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Want to buy it? Then get serious.

I had a request from Renee Burrows, earlier this week, to write a post on what Buyers and their REALTORS® can do to make their offers more appealing to my Sellers. As, primarily a listing Broker, I can assure you it's not always about the price. So what do I look for in an offer? What can a REALTOR® do to ensure that their Buyer's offer is taken seriously? A purchase offer, just like most things, is all about the presentation. If you want it to be taken seriously then present it seriously. So here are some tips:

It must be in writing. Now folks to me this is a big one. My standard response, to a verbal offer, is: "Is the offer so bad you won't even take the time to put it in writing? My Seller will NOT negotiate a verbal offer, it is a condition of my listing agreement." NEXT!

Send me the ENTIRE purchase offer with ALL addendums. Also, I need a copy of the escrow check and a LENDER letter.

Make sure the offer is legible with NO blank spaces. If your handwriting is bad then type it. If I can't read it, I can't present it. I do not get paid to decipher offers.

After you have faxed or E-mailed the offer. Pick up the phone and make sure I received it. I had this happen last week. A REALTOR® called me on Friday to ask if I had a response on the offer she sent over on Wednesday. "Nope, never got it" She had faxed it to the wrong number.

Please, please, please put a cover letter with your offer. And please, please, please make sure your contact information can be read. It may be your only Buyer and your only offer but I can assure you it's not my only offer. I can't respond if I don't know where it came from.

Make sure the figures add up correctly and the dates for contingencies are correct i.e. A 100% financing deal with a pre-approval for 95% financing. Huh? A 21 day closing date with 30 days for mortgage approval. What? An inspection period longer than the closing period. Hello?

Now folks, this is pretty basic stuff but it happens ALL the time. These offers will rarely be accepted. If you don't take your offers serious neither will my Sellers.

OK, now lets assume you have the basics down. Here are some things you can show me, to really get me excited.

A pre-approval letter from a known Lender. Not ABC we loan money cheap.

A letter from the Buyer telling my Sellers how much they love the house and how much they are looking forward to their new home. This is an excellent tool to give Sellers that have lived in their home for a long time. They want someone that will enjoy and take care of "their" home.

The Buyer's credit score. I will love you for this one. If they have great credit, then prove it to me. I won't even show the Sellers. But it sure does make me warm and fuzzy.

Proof of funds. Paying cash? Have a 20% down payment? Prove it to me. I'm going to ask anyway, so you might as well beat me to the punch. By the way, cash does not mean, "when we sell our house." Cash means AVAILABLE funds in the bank.

Oh, one more thing, communicate with me. Return your phone calls promptly. If it takes me three days to reach you, while we are negotiating, I will have zero motivation to want to do a 30-45 day transaction process with you. I will tell my Sellers this AND they will agree with me.

So there you go Renee, hope this helps. Any other suggestions from listing Brokers?

Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 03/12/2007 04:28 PM

Comments (87)

purchase offers, education, opinion

This post has been included in Florida Information Osceola County, FL Information Poinciana, FL Information

87 Comments on Want to buy it? Then get serious.

MAR

2007

Reserved Parking For "The Lovely Wife"...TLW...ROAR!

Hubba! Bubba! Wink. Wink.

Darlin' could you please send this article over to the Realtor that had her 9 year old daughter fill out a purchase offer with a crayon. She really needs to read this. Oh! Wait. That's right. She didn't speak or read any English. Maybe her daughter could read it to her :)

I have one more suggestion...Please don't send offers to us that have been written up by your child. If must to do this please humor us and enclose a drawing so that we can see how talented your child really is :)

one that gets me is i have a small commerical piece that is NO CONTINGENCIES--that means NONE

not they're getting the grant money from the enterprize zone--it means they have the money--it doens't mean that i'm giving you the town's CO--it means cash "as is"

i had one agent tell me that a mortgage was cash to my seller so what did it matter--because if they couldn't get it there was no deal--duhhhhhhh

Good suggestions. I try to make a great first impression to the listing agent. I want them to want to do business with me. I figure that it might give my buyer an edge. There's nothing better than having the listing agent on your side as much as possible.

Very nice. I am often surprised at how caverlier some buyers and agents are about presentation of an offer. I don't list a lot, but when I do, I put in the MLS, "ALL offers must be accompanied by a lender's letter and a financial statement." My sellers know that we don't even look at offers without both. I can determine from the financial statement the buyers ability to close.

