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Answers (12)
Best Answer
Hi there,
I hear ya! I know so many buyers that are in the same situation as you are in San Diego. Unfortunately, that is the reality of the real estate market right now. My best advice--just be patient, and keep trying. You will eventually get the home you were meant to be in. Keep the faith! :)
Best,
Christine Van Tuyl
Prudential California Realty
I hear ya! I know so many buyers that are in the same situation as you are in San Diego. Unfortunately, that is the reality of the real estate market right now. My best advice--just be patient, and keep trying. You will eventually get the home you were meant to be in. Keep the faith! :)
Best,
Christine Van Tuyl
Prudential California Realty
One other point that I'd like to add:
Like the travel agent, the internet is subverting the realm of the REA. I did most of my own leg work and my agent did not provide leads. He was very helpful in the contract phase of the deal, however.
Consequently, I believe that compensation of the agent at 3 or 4% is too high in my circumstances. I think a flat or hourly (billable) fee is more appropriate. Or perhaps a 1.5 - 2% fee structure.
It appears that unless you are a fat-cat insider, an REA does not provide inside deals. I did my own research and comps and walked and talked in the neighborhoods I was interested in. For example, I was always giving directions to my REA for the homes I wanted to see. It would have been nice to have an REA that knew the neighborhoods and values as well as or better than I. I spent countless hours in doing this work and I think I should benefit by a 2% kickback from the 4% my agent made.
I actually previewed homes by trespassing and peeking in windows of unoccupied REOs before schedulind a cracking of the lockbox. I used to report my findings to my agent as the REOs came out ... give him a helping hand with other buyers.
Like the travel agent, the internet is subverting the realm of the REA. I did most of my own leg work and my agent did not provide leads. He was very helpful in the contract phase of the deal, however.
Consequently, I believe that compensation of the agent at 3 or 4% is too high in my circumstances. I think a flat or hourly (billable) fee is more appropriate. Or perhaps a 1.5 - 2% fee structure.
It appears that unless you are a fat-cat insider, an REA does not provide inside deals. I did my own research and comps and walked and talked in the neighborhoods I was interested in. For example, I was always giving directions to my REA for the homes I wanted to see. It would have been nice to have an REA that knew the neighborhoods and values as well as or better than I. I spent countless hours in doing this work and I think I should benefit by a 2% kickback from the 4% my agent made.
I actually previewed homes by trespassing and peeking in windows of unoccupied REOs before schedulind a cracking of the lockbox. I used to report my findings to my agent as the REOs came out ... give him a helping hand with other buyers.
I just closed on my REO and understand your frustration. I was looking since January and put in many bids. I am FHA financed. Here are some of my personal conclusions based in Reno NV, (your mileage may vary):
1) In some cases the banks aren't really interested in selling the REO even though listed. Why? -- I'm not sure, but it must be some sort of behind the scenes game having to do with valuations on the books vis a vis other pending methods of disposal.
2) FHA is a very distinct disadvantage. A few of my bids went directly in the trash, I'm sure, while the asset manager looked for cash or conventional offers. The appraisal situation is all messed up and it is worse for FHA.
3) Timeliness probably is not as important as you'd think, but it is one factor that you can control so get there first with your offer.
4) Qualify with all the major lenders. This is a HUGE advantage, (I am convinced but have no direct evidence). I THINK that a bank getting both sides of the business means that the REO loss can be mitigated somewhat on the books by the new business. I won two bids this way. You have to be careful though because one hand can collude with the other to screw around with (you as mine did).
5) Get your realtor to fill you in on the listing brokerage. We have one brokerage here that churns through the majority of REOs in the county and they don't give a hoot about the small guy. If the REO is with a smaller brokerage I think it is better.
6) Pretty much ignore listed prices ... they are all over the map. Find a price formula for you neighborhood and offer on that. Don't even think over or under the list ... just your formula. Mine was 1998 or earlier pricing plus 3% per year and I bid well under that and won.
7) Patience is not a virtue... it is a necessity.
