Home Buying in San Diego>Question Details

Nancy, Home Buyer in San Diego, CA

my agent refuses to show me short sale homes, is there a reason why?

Asked by Nancy, San Diego, CA Mon Aug 4, 2008

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Jim, I feel like I learned a lot reading your answer.

Let me ask you this, based on the notion that banks want to delay the write-down of non-performing assets: is there any reason to try to "time" the market?

What I'm thinking is that banks will prefer to write down assets at the beginning of a quarter (Oct 1) vs the last day of a previous quarter (Sep 30) in the hopes that the rest of their business will somehow offset the loss.

IF that's true, then it could be short sales will be easier to close (and at a better (buyer) price) than at quarter's end... any sense to that?
2 votes Thank Flag Link Mon Aug 11, 2008
One can always just say "NO" to the buyer who wishes to pursue "Short-Sales". Hopefully in your initial interview with the buyer you can query them as to their wants and desires. If they only wish to pursue a "Short-Sales" and you feel this is NOT were YOU want to go with your business then kindly show them the door. We are under NO standard of care to work with every buyer who comes down the pike. Problem is, most Realtor/Agents are so hungry nowadays they allow their business to be directed by others.
I had a web site http://,www.SonomaCountyShortSales, but let it lapse as I really don't want to head down that road. Think about it--you get to put your sign on a property for 3-9 months with NO "SOLD" on it. Thereby telling the entire neighborhood--"Hey, Look at me! I can't sell this! Boy, am I a crappy Agent!" No thanks!
2 votes Thank Flag Link Sun Aug 10, 2008
Jay wrote : "Think about it, you have underpaid , under trained people who get piles of files every day and they sole task is to get files from the floor to ceiling stack of pending decision to the 6” high stack of approved. "

Very good point, Jay
The assset mismanagers HR websites offer clerk obs paying from a low of $10 per hour (in low cost areas like Plano, Texas to high of about $20 per hour in Irvine, CA. to {not} process these files. They move floor to ceiling stacks ( 8 vertical feet of files? ) to 6 inch piles that are presented to a supervisor whose main function is to identify if all the required documentation is in the file, not whether the deal is making sense, or saving the bank money. Meanwhile 7 and half feet of files are delayed and delayed and delayed.

James Baxter. You are right, Tman was wrong. Short sales are not almost new. . Short sales were around in 1985 when I got my license. When I switched from lending to home sales in 1994 my first closed escrow was a successful short sale in 17 days from offer to close.

Jay wrote: "I think most people don’t realize how bad a foreclosure is for a bank."

I write: "So what?" Just because something is bad for you doesn't mean you don't go ahead and do it.

Smoking is bad for people yet they do it, despite better alternatives. Banks have alternatives to foreclosing. They can modify, they can structure workouts, forbearance, and yes short sales. - Just as a smoker can try nicotine patches and gum, But the banks are foreclosure junkies and will continue to do what is bad for them, bad for their balance sheets, customers, investors, employees, communities and the country.

The "people" who don't understand just how bad foreclosures are for the banks are the CEO's and top mismanagement echelons of the banks.
2 votes Thank Flag Link Sun Aug 10, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
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Jay - We are Not lazy, we are smart and we are acting as fiduciaries for our buyers. If a house is actually a better deal than a competing REO, probate, or what was formerly a "normal" seller I will include Shorts in tours after warning the buyer of the many reasons that short sales suck.

In Sacramento, they are rarely any lower than comparable REO's in price unless the list agent has priced them below the banks acceptance threshhold. That is their business decision to do that.

Jay is complaining that we buyers agents don't take perfectly good buyers who are capapble of purchasing a home in the very near future and putting them on a treadmill for an unlikely jackpot of "winning" a home that is no more of a prize than the many saleable homes in the bloated REO inventory. Saying that they DO close is a bunch of tripe, even if there is a tiny kernel of truth in the statement. People DO win the lottery. People DO make money in Ponzi schemes, and short sales DO close.

Further truth dissection: Banks DO NOT want foreclosures.... I will grant that....however they don't want to complete short sales either. Either results in having to wirte down losses. If the short sale can be delayed and delayed and delayed, then the non-perfomring loan does not have to written off in full yet.
Besides the loss mitigation department vice president is trying to make his departments numbers look good. He or she is less concerned about the foreclosure department vice ;presidents numbers, Not the same department, not the same building, not the same city.

