You see a listing agent is acting in the best interest of the seller that means that he is trying to get the most money out of your pocket. What you need is a buyer agent one who will act in your best interest, after all this is the single most expensive product you may ever buy you should at least get someone who is looking after you and all of your hard earned money.
listing error (ASC considered active)
more buyers getting qualified
are there any govt programs/incentives hastening this trend . for eg i see many foreclosure listing in trulia but dont see them in the MLS.
So I guess what I really want to know is, if I should join the race or wait for it to wind down..
Based on my experience over the last two weeks, we are heating up. Normally the spring is a more active market but that started early due to the fact that we've had unseasonably warm weather. And have you noticed more people out at restaurants lately? i think people are tired of the economic 'blues' and ready to start in again. New homes building is up, I'm observing more competition (even MORE multiple offers) than I did a month ago, and I've had a frenzy of multiple offer activity even on homes over $400K...amazing.
If you want a home, get aggressive on your offer. I believe the market is on the rise, and if your offer is too high, then the appraiser will readjust but it's frustrating to be always behind the curve. I'm not promoting offering over to have the appraiser bring it down later, but inventory seems to be scarce and I think, based on only my experience with my current buyers, the homes are going for over list price with lots of offers competing.
A PS. to my previous answer. If you already have representation then you should re-examine if that agent is acting up to your expected standards. Until you have that conversation, it would be unethical to "go around" that agent. However, unless you have signed an exclusive buyer/broker agreement, you always have the option of working with people whom you feel serve your interests best (lender, realtor, dentist, attorney.....whatever). First, though, you must sever that previous relationship.
Have the conversation, then decide.
If you work with the listing agent, his/her duty is to the SELLER and to you. Best to have your own agent now, for negotiation purposes and during escrow, in case you need to request repairs, the negotiation sometimes does not end until the close of escrow. You can use the listing agent, but I do not recommend.
Web Reference: http://www.eloise.mercer.c21selectgroup.com
There are many reasons why you keep getting beat out on your officers. The biggest one today is that there are just more officers! If there are 10 people putting in officers on the same house, 9 of them are not going to get it, so just based on statistical date your changes may be small. But then there are other factors: What type of financing are you using? How much is your down payment? How strong is your pre-approval letter? Is you pre-approval letter from a lender with a good reputation? Are you asking for any contingencies like appraisal, financing, home inspection? How long of an escrow are you asking for? Are you asking for closing costs?
Iâ€™m not trying to insinuate that you shouldnâ€™t be asking for things; just realize that a seller with several officers may just eliminate all of the FHA, VA or conventional offers with less than 20% down â€“ before they even start to review them. Itâ€™s the market we are in now. Hopefully the banks will take this as a sign that they need to start to release more properties that they have in inventory and speed-up the process for some of those properties where the borrowers have stopped making payments.
I wish I could have you talk to all of the buyers who think this is a great market in which to make low-ball offers.
In my area, Fremont, I heard of a recent REO home selling with 41 offers! Do you think that the listing agent wasted time on the lower priced offers?
Perhaps the real need is for you and your agent to have a conversation about the condition of your local market and what it will take to be successful. Many buyers are finding frustration with the current market. One thing is guaranteedâ€¦if you give up you will not buy your new house.
Until that time, you may feel like everyone's passing you by. Put your trust in an experienced buyer's agent and they will help you navigate the market. And also trust that the right one will come to you. Good luck!
My opinion, if you wait for the market to "wind down" as you put it, you might just miss the "boat". The reason the market is "winding up" is that everyone realizes the low prices, low rates, and everything else that makes it a great time to buy. Don't give up NOW. Sounds like you have done lots of work to come to the decision to buy. It all boils down to your needs and wants. Do you want to be a homeowner???... this is an opportuity of a market, in a great little city...
Inventory is dropping across the Greater Sacramento area.
Spring always has more buyers in the market ready to move, get kids into new
schools over summer break, holidays are past, interest rates at all time lows,
and prices - Amazing!
In addition, we are also seeing buyers who lost their homes 3-4 years ago and are now ready and qualified
to purchase again.
Our market tends to have a very steady buyer pool each and every year.
Right now...Inventory is the issue. It is not uncommon to be 1 of 18 or more offers on a house.
What is important is knowing how to make your offer stand out.
Getting responses each and every time,
and of course - Getting the call/email -> Congratulating you that the offer is Accepted!
Keller Williams Realty
CA DRE 01872795
Another factor: So many of the December "listings" were not actually for sale even in December. About a third of them were called "active short contingent" (ASC) Despite the misleading first word in that phrase, they were not active.
Many ASC listings from December have now been correctly re-categorized as either sold, pending sale, or no longer on the market. There are still too many ASCs on the MLS though. Making an offer on an ASC guarantees you that your offer will not be accepted because those listings already have accepted offers!
I'm only going to comment on one key topic of your question.
What you are considering is called dual-agency and you should understand what you give up by doing so, which you can read about here:
The inventory has been dwindling for a few months now. It is the same in El Dorado Hills. There are many great answers here. Just a couple things I would ad. Some listing agents out there don't communicate very well. I try and call the agent before I write an offer for my buyers and get as much information as they will give but that is not always possible. And some of the REO agents get so many offers, we are lucky to get an email letting us know we didn't get it, let alone why ours wasn't good enough. Keep in mind that depending on your price range, there are many investors out there these days with the great prices we are seeing and many of them have cash. It is hard to compete with a cash offer no matter how much you offer. After a cash offer, it is the amount the seller will net that they are looking for.