With a financial statement, the buyer is stating in writing how much cash they have, where their funds are coming from and they sign it with an affirmation at the bottom. If the deal falls apart because of buyer default, they better not try to get their earnest money back.

We get these offers from inexperienced agents who will write anything for anyone and expect the listing agent to cooperate. No way a seller should take their home off market without an assurance that the sale will close.

I, as do many agents in the valley, request the pre-approval letter (or loan status report/LSR) to be included with all offers...

Great list! As a listing agent who was in So. Calif. during the days of up to 60 offers on a property we used to have entire meetings talking about how to make an offer at least get a counter. You hit all of them. The cover letter talking about the clients strengths and summarizing the terms of the offer and the letter from the buyer that touches the sellers in a personal way were the ones that ultimately made the difference. And please, buyers' agents, use zipforms or whatever is available in your area!

Diane

Bryant, is that all that you expect from us is to have our paperwork in proper order and to have our clients properly prepared? Dang! even I can do that. Thanks.

I am an Exclusive Buyer's Agent and I agree with (and do) everyone of your suggestions. I find the letter to the seller is especially helpful. However, I find that a lot of the listing agents in my market do not appreciate my buyer's writing the letter. I have always wondered why.

Great post!

Excellent Post, Solid advice. The only information I would add is the following.

A Pre Approval by natural is an approval by the bank / Investor of the person buying the home, but not of the home, which means that only the appraisal or Inspection can kill the deal. It's very rare to see a real pre-approval and if the lender / buying agent is claiming that it is, then I alway request that the Financial Contingencies be waved
Credit score by itself is not a Determination of the loan, for example you may have a 700 middle score and be unemployed or just switch careers.
I would request a meeting with the Buyer lender and review the documents that were provide to them for the Pre approval, then you will see the Truth! and really serve your seller.

Excellent, Bryant. I do all this when working with buyers, and expect the same as L.A. Good review for all those who don't seem to have a clue, or don't care, etc. These seem like reasonable expectations to me.

Jeff

Hi Bryant: I recently had a featured post entitled Sex and Real Estate: The BUYER as Beloved. I listed many of the same items you have here. I also think it is important to present offers in person -- or, if not acceptable to the seller or in your community - to take the time to sit down with the listing agent. I think a strong pre-approval may be more acceptable to buyers than a credit score, however. I think some agents ten to be "accidental" buyer agents and they need to learn the skills to properly represent their buyers.

I had a deal with a minimum-service buyer's agent a couple months ago and I think she hit - or didn't hit - 80% of the things on the list. It was that way all the way through to closing.

I will say, I've never ever received a 'letter to the seller'. I'm not aware of it being done in this market, but it would certainly be a plus to start off with a good repoire between the two parties.

It's such basic stuff but so many agents neglect the little things that matter. Being thorough and complete goes a long way.

Great points Bryant - I have not heard of the buyer writing the seller a letter before but I like it. That's one I'm going to have to think about a little more

The funny thing is that to get our real estate licenses atleast in Michigan, we didn't learn any of that. I applaud some states that require mentorship or a couple of years of college before you can be licensed to sell real estate since we are handling most peoples largest asset.

Hey BB!

You forgot one of the most important items on that list! The BA needs to just be "NICE". There is nothing worse than dealing with someone with a big "Tude". Like they're doing you and your Seller a big favor or something. We've actually had "fellow" agents make nasty comments about our Seller's property because they wouldn't accept their Buyer's low offer. Professional courtesy is especially important but then that's just my opinion.

Great post! I am a firm believer in everything you wrote! Would it be rude of me to print this out and fax it (anonymously) to several agents I know.

The saddest thing I have ever seen was a young "newbie" representing her parents and not following through on all the details of the purchase contract. She got a verbal agreement over the phone from the listing agent on the property her parents loved. She even managed to do an inspection before having the signed contract in hand.

Since she was a secret agent "newbie" she confided in no one about the transaction, not even her mentor.

Long story longer, the Seller got a better offer and since there was no signed contract....the whole thing blew up! Her parents were devastated, and so was she.

Needless to say, she is now waiting tables and has given up real estate.

Excellent post! Here's another thing that annoys the dickens out of me-----when a Realtor writes "prevailing rate" in the interest rate section of the contract. Talk about wiggle room when the deal falls apart!

It seems so simple doesn't it... the list is neither long nor complicated.. yet how often do you get everything together when you receive an offer.. What absolutely drives me insane is how often I have to chase an agent for the simplest item.. a signed agency disclosure, a signed counter by the buyer or copy of check and a letter from the lender.. When I get these items upfront and complete I know it will be an easy transaction as I am working with a professional.. and when I don't.. I know what to expect then too..

