I always recommend you select a buyer's Broker to represent your interests only (a single agency). There could be many reasons why your offers are not being considered, what does your agent say? Are you writing your best purchase offer? Are you writing it so that it is attractive to the seller given the competition in your market, are there unnecessary requests or contingencies, etc.? Learn more her
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From your second comment / question, it appears you've made offers on two properties. While this probably seems like a lot of offers to you, as some of the agents have mentioned below, they are seeing numerous multiple offer situations in the Milpitas market. This means there are many more buyers than sellers in the market, and hence, it may take several tries before you successfully enter escrow on a home.
Continue to have open discussions with your agent. Make sure your agent knows you are frustrated and listen carefully to the advice your agent may be giving you.
There are many reasons why your offer is not accepted / not responded to. And not all sellers want to "negotiate". Sometimes they want to accept the cleanest, most straight forward offer presented. Hang in there; you will be successful!
Feel free to contact me with any questions.
At your service,
Certified Distressed Property Expert
I would say to write a very appealing offer, I can recommend a few steps:
1: Find out what is driving the seller. It is not always money. Or, find out what drives the seller's agent. Is it short contingency days? Is it an opportunity to rent back? Is it a quick close?
2: Write a very careful offer. The word we use is "clean." Don't leave a bunch of unclear questions that have to be cleared up on a counter offer. If your agent has trouble explaining this to you, find an agent who can explain this to you!
3: Include all of the information you can possibly enclose. What happened in the age of "foreclosed" homes is that buyers started enclosing proof of funds to close, pay stubs, and even copies of their fico report. When I enclose these things, the sellers are VERY HAPPY. And if I'm going against you in Milpitas, I'll win if my client's proof of funds, FICO score and such are stronger than another offer. I'm disclosing so much, the seller can see that we can do this.
4: In short sales, personality matters. The seller and listing agent are going to have to hang out with you for several months. They want to like the agent and the buyer. It's not only your money but your personality, sometimes, that will "win" in the multiple offer short sale scenario I'm seeing a lot of here in MIlpitas and Berryessa.
5: Early. The early bird is getting the worm right now. You want to be quick to offer. It sounds like you are being pretty quick!
As far as does the agent respond to the offer, agents sometimes do not. Especially with foreclosures, they just don't always have the bandwidth or propensity to be communicative. It may depend on the quality of the assistant or the culture of the office. If your offer isn't particularly unique and your agent isn't building relationships with the listing agents, you're likely not to hear unless you hit it just right (clean offer, right terms, right amount of proof provided).
I hope this helps. I wouldn't give up, homeownership has so many benefits and Milpitas is not that hard to get into.
Erica Glessing Nelson
DRE 01425475 http://www.HomesforSaleinSanJose.net
I always recommend you select a buyer's Broker/agent to represent your interests only (a single agency). There could be many reasons why your offers are not being considered, what does your agent say? Are you writing your best purchase offer? Are you writing it so that it is attractive to the seller given the competition in your market, are there unnecessary requests or contingencies, etc.? If you are just-tired, take a short break and come back refreshed. Good luck
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The selling agent is your agent, not the seller's.
Depending on the type of deal and the number of offers, the seller may not have any incentive to negotiate. You probably don't want to know the price or terms it took to win. More often than many people expect, the winning bid is an all cash buyer with a very high bid price.
Even if its a REO somehow a listing agent can influence the bank that this agent is problematic and has a MO of offering way over just to get it reduced later on, or pushing for repairs when they clearly say no repairs, or just poor performance. It could be a sneaky agent who seems very nice that is a greedy double ender that has p...ssed off Agents so many times.
There are so many times that I get new buyers who are just misinformed and bullied.
Check trends in housing:
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Care to look at trends for town homes and condos in Silicon Valley, click on link
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the answer is simple, Just No Inventory.
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All I can say to you is 'DON'T GIVE UP!.' The work and challenges exist but the fact remains that it's an awesome time to buy a home at low prices with low interest rates.
Wishing you loads of good luck out there!
