Home Buying in Los Angeles>Question Details

myyear2013, Home Buyer in Los Angeles, CA

I have an agent that helping me look for a house ,it has been 2 months now we didnt get any offer accepted !(over 20),is it normal ?

Asked by myyear2013, Los Angeles, CA Wed Apr 10, 2013

Should i get more than one agent ?how does it work ?

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21
Ron Escobar, Broker’s answer
BEST ANSWER
Lots of answers here!

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.

If you find my answer useful, please select it as the Best Answer!

ROn
2 votes Thank Flag Link Wed Apr 10, 2013
I was just working with a buyer who i put 7 offers for, three countered and two were actually ready to open escrow with my client......my client backed out as i learn that he is putting in offers with other agents as well....

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.
2 votes Thank Flag Link Wed Apr 10, 2013
Gosh what a bummer for you Sona! How do you feel about Buyer/Broker agreements?
Flag Wed Apr 10, 2013
One of my clients just closed on a home after making about ten offers. On some of the properties they did not get people had offered more than $100,000 over list. And one house had 80 offers on it. Regarding the house they bought, we visited it on a Monday morning and submitted an offer with few contingencies on Monday afternoon. I think you need to be quick in making offers in this market, and you can't be overbearing regarding the contingencies (termites, interest rate on loan, etc..), time to close escrow and days for doing the inspections. Tom
2 votes Thank Flag Link Wed Apr 10, 2013
The market is very hot right now. It is Sellers market. Multiple offers are very common. I suspect that you don't trust your agent enough to follow their advice and are bidding too low.
2 votes Thank Flag Link Wed Apr 10, 2013
Many investors are making cash offers and it is a tough market for traditional home buyers.Let me throw in a few tips on how to beat cash offers below:

http://www.realtypin.com/news/story/1189-the-top-5-ways-to-b…
Web Reference: http://www.realtypin.com
1 vote Thank Flag Link Thu Apr 18, 2013
I have to weigh back in here. We have no idea if the agent is working super hard or not at all, because this poster hasn't indicated anything about communication. That's where the questions should start, shouldn't they?

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.
1 vote Thank Flag Link Fri Apr 12, 2013
The works, Ms. Gallatin, is only half of the information. Maybe the agent is telling this buyer that these are really low offers, but is willing to continue to put them in despite advising the buyer that there's little hope of getting the properties in a competitive market. We only know half of the story, with minimal details. That's why I'm asking- if this person is thinking of hiring two agents, there might be some significant communication gaps between the agent and the consumer, and rather than weigh in on what the agent is or isn't doing, I think the dialogue needs to start between them.
Flag Wed Apr 17, 2013
the work is indicated above......2 month and 20 offers. As an agent, I would defend a colleague first. People will usually tell you that they are difficult in the way they complain about others.
Flag Mon Apr 15, 2013
Every agent has a different tactic. Don't want to knock anyone, but you should look at their track record and see how experienced they are... how many sales they have completed this year, last year, etc. There are a lot of people with a real estate license out there with great intentions, but, they lack the experience and customary work ethic required to be successful in todays market.

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.

Good luck!!!
1 vote Thank Flag Link Fri Apr 12, 2013
Sounds like you are offering below market. Your Real Estate Broker should know the answer to this question. Best next action is to ask a local Real Estate Broker by clicking "Find a Pro" in the main menu at the top of this website. http://www.naplesrealestateguys.com/
1 vote Thank Flag Link Fri Apr 12, 2013
Hello,

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!!!

Best Regards,
Kawain Payne, Realtor
1 vote Thank Flag Link Fri Apr 12, 2013
In a competitive market, you're certainly not alone in missing out on some offers. But over 20 seems rather excessive, especially if you aren't getting some great feedback from your agent. The first step would be to establish some straightforward communication and ensure that s/he understands your driving motivation, your wants and needs. Then you need to be clear on what you can truly afford, what your "game plan" is (and if it's the same one you've been using, maybe it's time to reconsider), and then to eke out a strategy to get you into the right home.