"Prevailing rate"...

Well that's not good :)

TLW: are offers written up by someone elses child acceptable? Adopted children? This real estate stuff is complex! ;)

Cheers, -B

Good Information BB.

Bryant

I mostly list,my buyers agent takes most buyers, I give more commission out to the buyers agent,half the time I do the work for them to earn their side.

I agree when you send me the whole package I will present the complete offer, regarding credit scores ,we have been very successful getting the report, I just tell them to leave off their SS# for their protection ,"they love that one" we will even go as far as asking for a copy of the front age of the appraisal, with just the appraised value, and we get most of those, although the buyer doe not have to show us and appraisers seem more secretive lately to give it up to the buyer if they have to pay at closing.

You are right,give it to me now ,because I will be asking for it anyway.

And my biggest pet peeve...fly by night mortgage, keep me,the seller ,they buyer the buyers agent fully informed of all aspects that pertain to the loan process, how about when the buyers agent gives you a real commitment date.........either they forget and you have to remind them to send it...or they send it ,still with some conditions.

Proof of funds...now do not get me started, how about when one time I asked for proof of funds and the realtor sent me a copy of an escrow for 5,000, I said bank funds,not escrow

COMMUNICATION,how about someone call you back, maybe the buyers agent?

no,they are too busy missing deadlines,it really bothers me what goes on.

"A letter from the Buyer telling my Sellers how much they love the house and how much they are looking forward to their new home. This is an excellent tool to give Sellers that have lived in their home for a long time. They want someone that will enjoy and take care of "their" home."

I like that. Hadn't heard of anyone doing that yet, but I'm still new.

Great post as usual BB-Tell me what do you think of the idea of Buyers Agent presenting offer to seller with LA? This request seems to be getting more popular.

Bryce...

LOL...No they're not acceptable. You cracked me up with that one :)

P.S. We also can not negotiate with a child. Although the Realtor involved thought we should :)

TLW...ROAR!

I seem to have missed the parts that make the offer exceptionally appealing...

Put down a decent chunk of cash with the offer if the buyer has funds liquid. When I see 5-10% instead of a few thousand my eyes widen and they aren't loosing much interest over the course of 30-60 til closing. Also if you have a rock solid buyer don't put a long financing contingency. A deal without contingencies within 2-3 weeks looks very nice.

Bryant, this might be basic but that is what I find is most important in this business doing the basics right.

Bryant, I think you have been reviewing some of my offers of late. I have had every one of those situations.

It is such a pleasure when I receive a clean offer that I usually write the broker a letter complimenting the agent. The letter to the seller is such a nice gesture, expressing what they like about the house and how they are looking forward to starting a family or how they plan to take care of the landscaping etc.

A clean offer with returned phone calls sets the tone for the entire transaction. Remember, houses sell houses, personalities can foul up deals.

I don't get "write the seller a letter" telling them how much I like their house and PLEASE sell it to me....PLEASE, Oh Pretty Please!

Give me a break......

Somebody doesn't keep up with current market conditions........sellers should be writing the letter saying "PLEASE buy my house instead of the 1,247 others I'm competing with!".

Jeez....

Bryant,

The letter from buyers saying how much they love the home is really good. I also like proof of funds as this was a sticky wicket for me in a recent escrow. I always learn something new from your posts.

Keep on writing,

Fran

My oh my, I step away for a few minutes and BAM 28 comments! OK so I guess I hit on a good topic. Thanks Renee!! My intent with this post was to respond to every commenter individually but noooo you guys are way to quick with the comments. BUT I can assure you that every comment is appreciated.

Anyway, the buyer letter is something I read about but have only received twice in 13 years but I have to say if I was a buyers agent I would make it standard practice. It was awesome when I did get them and in both cases it sold the deal to the sellers. In one of the cases it saved the buyer about $20,000!!! They were in a multiple offer situation but because they were first time home buyers with a couple of little children AND they wrote the letter, my sellers sold them the house. The sellers did not need the money and wanted to help this young family get started. We had another offer for $20,000 more and the sellers did not even negotiate. Hows that for a successful offer?

A couple of you mentioned the buyers agent presenting the offer in person to the seller. Personally I do not like that at all and neither do my sellers. My sellers and I are very close and normally we prefer to not meet the buyers. Send us the deal, we are more than capable of reviewing the offer and deciding how to handle it. I have had several REALTORS(R) want to present offers over the years and it was really more of an inconvenience than anything else. One was on Easter Sunday!!!