Again, thx for the information in this thread. I feel a lot more relaxed now. If I lose another offer, I"ll probably look through this thread for another agent.
1. You are offering over the listing price without realizing that is often not the true property value. In many cases homes are being listed below the anticipated sales price to create multiple offers. A Buyers Agent should always provide you with a Market Analysis to establish the True Value. You can then decide how to price your offer based on clear facts.
2. Your down payment is less than 20%. Many listing agents will advise the Seller to go with an offer with more down payment even with a lower bid. This is simply based on the reality that it has a much higher probability of actually closing. A higher proportion of low down payment offers fail to close, usually for issues with their lender.
3. You are using an FHA or V/A loan. A significant number of Agents do not understand how these loans work today and present them incorrectly as having negative consequences to the Seller. Be aware offers using these loands have to be written a little differently to those using Conventional finance.
4. A very high percentage of listed properties are either Bank owned or Short Sales. In both cases the Seller is always going to favour a Buyer with cash or a large down payment.
I'm averaging 7 losing offers for each successful one in the 1st time buyer market, but that's the world we live in at the moment so we have to do the best we can and earn our money the hard way. Using our knowledge and experience to make the process as open and fair as possible.
1) Your loan program and/or downpayment amount. If you are doing an FHA loan with 3.5% down it is going to be far more difficult to get an offer accepted in this market.
2) Inventory is down 40% from last year meaning there is a shortage of inventory in most markets.
3) A pre-approval from most large banks are not worth the paper they are written on with a lot of listing agents, because many of them issue pre-approval letters from pulling a credit report and an application without verifying everything needed to prove you can close a loan.
Unfortunately it is becoming a sellers market and there may be a lot of things against you, so it may be difficult for awhile unless you make some adjustments.
If that's the case, then you need a new agent, as this should not be happening.
"Should I let some of these listing agents be my buying agent as well?"
You are better off with your own representation. If you have someone competent and experienced working on your behalf, you will succeed.
Pacific Century Realty
Buyer Rebates to 50%
Well, I would need a little more information to answer this qustion well. I am guessing that you are going after Short-Sale and Foreclosure property and are up against high bidders and/or all cash buyers. One of the things you should ask your agent is, for their opinion on your offer. We can sometimes get a feel for what others have offered, or we will have an idea based upon the demand for the particular property. For instance, a home that only needs cosmetic work, is a 3 bedroom 2 bath near good schools, will have a high demand by comparison to a smaller house far from a good school district. You will probaby not be taken seriously, or responded to with low offers when the seller already has offers way over the asking price.
Although there are many ways to strengthen your offer and,like cream, rise to the top of the sellers notice, there is no guarantee that yours will be selected as the buyer of the home. Because we are also seeing pretty low inventory in some of the more desired areas of Milpitas, the competition for good homes can be pretty fierce.
Before you opt for a more experienced buyers agent, I need to ask if your Realtor has evert provided you with a "post mortem" regarding the sale. Do you know how many offers were made in the home? Do you know why the seller chose the other offer? Have you and your agent ever discussed specific ways in which your offer can be made more appealing to this specific seller?
If the answer to the above is no, then your agent may not be as skilled in representing buyers as in representing sellers. Surprisingly, there is a real method to negotiating on behalf of the buyer including personally presenting offers to the seller and rapport building throughout the pre offer period.
Most importantly, remember every seller WILL negotiate...there is just no guarantee that you are the one the seller wants to negotiate with. Knowing where the offers are and pricing the seller is seeing is a skill at you develop in representing a lot of buyers, so you need to find someone with that extra bit of perception.
Again, if your agent is not doing what I suggest and does not know why your offers are not getting the home, it's time to move on. Otherwise, sit down with your agent and have a good hear to heart regarding your frustration to see if you can better understand what you can do in the future to find a great home.
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There are some agents out there that may not have the best reputation and I wouldn't want them to represent me regardless if it got me the home. It could cost you later. So stick with having YOUR own Broker.
