Home Buying in 95630>Question Details

Rocky, Home Buyer in 95630

can i use listing agent to buy a home..offered many home at or above listing price but still not getting accepted.

Asked by Rocky, 95630 Thu Feb 23, 2012

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35
Of course rocky you can use a listing agent to buy a home, the question becomes do you want to?
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.
2 votes Thank Flag Link Mon Mar 5, 2012
Agents have a fiduciary duty to their clients, regardless of which side of the transaction they're working.. There are many variables in why your offers are not being accepted, many of which are listed below. I would suggest working with a reputable agent that you feel comfortable with and that you can monitor their due diligence. Make sure you have open communication with your representative so you fully understand the process. Best of luck!
1 vote Thank Flag Link Sun Mar 4, 2012
gr8 answers..the following factors do provide some clues
seasonality
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..
1 vote Thank Flag Link Fri Feb 24, 2012
Confusing market and obviously your question hit a chord with the realtors!

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.
Web Reference: http://www.suearcher.com
1 vote Thank Flag Link Fri Feb 24, 2012
Glad to hear about Wisconsin!
1 vote Thank Flag Link Thu Feb 23, 2012
I cannot speak for Folsom, but I can tell you that we are experiencing the same thing in Wisconsin!
1 vote Thank Flag Link Thu Feb 23, 2012
thanks for replies...so why is there a shortage of inventory in Folsom. there used to be so may homes listed last Dec. what happened in 2 months ? Is this a national trend ?
1 vote Thank Flag Link Thu Feb 23, 2012
Rocky,

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.
John
1 vote Thank Flag Link Thu Feb 23, 2012
Rocky, the listing agent is not obligated to tell you why your offer wasn't accepted, nor is the seller required to write a counter offer.

The seller can sell for as little or as much as they want.
1 vote Thank Flag Link Thu Feb 23, 2012
Stick with your agent that is representing YOU. It is not your agent's fault that your offers are not getting accepted. Reason... It is typical in this buyer's market, when the prices are depressed and the interest rates are great, that multiple offers on one property is the norm, especially in Folsom where it is so desirable to live.
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
1 vote Thank Flag Link Thu Feb 23, 2012
we have our agent, but the issue is the listing agents don't seems to clearly communicate why our offer is not accepted even though it is more than listing price. shouldn't they give a counter offer ?
1 vote Thank Flag Link Thu Feb 23, 2012
Yes, you can use the listing agent.

It's a sellers market in the good school neighborhoods. Inventory is low. Even if you offered at or above list price, you still might not be the highest offer.
0 votes Thank Flag Link Fri Mar 16, 2012
Without knowing anything about your agent I really can’t say that they are not doing a good job for you or not. I would NOT advise using the listing agent because you think that will give you an advantage. In my opinion it will give you many disadvantages. In fact, there are many banks that won’t allow an agent to represent both parties on their REO listings or short sales. If your agent is doing a good job stick with them; they are probably just as frustrated as you are.

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?

I’m not trying to insinuate that you shouldn’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 – before they even start to review them. It’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.
Web Reference: http://www.SacRELender.com
0 votes Thank Flag Link Wed Feb 29, 2012
Rocky,

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 guaranteed…if you give up you will not buy your new house.
0 votes Thank Flag Link Mon Feb 27, 2012
It won't ever 'wind down' as you put it. Rather, I give the analogy that it's like trying to enter a roller skating rink. At first, you're holding on to the side getting your balance while people speed past you. In the middle are the experts doing spins and some skating backwards. Once you get the rhythm of the market you will learn how to read the listings, make offers and be successful in competing on a home that meets your needs.

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!
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Fri Feb 24, 2012
Hi, Rocky, the reason that you are seeing some differences in the sites as far as listings, is that the trickle down method is not keeping up, it was explained to me by a broker, that as the listings are fed into the system, sometimes it gets clogged up like a busy freeway backing up.
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...
0 votes Thank Flag Link Fri Feb 24, 2012
Rocky,

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!