In addition to Bank perfidy in the short sale circus. There are a number of borrowers who are using the facade of a short sale listing to stay in the home a little bit longer than they might get otherwise.
Most Short sale listings are a hoodwink on the buying public, even when the seller, the agent and the bank clerk are sincere. The bank management is not sincere.
2 votes Thank Flag Link Sun Aug 10, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
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Jay's answer of "Lazy" to describe a Realtor/Agent who does not wish to show you short-sales misses the point. Any Realtor working in THIS market is hardly lazy as we are all working many more hours to meet the demanding nature of new lending requirements, higher interest rates and the frenzy which is the REO market. Any Realtor who has been representing a first timer homebuyer seeking maximum "Down Payment Assistance" while offering on an REO with 15 offers already KNOWS frustration and is hardly lazy (especially after presenting the 10th straight offer while getting beat out once again!!).
I agree somewhat with Jay when it comes to looking at Short-Sales as they are NOT getting the crazy action as REO's. And there IS a reason for this as I described in my previous post on this subject. But Jay's insistence that the lenders don't want foreclosures and will try and do anything to avoid these does not bear up under scrutiny. In my area REO's make up 42% of ALL of our sales. REO's are properties which have been foreclosed upon (I personally am working with 40+ REO's in various states of readiness). There are those Realtor/Agents who tout themselves as "Short-Sale" experts or "Work-Out Artists" and the more power to them. Also, some national companies are getting play by delivering quicker answers for buyers/sellers and charging agents a referral fee upon close. I've heard good results on these coompanies. This MIGHT be a good play and should be considered though I would NOT hold my breath in waiting for a response. Pull up "REO properties" on google in the San Diego area and see what you find.
The new Emergency Housing bill offers some relief to the homeowner facing foreclosure and who might be seeking a "Short-Sale". It is a "Short-Sale" in place but the interest rate is 8%, you share 50% of any equity gain during the life of the loan but you can hopefully keep your home. And the big plus is that the lender doing the short-sale gets protection from being sued. This is a biggie. But we'll see if this gets any traction. The 8% (1.5% added to the current rate of 6.5% as a premium) might be a killer.
You pays your money--you takes your choice!
2 votes Thank Flag Link Sat Aug 9, 2008
Nancy,
Seems like you have a very smart agent! In our Count of Sonoma only 1 in 10 short-sales actually CLOSE escrow. We have over a 10 month supply versus 2.5 months supply of REO or Bank Owned properties. I really don't see the advantages of getting into the tangled web of a short-sale. I don't see any big discount given versus a REO or regular sale. However, if you really want to get into the frustration of short-sales change agents.
2 votes Thank Flag Link Tue Aug 5, 2008
I will tell you why I don't readily show short sale homes to some of my clients: Short Sales are not right for my clients.

Huh?

I didn't say all my clients or even some of my clients. What i really mean is that it's a case-by-case scenario for each client.

The reason why I don't show short sales to a select clients is because they tell me that they HAVE-TO be in a property outside the normal time-frame of a short sale process.

For example, I had a Marine Officer and his family tell me that they had to be a home before September 1st so their daughter could start school on time, but we began our search in August. There is no way you can coordinate a buyer transaction AND navigate a short sale all within 30 days. So, I told them that short sales will not be part of our normal tour and of course they agreed. They agreed to this setup because of their September 1st deadline.

So bottom line, not showing short sales is a case-by-case scenario and more than likely, there is a good reason for it. If your realtor doesn't have a good reason or tells you that they are a headache, or they are just plain lazy, it may be time to re-evaluate your business relationship with your current so-so agent.
1 vote Thank Flag Link Fri Nov 21, 2008
Geoff wrote: "Jim, I feel like I learned a lot reading your answer. "

Thank you very much Geoff, I like to make people feel that way.

