Open House Ordering From McD's

By
Real Estate Agent with 1
Here is a summary of how my weekend went.

While I was doing an open house on Sunday a woman walk into the home, alone.  She walked through the house fast and quite abruptly.  When she left, I don't even think I got an acknowledgment - it was kind of like I pissed her off because I took her out of her car dragged her into the home and made her look at the home.   When she showed up again with 7 people in tow, I have to say, I was quite surprised.  I thought they were either here to beat me for dragging her into the home and forcing her to look or they were here to check it out and maybe make an offer. 

Well I was right - (thankfully on the offer). 

What was odd was how they presented the offer to me.  I almost felt like I was working a drive through McDonald's window.  They barked their offer, added some fries, tossed in an apple pie... - no not really - they just made it seem so .. I don't know - umm, matter of fact.  There was no emotion, no happiness, no excitement - nothing.  I actually was not sure if they even liked the home, that's how stone like they were. 

Anyhow, I was thrilled to get an offer.  It was something and it was a starting point and I know the seller is at a stand still with his plans until he sells this home, to be honest, I know he is willing to work any buyer who makes a solid offer.  But, they did not cut it.  You see - it was not just about the money, the reply no went much deeper. 

There were CONTINGENCY'S - and ALOT of them.

Sellers have been spoiled a few years (months) ago most offers did not have any strings attached, homes sold without a hitch.  Now? Not so much.  I have always viewed a contingency as almost as a skin problem - they tend to just spread.  If one contingency gets through another will pop up and another and so forth and so on.  So nixing contingency's early is something that I tend to do. 

The contingency's that these "buyers" were: 

  • Mortgage - (OK, that is normal).
  • Upgrading to Viking appliances. (No joke, $20,000 right off the bat).
  • Closing Mid September. (Not too bad, could be workable)
  • 10 year warranty on home (Its a new construction home, but 10 years?   Riiighht).
  • They need to sell their home first (they can go into contract soon, but with only $7,000).  - To me this is a red flag!  The buyers are looking at a 1.2 Million dollar home, but only have $7,000 to put down, am I painting good enough picture for you?
  • Closing Credit - Here is where I think they lost me, the seller and their minds.  They would come to almost full price on the home - IF the seller agreed to "GIFT' them back $75,000. 

.....Picking myself off the floor. 

Is that even legal? 

So - welcome back world of contingencies!  I so did not miss you!

close

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Location:
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Tags:
house for sale
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open house
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Rainmaker
104,923
Debbie Baldes
Executive Properties - Citrus Heights, CA
ABR, SFR, CDPE, e-PRO, CHS

You need to go look at Broker Bryants AR site http://activerain.com/tutas.

He has videos under his picture. The 2nd and the 3rd one are his response to an agent on an offer and the 3rd is his counter to that offer.  This is the advice that I'd give to your offer. 

Take a look it will at least give you a good laugh.

Jun 25, 2007 02:47 AM #1
Ambassador
1,894,119
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
No it isn't legal to give back money under the table.  I had someone make an offer on a listing.  They offered 50K over the list price, offered a $500 earnest money deposit and wanted 75K back after closing.  Let's see.  The last sale was at our list price so to get it to appraise for 50K more would mean an over inflated appraisal, which means a loan higher than value and then money back!  We knew that this was an illegal deal from the get go and told them to take a hike.  Does anyone wonder why we have some of the foreclosure mess that we are headed towards.  How many of these deals were actually done and now the buyers are in trouble?
Jun 25, 2007 02:49 AM #2
Rainer
51,935
Christina Ethridge
The North Idaho Dream Team powered by SKE Realty Group - Coeur d'Alene, ID
While I think Bryant is an awesome agent - I disagree strongly with flat out rejection of an offer.  If you get a bad offer, advise your clients to counter, not reject.   We have sales that end up working out even though the initial offer was a joke.  What surprises me about BB's rejections is his statement of what the market is like in his area.  It would seem that countering would be more advisable.  But, his method works for him :D
Jun 25, 2007 02:52 AM #3
Rainer
60,660
Dan Homan
Coldwell Banker Ellison Realty, Inc - Ocala, FL
I would watch any cash back at close deal.  Issue one would be mortgage fraud, hey, the fact is there are loads of desperate agents out there who would do anything for a deal except work for it.  The second issue is tax fraud declaring the wrong value of a home in some states (I don't know about NY) is a felony, it influences the assessment of other homes, distorts the comps, etc..  Mortgage fraud is a bigger concern for me.  Here is a thought - ask them to list their home with you now, see how serious they are.  If the home is already listed, ask for permission to call the other agent.  Ask, no grill the other agent on market conditions and chances of selling.  Better to have a third party to blame it on if he contract goes south, and to leave yourself a chance to be the hero.
Jun 25, 2007 02:56 AM #4
Rainmaker
1,480,924
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Red flag... Louann Nudi asked about it a couple of months ago in Florida, great comments on her entry.  Louann's entry, hope the link is OK and continues the conversation here on your blog. If you don't like the link let me know.

 I've written about $ back at close a couple of times in our market. There have been indictments here. 

I was such a spazz on an offer about a month or so ago, I called my manager and asked if we could put a "WE aren't doing no stinking mortgage fraud" clause in the counter offer.  He thought it might be offensive to the buyer and buyers agent.

