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Anna, Home Buyer in Philadelphia County,...

I recently looked at a property listed on trulia, I met with the realtor representing the property. We had no representation. The realtor told us the

Asked by Anna, Philadelphia County, PA Sun Jan 24, 2010

owner was a property investor who was not negotiable about price, but slightly flexable about a few things. The stove and many other things were removed from the home. The house was on the market for 464 days. After veiwing the house, we wanted to revisit to bring in a realtor to represent us before we placed an offer. Then I happened to find the same property on Trulia listed as a foreclosure for 100.000 less. This happened with in two days. I called the realtor back and he first told me that trulia is not properly updated, then said the house was being sold by a bank and is "as is". This was after he told me that the stove would be put back in and talked more about the "owner". I love the house and want to buy it, how do I find out who has the deed (which bank?) and place an offer?

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Stephanie Somers’ answer
Anna,

You do not legally owe any Realtor anything unless you signed a contract agreeing to use a particular Realtor. Did you do that with anyone? If not then you have an opportunity to find someone to assist you through this.

1) As you know... Get a Realtor that represents you and only you, Not the seller whether they be a bank or a private owner. I am not against or for "dual agency" (when a Realtor represents both buyer and seller) but in this case you need to have a Realtor you can trust to get the info for you.

2) Trulia may be mistaken with their price. They are not perfect. The MLS listings are also not always accurate. But the bigger question here is: What is the Market Vale for a home in that condition? Whether the price went up or down, if the price the Realtor/Bank/Owner is asking is not over market value then base your offer price on that.

3) Bank owned properties are typically 99.999% of the time, "as-is". The bank will not add a stove or correct anything. So, your offer price and the sales price should reflect that in the price.

4) Buyer beware ! 464 days is an excessively long time for a home to be on the market for sale. No one else wanted the property for over a year. Was it: 1) overpriced. 2) impossible to show, 3) not property advertised, or 4) a problem property due to condition, location, tenants... ? Again, buyer beware and do your due diligence. Get inspections and have your Realtor guide you. Foreclosure or not. As a homeowner you'll want t know what you will be getting into.

Now, $100,000 s a big difference and I see why you want to play detective. But moral of the story here is, don't waste any more time, get a Realtor that you know and trust to cut through all of the BS so you can make an educated decision whether to make an offer or move on to another property !!

Sorry for my bluntness. I hope this serves ans some insight for you.
1 vote Thank Flag Link Mon Jan 25, 2010
You could hire a buyer agent to represent you on this purchase. ( assuming you didn' t already sign a buyer agency contract with another agent ?
Your buyer agent could pull the tax record which should list the lender involved in the short sale if applicable.
0 votes Thank Flag Link Sun Jan 31, 2010
That is one of the reasons "Buyer Representation" came about. The agent that has the listing cannont (rather should not) be providing you with information that is different than what the listing states because that agent must represent the seller's best interests. If you do not have an agent working on your behalf it would probably be in YOUR best interest to do so (providing your state has buyer and seller representation).

You can reach us directly at 678-784-4289 if you would like more information.

Regards,

Carol Moson
"The Moson Group"
RE/MAX Greater Atlanta
678-784-4289 (direct)
770-973-9700 ext 289 (office)
Web Reference: http://www.TalkToCarol.com
0 votes Thank Flag Link Thu Jan 28, 2010
THe agent who you want to represent you -- the one you called 2nd -- should be able to get you all the answers you need. Don't call the first agent again. Stick with your buyer's agent and trust him/her to represent you in the dealings with the other realtor.
0 votes Thank Flag Link Thu Jan 28, 2010
How did you find out about the property.? Did the agent give you a consumer notice. ?
You have received good advice about buyer agency and procuring cause . If you are uncomfortable and do not inderstand how agency works please talk to an attorney .
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Tue Jan 26, 2010
Anna,
I have to say that I completely agree with Renee. And her information is correct. A lot of people still don't quite understand what buyer agency means. And it is important to establish that before you look at properties with an agent. Most of us enjoy our job as Realtors, but we also do it as a means of income, not charity work. When a agent uses their time to show you a property, and give the details to you, they want to be paid in the end. You want a buyer agent, so that someone is loyal to you and your best interest. The agents also want loyal clients, so that they do not waste their time and gas, etc.
0 votes Thank Flag Link Mon Jan 25, 2010
Anna,

I am not sure if we clarified who owns the property. Is it in "pre-foreclosure" or has it been foreclosed upon? If it has been foreclosed the bank owns it and I doubt the realtor would convey that the price is non negotiable. They would likely just want offers. If it is in "pre-foreclosure" the $100,000 less you are speaking of may be the judgment amount and not the price and Trulia should not be relied upon.