You posited an interesting possibility for a temporary change in bank behavior timed to quarterly reporting. I applaud your creativite thinking. Since the impetus has to come from seniior bank mismanagement, anything is possible I guess. I would not bet on it though.
1 vote Thank Flag Link Mon Aug 11, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
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Daniel, it's been that for some time. Some of the other smaller players are still giving the listing side 1 to 2% with the Selling agent getting 2.5,.75% (as we know all fees are negotiable between parties to the transaction). However, the smart ones know that the sheer amount of them, increased competition from the other big boys liquidating dead assets, is making them seek a better marketing standpoint by offering an "eye-catching" brokerage fee! However, they also get to call all the shot! We find our contract laws,disclosures being totally rewritin by the assett managers. The real estate landscape in certain areas of California resembles the gunfight at O.K. Corral!! And we ain't the Earps!!
A friend at one of the very large International brokerages states their "suits" are saying expect this market to be with us for another 30 months. They also predict the REO market going "upscale" as those with the longer financial legs run out of funds, drain credit lines dry, and see their home values seek bottom at that price segment. They will have no where else to turn! The conforming loan limits and emergency housing bills won't come to their aid. You now know the reason they made the emergency debt forgiveness up to $2,000,000!!! "Check the re-set waves coming down the stream--it's like the second wave of aTsunami!
1 vote Thank Flag Link Mon Aug 11, 2008
Danie,
Are you a "Buyer & Seller" talking as a "real estate pro"?!! You'd be wrong on both counts. Countrywide is very generous with their REO commission structure with everyone of my listings offering a 3.5% to the Selling office!! (as we know all commissions are negotiable between parties!)and MORE in some cases.
However, in Short-Sales you are totally at the whim of the "3rd party approval" to grant a brokerage fee. This is why in most MLS the commission structure simply states, "All commissions on this sale shall be split 50/50 between listing/selling agents". I've seen many an "approved" short-sale state the same sentence regarding commissions. You just NEVER know. Many lenders are paying a "net commission" based on the price after all "credit-backs" for closing costs.
But I do agree with your final sentence--it's all a business decision which we can elect to choose or not.
What I found absolutely hilarious was the gentleman who wanted to know if he should "time the market" when buying short-sales. HELLO!! This IS THE TIME!! But interesting insight regarding the end of the quarter. Problem is you can't really track this as these properties could have been a "Continue to Show" forever before approval!
1 vote Thank Flag Link Mon Aug 11, 2008
Nancy,

Many enlightened agents are doing the same thing......most of these agents have been burned because they spent countless hours, personal funds, nurtured good customers, and experienced heartbreak when the deal fell apart for some, they got little to no commission, and their customers felt exploited.

It doesn't take many of these experiences to get the picture.....we hope you do.

Avoid short sales......lean toward foreclosures.....don't overlook regular sales

Good luck,

The "Eckler Team"
1 vote Thank Flag Link Mon Aug 11, 2008
Geoff has an interesting thought there. I never really thought of it like that but it does make "cents"
What I have run into is the bank you are dealing with is what makes or breaks the deal -
some banks deal and some just plan don't.

Banks look at REO's as liabilities not an asset. In reality they cost the bank money. I think the major problem with short sales and REO's is that the loss mit reps are not fully trained and are underpaid on dealing with short sales. You got some poor guy or gal that does not fully understand what they are dealing with and at the end of the day it does not matter to them if the house gets foreclosed on or they work out a short sale.
(I would think it is easier for them to just let it foreclose). Just looking at the volume of short sales on the MLS
I would not want to be a loss mitigation rep at this time.

I think the banks know exactly how bad a foreclosure is for them, I think it is the hired help that does not fully understand the severity of the matter. (that does bring you back to the management for not doing their job to educate the help.)

again I go back to just the number of short sales on the market right now.
it is nuts. In San Diego North County in some zip codes that is all that is out there.
I have one short sale I am working on and I have just been assigned my 3rd loss mitigation rep in 30days
(they keep quitting)

Make sure your agent knows how to deal with short sales.
Web Reference: http://www.rescg.com
1 vote Thank Flag Link Mon Aug 11, 2008
Over all the info in this forum is correct. - both sides.
It is just different perspectives on the same issue.
I have been working with short sales since 2005 they are nothing new. It is just that the real estate market has not seen them since the early 90's so a lot of real estate people have not seen them unless they have been in the business for a while. When the market is going up why would a bank discount a loan? They only really come around when the market is going down. At least that is with short sales as we know them.
People buying and selling loans at a discount has always been going on, no matter what the market is doing.
However that is a totally different subject.

Are there deals out there to be found? yes, there are always deals to be found you just need to know where to look.
The major problem with a short sale is the time they take. I have seen deals where they were 7 months into a short sale and thinking it was going to close by the weeks end - only to find out that the bank foreclosed the day before.
There is no guarantee that the agents involved will get paid by the bank.
The banks will usually sell the property for a "fair market value" not really a deal but it is a fair price.

