Real Estate Blog - Shingle Wise, House Foolish

Home : Blogs : Patricia Kennedy : Pat Kennedy - Your Washington, DC Real Estate Connection

Shingle Wise, House Foolish

My seller just signed one of the offers that came in on her adorable house in Brookland. And they were both strong. One agent is had a lucky day, and the other, well, didn't.

It was just one tiny, but at the same time huge difference in the offers.

Lucky Agent’s offer included a lender’s letter is from a medium size local lender. The loan officer has been in the business for longer than I have, and when I called to ask how they would handle the appraisal, I liked his answer. They use a local appraisal firm familiar with in-town neighborhoods.

Unlucky agent’s offer had a letter from a loan officer I didn't know and who didn't return my call. He was from a gigantic bank that has been the subject of rants at business meetings and broker's opens all over town. Colleagues have been pulling their hair out over this particular lender, mostly over appraisals and underwriting on FHA loans.

So I called Unlucky Agent and asked about the possibility of his clients using another lender to do the transaction. He explained that buyer banked at the gigantic institution, and they were going to give a customer rebate of some of the fees they charge. But did he understand that her insistence on using this lender was going to harm her competitive position? Could he explain it to his buyer so that she understood?

There are increasing numbers of balding Realtors® running around our nation's capital. I don't want to be one of them.

So, we took the offer with the pre-approval from the guy who reminds me of Jeff Belonger. You know, he knows his stuff and gets the job done.

And I'll get to keep my hair, which is one of my best features.

This was a house that went for about $400,000. I wonder how much of a rebate the big bank was going to give her?

Posted by Patricia Kennedy on 09/23/2009 10:20 PM

Comments (25)

Multiple Offers in the Mortgage / Finance Channel

multiple offers, washignton dc real estate, pat kennedy

Post is included in group: Realtors®
Post is included in group: Diary of a Realtor

25 Comments on Shingle Wise, House Foolish

SEP

Oh Pat, I know how that goes! And because you have the MOST gorgeous head of red hair that is to die for, I for one am glad that you are not pulling it all out!

Smart thing.

I just had an out of town appraiser call me to appraise my buyers place that they are buying. I have a pit in my stomach on how this could turn out.

We need to be aware of all the issues. In today's banking economy knowing who you are dealing with can make a big difference.

Hi Pat... probably not enough of a rebate to make it worth losing a house that she really loved. Oh well!

Patricia,

Wow, it is something nice to get multiple offers on a listing. We are not quite yet there, but it would be great.

Pat..that was a wise decision..Yes you do have great hair..no need to pull it out..LOL

HELPFULHANNAH

SEP

I wonder if Unlucky agent realizes how Unlucky he was :)

It is not luck to get your buyer TRULY pre-approved by a reputable lender before making an offer. It's just doing your job well - not for the sake of the listing agent's hair - as pretty and red as it might be - but for the strength (and now, once again, for the competitiveness) of the offer.

If your offer has competition, the value of that pre-approval could be crucial.

Even if your offer has no competition, a good, TRUE pre-approval strengthens the buyer when negotiating (1) the price and (2) the repairs.

I love red hair. I'd love to have mine back.

Just had a similar experience.

In our current market working with a lender we can look square in the face when the chips are down is important. Kudos on another terrific sale!

Pat,

We need to know who we are dealing with or the whole deal could blow up in our faces and then no body will be happy.

I recently had a title company only charge the sellers half the commission that was owed. I had not heard of the title company, but allowed it because the other agent said they had the back up deal for her buyers and that would make it easier. Lesson learned.

It takes a team effort to get things done. That effort has to be multiplied in today's market. With the new rules concerning to disclosures to the borrower in July the lender needs to know the closing costs that will be charged by the title company and any administrative fees that will be charged by the real estate agents firm. If they come in high settlement could be delayed due to the new law.

Knowing and trusting all parties involved will prevent hair loss.

Pat, sounds like you and your client made the right choice for the right reasons. I love your gorgeous hair, but I am partial to red hair as well. LOL

Andrea, the hair is one of the few things I have left to be vain about!

Heather, good luck! I'm hoping that the big banks figure out that their appraisal practices are costing them a lot more than they are saving!

Terry and Bonnie, a HUGE difference!

Steve, I'm betting that whatever they subtract in lenders fees they make up in a higher interest rate.

Jon, it is nice to have multiples. It isn't crazy like it used to be, but still, nice. Maybe nicer.

Hannah, and I really like your new look!

Jane, when I called Unlucky Agent, he didn't seem concerned enough to fix the problem before I presented offers.

Jim, in a competitive situation where almost everything is close to equal, something like this makes a giant difference.

Janice, I hope it works out for you!

Cindy, you're right! And when a lender doesn't return that first phone call, I take it as, well, less than auspicious!

Don, I could see that easily happening.

Barb, I sure hope you got paid properly!

Alan, you depend on the reputation of all of the players in the transaction.

And Jan Marie, Let's hope we made the right choice! And Thank you!

Patricia, that was smart of you to call the lender on their pre-approval. Good luck on your closing!

Pat,

That is an interesting post. Sometimes people do things that just shift them out of the most competitive position.

What a smart move on your part and a good move for your sellers. Sometimes big is not always better. Job well done!!

SEP

Patricia, Actually, I know quite a few Realtors that look like this guy. I don't blame you, I am in a similar situation with a buyer and have told him to shop around for a lender to replace his internet lender with exorbinant fees.

Pat - Congratulations on the accepted offer. Yes much consideration has to be given to lenders these days since it makes a difference as to how the transaction will proceed.

Pat - You are so right about a local lender who REALLY knows their "stuff", it makes all the difference in the world. Kudos to you for even talking to the second agent about giving her clients a fighting chance. Taking the high road the entire way.

Michael

SEP

We look out for our sellers also by checking out the lender on the other side. And we've heard the same excuse about receiving a rebate - and had the whole thing not pan out. It is much more efficient to be able to deal with a rep directly and know the score.

Too bad for the unlucky agent, but we have all had those buyers who insist on using "their" lender. Is $400k even in FHA range in your area? My area is $271k.

SEP

Goodness, how did the feature police miss this one. The buyers choice of lender definately can be a deciding factor in a competitive situation. Frankly, their choice of agent can, as well, for many of the same reasons. (calls not returned, etc.)

great decision on your part. These days you got to do more to make sure things will work out.

This blog does not allow anonymous comments