These things are ALL so simple. It still amazes me how many sloppy offers I receive. I cringe thinking I may have to do a deal with these folks. If you can't get the offer right the rest of the transaction is going to be very very difficult. But of course, I never hold the buyer responsible for their agents incompetence. As hard as that may be, I owe it to my sellers to try and negotiate the deal if it is workable.

A good rule of thumb is: Write every contract as if you had to defend it in front of a judge.

We ARE in sales. Sell me and my sellers your buyer's offer. It's not that difficult. Oh almost forgot, don't forget to read the contract!!! It sure helps if you know what's in it. Did you know that fine print on the back is part of the contract??

Stan, read my response above. A letter like that can be a tremendous tool for a buyer. It's not stating please please please sell me your house....it's stating please sell me your house at this price. Even though the market has changed, I still get multiple offers quite frequently. Not ALL buyers are as DIFFICULT as you :) OK you know I love you man. I just couldn't resist.

LOL..."Did you know that fine print on the back is part of the contract??" That was hilarious. SVVVVW.

Life and this business can be sooooo much fun.....particularly if you do it right the first....and every time! Bryant, great Writing & Presenting Contracts 101.

This is an excellent topic and will serve to help many Realtors alike! Thanks for posting it, I am going to forward this to all of my realtors!

Ah, the buyer love letter, one of the tools too many agents never use even if they've heard of it! Makes me think of a post I need to finish writing. =) Stan, take heed of your good friend, the great BB-that love letter has saved my buyers a LOT of money. Never underestimate the power of emotion. =)

May I add that I adore NC contracts that are set up as alternative 2, with non-refundable option money instead of earnest money? Talk about making sellers perk right up! They know they are protected even if the buyer goes south.

In CA writing a note along with the offer is pretty standard.. I've had my buyers doing it for years.. it is particularly effective if the buyer and seller have met.. or if you have multiple offers.. A lot of sellers love their homes and only want to sell to someone who will also love it..

BB.....I am a PITA and have the certificate to prove it! I can't find the freakin' "buyer love letter". Have I been online too long and lost my mind?

Link please

Stan, Your mind is fine. You're just looking in the wrong place. Here you go, I'll make it real easy:

It was part of the comment I posted, in THIS post:)

Leigh, love the nonrefundable option money. That would definitely perk my sellers right up!

Kaye, I had heard those letters were pretty common in CA. They really are a good idea. As Leigh mentioned "emotions" can play a big part in a RE transaction.

Ron, thanks for stopping by. I just remembered I need to update my SHARE stuff.

Jacob, forward away. Hope it helps.

Fantastic Post! As a lender is there anything you would recommend to be in the lender letter that would help?

you made me smile with this one Bryant - the first half is so basic but soooo many agents don't get it, so I'm glad you put it down. Now for the second part, a letter from the buyer saying how much they like the house? That one would not fly here in Miami, they would definitely say "NEXT". (But I agree it would be a good tool if you are working with the buyer and can convince them to do one). I'm happy with a clean offer, with a pre-approval letter and we are on top of the transaction like hawks!

Bryant, you know what I love about this post. It's simplicity.. it has power. Many may call is common sense, but that is rare these days. the power of simple, dude. :)

and there goes another post knocked out of the park!! going,.. going,... gone! BASH! (busted winshield).. run dude, run!!!

wow, kudos on the post.

I could not agree more with a COMPLETE offer and timeliness of communication. If you call me on Sunday that you are "typing it up" then why is it Tuesday and I haven't seen the offer yet?

Broker Bryant 2 things:

1) I've had buyers ask if they could write a letter, and it worked! We got the house and somebody else didn't. Sorry Stan

2) Do you think the same rules apply with commercial deals? Forclosures?

Oh crap, I sent an offer tonight without a photocopy of the check! I are an idiot!

Plus i like it when they give me a lollipop with any offers. it makes all the difference. :)

Would a banana and toast help BB?

Well, duh on me.....I was looking for a link to some letter. Oh well, it's not the first time I had a brain cramp.

