Home Buying in Corona>Question Details

Lazaro, Home Buyer in South Gate, CA

Give up or try for a house with a pending status? Also in need of an agent.

Asked by Lazaro, South Gate, CA Thu Jul 23, 2009

Many houses I find are already pending, they have offers and may be accepting back up offers. We've been looking since February, been through 2 agents, and we're always steps behind. At the moment my Parents, who are retired agents, are acting as our agents because we are all frustrated with the lack of "I will handle this" attitude from our other 2 agents. I feel that this market is different from when my Parents were active. To them a house with an offer means move on.

What's the best advice when we see pending?

I'm hoping that the answers here can give me enough info to convince my Parents that we really need an agent that is familiar with the area, Sycamore Creek in Corona, CA, and has experience in this market and dealing with banks, REOs, someone who is out in that area who may have an inside track, maybe gets listings from the bank.

Am I asking for too much from an agent?

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Answers

11
Another option, which worked out for us, is to maybe look up houses that were taken off the market by the owners recently (non short sale/REO) in the last few months...maybe the owners are now in a different situation or are unable to rent it out? Not sure if you have many of those in your area.
We also ran into problems bidding on houses with multiple offers. It was very discouraging because I refuse to overpay on any housej ust because I "want it".
We had seen a house earlier and liked it, but it was taken off the market a few days later, but the owner was stil intersted in selling. Our agent contacted the seller. Since it was not on MLS anymore, we were not in competition with any other buyers, and negotiations were easy and we actually had time to mull over things that in a multiple offer situation, you can't do (buyer's reget).
0 votes Thank Flag Link Tue Jul 28, 2009
How about an answer from a non-agent?

Been looking myself, and I agree, pending means move on. You just need an agent who shows you the houses THE DAY they come on the market.

Also - consider waiting a while to buy. You are not going to miss the boat. Prices are not going to jump back up. Summer is a popular time to buy. Think about looking in November or December instead. There will be fewer buyers out there when everything is thinking about Christmas, etc.
0 votes Thank Flag Link Fri Jul 24, 2009
Hi Lazaro,
I feel your frustration. When interviewing an agent it is also a good idea to see how tech savvy they are besides knowing the area. Are you receiving a morning update every single day from your agent? Do they receive your email directly to their phone so they can stay in touch with you at all times. In this market is critical that the buyer and agent have strong communication.
Agents like myself are doing the best we can to meet our customers needs. You need to find someone aggressive and knowledgeable about the business. You need to also be working with a direct lender now a days like (BofA, Wells Fargo, US Bank) each Bank owned properties have a cross pre qualification process. Sometime if you have a strong Approval Letter from your direct lender your offer is more easily submitted for acceptance.
Home sale inventories have drop by 50% since last year in the Inland Empire and buyers have increased. But don't worry I'm working actively to bring more houses on the market. Now is a good time to sell and reinvest in homes.
0 votes Thank Flag Link Fri Jul 24, 2009
Hi Lazaro,
There are very few homes on the market in Corona. You should interview your next agent and ask them some tough questions. Are they a full time agent? How many buyers do they work with at one time? Do they have other buyers that are looking for the same house you are?
You need a local agent who can get you over to see a new listing the same day it goes on the market. The best homes are selling in the first day or 2 on the market, and if you are waiting a few days, you will miss out..
Hang in there, Corona is a great place to live and you will find the home of your dreams. Thanks, Liane
0 votes Thank Flag Link Thu Jul 23, 2009
Stratagizing for your individual set of circumstances requires a one on one meeting with a couple of agents you feel you may want to hire. Then go from there. The type of loan you are prequalified for makes a difference and depending if you are an FHA, VA, or conventional buyer your offer needs to be fine tuned a bit to make it acceptable to the seller. In such a competative market little adjustments can make a big difference.
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Thu Jul 23, 2009
Hi Lazaro:


Many buyers are getting very discouraged in this market, with the inventory reducing and the sales climbing, it makes for multiple offers on many properties. It is very hard for most buyers because there are cash investors scooping up the properties.

If the home is pending, it usually means a buyer is pretty solid, or that the agent is tired of dealing with multiple offers. So moving on is probably good advise, but I have found that sending e-mails is the fastest and easiest way to deal with the agents, to find out the statues and situation and then you can make a decision from there. I approach Back up offers the same way.

If you need an agent to sit down with you and create a strategy for your situation give me a call .


