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I have a few questions about a quick-sale I made an offer on. I've never owned a home, so bear with me.
I made an offer on a quick-sale a few days ago. I found out though that the sellers lender went out of business the day before I made my offer. The offer I made was about $20,000 below asking price. The realtor confided that the seller actually paid about $60,000 more than asking price. I also stated in my contract that I wanted the sellers to pay 3% of closing and prepaids. I know this is probably asking a lot so I'm not expected anything...but was hoping more for a counter offer I can work with. I did provide a pre-approval letter.
In your opinion, would I have a better chance of getting approval since the sellers lending co. is going out of business?
Also, my contract stated I have 30 days to get a home inspection and back out if need be. Will the approval process take longer than 30 days? The realtor said it would probably be next week until I hear anything, but she's not certain. Should I have requested a time limit on their response? Thanks
Thanks for the responses! I don't really feel that I'm "in over my head". Just wanted to clarify a few things. I've been reading up a lot on buying homes and have several persons in the family who know a great deal about real estate...just wanted to get a different prospective on this website. In this case, I do have some doubts that the offer I made won't be accepted. I feel that I made a very fair offer though, considering all the work that I will need to do once I move in. The realtor thats representing the house seems very honest. She told me today that there was another offer on the house, but it was $12,000.00 below my offer. Anyway, I'm praying and keeping my fingers crossed. Thanks again for the responses and anymore are welcome!
Thanks for the responses! I don't really feel that I'm "in over my head". Just wanted to clarify a few things. I've been reading up a lot on buying homes and have several persons in the family who know a great deal about real estate...just wanted to get a different prospective on this website. In this case, I do have some doubts that the offer I made won't be accepted. I feel that I made a very fair offer though, considering all the work that I will need to do once I move in. The realtor thats representing the house seems very honest. She told me today that there was another offer on the house, but it was $12,000.00 below my offer. Anyway, I'm praying and keeping my fingers crossed. Thanks again for the responses and anymore are welcome!
When she told you what another offer was you should have gotten suspicious.. If she tells you what the competing offers was what does she tell the other side?
When she told you what another offer was you should have gotten suspicious.. If she tells you what the competing offers was what does she tell the other side?
You are in over your head..
She told me that offer came from another buyer with their realtor. I'm assuming she's favoring my side since she is the only realtor working with me.
IMO, what she is doing is highly unethical unless she has in writing from the seller that she can divulge this information. I don't see why an owner would be allowing someone to divulge information such as a lower offer since it doesn't help their cause to get a best offer or help them in negotiating. She's supposed to be representing them as the listing agent and if she's a transaction broker she's stepped way over the line also. She's either very ignorant or she's very unethical. Take your pick.
By 'quick sale' are you talking about a 'short sale' and you are awaiting approval from a bank on the offer? Or is the seller coming to the table with money? Get yourself a Realtor that knows what they are doing. She's not supposed to be 'favoring' anybody except her client or if she's a transaction broker she's supposed to be treating everyone fairly without divulging information or motivation.
Thanks for the responses! I don't really feel that I'm "in over my head". Just wanted to clarify a few things. I've been reading up a lot on buying homes and have several persons in the family who know a great deal about real estate...just wanted to get a different prospective on this website. In this case, I do have some doubts that the offer I made won't be accepted. I feel that I made a very fair offer though, considering all the work that I will need to do once I move in. The realtor thats representing the house seems very honest. She told me today that there was another offer on the house, but it was $12,000.00 below my offer. Anyway, I'm praying and keeping my fingers crossed. Thanks again for the responses and anymore are welcome!
I've heard that before and I love the "I have family who knows a lot about RE" line. Maybe your situation is different, but leave the armchair QB's at home and find a professional. They probably don't know as much as much as they think unless you have licensed agents in your family. It does sound like you're in over your head to me. Honestly, you've already made a mistake by going through the agent representing the seller who you've painted a none to scrupulous light on. Don't compound your situation. Anyway, I'm done with the post now. Good luck.
IMO, what she is doing is highly unethical unless she has in writing from the seller that she can divulge this information. I don't see why an owner would be allowing someone to divulge information such as a lower offer since it doesn't help their cause to get a best offer or help them in negotiating. She's supposed to be representing them as the listing agent and if she's a transaction broker she's stepped way over the line also. She's either very ignorant or she's very unethical. Take your pick.
By 'quick sale' are you talking about a 'short sale' and you are awaiting approval from a bank on the offer? Or is the seller coming to the table with money? Get yourself a Realtor that knows what they are doing. She's not supposed to be 'favoring' anybody except her client or if she's a transaction broker she's supposed to be treating everyone fairly without divulging information or motivation.
Thanks for the response.
Yes, this is a short sale and I'm waiting on approval from the bank. I'm also aware that this process can take a loooong time. I'm in no hurry to move right away though, so this doesn't matter.
I did think this was rather odd at first that the realtor divulged so much information. She even told me the first day I looked at the house that a builder was going to offer substatially less than the listing price but figered he couldn't even make a profit. (this was after I acted as if I was uninterested in the house). This made me hopful that I could also offer substantially less than the listing price. The house was built in 2006 and the only thing I SEE is cosmetic flaws, but if my offer is accepted I plan to hire an inspector and an apprasior is mandatory for my conventional loan.
The realtor left a message today that there was another offer that was $8,000 above my offer but he was approved on an FHA loan and she doesn't know if the house will go FHA...he had an agent representing him. I plan on leaving my offer the same for the time being as it sounds a little fishy that she is revealing this to me. For those of you that say "I'm in over my head", please elaborate. I'm not disagreeing with you as I will admit that I don't know much about RE, but it is my understanding that you get pre-approved, make an offer, and wait for the approval, counter-offers, or denial. What else could actually go wrong as this "in over your head" bit is worrying me! I understand that I messed up when I didn't have a realtor on my side but it's too late now, I already signed the contract. When I signed the contract, I had my lender tell me word for word what to write so that I will have ways to opt out if need be. I also had the lender look it over before I signed. Thanks for listening!!!
The realtor left a message today that there was another offer that was $8,000 above my offer but he was approved on an FHA loan and she doesn't know if the house will go FHA...he had an agent representing him.
What else could actually go wrong as this "in over your head" bit is worrying me! I understand that I messed up when I didn't have a realtor on my side but it's too late now, I already signed the contract. When I signed the contract, I had my lender tell me word for word what to write so that I will have ways to opt out if need be. I also had the lender look it over before I signed. Thanks for listening!!!
First, it sounds a bit like the agent is taking you for a ride.
Secondly, a lender shouldn't be practicing real estate. Your lender should have counseled you to find a Realtor to represent or recommended someone rather than tell you how to write an offer. On the plus side for you, if things go badly you can sue your lender for advising you in real estate.
Thirdly, buying a home is complicated. You've got the basics down but if it was really that easy we wouldn't have work anymore. There is too much that can go wrong to even get started. You're closing your first I assume, a good agent closes several a month. Short sales are also more complicated than a normal transaction although most of the burden falls on the listing agent.
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