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Old 06-10-2010, 08:05 PM
 
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We don't have an agent and found a short sale we are thinking of making an offer on. Is there any savings to us for not having an agent? Is there any reason we need one? And can we decide what escrow company to use? Also, do banks tend to go with cash offers even though there are higher non cash offers on the table?
Thanks!
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Old 06-10-2010, 11:27 PM
 
Location: Columbia, SC
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Get your own agent. You don't want to go into a short sale representing yourself or in dual agency. Hire someone who's familiar with ss and ask how many they've closed, recommended contingencies to make sure you really get someone who knows them.
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Old 06-11-2010, 12:23 AM
 
2,039 posts, read 3,676,387 times
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Quote:
Originally Posted by CheckingThingsOut View Post
We don't have an agent and found a short sale we are thinking of making an offer on. Is there any savings to us for not having an agent? Is there any reason we need one? And can we decide what escrow company to use? Also, do banks tend to go with cash offers even though there are higher non cash offers on the table?
Thanks!
There isn't going to be any savings for you by not using an agent.

You need someone who knows the right questions to ask, such as is there just a 1st or both a 1st and a 2nd? Who are the loan servicers for each loan (I heard BofA is terrible to work with)?

Other things like how long is your earnest money tied up before you can get it back if the deal runs on forever.

You can ask to use a specific escrow company, but I've found that some agents will complain since they like working with certain people. Either way, you're the buyer, push for what you want.

I've heard that cash offers are trumping everything else lately, but realistically I think it depends on what type of financing you're going in with, if it's FHA/VA, forget it. If you have a reasonably higher dollar value better conventional offer with 20% down and the price you're offering is supported by the comps then I would think you'd have a good chance. Just my guess though.
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Old 06-11-2010, 12:32 AM
 
10,876 posts, read 12,944,959 times
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Quote:
Originally Posted by WestieJeff View Post
There isn't going to be any savings for you by not using an agent.

You need someone who knows the right questions to ask, such as is there just a 1st or both a 1st and a 2nd? Who are the loan servicers for each loan (I heard BofA is terrible to work with)?

Other things like how long is your earnest money tied up before you can get it back if the deal runs on forever.

You can ask to use a specific escrow company, but I've found that some agents will complain since they like working with certain people. Either way, you're the buyer, push for what you want.

I've heard that cash offers are trumping everything else lately, but realistically I think it depends on what type of financing you're going in with, if it's FHA/VA, forget it. If you have a reasonably higher dollar value better conventional offer with 20% down and the price you're offering is supported by the comps then I would think you'd have a good chance. Just my guess though.

On the buyer's end yes its free to use an agent, but not using one will save the seller a good chunk of change, often making them more willing to accept a lower offer.
Also cash has been, and always will be king. If you are buying cash then i would skip the realtor, but if you are not, it can get messy with the loan process and a realtor would be a good thing to get
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Old 06-11-2010, 12:40 AM
 
78 posts, read 239,443 times
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Thanks for the responses. The owner of the home is a realtor but since it's a short sale they are not the listing agent, although someone they work with is the listing agent.
So far we have been discussing everything with the owner (which is super nice and helpful). They have experience in short sales and said they can get this through in 6 weeks. There are 2 other offers on the property, to which we know nothing about (although I wish we did). Is there a way to use the owner as our realtor because they have been dealing with us all along, would it be smart?
Thanks!
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Old 06-11-2010, 12:49 AM
 
78 posts, read 239,443 times
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Originally Posted by TempesT68 View Post
On the buyer's end yes its free to use an agent, but not using one will save the seller a good chunk of change, often making them more willing to accept a lower offer.
Also cash has been, and always will be king. If you are buying cash then i would skip the realtor, but if you are not, it can get messy with the loan process and a realtor would be a good thing to get
Thanks. With cash offers how do you know what is a good offer being that it is superior?
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Old 06-11-2010, 12:53 AM
 
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There really is no way to find out what (if any) offers are on the table and I wouldn't deal directly with them as they are going to do what is best in their interest, not yours, especially because this is a realtor owned investment property.
The key is are you cash or fiance? Cash will put a ton of power on your side, finance may make them wait to see if it comes through (like they may be doing with the other "offers")
It's a big card game where the realtor may be bluffing to get a higher offer out of you. Don't let them know this is your dream house if it is, just throwing an offer while you have your eye on numerous others is the way to go.
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Old 06-11-2010, 01:02 AM
 
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We are cash. Uggh this is so confusing and frustrating. They have told us that a while back they tried to have a investor by the property from the bank and the bank said it would only take what it's being listed at now so they decided to short sale it.
What does the owner have to gain from it selling higher?
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Old 06-11-2010, 09:30 AM
 
Location: Tempe, Arizona
4,511 posts, read 12,823,037 times
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Quote:
Originally Posted by CheckingThingsOut View Post
We are cash. Uggh this is so confusing and frustrating. They have told us that a while back they tried to have a investor by the property from the bank and the bank said it would only take what it's being listed at now so they decided to short sale it.
What does the owner have to gain from it selling higher?
First, you should follow Brandon's advice above and get your own agent that has experience with short sales. You need to know how they work and how to protect yourself contractually.

The owner gains because the higher the selling price, the lower any possible deficiency judgments they may face from the lien holder(s). It also increases the possibility that the lien holder(s) will accept the short sale offer.
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Old 06-11-2010, 11:13 AM
 
Location: SF Bay Area
1,290 posts, read 1,922,675 times
Reputation: 816
You should always have an agent as a buyer. Don't go into a contract blindly. They know the ins and outs of closing on a sale. Besides you don't have to worry about paying your agent because they get paid by the sellers.
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