I have been shopping in the Brea, La Habra area, and have found several short sales. I submit

Asked by Luis, So-Cal Wed Jun 11, 2008

these
properties to my agent, who submits my offers, usually much higher than the listing price 15-40K. According to my agent, these properties build up many offers. I am asssuming that perhaps the listing agents aren't as willing to work with my agent because of commissions. Since I find these properties myself, I am considering just contacting the listing agents myself. Is this a good strategy...

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Dave Osborne, Agent, Orange, CA
Wed Jun 11, 2008
First of all...why are you finding these Short sales yourself? That is our job as real estate pros. If you have an agent, you shouldn't need to spend your time trying to find deals on your own. Your agent is right about one thing though. Many listing agents (LAs) list short sales far below market value to generate their own buyers or at least to stimulate an auction effect. In some cases, It has been shamefully lower but I have, in fact, seen it first hand.

1 example recently in south county is a house where the cheapest comparable in the neighborhood was $650K. A LA took a listing where the seller owed the bank $635K and put it on the market at $499K. Listed it on the MLS as Active and then changed it to Sold the same day it hit the market for around $475K. Absolutely shameful.,,,and yes, this agent represented both buyer and seller. Nothing in this neighborhood had sold for less than 600K in the 5 previous years...even homes 1,000 sq ft smaller were selling for over $600K. Even in this market, It would have sold at $599K all day long. This same model had sold for over $800K in the heyday. The LA's regard for the bank was Nil and in other times, would have also caused the homeowner a huge tax loss and additional financial burden. Further every homeowner in that $600K+ neighborhood will now have to deal with that ridiculous sale as a comp to some degree...so many victims from one agent's selfish action.....but hey, the agent got theirs (twice) and the buyer did get a steal of a deal.

So you may get a deal this way but whether you do or not, you could well end up working with an agent who has a complete lack of ethics or morals, The thought of someone like that ever representing me and my financial interests is horrifying. I think you would be better off working with someone who will look out for you and not just themselves. There are plenty of great deals out there. My advise is to just find someone who will work hard for you and be diligent about following through on your offers...as well as finding great properties for you to look at in the first place.

PS On the Short sales that are listed properly, banks are often taking months to shuffle though the offers and accepting them and trying to close them. Short sales are tough, plain and simple.
Web Reference:  http://www.400kHomes.com
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Ray Calnan, , Los Angeles, CA
Wed Jun 11, 2008
The big disadvantage to this strategy is that the listing agent will be acting as a dual agent. Meaning that he/she will be representing both you, the buyer, and the seller. In many cases agents can do this and still make sure that both sides are treated fairly, but in some cases it is not as easy.

It is always best to make sure that you have someone representing you. By law the listing agent has to show the offers that you make through your agent. The sellers may not accept your offer, but they have to be shown the offer.

Good Luck,

Ray
Web Reference:  http://www.charityar.com
0 votes
Jimmy Hutchi…, , Downey, CA
Wed Jun 11, 2008
Hello Luis,

There are so many really good Realtors out there that will work hard for you, I would suggest getting a new agent. There could be a communication gap between your current agent following up with the listing agent. If you would like my help, feel free to contact me

Jimmy Hutchinson
Atmosphere Realty
310-350-4280
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