Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 10, 2011 at 8:00am

Counter the Buyer for "Best and Final" offer.  Submit their response on Equator as "Best and FINAL Offer".  When you hit the "magic number", BofA will accept.  They will continue to counter you at $150,000 until you get to a number they can actually accept that's within their guidelines.

 

No need to escalate - the negotiator can accept when you get to the correct #.

 

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Smitty on February 13, 2011 at 3:58am

Is there a way to find out what the BPO came in at?  We had an offer on a condo at $315,000 and BOA countered at $400,000.  $400,000 is for a brand new furnished unit at this complex and our unit is dated and about 12 years old, needs work and updating.  Not sure HOW they are figuring $400,000.  Anyone would opt to get a new unit as opposed to what we have for that price.  We cannot counter to that number.  We are looking for back up offers at this point.

Does providing your own CMA actually help?

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 13, 2011 at 4:05am

Smitty,

The BPO doesn't matter to you.  From your post, it looks like there may still be a builder sales office at this complex since it still has brand new units - even though some are 12 years old ?  If you can, get some marketing materials from the sales office showing the similar unit at that price.  Uplaod that into the Equator Library along with your "best and final" counter offer.  It may work.  I uploaded a photo of a Freeway Billboard showing units selling for a similar price as our offer and it was approved within a few days.

 

Best of Luck,

 

Thom Colby

Broker

Newport Beach CA

 

Permalink Reply by Smitty on February 13, 2011 at 4:20am

Tom, the listing agent that helped sell the condos when they were new is the one that put in the offer with her client.  The building finally sold out and last unit had been over 1000 days on market at $425,000.  The problem is this unit is now worn and the first one to sell in this condition.  The buyer's agent wrote a two page letter why her offer was valid and explained she had three offers on this unit and this was the highest one.

It's going to be an uphill battle as we are up against an auction date in March and the lowest sold was $425,000.  I like your idea though.  We will keep pushing.  Thanks for the assistance.  MUCH appreciated.

 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 13, 2011 at 4:40am

Don't give up.... a Trustee Sale can be postponed (although the bansk say they are not postponing in 2011 - we'll see)

 

Wear & Tear is really not a factor - new / cleaned carpet and some paint works miracles to make a unit look new again.  Would it sell for $400K if it were painted, new carpets and new appliances?  If so, that's really what you're up against.  You can also make the case that the $425 sale "oversold" and the buyer paid too much depending upon WHEN it sold.  If it was recent,,,,, not so much.

 

Again, good luck !

Permalink Reply by Smitty on February 13, 2011 at 5:19am

LOL...no the last unit sold was in August, so you don't have anything really to compare it to.  It had been on the market over 1000 days and was a new unit and also the LOWEST SELLING unit in the building.  So now the units are 6 years old and the guy that owns it is in his mid 30's and to say the least never really "grew up" - partier, etc.  The place is a disaster.  The day the BPO came through we were greated at the door with gaping piles of dog poop. 

 

I will do what I can but not sure I can bridge a $85,000 gap.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 13, 2011 at 5:26am

WOW - Sounds like he really doesn't care.  We all have to decide "when to hold and when to fold"  I wouldn't spend a lot of time on it if he's not cooperative / realistic. 

If it were me, I'd be telling him to clean it up (and to grow up) and take responsibility.

 

Hope all turns out well for you....

 

Thom

 

Permalink Reply by Smitty on February 13, 2011 at 5:35am

He's coorperative..gets me paperwork on time, etc., but I have little tolerance for the drinking shenanigans.  I am not going to spend a ton of time on it.  There was another back up offer, but it was lower.  I could submit it but I don't believe it'll go anywhere. 

 

Thanks So Much Thom!

Permalink Reply by Smitty on February 15, 2011 at 9:23am

Ok, is there a next step here?? We have an offer in at $315,000 and BOA is countering at 400,000.  There are NO $400,000 comps except TWO NEW CONSTRUCTION CONDOS in the same building from August and ONE condo in a development surrounded by 1 million dollar homes with a tennis court and pool, which our condo doesn't have.

 

I pulled the LAST 6 months comps and found 10 condos with same square footage and those 3 highest above which sold for $425,435 and 460.  Everything else was under 360,000.  There is a strong comp on there with 2 more bedrooms, updated, move in condition that sold for $270,000.  We listed for $350,000 and got 3 offers.  Two offers at $300,000 and one at $315,000.  Our place needs updating and is the first RESALE out of the complex. 

 

I've been told I have to provide comps to challenge Appraisal of $400,000 (again new cosntruction) which I provided.  Today they countered at SAME PRICE!!!! 

 

Are they NOT reviewing the info?  NOTHING has sold for $400,000 that is comparable!!  Anyone have a suggestion?

Permalink Reply by Catherine Gheen on February 22, 2011 at 8:44pm

have the buyer's lender order their appraisal and submit to your negotiator.  Go to the Appraisal Institute Website and do a search on the Principal of substitution and send that to your negotiator.  Legally a BPO does not over ride a real appraisal.  Appraisal Rule 7(2.) states that a BPO can not override a real appraisal.

 

Let the buyer's FHA appraisal do the work for you.

 

Good Luck and fight the good fight!