Michele Peterson
Keller Williams Realty
(916) 743-5934
CallMichelePeterson@gmail.com
CA DRE 01872795
0 votes Thank Flag Link Thu Feb 23, 2012
Yes it is a trend. The media will not report it until later in the spring after the new activity from January and February have closed and been reported as closed sales. But it has heated up considerably in Folsom.

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!
0 votes Thank Flag Link Thu Feb 23, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Rocky:

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:

http://www.trulia.com/voices/Home_Buying/Why_should_I_NOT_us…

-Steve
0 votes Thank Flag Link Thu Feb 23, 2012
Hi Rocky,
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!

DeeDee
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky, the market is changing due to great interest rates, buyers that lost their homes are back in the market, economy is getting better...the market is turning and it's starting in the nicest places to live. I am a great buyer's agent if you need one;0)
0 votes Thank Flag Link Thu Feb 23, 2012
Hi Rocky!
It all comes down to service and trust factor. Your current agent should do
0 votes Thank Flag Link Thu Feb 23, 2012
John is correct below.

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!

Michele Peterson
Keller Williams Realty
(916)743-5934
CallMichelePeterson@gmail.com
CA DRE 01872795
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky,
Hello
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!

Michele Peterson
Keller Williams Realty
(916) 743-5934
CallMichelePeterson@gmail.com
CA DRE 01872795
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky, Give us some more details, if you are not getting proper representaion, then you should discuss this with your agent.
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky,

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.
0 votes Thank Flag Link Thu Feb 23, 2012
You may but it doesn't necessrily increase your chances of getting your offer accepted, unless the agent is less than ethical and is thinking more about his/her double commission than protecting your interestes as a buyer.

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.

John Cypher
Lyon Real Estate (916) 337-7160
01397566
0 votes Thank Flag Link Thu Feb 23, 2012
You are right , we don't know all the details, just what is written here, but we ARE Realtors(R). I was going on the fact that Rocky chose this agent for good reason. If Rocky wants to change agents, fine, my point was...he needs his own representation.
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky,

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.
0 votes Thank Flag Link Thu Feb 23, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Yes, you can use the listing agent if you choose, but that may not be in your best interest. If you are working with one agent who is representing you they are looking out for your best interests. Currently, the 95630 zip code has a shortage of "good" homes on the market so many buyers are competing for them. Ask some questions of your agent to see if they are experience in the type of sale (short sale, REO, equity) and how they feel they can best position your offer to be successful. Then, take your agents advice. Good luck!
0 votes Thank Flag Link Thu Feb 23, 2012
Hey Rocky, listing agents love it when they can write the offer for theiri own listing. Why wouldn't they? It is perfectly legal, and they get twice the commission. The fear is, with many folks, that the listing agent was first hired by the seller, who hopes to sell the house for the highest price he or she can. That can conflict with a buyer, who may not want to pay the highest price possible.

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.
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky: Yes, you may use any agent of your choice. Regardless of whom you chose, you should sign a Buyer Broker Agreement as described below. You want to make sure that you are exclusively represented as a buyer and in your best interest. Although you can go through a listing agent, there is a "dual agency" that is created meaning that the Listing Broker has an obligation to the seller, as well as to you, the buyer. Many buyers and sellers may not be comfortable with this. It can be done, but there are very strict rules associated with doing so.

I might also ad that just because your offers may not be accepted, does not necessarily mean it’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!
0 votes Thank Flag Link Thu Feb 23, 2012
You can. I believe you have better negotiating with your own Realtor. Hopefully, your Realtor is submitting a complete offer with copy of a deposit check, proof of funds, loan approval letter, etc. Additionally, not asking for closing costs often will help, if you offer higher price than a house will appraise that is not going to always win if you are competing with offers that are not asking for thousands in closing costs....not sure of your situation. If you require closing costs, you might try to ask for 2% or less, if possible.
0 votes Thank Flag Link Thu Feb 23, 2012
Yes, you may use any licensee, but you need to be knowledgable about whose interests are being protected.

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).
0 votes Thank Flag Link Thu Feb 23, 2012
Rocky,

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?
A moment ago - Delete this answer
0 votes Thank Flag Link Thu Feb 23, 2012
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