By Todd Clark (Broker/Sales Coach) 503-524-9494
I am in the middle of a
transaction right now and though the
seller doesn’t claim to be the listing agent, it seems every time
something is
done on the transaction it is the owner / agent. I do feel
sorry for her, I’m
not sure what the circumstances are behind the sale, but whatever it
is, my
buyers are worried they are being ripped off.
But, are there things as a buyer
you need to know when an
agent is representing themselves in a transaction? Well,
yes. This person does
have knowledge of real estate that you don’t, but one thing I can tell
you even
though they are representing themselves, they are not getting any
financial
gain from it. (If they do, then they are committing mortgage fraud and
could
end up in jail.)
One of the things buyers
are concerned with in a transaction is the repair
addendum and what to do with the information obtained in the report.
Most times,
when you are buying and REO or a short sale, you are getting the home
as-is.
You need to remember that if these people had money to make repairs,
then, more
than likely, they wouldn’t be in the situation they are in with their
bank. It
isn’t that they don’t want to do the repairs, they just can’t justify
it when
they are already losing their credit, their home, and then to pay you
to take
it from them just doesn’t make financial sense in most situations.
The best thing you can do
as a buyer, when buying a short sale from an agent or
even a regular citizen is to beware and
make sure you don’t take any shortcuts and get all inspections done on
time.
This is really the best way to stay informed and on top of the
situation and
protect yourself. If you have any questions on buying a short sale in
Beaverton
or Tigard, Oregon, don’t hesitate to call or email me.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
Tigard Oregon Homes for Sale, Tigard OR homes for sale, homes for sale in zip code, 97223,97224, Tigard Oregon Realtor, Tigard OR Realtor, Tigard Oregon MLS Search, Tigard OR MLS Search, 1st time home buying expert, short sale expert, avoiding foreclosure in Tigard, helping families home, LivingBeaverton, Townhomes for sale, home for sale, house for sale, Bull Mountain North, Bull Mountain South, King City, Mountainview, Greenburg, Summer Lake Neighborhood, Summerfield neighborhood, Tigard neighborhood, Walnut Grove Neighborhood. Tigard Oregon Real Estate, Tigard OR real estate, Todd Clark, (503)524-9494, WWW.LivingTigard.com, www.IFoundYourNewHome.com, www.SavingyouFromForeclosure.com
©2009 Todd Clark - Originally posted at When an agent ends up selling their own home on a short sale, is it really buyer beware?
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
What if there was a way you could search the MLS for FREE just like Realtors
Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!
Short sales are hell as we all know. When an agent is representing themselves in a short sale, it is almost impossible to negotiate with the bank. The bank wants the seller to pay up, period. The agent is selling the home. The agent owes the bank. The bank owns the home. Tough sell.
In most cases the agents E&O insurance won't cover them when they represent themselves - at least I think. Maybe you should check that out and let them know.
Good luck!
Hi Todd-
I agree that it is always "buyer beware" regardless of who the Seller is. Buyers do need to take the time for their due diligence and that means inspections and follow-up inspections.
--Sara in San Antonio
"Fortunately my feathers are numbered for just such occasions" foghorn leghorn. Caveat Emptor....Hire an agent that is not a principal in the deal...or number your feathers
Hi Todd... I have never encountered this scenario, but most banks I know of require the transaction to be an arms length transaction and I would have thought that an agent/seller representing his/herself would have made that questionable. Regardless, your advice is "on target".
I assume she is doing this for no fee? Don't see how it would slide by without that being so.
I see agents both selling and buying short sales. Conveniently they change the listing agent or buying agent of record when they discover that most likely no commission will be earned if they are representing themselves.
You can't really short-cut when it comes to inspections or repairs. Well I guess you could, but you really are asking for trouble. Excitement in buying shouldn't cause stupidity with decision making. Of course, that's also why they have a good agent to tell them what's what.
Todd, that is a sad state of affairs, I wonder as someone else pointed out is the seller accepting a co-broke fee or do you suppose the commission will go to the listing company and some-how get funneled back to the lister-owner?
Todd ---- I, like Steve, wonder if the seller is getting a co-broker fee on this -- you have given excellent advice -- some buyers (as well as agents) can't seem to get it through their heads that these houses are being sold as-is.
Why would anyone want to sell their own home as a short sale? The lender will usually pay for the brokerage commission and your exposure for potentially not disclosing a fact that is not material to you - but is to the buyer - is exponential!
Since the owner gets to approve the offer to purchase before the lender agrees to discharge the debt, they get to see who is buying the home. So I guess I just don't "get" why an owner would want to be the listing agent for his own home or to try to do it as a FSBO.
Interesting situation for sure. I couldn't have said it better myself. I generally do justify my existence on a daily basis.
Todd although your last paragraph pretty covered it. Buyers should always beware as you say. Realtor/ agents are no more apt to do something than any other seller. I list the property I own, I have to go the extra mile I feel because I am a Realtor, I shouldn't but I know liberal Judges would look at it different.
I was once hauled into court three years after a sale for a freaking roof, the judge wanted us to arbitrate, I said no. I was found at fault but won on appeal. The lawyer fees alone were more than the roof. I vowed if it ever happened again I would just buy the roof. I shouldn't but what can you do.