I tend to find that if you find a motivated home owner looking to sell you will find a better deal than a short sale. However those are few and far between.

if you want to see short sales your agent should be showing them to you.
you just need to remember just because it is a short sale on the market does not mean that it will sell at the list price or that it will sell at all. I have found a good deals of short sale tend to involve a divorce. One spouse wants to sell the other does not. The spouse that does not want to sell is usually the one living in the house. This makes the house hard to see and than when you have a spouse that does not want to sell it makes it that much harder for a short sale with the bank to go through.

good luck -
Web Reference: http://www.rescg.com
1 vote Thank Flag Link Sun Aug 10, 2008
Unless Nancy is tired of this. I (yes, a Marin Realtor, sorry) am all fine with your poking the nest.

I (at the risk of poking the nest especially since I am not from San Diego) think Short Sale process is probably all the same in different areas since they are handled by the same nantional / international lenders / negotiators / outsourced customer services (some are in India :-( ) that are both who knows whom and from who knows where.

But to confirm (not that you might care what I think, but I do want to clarify since I seemed to be waffling during the discussions), I am personally all for short sales and believe you can get great deal from that.

My personal satisfaction from my short sales is that I helped avoided a foreclosure for my seller and the eventual buyer who would not have been able to buy a house in Marin received a great deal. This is long for the seller (due to complicated reasons) and about three weeks for the first buyer who dropped out the day they received lender approval.

However, it was very short for the buyer who eventually bought the property (3 days wait for lender approval) and this is still the best deal in town for like properties; including REOs; two months after closing.

Sylvia
1 vote Thank Flag Link Sun Aug 10, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
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I’ll continue to poke a stick in the bee’s nest

First of al the original question came from a buyer in San Diego, not Roseville, or Marin, Or Vero Beach or 85260 (wherever that is?) or anywhere else. Every market is different to some extent, even within a market, it can be a little different from area to area. I certainly would not say how things are in a market I did not really know

Secondly, I am not saying a specific agent or even every agent is lazy, but there are some that simply are looking for the path of least resistance and don’t want to get into a short sale deal because they have to work harder and it takes longer to get paid. I am sure you all even know of agents that look at the commission paid on a deal and then steer their clients to the property that they make more money on. Again, no one specific or on this case even most agents. Most agents are honest, ethical, hardworking professionals

I am just really tired of hearing agents saying how REO’s are the way to go to get a great deal and even on the local news here there was a Broker who flat out said stay away from short sales. Guess what if everyone stays away from short sales, a few things happen. 1) they don’t get sold. 2) We get more REO’s. 3) banks get even worse in closing short sales.

I think most people don’t realize how bad a foreclosure is for a bank. Having too many non-performing asserts compared to performing assets impacts a banks ability and cost to borrow money and they need to borrow money to lend it. Banks are not in the real estate business and do not want to be.

Sure the banks are slow with dealing with short sales. Part of the problem is agents not knowing how to manage and submit the deal to get an approval. Part of the problem is buyers thinking that no matter what a property is listed at, they can buy it at a huge discount from that price. Some (and certainly not all) agents don’t educate their buyer with what the fair market value of a property is and that the listed price often (not always) is a realistic indication of the property value. Everyone thinks that the news is 100% correct and values are falling at a double digit rate every month everywhere. When you get a buyer offering to by at 70% or less of market value and it gets turned down, it’s the banks fault , right? When the file gets submitted without pay stubs, bank statements and a financial statement and that delays getting the deal approved, it’s the bank’s fault, right?

Banks will do almost anything not to foreclose, as long as it is reasonable. Sure they want to get the highest return, but they also track how many potential deals go into foreclosure too. Think about it, you have underpaid , under trained people who get piles of files every day and they sole task is to get files from the floor to ceiling stack of pending decision to the 6” high stack of approved. They like it when they can get a deal done.

Not every buyer is on short a time frame that they have to get a deal closed in 30-45 days. Many have a much longer available timeframe and will wait out the short sale process.
1 vote Thank Flag Link Sun Aug 10, 2008
I agree with you Jon, about the fact that if Nancy specifically wants to see short sales, then her agent should not refuse, and if he refuses, then Nancy should discuss this with the agent and perhaps choose a different agent who is willing to work with her on her terms - Nancy is who the agent works for, not the other way around.