Just because you offered $10,000 over asking, doesn't mean that you had the best offer. There are a lot of terms and conditions in an offer which are important and it changes from house to house and seller to seller. A good Buyer Broker will follow what Erica has suggested. Find the motivation of the Seller. This happens by having a conversation with the listing agent. Also, who is your mortgage approved through? Is it the buyer/agent? An on line approval? Or one from a local known respected and trusted mortgage/brokerage? Has your lender made a call to the listing agent to tell them how great of a borrower you are?
These are just some of the examples which set one Broker/Agent apart from the other. When a Buyer/Broker has their first initial consultation with their Buyer most of these types of situations are discussed and should not come up as a total surprise to the Buyer. And just because the agent didn't return your agent's call doesn't make them sketchy... they just may have had a really great offer and the seller was ready to accept it.
I suggest you have a sit down, face to face with your Broker/Agent and be open to their honesty. Find if you both really are doing everything within your abilities to compete then it's going to be a numbers game, patience and perseverance will be needed.
All the best to you.
I wrote about the number of listings in my blog at http://patchadwellblog.com/2012/02/06/where-have-all-the-lis
Pat Chadwell, broker
Realty World - Residential Specialists
408-927-6565 x 11 http://www.patchadwell.com
CRS, SRES, CDPE, CIAS, ePro, SFR
Sure sounds like you are focusing on the "foreclosure market." The sad thing is that this market can be more challenging than people know for any number of reasons. First there's the fact that most banks prefer "cash" transactions with these types of activities and will in many cased accept a lower cash amount than a financed one when multiple offers are involved. Secondly, you could be competing with the listing agent and his personal buyers. In the event the listing agent also has the buyer, the closed transaction will net him/her commision for both sides of the transaction....so many of these sales can result in listing agent sales......the listing agents also often know in advance that a property may be coming in their direction prior to getting the listing and have the opportunity to line up prospects before the listing becomes public.....
With this said, some buyers interested in foreclosed properties that understand the inter-workings of this market will elect to work with agents that are high traffic listing agents....for obvious reasons.
The expression "it is what it is" fits here.......
A real estate agent has a fiduciary responsibility to his buyer or seller. This mean that your agent must place your interests ahead and above the interests of all others, including the agent him/her self. If you feel your agent does not represent you in this fashion, then you need to go and find an agent who will.
How can an agent who represents both buyer and seller truly fulfill his/her fiduciary obligations to both at the same time. Commons sense dictates that both seller and buyer be represented by their own agents to achieve true fiduciary representation.
Many buyers have the mistaken idea that signing up the listing agent to represent them will guarantee purchase of the property. This is simply not true (as you have learned yourself) because first and foremost the listing agent's priority is his/her seller. This means getting the highest price for the property. If the listing agent can get you to keep bidding until he/she achieves the highest price possible then your partnership will have worked. If you are not willing to follow the bidding of the listing agent, then he/she will find another who will despite agreeing to represent you. You will glean that there is no true fiduciary responsibility to you.
I have written a blog on double ending. Please take a minute to read it at this link: http://activerain.com/blogsview/2418517/double-ending-reo-sa
Give me a call if you wish to learn more...408-316-0793 or email me at email@example.com
Hope this helps.
It really doesn't have to be that hard. You just need an agent who's going to work hard on your behalf, both on presenting your offer properly and negotiating a good deal for you.
At my firm, we have a high success rate even with investment properties, which are some of the hardest deals to strike given the often distressed nature of the properties, the high level of competition, the discount required by investors, and the distant sellers (banks). We know what it takes to get deals done.
One home was a regular sale and one was a short sale.
It seems to me, that if I ever want to buy a house I would have to let these shady listing agents be my agent as well so they can get commission on both sides? I don't know if that is how it works, but it sure seems like it.
This is an example:
List price $800,000
Offer $810,000 in writing with (good faith) $20-30k
Listing agent never rejects/or contacts my agent.
House then goes into pending.
Really, Should I let some of these listing agents be my buying agent as well?
Are you making offers on REO's, Short Sales or regular sales? Call me so I can get a clear picture of the situation. I can help....408-316-0793 or email me at firstname.lastname@example.org.
Pacific Century Realty
Buyer Rebates to 50%