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 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/condo we like.(we always offer more)..what more can i do ??

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16
Kristin Ames’ answer
Demand is high. Be patient. I have some clients that have taken up to a year to find just what they wanted. It is now a sellers market. Multiple offers are common and sometimes you have to just be aggressive and pay over asking price. Keep track of live links on your own such as hudhomestore.com and homepath.com and homesteps.com. These types of homes..hud, fannie mae and Freddie mac give the owner occupied first look (most of the time, there might be a rare exception). Good luck
0 votes Thank Flag Link Fri Jun 28, 2013
BEST ANSWER
You face two major home purchase challenges:

1. The price range you are looking in is very active with all cash buyers and multiple offers
2. As a 3.5% FHA down payment buyer, you are competing with buyers with stronger financial qualifications

If you and your agent have written 46 offers, I don't think the issue is an agent who is not working hard for you; rather, I think you need to look for some different strategies. Here are my suggestions:

1. See if you can qualify as a 5% down payment conventional buyer. This will get you out of the FHA rules that many sellers see as negatives

2. Consider short sale transactions where you may find less competition for a good home, as long as you can be patient for the bank's approval

3. Identify your 'perfect' neighborhood and ask your agent to seek out homeowners in that neighborhood whose homes are not currently listed for sale but who may be interested in doing a private party sale.

4. If you have been focusing solely on one neighborhood, expand your search to other commutable neighborhoods that will meet your housing needs

5. Consider co-purchasing your home with a family member or partner who can bring more down payment/financial qualifications that will make you a stronger buyer on paper.

It is an extremely difficult marketplace for buyers with low down payments. You are already doing a lot of good aggressive steps. Be flexible, be patient, and strategize with your agent ways you can 'think outside the box' in your home search.

Good Luck!

Meredith McKenzie
Broker Associate #01142186
Podley Properties
626-344-9755
arroyolover@gmail.com
0 votes Thank Flag Link Tue Apr 16, 2013
Great answer. And well structured.
Flag Tue Jul 2, 2013
You always have good advice. :)
Flag Wed Apr 17, 2013
Money talks and sellers listen. A 5 percent down payment is not as impressive when buying a house as a 10 or 20 percent down payment. Another concern of sellers is that a winning buyer may get cold feet and default on the home purchase contract, stranding him without a sale.

If you can put as much money as possible into the earnest money deposit (a month earlier than the down payment) you communicate your intentions to follow through with your home buying offer. After all, if you withdrew your offer, you'd lose this deposit. Other competing offers cannot contend with such diligence.

When buying a home in a context of multiple offers, try to create a connection between yourself and the seller. Selling a home can be an emotional experience, and you can get on the seller's side by communicating your appreciation for their home.

Show concern for the seller's situation by relaxing on the buyer possession aspect. Offer a post-occupancy agreement and give the seller a few days to move without expecting anything in return. Keep your connection positive by not requesting personal items from the house.

Forgo inquiring about the antique chandelier in the foyer - if he wanted to sell it, you would know about it. Lessen the seller's burden by picking up the tab for some of the seller's costs such as escrow fees, transfer fees, and title policies. Encourage your agent to befriend the listing agent and discover which seller's special requests will "seal the deal." Then try to arrange to meet those needs.

If you carefully consider and apply these ideas, you will surely be a step ahead of the competition.

Please call me or email me if you have further questions.

Happy hunting.

Vinu Kumar

Work: 800.846.1619
Mobile: 949.887.2567
Fax: 626.628.1956
Email: emailvinukumar@gmail.com

