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"If I write on Your Short Sale Can My Buyers Keep Looking...?" - REBLOGGED!

Reblogger
Real Estate Broker/Owner with Satar - Amiri Property and Financial Services Corp.

 

TO ALL YOU SHORT SALE BUYER AGENTS OUT THERE:

If you don't have to disclose on your purchase offer that you will be submitting multiple offers to different short sales, then don't do it! Don't let the listing agent know! Protect your buyers! Get them into a house as soon as possible on the terms that work for them!

I tell you this because if I was the listing agent and you gave me that info, I personally would pull that purchase offer out of the short sale package and into the trash in a heartbeat! (figuratively speaking)

 

Original content by Sally K. & David L. Hanson 57026-90 Broker

  We got a call the other day from an agent...who asked...

         
           "Can my buyers keep looking after they write on your short sale ?"

duh

   Golly gee whiz....if your buyers aren't willing to wait...and this is not really the house they want...please don't write an offer on our short sale. It isn't fair to the sellers, who think they have a genuine offer....who think that their days of worrying about going into foreclosure are over.  Offers should be written by buyers...and agents who have a sincere, honest, genuine...realistic interest in the property.  Which is really no different than any other offer..write like you mean it....be patient like you want it.

Comments (12)

MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Hey at least the agent was up front about it. You may want to keep the honesty in mind because how many of the others might be doing the same thing but NOT tell you?

Here in Santa Clara County, I've had one buyer who has $500K cash, writing As-Is sales and yet keeps missing out because others outbid her. In areas where there are either few short sales or the property itself is rare, it isn't a problem.

Oct 15, 2009 07:13 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Thanks Michelle for the comment. As a buyer's agent on a short sale listing, my goal is to get my clients a home. Because of the nature of short sales, I recommend that buyer's agents make as many offers on short sales that they like and go with the first one that materializes on their terms. My job is not to be honest with the listing agent.

You are also correct that it can happen to me. Then, as a listing agent, I should do my best to lock down the buyer. Some suggest putting in days for a contingency and holding a deposit till the contingency is lifted. Whatever the means, I have to adapt to protect my sellers.

As for the buyer who is trying to buy a short sale, my blog on how to buy a short sale will help. People think that price is an issue when buying a short sale, it isn't in our state of California. Control the seller, then you control the short sale.

Oct 15, 2009 07:35 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Not too mention the jeopardy you are putting your client in. . an offer is a contract. Unless your buyers can purchase 2,3,4?  houses at the same time.

Oct 15, 2009 10:00 PM
Dave Humphrey, Broker
RE/MAX Marketplace - Celebration, FL
Real Estate Advice You Can TRUST!

I can understand the problem if the buyer's offer is merely held in a desk drawer as a back up offer. If it is the best offer submitted to the bank for consideration, why would they want to look further. They have a deal and it is working.

Oct 15, 2009 10:45 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I give them a counter offer that says upon the seller's acceptance of an offer, the buyer will agree to wait for short sale approval until X date. On top of that, I make the buyer's agent send me an email promising to withdraw any outstanding offers for that buyer and to not write any more offers after acceptance. The ones who don't want to comply aren't accepted. Period. My sellers are in complete agreement with this.

sacramento short sale agent

Oct 16, 2009 02:33 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Fernando - Chances are exremely slim that the lender will approve the short sale as it is in contract and at the same time as your other offers. Remember, anytime an offer is countered, the offer is no longer valid. So, if you ask for home warranty, it will get denied 95% of the time and you are free to walk away. Same goes with REOs. That's why it's ok to make multiple offers on short sales and REOs. Thanks for the comment.

Dave - Because so many things can and do go wrong in a short sale, you don't want to prolong the purchase of the property for your clients. For example, you wait 3 months and learn that the seller cancelled the transaction because the lender asked for a promissory note. You wait another 2 months on another short sale only to learn that it got denied. You wait 6 months and now the property no longer appraises. The list is long and for that reason, you should make multiple offers. Thanks for stopping by. Also, you shouldn't submit the best offer to the bank, but that's another blog. ;)

Elizabeth - You're too smart and I am just glad I am not in your market! I also read somewhere that you offer a higher than average commission because you know the bank will reduce it. Taking advantage of the short sale challenged!  ;)   Thanks for commenting.

 

Oct 16, 2009 03:59 AM
Angie Francis
StepStone Realty LLC - Austin, TX
StepStone is Real Estate without Limits!

Great conversation.  As a listing agent of short sales, I encourage buyers to keep looking after they have submitted an offer... if they find something else, just withdraw the offer.  Doesn't hurt my feelings.  

My goal is to encourage offers... I don't want to scare anyone away by making them think they will be sitting around for three months, possibly passing up other options and then the short sale gets denied or some fluke with the lender causes the property to foreclose.

By the time the lender is ready to approve a number, I've got lots of offers on hand.  Sure, many of them have moved along and are no longer interested but there is always someone at that point is still is.  I haven't lost a short sale yet due to not having an offer when we needed one.  

So, in my mind, it's good for both the buyers and the sellers.

Oct 16, 2009 05:57 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Angie - Thank you for taking the time to comment. In my short sales as a listing agent, I really am working with the buyers to get a great deal so my buyers usually stick around. However, I can understand your point of view and you make a very good and valid point. Besides, when faced with a phantom short sale buyer or a flakey short sale buyer, it's best to go with the flakey one! Again, thank you.

Oct 16, 2009 06:24 AM
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

A lot of our listing agents here keep sending up offers so know in the chain knows which offer the bank will accept.  Doesn't make sense to me so I stay away from short sales.

Oct 16, 2009 06:45 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Gene - I agree. They shouldn't be doing that even if the lender asks for other offers. Don't let that discourage you from short sales. My blog on comment #2 might help you.  Thank you for taking the time to comment!

Oct 16, 2009 09:31 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Satar: Thanks for sharing. The artwork (DUH!) is great, isn't it?

Oct 17, 2009 02:12 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

No problem Melissa. It is. I wish I was able to create better blogs like the rest of you guys but whatever program I use, I have difficulty using it! Anyway, thanks for stopping by!

Oct 17, 2009 05:38 AM