practically it is at the same level. There are no HOAs in the same way there are in the US, at least not on the same level including whole streets etc. There is something similar though usually in multi party buildings (apartements, flats, condos, whatever you call them) but their influence is restricted in comparison.
Other than that, of course you have seller and buyer, of course you usually have a bank involved. There may be a real estate agent/broker involved, quite often those are be the same here, and they are paid by a prescribed maximum percentage of the selling price as well, by, depending who requested their service. Sometimes it is shared.
For such legal actions a notary needs to be involved, also paid by a prescribed percentage. And then of course there is the municipality. When it comes to permits and inspections it seems to be quite similar, but afterwards usually only the municipality is involved with few and rather reasonable fees, most of that may also be done by the notary already, allthough you get to pay the fees (I think that would be like the ownership title and any title a bank giving a loan might have) and the happy tax paying starts (part per square meter, part per meter of street front which goes into street/road maintenance, winter services on the public road etc. You never stop paying, even if the actual buying process is paid and done. But if you bought your house years ago before real estate prices started to skyrocket, it is less per month than renting. at least compared to a newer lease. With the market that screwed up my house today being 12 years old would sell for almost 150k € more than when we bought new.
As long as the "buyers agent" is paid a fee based upon the selling price, and is paid by the seller, the Buyer never truly has unbiased representation unless they have their own independent attorney representing them.
Yes there are "oaths" and the fiduciary responsibility and ethics that the Buyer's agent is supposed to have but the bottom line is you "work" for who pays you, and the seller is the person who pays the buyer's agent. This needs to change. The buyer's agent needs to be paid by the buyer but the realtor associations fight this tooth and nail. The buyer's agent fee can be rolled into the loan as it is now.
Very different in Quebec. The government maintains a real property registry and notaries (sometimes lawyers) do all the paperwork. He pays the seller, he pays off the remaining mortgage (if there is one) of the seller, he pays the real-estate agent(s), computes all balances (property and school taxes, other contracts, etc.), and controls all the money and collects his fee from the buyer. The banks rely on him to do things perfectly and he has a duty to keep the provincial registry up to date and accurate.
Because everything flows through the real property registry, any liens against the property are easily identifiable.
Thus: No escrow. No title insurance. Notary costs are a fraction of the legal fees one sees in the US.
A much saner system than in the US and much of Canada.
(OTOH, in Quebec there is no such thing as walking away and dropping your keys at the lender - you are on the hook for the mortgage, period, so could end up bankrupt if it comes to that. So in the mortgage you actually sign onto a 2nd mortgage that kicks in to pay legal fees for everyone (except yourself, of course)).
And thus since: 1830. (I believe it flows from the Code Napoleon, the French Civil Code that predates our modernized Civil Code from the 1990's).
Sounds very similar to how it's done in Germany. And I thought our notary fees are high.
@@asdqwe4468
Not that notary fees are so high, but that lawyer's fees in the US on a home transaction are very high. I paid about CAD$800 (a friendly price from the brother in law of a friend, but it would not have been much more) in 1994. Today? Not sure - perhaps 50% more?
cool
Just move in , you know you want to
This process sounds like a nightmare
what an ideal market for your now complete property to emerge into for sale! i dont see any problems which could prevent you making your money back =]
Unfortunately, both seller's and buyer's agents have it in their best interest for the highest sales price -- great for seller but not so much for buyer.
Buyer beware.. just another area that EC is well versed. How about a video of you playing your guitar?
Sounds massively overcomplicated and bureaucratic compared to Australia.
avg 90 days in NY State! So annoying. wait, wait, wait....
Wow. How much. $$$
Look on the essential craftsman spec house website. It's all there
What website??
@@MrTooTechnical Use the Google - it will point you to about four sites -->> essential craftsman spec house
So no one knows the price. Oh well. I tried.
@@MrTooTechnical You didn't try very hard. Copy these four words: essential craftsman spec house
Then paste them into the google and you will see four websites pop up.
It ain't that tough and you'll learn more than just the price because there are comments, house plans, photos, the bid process and all that stuff.
I dont if you had a real estate agent or not but with over 100 RUclipss for potential buyers to watch you sure as not didn't need one. The person who buys this house has a beautifully made house.
In any event one thing that any buyer and seller has to understand is the real estate agents are not agents of anyone except themselves. "Representing" is not a legal term.
Shame real estate agents are even necessary. Feel like the majority of what they do could be automated through a website...
I’ve watched since the beginning. It is truly a beautiful house and you did some amazing work. But if u had the chance to do it all over again what would be something you would do different or change ?
hello I AM BOBBY AND I am buying a house right now..is there a way to get a blue print of the house i am buying. seller ,lawyer real estate agent owner city builder or what ? give me a answer. thank
I would love to meet the buyers - a quick chat would make a great video
Escrow or S crow is the ancient egyptian god of waiting 30 days.
ruclips.net/video/OZmO_7JBeao/видео.html 👍
Buying/selling without a realtor in Canada is so much easier. Just need a good lawyer.
What is the most baffling aspect of real estate sales for me is that we have pretty strong "lemon laws" in many places to protect buyers of $20000 vehicles but nothing equivalent for buyers of homes costing $100,000 and more.
That’s why we do inspections throughout the building process. Still plenty of warranty options for mechanical things in the house like HVAC and appliances
So I pay for the title search... then I pay for the insurance if they mess up and miss something! Huummm. Don't we like the monopoly.
In Turkey, REMAX agent's are suckers.
Real estate prices are crazy stupid in this old farts mind. I paid 26k for my house in 1980. I don’t know what it’s worth now, but I’m never selling. House next door sold for $110k in 2012 and just sold for $450k. I wish I understood economics, but it just makes my head spin.
It is quite simple really. You try and practice capitalism and the government and all its donor cronies take bites out of your profit all along the transaction. Sort of like line fishing for tuna in waters infested with sharks.
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He doesn't seem his usual self in this vid. Hope everything is okay
Get some sleep, dude.
This presentation contains inaccuracies.
Elaborate. I'd like to hear your take.
🇧🇷🇧🇷🇧🇷 ótimo canal, por favor coloca legenda em português. Obrigado
learn english is not that hard :D
@🤨, learn some manners and how to be respectful, it's not that hard😏
I guess the Native Americans didn't have all such things. There is no permanent title to the land other than what I can keep and hold with mty rifle. (See Palestine/Israel, see New World /Europeans, see Ukraine/ Russia.)