I've been a little pissed this weekend after an encounter with an agent at an open house on Saturday. I was bored Saturday morning so I went out for a drive to see if there were any open houses I could look at. I stopped at a few but is seemed like a slow weekend. Must have been the rain. On the way home I noticed some signs, so I followed them to the open house. It was not something I would really be interested in (too big) but I stopped in there anyway since it is in one of my target areas. I was the only person there so the realtard followed me around asking all the usual questions.
Are you looking to buy...when?
Do you have an agent?
What do you think of the house?
I told him the house was bigger than I was looking for and that I thought the price was far too high compared to the other homes for sale in the area (which it was by about $200k at least). He got the usual surprised look and then said that the home was priced lower than the recent comps. He had his laptop on and said he could show me. Logging on to Trulia he brought up the home and at the bottom of the listing on Trulia it listed the recent sales in the area. There were 4 or 5 sales listed in the last couple of months all at surprisingly high prices. I don't use Trulia but it only took a moment for me to realize what I was looking at. This is where I lost it and bit his head off. You see those so called "comps" were the trustee sales, those were the properties going to the bank. I should have asked him if I had a big f'in sign on my forehead that read moron. In a rather agitated tone, I let him know that I was not a retard, and that showing me trustee sales as comps to justify his fantasy price was a stupid thing to do. I was pissed! I could not believe what this dumbass had just tried to do. The sad thing is that for 90% of the buyers it would probably have worked. I just happed to recognize a couple of the so called sales and I knew they were REO properties.
I don't know if it's desperation or what, but I've run into a few gems this last month or two. I've noticed it's mostly the young guys that try this crap. The young gals don't seem to have quite the same knack for the BS. I have not had nearly as much trouble with the older realtors (40+).
15 comments:
Interesting, X. I want to know what he said in response to your candor.
Also, which area were you looking at this time?
I've been lied to left and right by realtors at open houses. I'm not convinced there are any honest ones out there. I will concur that the young ones are the worst. They are so full of crap. They think we all fell off a turnip tuck. I usually get the ones telling me they have 2 or 3 offers on this home but it's still there months later.
I have yet to deal with a single Realtor he did not claim to have several offers. Some even say cash offers.
To which I always add,
"Ill give you 20 bucks for it, thats a cash offer to"
you are not the only one that little scam has been tried on golfer. I had one show me so called comps that turned out to be N.O.T. sales when I was looking at a La Quinta condo last October. I didn't find out until later after checking the real comps with my own Realtor. If you go to open houses without a Realtor of your own they will lie through there teeth to you.
Golfer X,
Excuse me for my lack of knowledge, is a trustee sale when the property is sold back to the bank ? Thank you in advance for your answer.
Trustee sale is the formal process of a sale of the deed of trust at the county courthouse (sometimes synonomous with mortgage but not quite the same) held as collateral on the loan by the lender.
Yes, the N.O.T sale is when the home is sold on the courthouse steps. It does not have to go back to the bank though. It used to be that most of the NOT sales were purchased by individuals (a few years ago). Now days 98% of them end up going back to the bank because more is owed than the house is worth.
Go easy on the Realtors. A lot of these guys are pretty clueless. He could have really believed these counted as actual sales.
My favorite: "Oh, that field behind is permanent open space."
This is so true. They are always think they are smart and high educated. But, they are not. They are all the losers with 99$ certificate program. LOL
I thought its only happened to me. Here is my story (the name and address been deleted to protect the innocent and to avoid any lawsuit). This happened at a open house, which has the house listed at 250K (lowball for bait and switch)
rtard: How are today, could you please fill in and sign the book.
myself: sure no problem.
rtard: are you planning to buy?
myself: yes, we been thinking about it (No! I just like to see desperate people)
rtard: What is your budget?
myself: depend on the house (What it is the car dealership?!)
myself: and as I understand this house is listed for 250K
rtard: well that's correct, however as of today its already has 3 offer, this house comp is about 386K and it was 500K just 2 years ago.
myself: there is no way I am paying for 386K for this house, actually I was planned to offer 225K for it. Well because I am here let me see the place.
rtard: please go ahead (you sucker)
Let me see a house with unfinished backyard, in the middle of nowhere at 2700 sq.ft. What a nerve, and to ask my budget?!! Ack....
The story is a little confusing golfer. I assume the trustee sale properties he showed you were priced as they were going back to the bank and not what they auctioned for right?
He showed my the Trulia of his listing. At the bottom of the trulia page it had several recent sales listed. I don't have any idea if they were all homes going back to the bank or if some were actual sales. But I did recognize several of them and the so called sales price was when the bank "bought" them back. They are now listed as REO properties.
There seems to be a lot of confusion about the foreclosure process. This should help or make it even more confusing
1. You miss a few payments payments on your mortgage
2. The lender will send you a late notice and add a bunch of penalties and late fees
3. If you still don't pay, then the lender will make a written demand for payment of the full amount owed on the property.
4. The lender then sends a notice of intent to foreclose (NOD)
5. After sending the notice, the lender then files a legal action with the court.
6. The court will (probably) issue order allowing lender to foreclose
7. Legal notice of the sale is also posted (usually in the paper)
8. Finally, the property is sold at auction on the courthouse steps to the highest bidder. If no one bids then the bank will. In essence the bank buys the property. It's not really buying it but since it was unable to sell it to cover the outstanding loan balance they have to do something to get the deed transfered to them. So they bid, it gets logged as a sale and now they own they home. Then they contract with some local realtard to sell it.
Confused? I sure am after typing all that.....
I have heard that the National Existing sales report is now counting foreclosures as existing sales for the monthly report. A blip said foreclosures were 10% of sales. In my book that makes sales actually 10% lower or at least for evaluating existing inventory, the level approaching 12 months of inventory based on adjusted sales.
Foreclosures are my business so I can answer your question. Most sales are non-judicial; there is no court involved. The statutory process requires service of a Notice of Default 90 days before the sale. A Notice of Sale is posted and published at least 21 days before the sale. At the sale, the foreclosing lender must bid for the property, the same as anyone else. Except, the lender gets to credit bid up to the amount of their debt. So, if the loan is $500k, often the lender will simply bid that amount. The 500k sale price shown on the Trustee's Deed Upon Sale. Of course, this bid has nothing to do with the true value of the property. Nor is it a valid comparable sale because there was no willing buyer or seller dealing at an arms length relationship.
Post a Comment