I suspect unless you signed something, you can still hire your own Realtor to represent your interests and write an offer. This will likely result in a commission dispute so you may have trouble, but perhaps it can be negotiated between the two Realtors. If the property is headed to foreclosure the listing Realtor will have an incentive to negotiate since if it goes to foreclosure, they will get nothing.

I agree with most of the posters. Next time first get a Realtor to represent your interests if you are not experienced with real estate transactions and second everything is negotiable.
Web Reference: http://www.dan-rich.com
0 votes Thank Flag Link Mon Jan 25, 2010
I agree with Renee Porsia, Procurring cause can come into effect here. You can however still hire your own Buyers Agent at this point, but you will be responsible for paying them a commission that would have otherwise been paid by the seller/listing agent. This is a prime example of why it is so important to be connected with a Buyers Agent for representation from the get go. Check out "Buyer Agent A Must" on our website.
0 votes Thank Flag Link Mon Jan 25, 2010
I like the Somers team but I have to disagree with some of what they wrote...

They write: "You do not legally owe any Realtor anything unless you signed a contract agreeing to use a particular Realtor" This is incorrect because you certainly could owe a Realtor something in particular, this Realtor who showed you the property because of something called procuring cause. Now, I do not know or have all of the facts so I can't say for sure what if anything you could wind up owing him. But, you have already created issues for yourself. If a Realtor shows you a property that you have not hired to be your buyer agent and then you wish to put an offer on that home but with a different Realtor that you do hire, you could be liable to pay your Realtor if the first Realtor who showed you the home doesn't want to pay your Realtor a fee or cooperate with your Realtor.

They write: "Bank owned properties are typically 99.999% of the time, "as-is". The bank will not add a stove or correct anything. So, your offer price and the sales price should reflect that in the price." I disagree with this as well. If it is bank owned, you certainly can get a stove from the bank if that is something that you want also, I do also believe a stove must be provided when the home is sold. I deal with banks all of the time and have successfully negotiated for my clients with banks many, many times. You can also have an inspection of the home and ask for credits from the bank.

The actual moral of the story for every home buyer is to FIRST hire your own buyer agent and if you are unfamiliar with buyer agency and what the advantages are for you, do your research online and read. Know your rights. Did the Realtor who showed you the home provide you with the Consumer Notice?

Feel free to contact me or check out my website: http://www.reneeporsia.com

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask For Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Jan 25, 2010
Buyer's who want their own Buyer's Agent should start their home search by finding an agent before looking at properties. In your case, you have seen the property with the listing agent, and you have determined that the property is now a bank owned property. Keep in mind that whoever you get to represent you, whether it is the listing agent, acting as a dual agent, or another agent or attorney that you pay, it is the bank who will control the price and terms. To place an offer, you or your agent with have to go through the bank's listing agent. This might or might not be the same agent who showed you the property.
0 votes Thank Flag Link Mon Jan 25, 2010
Anna,

This is a prime example why I am always on Trulia and on my website telling home buyers to FIRST hire your own buyer agent who will only protect your interests. Wanting to hire a buyer agent after you've seen a property with the seller's agent is too late. The seller's agent can now say that they have procuring cause and if you wanted to purchase the property, is now due a fee.

It's not always that simple for the Realtor but it will create many issues.

Unfortunately, this home is listed by the Realtor that you met and the bank hired him so the bank will not speak with you. You do have the right to contact an attorney and hire a buyer agent. Your buyer agent will want to be paid and if the seller agent doesn't want to cooperate now with your agent, you would be responsible to pay your Realtor. Very important to know and understand buyer agency.

Did the Realtor provide you with a Consumer Notice? If not, that is a problem for the Realtor.

You can always go to my website and read my blog and view my videos.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Jan 25, 2010
BUYER PERFECT PURCHASE PROGRAM
Buy any house and if you are not
satisfied, I'll sell it for FREE.*
http://www.peterblavelle.com

Good Morning Anna,

Have a talk with the REALTOR representing you, there may be some more facts needed in order to make a proper assessment. Also you can go to City Hall and research who has the deed for this property.

Peter Lavelle
Citizens Premier Real Estate
215-725-0500
*Conditions apply
0 votes Thank Flag Link Mon Jan 25, 2010
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