A post by Pacita Dimacali entitled "Bottom-Feeders?" is actually a post about whether short sales or bank foreclosures are better options for investments. One of her commenters is quite opinionated on the subject of "Bottom-feeders", however. This commenter vehemently pushes the idea that agents who represent investors who look for short sale opportunities are flawed individuals with no principles or ethics. As a matter of fact, she outright calls these people "bottom-feeders".
Really? Are we? I am working with a very serious investor now who is looking for short-sale and foreclosure opportunities in Kitsap County real estate. And I love working with this gentleman! I enjoy a challenge, and finding just the right property can be just that -- a challenge. But I am good at it -- we have a property under contract right now.
Does that make me as his buyer's agent a "bottom-feeder"? Is he as the investor a "bottom-feeder"?
When a seller is in a short-sale situation, it is sad. There is no question about that. There are personal and financial tragedies taking place across the country because of the loss in value many homes have experienced lately.
So we make low offers on short-sale properties and the sellers have to deal with that. But let's look at the alternative, shall we?
The home sits on the market for two months with no offers. The sellers lower the price even more, dramatically less than they paid for it three years ago when the market was booming in Kitsap County. He has lost his job and she is sick and needs medical care -- they must sell. No offers after four months. They have received a Notice of Trustee's Sale -- their home is being foreclosed on. By month six, the house is no longer theirs. It is now a bank-owned property after being auctioned on the couthouse steps.
Now, would they have been better off if they had gotten a low offer and done the short sale?
I would argue that investors may actually be helping a seller out of a bad situation. It is not a perfect solution, but it may be the only solution these sellers can get. All you need to do is look at the higher number of foreclosures many areas are experiencing, and you see the proof.
As the investor's buyer's agent, I can make sure that the investor is properly following federal, state and Kitsap County laws and customs of real estate, and help the transaction run more smoothly. Having a real estate agent involved in a short sale in more likely to result in a closed sale than if the buyer and seller were doing it on their own. So perhaps I too am helping the seller out of what could be a much worse situation. Think about it...
If you'd like more information on investing in real estate in Kitsap County, or would like lists of short sale and foreclosure properties in Kitsap County, please call me at 360-689-6836, or email Marlene@RealtyStationInc.com
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Marlene serves buyers, sellers and investors in all areas of Kitsap County. As the wife of a US Naval Officer, she prides herself on helping other military families at Naval Base Kitsap.
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Marlene: don't even give it a second thought. Investors will buy. They need a good agent. It may as well be you. This agent who made that cooment was probably foreclosed on recently, and has an axe to grind.
Short sales are, indeed, sad, in some cases. However, my question is, "How did these people NOT see this coming?" Just because you get approved for a specific amount, DOES NOT mean you have to buy at that amount. People know their financial situation and know what they can afford. If they don't understand their finances, maybe they SHOULD NOT buy ... until they do.
I have a short sale property and I feel that I'm really helping my sellers avoid foreclosure which would be far more devastating and cause them problems for many, many years to come.
I feel that if no one else is making an offer on a house and the investor offers a low but acceptable offer then that is what someone is willing to pay...its nog bottom feeding.
Definitely not bottom feeding. I represent a lot of investors in purchase and sale. Foreclosure and short sale are sad, no doubt about it, but if no one bought those properties it would be even sadder. I like to think my investors improve communities by taking distressed properties and making them beautiful again to attract new homeowners.
I don't see short sales as bottom-feeding. It's just another solution to a specific situation. It requires more skill than just your every day normal transaction. Folks always down what they don't understand. Keep up the good work Marlene!
Marlene,
Excellent points. We live in a "free market" economy. Or at least mostly. When we make an offer on a short sale we are serving the seller, the bank, the buyer, the neighborhood and the local economy.
List and Sell (short sales too) Gary @ RentonHomeFinder
LOL at Mike!
Lin, although sometimes it was a bad financial decision for homeowners in foreclosure, there are also many cases where the circumtances were not in the owners control.
Scott, Thanks for the support, but I have to disagree with you about the number of Active Rain agents who are "guilty" of pushing clients into a bad situation. I will say that many agents around the country probably were guilty of this. However, in my experience, the agents on Active Rain that I have interacted with are of a higher-caliber than many other agents in this country.
Laura, good for you! I hope that you get it sold and the bank accepts the offer.
Chuck, I tend to agree with you.
June, that is something I hadn't thought about, but you are right. In a way, investors do help their community too.
Eugene, you are right, many people will bash something they don't understand or things they are afraid of.
Gary, exactly - a free market economy. If no one buys the house at a high enough price to satisfy the sellers debts, well, then...
Investors keep the cycle moving. Selling when it's hot and listings are short and buying when buyers are few and far between. If working w/ investors means you're a bottom feeder, then I'd say it's only because the table was turned LOL!!
LOL, Colleen, many people who did not or could not take advantage hate it when others do!
Marlene, the playing field is level and there are no bottom feeders in a free market system. All market systems require a buyer and seller and each thinks they are receiving more benefit than the other. I agree with you!
Shame on those that think the agents pulled one over on the buyers during the boom! (unless the agent forged signatures)
I just posted an article along this line that explains why the foreclosure and REO market in my area is really a tough place to work. Getting a deal to close here in Central Texas with a bank is very difficult.
Marlene ~~ I'm totally with you. Your job is to represent your client to the best of your ability. You (or your client) had nothing to do with the seller's circumstances. Market opens doors and opportunities. And, this sale is what the seller need right now, really!
Mark, it is difficult to blame any one entity or group for the issues facing some homeowners today.
Steve, I think that the banks re realizing that it is in their best interests to work with us on these deals, but so many of them didn't plan ahead and they re really overwhelmed. It certainly does make it difficult.
Marzena, I agree. A free market economy, capitalism, it's worked for America for a long time.
A deal is a deal if two parties agree. Buyers make the market, not sellers or name callers.
Robert, I like how you put it, especially the last phrase!