Frustrations of a young home buyer

By
Home Stager with Stage-Show-Sell

We have been watching a young potential home buyer go through a horrible frustrating time trying to purchase a home.

He's lined up his finances and contacted an agent to work with him.  That's the easy part.

The hard part comes when houses have been selected to view and agents don't return appointment phone calls OR the houses suddenly have offers on them.  They have been listed for less than 24 hours and they have offers.   How can that be?

He's discovered that he must look on the public side of the mls several times a day for new listings.  When one comes up he and the agent must be Johnny on the spot to view the property and write an offer immediately.

The offer states 72 hours for the sellers to respond and a week goes by with nothing.  No rejection or acceptance.  Just nothing.  

Two weeks later the listing agent says that he will be submitting the offer to the owners that night and he will be getting back to the buyers agent.  Again nothing is heard.

Another week goes by and they  notice house is now CCS (Contingent Continue to Show) the buyers agent calls the title company to find out IF they know anything.  Well, son of a gun, the offer was accepted and they are waiting for bank approval.

We always that the listing agent should notify the potential buyers agent that the offer was accepted.  Guess not.  They just dont have time with all these short sales going on.

 

Now he sits and waits and waits and waits until the bank either accepts or rejects the offer.  Or wait until he hears from the other agent to say another offer has come in. Or will he let the buyers agent know that another offer came in?

Putting offers in on  houses with short sales is torture.   It's nice that young buyers now have the opportunity to own a me but the rules have changed to where it's very very frustating.

Until the bank responds is he supposed to keep looking at homes and putting in offers until one finally goes to closing??

 

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Stage-Show-Sell, offers affordable home staging solutions in the Birmingham - Bloomfield and surrounding areas in getting your home ready for the market. We service both home sellers and realtors. We have the experience, our own rental furniture and accessories to stage many homes. We specialize in Estate work. The house can be put into our hands for the whole process of getting the house on the market

 

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Ellen Dittman 01/02/2011 03:28 PM
  2. Dan Edward Phillips 01/06/2011 05:35 PM
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Topic:
ActiveRain Community
Location:
Michigan Oakland County
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31 Days of January - New Years Resolution
Michigan Real Estate
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young home buyer
buying homes with short sales

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Rainmaker
160,481
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp.

Basically, the buyers control the seller via a mutually benefited arrangement. If the sellers are not around, then promising the listing agent that their commissions won't be touched will do the trick. I wrote a blog on how to buy a short sale. Let me know if you want me to send you a link. I have only lost one short sale as a buyer's agent because the buyers got smart.

In regards to making multiple offers where a short sale is a contingency, I don't find any unethical issues with it.

Torgie - Comment #30 - I do short sales for other agents. I personally use Google Docs as it sends an e-mail out every time I update the spreadsheet with what I did in regards to the short sale. It's free to use and the agents (listing and selling) love it as well. It reduces the phone calls.

January 02, 2011 05:30 PM
Rainmaker
506,395
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate

Yes short sales are frustrating and a buyer has to be patient and resilient. It does take a certain kind of temperament to get involved in these.  It is what it is and there's not much you can do about it.

I always counsel buyers about the process so they know what to expect. Having said that they can wait it out or walk away.

Patricia/Seacoast NH & ME

January 02, 2011 05:33 PM
Rainmaker
196,125
Barb Merrill
GRI, Associate Broker
Cactus Mountain Properties, LLC

Yep!  Who do you think is bidding on all those Short Sales coming on the market within hours?  It's all the Short Sale buyers out there who have offers on multiple properties that are waiting for an answer back from a bank on at least one of their offers!  Better to go with an REO.

January 02, 2011 06:07 PM
Rainmaker
151,569
Virginia Tatseos
Stage-Show-Sell

Satar, thanks for the explination. I would love for you to send me the link.

I missed Torgie's comment so I'm really glad that you cought it.   Thanks again.

Google docs has been a blessing to my business also. 

Patricia, it's probaly my patience that's getting thin.  Thanks for the advice.

January 02, 2011 06:09 PM
Rainer
37,031
Kimberly Brandon
Smart Moves Real Estate

Wow - I guess I'm lucky - we have a county full of what I consider really great agents - stories like this are few and mean few and far between.  If something remotely like that happens the brokers are alway there to step and and take care of it.  Short sales and REOs are difficult enough with the agents failing to communicate.

January 02, 2011 06:10 PM
Rainer
239,373
Justin Dibbs
REALTORĀ® - Ashburn Virginia Homes for Sale
United Real Estate

All too common in the very active and competitive price ranges.  Very frustrating indeed.

January 02, 2011 06:35 PM
Rainmaker
151,569
Virginia Tatseos
Stage-Show-Sell

Barb, it appears then that the banks are causing a lot of the problems.  There would be no reason to put in multiple offers IF the banks replied quicker.  We do have one good thing on our side in that a lot of the listings will refuse offers from non-occupied owners in the first 155-30 days of the listing.  The banks are trying to get families into homes.  The agents are also refusing offers on listings where the potential buyer has never viewed the home.

Kimberly, Consider yourself lucky.  Michigan is not the hardest hit in the country but it's very close.  Of the 65 listings in the area, wishing to purchase and price range, 65 are short sales or bank owned.

