1st Time Buy…, Home Buyer in Santa Cruz County, CA

"Short" sale in Watsonville...more than one offer now...what to do???

Asked by 1st Time Buyer, Santa Cruz County, CA Sat Aug 2, 2008

Hello. My husband and I have found a house that we adore (this is "the one"...our first home!) and we put in an offer back in May. The owners accepted, however, although the price is fair, it is now considered a short sale (it was an investment). We JUST found out that someone else put in an offer three weeks ago for the same price. Our agent seems to be losing interest and is directing us towards bank owned homes, but we're just not interested (it is frustrating and has caused us to lose confidence in our agent). My question is, what can we do (if anything) to make our offer more appealing to the lenders? We can put at least 20% down, we have good credit, we've more or less been pre-approved by a local lender, and we were the first ones to put in a bid. My husband and I thought to increase our bid but we don't want to send the message that the bid before was too low (it was a fair price) nor do we want to get into a bidding war.

Any suggestions would be greatly appreciated.

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Gina Olivarez, Agent, Watsonville, CA
Wed May 19, 2010
1. Get new agent
2. Remove any credits that you may have asked the seller to debit
3. Propose a higher down payment
4. Provide proof of your down payment
5. provide a pre-approval letter
6. Propose to purchase "as-is"
Reasons for a short sale delay:
-the listing agent may not be experienced in short sales
-the seller may have multiple liens attached to the property
-the listing agent is not communicating enough with the sellers bank
-the sellers may be near foreclosure
-the sellers may want to keep the home & may be working out a plan with the bank
-BEWARE!! some distressed sellers are attempting to re-purchase their home in a short sale with someone elses credit (that may be fraud), and delay the sale until the sellers finds a canidate (usually family or friends).
Do not get disappointed if your dream home is a short sale...just make sure you have an experienced agent.
Web Reference:  http://www.opi.am
0 votes
Erica Pittma…, Agent, Santa Cruz, CA
Tue Aug 5, 2008
Hi 1st Time Home Buyer-
This is Erica Pittman-Gaynor of Keller Williams Santa Cruz. It is such a shame to hear that your agent is losing interest. This is one of the single most important investments you will ever make, and the fact that you feel this is "the one" makes it all the more important. Dealing with short sales is not easy. Banks all work differently and it is especially frustrating for the buyers agent, as the banks will only communicate with the listing agent.
I have found that the most important thing is to create a good relationship with the listing agent and go over and above in helping with anything that will benefit your buyer and make their offer the most attractive. If this house is priced well a bidding war may very well be what you can expect, but if it's "the one" I would urge you to be patient and not give up. Remember, your agent is working for YOU and in YOUR best interest. If you do not feel like they are living up to their responsibilities and fulfilling the things that you have the right to expect, perhaps a conversation and change are in order.
Hope this helps-
feel free to contact me with any further questions.
Erica Pittman-Gaynor
831 818-4123
erica@ericapittman.com
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Sat Aug 2, 2008
1st Time Buyer:

First, congratulation on your decision and actions to buy your first home. I am sorry to hear that your agent is not fighting for you on "the one". It seems like so many agents forget that they work FOR you, the client. Maybe you should remind your agent of this point.

As a person who works with a lot of first time homebuyers, this is what I recommend you do if you truly want the house. Tell your agent to
1. call the listing agent and find out if they are submitting ALL offers to the bank or just the best offer. Some banks do not want to see all offers. Other banks instruct the listing agents to submit all offers. Unfortunately, this is in the listing agent's hands and if your agent does not represent both sides of the deal, the best they can do is get information from the listing agent.
2. If the listing agent is submitting all offers, then request that they be informed when and if any of the other offers are higher than yours, since it was the first offer accepted and submitted to the bank.
3. Have your agent stay in constant communication with the listing agent and offer any assistance what-so-ever to help get your offer accepted.

Remember your agent should have your best interest in mind. If you truly want this house, push for it. You might even consider telling your agent that for right now you are not going to view or buy any other house. That this is the one you want and you want them to focus on getting you this home. This should send them a strong signal about what they need to do to get paid.

At the same time, remember, this short sale and your agent has no control over who the bank ultimately chooses (if they don't actually push it into foreclosure) as the buyer. It is a difficult place for your agent to be. Its kind of like having all the responsibility and none of the authority.

Best of luck in buying your first home and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes
Terry Ballan…, , 95003
Sat Aug 2, 2008
The banks are really not doing a good job with offers! They are ill equipped ,it would appear to handle
the load of short sales and have not created good lines of communications internally. Coast to coast
I have heard stories of great buyers like yourself going to waste because the bank cannot or will not
respond in a timely manner. The bank is very detached and it takes a very assertive and yet persuasive
agent to build a relationship and pierce the veil of red tape that is only now still in it's creation stage.
Bottom line, fight for the house you want if you really love it.... Get you agent on board and make sure
he or she communicates vigorously with the lender and forge a bond with someone at the lender level. It's
an impersonal process so you have to know how to stand out. I hope it works out for you!
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Watsonville Zip Codes

Email me when…

Learn more