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HLS
ParticipantBest to just make it clear to her that you do not want her representing you nor contacting you again.
You do not need to give her any reason(s) or excuses as to why.This is a great example of why nobody should ever sign an exclusive agreement that you will only deal with one agent in your search.
Some agents will try to get you to sign such a form.ParticipantAnd you don’t wish to continue with counteroffer because….. ???
If she is not the listing agent, she has no knowledge of how many other offers (if any)
have been submitted.
Unfortunately many agents lie and the lies get passed along as facts.If you like the property, I’m not clear on why you
wouldn’t take her call.ParticipantCTR,
Regarding your comment:
“the remaining buyers the last 7 years (fha and va) have really low rate 30 yr fixed fully amortizing mortgages, meaning they are paying down big chunks of loan principle every month creating forced equity”
*****How does a low rate mean that “big chunks”
of principal are being paid ??
***************
Never get complacent with ANY market of any product.
The housing ‘market’ isn’t a normal market as it is one of the most manipulated, but this doesn’t mean that it isn’t subject to corrections.ParticipantA buyer should never feel(OR be made to feel) guilty when agent shows you property, whether it’s 1 or 51. You did not choose their job, they did.
Not all agents are Realtors. You can be represented by either.
I ALWAYS tell clients that virtually everything in real estate is negotiable. Although some things may be ‘standard’ there are blank lines and boxes to check on the purchase contract.
Most people don’t seem to grasp this.One thing that I detest is the ‘loan contingency’
and most agents cannot explain what it really means.
I ALWAYS suggest trying to negotiate your loan contingency be removed AT FUNDING and not before.
There is an option on the contract for this.
It’s not always possible but understand that you are potentially putting your entire deposit at risk
when you lift the contingency and you have no control (or understanding) of if your loan will actually fund.ParticipantYou do not need agents/broker to be involved in a transaction if both parties are willing to accept the liabilities if anything goes wrong.
“A great way to go” ? For whom ???
As the seller/landlord, you have nothing to gain and much to lose with a ‘lease option’ and/or not being represented in a sale.If the market goes up, you lose out by locking in today’s price.
If the market goes down, the buyer will not buy the house and you will still own it.
Are you receiving any additional NON-refundable $$ over and above current market rent for giving the option ?
You stated that the ‘option would apply to the down payment’ and what happens if they don’t buy ?
**They want an OPTION to buy the house, it’s not an obligation.If you push the window for cap gains exclusion, IF you cannot get tenant out OR closing is delayed for any reason, it could cost you many thousands of dollars. Not all loans close.
I’m not saying that it’s a terrible idea and maybe nothing will go wrong, but the courts are backed with millions of dollars of cases involving money and ‘misunderstandings’
ParticipantThe depreciation ‘benefit’ adjusts your cost basis.
It can cost you eventually OR
You can defer with a 1031 exchange.It depends on how much tax free gain you have right now but consider this…
All things being equal, if the house next door was exactly the same and for sale at the same price,
you might be better off selling yours with a tax free gain and buying the one next door with the proceeds and establish a higher cost basis and higher depreciation.Just because you sell doesn’t mean that you cannot buy something else. You may even get a better deal on a different property.
If you have been out of the house for almost 3 years, if the closing drags out for any reason you could lose the opportunity.
A tax free gain is potentially a huge benefit.
**Discuss your plan & strategy with your tax advisor.Participant[quote=spdrun]Write her an email telling her to put together an offer with YOUR pre-qual and at YOUR price. She has an obligation to do so and transmit it to the selling broker.
It’s a shame that dual agency isn’t common in CA and you can’t (easily) just go off and see properties by calling the selling broker. Cutting the middle-chick out of the equation entirely would be ideal, right?[/quote]
Dual agency IS available in CA. It just needs to be disclosed.
Anybody can go directly to the listing agent if they want to but most people are not qualified to represent themselves (Unfortunately some agents are not really qualified either)The seller pays the commission. Who does a dual agent really represent ?
Seller wants as much as possible.
Buyer wants to pay as little as possible.
