During the first week of November, I received a call from a lender with whom I had been trying to do a short sale on a property in Gwinnett County, GA. I shared certain interesting facts with the lender about the subdivision.
1. The subdivision, as originally planned, would have 45 houses. Only 24 had been completed.
2. The last 3 builders in that subdivision filed for bankruptcy.
3. Three brand new houses were for sale as foreclosures between 50,000 and 70,000 lower than their original price because the builder gave up and they still have not sold.
I had given them an offer from a buyer who was willing and able to purchase the property. But this lender called me and told me that he wanted to counter the buyer's offer with a full price counter - much higher than any of the foreclosures already available in that same neighborhood. I reminded them that I had already sent the information I shared with you above, and told them that the counter would not be accepted - the deal was not going to happen.
The person from the bank told me that they were doing this counter in order to raise the offer to the highest possible. I reminded them that I am a Short Sale Specialist with almost three years of short sales under my belt, and this was the best and highest offer they would ever possibly get in this current market.
In the end, the person told me that was their strategy, and to just tell him what the buyer decided. Just as I predicted to the lender, the buyer terminated the contract and went and bought one of the foreclosed new construction properties in the same subdivision for $100,000 less than the lender had countered.
Lenders: Just how much more do you need to lose in order to recognize a good offer when you get one? Take it, and don't let that motivated, willing, and able buyer walk away.
This house is still on the market, and I hope that if I get another offer, the lender will have more sense, be more realistic, and stop throwing away money.
Do you have other horror stories of lenders, buyers, or sellers that needed a reality check? Leave a comment here and tell us the story.
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