Replies to This Discussion

Permalink Reply by joe beauchamp on August 20, 2010 at 2:26am

All depends upon where you are and what your goal is. I believe it is always good to change the numbers unless you want it killed. A few really stupid negotiators will kill a file rather than counter, all the others will counter until it is obvious that things are going nowhere.

I feel that any reasonable increase in sales price will keep it alive, also, changes within the HUD like lowering attorney fees, etc., will keep it going. They will primarily be looking at the net. So long as you keep that moving up, except for the super brain-dead negotiators, will keep it alive. If you get the dumb of the dumb, just resubmit the file - you've lost time, but you can resubmit..

Permalink Reply by Suzanne on August 20, 2010 at 2:41am

I'm confused...if I offer less then what they want there is no increase in sale price.We are in New York (Long Island). The attorney is going to look at lowering some fees today to try and make it work. We said to offer the 375K but with 3% closing fees paid. Our goal is to get the house but we are losing so much on the sale of our home that we need more cash in pocket. Can you just explain to me what everyone means by them looking at the net. The people have a current mortgage of 775K on the home.

joe beauchamp said:

All depends upon where you are and what your goal is. I believe it is always good to change the numbers unless you want it killed. A few really stupid negotiators will kill a file rather than counter, all the others will counter until it is obvious that things are going nowhere.

I feel that any reasonable increase in sales price will keep it alive, also, changes within the HUD like lowering attorney fees, etc., will keep it going. They will primarily be looking at the net. So long as you keep that moving up, except for the super brain-dead negotiators, will keep it alive. If you get the dumb of the dumb, just resubmit the file - you've lost time, but you can resubmit..

Permalink Reply by joe beauchamp on August 20, 2010 at 3:40am

BofA/investor is primarily interested in how much money they get. You have a $350K sales price and pay $100K in expenses ($250K net), that sucks so far as they are concerned compared to a $275K sales price with $10K expenses ($265K net). The investor wants to see what he gets, not some high number that disappears after paying a bunch of liens and everyone involved - he wants to see the NET amount going to him. Frequently with MI, they feel that they have a big loss and try to grab money from the seller. They also look at the finances and basically will try to punish the seller if possible. Slightly different motives..

Suzanne said:

I'm confused...if I offer less then what they want there is no increase in sale price.We are in New York (Long Island). The attorney is going to look at lowering some fees today to try and make it work. We said to offer the 375K but with 3% closing fees paid. Our goal is to get the house but we are losing so much on the sale of our home that we need more cash in pocket. Can you just explain to me what everyone means by them looking at the net. The people have a current mortgage of 775K on the home.
joe beauchamp said:

All depends upon where you are and what your goal is. I believe it is always good to change the numbers unless you want it killed. A few really stupid negotiators will kill a file rather than counter, all the others will counter until it is obvious that things are going nowhere.

I feel that any reasonable increase in sales price will keep it alive, also, changes within the HUD like lowering attorney fees, etc., will keep it going. They will primarily be looking at the net. So long as you keep that moving up, except for the super brain-dead negotiators, will keep it alive. If you get the dumb of the dumb, just resubmit the file - you've lost time, but you can resubmit..

Permalink Reply by Kelly Timm on August 20, 2010 at 3:15pm

You can always counter and they can always say no. When I counter, I provide supporting docs like a CMA. If they dont budge, see if the buyer is willing to agree to what the bank wants. After you have approval, you will have the appraisal done. If the appraisal does not support the offer especially if it is FHA, submit the appraisal in for review along with a purchase addendum and new HUD. I find that the banks do take appraisals more seriously than comps or a BPO. They may still say no because they are really looking at their net and what the investor requires but I have had luck. If you feel like spending the $$, have an appraisal done before accepting the offer so everyone will feel warm and fuzzy. Good luck!!

Permalink Reply by Wendy Rulnick on August 21, 2010 at 2:50am

If you really want the house, just pay the 375K. Normally, they counter what they know the investor will accept. $15,000 more over many years for a home you love? Look at the big picture.

Permalink Reply by Jeff Payne on August 21, 2010 at 3:08am

I totally agree with Wendy, if you want the house, pay the $375,000. I am going to assume that if you can afford a $360,000 house, you can easily handle another $15,000.

Permalink Reply by Suzanne on August 21, 2010 at 4:12am

If it was just about a house I loved it would be worth the $15,000 but this house is not even livable right now. It needs at least 100K worth of work and we need as much cash as possible to fix it. More then anything we would prefer buying it for 375K and having the bank cover the 3% in closing so that we have the $ in our pocket. Not to mention we are losing 65K on the sale of our current home. Unlike much of the population right now WE are taking that hit, not the bank.

Jeff Payne said:

I totally agree with Wendy, if you want the house, pay the $375,000. I am going to assume that if you can afford a $360,000 house, you can easily handle another $15,000.

Permalink Reply by joe beauchamp on August 23, 2010 at 12:02pm

The net is how much the investor (bank) gets - they pretty much don't care what the sale price is, they want to know how much they are going to get. My earlier example shows this - the bank would rather have the $275K sales price and get $265K out of it than the $350K sales price and only get $250K. They like "netting" $265K for a house better than netting $250K and really don't care what the sale price is ($275K for their better deal, $350K for their worse deal).

Suzanne said:

I'm confused...if I offer less then what they want there is no increase in sale price.We are in New York (Long Island). The attorney is going to look at lowering some fees today to try and make it work. We said to offer the 375K but with 3% closing fees paid. Our goal is to get the house but we are losing so much on the sale of our home that we need more cash in pocket. Can you just explain to me what everyone means by them looking at the net. The people have a current mortgage of 775K on the home.

joe beauchamp said:

All depends upon where you are and what your goal is. I believe it is always good to change the numbers unless you want it killed. A few really stupid negotiators will kill a file rather than counter, all the others will counter until it is obvious that things are going nowhere.

I feel that any reasonable increase in sales price will keep it alive, also, changes within the HUD like lowering attorney fees, etc., will keep it going. They will primarily be looking at the net. So long as you keep that moving up, except for the super brain-dead negotiators, will keep it alive. If you get the dumb of the dumb, just resubmit the file - you've lost time, but you can resubmit..

Permalink Reply by sebastian acosta on August 24, 2010 at 2:54pm

Have not had a great experience recountering. We rather close the file and reopen it again with a different negotiator.
In our last case we sent them a State Certified Appraisal for the price of our offer and it worked very well.