Call me a horse's patute as well because if I had multiple offers and ALL terms being equal; I'm taking the money. Whether someone has kids, dogs, or horses is irrelevent. Maybe if the agents are wanting the couple w/kids to really get the house for their new family......they can donate their commissions..... :) Just kiddin'

BB....an update on my house search. I've submitted a couple of offers late today. Two different markets and both are pretty motivated sellers. I'll know something in the morning. The first that accepts my offer, makes the sale and I've reserved the right to withdraw either offer should the other seller accept FIRST. Even if both are not accepted, I've got "round two" for each to consider. I would ask for good luck wishes, but it would be better to send them to the sellers.....I'm fine; they are STRESSED. :)

Stan

Great info BB...you should write a book on this for buyer's agents. I really liked the letter from the buyers. I usually write a short letter about the buyers chemistry with the prospective home, but a letter from the buyers would definitely be better.

MAR

2007

Hello. Loved the post. I'm a big 'preparedness' junkie: I like to give the other agent everything they need to make my offer look good when I represent buyers, and to make their job as easy as possible. I present myself when possible, but in our market (heavy on vacation, 2nd home, out of area buyers - oh, and absentee sellers) very often that's just not possible. In those cases I try to present to the agent in person. Fallback is on the phone, DEFINITELY with a cover letter describing my buyers, their strengths & motivations and if at all possible, a letter from them. It's not always applicable, but I'd say it often is.

YAY! Thanks for this post Bryant! I don't know if you would be surprised or not but I do include a letter to tell the sellers HOW much they love the house and cannot wait to move in blah blah blah. Currently I write this letter and have the buyer's initial it. Should I have the BUYERS pen the letter instead, do you think that will help the sellers? I never thought about disclosing the buyer's credit score and I can see how that would be essential right now!

I always try to present my offer to the listing agent personally. So any questions or ambiguity can be worked out at that time. Also if there is any addendum needed and possible counter offer can be drawn out at that moment. And most importantly, you can tell the reaction of the listing agent from the moment of you presenting the offer to gauge how strong your offer would be. Like a good poker player...

Well written Bryant, particularly the emphasis on communication. But I am completely against the buyer's letter. As a listing agent, I agree with Rick and Ines -- "a clean offer, with a pre-approval letter and we are on top of the transaction like hawks!"

There is no place for an emotional buyer's letter when we are trying to maximize the seller's net. The offer should stand or fall on its terms, not on emotion. Presenting a letter that may weaken the seller's negotiating position borders on irresponsible. I'm all for fair and honest negotiations, and compassion if the situation calls for it. But we will not give away thousands in equity because of a 'feel-good' note.

I just got an offer on a $1.3 Million Dollar listing that was missing addendums, had a mistake or two and the scans were so bad it was impossible to read.

I made a new clean offer, had my seller sign it and sent it to the buyers agent this morning.

Ok, I have a question for Stan.... Why buy now?

As usual Broker Bryant right on the money-lol. As with any business, the paperwork is important. Having verifiable funds on record, a credit score, and clearly stated terms and conditions to a sale will help alleviate snags, miscommunications, or unqualified buyers down the road to closing. Well done Bravo!

Good morning everyone,

Mikey, Why not? If I know Stan he is presenting offers that are weighted heavily in his favor price wise. Sellers are very negotiable right now and some good purchases can be made. I bought a house last week for flipping. How against the grain is that? So I won't make $50,000 grand on it BUT I will make a quick $20,000. The sidelines are for rookies.

Randy, That is sad man. Definitely not doing his buyers a justice.

John, My suggestions were for buyers agents. As a listing broker I could care less about a "love Letter" but they do work. And if it is presented with the offer I will present it to my seller. It's not always about the money. Sellers have different needs and wants.

Gary, As a listing broker I do not like offers presented personally. If I worked for the buyer I may think different about that.

Hi Renee:) I hope this post answered your questions. I would think hand written from the buyer would ne more effective. The main thing is give the listing broker the entire offer package professionally completed and legible with all attachments, escrow etc..

Beth, sounds like you have it down. Good job.

Valerie. a book? You never know what the future will bring:)

Stan, I know it sounds like it wouldn't happen but it does. Some sellers are not that concerned about the money. And some sellers like helping people get started. You just never know. BTW did you submit a "love letter" with your offers? :) Good luck with your continuing home buying saga. Want to be a guest blogger and give us all the journey once completed?

Nick, Are you dreaming about bananas again. Hey I forgot to call you!! Damn it man. Been really really busy.

Rick!!!!!!!! Send it this morning. It's never too late.

Dena, I doubt a letter would have any affect at all on a commercial or foreclosure. Those are strictly bottom line deals.

