Special offer

Seriously? You Want Me To Do What?

By
Mortgage and Lending with UCM

I had the most awe-inspiring experience with a local Realtor recently...and not awe-inspiring in a good way. I had a buyer, represented by a very close Realtor friend of mine, who put in an offer on a condo for sale by an owner/agent...who just happened to be the mananging broker of his office and a 3rd generation Realtor. My client submitted my pre-approval letter with her offer. My letter was contingent on:

1. No change in her employment prior to closing

2. Clear title to the property

3. An acceptable appraisal on the property

Now, these are pretty standard conditions and should not have been an issue. But I got a call from the listing agent/owner asking me to remove all of the conditions before he would ratify the offer. What???!!! In shock and trying to recover before I called him a lot of unpleasant names, I addressed the appraisal first. Did he have a cash buyer? No. Then how did he expect me to get around the appraisal condition? He didn't care, but he didn't want the loan contingent upon an appraisal. Hmmm? (What I didn't know is that he had left this same message for my Realtor about the contract...wanted the appraisal and title contingencies removed from the offer as well). And what exactly was the problem with the contingency requiring clear title? Nothing specific, he just didn't want it as a condition of the loan. And the employment...was he aware that underwriters for A-paper loans typically do a telephone verification of employment just prior to issuing a clear to close? Yes, but he wanted it off the letter.

Well, what was I to do? Tell him to go get bent? That's what I wanted to do, but I calmly explained to him that these conditions were not negotiable and that, unless he had a cash buyer with no contingencies waiting in the wings, he would be well advised to let these requests go and evaluate the offer carefully (it was a good offer). The offer got ratified, the title and appraisal were fine, my buyer kept her job and we all closed happily.

I just can't understand what would possess an agent to request such things. Was he just trying to test me? Was he just trying to freak us out? What was the point? He's been in this business all his life, as were his dad and grandfather...surely he had to know that what he was asking for was not only ridiculous but impossible, right?

Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing
Or was he directed by his Seller to ask?  A possibility.  I suspect the real estate agent knew it wouldn't fly.
Apr 15, 2007 01:37 PM
Beth Bastian
Rosemont Financial Inc - Simi Valley, CA
Simi Valley Real Estate
Get bent...lol..wow ...you were right to think he was crazy.  If the client had requested these things from the agent, the agent should have said so.  
Apr 15, 2007 02:01 PM
Justin Kaatz
ASAP Mortgage - Madison, WI
CMP
That is absolutely ridiculous! Sometimes I wonder why there are loan officers...the Realtor usually knows it all! ;)
Apr 15, 2007 02:25 PM
Ian Fregin
UCM - Virginia Beach, VA
No, no...the agent WAS the seller...that's what takes the cake! He was speaking for himself!
Apr 15, 2007 02:59 PM
Dave Cheatham
INC Financial - Bartlett, IL

Sometimes you just need to wonder what some people are thinking.  I know in IL many pre-approvals are not liked.  I need to put many things in it and when sellers see them they freak when it is not explained.

Still I am glad you stuck by your guns.

Apr 15, 2007 03:11 PM
Tina Maraj
RE/MAX One - Fullerton, CA
Celebrating 30 Years of Real Estate Sales
Very strange and controlling conditions. Thanks for sharing that weirdness!
Apr 15, 2007 03:14 PM
Patrick Brady
The Danberry Co., Realtors - Sylvania, OH
Very interesting.  Maybe he was just trying to play a little power kick to see what would happen if he asked. 
Apr 15, 2007 03:42 PM
Dax Dickson
Your Trusted Finance - Saint Paul, MN
Your Trusted Finance

Sounds like he doesn't understand finance.  My team does commercial & residential finance.  We actually here the same thing from agents.  Those conditions are on every letter I send out for buyers.  So many things can change between sending a buyer out with a letter and when they close.

If ever you have any questions send me a message.

 

Apr 15, 2007 04:30 PM
Jacob Morales - Arizona Mortgage Planner
US Bank - Scottsdale, AZ
I seen to have problems like this all the time these days. You did the right thing, hopefully you won't have to see too much more of this.
Apr 15, 2007 05:23 PM
Ian Fregin
UCM - Virginia Beach, VA
I just have trouble believing that a VERY seasoned agent (managing broker of his office, principlal broker of his firm, his grandfather founded this firm!!) would have that little of an understanding of finance, you know? In hindsight, I think he might have been trying to push my buyer to use his in-house lender so he wanted to ruffle my feathers and make the buyer think my letter was too restrictive. Anyway, thought you guys might get a kick out of it :)
Apr 16, 2007 04:43 AM