Jay Hurst

I am not sure what web site, or tweet started this rumor, but it is NOT true that going directly to a Listing agent saves you any money. What is does create is a situation where the Seller's agent is writing your offer. You have no professional to represent your interests.

In the Commonwealth of Va, a Seller signs a Listing Agreement to sell their home with a Listing Agent. At this time, and in writing, the compensation to both the Agents - Selling and Listing - is spelled out. That is before you ever come along as a Buyer. So, if a Buyer decides to go directly to
the Listing agent, that agent will simply keep BOTH sides of the compensation. The Buyer saves nothing.

With compensation out of the way, that would only leave the Buyer's negotiating position, and the knowledge to take the deal successfully through Closing. Most folks hate legal dealings, so why on Earth would you want to allow the Seller's representative to handle your side of a legal deal, and dictate terms to you?

Look for firms who have Buyer's agents. The best have an ABR certification. You will not
loose a dime, and will have a pro who can act in your best interest from the offer through the closing.

That said, if you are buying a home from a relative, or trading between friends, then you may only need a closing attorney. They are found at Title companies. Call them and tell them what you want to do. They will tell you if you need an agent.

JH - Sat Jun 20 2009, 07:01

Hello Atk,

This is more of an underwriting issue, and not really an FHA issue. It will vary from lender to lender. Most want everything done before you settle. It should not be a deal breaker with the right combination of lender, agents and closing attorney. You need to work on things like this right from the start, as with most FHA loans.

I have a question for Atk - There are some very good questions here from you, but most are centered on the last parts of a deal. i.e. closing, inspections, lender escrow requirements. Do you have an agent?

Jay - Wed Jun 3 2009, 11:18

We would start with the tax records for the legal subdivisions in that zip code. These are on file. It takes some effort to bracket in on the results, but if you have the time, you can do it. What you are looking for is the deed transfer prices. You need to throw out the refis if there are any. They will show up as very low amounts.
Good luck Bill. - Tue Jun 2 2009, 07:21

Email or not, contracts follow simple guidelines.
The moment you sent a counter-offer, the first offer was dead. You must sign all proper offers, so that needs to be done. If they accept it, then they also sign. Without that, there is no acceptance.
I have seen REO deals where the banks were overseas. These banks do all kinds of crazy things. Some rely on their state-side agents to push all the paperwork. We have had deals that waited until the closing to see the paperwork in final form. Nuts, but all works out in the end.

If you do not have a "kick-out clause" for time, then you have two options. One - wait until whenever you feel you can wait no longer. The other is to withdraw you offer in writing. In Virginia, all you need to do is take the first page of the contract, and write "withdrawn" on it, and send it the the sellers agent.

Having said all of this, I am speaking as a Virginia agent. Contracts are a meeting of the minds. If you do not want to wait, then withdraw and look some more.
Good luck! - Mon Jun 1 2009, 18:26

My long term experience is that most will lose the fight, so do not bother. It is up to a good agent to not
let you be overly hopeful that you can "steal" a distressed property. We run detailed CMAs before seeing homes that the buyer will try to use an FHA loan. Most banks shy away from the FHA/Foreclosure combination, since it can fall apart very quickly - as yours did.
In Virginia, the sales contract has very specific language telling you what the steps will be. You need to follow that first, then tell you agent to find homes that fit your FHA profile.
Hope this helps.
Jay - Fri May 8 2009, 06:43