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Is this normal? Before I part ways I want to make sure about the real reason. We are first time buyers and this is our first realtor EVER.
Some of her explanations are those are diffucult, nobody knows the real price, takes long-time, since you are looking at saler's concession for closing cost, it make them difficult, most importantly while in the process they may go to foreclosure and soon.. I just couldn't take that explanation. I can understand if short sale will be a problem with FHA loan (that's where it looks like we are going). But given the fact that our county is flooded with short sales why shouldn't we be able to try? We certainly have the time in our hands. We are not in hurry to buy at all just trying to take advantage of the excellent choices we have right now.
As always, your insight is greatly appreciated.
If I were you, I'd switch to a different realtor. In my area short sales are the only things that are priced affordably. Some are beaten up and some are in excellent condition. You really never know until you visit it. Some are handled by expert short selling agents and some are handled by novices.
I actually just put an offer on a short sale today. It's going to take a while to get an answer so you must be patient. The market isn't going anywhere. If something goes wrong then you're out all the time it took to work on that short sale. However, more choices will have appeared on the market and prices will likely have fallen further. If you find what you like, go for it. Don't disqualify it just because it's a short sale or foreclosure. Those are a fact of life in today's market.
What your agent might be afraid of is that short sales can be sort of a minefield. If the seller had PMI the short sale won't happen. If the seller had a piggy-back loan then the bank will likely be eager to dump the property. There are a lot of hidden pitfalls. However, you're supposed to be paying the agent to navigate through all these. If they won't do it, then someone else will be glad to do it.
In colorado a short sale is no more "work" for the realtor but there are drawbacks for the buyer. I have sold short sales and you can get a good deal but acceptance (a simple response to your offer) may take 3-4 MONTHS. If you are a buyer who is needing to more within that amount of time or your approved loan will not be valid at the same terms, a short sale may not be for you. Understand that the 3-4 month period is just a response to your offer - after that will come inspections, final loan approval, etc. All this is not to say you shouldn't look at a short sale. But in this market - there are plenty of bargains without the strings of a short sale.
Actually on buyer side, for all you folks saying this, short sales are not more difficult. On the listing side, they are more difficult. Foreclosures are worse on the buyer agent side that short sales. Especially VA, HUD, or FNMA.
The only time I've discouraged buyers from a short sale is the ones that are needing to close in 30-45 days because that ain't happening in a short sale. Is it possible the OP fits in this category? There could be other reasons the agent is discouraging a short sale than paperwork.
Actually on buyer side, for all you folks saying this, short sales are not more difficult. On the listing side, they are more difficult. Foreclosures are worse on the buyer agent side that short sales. Especially VA, HUD, or FNMA.
The only time I've discouraged buyers from a short sale is the ones that are needing to close in 30-45 days because that ain't happening in a short sale. Is it possible the OP fits in this category? There could be other reasons the agent is discouraging a short sale than paperwork.
No, we are not in hurry at all to buy a house. That is the very reason I am looking at short sales. Since there are a lot of goog looking deals we said why not try. If it close in 3 month OK. Five month, OK. I actually wanted to wait for a year or so but my wife talked me into it there may be some great opprtunity as far as selection goes NOW. Otherwise, we are happy renters. Just over the weekend we drive through some breathtaking places we couldn't even dream it few years back.
Again, our prenciple is if we can get a great deal that we can afford we will buy now but happy to wait.
Unfortunately, that is the new wave of the market right now. It is helping seller's negotiate with the bank on a below loan price that they are willing to take to avoid true foreclosure and help their credit. As these are becoming more of a reality, agents/sellers/banks are working together to market their home at a price they are willing to take. Some short sales have already negotiated with the bank and have the paperwork done and that is most of the battle. They are just waiting for a contract. If the short sale has not negotiated the final price with the bank you can be waiting for awhile to get an answer and close the deal. Some banks are getting better now at getting answers back. I wouldn't rule these sales out entirely. Investors are jumping on these now when they know they come available.
Foreclosures, are already ready to go. There is no waiting, etc. Sometimes you see these actually come in below what the short sale price would have been. It really depends on the home you are looking at and what best fits for you. I personally would keep all my options open to everything on the market and find an agent who does both.
Good Luck...
If I buy a house that is a short sale and I ask my agent to put an offer in for say 126,000 when the house was just reduced to 136,000, should I even ask for seller concession and why would the bank give a seller concession
The bank would not give the home away because they have a price point they need or they will loose even more of their customer's money.
However, a short sale is OK to buy but just beware of everything that can be wrong with a home just might be wrong with the one you feel is the right one for you....No matter what I would like to see the buyer get a formal home inspection before pruchasing or prividing a binding offer..
If the owners of the home (the bank) had any gumption they would attach a 1099 to the former owners IRS statement so the former owners would not be getting away with anything and will have to pay the difference of what the home actually sold for and what the former owners owe......
The one who skips out of town on a forclosure has arights and if their rights seem to be saying they should just leave then they too need to be presented with a IRS 1099 for the difference in the home to what it actuallyu sold for.....Seems like a shame but people like me and some of my neighbors are the ones who actually are the ones who get hurt by short sless nd foreclosers. It just brings the price of our homes downward.
Yes I am angry because the guy across the street from me refinanced to $280k and just left his home 6 months later. Not only that but he tried to get a tennant to pay him for something he didn't even own.......I am also sorry to say he was a veteran and a wanna-be pilot........His home sold for $177k and he should be given a IRS statement of income change -1099 -for the difference so he is really going pay (the difference of ($103,000) for what he pocketed I consider he stole from those good people who are still in their homes and struggling or those good people who have their money with the bank that is foreclosing on him. I say "He belongs in jail".
We just had our home appraised so we can refinance at a lower rate and we paid $422,000 for it 4 years ago and it is now appraised at $225,000. We are not going anywhere but whould like to see people who are "working the system" get their due. We also feel apathetic towards those people who could not afford to stay in their homes but purchased something they could not afford in the get go.... Why buy a home using promises of those crazy baloon mortages.....
It is SSSSOOOOOO not about what your agent wants. Your agent is required to do what YOU want to do. Short sales are a pain in the butt because they take a long time to close but the bright side is your more likely to get a home that has been maintained. If it's vacant, the seller is still available to answer questions about maintenance unlike foreclosed properties.
Sounds like the Realtor doesn't want to wait on a paycheck or has the patience to deal with them. Sometimes they don't go through but usually it is because the agent doesn't know how to navigate the short sale process.
Interview agents and find out how many they have done.
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Short Sales