How can one person represent both sides fairly ??Cutting the ‘middle’ person out could be a very costly mistake for many buyers and costs them nothing to have representation (UNLESS they can get a rebate of commission from the listing agent that they wouldn’t otherwise receive)
It is correct that agent has an obligation to transmit ALL offers, (even at 50% of the asking price) but the seller is under no obligation to respond. If the cross-qual letter isn’t provided, their offer may not be considered.
ParticipantA seller can request whatever they want.
You can dig your heels in if you want and possibly not have your offer considered.They don’t care that you don’t see a point in qualifying with their lender because they do.
Your agent has no control over the seller wanting you to cross qualify. It’s not that unusual AND it’s not your agents fault.Closing cost credits is simply a result of the rate. I recently closed a buyer with $12,000+ credit.
Do you understand where/how this credit comes from ? It’s a higher monthly payment.No pre-qual/pre-approval letter is a guarantee of anything, no matter what it says.
Why do you think a lender is going to ‘harass’ you?
It’s a simple request.I don’t understand what you are upset about.
You are using an agent that “infuriated you” 2 years ago and want to drop them because the seller wants you to qualify with their lender ?If they have ‘introduced you’ to a property that you want to make an offer on and you make the offer through another agent, you could end up in a lawsuit because they want their commission.
If you don’t want to use her, just don’t have her show you any more houses.
Hopefully you didn’t sign an exclusive agreement.I’m not defending her in any way.
I’m a Realtor and loan broker who doesn’t like how many things in the industry are done. I’m not looking to represent you but will provide an opinion if you want one. HLSParticipantLTS.
The OP stated “they all declared bankruptcy and foreclosed on their homes during the bubble aftermath”
My mistake for assuming that was within the last 6 years.For a new loan:
Conventional guidelines are currently 7 years after foreclosure AND a decent credit score.
FHA is 3 years with a possible exception.
VA is generally 2 yrs.There certainly may be other programs available,
It’s just not the norm to have this happen and I’m not sure what ‘stuff’ you think I’m making up.
Your insight is apparently better than mine.ParticipantWas that such a bad lesson ?
Sounds like you made money (but upset because you could have made more ??)If every covered call position spikes up, kudos to you.. You will never go broke taking profits regardless of what you could have made had you held the position longer.
You can always buy a CC back and sell the same strike further out and squeeze a little bit more.
The key with options is to not be greedy and worry about anything other than staying profitable!many other strategies too…
Participant😉
Flu,
Do you trade options ?It’s a great way to generate income and when done correctly and even if you’re wrong you can still often make money.
I know that you aren’t greedy with your trades.
Embrace options,,don’t fear them!ParticipantMy guess would be that it’s because you sold yesterday 🙂
Participant[quote=ltsdd]
Would you think it would be possible if it’s “the last 7 or 8 or 9 years” instead of “the last 6 years”? Would you care to share why you think such a scenario is not possible?[/quote]
Because I deal with loans, lenders, guidelines, regulations & underwriters on a daily basis and don’t just make up scenarios based on what I think I know.
It makes for creative writing and the possibility of developing a movie ‘based on a true story’ though….
Nobody was getting a new loan for a few years after a bankruptcy, foreclosure or short sale.
Certain programs have loosened up a bit if hardship in the past can be well documented.
Credit scores were affected and are a factor in getting a new loan.Although not impossible, there were some creative things happening on both sides of the fence…
BUT to assume that this was widespread because of stories in the media and internet is silly.Based on the OP, it was not implied that ‘these people’ ever had any cash as you suggest, but all done with borrowed money.
Participant[quote=ltsdd]It’s conceivable for someone to buy a house, say in 2002 for $500K with 0% down. House value goes up to $1m in 2007. Refi with 125% cash out. Stash the roughly $700K that they cashed out somewhere. Filed for bankruptcy. Heck, they don’t even have to wait for the bk record to go away. That’s plenty of cash to perhaps scoop up a similar house during the downturn. Now, 7 years later, bk record went away – continue to step two (refi cash out)….[/quote]
Uh-Huh….and how many people do you personally know who did this ?
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