quote:

Originally posted by southernmaninla:

quote:

Originally posted by frayedends:
Actually I'm confused. So there was no accepted offer on the house yet? This happened when the offer was made?

In that case if the offer is approved and then it falls apart the listing agent loses out as well as the buyer. Buyer would be mad at paying for an appraisal and then losing financing. She is doing due diligence in checking the financing before accepting an offer.

Also an agent can raise the price at any time without consequence if there is no accepted offer.

The offer has not been accepted. However, the offer was for the full asking price.

edited to add. The price has not changed.

Sorry for not spelling it out better. The buyer is and has been a very good employee of mine and it pisses me off he's being done this way.

quote:

Originally posted by southernmaninla:

quote:

Originally posted by frayedends:
Actually I'm confused. So there was no accepted offer on the house yet? This happened when the offer was made?

In that case if the offer is approved and then it falls apart the listing agent loses out as well as the buyer. Buyer would be mad at paying for an appraisal and then losing financing. She is doing due diligence in checking the financing before accepting an offer.

Also an agent can raise the price at any time without consequence if there is no accepted offer.

The offer has not been accepted. However, the offer was for the full asking price.

In that case the agent doesn't have to play games. No one has to accept an offer, regardless of the price. Unless something is different in Kansas I guess. But my girlfriend has had clients take lower offers with better financing many times.

quote:

Originally posted by frayedends:

quote:

Originally posted by southernmaninla:

quote:

Originally posted by frayedends:
Actually I'm confused. So there was no accepted offer on the house yet? This happened when the offer was made?

In that case if the offer is approved and then it falls apart the listing agent loses out as well as the buyer. Buyer would be mad at paying for an appraisal and then losing financing. She is doing due diligence in checking the financing before accepting an offer.

Also an agent can raise the price at any time without consequence if there is no accepted offer.

The offer has not been accepted. However, the offer was for the full asking price.

In that case the agent doesn't have to play games. No one has to accept an offer, regardless of the price. Unless something is different in Kansas I guess. But my girlfriend has had clients take lower offers with better financing many times.

Makes sense I guess but there are no other owner/occupy on the table and the restriction by Fannie Mae ends Thursday.

quote:

Originally posted by southernmaninla:


Makes sense I guess but there are no other owner/occupy on the table and the restriction by Fannie Mae ends Thursday.

Hopefully he finds something else. It's a seller's market around here. Always multiple offers. It's tough to be a buyer.

ETA: I guess I didn't realize it was a "first look initiative" which is what you are describing. I'm not really sure how that works but it is in the agents interest to make sure financing is solid. If the financing bank found issues later it would be worse so better to check up front. In this case, did the bank back out because of the condition?

quote:

Originally posted by frayedends:

quote:

Originally posted by southernmaninla:


Makes sense I guess but there are no other owner/occupy on the table and the restriction by Fannie Mae ends Thursday.

Hopefully he finds something else. It's a seller's market around here. Always multiple offers. It's tough to be a buyer.

ETA: I guess I didn't realize it was a "first look initiative" which is what you are describing. I'm not really sure how that works but it is in the agents interest to make sure financing is solid. If the financing bank found issues later it would be worse so better to check up front. In this case, did the bank back out because of the condition?

It's not over yet. Just seems really fishy. I'm throwing my hat in the ring Thursday. I'll owner finance it to my employee.

And frayedends thank you for the responses

quote:

Originally posted by southernmaninla:
And frayedends thank you for the responses

You are very welcome. I figured I'd consult my girlfriend since she's one of the top realtors around here. I hope it all works out.

Did your employee put a time limit on the offer? If the offer wasn't accepted or responded to, it would be difficult at best to get any traction on a complaint.

Many times (at least in this area) getting a conventional mortgage on < 50K is a non-starter.

Offering full price doesn't always guarantee a win. Getting an appraisal lower than the agreed upon sale price can change things too. If the lender isn't willing to lend more than the appraisal and the seller won't come down to the appraisal value, then the buyer brings cash to the table or walks away.

In my opinion, too many times people enter into real estate deals with their hearts not their heads. This causes people to over value things. If they have the means to pay greater than actual value, they might win over someone only willing to pay actual value. Don't fall into this trap.

Does it have to be that city, or can it be the county? There is other property available +/- 10K in the area that might fit the bill.

Originally posted by ffips:
Did your employee put a time limit on the offer? If the offer wasn't accepted or responded to, it would be difficult at best to get any traction on a complaint.

Many times (at least in this area) getting a conventional mortgage on < 50K is a non-starter.

Offering full price doesn't always guarantee a win. Getting an appraisal lower than the agreed upon sale price can change things too. If the lender isn't willing to lend more than the appraisal and the seller won't come down to the appraisal value, then the buyer brings cash to the table or walks away.

In my opinion, too many times people enter into real estate deals with their hearts not their heads. This causes people to over value things. If they have the means to pay greater than actual value, they might win over someone only willing to pay actual value. Don't fall into this trap.

Does it have to be that city, or can it be the county? There is other property available +/- 10K in the area that might fit the bill.[/QUOTE]

Not sure on a time limit. Around here there are a lot of starter homes in the 28-50k range. Rural KS it is what brought us to this area and the low cost of living gsve me the freedom to start my business. The property is perfect for him. Tommorow I will be putting an offer in on it at full price.

