Is your question : Are there any pro's to using the listing agent when buying a house?
If so it depends on the agent. If the agent is unethical then yes. The advantage is you might get the house in a multiple offer situation even though you may not have the best terms.
I'll give you a recent example I ran into. There was a fixer in my area listed for $150k that once fixed up couple easily sell for over $300k. Submitted an all cash offer of $209k, 10 day close. A month later I saw the home sold through the listing agent for $169k and it was a 30 day close. I don't know any seller who wouldn't like an extra $40k... more
Why on earth are you repairing a house you do not own? What kind of agent do you have that with knowledge of this action, doesn't immediately throw up a red flag ans ask you to reconsider putting money into the house?
What happens if the sale falls through? You are out the money and no one is going to care.
Just because a sale is "as is" doesn't mean you can't negotiate. Everything is negotiable, everything. That doesn't mean things will go your way but not trying just means you take up the slack.
Asking for money from the seller after you've spent it is like buying food at Safeway, going home and then going back and asking for a discount.
Sorry for your situation but you have basically put yourself into a position of no leverage. The leverage the buyer has is BEFORE money is spent, not after and before all contingencies are removed, not after.
Your agent has failed you miserably. The best you can hope for is to make your case and hope you get some money back or that some closing costs get paid by the seller.
Now here is something that will help. Since your agent failed so miserably, ask your buyer agent to accept less commission (in reality YOU the buyer pay all commissions - read my blogs). Thats right, ask your agent to take 1 - 1.5% and reduce the money you need to pay to buy that house. You aren't asking for money back from anyone, that commission is not yet paid. By the way, the idea that the listing agent pays the buyer agent is pure 100% nonsense. Every penny of commission comes out of your pocket, it might change hands once or twice but it all comes from you. Don't believe the agent double talk on this.... more
There is no way to make a sweeping generalization on this. Normally the listing agent is going to run comps and then price the home agressively. This does not mean they won't take a lower price to the lender. When I list a short sale, I am looking for a solid buyer who will wait for approval. Someone who can close. I do not represent the lender, but the seller....so it's the lender's responsibility to do their own comps and determine if we are in line or not with value.
I also don't want to waste buyer's time....so I don't take an offer that I know is way too low for a bank to approve....that just wastes everyone's time and the buyers will need to come up in price or move on ultimately anyway.
There are a lot of pitfalls to Selling a home short. I am a real estate broker and have been in Hollister since 1994. I have personally sold more than 400 new and used homes and now work almost exclusively with Short Sales.
Intragal to my program is utilizing a local attorney who specializes in short sales. He will meet with you or with you and I to answer all your questions regarding short sales. You actually have 8 options as to how to proceed with selling your home. He will review all of these with you. Many people do not realize that there could be tax consequences or recourse from the bank. It is important to know all aspects of the sale. If you elect to proceed, your total cost of selling the home should be $495.
The balance of the cost will be paid by me out of the sales commission paid by the bank that holds your loan. The $495 attorney fee is well worth the information and service the attorney provides. He handles all the negotiations with your lender while I handle all the real estate aspects.
Thank you for your consideration.
Patrick J. Lampe
Realty World Lampe Realty, Inc.
REOs are priced where a bank is comfortable with negotiation from the buyer. They price it real aggressively so it will sell once its on put on the market. They have the intention of selling them within the first few days. Prices will go up when there are multiple offers. None of our REO listings have gone up on price unless it was bid up by buyers.
Short sales, on the other hand, are a pain. They almost always come back at a higher price. Do you have a Realtor? If so, ask him/her to only show APPROVED short sales. Most contain the phase "short sale subject to lender approval" and that means you and we have no idea if it will even be approved. When it states approved at a given price, it means that's the price to offer if you want to actually get in the home within a reasonable amount of time. If you do not have a Realtor yet, I have some awesome agents I could refer you to. One especially is my brother's agent who is a personal friend. I've been coaching my brother (Dr. Leif Nordstrom if you know him) on what the steps are for buying an REO, and the agent is great. Hope this helps!... more