Satar Naghshineh

LISTING AGENTS BEWARE! THE FHA BUYER PURCHASE TRICK!

This also could be titled "How to secure a home for a FHA buyer!". This blog is about housing markets where competition among starter and low end homes is fierce.

So there is a property that is listed at 390k. Low end comps at 380k and high end comps at 400k. The FHA buyer's agent makes an offer for 410k!

Wow, that is just great and your clients get excited. Ignoring the lower offers that the conventional and cash strong buyers gave, you enter into contract with this FHA buyer as it will net your clients more....or NOT!

Guess what, the appraisal comes back at 395k. The FHA buyers do not have more than the 3.5% needed to get the loan. So they re-negotiate the purchase contract at some number (usually appraisal price) and proceed to close at the lower price.

So what has this FHA buyer done?:

1. They eliminated competition.

2. They eventually got the property at or near appraised value.

Make sure that the FHA buyers you come across have more than 3.5% down and are willing to waive the loan and/or appraisal contingency upfront (if they exists).

Have you guys seen this? I've seen it on the listing side and buyer's side as we compete in our local market against other buyer agents.

If You Think That Your Short Sale Owner Is a Retail Owner, then Refer Them Out!

Dear Southern California short sale agents. Have you obtained a short sale listing in which your clients will not:

1. Clean up their home?

2. Be flexible on showings?

3. Allow lockboxes or signs?

4. seem reasonable to you?

Well then, please do the right thing and refer them to an agent who knows what they are doing. One that understands the mentality of someone who is in a foreclosure situation.

Dear Southern California Short Sale Owners. Don't hire the wrong agent to do your short sale!

Do they want you to do one or more of the following?:

1. Keep your property clean?

2. Make you leave when buyers are visiting your property?

3. Want to put a lockbox and sign on your property?

4. Make repairs?

5. Maintain the property and lawn?

Are you facing foreclosure, stressed as it is and now facing the stress of selling your property? If you are in that position, I understand you and I will not put you through the stress of conducting a short sale. Let me teach you how a short sale will benefit you, both financially and emotionally. My clients live their life without the hassels of selling their property.

It Might Be an Irvine Short Sale, BUT You're still a BARNEY!

So the story goes...

It's a busy Monday morning. I get a call from one of my buyers. He's excited, a new listing came on the MLS and he tells me that it is listed very low and he wants to see it TODAY! I said that I will look into it and call him back.

The listing is a condo that is located on a four level complex next to Irvine Valley College and there is no view. So basically every unit will be relatively the same price for the same floorplan. Before I even look on the MLS, I have this gut feeling that this property is listed by a Barney short sale agent. Sure enough, it is listed as a short sale by "Stupid & Dense Reality", a private brokerage, who should not be doing short sales! A quick comp check tells me that this unit is listed 25% below the other sold and active comps. However, I give this agent the benefit of doubt and call to see if they are using a comp that I did not see.

Calling the agent, she informs me that the unit has many upgrades and will show very nice. I said I can appreciate that the owners have maintained it well, but where did she get the purchase price from? Was there a comp that will support her list price? She responded that it is a short sale and that the price should reflect that. She also stated that it is a great deal as the other units are listed and sold at significantly higher prices.

I could have spent time to educate this agent that her list price does not mean that the lender will accept the sale, especially since the BPO will have access to the same comps we have. However, I said "thank you" and hung up the phone. I called my buyer and set his expectation correctly. I took the time to explain how short sales work and that I will have no issues writing an offer at that price, but don't be disappointed when the bank rejects the offer or counters closer to market value.

Agents like this only make our jobs harder. They give buyers a false sense of value. They waste our time by looking into properties listed at a price in which comps will not support. If you are an Irvine California buyer considering purchasing an Irvine Short Sale, make sure your agent is not a Barney! Work with only the best!

BARNEY © 2000 Lyons Partnership, L.P. All rights reserved. The Barney, Baby Bop and BJ names and characters, and the overlapping dino spots and Barney and star logos are trademarks of Lyons Partnership, L.P. Barney, BJ and the Barney and star logo are Reg. U.S. Pat. & Tm. Off.

You Just Got A Short Sale Listing...Do you spend time and money to market it?