Lived in many parts of KS growing up, I miss north central (Beloit) the most. I lived in Frontenac, Beloit, Hutchinson, and Sterling. Beloit and Sterling were my favorites. Once you get far enough away from Topeka and Lawerence, common sense seems to take over.

Good luck with the purchase and business venture. Are you set on Lyndon, or generally open to anywhere rural KS?

quote:

Originally posted by southernmaninla:
It's not over yet. Just seems really fishy. I'm throwing my hat in the ring Thursday. I'll owner finance it to my employee.

I'm going through a similar thing here in VA.
I've offered a cash deal so that my employee can lease purchase it from me.
The listing agent told my agent last night that there is someone else in the wings although we have a verbal agreement and we are just waiting on them signing the paperwork.

Between banks and shady real estate agents it's a wonder anyone buys houses ....

quote:

Originally posted by smlsig:

quote:

Originally posted by southernmaninla:
It's not over yet. Just seems really fishy. I'm throwing my hat in the ring Thursday. I'll owner finance it to my employee.

I'm going through a similar thing here in VA.
I've offered a cash deal so that my employee can lease purchase it from me.
The listing agent told my agent last night that there is someone else in the wings although we have a verbal agreement and we are just waiting on them signing the paperwork.

Between banks and shady real estate agents it's a wonder anyone buys houses ....

I wouldn't say anything is shady. If the listing agent doesn't get the most for a property then they aren't doing their job. Until you have a signed offer you really have nothing. It goes both ways. I've seen quite a few deals fall apart based on virtually nothing because the buyer backs out after the offer is accepted. That's usually easy for a buyer to do by simply saying they don't like something on the home inspection.

Well we now have further information. the listing agent not only contacted the bank she emailed old photos of the house before any of the remodel work was done as proof of the condition. We have the emails.

quote:

Originally posted by southernmaninla:
Well we now have further information. the listing agent not only contacted the bank she emailed old photos of the house before any of the remodel work was done as proof of the condition. We have the emails.

Nice! Definitely unethical in that case...

The sales persons job is to present all offers to the seller. It is up to the lender/buyer to acquire an appraiser to value the property. If the property is appraised, at or more than the appraisal, it should be a done deal.

It is not the sales person's job to discourage a sale for any reason. The lender gets to decide if they are willing to provide a mortgage.

quote:

Originally posted by dlc444:
The sales persons job is to present all offers to the seller. It is up to the lender/buyer to acquire an appraiser to value the property. If the property is appraised, at or more than the appraisal, it should be a done deal.

It is not the sales person's job to discourage a sale for any reason. The lender gets to decide if they are willing to provide a mortgage.

Not the case with an unconventional loan as part of the offer. The agent has to present all offers and advise the seller which offer is good. In this case the seller is the bank. An offer with 3% down is a shitty offer from a financing perspective. There is a high probability probability the bank won’t finance this house because of condition. Remember it’s a homepath property. The listing agent is doing the right thing.

You are dealing with the unholy triumvirate of Brokers, Appraisers, and Realtors.

Shady as fuck is the only way they do it.

quote:

Originally posted by southernmaninla:
Well we now have further information. the listing agent not only contacted the bank she emailed old photos of the house before any of the remodel work was done as proof of the condition. We have the emails.

Super shady.

quote:

Originally posted by frayedends:
My girlfriend is a realtor and her response is below...



Any chance it was an FHA Loan? If so the property has to qualify. Certain financing programs will require the home be free from certain defects.

A listing agent doesn't want to take the property off the market if the buyers financing will not fly. I don’t believe this agent did anything unethical.

quote:

Originally posted by Skull Leader:
I just don't see how it should be the listing agent's business how the buyer secures funding to buy the property.

Based on my girlfriend's response, and what I've learned from seeing her work, financing is of huge interest to the listing agent. Deals fall apart all the time due to financing falling through. They need to make sure the buyer really is qualified.

But shouldn’t the listing agent raise that issue to the seller when accepting the offer instead of bad mouthing the property he was hired to sell?

quote:

Originally posted by Rey HRH:

quote:

Originally posted by frayedends:
My girlfriend is a realtor and her response is below...



Any chance it was an FHA Loan? If so the property has to qualify. Certain financing programs will require the home be free from certain defects.

A listing agent doesn't want to take the property off the market if the buyers financing will not fly. I don’t believe this agent did anything unethical.

quote:

Originally posted by Skull Leader:
I just don't see how it should be the listing agent's business how the buyer secures funding to buy the property.

Based on my girlfriend's response, and what I've learned from seeing her work, financing is of huge interest to the listing agent. Deals fall apart all the time due to financing falling through. They need to make sure the buyer really is qualified.

But shouldn’t the listing agent raise that issue to the seller when accepting the offer instead of bad mouthing the property he was hired to sell?

If you read the entire thread you will find that the offer wasn’t accepted. The listing agent was simply verifying the financing because the offer was with an unconventional loan. It’s simple due diligence when advising the seller on whether it’s a good offer or not.