Sell and Buy at the same time with the same agent..

Asked by Kitty, 94552 Tue Feb 2, 2010

I am looking for a foreclosed house in 5 Canyons, but I also need to sale my currelty house first so that I can have the 20% down payment. What should I do first? Can I request the agent who handle the foreclosed house that I'm interested tin o sell the house for me as well. Save some money??

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8
Erica Starkey, Agent, Danville, CA
Tue Feb 9, 2010
Kitty,
Most REO agents don't handle private sales and though I know saving money is important, it is critical that you have an agent who has your best interest in mind. Dual agency can not always work in your favor and I would suggest doing that. If you are buying and selling a home most agents will give you some credit for letting them handle both transactions. I wouldn't suggest doing a contingent offer on REO, I haven't met a bank yet that will accept them. Also, if you want to buya foreclosure make sure you are working with an agent who has done them before. They can be risky and you need to know how to protect yourself. feel free to contact me directly if you have any more questions.
Best,
Erica

Erica Jones Starkey
Broker, Co-Founder
JSCA Real Estate Group
Providing Superior Solutions for Your Individual Real Estate Needs
Web Reference:  http://www.jscarealty.com
0 votes
Chani Traffi…, Agent, San Francisco, CA
Tue Feb 2, 2010
Kitty,

these are good questions in preparation for nall this- I do agree wiht the response from another agent list your home, Look for homes so you get a feel for what you want and were- I would not put any offers out until you are geeting very close to closing or the sale of your home and I mean very close like after papers by buyer have been signed- then you are in a place to put a offer out, and then do a rent back, should you move out sooner than agreed, usally they will credit back your money- due to they can take occupancy sooner,

As far as using the same agnet, its what and who you feel comfotable with
Good Luck
Chani Trafficante
0 votes
Meena Gujral, Agent, Pleasanton, CA
Tue Feb 2, 2010
Hi Kitty,

The agent selling the foreclosed home may be too busy to handle a regular sale such as your home. I say that because whenever I try to call the agent selling foreclosure property, I have the hardest time reaching them. They do not return phone messages and if you watch the video that Pacita has in the link, it is so true. I am sure every agent has had most of those responses from the foreclosure agent.

You should look for an agent who is going to be there to devote their full attention to selling your home quickly at the best price possible so you can get into your new home.

I lived in Five Canyons for several years and I am very familiar with all of Castro Valley and surrounding cities. If I can be of any help, you can reach me at 510-279-9580.
0 votes
Kenneth Lee, Agent, Piedmont, CA
Tue Feb 2, 2010
Hello Kitty,

I agree with the others that a bank accepting a contigent offer for a foreclosed property would be a longshot at best. I suggest that you list your property with a possibility of a rent back.

I'm not sure what you mean by 'save some money?'. Even if the same agent represents you with your house sale and your new purchase, the cost to you is the same. Also, I would choose a seller's agent that knows your neighborhood well. This may not be the same person that is representing the foreclosed property that you are interested in.

Good Luck!
Mary Burns
Keller Williams
DRE # 01439959
0 votes
Tim Ambrose, Agent, Castro Valley, CA
Tue Feb 2, 2010
Hi Ktty,

That may seem to be a tough question, but it really isn’t. You’ve answered it with your question, “You need to sell to get the 20% down payment”. It’s very unlikely that a seller, be it a bank or regular homeowner would wait for you to sell your home. Put yourself in there shoes. Would you take an offer from someone that says “Please take my offer but wait until I sale my home?” If I were your Realtor I would advise you to sale your home, consider a rent back from the buyers that buy your home while you are searching. Or make arrangements with a family member or friends to have a place to live once the sale of your home is complete. In this market, you’ve got to be ready to respond when the right house is available.

I hope this helps.


Tim Ambrose
Web Reference:  http://www.timambrose.com
0 votes
Susan Jones, Agent, Castro Valley, CA
Tue Feb 2, 2010
1. If you're thinking of buying another property but don't have the funds to do so, then you may want to go ahead and consider listing your property for sale now. You can make your offer subject to your finding a new home.
2. If you're writing offer on a foreclosed home,The banks sometimes won't consider an offer contingent on your selling your property, they would like to see proof of funds to close escrow. Banks usually go for the best and highest offer. A contingent offer is not always considered the strongest.

3. So, you may want to sell your current home first and get a seller rent back for 30 days or more from the buyer to give time to identify and go into contract on a replacemnet home.

.
0 votes
Pacita Dimac…, Agent, Oakland, CA
Tue Feb 2, 2010
Some thoughts:

1. If you're writing offer on a foreclosed home, chances are the bank won't even consider an offer contingent on your selling your property. Most foreclosiing banks will also insist on proof of funds to close escrow. Banks will always go for the best and highest offer. A contingent offer is considered weak.

2. Foreclosure of REO agents are so busy now that chances are they won't have time to give your property the attention it deserves to be properly marketed. You're not saving any money using that agent. But you may lose valuable time and even prospective buyers if that agent is unable to devote time to your property.

3. If you're thinking of buying another property but don't have the funds to do so, then you may want to go ahead and consider listing your property for sale now. You can make it subject to your finding a replacement property, or even request rent-back from the new owners until you do.

Just for fun, although this has a lot of truth in it, watch this video about how to buy a bank owned property
http://www.youtube.com/watch?v=SM7oWKgCVo4

If you have questions, by all means, ask away. There are a lot of us here who can help.

Good luck!
Web Reference:  http://www.pacitarealtor.com
0 votes
Steven Ornel…, Agent, Fremont, CA
Tue Feb 2, 2010
Hi Kitty, here are two other options:

1) Place an offer on the foreclosed property; however, make it contingent on selling your current home. This is a bit more complicated and certain banks may not be interested in a contingent offer since supply has become more limited.

2) Sell your home first. As part of the sale let any potential Buyers know that you will need a 30-day Rent/lease back after close of escrow so you have time to find your new home. The risk here is obviously that the particular foreclosure you are interested in may already be gone.

Best, Steve
0 votes
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