Over the last few months, I have shown a number of short sale properties to buyers.  Because receiving the government tax credit required a contract by April 30th, most of my customers elected to only consider arms length transactions without a bank being involved. 

In one instance, a customer made an offer a short sale property 93% of the list price and requested all closing costs.  I had advised against this due to their time frame.  They waited 70 days without a response from the bank and finally were forced to shop for another property to avoid losing the tax credit.  According to the listing agent, the bank ignored the offer because it was below the listing price.

Recently I had another customer who had their home in Alabama under contract and are to close May 28th.  We looked at many homes in Tallahassee, and finally found one with a motivated seller. The home was priced well at $120,000, was a great value for the neighborhood, and in better condition than the competition.  We found this on April 30th and I understood from the listing agent the home had high activity.  I understood that to mean there would probably be other offers.

The buyers liked the property and wanted to make an offer.  I told her this was a great buy due to the low list price and in good condition.  I explained to her that this was the last day of the tax credit.  The buyers decided to make an offer $5,000 below the listed price and request $5,000 in closing costs, contrary to my recommendations.  The offer was submitted at 6:00 that afternoon, and by 8:00 that evening, I had a call that the contract was rejected as one had been submitted and accepted at $120,100.  The buyer was very disappointed. 

As a home buyer, you should trust your agent and their expertise.  If you do not trust the agent you are working with, cancel your agreement and find one you trust.  Trust your agent’s expertise and knowledge of the market if you truly want a property. 

Once you have found a property of interest, your agent should do some research to find out comparables and the current market in that particular area.  Once your agent has done that, they should make some recommendations to you on a pricing your offer right.  Look at the research and listen to the agent.  Once you have done this, then it is up to you whether you feel comfortable with the agent’s recommendations.  

There are many properties on the market today that are priced to sell.  The owners need to sell for various reasons, such as, a transfer, a job loss, a pay cut or a mortgage that has adjusted to a higher rate and now the payments unaffordable.  Many Sellers are upside down and are required to get bank approval after accepting an offer. 

In summation, if you are seriously in search of a property to buy, have confidence in your agent and their recommendations.  Consider the market conditions and make a reasonable offer on a property you want.  Trust and listen to your agent.  You will have a much better chance of finding the right property with the right agent.

Jay Novak
(850) 386-2001

Post a Comment

(850) 378-5727