Good Luck:

Diana 909-945-5763
Web Reference: http://www.dianam.com
0 votes Thank Flag Link Thu Jul 23, 2009
Dear Lazaro:

I could be wrong, but I think you've posted questions in the past, which tells me you have been looking for awhile.

Particularly since you are in South Gate and looking so far out, I know how frustrating this process must feel.

It is true that the Corona market is extremely competitive and can pose a challenge for buyers looking for turnkey properties in popular neighborhoods. I am familiar with Sycamore Creek and believe you also need to find an agent with significant expertise not just in the neighborhood, but with bank-owned and pre-foreclosure properties, as most of the inventory falls into these two categories.

Your direct question has an unpopular answer: it depends. And the factors on which it depends are many. Whether you should submit offers on a pending depends, among other things, on the strength of the existing escrow, whether the MLS pending status is accurate (sometimes unaccepted short sale offers with no open escrow unfortunately get recorded as 'Pending'), how many other offers exist or are likely, how much you like the home and how you feel about passing up other opportunities in the meantime. Also, when you need to move is a critical part of your strategy calculation.

There are a number of things you can do in writing your offer to stand out from the crowd and increase the chances of getting your offer selected. That said, it may still take several tries in this market for the stars to align. I would say definitely don't give up, but also, do not write off every property that has an offer on it either.

You are right that a tenacious and skilled local agent is a critical part of your equation for success. I would be happy to talk with you and your parents regarding how the system works behind the scenes and whether we would be a good fit and be able to form a team that can get your goal accomplished.

Stay encouraged!
0 votes Thank Flag Link Thu Jul 23, 2009
Hi Lazaro,
I specalize in the West Los Angeles area but I can refer you to an excellent and experienced agent in your area. My contact information is below.You do need an agent that is savvy and professional and knows the area you want to buy in.
You are absolutely correct that this market is something new (and strange) compared to markets in the past. Let me give you a bit of information on "pending". Pending means an offer has been accepted BUT there is a chance the funding will not come through with this buyer for one reason or another. You can put an offer on a pending property, but it has to be solid, meaning, not many contingencies and a good down payment, strong FICO and credit. In other words the seller will know by your offer that you can come through with the financing.
Feel free to contact me if I can answer other questions for you.
0 votes Thank Flag Link Thu Jul 23, 2009
Hello Lazaro,

I work with Prudential on the Tennant Group. We specialize in REO/Bank owned properties, http://www.thetennantgroup.com. If a home is bank owned and pending, back up offers are not used as thought. They are usaully used a call list in case the primary offer falls though. Then all buyers are usually given the opportunity to make new offers and start the process over again.

Bill is right to note that you should also believe that many of these homes have 5-25 offers, not just 2 or 3. Also 90% sell for more than the list price. This is not a down market, REOs are usually price below market to sell quickly. Banks and agents don't want to have these properties sitting around to babysit and be vandalized, etc.

My advise is to buy direct from the listing agents. You can get the inside track, know about them prior to even being listed, etc. If you would like to discuss options and thoughts further, please feel free contact me at your convience.
0 votes Thank Flag Link Thu Jul 23, 2009
Lazaro

I know it can be very discouraging right now trying to buy a home in Corona and throughout much of the Inland Empire. With the low housing prices that we have right now and the low interest rates, there are so many buyers trying to buy a home at this time. Because it is so competitive it is hard to get an offer accepted. Sycamore Creek is a popular place for home buyers because they are such nice and large homes and the prices are really low. I've known of houses getting over 20 offers.

In the market that we are in in this area, it is very important that your agent know the area and that they are always on top of things. It is equally important for buyers to be very competitive in their offers and make them as strong as possible. Buyers are often having to put in offers quite a bit above the list price to get their offers accepted on the best houses.

I am very familiar with Sycamore Creek. I just had a listing there sell recently and I've worked with several buyers looking in that area, specifically for REO's. Feel free to contact me if you have any questions or would like some help.

Vicki Pedersen
vicki@pedersen-team.com
0 votes Thank Flag Link Thu Jul 23, 2009
Laz,

If you are focusing on "foreclosures" the likelyhood of multiple offers could far exceed one or two additional buyers that are waiting for the deal that is "first in line" to fall apart.

Whether or not you making an offer on a property that is "pending" should include the number of other buyers that are doing the same.

Keep it real....if you are going to be sixth of ten offers, you might be "spinning youe wheels." And best off considering other options.

Best wishes,

The Eckler Team
0 votes Thank Flag Link Thu Jul 23, 2009
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