Something you may not be aware of; banks determine what a propertyâ€™s value is prior to accepting an agentâ€™s offer; they do their own internal appraisal prior to accepting any offer, regardless of who is making it, in basic economics, itâ€™s referred to as â€œchecks and balancesâ€.
A listing agent sets the bar in terms of price, and the market lets them know if itâ€™s set correctly. It is what is referred to as â€œmaking a marketâ€, and is fundamental in any open market society. Agents and banks do not arbitrarily set prices and except/reject offers, the market and its current participants do, thereby creating transactions.
Agents and buyers that have issues with short sales are usually the ones that either, donâ€™t understand the short sale process, and or, are unwilling to work within the perimeters that have been set by the banks.
A personal observation; qualified buyers are not being kept out of the market, but rather unqualified buyers and their agents are, and or, buyers offering financing are losing out to those offering cash.
If you want things to change, youâ€™ll need to have the government create a mandate whereas the banks are required to complete a, predetermined percentage of their business based upon transactions where finance contingencies were present.
We do understand your frustrations and those of that really ARE professionals are just as disgruntled. No one here is saying that we condone that type of behavior although it does unfortunately happen. If you feel that something is unethical or illegal (if you aren't sure on Realtor ethics, the COE is available here: http://www.realtor.org/mempolweb.nsf/pages/2011code) then file a complaint with a) that person's broker, b) the association of Realtors they belong to, c) DBPR & FREC and d) the Attorney General's office.
At some point it will change but not if this is the only venue that you choose to "do something".
Yes foreclosures are listed at Market Value, and most that happen to be in good shape get contracts in 7 days or less, usually multiple contracts and end up selling above asking price. Even then the buyer ends up with an excellent deal and a great property. I found most buyers need to be educated about how to offer on a foreclosure. They seem to have the incorrect idea that the bank is suffering and restless to sell any property therefore willing to take a big loss, not true. Bank will slowly reduce price until demand sets in. Making a significant lower offer is a waist of time for both buyer and agent.
Short-sales, stay away from them unless you are an investor who could care less if the deal goes thru or not. The only people who will tell you they are good deals are agent who list them, and want to double end the transaction if it ever gets to a closing.
Hopefully this reality check did not scare you away, but prepaired you for a winning fight.
Charles Rutenberg Realty
Liane Jamason, REALTOR
Keller Williams Realty
P.S. The link below will show you all of the available St. Pete foreclosures on the market.
Best of luck to you.
Foreclosures and short sale ARE NOT TRANSPARENT processes. There is much that occurs behind those 900 Billion dollar curtains we will never see. To suggest, and for other agents to concur that the fault lies with unethical agents is to be as uninformed as the questioner.
Alan Engman reveals this is a highly competitive segment in a very competitive market involving highly complex transactions. Alan states and I agree, if you want to play with the big boys you need to put on your big boy britches and play big. You need a strong team. You need to stop crying when you lose. And there will be deals you want and will lose. It a business, not a hobby. No one wants to have their time wasted. it's a BIG Business. There are BIG players, involved with very deep pockets. If you are decisive, able and can compete, give Alan a call and get in the game.
It is human nature to want to find another to blame for their loses. So, this is no different. The business is to get new owners for this real estate as efficiently as possible. Most agents have buyer who ARE committed. If you choose to remain non-committed, you must understand, you are on the outside looking in. You will win but only should an accident occur. Many real estate professions do practice accidental real estate. These, however, may not be the ones who can guide you to a predictable outcome. When you are ready to commit...call a pro.
Give me a break not only are all these realtors shady I cannot find one that wants to help me find a house.
I am thinking about trying to get licensed just so I can find a house.
Many of the short sales, if priced appropriately, are almost immediately placed under contract by prequalified buyers and their agents, and many/most of the buyers are also clients of the listing agent.
Why /how you ask; because agents such as me specialize in these types of transactions and are sought out by investors and buyers that have the cash or prequalificationâ€™s to buy/close the deals. Banks will not even allow an offer to be made without it being in order first. Buyers with proof of funds, offering cash, with few contingencies, go to the head of the line, and are buying 80% of the deals.
Good agents will be able to price a property within the range of what the bank wants, and upon doing so, have a qualified buyer ready to purchase it.
There is no "funny business" to be had here. The practices are not hurting buyers or sellers but protecting each party along the way of these type transactions. Going it alone without understanding how it all works is a situation setup for failure. I would suggest getting on board and understand the processes or hire a good and experienced RE professional to get the job done in the shortest amount of time possible. It appears you are losing opportunity at a rapid pace. Good luck to you!
I would not say it is funny business as much as it is a market that has 1/2 the inventory it did a year ago. It does matter if the home is a short sale, Foreclosure or resale if it is priced right it goes fast. I have clients that I have setup searches for in a particular area or condo building in some case and in fact last week I received a notice on my phone of a new listing (bank owned) in a particular building in DT St. Petersburg. I called my client and they already knew the building and said to put in an offer. That all happened in a matter of houses and we are closing soon. The same applies with short sales just to start the (LONG) process. If you find an agent that understands what you want it helps for sure. I feel your frustraction with some agents even being an agent. I call to show a property and get a message that they will call me back in 48 hours and don't even do that much.
2011 Million Dollar Club
If you were to ask ANY real estate professional what is the VERY FIRST THING TO DO WHEN BUYING HOME..the response will be...select a real estate professional to represent you.
There is a reason for that. Now, having defied the most basic of instructions, you want to blame others for your actions. Something funny going on! There's a schemer behind every listing. No such thing in reality. You simply don't know how to do it and the rules that apply.
Get a agent and you will get results. Foreclosures are a very competitive environment. You need to be decisive and aggressive. If you are neither of these...then don't burden an agent until you are truly ready to buy.
Jim Soda â€¦ TheSodaGroup.com
Keller Williams Realty Sarasota-Lakewood Ranch
GREAT QUESTION!!! and you deserve a straight forward answer from an agent that works with buyers and sellers in short sales and only buyers in foreclosures. I have sold over 800 properties in 14 years so I know a bit about whats going on.
Short sales are a joke. It takes the banks approval to sell one. It takes 6 months to a year to MAYBE get bone done. My buyers usually move on to something else after getting tired of waiting. The bank is NEVER happy with the price, does want to pay a fair commission and asks for updated paperwork every three moths because its now outdated which pisses everybody off.
I currently have a short sale approved by BOA with an approval letter sitting on the desk of the negotiator. She asked to see the deed. We have sent it 6 times in the last 2 weeks and neither she, nor her supervisor will even admit they have it yet.
Now I ask you, you want a deal, how would you like our job? We spend more time with pictures and alike when its a regular sale with regular parties involved. Its a waste of time we have to deal with and the buyer is the beneficiary as the bank has already been made while so they don't have to do anything but play around.
Now you know why you get such a feeling, its not you or me, its the bank.
Commercial and Residential Realtor
Cape Coral, FL
Your best bet is to find a good foreclosure buyers agent in the area you are seeking to buy, and do not be surprised if they do charge an upfront fee for representation--the foreclosure market is very tricky, often time-consuming, and it does pay to have someone on your side who really knows what they are doing!