Jennifer, I have REALTORS(R) tell me that all the time. It goes in one ear and out the other. Give me the offer then I will get excited, maybe:)

Ines, I guess in Miami the letter would go straight to the garbage can. You guys are really New Yorkers you know:) I'm scared of Miami:)

Olan, Received your e-mail, thanks. I will take a good look at your letter today.

Hey Allison, you snuck in on me. Still waiting on you to bring some buyers to Poinciana:)

Ok I am a mortgage loan officer and I actually have a problem with, "A pre-approval letter from a known Lender. Not ABC we loan money cheap."

I work for a small not well known local mortgage broker, and my pre-approval letters are detailed, and explicit. When I write one up, it means the deal will close, I have already pulled credit, I have already run an automated underwriting system, and I have most likely verified income and assets already. Our approval letter clearly states all this, it has our contact information and it states we have been in business for 15 years, and has our address to show we are local, etc. It even has our licensing information on there.

I usually get a call from the listing agent, just to check in make sure I am real, etc. And 99% of the time that is enough, they are happy after our conversation.

However, I have lost a deal only on the fact that the listing agent didn't know me. They made a verbal counter offer to MY CUSTOMER (I had worked with them for a month cleaning up credit and getting them approved, etc. and referred them to a real estate agent) their verbal counter offer was that the buyer had to do the loan through the listing agent's friend at a Countrywide office. They hid behind their sellers and told me it was their idea (total BS you know it and so do I) and they wouldn't put the counter offer in writing. I had already collected a commitment fee from my borrower and I told them if they gave me something in writing explaining the situation I would refund the money. They did and I refunded the money.

Now I am in a catch 22. Do I report this to the licensing board, do I file for restriction of trade. The general description above doesn't go into the details but there were more than a couple ways they violated not only some ethical issues, but also legal issues. But of course if I want referrals from that office, my customer, or the agent I referred them to I can't do anything with out shooting myself in the foot.

I know the listing agent was probably just a little skiddish because they had never worked with me before, but for the rest of you if you don't know the mortgage company, give them the benefit of the doubt. Call me, meet me for coffee, ask me to show you the lender's approval, the income, or anything else you want to see. I really won't mind if it is the first time we are working together, even though my preapproval letter is states all this more than clearly and practically includes a resume. I know there are a ton of "ABC we don't know what a 1003 is" loan officers and mortgage companies out there, but we are not all clueless.

Hey Brian, I'm with you man. There are many very good LO's that are with small independent companies. Hey I'm a small independent company. BUT sad to say they are far and few between in my area. If my seller has two offers to choose from and one is submitted with a preapproval from Wells Fargo and the other is someone I don't know. Wells Fargo will win out.

BB.....Naw, no "love letter". You can rest assured I don't get on many Christmas card lists when I'm done. In fact, I've had to take a step back lately and realize some tactics are counter productive to the process. It's easy to get caught up in "winning" and lose sight of the goal......getting to a win-win situation.....one of my many faults. More when I get a response.....

Mikey, I retired and am ready to begin the next chapter. I could rent, but in the places I'm considering, nothing on the market to accomodate our situation. Apartment/House Rental + Storage Facility = More than house $$. In all probability we'll be moving wife's parents in with us to care for them so that narrows our housing options.

I always go into a deal, any deal, on the upside of the exit.....so when I *do* buy, I'll be pretty much guaranteed postive cash should our family dynamics change. You don't make money when you sell, you make it on the buy....selling is the realization of the buy strategy. Make sense?

Besides, Mama wants a house.....women!?!...that nesting thing. And when Mama ain't happy, NOBODY is happy.....know what I mean? ;)

Best Wishes

Re: Brian's situation...looks like a possible RESPA violation. Am I off base?

In our small town we don't necessarily prefer large institutional over small independant lenders...but reputation and track record ARE important. We counsel use of a known local lender, but in cases where the buyer brings in a new lender we'll check them out. What curls our hair is when an out of area lender is used...causes SO many problems. Especially the internet-only lenders. Who do you go to when there's a problem? Give me a small local lender over a faceless internet lender ANY day.

Bryant, Something as a "non" agent I can relate too! Once the negotiating is over and everything is "supposedly" signed I get the contracts, addendum's, riders, buyers info etc to put together nice and neat, input into the computer with final negotiated sale amount, closing date, on and on. Ever tried to read a fax that has gone from legal to letter about 5 times, been countered on the same contract and initialed all over the place? If you can't read it when it comes in originally imagine how it looks by now. The agents I work with in a case like this will~once a final price is agreed on start a fresh clean typewritten contract, but leave ALL the originals in the file. Starting out with a clean, neat contract with all other paperwork present is the only way to go!
This is a super training tool Bryant for RE agents new and seasoned! Thank you and thank you Renee too!

