This post is a bit of a rant, but it should also help some prospective buyers understand the lack of time control that exists in so many transactions currently.
I tend to work with buyers, and here in West Florida, buyers like low prices, and this can mean federally owned foreclosures. They can be a great value, and come in all conditions, from move in ready to, umm, let's just say not move in ready.
Whether it is a HUD home, or Fannie Mae, or Freddie Mac, these homes are not sold directly by the Federal gov't, rather they are handled by contractor companies, who then work with area brokerages to complete the marketing and sale of the properties. As the Fed tries hard to get rid of the inventory of homes, they are very diligent about working on the processes in order to expedite, and standardize, the steps from foreclosure to the sale. Kudos to them, buying one of these homes has become very predictable, the disclosures are clear and comprehensive, and I can usually coach a buyer from day one on what to expect.
Part of the coaching has become, with Fannie and Freddie, that when we get verbal acceptance, the clock starts ticking. We do our inspections, and have to satisfy ourselves within the contingency period. But, I also coach them, that until we get the addendums, and return the addendums, we will not have an endorsed copy of the contract, with which to seek out our financing. In effect, without the signed contract, we have no deal. Lately, this has really become more and more of an issue, as when we get verbal acceptance, there is the fear of hiring an inspector, paying for the inspection, only to find out that another offer came in after ours, was accepted as well, and the seller is going with the other contract! (It happens-I know first hand!)
So, I am always clear, until we get addendums, we can not rely on the seller to perform. Only now it seems to take FOREVER to get these addendums. I got a verbal acceptance on the 5th of August, and only today did I get the addendums. I have already lost 7 of the 10 days for inspection contingency...
Which brings me to the subject of this post. How much time was lost as the addendums, created by the contractor, e mailed to the brokerage, in this case the broker manager of the brokerage, forwarded to the listing agent, and then forwarded to me? Having dealt with this brokerage before, I know firsthand that the broker gets all e mails, then forwards to the agents. As e mails sit in inboxes, or people are in meetings, everything SLOWS down. And agents whose phones can not read and forward mails with attachments have really got to reconsider. Once accepted, the addendums should be in the buyers hands in 24 hours or less. Anything more is hard to understand in todays world.
If you agree, let me know, if you disagree, I am interested in this as well. Thanks for reading!
Comments(1)