1) In some cases the banks aren't really interested in selling the REO even though listed. Why? -- I'm not sure, but it must be some sort of behind the scenes game having to do with valuations on the books vis a vis other pending methods of disposal.
2) FHA is a very distinct disadvantage. A few of my bids went directly in the trash, I'm sure, while the asset manager looked for cash or conventional offers. The appraisal situation is all messed up and it is worse for FHA.
3) Timeliness probably is not as important as you'd think, but it is one factor that you can control so get there first with your offer.
4) Qualify with all the major lenders. This is a HUGE advantage, (I am convinced but have no direct evidence). I THINK that a bank getting both sides of the business means that the REO loss can be mitigated somewhat on the books by the new business. I won two bids this way. You have to be careful though because one hand can collude with the other to screw around with (you as mine did).
5) Get your realtor to fill you in on the listing brokerage. We have one brokerage here that churns through the majority of REOs in the county and they don't give a hoot about the small guy. If the REO is with a smaller brokerage I think it is better.
6) Pretty much ignore listed prices ... they are all over the map. Find a price formula for you neighborhood and offer on that. Don't even think over or under the list ... just your formula. Mine was 1998 or earlier pricing plus 3% per year and I bid well under that and won.
7) Patience is not a virtue... it is a necessity.
- mark mills, "LiveAtTheTop"
- Contributions:136
Hi SmileyGrl,
You ask a great question and there is a simple answer to it that requires an agent to do a lot of work, but thats what we get paid for. Even a rookie agent can do it but it does require a lot of knowledge of the neighborhood or condo building(s).
You need to sit down with your agent and tell them a very very detailed description of your perfect home. Then the agent needs to go out and find those homes, this can be easy if they are an expert in the neighborhood and or building. Then after finding those homes, type up letters to the owners and mail them via USPS stating they have a buyer for their home and that they are not trying creative ways to get the listings.
This worked for me last year and I have some clients that are very happy in their new loft and love to tell their friends how I found them the place.
Mark
You ask a great question and there is a simple answer to it that requires an agent to do a lot of work, but thats what we get paid for. Even a rookie agent can do it but it does require a lot of knowledge of the neighborhood or condo building(s).
You need to sit down with your agent and tell them a very very detailed description of your perfect home. Then the agent needs to go out and find those homes, this can be easy if they are an expert in the neighborhood and or building. Then after finding those homes, type up letters to the owners and mail them via USPS stating they have a buyer for their home and that they are not trying creative ways to get the listings.
This worked for me last year and I have some clients that are very happy in their new loft and love to tell their friends how I found them the place.
Mark
- smileygrl
- Contributions:14
I thought I read somewhere that there are agents that have relationships with Asset Managers and can get home listings before they are "listed" on the MLS. I also thought I read that there are agents that can get info on default notices and approch the home owner before the bank forecloses on it but I can't find that info anywhere. I must have been seeing things....lol... :) I wasn't sure if there were different kinds of agents that concentrated on different forms of home searches.
Unfortunately there is not much out there under our pre-approval amount, if it is it's cash or rehab loan only. New construction would be great but in our area the only new construction is in DT and are condo's and we will never move into a condo again.. :)~ I guess we are doing everything we can and just need to keep plugging away. Thanks for all your input.. Have a wonderful night~
Unfortunately there is not much out there under our pre-approval amount, if it is it's cash or rehab loan only. New construction would be great but in our area the only new construction is in DT and are condo's and we will never move into a condo again.. :)~ I guess we are doing everything we can and just need to keep plugging away. Thanks for all your input.. Have a wonderful night~
- Lawrence Tollenaere, "Lawrence Tollenaere"
- Contributions:450
Like you said, it's not your agent's fault. Banks list these homes at an energy price, they know they are going to get bid up. You need to increase your offers, or bid higher on less expensive homes. Or, just keep fishing, and eventually you might steel one. In my experience that results in frustrated buyers and agents. Try low balling a listing that has been on the market forever, sometimes that works. Just know that all distressed sales will be on the MLS, minus a few owned by small local lenders. As an agent I can make sure your first to know about a property, but after that all that matters to the banks is their bottom line. Let me know if I can help. - Lawrence
Nope, there isn't a magic formula. if a preforclosure is for sale, it will be on the mls, nearly always.
your agent can search many fsbo's by looking at fsbo.com for sale with owner, etc, whichever san diego has. Simply make that desire clear to your agent, AND sign a compensation agreement with your agent for that case.
