Can someone answer some questions on foreclosure purchases?(Details follow)
Hi…I am hoping someone can give me some information on house foreclosure purchases.
1. When browsing basic realty sites (Realtor.com, Trulia, etc) you can see only aerial shots of properties, not the foreclosed house itself. You are asked to subscribe to a paid service and that allows you to see the house. I am sure there is another way to get access to these properties besides having to purchase a subscription to some service. Does anyone know? Do realtors have access to foreclosed properties?
2. When a property is listed on a site like Realtor.com and it is listed by a realtor and says “bank-owned” is there leeway with the price? Is there a percentage below the listed price that is considered appropriate to offer? Is it more difficult to negotiate when a bank owns the property?
3. How do you find an agent that will represent your purchasing interests and not that of the seller? Let me explain. I wanted information on a few properties in one city I was considering. I called a Realty office and asked about four of the listed properties they had. The man gave me the information. Then I said, “Oh…and there were two other houses that I would be interested in…but one is listed by X and the other by Y…could you give me info on those as well?” He said, “Oh…yes, I know the properties you mean….they have been sold.” I took him for his word. I checked recently (about six months after my initial enquiry) and they are still listed and on the market. I realize he wanted to sell his own listings, but isn’t an agent supposed to find you a house that you really want? That’s how it used to be and how it was when I bought houses before. Do I need to get a “buyer’s agent” and what does that actually mean? Do they work on a commission basis…or?
I realize that I may be asking really basic questions…but I just need some clarification.
Thank you so much!
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7 Answers
Buyers Agents do not participate in any way with a commission from the sale. You pay them an upfront fee, and they agree to represent you and only you. Any agent that receives a commission or any part of a commission is representing the seller.
For a better view of some houses, try Zillow.com
There are several sites online dedicated to helping you understand foreclosure sales. This one might be helpful. also try this
Trulia may also be of some help in finding places.
Well, realtors are not supposed only be trying to sell their own listings. They are a piece of crap and going against ethical codes when doing it. Not to mention stupid. If you are an interested buyer they should be happy to get half a commission, it is better than none. The vast majority of houses sold don’t have the same agent on both sides of the sale. I was a realtor, still have my license in FL. Each state is different when it comes to Buyers agents, or Sellers agents, transactional agents, etc. In FL a realtor must give you a disclosure when working with you as to what type of agent they are. Most are transactional agents, so they are equally loyal to the seller and the buyer, and basically have an obligation to be truthful to you, and to disclose if there is anything negatively affecting the property value that they are aware of, and a few other obligations.
As far as the foreclosure, you can try to offer less. Sometimes you can offer their asking price, and it winds up they want more than the asking in the end after they see what the appraisal is. Basically they typically wait for several contracts to come in, and then pick the best one. So you might have to wait a couple of weeks to a month to get an answer about whether your offer was accepted are not. Foreclosures can be a drawn out process, but you can get great deals no question.
Realtor.com, if I remember correctly, has all active houses for sale in the MLS, and also houses that are contigent and pending, properties don’t come off until the sale is closed. So, something can look for sale to the average person looking at the website, but it can e under contract.
If you don’t have a personal contact for the area you want to buy who can give you a referral to an agent they trust, then I recommend calling several till you hit one that is happy to do a little footwork for you, running the MLS for what you want, and sending you an email with all of the listings. I can do Southeast FL for you if you are interested. What parts of the US are you interested in? Also, don’t only look for foreclosures, many properties are good deals right now, and it is much easier to deal with a regular seller than a bank.
@DarlingRhadamanthus If you are interested in foreclosures, you can get lists from banks or contact a real estate agent to show them to you. You will not get anywhere online.
@YARNLADY Not so about buyer’s agents. In the states in which I am familiar with property law, agents may represent only the buyer and MUST be paid via commission as a percentage of sales price. Agents are not allowed to be paid a flat fee. Agents may represent only the buyer, only the seller, or both buyer and seller. It’s all about disclosure and a written commission agreement is mandatory.
@perspicacious Agents can be paid whatever the agreement, at least in FL that is true, and I assume other states too. I have been paid a flat $1,000 for listng, or a flat fee at the time of the sale, a combination of flat fee and percentage, it’s whatever is negotiated. Most states do not allow represenatation of the buyer and seller by one agent, it is called dual agency and is illegal in all of the states I am familiar with. In FL an agent who has both sides of the sale are called transaction brokers, it might have another name in other states.
Hi @JLeslie. We’ve had this conversation before; Florida is obviously different than the states in which I have worked and am familiar with property and agency law. We just have to remember the property laws can be very different. :)
@perspicacious Oh :) what state are you in again? As you said it varies by state. So your information is equal to mine, we need to know what the laws are for the state the OP is interested in.
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