Fannie Mae Property (contingencies, appraisal, agent, investments)
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Does anyone has recent experience with Fannie Mae properties?
In our area every single house I was looking at (Fannie Mae ones) had multiple offers on the table.
Someone please explain to me why they have First Look avail? Can they accept offers before First Look period is over?
We submitted one and were asked to gave our highest and best right the way since there were more than 1 offer already (I am sure 1 offer), so we submitted our. The deadline for best offer is over. House is still listed as active. We hear nothing.
How long is it normal for Fannie Mae to come back to buyers. The house is still at Forst Look period, and the open house is scheduled by the end of First Look period... Is it a bad sign?
They typically won't respond until the end of the 1st look period. They can continue to receive offers while they decide, but usually you'll hear something back within a day or two. If all the offers were low, they won't accept any of them and keep it active.
FirstLook for Homepath homes has to do with whether the buyer is intending to live in versus investors.
Before the FirstLook period is over, investors offer will not be accepted.
During the initial period that a house is put up and list as FirstLook, they have a window that all offers are submited. Fannie Mae review all those offers and may counter to some/all or accept one to proceed.
I recently purchase my first Fannie Mae house after over 1 year of offers on different homes. From an investor's point of view. The pricing start with for FirstLook is almost always too high. I've always offered 25%-35% below their asking price. For my recent purchase, my first offer was countered with $100 off from the original price. My agent said that was their way of saying, get serious. I did end up with the place for about 20% below asking price.
FirstLook for Homepath homes has to do with whether the buyer is intending to live in versus investors.
Before the FirstLook period is over, investors offer will not be accepted.
During the initial period that a house is put up and list as FirstLook, they have a window that all offers are submited. Fannie Mae review all those offers and may counter to some/all or accept one to proceed.
I recently purchase my first Fannie Mae house after over 1 year of offers on different homes. From an investor's point of view. The pricing start with for FirstLook is almost always too high. I've always offered 25%-35% below their asking price. For my recent purchase, my first offer was countered with $100 off from the original price. My agent said that was their way of saying, get serious. I did end up with the place for about 20% below asking price.
Thanks for sharing your experience!
I made an offer for Homepath house within a week after they listed that house, 10% below asking price (not because I just decided to make a low ball offer, but because that house need some serious investments after being vacant with all utilities of for over 3 years), and my offer was rejected. In our area they have at least 5 offers for each listing and according to my realtor, all offers are above asking price. I will check it by keeping my eye on the final sale price (it will be posted on appraisal web site whenever it will be sold)
Thanks for sharing your experience!
I made an offer for Homepath house within a week after they listed that house, 10% below asking price (not because I just decided to make a low ball offer, but because that house need some serious investments after being vacant with all utilities of for over 3 years), and my offer was rejected. In our area they have at least 5 offers for each listing and according to my realtor, all offers are above asking price. I will check it by keeping my eye on the final sale price (it will be posted on appraisal web site whenever it will be sold)
It really depends on the market area and specifics of the home. My investment home didn't sell on FirstLook cause quite honestly, one could not get a mortgage approved. It was in rough shape (an understatement). If you don't see the offer for Homepath finance option for a home listed, those home has lots of room to negotiate.
In my case, the price was dropped a few times. The last price drop they had was $20K and I offered them about 35% below that. Of course it was without contingencies, inspection waived and close within 30 days. It still took me close to 2 months to finally close because Fannie Mae had to take care of some violations that previous owner had during title search.
I see few houses on Homepath sitting for a long time, but the reaon is simple - these houses are way overpriced! Similar houses within same community are listed for sale (by owner) for less money and houses sold my owner don't need as much work as Homepath houses...
I am not letting my feeling go ahead and get the house no matter what (money wise), but for most people in our area it's not the case. I saw bidding wars for houses that honestly don't cost that much. After searching for houses for over a year people are getting desparate and bidding like crazy... sometime their bid if higher than the price for similar home sold by owner... It's all due to low inventory in our area...
As an investor, I bought a Fannie Mae house a couple of years ago. The listing broker told my broker that there were multiple offers, and looked for the house to sell over list price. I typically take this with a grain of salt, but this home was just reduced from $99K to $79K. My offer was for $85.1K. I won the bid, but during the inspection I found some damage that wasn't obvious. The bad foundation and other things were obvious, but the termites weren't. So I told them I was lowering my offer to $70K. They countered at $74K and said that was firm; I went ahead and bought the house. It ended up only costing me around $800 to fix the termite damage and have the house treated, and I made a very good profit after I did extensive renovations and sold the house 4 months later. I have a bit of an advantage over some with 30 years of experience as a real estate appraiser and investor.
I am still looking for these, but they are getting harder to find.
I though our story with Fannie Mae house was over when we received a rejection letter, but yesterday listing agent added a note about all offers need to be submitted by tomorrow. Look like all offers were a low ball offers (like mine and all were rejected, or maybe they had offers within the same price range and now want to pick the best... who knows... Listing agent said our original offer is still on the table, but we received a note it was rejected... I am confused. We will resubmit our offer just in case and see...
I think it's my first and last house (and experience) with Fannie Mae...
Fannie Mae puts the houses out at a high price because homepath mortgages don't need an appraisal and they don't need to meet inspection criteria like FHA loans. They will come down to market price when time shows there are no offers, but they aren't likely to take a lower offer in the first 30-60 days. Just how it is.
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and all were rejected, or maybe they had offers within the same price range and now want to pick the best... who knows... Listing agent said our original offer is still on the table, but we received a note it was rejected... I am confused. We will resubmit our offer just in case and see...
