Special offer

How to lose money when buying

By
Real Estate Agent with AllMountainRealty.com

A friend of mine from Florida called me and said , "Hey I have a friend who is buying in Georgia. " I said. " good send him to me and I will help him. " My friend called me back and said , " Oh, sorry he is working with another agent." "No problem" I said." thanks for thinking about me."

About a month later I was talking to the same friend and asked him about the guy who was buying. Oh, the story was he really had a tough time. "Was he a first time buyer?" I asked. "Yes" was the answer. "So he got the 8k" ? Yes he got that. "What did he buy?" " He bought a foreclosure out in the country." "Oh did he go USDA for his loan?" "No he didn't know about it he put money down and went FHA." Did he go to the class and get 14k in Georgia money to rehab the property or use the money as a down payment?" "What 14K?" "What was his agent doing for him during this time?" Nothing the agent worked for the seller," (Bank)

.

So this buyer lost 14k from the state and put 3.5 percent down which in this case made his mortgage payment 124 dollars a month MORE than the no money down option would have.  Did the selling agent do anything wrong. Absolutely not. Did the buyer make a mistake? Absolutely. If you are buying and not working with your own agent look at this story in this case , as I know the purchase price , not working with an agent cost this buyer 19000 !!!!

NUF SAID.

Posted by

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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog

On line at www.allmountainrealty.com Call at 706 579 1098

We sell Homes                                                    

 

Comments(7)

Vickie Slade
Colorado Landmark, Realtors - Boulder, CO
Service You Can Trust ~ Someone You Can Depend On

Charlie, what a sad story.  Too many first time buyers get taken advantage of in ways they never even imagined, just because they don't know and don't know the right questions to ask.  Another testiment to why they should work for a professional who can make sure their best interests are taken into consideration.

Apr 26, 2009 03:55 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Too bad..buyers need to realize that we bring value and that we really don't cost them anything. The amount of negotiation we can do vs the listing agent and the expertise we bring....on the biggest purchase of their lives. Sad

Apr 26, 2009 03:58 AM
Roy Kelley
Retired - Gaithersburg, MD

Happens all the time. Buyers pass up the opportunity for good advice. Some think they will save by working directly with the listing agent.

Apr 26, 2009 04:09 AM
Frank & Jodi Orlando
Frank & Jodi Orlando Get Us A Home Realty Atlanta Homes Sale - Cumming, GA

Charlie, Wow, talk about an expensive lesson! Many first time buyers are oblivious to the home buying process. They don't know that they don't know...

Apr 26, 2009 04:14 AM
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

ToulaRosebrock,com

Hi Charlie:

Not a cheap lesson!

Unfortunately, some buyers don't know any better...

Apr 26, 2009 05:28 AM
Donna J. Stephens
BHHS Ambassador Real Estate - Omaha, NE
CRS

Costly lesson. I wonder if the buyer ever had a clue?

Apr 26, 2009 08:35 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Gosh, this is a tragedy.

Apr 26, 2009 11:41 PM