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.

Good luck!
1 vote Thank Flag Link Wed Apr 10, 2013
It depends. The market in general has turned into a seller's market, with many homes garnering multiple offers for sellers to choose from. If you're asking for seller's concessions/contingencies, trying to put in low-ball offers or doing FHA or Conventional Financing with 5-10% down then you could be at a disadvantage if you're going up against cash buyers or folks with stellar credit and 20% or more to put down.

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!
1 vote Thank Flag Link Wed Apr 10, 2013
No, you should stick to one agent that has the experience and track record for getting offers accepted.
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 vote Thank Flag Link Wed Apr 10, 2013
There are a couple of reasons probably your offer didn't get accepted:
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
Coldwell Banker
310-923-2334
http://www.HeatherPaulOnline.com
1 vote Thank Flag Link Wed Apr 10, 2013
Go Heather
Flag Wed Apr 10, 2013
No you only use one agent if they are working in your best interest and are showing you homes and submitting offers. It is a very difficult market with record low interest rates, rents and home prices on the rise and very low inventory to get into escrow. I hope your not asking for any seller concessions as that will put your offers on the bottom of the multiple offers stack.

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.

http://www.under640ficoscoreloans.com/Pages/203K.aspx

http://www.under640ficoscoreloans.com/Pages/203KGuidelines.aspx

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/FHA.aspx

http://www.under640ficoscoreloans.com/Pages/JumboLoan.aspx

http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
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1 vote Thank Flag Link Wed Apr 10, 2013
Sometimes when there are specific features that you are not willing to agree to compromise on it can be an issue, but there is also a shortage of excellent, move-in housing stock which causes a "feeding frenzy" and multiple good offers. Most agents are skilled and effective in assisting their buyers with the tools that they give you to access the internet MLS, but ask for other services i.e. HUD, HomePath, REO listings (if you are not looking for New Construction). If you are looking for new homes, have your agent contact builders in the areas you seek to live?
Keep looking and good luck!

Ken
1 vote Thank Flag Link Wed Apr 10, 2013
Your situation is like most in our current market.
As previously stated, you should have a sit down with your agent to see how you might make your offers stronger and more appealing.
Good luck
Susan@SusanBour.com
1 vote Thank Flag Link Wed Apr 10, 2013
You don't need more then one agent. What you should do is make offers based on the past 6 months comps and what you truly feel it's worth based on other similar homes you have viewed. Bidding wars are rampant in my area this spring so it could just be that there are other more attractive offers or maybe your offer isn't strong enough. I would have a conversation with your agent to discuss your concern.

Chris
1 vote Thank Flag Link Wed Apr 10, 2013
Myyear2013, your price point of $140,000-$160,000 is going to be especially tough. Are you looking within the city of Los Angeles? Not only is there limited inventory, but the inventory that is available often needs work and repairs that would make your loan more difficult to close, further reducing your choices. I'm not trying to discourage you, but maybe you want to consider an area with more inventory in your price range. Being at the lowest price point for any particular area is going to be very challenging.
0 votes Thank Flag Link Tue Apr 16, 2013
We are up to 46 offers now and nothing yet(except one that i really didnt want ) !i even ask him to be lenient on the offers ,i m paying the closing cost and i dont mind 1 or 2 months rent free for the seller!i m getting financed with 3.5%down on a 160 K,we are looking at 140 K and below so we can offer more on a house we like...what more can i do ??
0 votes Thank Flag Link Tue Apr 16, 2013
My Year, what is your agent suggesting? Are you looking at homes or condos?
Flag Thu Apr 18, 2013
While that does seem like a lot of offers in such a short period of time, I'm not shocked. The market is rife with Buyers today. Almost every home is receiving multiple offers - I've recently seen homes with 17-25 offers submitted. And I've written many offers for some of my clients as well. It's the market at the moment.

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!
0 votes Thank Flag Link Thu Apr 11, 2013
Dear My Year,
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.
0 votes Thank Flag Link Wed Apr 10, 2013
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