However, the question is 'Is there a Reason Why', and that's why the discussion goes back and forth. I personally can see two sides and would like to explain from both ends.

The more educated Nancy is, the better she is able to decide whether she wants to continue pursue short sale or not, which seems to be part of her problem.

I also have a question about the fact that her agent is not communicating with Nancy on why he would not show her Short Sales - at least from reading her question.

Sylvia
1 vote Thank Flag Link Sun Aug 10, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
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Whether a short sale is a good deal or not is ancillary to the main question here ... a client has given her agent specific instructions (to show short sales) and the agent's apparently refusing to do so.

There's a difference between educating clients about the short sale process and outright refusing to show them any even after they've specifically said they want to see them.
1 vote Thank Flag Link Sun Aug 10, 2008
Jay:

I have to agree with Jim and Mike - they have very different experience and philosophy, but they sure are not lazy Realtors. .

It is a lot of hard work - It took me 8 months to close my latest one with 2 failed escrow before that, was in line to be auctioned twice but sure feels great when it closed.

But I do show my client short sale properties as long as they can wait, and are fully aware of the short sale complications. They will have to weight a short sale against all others on the market and decide which one to buy.

However, to be fair, there is a lot less short sales / REOs in Marin than Santa Rosa and Sacramento so it's easier.

Sylvia
1 vote Thank Flag Link Sun Aug 10, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
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So Jim:

How familiar are you with REOs in Sacramento?

My brother-in-law in AK is looking for positive cash flow rental properties and talking about Sacramento - he lived in S.F. for quite some time and still owns a home in Richmond District here so he is very familiar with the Bay Area.

Got any in a great location, easy to rent and generates positive cash flow?

Sylvia
1 vote Thank Flag Link Sun Aug 10, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
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They don't close very often.
Web Reference: http://GetPrequalified.com
1 vote Thank Flag Link Sat Aug 9, 2008
it's a 4 letter word





LAZY
1 vote Thank Flag Link Sat Aug 9, 2008
You know, it really bothers me that agents are so big on bashing short sales. They DO close and yes, it can be a long frustrating process. More often than not, they are a better deal for the buyer than a REO. First of all, usually there are not bunches of competing offers and the buyer can get a better price. With REO, it is more common to have many offers come in and then it becomes a bidding war, with the final price over the listing price.

If more agents took a more positive view, probably more short sales would close and close faster. The banks DO NOT want to foreclose and will do what they can to close a short sale. Part of the problem are the bottom feeder buyer that think that they can buy a property for 70% or less of fair market value. It’s not reality plain and simple and agents need to do a better job of educating their clients.

You need to let your clients know what is reality and they should not have unrealistic expectations. Like MaryAnn, I make a point to inform my clients of what to expect.

Lastly agents should be willing to do what ever is needed to best serve their clients needs and of that means it takes longer before they get paid, so be it. You can’t just do deals that close in 30 days..

Of course there are many very good agents that do whatever is needed for the good of their client.

Jay Gedanken
Broker Associate
PineappleHut Realty
858-605-5839
1 vote Thank Flag Link Sat Aug 9, 2008
Hi Nancy,

To keep it brief, here are the basics:

1. When you make an offer, there will be multiple offers.
2. The buyer with the bestprice and tems usually is awarded the sale.
3. It can take 3 to 8 months to find out the out the result of #2 above.
4. You purchase the property "as is".
A. The lender will make no repairs
B. Given the lender never lived in the property, the condition is yours to deal with.
5. We imagine that your agent wants to save you time, stress and possible head aches down the road.

Ask them their opinion on the matter.

Best of luck,

Mark & Kari Shea
1 vote Thank Flag Link Tue Aug 5, 2008
There are many reasons why an agent may not show you short sale properties. With my clients, once we've discussed the issues surrounding short sales, I'll only show them if they specifically say that's still a course they wish to pursue. At the end of the day, the decision is theirs and not mine.

