Replies to This Discussion

Permalink Reply by Jeff Payne on September 5, 2009 at 5:09am

(CAPS ON!) ADVISE YOUR SELLER TO ACCEPT ONLY ONE OFFER AND SUBMIT IT TO BANK OF AMERICA, TAKE ALL OTHERS AS BACK UPS THAT DO NOT GET PRESENTED UNTIL THE FIRST OFFER IS EXHAUSTED. GET YOUR 6% COMMISSION, ASK FOR THE CLOSING COSTS AND WORK WITH THE LENDER TO GET IT ACCEPTED. THEY WILL PAY FOR CLOSING COSTS AND THEY DO PAY 6% COMMISSION. Sorry for yelling :)
Asking price really means nothing, the key is to meet the BPO agent at the house and show them the comparables to use and tell them how much you are under contract for. Only submit one offer, your seller can only accept one offer anyway since the only difference between your offer and an "normal sale" is the contingency for lender approval. Let the other agents know that an offer has been accepted and that you are accepting back ups

Permalink Reply by MeLisa Minter on September 5, 2009 at 5:17am

Thanks Jeff,

I normally go with one offer because I hate dealing with realtors getting excited about why their offer was not submitted as well.

But I read on here that B of A will not pay closing cost and warranties. Needed clarification.

Permalink Reply by Stephanie Lim on September 5, 2009 at 5:48am

Do you know if it's a Fannie or Freddie? You can run it through online to find out. I've had both pay up to 3% closing costs.

Everyone probably approaches this a little differently. I would let it ride a few days but I usually base my decision and make recommendations based on where the homeowner is in the foreclosure process. If the homeowner has more time we push more and wait longer for the seller to respond. No matter what, I would not take a contract with terms that you know BOA won't accept, you'd rather set the expectations up front then have them walk later and have to start over. Also I would be sure they are expecting a minimum of 90-120 days for approval.

Don't be bullied into something that is less than acceptable for the sellers (and BOA) especially if there have been tons of showings.

Also, don't submit and offer, submit a contract and only one.

Permalink Reply by MeLisa Minter on September 5, 2009 at 6:31am

Thanks Stephanie.

I have not established contact with BofA outside of them telling me that they will only talk if a contract is submitted with the preliminary hud and listing agreement, so I don't know for certain what their terms are about closing cost, etc. I just read that here on the forum.

I did run the loan number through Fannie Mae and it was not backed by Fannie. However, I have not tried Freddie, I will do that now.

Thanks again.

Stephanie Lim said:

Do you know if it's a Fannie or Freddie? You can run it through online to find out. I've had both pay up to 3% closing costs.

Everyone probably approaches this a little differently. I would let it ride a few days but I usually base my decision and make recommendations based on where the homeowner is in the foreclosure process. If the homeowner has more time we push more and wait longer for the seller to respond. No matter what, I would not take a contract with terms that you know BOA won't accept, you'd rather set the expectations up front then have them walk later and have to start over. Also I would be sure they are expecting a minimum of 90-120 days for approval.

Don't be bullied into something that is less than acceptable for the sellers (and BOA) especially if there have been tons of showings.

Also, don't submit and offer, submit a contract and only one.

Permalink Reply by Jeff Payne on September 6, 2009 at 12:22pm

BofA will pay closing costs and warranties. We have seen them pay for both, they will most likely ask for a breakdown of the costs.

Permalink Reply by Bryant Tutas on September 6, 2009 at 12:41pm

Melisa. Listen to Jeff. BofA only wants to see one accepted and signed contract. Your job is get them the highest and best. You handle this no differently than if you were in any other multiple offer situation. It's between the seller and the buyers. BofA has NOTHING to do with the negotiations.

I agree with Stephanie to let the offers roll in for a few days. The banks are closed anyway until Tuesday. If you end up with multiple offers by Tuesday then maybe send out a "highest and best" request. Of course you need to discuss all of this with your seller as it is their decision.

Make sure that whatever happens the offer the sellers accept is high enough. It's easy to get multiple offers. The key is to accept a contract that will fly with BofA. And that will need to be pretty close to current comparable sales.

Permalink Reply by Sharon Alters, CDPE, GRI on September 7, 2009 at 4:40pm

Melissa, Bryant is right. If your offer isn't pretty close to comparable sales, they will just close the file - sometimes without even talking to you. Don't waste the Seller's time with a low ball offer. This does not work with BofA and will waste months of time and they might be foreclosed before you can sell the house.

Permalink Reply by Dawn Barrier eXp Realty Vegas on September 8, 2009 at 5:00am

MeLisa,
I too have had offers come in within only a few days of listing being on the market. I agree w/everyone here you said ONLY accept 1 offer to send to the bank & make it the best for your seller.

Offer Needs to be as close as possible to the comps as BOA may actually do an appraisal not just a bpo as they have done on my listings & they will refuse a low ball offer, I've had it happen & learned that most offers should be countered to at least list or nearest comp, also terms may need to be countered with specific language to protect your sellers best interest. Getting lots of showings and offers is GREAT & means it is a great listing and you will do great! Just needs lots of patience and perserverence! Good Luck!

Permalink Reply by MeLisa Minter on September 8, 2009 at 5:09am

Thanks Sharon. The buyers countered back at list price and I'm submitting everything tomorrow.

Sharon Alters said:

Melissa, Bryant is right. If your offer isn't pretty close to comparable sales, they will just close the file - sometimes without even talking to you. Don't waste the Seller's time with a low ball offer. This does not work with BofA and will waste months of time and they might be foreclosed before you can sell the house.

Permalink Reply by MeLisa Minter on September 8, 2009 at 5:10am

I'm going with the one I have. Didn't get anymore over the weekend, although several agents said they were going to.

We'll see what happens with the one that I have.

Dawn Barrier said:

MeLisa,
I too have had offers come in within only a few days of listing being on the market. I agree w/everyone here you said ONLY accept 1 offer to send to the bank & make it the best for your seller.

Offer Needs to be as close as possible to the comps as BOA may actually do an appraisal not just a bpo as they have done on my listings & they will refuse a low ball offer, I've had it happen & learned that most offers should be countered to at least list or nearest comp, also terms may need to be countered with specific language to protect your sellers best interest. Getting lots of showings and offers is GREAT & means it is a great listing and you will do great! Just needs lots of patience and perserverence! Good Luck!