Jun 25, 2007 03:24 AM #5
Rainmaker
334,644
Jeff R. Geoghan
Coldwell Banker Residential Brokerage - Lancaster, PA
REALTOR, Marketing Manager
Sounds like a money laundering scam - have you been overdoing it on the Sopranos?  
Jun 25, 2007 03:52 AM #6
Rainmaker
672,218
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate
In most cases, I don't recommend flat out rejecting an offer, but that might be the best solution all around.  With their list of desired contingencies, I really don't see a compromise in sight.  I could be wrong and they could be just testing the waters, but I think you're wasting your time on this one.
Jun 25, 2007 03:59 AM #7
Ambassador
1,511,547
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I love your last sentence!!!  I don't know how workable this contract is with your client but I would definitely send a tongue in cheek counter back.  No gifting of money, the mortgage underwriter must completely accept it, a list contract for home contingency plus full CMA: must be listed 10% under market value and have a 10% price reduction every two weeks.  I would leave everything else as is because your home contingency clause in the counter would be hard enough to swallow.

Ten minutes out of your day for all that fun :) 

Jun 25, 2007 04:12 AM #8
Rainmaker
147,221
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
I would definitely consider this one a red flag offer.. as with the comments noted above that kind of cash back is mortgage fraud.. but more importantly on a home in that price range they should have a lot better financial backing then they appear to have.. even if the are legit they may be trying to purchase more house then they are qualified for..
Jun 25, 2007 04:40 AM #9
Rainer
52,247
Christine Forgione
1 - Whitestone, NY
Associate Broker

Debbie Baldes - Thank you for pointing out BB Reply to this kind of offer.  The video is what cracked me up!

Cindy Jones - I do agree Cindy. One thing that I did not mention was the offering was 1.2 Million, the buyers have 7,000 to put down, AND they want 75K back at closing, plus 20,000 in appliances.  I have to say that my SELLER is the one who will be doing more out of pocket than the buyer.  Seems a bit lopsided and slimy if you ask me.

Christina Ethridge - I do agree that sometimes the intial offers seem like a joke but could wind up working out - but going with my gut on this one - I don't think so!

 

Jun 25, 2007 04:49 AM #10
Rainer
52,247
Christine Forgione
1 - Whitestone, NY
Associate Broker

Dan Homan - Mortgage fraud is what I would have thought. 

Maureen McCabe - a disclaimer would not be a bad idea.  LOL. 

Jeff Geoghan - ME?  Too much on the Sopranos.   NOoooo - I wasn't making the offer that they could not refuse. LOL

Jim & Maria Hart - AGREED!!

Renee Burrows - No - I am not sure that this is an actual offer that I can piece meal together. 

Kaye Thomas - Champagne taste on beer pockets. 

Jun 25, 2007 04:57 AM #11
Rainmaker
1,142,632
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Christine, Don't you love those kind of offers? I get them all the time.

OK just to clarify. My sellers counter all offers(if they are legal). My videos were humor and showing what I would prefer to do. How could ya'll not get that? Don't you read my posts? Do you really think we blow offers up with a shotgun? Well maybe sometimes:)

Jun 25, 2007 09:53 AM #12
Rainer
37,621
Robin Willis
Tucson Expert Agents LLC - Tucson, AZ
CDPE, SRES, Designated Broker
Very strange day.  Definitely trying to pull loan fraud or something similar with that cash back contingency.
Jun 26, 2007 07:47 AM #13
Rainer
41,109
Dominick Gaccino
Dominick gaccino - Peekskill, NY

YOU CAN MAKE CONTRACT ON ANY CONTIGENCIES BUT I MEAN BE REAL...10 YEAR WARRENTY....UM NO

 

VIKING? OK pp JUST WENT UP

 

AND THE CLOSING CREDIT JUST WOULD BE ALLOWED BY THE LENDER..........SELLERS CONC TOWARDS CLOSING COST YES......CREDIT.....NO

 

NEXT...............

Jun 26, 2007 08:01 AM #14
Rainer
52,247
Christine Forgione
1 - Whitestone, NY
Associate Broker

Bryant Tutas - LOL Bryant.  You actually don't blow up fake and ludacris offers?  Now.. I am disappointed! 

Robin Willis - Yea - it would cost the buyers less money to buy the home than it would for my sellers to sell it to them.  Go figure!

Dominick Gaccino - Yup - NEXT!

Jun 26, 2007 08:45 AM #15
Rainer
42,658
Joe Peffer
Delicious Real Estate - Columbus, OH
Columbus Homes Blog
That sounds really odd and possibly fraudulous.  Was the lady who came in first and left in a huff the Realtor?  It really is amazing the things some buyers ask for.
Jun 26, 2007 08:52 AM #16
Rainmaker
49,810
Chrissy Harrison
Referral Only Realty - Longmont, CO

Great post and interesting read on the responses. Can you say "Loan Fraud"???

Thanks for a great discussion point.

Jun 26, 2007 03:32 PM #17
Rainer
41,109
Dominick Gaccino
Dominick gaccino - Peekskill, NY
just an FYI i meant to type closing credit would NOT be allowed by the lender
Jun 28, 2007 03:03 AM #18
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Christine Forgione

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