It's supposed to be a partnership. If you absolutely want short sales, your agent should be showing those properties to you. If they're not, then you ought to find an agent who is showing you what you wish.
1 vote Thank Flag Link Mon Aug 4, 2008
Other reasons some Realtors would prefer to not work with short sale properties are that the purchase of these homes can be full of surprises such as undisclosed property conditions that may require costly repairs (some are a direct cause of homes abandoned without utilities), liens on the property that the mortgage lender may dump onto the buyer to pay, and these problems are not discovered until you are contacted typically 60 to 90 days after you submitted your offer. You may or may not wish to buy the property after inspections and title searches are completed. In the meantime, you may have missed out on other properties that were equally good buys. Just because someone owes more money than the current market value is only a result of when they purchased or whether they borrowed equity after several years of owning the property. If another owner did not borrow 90 to 100% and bought several years ago, the selling price might actually be a "better buy" without the concurrent pitfalls of short sales.

Short sales can be frustrating, but we have handled several for sellers and for buyers that have had good results despite the hurdles.

Quite honestly, after all the extra work, short sales also usually result in some of the lowest commission compensations for Realtors. Just an extra reason some Realtors will avoid them. Good luck.
1 vote Thank Flag Link Mon Aug 4, 2008
Sorry I haven't read all 47 answers. If your agent doesn't do shortsales and you want to look at shortsales find another agent. Don't pick the first agent that comes along, it is a challenge to do shortsales. You need a good buyers agent but it is even more important that the sellers agent knows what they are doing.
On the other hand don't exclude non-shortsales because there might be a good investment you are passing over. Buy a home based on the market value not the perceived value of a deal. Yes, There is a difference.
0 votes Thank Flag Link Sat Nov 22, 2008
They are probably not well versed in short sales. Find yourself a short sale expert to help you. There arre alot of great deals in the San Diego Short Sale market. You just need an agent to show you the right ones.
0 votes Thank Flag Link Sat Sep 6, 2008
Protect your client? Oh come on !! All your protecting is a faster commission.

Do short sales take longer, yes, usually they do, but they also in many cases are a much better value for the buiyer than a REO.

I don't know what the matrket is in Prairie Village, but here in San Diego, but to find "a house in good condition at fair market value or below that needs little work done to it and has sellers that will be reasonable and conscientious to work with." is few and far between.
0 votes Thank Flag Link Thu Aug 28, 2008
I like Kimberly's style--" I want you in escrow in two weeks-NOW GO!! Yes, oh wise dominatrix!! Whip me, beat me, make me write bad checks!! And she's good lookin' to boot!!
0 votes Thank Flag Link Thu Aug 28, 2008
Well, many consumers think they are going to get a bargain buying a short sale home and that is usually not true. The home is rarely worth what the seller needs out of it; the bank rarely wants to settle for the home's fair market value and the bank will cause everyone to wait an interminable amount of time while they make a decision. The bank will also have difficulty commiting to a contract. They will want you to commit and wait; they are not required to follow the laws, rules and guidelines that the rest of us abide by. They are only required not to break some federal laws.
If you want to get a good buy, your agent can find you a house in good condition at fair market value or below that needs little work done to it and has sellers that will be reasonable and conscientious to work with.
0 votes Thank Flag Link Thu Aug 28, 2008
Dear Nancy,
There are a lot of good answers here, but let me add one more: avoid short sales like the plague, the bird flu, pizza with onions and people who call you M'aam.

The reason your agent is shying away from them may be to protect you. You can write an offer, jump through ridiculous hoops put there by silly short sale agents who suddenly feel like Gods, and then wait up to 60 days, only to have the bank decide to proceed ahead with foreclosure because they can get a higher price if they own it themselves. I do about 100 BPOs a month for banks in this very situation, and if they get a nice BPO, they decide to keep the property and sell it as a foreclosure. I know what I am talking about. And in this case you'd be out and would have wasted so much time.

I don't avoid them for some worry about commission reduction. I am not motivated by the percentage of commission I get. I am motivated by the number of superb, quality deals I close in one year. These are not superb deals on any level. If you have several days, I can give you excrutiating details.

Keep your sanity and first try to find something not bank owned. They are out there. Those sellers are people too darn it! They need buyers like you. Then consider bank owned. Then avoid short sales like...oh, you already heard all the likes.