If some agent starts telling you bs tails now, that he/she has the magic houses, are you going to dump this agent that has worked hard for you for 8 months??? hardly seems fair.
your agent can search many fsbo's by looking at fsbo.com for sale with owner, etc, whichever san diego has. Simply make that desire clear to your agent, AND sign a compensation agreement with your agent for that case.
If some agent starts telling you bs tails now, that he/she has the magic houses, are you going to dump this agent that has worked hard for you for 8 months??? hardly seems fair.
- Nathan Wolf, "natewolf"
- Contributions:1825
You should determine the actual value you are willing to pay for any home you are attempting to purchase. Then if it goes over your limit, it wasn't meant to be. Even if your value is over asking price, if it is the home you want, don't think of it in terms of being "over asking price" because the asking price may just be a teaser to get multiple offers, and the sellers know they will not be selling for asking price. In this case, you really have to do your homework in determining your limit on the property. If you go in at your maximum, you will know you did your best. And you can't feel bad if someone else is willing to pay more. Eventually you will find one that is meant to be.
- javi30
- Contributions:81
this probably may make you feel better.....we put an offer for the asking price the other day and them we went over couse we got outbid and then went for 20% over asking!!!This was all in waiting 2 day's....
- Nathan Wolf, "natewolf"
- Contributions:1825
I highly recommend looking at NEW CONSTRUCTION. The builders are giving away their properties in some places. This can be a better deal than a FSBO or a Foreclosure/Short Sale in many cases.
You will actually get a home in good condition, with a warranty, and at a reduced price.
I sold a new construction last month, at about a 15-percent discount for an FHA priced home. And another client decided to actually get a construction loan to build a home, because the builder could still build for less than the foreclosures in the neighborhood-- and they could get a brand new home, in a floorplan they wanted, and they got to select their own upgrades-- and they're not competing against multiple bids.
You will actually get a home in good condition, with a warranty, and at a reduced price.
I sold a new construction last month, at about a 15-percent discount for an FHA priced home. And another client decided to actually get a construction loan to build a home, because the builder could still build for less than the foreclosures in the neighborhood-- and they could get a brand new home, in a floorplan they wanted, and they got to select their own upgrades-- and they're not competing against multiple bids.
- smileygrl
- Contributions:14
lol..Thanks for your quick response. Unfortunately we have been putting in offers as soon as they hit the MLS. Some even within a couple of hours. I am very active in the MLS :) Too active I am afraid.. lol. Most of the offers we have put in have been at asking price or above :( We are approved FHA so I am sure that also has somethig to do with it in most cases.
- Reed Rothchild, "notion"
- Contributions:47
Hooold your horses smiley. Don't go resorting to Short sales and FSBOs just because your being outbid. That's opening up a whole new door of frustration.Your best deal is going to be an REO. Do a little leg work yourself. As soon as a listing pops up that spark your interest send it over to you guy and say I want to see this today! You're in San Diego, good properties go fast.Try to get your bid in there within the 1st day or 2 of it's listing. Are you being competitive with your offers, meaning no more than 10% under listing? Well kept REOs are usually priced about right so lowballs don't get much love.
Keep truckin' and good luck!
Keep truckin' and good luck!
We need an agent that can look outside of the box for homes.
We have been looking for a home for about 8 months now and all the houses we have put offers in on have multiple offers and we always get outbid. We know it's not something our agent is doing wrong. It's just the market right now. Is there an agent that can search for homes that are NOT only on the MLS? I know there are pre-foreclosures, FSBO, auctions, ect. We have spoken to several agents and they swear by the MLS but it's not working for us. We need an agent that can work outside the box. Is this possible? Thanks for your input.
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