One of the biggest frustrations is that our MLS police, Sandicor, allows listing agents to leave their short-sale listings in the active category, even though they have an accepted offer.
They are supposed to mark the secret box, “accepted offer, subject to lender approval”, but I don’t think it is made obvious on any publicly accessible website.
As a result, buyers are perusing the MLS, finding homes they’d like to buy, only to find out later that they already have an accepted offer. What’s worse is that the buyers who have the accepted offer feel like they are being shopped around by the listing agent (they are), and are more likely to blow out. That’s not in the sellers’ best interest, is it?
Check out the current inventory, and how it compares to previous Aprils:
4/07 = 20,122
4/08 = 21,257
4/09 = 13,351 – 2,101 = 11,250
There are currently 2,101 active listings that are marked as having an accepted offer, subject to lender approval, yet the public doesn’t know it. You deserve to know the truth.
Did you know the active inventory was that low?
The all-time low inventory was 2,301 in 3/04.
Previous April inventory counts from BMIT (any comeback in the works?)
Attached and Detached properties that went pending between Jan. 1 and April 20:
2007 – 9.205
2008 – 8,050
2009 – 12,197 (previous years have all closed)
Attached and Detached properties that SOLD between Jan. 1 and April 20:
2007 – 8,173
2008 – 6,092
2009 – 8,608
Average Sales Price and $-per-sf for those SOLD between Jan. 1 and April 20:
2007 – $598,258, $348/sf
2008 – $516,431, $287/sf
2009 – $353,476, $209/sf
What happens if a buyer has multiple offers out on different properties and more than one is accepted?
This and the “Shenanigans” post really burns me up.
Jim, if the realtor is going to ignore the rules then why shouldn’t a prospective buyer? Is there anything that prevents a motivated buyer from completely bypassing the realtor and presenting directly to the bank and/or short-seller? It’s not like you’d be breaking any law, and the listing agent certainly couldn’t accuse anyone of violating ethics if he’s actively doing the same.
From what I’ve seen/heard is the bank first gives a “yea” to your offer, but then drops a bombshell of their terms and conditions; plus you have inspections. So I would guess in most cases, you have would have an out on most if not all of your offers if you wanted to.
Also I would think most offers still have a deadline to accept, which I suspect the banks rarely make before their lengthy reviews are finished. Therefore in many cases your offers may have technically expired before the bank agrees. Just guessing here….
Yes, shopping is right, the inspections/contingency periods are your out if you don’t like anything about the deal/property.
The banks are making them shorter, the norm is 17 days but we’re seeing the addendums cranking them down to 10 days.
I think the trick is figuring out to whom in the bank one would present the offer. And I’m not sure that you could go directly to the bank even then, as the “OWER” is the “owner of record” not the bank, so I suspect that the offer must be made “through” them–interesting times, interesting approaches.
I wonder what the bank would do if you did?
“Dear Agent for Homeower,
“Thanks for the short sale offerings you submitted. However, we’d like to take his one….”
I’m sure it’ll be done before this mess shakes out.
Is it legal? Ethical? Hmmmmm. Dunno.
As I had posted earlier–San Diego is just NOT showing the signs of distress that some other markets like Las Vegas or Phoenix are showing. Fairly low inventories and a lot of transactions. The prices have came down in San Diego and the market is reacting!
I think anyone going for a short sale must have a lot of free time and patience. You would have to offer on multiple homes hoping that just maybe one comes through this year, and, probably not be pursuing the one house you really want.
Better to get a clean deal; drive around, find a house you like, call Jim to represent you and go over the docs.
Also, I’m liking the shrinking inventory!
That’s an interesting detail, Local Boy. I guess when it comes right down to it, all other things being equal, people would still rather live in San Diego than Phoenix. 🙂
Don’t forget a lot of the stressed out Phoenix homeowners are actually San Diegans, I personally know 3 whose Phoenix/ Vegas ‘investments’ properties are currently pulling them underwater like a boat anchor!
If I was serious about a place and had a better offer, there’s NWIH they could stop me without risking legal action.
Kwaping-Yes, as prices in SD people tend to abondon less desirable markets and relocate to SD, thus heloing to stabilize prices in SD.
Was supposed to read-“as prices in SD DROP,” – sorry
Other than the weather why is San Diego more desirable than other parts of the country?
House prices are WAY out of whack with the average income, jobs are getting more and more difficult to find, and California government is trying it’s best to tax every profitable business out of existence. I think you’ve deluded yourself into a cheerleader mentality most likely because you have to. I’m sure all those “income producing properties” you say you own aren’t proving to be the most ideal investment when prices fall.
Shaddash-Kwaping is the one who actually made that comment, but I agree with him–You tell us, why do you live in SD? And if what you are saying is true, why not relocate to a market with cheaper home prices–things are cheap in Phoenix–we just bought a 4-plex for $56K.