Don't waste your time in 2008 chasing deals that don't amount to anything for YOU! Get a house or condo while you can while interest rates are under 7%. I want you in escrow in two weeks, now go!
0 votes Thank Flag Link Thu Aug 28, 2008
is this 3.5 before or after bank of america took over?
0 votes Thank Flag Link Mon Aug 11, 2008
countrywide only pays 1.9% total commission, who wants to work for less than 1%

you have a choice, pay a professional a professional fee or do it on you own, its really that simple
0 votes Thank Flag Link Mon Aug 11, 2008
Excellent post Jay Gedanken,


You said more in 1 paragraph then the last 28 answers:

--- Part of the problem is agents not knowing how to manage and submit the deal to get an approval.

--- Part of the problem is buyers thinking that no matter what a property is listed at, they can buy it at a huge discount from that price.

--- Some (and certainly not all) agents don’t educate their buyer with what the fair market value of a property is and that the listed price often (not always) is a realistic indication of the property value.

--- Everyone thinks that the news is 100% correct and values are falling at a double digit rate every month everywhere. When you get a buyer offering to by at 70% or less of market value and it gets turned down, it’s the banks fault , right?



-
0 votes Thank Flag Link Sun Aug 10, 2008
Sylvia is spot on in that the process is the same no matter where you are. I was only saying that the market for short sales vs REOs differs from market to market

I know that there are lots of agents that will and do show and SELL short sales, as it is our job and responsibility to our buyers to make them aware of all properties that might meet their needs. If they say I don't want to even look at a short sale, so be it.

I am all for getting paid quickly as the next person, but I just don't put that ahead of doing what is best for my client

The more agents that act like Sylvia, the better it is for all
0 votes Thank Flag Link Sun Aug 10, 2008
One other thing people seem to overlook is the short sales which are in negotiation but fell out of escrow due to various reason - buyers not wanting to wait, credit negotiation fell through, can't get loan, etc.

These are the ones that's good to look at also - a negotiator is probably already assigend and a price might even has been approved by the lenders and they just need a new buyer to fill in. The process could be much shorter.

Sylvia
0 votes Thank Flag Link Sun Aug 10, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
Contact
The first coment made about short sales being 'almost new' is a valid point. Many realtors aren't familiiar with the process. This can contribute to problems experienced. One mistake is that buyers think any low-ball offers will be accepted. Even though the banks are doing a short sale, they are still trying to recoup as much as possible. So they really would like to get at least 90% of the loan amount, if possible. If the house doesn't sell at that point, the price will eventually be droppe until it does sell. This is one reason the process takes so long. For other issues that may come up, feel free to contact me. I'll be happy to put you in contact with a realtor who specializes in short sales in your area.
0 votes Thank Flag Link Sun Aug 10, 2008
Thanks, Jay -

Like one of my clients said to me just the other day when I mentioned short sales are harder to sell -

He said: 'Why? You just have to wait a bit longer, and you get such a great deal".

My client is a seasoned real estate investor and has been out looking for the next home.

Truth be told, I have paid close attention to REOs, some are in such horrible condition - seems to me the agents decided it's REO they don't have to do anything to show other than throw away the junks - and priced even higher than short sales. You wonder why they want to wait for REO to come on the market while they can get a GREAT deal in short sale!

Sylvia
0 votes Thank Flag Link Sat Aug 9, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
Contact
Short sales are long, difficult and frustrating deals. While some do go thru the process and close the sale, that is not the standard. The problem with short sales if that the buyer must be in a postion to be able to wait, and wait, and wait to see if the deal is approved. Tehn you need to wait and wait and wait for the deal to close escrow. You are looking at months of down time. Your agent, I'm sure knows this, and is trying to avoid a bad scenario for you. If you are interested in a good value in todays market, and you want to focus on distressed properties, REO's are the properties you would be best advised to look at. However, having said all this in support of your agent, y ou are the boss, and if you want to see short sales you should make your position clear to your agent. If you do not agree on strategies, sever the agency relationship. Good Luck.
0 votes Thank Flag Link Sat Aug 9, 2008
Hi Nancy,

I understand that your realtor is fustrated with short sales,but it is not our decision as your realtor to decide what you can and cannot buy. I will show my clients everything and educate them on a short sale, REO, and foreclosed home. When educating I explain the pluses and minuses of dealing with all these different sellers.

At no time should a realtor limit what you see to make a sound decision on what to buy in the area you like.
If you have any questions about foreclosures, please feel free to visit my website I have lots of articles I helping buyers better understand this market.

