Here we go again....questions about bank counter/selling agt

Posted a while back about the selling agent being very unresponsive. The most we have gotten is a one-line email. Today our agent called and said the bank has made a counter of $305K. Our original offer was $270K (full asking). This house has 2 liens: Chase#1, USB #2. We feel our offer is fair based on our own side market analysis: average home sale price for past 12 months in neighbourhood is $272K, this home is in some disrepair, only one house sold over $300K in past 12 months in neighbourhood, home next door sold for $272 last year, etc. Our side is willing to give $2000 more to get it up to the same as the average and as the house next door. Selling agent will give no details as to BPO or appraisal value. He is claiming the bank counter was verbal only. The fishy part is, nothing has been said about seller contribution amount & we're talking USB as 2nd. Selling agent is saying he thinks $290K is the lowest banks will go but I have to wonder, with only a verbal, if what's really going on is his sellers aren't willing to pay more than $15K-20K of the deficiency. How would he know how low he can grind the bank? He does know how low he can get his clients.

What would you do? Tell selling agent you need a paper counter? Let your clients sign an ammended offer (what he proposes)? Other (what)?

I'm confused....you keep referring to the "selling agent", but I'm kinda hearing that you're the buyer. If that is the case, then the other agent is the listing agent and your agent (if you're represented) is the "selling agent". Secondly, very seldom will banks or lenders actually give out the BPO value or the appraised value of a property. Reason being is that they're trying to get as much as humanly possible in order to mitigate their loss on a short sale, so they're really not inclined to "tip their hand"....unless it's a HAFA or FHA short sale. If there's a real dispute in value, then the listing agent may be able to submit another CMA and call it a "dispute of value" to submit to the lender (if they reject your $2k increase). Also, it's not uncommon for counteroffers to be made verbally. Are you being represented by an agent?

Replies

Vanessa Calhoun April 7, 2011 at 4:22am

I'm confused....you keep referring to the "selling agent", but I'm kinda hearing that you're the buyer. If that is the case, then the other agent is the listing agent and your agent (if you're represented) is the "selling agent". Secondly, very seldom will banks or lenders actually give out the BPO value or the appraised value of a property. Reason being is that they're trying to get as much as humanly possible in order to mitigate their loss on a short sale, so they're really not inclined to "tip their hand"....unless it's a HAFA or FHA short sale. If there's a real dispute in value, then the listing agent may be able to submit another CMA and call it a "dispute of value" to submit to the lender (if they reject your $2k increase). Also, it's not uncommon for counteroffers to be made verbally. Are you being represented by an agent?
Jim Schneider April 6, 2011 at 10:17am

It eouln't be unusual for this to be a verbal, and yes, seller contributions is one way the deal could be resolved. In many cases banks don't care where the money's comming from, as long as there's enough of it. Have your buyers agree to the 2k more, and tell them that's it, imho.
Trina Gonzales April 6, 2011 at 10:15am

Get it in writing. The negotiator from Chase should be able to counter you in writing via the listing agent if you insist on it. It sounds like they don't want to be honest with you. Seller is probably being required to contribute and doesn't want to or may be unable to. Instead of the listing agent being upfront and honest with you to make the deal work, they sound like they're putting it on the buyer. Your shortsale approval letter should spell out all the terms if you get agreement so you see if seller coming in with anything or a prom note or something.

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