http://www.linkedin.com/in/vinukumar1
1 vote Thank Flag Link Mon Jul 1, 2013
Dear My Year,
Unfortunately, in your price range and type of financing it's not that unusual. If you are working with a good buyer agent, you should ask for his/her honest opinion on what is going on with your offers. In my experience, your agent should know and,hopefully, feel free to share that information with you. There are
Strategies for getting an offer accepted in this market.
0 votes Thank Flag Link Tue Jul 2, 2013
Hey! That seems a little excessive, 46 offers! How are you pricing your offers? Below asking price?
0 votes Thank Flag Link Mon Jul 1, 2013
I believe that's normal due to the high demand for housing in general, and plus the market for real estate is down.
0 votes Thank Flag Link Fri Jun 28, 2013
One of the main problems maybe FHA financing if you are competing with prospective buyers that are conventional or all cash. Seems like you have good ideas: offering more, sellers lease back and paying closing cost. Sellers have the advantage of low inventory. But I am seeing in West L.A. that listing prices have increased but buyers are not offering or jumping at the listed price the first day or week. Only judging within last few weeks but prices cannot keep increasing at 5% to 8% within 6 months. Keep going and offer on home you want something will pan-out.

Gail Mercedes Cole
EXP Realty
(310) 853-9933
http://yourwestsidehomes.com/
0 votes Thank Flag Link Sun May 26, 2013
One of the main problems maybe FHA financing if you are competing with prospective buyers that are conventional or all cash. Seems like you have good ideas: offering more, sellers lease back and paying closing cost. Sellers have the advantage of low inventory. But I am seeing in West L.A. that listing prices have increased but buyers are not offering or jumping at the listed price the first day or week. Only judging within last few weeks but prices cannot keep increasing at 5% to 8% within 6 months. Keep going and offer on home you want something will pan-out.

Gail Mercedes Cole
EXP Realty
(310) 853-9933
http://yourwestsidehomes.com/
0 votes Thank Flag Link Sun May 26, 2013
My experience is every house on the market today is getting over asking for the home they are making an offer on. If you want a house in this market I would remove the appraisal contingency, make your offer $5000.00 over asking and a 45 day closing. However, if you have an FHA loan with 3.5% down that might not be as appealing as someone with a big down such as 20% down or an all cash offer.
This market is insane..... good luck!
Carol
0 votes Thank Flag Link Fri May 3, 2013
Offer 105% of list with 30 day close. Put your 3.5% down as earnest money. Make sure you are preapproved, not jut prequalified. Good Luck, Nolan Moore, Realtor
0 votes Thank Flag Link Fri Apr 19, 2013
To be honest, I don't know how your agent is working, but in this market things are not ease because of the lower inventory of houses; I will suggest the agent to go door knocking on the area you want your house, to see if someone in that area wants to sell their house, other than that , be patient.
0 votes Thank Flag Link Wed Apr 17, 2013
Sounds like you are in a Seller's market, there is nothing more that you can do when dealing in this type of situation.
0 votes Thank Flag Link Tue Apr 16, 2013
In this environment, it doesn't surprise me. The problem is the FHA loan and the low price point. I've had to give up my FHA buyers for the time being because they get bashed around like you have been experiencing.

Two suggestions:

1) Try to find a 'for sale by owner' to work with who has not listed their home on the MLS
2) Save your money and try again in a few months when hopefully inventory will be higher.

Take care.
0 votes Thank Flag Link Tue Apr 16, 2013
yes, I did 45 offers, within 6 mos, for a client. no luck. It's a seller's market, and there are not enough inventory out there. Thank god, Im a listing agent most of the time.
0 votes Thank Flag Link Tue Apr 16, 2013
Indeed, this is tough market for buyers and a great market for sellers. The limited inventory of homes for sale is helping sellers to receive multiple offers, some cash and almost all offers above asking. This market is especially tough for buyers with only 3.5%, as they are being beaten out by cash buyers and buyers with more than 3.5%. It is not uncommon for buyers to place multiple offers before finally getting an offer accepted in this market. You definitely need to be patient and move quickly throughout the home-buying process.

There is a way to increase your chances of getting an offer accepted sooner. If you'd like, I can share a few ideas with you on how to do this.
You or your agent can contact me via my website if you are interested in learning how to increase your chances of getting an offer accepted.

Nicolas Romo
Web Reference: http://www.sellingcasas.com
0 votes Thank Flag Link Tue Apr 16, 2013
Most likely the biggest problem is the down payment as you are competing with buyers who have a lot more skin in the game. What would you do as a seller if you had equal offers, one with 3.5% down and one with 20% or more?
0 votes Thank Flag Link Tue Apr 16, 2013
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