Good Luck! Catherine Barden, Realtor
0 votes Thank Flag Link Tue Aug 5, 2008
Nancy,
Your Realtor should be working for you and doing the things you want done. If they won't show you or make offers on short sales, ask why. Since they can take a long period of time to close and are difficult to buy, you Realtor may be reluctant to show you them. You deserve a reason for their reluctance and if their reason is not satisfactory, consider getting a new Realtor. You mentioned agent. Is your agent a Realtor? If not, that could make a difference, since there is a code of conduct and professionalism that Realtors are supposed to adhere to.
0 votes Thank Flag Link Mon Aug 4, 2008
Hi Nancy:

I agree with the others. I have heard other agents who said they will not work on short sales because it is a lot of work with no guarantee of getting the house - other buyers can come in and bump you, the lenders can not agree to sell, the time it takes to hear an answer can seem like forever and then the house gets foreclosed on, etc, etc.

However, I personally think that other agents who refuse to show short sales are the blessings for my buyers - we can be the only one who brings in an offer without other competition - as long as my clients are fully aware of the potential long wait and possible disappointment, I am all for going after short sales.

Often times, an REO may or may not be priced lower than short sale, so I am happy to show short sales to my clients.

If you are interested in some short sale properties, ask the agent to show them to you. Tell him that if he prefers not to show those to you, then you will have to find somebody else who's willing to, then see what happens.

Don't get discouraged because you might have a few failed offers before you get the house.

Sylvia
0 votes Thank Flag Link Mon Aug 4, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
Contact
Nancy,

One of the reasons could be they don’t know how to deal with them and are looking to get a quicker sale. Short sales can be very frustrating for the buyer for a lot of reasons. One of them is the emotional investment. You fall in love with a home, make an offer, the seller accepts subject to the lender approval and then you are in a waiting game.

Often many agents underestimate the time it will take to get an accepted deal from the bank. It can take 8-12 weeks or more sometimes or it can be faster too. Somewhat it depends on how well the listing agent does their job. You need to constantly call the bank and keep after them and not be afraid to kick it up the ladder to management. The squeaky wheel does get the grease.

Short sales can often be much better deals for a buyer. You are able to buy a home below fair market value and you get full disclosure (if it is owner occupied). I always show my clients short sales, and advise them if what to expect. It can take longer to close and get paid, but my job as a buyers agent is to look out for the best interests of my client, not look for a fast buck.

If you are unhappy with your agent and they are not serving your needs, you may want to consider finding a new one

Jay Gedanken
Broker Associate
PineappleHut Realty
858-605-5839
jay@pineappleHut.com
0 votes Thank Flag Link Mon Aug 4, 2008
Hello Nancy. I cannot speak for your agent, but the two main reasons why I can imagine why your agent does not want to show you short sales is because they take a very long time and they are not necessarily good deals. I would recommend to you that you ask your agent for an explanation. As an agent representing a buyer I would not necessarily rule out short sales altogether, but I would explain the pitfalls of short sales to my client. I am not familiar with the San Diego market and therefore I can't comment whether categorically avoiding short sales in a wise thing to do or not. In my market, it's almost impossible to avoid them altogether because there are so many. As long as my buyer understands that there's no guarantee that the bank(s) will approve the offer and that it can take a long time to receive an answer from the bank, I am up for the challenge. It's my experience that buyers get impatient even if you try to prepare them for what's involved in a short sale. Unless you have gone through a short sale, it's hard to imagine what it will be like. Perhaps you need to let your agent know that you'd be willing to wait for the lender's decision if it were the right house. Good luck to you.
Web Reference: http://www.theMLShub.com
0 votes Thank Flag Link Mon Aug 4, 2008
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Short sales are generally a pain to buyers and their agents because the lenders are slow to respond. If there are multiple lenders involved - say a 1st and 2nd - then there are more people to coordinate. I have been waiting on a lender response for about 7-weeks now. It would be very easy for my buyer to decide to do something different - then we'd be back at square 1 and I risk losing my buyer.

That being said, you should demand your agent show you short sales because that is where you are likely to find better opportunities. It is your money that you are spending - you are the client.

Robert T. Boyer, Ph.D.
Real Estate Investor Advisor
0 votes Thank Flag Link Mon Aug 4, 2008
Nancy,

The "short sale" market is almost new, most agents have little experience with it ... and what little experience they have with it is usually not good experience because of the lenders ... some of these sales can take 6 months ...


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0 votes Thank Flag Link Mon Aug 4, 2008
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