Comments on: No light at the end of our short tunnel. http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/ A San Diego Real Estate Web Log Fri, 30 Jul 2010 07:03:29 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Kris Berg http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/comment-page-1/#comment-159831 Kris Berg Tue, 19 Aug 2008 13:08:05 +0000 http://sandiegohomeblog.com/?p=805#comment-159831 Thomas - One of our required input fields is "subject to bank approval" (yes/no), and we have to put a note in the confidential remarks along the lines of "approved commissions to be split equally between listing and selling agent." You bring up a good point - Strictly speaking, this is conditional, but in practice, we simply don't know what the commission is going to be until the lender approves the contract. I see your point, but this is how it is working in practice. I doubt that the "no conditional offer of compensation rule" envisioned the reality of our market today. Thomas – One of our required input fields is “subject to bank approval” (yes/no), and we have to put a note in the confidential remarks along the lines of “approved commissions to be split equally between listing and selling agent.” You bring up a good point – Strictly speaking, this is conditional, but in practice, we simply don’t know what the commission is going to be until the lender approves the contract. I see your point, but this is how it is working in practice. I doubt that the “no conditional offer of compensation rule” envisioned the reality of our market today.

]]> By: Thomas Johnson http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/comment-page-1/#comment-159806 Thomas Johnson Sat, 16 Aug 2008 14:16:05 +0000 http://sandiegohomeblog.com/?p=805#comment-159806 We have yet to see a short sale transaction of our own that didn’t involve an arbitrary, eleventh hour pay cut to the agents. On your short sale listings, how do you avoid the unconditional offer of compensation to co-op agents? In our MLS all offers of co-op compensation are unconditional, so if the bank cuts the commission, the listing broker is still on the hook for what was offered. It puts us in the position of having to pay to play with the banks. Does Sandicor have conditional co-op based on what the bank pays? We have yet to see a short sale transaction of our own that didn’t involve an arbitrary, eleventh hour pay cut to the agents.

On your short sale listings, how do you avoid the unconditional offer of compensation to co-op agents? In our MLS all offers of co-op compensation are unconditional, so if the bank cuts the commission, the listing broker is still on the hook for what was offered. It puts us in the position of having to pay to play with the banks. Does Sandicor have conditional co-op based on what the bank pays?

]]> By: Kris Berg http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/comment-page-1/#comment-159782 Kris Berg Wed, 13 Aug 2008 17:41:02 +0000 http://sandiegohomeblog.com/?p=805#comment-159782 Very well said, Phil, and spot on for the San Diego market as well. Very well said, Phil, and spot on for the San Diego market as well.

]]> By: Phil Hoover http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/comment-page-1/#comment-159780 Phil Hoover Wed, 13 Aug 2008 15:18:44 +0000 http://sandiegohomeblog.com/?p=805#comment-159780 Hi Susan - I'm in the Boise market, so my comments may not be valid where you are. REO properties in our market are not necessarily the great deals everyone thinks they are. Just because someone lost their home doesn't mean it's a great deal. In our market, the first thing the lender does after foreclosing is shut off all utilities, which results in the loss of $10-20k of landscaping in our 100-degree summers. Plus, few foreclosed homes are left in top condition by sellers who want to "get even" with the evil lender who loaned them too much money on loose underwriting terms. In my experience, it's better to find a home that meets your needs, is in good condition, and owned by a motivated seller who has enough equity to negotiate a fair deal. Alternatively, you can often negotiate a good deal on a new spec home that has been sitting for awhile. Hi Susan -
I’m in the Boise market, so my comments may not be valid where you are.
REO properties in our market are not necessarily the great deals everyone thinks they are.
Just because someone lost their home doesn’t mean it’s a great deal.
In our market, the first thing the lender does after foreclosing is shut off all utilities, which results in the loss of $10-20k of landscaping in our 100-degree summers.
Plus, few foreclosed homes are left in top condition by sellers who want to “get even” with the evil lender who loaned them too much money on loose underwriting terms.
In my experience, it’s better to find a home that meets your needs, is in good condition, and owned by a motivated seller who has enough equity to negotiate a fair deal.
Alternatively, you can often negotiate a good deal on a new spec home that has been sitting for awhile.

]]> By: Susan http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/comment-page-1/#comment-159755 Susan Tue, 12 Aug 2008 02:41:53 +0000 http://sandiegohomeblog.com/?p=805#comment-159755 Phil - I feel like I'm in the same boat. I\'m wondering if the current offer on a short sale my husband and I made an offer on 2 weeks ago would work out better if it was an REO listing. But I've found with REO listings that those homes go FAST...sometimes in a couple of days. By the time I get my realtor out to see the house, it already has multiple offers or has just closed seconds before we called on the listing. Phil – I feel like I’m in the same boat. I\’m wondering if the current offer on a short sale my husband and I made an offer on 2 weeks ago would work out better if it was an REO listing. But I’ve found with REO listings that those homes go FAST…sometimes in a couple of days. By the time I get my realtor out to see the house, it already has multiple offers or has just closed seconds before we called on the listing.

]]> By: Phil Hoover http://sandiegohomeblog.com/2008/08/11/no-light-at-the-end-of-our-short-tunnel/comment-page-1/#comment-159753 Phil Hoover Tue, 12 Aug 2008 00:35:59 +0000 http://sandiegohomeblog.com/?p=805#comment-159753 Hi Kris ~ I am now enmeshed in the 2nd short sale of my 36-year real estate career. And that's only because it's my daughter's home. We have an offer and have submitted to WAMU for approval. My daughter keeps calling their 800# and talking with fascinating guys with foreign accents who claim to be "Bob", "Jim", or "Joe". Some of the toll-free numbers she calls are disconnected. To make things more interesting, the buyer is using one of those programs where the seller pays the buyer's down payment and that program goes away 10/1. We're supposed to close 9/19 (in my dreams!) Maybe I can get the REO listing after WAMU takes the house back at a $91k loss? But, I would rather deal with intelligent life and actually have a chance to get paid for my time and aggravation. Hi Kris ~
I am now enmeshed in the 2nd short sale of my 36-year real estate career.
And that’s only because it’s my daughter’s home.
We have an offer and have submitted to WAMU for approval.
My daughter keeps calling their 800# and talking with fascinating guys with foreign accents who claim to be “Bob”, “Jim”, or “Joe”.
Some of the toll-free numbers she calls are disconnected.
To make things more interesting, the buyer is using one of those programs where the seller pays the buyer’s down payment and that program goes away 10/1.
We’re supposed to close 9/19 (in my dreams!)
Maybe I can get the REO listing after WAMU takes the house back at a $91k loss?
But, I would rather deal with intelligent life and actually have a chance to get paid for my time and aggravation.

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