Bryant... good points.

One thing I've been promoting is that if you don't have a good fax or copier... don't bother sending it that way... send it via mail or better yet UPS ...

It seems that no matter how much better technologies get, there are some professionals stuck using those $30 specials Fax Machines!! STOP IT - BE PROFESSIONAL... It is an investment we all HAVE to make..

Also when you get 2 of them together on either side of the table you get faxes sent back and forth so many times the font is now 6 ultrabold and you can't make out anything,... recommendation - get the agreement then REWRITE THE ENTIRE THING FOR FULL EXECUTION. It will make everyone's job better.

Down here in South Florida, UPS Ground costs $5 at OfficeDepot Stores (there are a thousand of them here since the HQ is in Delray Beach)... I can get that Next Day to anyone from Orlando South!! So why not use it??

don't be afraid of Miami, we are good and kind people.....I promise!

Ines... that's what they ALL say ;)

BB-"The sidelines are for rookies."

I could tell a story of a local agent who just had a NOD on his million dollar flip after almost a year on the market. Around here one mistake hurts a lot more than a mistake when the houses cost 150k.

I guess my point would be with the market nearing its most vulnerable point right at this moment (notice I didn't say low point, just most vulnerable) I can't imagine buying. It's worth it to see if the market really was based on fundamentals or on the funny money financing. Since the spigot is being closed the next 3-4 months will be extremely telling.

I guess it boils down to me not understanding Stans motivation for some of his earlier comments, too each their own I guess and best of luck with his bids.

As a mortgage professional I was very interested to see that most of your "Advanced" points are financing related. I was curious if a buyer's agent is permitted to share credit score with the listing agent? I suppose if the buyer permits it, so be it, but as a lender I wouldn't give that information to even the buyer's agent. I can share information with the client but not with anyone else, and the bank's policy is firm on that point within our privacy restrictions. With increased restrictions on privacy and information sharing I wonder what else can be done to make my buyer's agent more capable of giving you what will turn into the "winning" offer?

One issue may be the pre-approval letters you are seeing are woefully inadequate. The State of Texas requires the use of either a pre-qualification or pre-approval form. For samples see pre-qualification form or pre-approval form. I wouldn't accept a pre-qualification form if I was a listing agent as it doesn't have enough information behind the approval. You may want to provide these forms back to the mortgage loan officer you get a "pre-qualification" letter from as a standard of what your seller will accept for "pre-approval".

I can understand your desire to review offers only from capable buyers and to select from competing offers one that is most likely to close. That's why you are a great listing agent!

Great post....

Ken Stampe - Bank of America Mortgage Lending

Mikey, I actually work with several investors right now and ALL are buying. It's really not so much timing as doing your homework. And it depends on why you are buying. In Stan's case it will be for a primary resident and for a long period of time. If someone is wanting to buy, who knows they will be moving in 3 years, then I agree, rent, don't purchase. To risky.

My statement "the sideline is for rookies" was a little too cocky. But it does have some merit behind it. For a true investor, that does their homework, this is a much better time to buy than it was 2-3 years ago. I never quite understand why folks buy when it's a sellers market. They wouldn't do that in any other investment market. With the amount of foreclosures, desperate sellers, short sales and inventory on the market, right now is a great time to invest in RE. In my opinion.

Ken, I actually have a form that I can make as part of the contract that authorizes the LO to release financial info related to the buyer to me. This form is signed by the buyer. I've only used it a couple of times as most buyers have no issue with providing info if asked. But yes you must have permission from the buyer. I like the idea of a standard form.

If the buyer wants to tell you, then that's their prerogative. However, the bank simply wouldn't allow us to share this information even with a release form. One thing I do like about the way the bank does pre-approvals is that they are issued directly from the underwriter. A loan officer in our company doesn't have the authority to issue a pre-approval. This helps a lot because I tell my clients it's more than just taking the application and pulling up a credit report. If the property seller wants to see a pre-approval and not a pre-qualification then you need to get me some additional information before you go shopping for a home. This also works to speed up the loan process after the buyer enters into a contract.

"The Buyer's credit score. I will love you for this one. If they have great credit, then prove it to me. I won't even show the Sellers. But it sure does make me warm and fuzzy."

Credit score alone is no indication of their ability to buy a house. Why do RE agents believe knowing the FICO score of the buyer gives them more insight to a buyers financial ability to buy a house then a full application, and accompying docs, taken and reveiwed by a mortgage professional?

