Let me start with full disclosure and identify myself as a listing agent that is in his third year of working exclusively with banks to list, market and sell their REO inventory of bank owned homes. My San Jacinto, CA office is located on the border of Hemet and San Jacinto, next to Starbucks at the intersection of Esplanade and Sanderson. I am a local area expert when it comes to the Hemet - San Jacinto Valley and the surrounding communities of the South West Riverside County in the Inland Empire region of Southern California.
As an REO Listing agent I have the opportunity to see and process many offers from agents across the state of California. My own personal preference is to work with a local agent because I strongly believe that all Real Estate is local and that the REALTORS involved in the transaction should be too. There are many reasons for this that I will not elaborate on in this article.
What I can say is that as an agent for the seller, I am bound and obligated to present ALL offers that are presented to my seller - just as if they were any other seller. I do not have the luxury of picking and choosing. My team and I process all offers in the sequence they are presented.
PROCESS THE OFFER
Once an offer is received, I take it upon myself to contact buyers's agent and discuss the terms spelled out in the offer, as I perceive them to be. You see, REO Listing Agents do not pass along your paperwork to the seller. We digest what we read and summarize it. Different asset managers and banks have different formats but in essence we break down about the 10 to 15 most relevant highlights of the offer and add a short paragraph to summarize it.
Once I speak with the buyers real estate agent, I will then make contact with the loan officer who signed the pre-qualification letter to make sure that it is both legitimate and to access the probability of the buyer actually closing escrow.
I will only submit the offer to my client after I have completed my due diligence. If after 24 hours I still cannot reach either of the parties on the other side of the transaction, I do notify my seller - but I also emphasize that I have not been able to communicate effectively with the other side, and ask how they want me to proceed.
Now, right or wrong I am only human and yes like all of my species we are subject to influence. If the agent or loan office is not cooperating with me now, why would I want to push their offer through with any sort of priority? Certainly, if I have a hard time reaching them now, why would I want to enter into escrow with these people?
INFLUENCE...Is it Right?
Truth is agents can influence and win me over by sharing the details of what their buyers have been through - both in the process and in their lives.
Let me give you an example. Local Agents in the Hemet - San Jacinto Valley are aware that I have lived with cancer in my family for over a dozen years now, with my wife - many of who know her. So, when I recently got a call from an agent who is a cancer survivor and she shares with me the story of her buyer who has a child that has been diagnosed with cancer...well trust me, they found a soft spot in my heart. If their offer is as good as the rest, don't you think I could find a way to give it the nudge to move it forward above the rest? Of course I can and yes I do.
No, don't go reading into this that I sabotage offers and only process the ones I want for the agents I like - or heaven forbid that I should double end a deal with my own buyer. After all, whose sign have they been calling on for 2 weeks before it ever went in the MLS?
My personal belief is that any agent who does not sell their clients offer hard to the listing agent is not providing their clients with any justice and may even be guilty of not providing a the benefit of fiduciary duty. In my opinion the buyers agent should initiate the call to the listing agent before the offer is ever submitted - you never know what you may find out.
What I am saying is that as a REALTOR I have a duty and responsibility that I take very seriously and that I am also able to use factors besides numbers to offer my influence. Remember, the seller wants my OPINION and that's what I offer. Don't you? Of course, so lets move on and not make this the topic...after all, you want to know how to get your offer accepted, right?
HIGHEST AND BEST
Not so long ago, when we had multiple offers on our REO Listings, the asset manager would look at the top 3 to 5 (depending on how many offers we had) and instruct us, as the REO Listing Agent, to go back to the buyers agents and ask for a final ‘Highest & Best' offer.
The market here in California has changed significantly with the recent moratorium. The principals of supply and demand are definitely at work as many wanna be first time home buyers are all scrambling to take advantage of the $8,000 federal tax credit along with cash investors that believe we are at the very bottom of the market. Add to the formula that because of the moratorium there have been very few new properties entered in the MLS for sale.
The trend I am seeing today is that the banks are starting off asking for top dollar, based on the local market conditions...and getting it. The homes may sit on the market a bit longer - but the one universal truth about the Hemet San Jacinto, CA real Estate market in September 2009 is that every bank owned REO Listing in the MLS will sell. I'd almost go out on a limb and say at least 98% or more will be totally gone before the end of the year. (That's a big fat limb that I'm not worried about falling off of.)
Today, when we have multiple offers, I don't think the banks are looking at price. I have had several offers this month 100+% of list that have been rolled back to list. The asset managers and banks have gotten smart with what the buyers have been doing - bidding up to a ridiculously high offer knowing that the home for sale will not appraise. The thinking has been that the banks will now have to renegotiate their position. NOT!
Today, if you want to writ an offer for over list - then we will want to see the proof of funds for the difference between the list price and your offer amount and we want to make sure there is no appraisal contingency.
SO, WHAT CAN Y OU DO?
My team and I have coined a phrase in our office that we use to describe a clean offer that is hard for anyone to turn down. We call it a "Sexy Offer".
A Sexy Offer has nothing on it (hence the reference to sexy). There are no contingencies - whatsoever. The offer does not ask for closing costs, it doesn't ask for a home warranty or even a Natural Hazard Disclosure report (which now only costs $114). These offers want nothing more than to buy the home AS-IS.
When an offer is ‘Over Sexed' the buyers agent hand delivers it to my office with the actual earnest money deposit which is spelled out as non-refundable in the offer. Honestly, can it get any better than this?
Of course these offers are not for everyone - and certainly not the ones who have a weak heart.
Good Luck and Hope to see you in Escrow,
Blessings to all who read,
John Occhi, REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley
951-6564-5550
Servicing THE REO Needs of Asset Managers, Servicers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above phone number.
Serving California and Riverside County zip codes of 92501, 92503 , 92551, 92555 , 92562, 92563, 92504, 92505, 92557, 92553, 92506, 92507, 92590 92591, 92508, 92509, 92570, 92571, 92592, 92399 , 92584 , 92596, 92820 , 92571 , 92543, 92544, 92545, 92583, 92582, 92879, 92580 , 92530, 92532, 92881, 92882, 92567, 92518, 92883 , 92549, 92561, 92220, 92223, 92028, 92088
Comments (4)Subscribe to CommentsComment