Is a tough market for buyers... and depending on your profile, it could be near impossible...
Unfortunately government policies that were at one point aimed at reducing foreclosures are now basically funneling the housing supply to large hedge-funds! SURPRISE! -Not really...
Fannie Mae and Freddie Mac are doing large bulk sales to institutional investors (wall street -again!) and they are gobbling the houses and converting them into rentals.
A buyer's agent can help themselves and their clients by following the listing agents instructions and writing competitive offers. Higher down payment, rapid contingency times, strong pre-approval... all are important... maybe you want to try buying a property with a rehab loan and buying an ugly duckly and turning it into a swan.
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My advise to you is be honest, making offers is not a game and if you are serious about buying then sit down with your agent and make a plan.
Communication is critical in every step of a transaction- in fact, before an actual transaction begins. You really do need to talk to your agent to ensure that you're both on the same page.
If you trust your agent and have a good relationship with them, it may just be tough luck... there is little inventory and most properties are going in multiple offers and many buyers are in the same situation as you....
However, if your guts are questioning their knowledge or experience base to get it done for you, you should speak to a few agents and see what they offer and how working with them might benefit you better. Note: if you have signed a Buyer Broker Agreement... don't go and seek another agents help without getting that revoked, if you can.
It is a tough market for both buyers and agents. Experience makes all the difference. I, for instance has averaged one closing per week for 2012 to present. Be sure to work with someone who knows how to navigate today's market.
I have given up on the term "normal" as it relates to today's market.
Things change a whole lot real fast.
You should try and write offers on properties where the seller has stipulated they want owner occupancy for a period of time. This will get the investors out of your way.
Sounds like your agent is working very hard for you. Inventory is low and we are seeing multiple offers on almost everything.
You can also beef up the power of your offers by being cross approved. Showing you have been approved by more than one lender is a plus. Also try and use an approval for a direct lender. Many sellers are snubbing offers where the buyer is approved by a loan broker vs. a direct lender. Give the listing agent permission to contact your lenders directly to ask about the status and strength of your loan application. This shows you are a serious, solid, and strong buyer.
Be patient, your home is out there. Your agent WILL find it.
Much Success to you!!!
Kawain Payne, Realtor
When you sign with an agent you limit yourself to working with that person (or paying him/her commission if you are still under contract and buy with someone else), so that's not a great idea. Start the dialogue, make sure you're both on the right page, and ask for feedback and guidance to help you get where you need to be.
20 offers is not unheard of and it's not necessarily your agent's fault. However, I would sit down with your realtor and try and figure out WHY you're having a tough time getting offers accepted. If you're working with limited funds to put down or less than perfect credit then you may not be able to do much about it other than to continue looking while you focus on saving more money and/or improving your credit. If you're just being unrealistic in your offers then your agent should be honest with you on that too. Sometimes you have to go over the list price,
But there are other tricks of the trade, such as writing a letter to the seller explaining why this is the perfect home for you and they should accept your bid over the others. Pictures of your kids or a puppy along with a sob story actually works sometimes beleive it or not.
I would consider switching realtors if you don't feel you are getting good advice or direction or if you feel the agent is lackadaisical in submitting and following up on your offers. If not, then it could merely be a function of the market as it exists today.
Hope this helps!
In today's market in which you are competing against multiple offers, your agent has to present to the listing agent why your offer is the best offer. If you haven't gotten an offer accepted after 20 offers you need a more experienced agent to assist you in submitting a competitive offer. Are you making low offers--below the market value?
1. Multiple offers-most of our properties are having multiple offers and many of them are selling for full price and over asking prices
2. Possibly your agent is not the best at negotiation
3. Submitting Low ball offers-as I mentioned-most properties are selling full price and many for over asking price-this is a sellers market and low ball offers are getting blown out of the water with all the multiple offers
4. Contingent upon sale of your home-Many homeowners do not want to wait on contingent offers
5. Competing against all cash offers-Cash is King and most owners & listing agents are going to leave toward accepting an all cash offer versus offers with loans
6. Your agents knowledge of the market-right now to get an offer accepted-you have to go out to brand new listings usually the same day or within days of the property hitting the market and submit your offer immediately due to the competition
You should have only one agent representing you, agents work on commission, it is not fair to have more than one agent helping you and spending their time to find you a home and you only intend on using one agent.
I hope this helps!
Have a great day,
Heather Paul, Realtor, Broker Associate
You may consider premium financing to contribute towards your closing costs. You may also consider compromising further such as buying a home that needs a little work which you can have done with a streamline 203k purchase loan and close within 45 days. A streamline 203k purchase loan can finance from 5k up to 35k for new carpet, paint and minor repairs of a home of your interest.
Here are some links to study and consider that I offer.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
9am till 9pm 7 days
Keep looking and good luck!
Your profile (where and what you're looking for, how much you're pre-approved for, how much you're putting down, who is your lender, who is your agent) is really what's going dictate the kind of competition you're dealing with and if you will receive an accepted offer.
It's definitely not a good idea to work with more than one agent. But you do need one that is on the ball, tenacious and highly responsive. If your agent is working hard for you, they will be on top of all the properties that make sense for you and get you out to see them the minute they hit the market. Your agent also needs to work with you and your lender to know how they can be creative on your behalf when they write each offer. If your agent is doing all that and you have reasonable expectations, just be patient, they'll get you in something! Good Luck!
It might be normal, It sometimes takes up to (6) months for a buyer to find a property. So much depends upon what you are looking for and what your offers have been like. If you are looking at only "distressed property" you are in a category with huge competition, so you might be getting "outbid" on everything. There is a strategy for buying this type of home so discuss that with your Realtor. If you are writing up low offers, or have many contingencies you will likely not be successful.
One of the jobs of your agent is to advise you on offers, are you taking your Agent's advice? You don't need more then one agent, but you do need to have a good rapport and trust with the one you are using.