Be aggressive not reckless if writing a short sale offer in Alameda CA

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Real Estate Agent with Alain Pinel BRE 01367196
https://activerain.com/droplet/CnN

Be aggressive, not reckless when writing an offer on a short sale in Alameda CA

It’s surprising to hear about some bad information and advice (if true) that this short sale buyer received from his agent in Alameda, Alameda County, CA. This buyer shared what may be a sad sob story if things don’t go his way.

Buyer ordered home inspections and appraisal before receiving short recklesssale approval

The Buyer should wait until he receives confirmation and written short sale approval before he spends any money on inspections and appraisal.

Because if the short sale is not approved or the buyer changes his mind, the buyer’s inspection and appraisal costs will not be reimbursed.

Removed all contingencies per realtor's suggestion (but no written short sale approval yet)

In a competitive situation, it’s understandable if the buyer removes some, but not all contingencies. Removing all contingencies without written short sale approval is a mistake. Doing so is not being aggressive....it’s reckless.


The buyer should leave room to get out of contract if necessary. Even all cash buyers may want time to do their own reasearch and inspections.


Be aggressive, not reckless when writing an offer on a short sale in Alameda CA


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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gene Riemenschneider 06/12/2012 02:47 AM
Topic:
Home Buying
Location:
California Alameda County Alameda
Groups:
Short Sale REALTORS®
Local Expert
"Whacked"!!!
Diary of a Realtor
Bananatude
Tags:
alameda ca short sale
competitive offer
write strong offer
how to write offer on short sale
alameda county short sale

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Rainmaker
1,431,210
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Very wise advise.  You want commitment to run both ways before putting cash on the table.

Jun 11, 2012 02:02 PM #1
Rainmaker
688,100
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

A buyer who is buying a short sale property should use a Realtor who is well versed in the proper procedures for framing a short sale offer as well as all of the other aspects of a short sale that are handled differently from an equity sale.

The buyer to which you are making reference got some very bad advice from an agent who did not know what they are doing.

Jun 11, 2012 02:57 PM #2
Ambassador
4,010,583
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Pacita

Clearly someone does not know what they ashould be doing in order to protect the interests of the client, and the poor client listened.

I'm surprised they could get an appraisal - normally that would only be done with a ratified contract in place which you don't have without the short sale approval in writing.

Jeff

Jun 11, 2012 04:13 PM #3
Rainmaker
1,766,882
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Being reckless is usually not a good thing Pacita.

Being agressive though, can have its benefits.

Jun 11, 2012 05:06 PM #4
Rainmaker
751,986
Ritu Desai
Samson Properties - Ashburn, VA
Virginia Realtor-Fairfax/Loudoun/PW-703-625-4949

Pacita, great piece of advise especially first time buyer who does not know what to loose out the opportunity to own that home. Buyer agent like yourself can help them guide on what can be removed and not.

Jun 11, 2012 08:54 PM #5
Ambassador
759,137
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

I'm not sure that I'd advice the buyer to get a home inspection before the short sale approval.  And the only reason that I can think of that a buyer would do it before approval is because they didn't want to wait months for the inspection only to find out that they don't want the property any way because of a multitude of issues.

Jun 11, 2012 11:07 PM #6
Ambassador
1,500,461
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I agree with Tom #4 on this one Pacita.  In my business world reckless NEVER - Aggressive as needed always keeping my clients best interest in the forefront.  Suggested.

Jun 12, 2012 01:29 AM #7
Rainmaker
710,627
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Gene -- we can open escrow at short sale acceptance...and even remove some contingencies in a competitive situation. But not remove all of them or order/pay for inspections. These could be costly mistakes

John -- you may have seen the details about this buyer who posted his question on Trulia. It's one of those tsk tsk scenarios

Jeff -- I questioned how the buyer was able to get a loan appraisal (and loan approval) without getting the short sale written approval, too. An eagle-eyed lender would want that

Tom -- People need to understand that there's a world of difference between being aggressive and getting reckless. Professional drivers may drive fast but they're hardly reckless; unlike some teenagers who think they're Mario Andretti. Same with seasoned short sale agents -- they know what to do; but newbies may not.

Ritu -- unfortunately for that buyer (who posted his problem on Trulia) he will need to consult a real estate attorney to get out of this fiasco if he needs/wants to

Charita -- like you, I wouldn't want the buyer to pay for any inspections or appraisal before getting a written short sale approval

John -- when it comes to other people's money, I'd tread very carefully, too

 

Jun 12, 2012 04:46 AM #8
Rainmaker
3,266,239
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Different parts of the country have different practiices....here. ....and in our practice...the buyer does the inspection and deposits earnest money from the SELLER approval,...not the LENDER'S....working for the Seller, if there is a problem with the inspection...learning it 60 plus days later is not a good thing...for either the buyer or seller....and for us, and all we serve, this works well.

Jun 12, 2012 02:17 PM #9
Rainmaker
710,627
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Sally and David

You're right....it all depends on your buyers and your market, I guess. But I will be concerned if the short sale isn't approved, and my buyer spends all that money on inspections (and it's happened more than once). It's advantageous for the seller who now can take advantage of the reports being part of the disclosure package. So if the buyer walks, there won't be any surprises for the next buyer.

Jun 14, 2012 05:39 PM #10
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Rainmaker
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Pacita Dimacali

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