I truly feel for the listing agents.  They work hard and the return is little.  They need to find a way to communicte along the way.

 

This has been the most educational blog that I've read in a long time.   I wish to thank all of you for your input.

January 02, 2011 06:40 PM
Rainer
108,064
Ron T. Weems Jr.
Weems Real Estate Group/N.W.R.E. LLC

Virginia,

Buying a short sale property can be time consuming. This is something that the buyer needs to know and if he would want to go in a different direction if he doesn't want to wait as long.

January 02, 2011 06:44 PM
Rainmaker
151,569
Virginia Tatseos
Stage-Show-Sell

Ron, you are right.  the problem is that every listing, 65 of them, in his price range and area is a short sale or bank owned

January 02, 2011 07:18 PM
Rainmaker
248,292
Carla Freund
Your Raleigh - Cary Relocation Specialist
Keller Williams Preferred Realty

Virginia,

Yes, it is frustrating.  The agents who are listing the foreclosures get so many phone calls and often have so many listing they can't or don't respond to everything.  From my experience, once you get an offer in to the agent, they do respond.  It's getting the information to make the offer that can take time.  If you're not working with a buyers agent, they I believe it can be even more frustrating.

And yes, there are homes selling right away if they're priced right and/or in the right location.

Waiting for the bank to respond can be frustrating.  We're learning which banks have a good process to handle these things and which ones don't.

Perhaps your friends should look for a great home not just a foreclosure.  There are some really great buys out there!

January 02, 2011 07:51 PM
Rainmaker
37,927
Laura Barron
D + B Real Estate - Collin County Texas & Beyond
214-415-5329 www.RealFamilyRealEstate.com

Great post Virginia.  It is so important to educate the potential buyer what to expect with a short sale.  It's sad that the 65 homes that meet his criteria for price all are short sales or bank owned.  Best wishes!

January 02, 2011 07:54 PM
Rainmaker
151,066
Angie Ridley
Broker, ABR, CRS, PMN, WCR, At Home With Diversity, "GREEN" and more
Complete Realty, LLC

this has been going on for 4 years in MI... it is just crazy!

January 02, 2011 07:55 PM
Rainmaker
134,225
Linda Lipscomb
731-695-1118, Lexington TN Homes
Linda Lipscomb RE/MAX Lexington Henderson County TN

Well, I'm in TN and all foreclosure and short sale agents must do business the same way, regardless of state.  Most just have "bad manners".

January 02, 2011 08:53 PM
Rainmaker
538,148
Ginger Harper
Your Southport~Oak Island Agent!
Coldwell Banker Sea Coast Advantage

I am still  working on a short sale and it has been about 4 months now..

Will continue to hang in there...

January 02, 2011 09:32 PM
Rainmaker
151,569
Virginia Tatseos
Stage-Show-Sell

Carla, the consensus is that he keep putting in offers until one is actually accepted by the banks.  It doesn't seem the right way to do things but it's the way it has to be done.

Laura, It's truly sad and it's been going on for awhile and I don't have any idea when it's going to stop.

Angie, my first short sale was over 5 years ago.

Linda, I feel that they should communicate a little more.  I also feel they are buried in business that maybe keeping them above water for awhile.

Ginger, that's scarry.  I've heard of some banks taking a year.

 

January 02, 2011 10:52 PM
Rainer
9,661
Eugene Mezini
Re/Max Premier Inc

short sale + bad communication from cooperating agent = headache. Goodluck!

January 02, 2011 11:41 PM
Ambassador
1,550,626
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

It's such a headache when the agent doesn't communicate.  I am both a listing agent and a buyer's agent for short sales.  They take persistence and communication while keeping the buyer calm and patient.

As to making multiple offers, we can do that here in California with the right language.  The only problem is I feel it makes the offer weaker.  Another possibility is to make the offer valid for a short period of time and then move on to the next.

January 03, 2011 02:21 AM
Rainmaker
449,171
Tim Maitski
The Agent Who Uses "Watermelon Tough" Sign Posts
Atlanta Communities Real Estate Brokerage

Virginia,  I've seen many agents around here say that "serious" buyers only put in one short sale offer at a time and then wait it out.  If you put in multiple offers at the same time you will leave a trail of fire and destruction.  Read this post.

Your post shows the frustration that many serious buyers go through with short sales and why you probably want to make multiple offers and see if any get anywhere in a reasonable amount of time.

January 03, 2011 07:39 AM
Rainmaker
151,569
Virginia Tatseos
Stage-Show-Sell

Christine, thanks for that advice.  It really helps

Tim, Thanks.  It's interesting to see the different opinions on the Multiple Offer game. I'll be reading that soon

January 03, 2011 09:42 AM
Rainer
88,202
Michael Simcock
Elk Grove, CA Realtor 916 425-1084
Coldwell Banker (Elk Grove, CA)

Setting expectations and education is more important than ever. Lots of my buyers are pumped to buy a short sale until they hear about the process. Lots of them are not prepared to wait the process out, especially the first time buyers. If they want to move forward, lots of conversation about the process and that it will take some time.

As far as writing multiple offers, as long as I disclose the fact on the offer here in CA, does not seem to be an issue.

January 03, 2011 10:32 AM
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Rainmaker
151,569

Virginia Tatseos

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