All Forum Posts by: Steve A

What are the factors to consider when deciding whether to ask the seller to pay for closing costs or just boosting the offering price to compensate.

Sample deal:

Offer 1- $515K, each party pays his own closing costs.

Offer 1a- $500K, seller pays first 3% of buyer’s closing costs.

On the face, both offers net the seller $500K (less commission, etc.).

Which offer is better for the buyer? The seller? Why?

What do you think about using the listing agent to help facilitate a buy?

For the last three months, I’ve been using a seller’s agent to make offers on a SFR.
But have been outbid on three houses.

For my next try, I’m thinking about using the listing agent. I see a couple of definite advantages:

1. Enables the total cost to be reduced by up to 3% (if the agent forgoes the buyer’s agent’s portion commission). Some agents are amenable to this, others aren’t. One guy I’ve talked with was very upfront about it. “If you have me represent you, I can lower the commission from 6% to 3% and the seller can drop the price by 3% and still net the same amount from the sale.â€

2. The other advantage is information sharing. “If you have me represent you, I can help you make the winning bid because I’ll know what the other bids are.â€

I understand that both “advantages†may have some ethical issues attached to them. But, putting that aside…

What are some of the disadvantages to having the listing agent (or someone from the same office) also represent me (the buyer)? I understand that conflict of interest makes this practice illegal in some states, but not in CA, where I’m located.

Are there some specific issues I should lookout for as a buyer?

Please, this isn’t meant to be an ethics lesson.

Thanks,

A little more research showed that every major lender in CA was granted an exception from the moratorium law.

Regarding the feeding frenzy of buyers: A bus from weight watchers just pulled up-and the seafood buffet is down to greasy popcorn shrimp and soda crackers.

This weekend I offered 500 on a SFR listed a week ago at 515. Lost it to someone that bid, "significantly over list".

Now that the California Foreclosure Moratorium has ended (Sept 15th), do you expect that we will see an increase in filings? Or was the law so toothless as to have no real effect?

If the end does have an effect, how long before we start seeing an increase in inventory on the MLS?