I’m living in SD because I like the weather. I grew up where it was cold and decided it’s not for me. I moved out many moons ago. Now it’s not so much that I like the weather but rather I’m planted in SD because of my work.
I’ve also lived in Tuscan, AZ and I’m completely aware of what you can buy there. 56k for a four-plex does sound appealing but making it work could turn out to be a challenge.
Regarding San Diego home prices. I think there’s just a lot of fraud. (Some of it is supported by the local governments.) Home owners have figured out how to live for free as long as possible. But, eventually the tide will turn. It always does.
“Other than the weather…”
The weather is probably the top 1-10 reasons to live in San Diego. I mean really, in terms of the US – it doesn’t get much better. You can go to the beach in shorts nearly 365 days a year.
Take away the weather, and the ocean – and sure, the comparison between Phoenix and San Diego suddenly becomes more relevant. You can’t though.
@Local Boy: I agree with those who say there are no jobs in SD. Here in the Bay Area, when I tell people I am moving to San Diego, the first reaction is generally “Oh, I love San Diego” followed by one of two things: “But there are no jobs there” or “But there is no culture there.” I don’t agree with the latter, but the jobs part is a problem. I can work from anywhere, so it’s no big deal to me, but there sure is a dearth of $100K+ tech jobs in SD. No dearth in the Bay Area for those who are well-qualified.
My boyfriend would have had to take a nearly 50% pay cut from SF->SD; instead, he negotiated to work from home most of the time and fly back to SF a couple times a month.
Anyone who has lived in Tucson would probably spell it correctly.
Shadash- you are right, the tide will turn.
And, for all the “tea baggers” and the California-is-the-worst crowd, below is an excerpt from the Union Tribune:
…California lost 4.2 percent of its payroll jobs over the past year, compared with a national average of 3.5 percent.
Thirteen states lost jobs at a faster pace than California, including neighboring Arizona, Nevada and Oregon, as well as five Southern states: Florida, Georgia, Tennessee and North and South Carolina.
Here’s the link: http://www3.signonsandiego.com/stories/2009/apr/18/1n18jobs23013-jobless-rate-hits-112-california/?uniontrib
So much for the competition. I am a cheerleader, so what? I like it here.
I have nothing against SD I like here to. What does get old is all the housing cheerleaders who are clearly trying to get others into the same financial mess they are in.
How many months/years of negative appreciation will the cheerleaders have to experience before they capitulate?
San diego is basically a desert with an ocean nearby.Look at the vegetation once you get away from the ocean influence, chapparal schrub.I can tell you it is hotter than hell in the summer within places like elcajon and santee.I grew up in san diego and although there are some nice areas I would not pay to live there now.
Shadash, didn’t you hear? We’ve reached the bottom!
Shadash, I wouldn’t count myself in the cheerleader camp, but I gotta say – since housing prices across the country are depreciating, I might as well enjoy having one in San Diego.
Imagine being in Detroit, with crappy weather *and* a valueless home!
^^^ I’m not encouraging anyone to buy, I’m just sayin, those who are stuck in a home like I am might as well enjoy it. 🙂
Kwaping’s got it; If you’re going to be the landed poor might as well make it a nice place. Also part of why more income goes towards housing here.
And arizonadude… I don’t know what to tell you. You are in Arizona. That’s hot unless you’re in Flag. In which case it’s freezing for months on end. By the way, San Diego is a Mediterannean Climate, not a desert. Glad you are happy there.
“They are supposed to mark the secret box, “accepted offer, subject to lender approval”, but I don’t think it is made obvious on any publicly accessible website.”
Redfin has a filter to filter out listings that are still open but looking for backup offers. Is that the same check box?
Just thought I’d mention that San Diego seems to burn down every few years… I’d still live there.
The $/sqft is the most telling statistic I see above. I’d love to see the 2005 and 2006 numbers as well.
Most places in California burn every few years. The four seasons of California are flood, fire, earthquake, and drought.
You forgot locusts and the rivers running red with blood. Wait, we don’t have any rivers. That must explain it.
Poor San Diego! It’s not that we doesn’t have attributes besides the weather and beaches. It’s that we have about the same art, music, and culture as any good college town of 100K people anywhere else. Yet we have to contend with 1.3M people clogging up the landscape instead.
In my case, I never thought I’d live in SD. But that’s literally where the jobs were for my industry coming out of college. Maybe that’s the exception to the rule, but jobs were the only reason I’m here. That said, I’ve grown fond of SD and it’s definitely in my top 3.
I’m from LA, and if they had my job there at this pay I’d move back in an instant. Not that the weather isn’t nice here, but there are lots of great places to live in LA county. Also making top 3 are the Bay area, but that has it’s own issues – real estate there makes SD look cheap and people can be a little nutty. Sometimes in a good way, sometimes not. =)