Ann Arbor buyers and sellers, just take out the name Sacramento in the post and add in Ann Arbor Buyer Agents and you will find the truth in this post.
I especially like this statement: "it's getting to the point where 2 out of every 3 offers I receive for my sellers are garbage. They are not real offers. I'm not talking about the expired preapproval letters, outdated earnest money deposits, or missing short sale addendums, because those are screw-ups that can be fixed. I'm talking about offers from those buyers who have little motivation to wait for the bank to approve the short sale."
I just had a Bank of America offer approved on my listing in 30 days, work with a Realtor in Ann Arbor who understands the short sale process.
Buyer's agents are the biggest roadblock to closing a short sale. Buyers, if you've been writing offer after offer on those short sales without success, perhaps it's time to fire your agent. I'll probably get a lot of grief for saying this, but that's the way the cookie crumbles or the pooper-scooper scoops, pick your metaphor.
As a busy Sacramento short sale agent, it's getting to the point where 2 out of every 3 offers I receive for my sellers are garbage. They are not real offers. I'm not talking about the expired preapproval letters, outdated earnest money deposits, or missing short sale addendums, because those are screw-ups that can be fixed. I'm talking about offers from those buyers who have little motivation to wait for the bank to approve the short sale.
Why don't buyers want to wait for short sale approval? Because their agent told them they don't have to. Their agent told them to write as many offers as they can because when they all come back approved, they can have their pick. Why would an agent suggest this maneuver? So the agent can get paid faster. Some agents can't wait months for a commission check because they're not closing deals on a consistent basis. But this is not in the buyer's best interest. This practice is in the agent's best interest. According to the Realtor Code of Ethics, agents are supposed to put their buyer's interests above their own.
If a buyer cannot afford to buy more than one home, a buyer could be breaking the law when writing multiple purchase offers. Does the buyer's agent point out that fact to the buyer? Probably not. Greed and stupidity often go hand-in-hand.
The whining that I get when I call agents on this deception is: "My buyer just wants to buy a home." Well, guess what? My seller just wants to sell a home. Maybe we should put the two of them together? You think?
Some days I am ashamed to be part of this profession. Buyers do want to buy a home, and some want to buy a short sale home. Maybe agents should get out of the way and let them do it.
Photo: Big Stock Photo
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Missy Caulk & Team can be reached at 734-926-9797 or email: Missy@MissyCaulk.com
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It's a catch 22 for the buyers agent. Buyers are anxious to find a home, and they don't know if the short sale will be approved, so they will keep looking. The buyers agent has to work with their client and do what's best for them.
I would tend to blame the banks rather than the buyers agent.
Hi Missy,
Very good point!!! It's too bad, the Buyer's Agents don't have the foresight to see beyond the immediate gratification of the $$$ involved...and the patience to wait it out! ;>))
Wasting time is easy enough all by yourself in a 200 mile an hour real estate day of helping this person, checking up on that one. And then the buyer agent plows in like a china closet bull. Oh oh. Good post.
As with any offer, the lender letter, offer, and at least a promissory note, or alternative money date is necessary to begin any transaction whether it is a regular sale or a short sale!
I personally find this post offensive as a buyer's agent. I have never had clients write on more than one property at a time. I think the biggest roadblock to closing short sales are the banks that take months to respond. It is very difficult for a buyer who wants a new home to sit back and wait without knowing whether their offer will even be accepted and so many may want to consider looking. If the bank made an offer to a buyer and they took 3 months to decide if they want it I bet many banks would go looking for a new buyer too.
When I serve a client as their buyers agent, I do all I can to INFORM them of all aspects. I will never let a buyer write multiple offers on multiple properties. So many buyers are under the impression that they are making offer to the BANK...and I set them straight up front. You are negotiating with the distressed owner - not the bank. I completely understand your frustration that is caused by certain types of buyer agents, but one bad apple can spoil the whole bunch.... We have to educate our clients and if the clients wants to write multiple offers........I send them on their way, as I refuse to do that.
I try to educate my buyers if they decide to pursue a short sale, I'm sure a lot of buyers agents do the same. They get that deer in the headlights look and I know they're not really paying any attention. Then, 3 months later while we're still waiting for a response from the bank, they get antsy and decide to start looking at other options. My job is to represent my buyer, and if they decide they can't or don't want to wait any longer we'll move on.
I have seen this practice of making several offers on different short sale properties expand in our market. Agents tell me they do this and advise their clients on how to do it. It disgusts me.
You won't find me doing this with my buyers. I prefer to sleep at night. Oh, and by the way, my buyers' short sales are going through. Patience and using a skilled agent is the key.
This requires some serious thought. How do you quaify an offer up front? They will tell you they will stay the course, but will they?
I had a buyer drop out on a short sale recently. I found another offer and substituted it at the same price. The Bank never noticed and probably didn't care. We closed.
One of the problems that I have here, Missy, is that despite weekly updates from me to the buyers' agents, they neglect to pass the info to their clients, then the buyers wind up thinking that nothing has been done to get the process even STARTED and decide to WALK! It's SO frustrating! And like Elizabeth said, the buyers agents who tell their buyers that it's not worth their time are giving BAD information to their buyers--especially when there is an experienced short sale agent on the listing end.
Pretty soon, they're going to HAVE to deal with the short sales because that could be all that's out there in another quarter or two!
Missy,
This must be one of the most frustrating situations to all parties. We do not have the number of short sales here like everyone posts about in different areas.
I admire you for taking these on and for getting things done, approval , etc.
Missy ... Thanks for this post, which is likely to get attention about whether a buyers agent REALTOR should advise the client in short situation to present multiple offers on different properties at the same time.
This should be unusual. However, I don't necessarily think it's greedy for a buyer to present offers on multiple short sale situations at the same time. If that buyer strategy is used, it's the buyer obiigation to set that forth in the offer itself that he or she is offering on multiple properties, and that the buyer is only able to buy one property. It's also the buyer agent's obligation to present that same information as soon as possible to the listing agent and seller in a truthful way.
Just my thoughts.
Don't forget about managing buyers' expectations! I'm dealing with a situation right now where an agent told a buyer a short sale would only take a month or so. Not likely to happen. Do you think this buyer stands a greater chance of walking because of this? Yep!
Managing buyer's expectations is huge and lots of buyer's agents have trouble with that. It's a bummer to get to the approval to learn that the buyer's agent didn't have the buyer ready to go.
Some Realtors are their own worst enemies when it comes to short sales. Most do not understand basic procedures and logic. Just look around AR and follow some of the discussions about topics like when to do a short sale inspection. After reading you can come to a quick conclusion of why so many never close!
Short Sales have so much room for good and bad players at every turn. I can completely understand your point that a buyer's agent who isn't playing correctly in the sandbox just makes it worse. Good luck with all of your short sales.