Sally & David Hanson wrote a great blog about short sale marketing. You can read it by clicking here!

Very interesting blog about marketing your short sale listing. Obviously, Sally and David Hanson made very good points about their opinion as to why an agent should market the property. Their main point is that regardless if this is a short sale or a retail listing, an agent should put together a marketing plan to try to sell the property.

I, on the other hand, come from a different opinion. I just use a pricing strategy. Lower the price on a scheduled basis and the property will eventually get an offer. Unfortunately, because of my opinion, the reputation of my company was questioned. I want to display the response and answer the argument here, on this blog:

THE COMMENT FROM Russel Ray, San Diego home inspector (Russel Ray, Property Consultant):

Wow. Amiri Property and Financial Services Corp. is a great example of why one needs to check references. That's the kind of attitude that does the realty profession harm in the public's eye:

* just put it on the MLS, keep it as clean as possible.

* When it is BPO time, put the sign on the front lawn, remove the lockbox and keep it a mess!

* That's one of the benefits (in my opinion) to a short sale listing. No marketing.

* Their house will eventually go under contract and get sold (even if the grass is 5 ft tall!). ;)

As my wise old grandmother would say, "Mamma mia!"

I wouldn't hire them if they were the last company on Earth.

THE RESPONSE:

Russel - You are more than welcome to your opinion. Sally (I assume) and I sometimes do have differing opinions on short sales. Regarding this subject, it's really a matter of opinion. I think it is unwise to spend money on marketing of a short sale listing in which you really have no control of it's outcome. I also don't believe asking the sellers to spend any money on their efforts to sell the place. Priced right, the listing will eventually get an offer. I base this on the fact that I never lost a short sale because I didn't have a buyer in place AND of my personal belief that my clients should use their money to help with their move and not to maintain a property which they will soon lose.

Would you do a home inspections if I were to pay you based on the outcome of your report? In other words, would you work for your clients when there is no certainty that you would make money? Knowing that there is a chance that you won't get paid, would you pay to turn on the utilities before you get there so that you can inspect the property properly? I'm already risking my time and efforts on a transaction that I have no idea on how it will end up. I am not going to spend money or have my clients spend money to make repairs or market it.

Finally, I hate to lower myself in order to make a point, but I read a post of yours where you complained about one of your clients and made disparaging remarks about her. Wow, insulting your clients behind their back while pretending to be a professional! Russel Ray Home Inspections is a great example of why one needs to check references. That's the kind of attitude that does the home inspection profession harm in the public's eye. I wouldn't hire them if they were the last company on Earth.

Would that be a fair assessment of your company? When debating short sale marketing, try to stick with the discussion at hand without resorting to ad hominem attacks. Take care.

THE QUESTIONS:

WHAT MARKETING, IF ANY, DO YOU DO FOR YOUR SHORT SALES?

DO YOU INCUR COSTS? IF SO, USUALLY HOW MUCH AND WHO PAYS FOR THESE COSTS?

IN YOUR OPINION, DOES THE TIME AND EFFORT PAY OFF? ESPECIALLY THOSE OF YOU IN DEFICIENCY STATES.

VICTORY IS MINE!!!

A few days ago, I came across some bad information on Active Rain and on the web. The subject matter was about short sales (something I love to talk about and do). The bad information that was circulating was stating that agents could not short sale their own properties. This statement is FALSE! Some of the Active Rain blogs even plagiarized another website. I alerted the blog owners via their blogs that they were giving bad information and plagiarizing a website word for word while claiming the material as their own. Only 1 blog owner responded by deleting their blog. The others just deleted my comments. My personal philosophy is to live and let live so I never reported these blogs to Activerain. Only one blog did not plagiarize the website but flat out made false statements. In trying to correct this blogger, I failed. However, I claim overall victory for being able to stand up for my beliefs and provide facts, even against the very same people who state that they do short sales!

Thank you to the people who sent me e-mail and commented on my blog:

http://activerain.com/blogsview/1176491/an-agent-can-t-short-sale-thier-own-home-huh-

Search words: can I list my own short sale, do my own short sale, can an agent list their own home, can an agent list their own property, short sale my own home, short sale my own property.