Home Buying in 33418>Question Details

1xbuyer, Home Buyer in 78947

Foreclosures, Short Sales & Bank Owned Properties.

Asked by 1xbuyer, 78947 Tue May 17, 2011

If a buyer is open to Foreclosures, Short Sales & Bank Owned properties, shouldn't the RE Agent provide the client with those listings? What would discourage an Agent from showing the client all possibilities for purchase.

Help the community by answering this question:

Answers

11
BEST ANSWER
1xbuyer,
The answers to all of your questions is YES!. This is a fantastic market for a buyer. If you want to close fast usually the foreclosure property is your best choice. You can use FHA financing to purchase your home provided that the home meets their standards. Get pre-approved with the lender of your choice to find out how much home you can afford, then contact an agent and find that perfect home. If that agent does not work out find another agent and start making offers. (make sure you are not under contact with any agent prior to working with another agent)

All the best,
Gary Geer

http://www.GaryGeer.com
1 vote Thank Flag Link Tue May 17, 2011
1Xbuyer,

Absolutely you should be presented with any opportunities in the current market that may ultimately be matches in helping you meet your housing goals. There are tremendous opportunities in REO's and short sales but you should have the process for each fully explained to you so you are set up to win. There should be no reason for an agent to discourage you from contemplating an opportunity if you feel it meets your needs.

I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
1 vote Thank Flag Link Tue May 17, 2011
There may be a couple of somewhat legitimate reasons that a RE agent may be discourages from showing particular categories of listings to a client/buyer. One reason may be the timing of when you need to pruchase/move into a house, the condition of housing you require (slight renovation vs full on rehab), and the type of funding you intend to use for your purchase. Some examples are: if you need to move relatively quickly, within 2-3 months, given the reputation for short sales taking more time to close due to the 3rd party approval requirement, the agent may not want to waste(??) your time showing you properties that typically will not meet your time frame for purchase; another example is if you are using for example, an FHA loan and closing cost assistance monies that require significantly longer close dates than say a CASH deal, then they may not want to flood your box with REO listings --which typically REO agents want to conduct relatively fast/sure transactions (why wait for a 45 - 60 day close using traditional bank money and closing help to see IF it closes rather than accept CASH deals that can surely close in 30 or less days). In this case it would be hard for you to compete with cash buyers and could possibly lead to frustration on your part. Additionally, REO properties typically require more repair (renovation to more typically rehab) which in many cases retail buyers are not prepared to nor desire to undertake. These REO scenarios --of course, depend on your price point as well. And, FHA monies also have certain requirements for use of those types of funds that limit the condition of the house that can be financed.

Having said this --IF the agent explains the pros and cons of the different categories of sale types (Standard, REO, Short Sales, etc) and the client/buyer still wants to be sent those listings (as long as the financing supports it) the buyer should have the option of seeing all the inventory that fits his/her buying/financing criteria.
0 votes Thank Flag Link Wed Jun 19, 2013
The agent should show whatever the client would like to see. However do not forget the traditional sales that meet the same requirements. Best of luck and call or email with any additional questions. :-)
0 votes Thank Flag Link Tue May 17, 2011
Absolutely! BUT...I always make sure that my buyers don't ignore properties that aren't necessarily in distress. There are lots of deals out there and distressed properties are not always the best deal! I try to coach my buyers to look at all homes in their price range in order to find the home that best fits their wants & needs. If your agent isn't showing you the homes you are interested in, it may be time to fin d a new agent.
0 votes Thank Flag Link Tue May 17, 2011
There is no reason for an agent to not show you what you ask for. Now my question to you is why do you want to see Foreclosures, Short Sales, and Bank Properties. Many of these properties are not the best price, it is only presumption that many are. There are great deals out there in the resale market. there are many people that are trying to outrun Foreclosure or financial difficulty. You will find good deals and a willing seller that will for the most part correct items that are wrong. Don't expect that from the bank, all their homes are sold AS IS and many are missing major material, like appliances and fixtures, many bank homes have damage from resentful evictions. So maybe your Realtor is only showing the best priced homes! maybe they are avoiding the Bank owned, homes or short sales because they have seen the condition of them from other showings. Ask you Realtor as to why they aren't showing you what you want? hear what they have to say, if the Realtor just doesn't want to show them and you still want to see the then all I can say is that you may need to find a new Realtor!
0 votes Thank Flag Link Tue May 17, 2011
Additionally, can a FHA loan be used to purchase a REO & short sale? All the answers I've received give me a better understanding of my options, thanks so much!
0 votes Thank Flag Link Tue May 17, 2011
There are no foreclosures listed in the MLS systems since a foreclosure is a process of legally taking back a property after the mortgage has not been paid. These are advertised in the newspaper and auctioned off at the courthouse, normally the banks get them back and then they list them for sale on the MLS - Now we can help you with REO's (Bank owned homes and short sales. many agent will shy away from short sales since they know how difficult and frustrating they can be. It is not uncommon to find the house of your choice and write a short sale offer and have to wait 3-6 months to close it - and it might never close.
0 votes Thank Flag Link Tue May 17, 2011
Dear 33418 Buyer,
Although most listings are in the MLS, agents who specialize in bank owned properties and foreclosures may have access to what is "coming on the market" before it gets posted in the MLS. Other agents, may subscribe to that information from various sources for a fee.

Agents can search the MLS for short sales as it is required to enter "yes" or "no" at least in RMLS which is the governing MLS for 33418. Bank owned and foreclosures require more time and skill to search in the MLS.

A few years ago, short sales were very slow and foreclosures faster but as banks have more streamlined methods today can be the opposite.

Some agents may avoid this because on short sales, for example, the commission is often offered as a "split" on what the bank approves which may be much less than the regular 2.5-3% offered to a buyer's agent. Also, time... it may very well take more time to negotiate, re-negotaite, wait and hopefully -close...

You have choosen a great area!! I highly recommend Jupiter and Palm Beach Gardens (between Northlake Blvd and Donald Ross Rd.). Please let me know if I can assist in your search.
0 votes Thank Flag Link Tue May 17, 2011
A Great Customer Service Oriented Realtor - (we operate by code of ethics) WILL show anything listed that meets the customer needs and criteria.

There is nothing to discourage an agent from showing the client all possibilities that meet their criteria. Keep in mind that a foreclosure is not for the feint of heart - usually gets into highest and best...a short sale is not good for a buyer with a timeline to be in the house, etc.

You just have to look at the buyers criteria and show everything that meets their needs!

Debbie Albert, PA
Keller Williams Treasure Coast
0 votes Thank Flag Link Tue May 17, 2011
Foreclosures are usually auctions and short sales and REOs are generally places where the agent may not get their full commission. Although it is not right, some agents tend to shy away from properties where they will not make as much money.
0 votes Thank Flag Link Tue May 17, 2011
Ah, an honest answer. David, thank you. I have learned that real estate people are similar to used car salesmen. Unfortunately, it is not really about finding me a property. It is about their commission. I don't mind paying for service however the it would be nice to feel you got your money's worth.
Flag Sat Oct 13, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer