Home Buying in Rocklin>Question Details

Peter Black, Home Buyer in Carmel, IN

I am moving to the Rocklin area in a couple of weeks and it looks like almost all of the listings are short

Asked by Peter Black, Carmel, IN Tue Feb 17, 2009

sales. Is there a buyer's agent out there who specializes in the Rocklin/Roseville area who is very experienced in short sales who would be willing to work hard on my behalf?

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Short sales take a lot of patience and a good agent who can let the buyer know what to expect during the process. The agent you decide to work with needs to know how to look at a short sale listing and analyze the probability of the sale actually being approved by the bank. Right now, you're looking at about 30% of short sales actually being approved, which isn't great odds. But your agent should know the right questions to ask the listing agent, make sure the listing price is a reasonable price (meaning that the banks will consider accepting it). Sometimes with a short sale, the listing agent isn't familiar with the process or how to analyze the seller's situation. So the buyer's agent really has to look out for the buyer, and help them determine if they want to spend the time on that particular property, and inform them of the pitfalls of a short sale. Another thing that I do with my buyers right now who are looking at short sales is to have them continue looking at properties while the bank considers whether they will accept the offer. You can even consider putting in multiple offers on different short sales, but first you need to make sure you are aware of the pros and cons of such a strategy. I specialize in the Rocklin/Roseville area, and would be excited to help you out. If you have any questions, please feel free to contact me. You can check out my website at http://www.rocklinrosevillehomes.com

Have a great day!
1 vote Thank Flag Link Tue Feb 17, 2009
Hi Peter,

You are absolutely right there are a lot of Short Sales in the Rocklin/Roseville area but like Robert said there is a lot of inventory on the market that is not a Short Sale. It all really just depends on what you are looking for. As I like to say there are different markets inside the main market. I work with the banks a lot doing what is called a BPO or a Broker Price Opinion. If you are not familiar with this it is almost like a cheap appraisal which the banks order to find out the value of the home. The majority of these that I receive are to get a short sales approved, I do over 150 of them a month. I feel that this really gives me an upper hand on the current market.


Tyson Scharf
Realty World
916-759-7490
DRE#: 01837372
0 votes Thank Flag Link Wed Feb 18, 2009
Hello Peter:
There is plenty of inventory that are not short sales. As of today there are 585 active listings in Roseville and Rocklin has 201 active listings. Finding an agent who has experience and expertise in short sales or bank owned properties if this is what you decide on would be very beneficial. I have a strict list of questions I ask a listing agent on a short sale to make sure my clients are not wasting their time. The banks are getting better at short sales but takes a team effort between Buying and Selling Agents. If I can be of service feel free to call at 916-204-7309 Robert Floodman, Realtor Coldwell Banker Residential Brokerage. Welcome in advance to our beautiful part of the country!
0 votes Thank Flag Link Wed Feb 18, 2009
Hello Peter. The truth is that all agents who are still in business work very hard these days and when it comes to short sales, the bulk of the work is done by the listing agents as they are the ones who have to deal with the lenders as the lenders can only communicate with the listing agent, not the buyer's agent (unless the buyer is also represented by the listing agent). The buyer's agent job is to write up good offers for the buyer and protect the buyer's interests in the process. You might wonder whether you should have your offer written up by the listing agent and I would caution you against that to avoid any potential conflict of interest. The listing agent's job is to represent the seller and in a short sale there is a lot at stake for the seller. As the buyer, you want someone who does not have to share loyalties with the seller.

There's a lot to say about short sales and I could write a book about it. I think as far as selecting an agent, you should interview a few agents to determine who is the best fit for you. Feel free to contact me with any questions you may have.

Best regards,
Ute Ferdig
Broker-Consultant
(916)751-1267
0 votes Thank Flag Link Wed Feb 18, 2009
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Hello Peter,

Crystal estimated that about 30% of short sale contracts eventually make it through to being approved.
The flip side of that math is that 70% of short sale contracts are rejected or just left unapproved until either the foreclosure occurs or the seller finds some other way out of the predicament. While a 30% success rate( a .300 batting average ) is good for a baseball hitter, it is not so good for an outfielder. (Imagine the outfielder not being able to hold on to two out of three fly balls hit into his glove.)

I know this is metaphor soup, but wasn't the field of dreams built in Indiana? Anyway, the fact that 7 out of ten short sale contracts fail is not the fault of buyers agents, or even the lisitng agents -

The high failure rate of short sale contracts is due to the procedures that the mortgage holders follow, the political and economic climate, internal bank, servicer, investor, and asset manager policies. NO Realtor will honestly claim that they can make short sales as easy as regular sales or even foreclosure sales.

There is a perception (which is generally untrue, on average) that short sales are better deals than regular purchases. One reason that the perception of an extreme bargain is mostly false is that the lender will insist that the sale price be very close to market value. If it is required that the price be close to market value, then how is that such a screaming bargain?

Oh, close enough could be 5% below market value, but even that difference may be offset by the fact the physical condition of many short sale properties is as bad as some that hae already been foreclosed upon.

Also, the terms: buyers closing costs, requests for repairs, transaction closing costs, are likely to be borne by the buyer, not the seller. - This chips away seriously at even a 5% discount.

Peter, working hard on your behalf, for me, means explaining to you, and concvincing you, why you should only consider looking at and offering on short sale listings only as a last resort, only after all other suitable properties have been considered.

Please link to my profile for contact information if you are interested. I have posted voluminously on the subject in the past on Trulia.

I will concede that the probability of a short sale reaching approval has improved 3 fold (as I predicted) since my earliest posts, when Sacramento area short sale batting averages were below .100

I live in Roseville, mostly represent buyers. I am booster for Roseville, Rocklin, and Granite Bay.
0 votes Thank Flag Link Tue Feb 17, 2009
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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