It is the equivalent of taking the value from Zillow.com as a true appraisal.

Ken, will you move to Florida?

Dennis, If I get a pre-approval from the LO I should be safe to assume they have verified employment debt ratios etc.....the credit score will tell me if they are lying to me or not. It IS NOT all inclusive but it is a very important indicator for me if they are submitting an offer with 100% financing and they have a score of 582. If this is the case, I need more info before my seller makes a decision. If someone has a score of 725, it is an excellent indicator that these folks know how to handle their finances. So knowing the FICO score gives me tremendous insight into the financial situation of the buyer. To compare it with a value from Zillow is just not even close to being the case.

Bryant - Thanks for the concise list - I'm going to compare it with our current "What our Seller is Looking for in an Offer" list and integrate/modify it into Arizona-ese.

Ken I am with you on that. I am not a huge company like BoA. But if a real estate agent calls, listing or selling. I don't care what they have in writing from who. I will give you general information pertenant to the transaction only. I tell the borrower ahead of time what information is commonly requested by a listing agent, why they are looking for that information, etc. And I tell them to watch out about providing too much information that may cause them to be discriminated against financially. I have had borrowers loose deals because the listing agent requested credit info. The bid was a little higher but they were deemed "subprime" so the other offer won. This was more than a year ago, now I would understand those concerns, but a year ago... their money is still green.

Thanks Bryant, I have done everything on your list except provide the seller with a copy of the credit report. The reason for this is that I get all my buyers approved by a quality mortgage lender before I write the offer. Since my buyers are approved there is not reason to provide this to the seller or his/her Realtor. Also, this is very private information and I would recommend receiving written permission from the buyer to present this to a seller. Great post and thanks for sharing.

Mikey,

What wasn't clear? I've always been BRUTALLY honest and upfront about my plan of action. Buy; but buy right.....

Buying a house, for me, is a lifestyle choice. I know a lot of people look at a house as an "investment", but that's not where I put my money......to make money. However, I'd be an idiot not to take advantage of the market and insure a return.

I have an old saying: In confusion, there is profit. And the housing market is pretty "confused" right now. :)

Having been on both sides of the table, I am so close on this list. However, even with all the stuff, save for the FICO and the financial statement, my clients still didn't get the house because it was a newbie listing agent this week-ARRGH! My clients had a substantial (almost 9% downpayment) and a BOA letter, too! The newbie listing agent rejected my offer by email and only after I left a message to get an update.

However, my other client just got their house, despite an 11th hour competing offer because the listing agent said she likes smart agents, making me very happy :-) They didn't even look at the other offer!!

Love letters are terrific in multiple offer situations but lose their effectiveness if they are produced by the agent instead of the family. I can tell the difference between them. They are a nice touch for touchy feelys but it's tough to get those past analytical types (or get them to write them.)

Great topic. Bet you helped a lot of folks today.

MAR

2007

Missed this post earlier but have add one more suggestion. When sending an offer to a seller's agent. Send the entire offer at once. Do not send the even pages in one fax and the odd pages in another and expect us to figure it out.

MAR

2007

BB:

Thanks for write this blog. I have book-marked it for future use.

MAR

2007

Melissa: Who the heck faxes odds and evens? Does your MLS have 2 sided purchase and sales?

Irene - Seriously - we got an offer in the other day that 2 faxes - odds and evens. When we got the first fax, we called to let the agent know that there must be a problem, we had only gotten some of the pages. Their response was that those were the odd pages and we would get the even pages in the next fax and to just put them together. We use our MLS's computer generated contracts so they are all one sided. There might be some 2 sided forms out there but you would think that the agent would make copies of the one side and put it all together in one fax. It was really strange.

MAR

2007

Your post has been included in the week in review.

MAR

2007

What a great topic! I am bookmarking this for future reference and reading.

MAR

2007

I think you have all bases covered from a listing agents point of view. I agree with all that you require from a selling agent. I might add that until you have everything you want from them, your seller will not consider accepting a contract without it. They might look at it, but won't accept it.

JUN

2007

Bryant: I am on a roll with your blogs today. You share so much information. You had mentioned once on your blog about You dont know why you get featured - and featured often. I'll tell you: You write the most informative blogs out there. I learnt so much from your writings. You are far too humble.....

Loreena, I did notice you are on a "Broker Bryant" reading frenzie. Thank you. I hope it helps give you some ideas for your business. That's why I write.

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