I am in the process of purchasing my first home and a few properties that I have come across have been short sales. These properties are still on the market right? Why don't they want to show them to me?
2007-07-24 22:00:25 · 8 answers · asked by norcalhustle 1 in Business & Finance ➔ Renting & Real Estate
First, many short sales are not on the MLS, they are for-sale-by-owner. Realtors don't work for free...by a property being listed on the MLS, they know that there is a commission agreement built into the listing...this is not true with all short sales. Unless you are willing to pay your Realtor, if the seller is not willing to pay the commission, then you will have to pony up...and they know you are very unlikely to do that.
Second, short sales are difficult transactions and it can take a week or more just to negotiate the offer, because the mortgage company loss litagation department has to approve the offer...not the homeowner.
If you have told your Realtor that you would need closing costs paid, would expect some repairs to be made before you buy.....these are not things that you will get paid for if you buy a short-sale.
Not every property that is "on the market" will pay a Realtor commission. Realtors also work for a broker, and the broker is who dictates what kind of commission would be needed in order to make the transactions worth their while.
Remember that Realtors are self-employed, out of the 50% of what commission is getting paid out, they have probably spent a fortune in gas, meals for you, they pay MLS dues every month, to the brokerage, the biggest is they have to buy their OWN private health insurance, Errors and Ommission Insurance, they get taxed at about 30%, they have to pay an accountant to file quarterly taxes....once you break that down....what makes it to their bank account is very little for some transactions.
2007-07-24 22:22:40 · answer #1 · answered by Expert8675309 7 · 1⤊ 0⤋
The commission is generally not shorter then 2.5% on a short sale, the agents are not worried about a few bucks.
Short sales are as is, full asking price sales, they generally require prequalification from the owning bank (not financing though). This is a problem for many buyers.
The other is simply time. They take up to 3 months just to decide if they are going to accept or refuse your offer. Most agents don't want to wait that long to be paid, but more, buyers do not want to wait that long before there is an answer. You can't retract it if you find another house next month.
If you are looking for a home to live in, not a long term investment, then your agent is looking out for you.
BTW, pick one agent, you are going to have trouble if you are using multiple agents. If more then one of them introduced you to a property in anyway tehn all of them are legally entitled to the buyers agent commission.
2007-07-25 03:53:12 · answer #2 · answered by Landlord 7 · 1⤊ 1⤋
Kimberly and Mary are both correct. 'Short sales' many times do not come to fruition, simply because the lender is not necessarily interested in selling UNLESS the terms of the sale suit the needs of the lender. The seller/owner of the property has little input into the final decision.
I think you deserve to KNOW why your real estate agent is not willing to show you 'short sale' properties, and the best way to find out is to ask your agent why he/she is reluctant. My guess is that you will get a good explanation from your real estate agent. Simply ASK the agent. I know of NONE who bite back when asked a question.
2007-07-25 01:25:13 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
Well, our agent just recently decided he will no longer show short sales. We made an offer on one and after thirty-six days of getting nothing but the run around, we found out that the whole time, the bank had been trying to sell the seller's loan and they were just now starting to look at our offer. Its horrible trying to get a bank to come up with an answer, I would suggest not even bothering.
We pulled our offer and are closing on a different home on Tuesday.
2007-07-25 00:03:11 · answer #4 · answered by Kimberly K 2 · 0⤊ 0⤋
they might get a small commission. this is why i HATE some agents.
1 house is 4% commission for them. another is 3%, and 2 of them are only 2%. which one do you think they will persuade you to buy? they will take you to the 4% one first. then the 3%.
also, if a agent is selling 5 houses, and your a buyer, do you think they will show you houses selling by other agetns first, OR the ones they are selling so they can hope to get full commission?
they are not completly honest.
when your a buyer and call a house for sale from the for sale sign, the seller agent will always say" I CAN HELP YOU BUY IT" they really want to represent you ALSO, so they get to sell it AND find a buyer so they get full commision. they will also tell the seller right away what your highest offer is, but if you ask the seller agent what is the lowest they will accept, they will NOT tell you.
does that sound like the ethics they say in commercials " WE ARE HONEST AND WANT THE BEST FOR YOU" they are liers.
2007-07-24 22:09:36 · answer #5 · answered by beach_babe971 2 · 0⤊ 1⤋
It's their job to show you homes that fit your criteria. It shouldn't matter that they are on a short sale. Just understand what a short sale means. You might not have the bargaining power on them like you would on a normal sale.
Whether or not your a caring person, if the short sales results in a balance less than the mortgage amount to clear the mortgage, the difference is charged to the seller as income on his taxes.
2007-07-25 00:10:47 · answer #6 · answered by Alterfemego 7 · 0⤊ 1⤋
The more money they will get, the happier RE agents are; you figure it out.
2007-07-25 05:14:22 · answer #7 · answered by Nancy 4 · 0⤊ 0⤋
I dont know the nature of your problem.... but what i can suggest you at this point of time is visit - www.terabitz.com ... i am suggesting you this on the basis of my personal experience
2007-07-24 23:03:49 · answer #8 · answered by Anonymous · 0⤊ 1⤋