Im using the listing agent of a short sale home I really want. Is there any benefit? He wants a higher offer due to another offer. Appraisal will be -

Asked by Cris, 92705 Mon Nov 28, 2011

Due to the demand there have been several offers that have gone higher than the house would be appraised for. i expressed I really wanted it for the location. He said a strong offer will get the lenders to pick me. Once I got approved he called all in a rush and said there was another offer higher thatn mine and I should increase my offer. So it went from 400,000 to 410,000. I expressed that the house would be appraised for about 385,000 or lower. Then the agent said we would negotiate the price to the appraisal value and if the sellers dont then I could walk away. Is this smart, since I really want it? Or should I get my own agent? Or see if it works? What is the risk? Im in no hurry? Location is the best for me...

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Cindy Davis’ answer
Cindy Davis, Agent, San Diego, CA
Thu May 17, 2012
I agree. It is always best fo have YOUR OWN agent. It's a common myth that you will do better by using the listing agent. Remember that in the case of a short sale, the listing agent has no control over what the ultimate terms of the sale are - it's all about the bank.

I feel very strongly that it is difficult to fairly represent both sides of a deal. The listing agent has a signed contract to get the seller the highest price he can. As a buyer, you want to get it for the lowest price possible. Do you see any conflict of interest there?

Good luck.
0 votes
Kawain Payne, Agent, Seal Beach, CA
Wed May 16, 2012
I would suggest you get your own agent. That being said if you are already dealing with the listing agent on this one, that may be hard. The listing agent will have little motivation to submit a revised offer from you written by another agent at this point.

You state you really want this home. This is a draw back, If you are so in love with the home you may make an emotional decision that may not really be in your best interest.

The fact that you are asking if you "should" get your "OWN" indicates that you have a feeling you are not getting the best representation.

If it does not feel right maybe you should breakup with this home, find yourself a TRUE buyer's agent to work for you and move on.
0 votes
Stephanie Me…, Agent, Schenectady, NY
Sat May 12, 2012
"He said a strong offer will get the lenders to pick me."

One thing I'd like to point out - in a short sale, usually only one offer is accepted by the homeowner and submitted to the bank. That one offer is then reviewed by the seller's lender for acceptance. The bank is not the one choosing among offers, the seller is. The seller may hold other offers as backups, but not all are submitted to the lender.
0 votes
Christopher…, Agent, Tarrytown, NY
Sat May 12, 2012
Hi, it's always best to have your own agent, unfortunately you don't know if you are being treated fairly. The sellers agent alway represents the sellers best interest. only proceed if you truly feel the value is there and it is worth that much to you, always go with your gut.

Chris
0 votes
Bill Eckler, Agent, Venice, FL
Sat May 12, 2012
A strong offer may get the attention of the home owner but if you are financing an over priced home will not escapr the scrutiny of your lender. Banks tend not provide funding for homes that are valued at less that the appraisal price.

This recommendation may be a result of dual agency. An agent that had your specific interests in mind, would crunch the numbers and hopefully be able to advise you of what your best offer would be from your perspective.

Getting the transaction done and collecting both sides can sometimes cause blurred vision.

Simply keep in mind that making a higher offer may not insure that you will be the successful buyer.

Good luck,

Bill
0 votes
Kawain Payne, Agent, Seal Beach, CA
Fri May 11, 2012
You should get your own agent. The listing agent's primary role is to sale a home for the highest amount possible in the shortest amount of time.

The buyer's agent's role is to get a home for their buyer in the shortest amount of time possible and for the BEST often referred as the lowest possible price.

Some realtors are masterful at the dual agent role, but my experience has been sellers need their own agent and buyers should have their own agent.

Best of luck to you!

Kawain Payne, Realtor
0 votes
Michael Roge…, Agent, Tustin, CA
Mon Apr 23, 2012
There are benefits and drawbacks to using the listing agent as your agent. It sounds to me like you are in a drawback situation. I would get my own agent or at least get a second opinion. From the way you are describing the discussion I have serious doubts about the listing agents experience and knowledge in the short sale arena.

Take your time, be fully informed before you make any commitments, and enjoy the experience.

Professional Attention and Real Results
Atlas Group
Seven Gables Real Estate
Michael Rogers
(714) 412-9012
(888)836-1111
mike@Mr7G.com
Mr7G.com

CA DRE Lic # 01354281
0 votes
Jeremy Lehman, Agent, Garden Grove, CA
Tue Mar 6, 2012
To answer your question, there is no benefit to you unless you know the listing agent is purposefully only submitting offers that he is representing.

3 HUGE red flags in your scenario.

A. Most lenders don't like a listing agent representing the buyer as well on a short sale.
B. The agent is coaching you on an offer when he knows what the other offers are, which is borderline fraudulent behavior if he gets caught. Is he giving the same opportunity to the other offerors?
C. He said you could walk away if you don't get the price you want. A purchase contract is a promise to pay the price you offered.

His fiduciary duty is to his client, THE BANK, and yet he is scheming you and the bank to make more commission. At the very least, this guy is unethical but seems to me more likely much more than that. BUYER BEWARE!
0 votes
Kawain Payne, Agent, Seal Beach, CA
Mon Mar 5, 2012
Hello Cris,

Truth is Short Sales are kind of in a class by themselves. The agent may very well be trying hard to represent your best interest, but is having to deal with multiple parties in the transaction. In a short sale the listing agent is hired by the current homeowner, but the bank ends up calling all the shots.

That being said, I think it is always best for the buyer to have a buyer's agent. You need someone focused like a laser beam on you, and your interest in the transaction.

Perhaps you can ask the agent to find you a comparable property in which they are not the listing agent, since you already have a relationship with the agent this may be a good option.


Best of luck to you,

Kawain Payne, Realtor
714-293-1151
0 votes
Laura Lass, Agent, Barrington, RI
Mon Nov 28, 2011
I always advise buyers to get their own agent. While it's usual to be advised on putting forth your highest and best offer... having your own agent is certainly beneficial. Have you signed a Mandatory Agency Disclosure form? You should have, and the agent would have indicated to you his/her role in the transaction. Listing agents need to put the needs of their seller first and foremost, they are not working for you (the buyer). Getting yourself a "Designated Client Representative" is the way to go.

Getting your lender to approve the purchase of a home 25k or more above appraised value may be tough...

Let me know if you want more information on this subject.

Good Luck, Cris!

Laura Lass
0 votes
Ron Thomas, Agent, Fresno, CA
Mon Nov 28, 2011
You made the committment to the Listing Agent,
It doesn't sound like there is anything untoward,
Yes, if the Appraisal comes in at $385, you should be able to walk.

Good luck and may God bless
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