Having your own representation though is really important. Once your agent knows you and your needs along with what you loan options are, the better they can help you.
Best of luck to you!
If you have signed an Exclusive Buyer Broker Agreement, then you need to cancel that arrangement
and identify an agent that will work for you.
Review your paperwork and give notice to your previous agent.
Have a great evening!
Keller Williams Realty
CA DRE 01872795
Please use your own agent. It is almost impossible to represent a seller, make sure they get an attractive offer, and at a price that will make them happy, when you also represent the buyer who wants to make sure they are getting the 'Best deal", best price, and not missing out on any reductions.
As a realtor, your role is to guide and provide information for the buyer or the seller to make the best decision. At some point, the data leans one way or the other.
Find someone who is looking out for you, your family, and eager to get offers placed and ACCEPTED.
There are many strategies that can be used to get your offer looked at - time and time again.
You should not be losing out, unless your current agent is not understanding the market or not able to convey
the current market conditions and pricing to you for each specific house. It does change by neighborhood and there are many factors to consider.
Please call/text/email when you have minute.
Happy to help you get the hosue of your dreams!
Keller Williams Realty
CA DRE 01872795
It is not usual for the listing agent to tell you why your offer was rejected. However, your agent may provide some insight if he/she has spoken with the listing agent. One offer may be accepted over another for a variety of reasons. As a listing agent, I look at price, interest rate, down payment, earnest money and so on.
The listing agent is going to advise there seller based on many things including, but not limited to the price of the offer.
The market in Folsom is extremely limited right now and good properties at attractive prices go fast..... let me put that another way....... FAST! Regardless of what the news media says about weak economy and falling prices, I have experienced (as have almost all of my colleagues - regardless of the company they work for) extremely strong buyer interest due to already low prices, limited inventory available and unbelievably low interest rates. Don't expect to buy anything in Folsom under asking price in the under $350,000 range.
This could change as we approach summer if the inventory swells significantly. Otherwise, be ready to move quickly and be aggressive. Be sure your buyer's agent is an energetic and nimble as you are.
Lyon Real Estate (916) 337-7160
If you have already made on offer on a home with your current agent, that agent is the agent of procuring cause on that home, even if you try to go around him to the listing agent.
You can go directly to the listing agent if you are just searching on the internet, or driving around and finding listings that you have not seen yet. That is your choice. The listing agent can then decide with his sellers permission if he wants to be a dual disclosed agent or not. Then he represents both the seller and you on his own listing.
It would be dishonest for a buyer to use a "buyer's agent" to find and show properties to him, and then cheat the buyers agent out of his chance to earn an income, bypassing the agent that did a lot of the upfront work for you is not good.
Maybe all of the houses you offered on were priced far less than what they were worth. This is known as auction pricing. It works like ebay without a 'buy it now price." The list price is simply the starting bid and people are expected to overbid the house up to or above its real market value.
If you don't want to get beat so much, start looking at houses that are realistically listed at their current market value or even overpriced houses. There will be less competition and you will not wind up paying too much because of a bidding war.
Explain to your agent that you are willing to pay full market value for a home and will look at correctly priced homes as well as the auction priced homes, and even overpriced homes (you can bid UNDER on those!). Unless there is something else you don't like about your agent, besides the idea that he discouraged you from getting caught up in an overbidding frenzy, and overpaying for a house, give him another chance.
There is a common belief that listing agents will only submit offers they've written, rather than those from other agents. This is unethical, and even illegal, and I can't imagine that it happens to the extent that many believe. If the agent is doing his duty in presenting all offers, it is up to the seller to choose the best one.
My advice would be to find a good agent who is knowledgeable about the market you wish to buy in, get educated about the market, and understand that highest offer isn't always best offer. Type of financing, seller concessions, contingencies, escrow period and other factors can come into play.
For example, a $300,000 offer using FHA financing, requesting 3% back for closing costs and a 40 day escrow may not be as attractive as a $290,000 cash offer with no appraisal and a 15 day close.
If you are shopping for a home in Folsom, know that inventory is at the lowest level since 2004. There is lots of competition out there. I listed a property for sale late Saturday night and had 18 showings and an offer by Monday.
Anyway, best of luck to you, and if you do not have an agent, I'd be happy to help you.
I might also ad that just because your offers may not be accepted, does not necessarily mean itâ€™s a fault of the agent. The market is competitive -- it could be a case of multiple offers, or even the terms to which you are presenting. Bottom line is, you need to contract with someone who is working FOR YOU; they should be knowledgeable of the market/area, as well as an excellent negotiator.
Q What is the "Buyer Broker Agreement -- Non-Exclusive/Not for Compensation" (Form BRNN) and what does it do?
A The Buyer Broker Agreement (Non-Exclusive/Not for Compensation) (Form BRNN) is an agreement between a potential buyer of real property and a real estate broker. The agreement has three key features. First, it defines the scope of the tasks and duties to be performed by buyer and broker. Second, it provides a written consent to a dual agency if one develops. Third, it places a limit on the time within which a legal action can be brought against the broker. This form is non-exclusive and may be revoked at any time by either buyer or broker.
I hope that helps!
The BEST option to take is to select an agent that you like, and sign a repressentation agreement with that agent to make them your exclusive representative in the transaction so that their duty and loyalty are dedicated to only you (as required by his/her code of ethics and state specific statues).
The wording of your question is a bit confusing. "...offered many home at or above listing price...." . I'm assuming you meant to say that you have submitted offers "at or above listing price". How did you submit the offer? Did you use your state approved form? Do you have representation?
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