Hmm, I think I will have me, some more of that puddin'!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Today, I worked on pushing one of my deals towards closing. The usual stuff, make sure title work has been completed and forwarded to the lender, get the appraiser in, check on the status of the survey and order payoff info. All is going well and according to schedule. The closing is scheduled for this Tuesday the 31st and it looks like we will make our closing date. This seems like it may be a pretty boring post about a normal closing BUT here’s the kicker, this deal was negotiated yesterday!! That’s right yesterday. Now I have had some pretty fast closings in my 12 year career but 7 days! That is definitely a record for me. And to really top it off, it is a 100% financed deal of $275,600! This is what I call a pre-approved Buyer.

Angus Woodbury (moo) had posted a few weeks back, about a 5 day closing, so I guess I won’t break his record, however, if they can get this done, I am going to have one happy Seller. He bought this house, to flip, back in January and it was on the market for 8 months with another Realtor priced at $279,000. Never had a showing.

Then this Seller got real smart and decided to contact Broker Bryant off of one of my expired letters. Now being the good little Realtor that I am, I jumped out of my box, 15 days ago and suggested we “Range Price” the property from $259,000 to $279,000 with $279,000 being a full price offer. I placed it in the MLS on October 10 with $259,000 being the “list” price and since then, the Buyers have been knocking the doors down to see this house. After 10 showings we received an offer of $259,000 with Seller to pay $16,000 in Buyer’s closing costs. Well after 48 hours of shrewd and intense negotiations, headed by me of course, the deal has been accepted and signed at $275,600 with the Seller paying $10,000 in Buyer’s closing costs. To close in 7 days!! The Seller paid $220,000 in January. Unfortunately, since the house sat on the market for so long, his mortgage payments, of $1,800 a month, have eaten up his profit but I was still able to salvage his “flip that flopped” before he ended up in the losing column.

If all goes according to plan, it will be 22 days from listing to closing. The Seller will get out of a difficult financial burden, the Buyer will move into a lovely 2800 sq ft brand new home and TLW will be able to go shopping. And me, well, I will get my $20 allowance and move on to the next successful transaction.

I guess this “Range Pricing” stuff just does not work. Hmm, I think I will have me, some more of that puddin’!

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Comments (27)

"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL
Oh yes...been selling with RP for 12 years!
Oct 25, 2006 02:01 PM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL
Delicate try it. Man it's cool.
Oct 25, 2006 02:02 PM
Taiane de Gregorio
Sunvest Communities USA - Orlando, FL

That's great Bryant, I wish I could have a closing that fast. I have to start doing this range price thing.

Oct 25, 2006 02:29 PM
Ron Withers ----Retired Mortgage Professional
Kissimmee, FL

BB,

Hey that $20 will buy all three of us lunch this Friday.....I am low maintenance. Unless TLW decides on a great steakhouse.

Oct 25, 2006 03:01 PM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Congrats! I have one of my rentals up on value range pricing but nothing so far and it's been 48 days...not so good!!! Considering an auction and will learn more about that the details this weekend.

TLW may be able to up your ante by $5. I'll put in a good word for ya. She does have an image to maintain with all those surgeries, you know.

Don't spend it befor you get it!

 

Oct 25, 2006 03:11 PM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
It's such a great feeling when everything comes together. Looks like you'll have a good Thanksgiving, as well your Seller.
Oct 25, 2006 09:56 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Bryant.... that's great. I hope it all works out and closes.  As a lender though, I am just curious about one thing. You mentioned that he bought it for $220k...that you listed it for $259k and now it's being purchased for $279k. In my opinion, the underwriter might have a problem with this because they will see the seller concession and know that the house price was bumped to cover this. Espcially in a down market.

Again....please don't take this the wrong way. I want this to work for you. Just some thinking. I know you have looked at this, but I would make sure that I would have very strong comps on hand to justify the higher price. Even though the appraiser will have this in his appraisal. If you could have a few more, just to be on the safe side, I think that would be a good idea.

Now...I could be way off base also....because you mentioned "range pricing". And I am not a realtor...... the house could have a solid value of $279k and I don't know anything about the lender. It comes down to how strong the buyer is and that 100% program and if that particular lender has full control of that deal. If they are sending it to someone else for underwriting.... just my advice...definately have more comps on hand to support that value.

Again..Bryant... I love reading your blogs and I don't wish anything negative in this transaction. Just trying to give my 2 cents and maybe throw a caution out there with a back up.  I hope I didn't step the line by mentioning all of this.

Oct 26, 2006 12:59 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

again... I felt weird writing that... There were all positive comments in this and I didn't want mine to be negative. Again, from reading all of your blogs and comments.... I can tell you know what you are doing. But since I have been on the mortgage side for 14 years, I just wanted to give some thought to this.

But like I said...it comes down to the fact if I missed the true meaning behind "Range Pricing" Meaning that you had room to play with and it is a strong $279,000 price. But the appraiser has to factor in those closing costs and the underwriter, if they catch it, will look at the listing price also.

Oct 26, 2006 01:02 AM
Angus in Naperville IL
RE/MAX of Naperville - Naperville, IL

Jeff - There is a lot of precedent for the Range Pricing, Prudential California popualrized it in the 90's, many homes have been sold this way. But I can see where you are coming from, underwriters look at the list price of homes all the time, especially in this new world of blatant mortgage fraud. 

For most agents Range Pricing (like Prudentials Value Range Marketing and the weird wheel thingee) doesn't work.

It takes a strong, confident agent like Broker Bryant to make it so. Otherwise, your competition will eat you alive. It came and went in the Chicago Area...

Moo

(A fan of agents that make things work doing them their own way)

 

Oct 26, 2006 01:19 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Angus.... thanks for the input. And I will agree....even though I have never met Bryant in person.... But I will say from reading his blogs and comments, he definately is not only caring, but extremely good at what he does.  And that he thinks outside the box. Which is something that needs to be done in todays market.

Moo... thanks for the input about "Range Pricing"

Oct 26, 2006 01:59 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Jeff, At $275,600 the selling price it is still $5,0000 to $10,000 below recent sales. This s a very popular model and there are about 100 of them on the market. I have 15 sales within 3 months that are all higher than my selling price. The whole point behind the RP was to get this property out of the mix so that it got shown. It could have sat on the market with 100 houses just like it or sell it and move on. That's where me and RP come in.
Oct 26, 2006 02:15 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Bryant.... thanks. That makes sense. Again... I was not thinking....below the box... lol  Sorry, ny phone rang and I lost my thought. But overall... I know you know your job and your market. Without seeing the appraisal and comps,....or the true value, I didn't know that it was still under priced....  but I did want to bring up what underwriters look at....

Great job and good luck with it....

if KK reads this.... Pineapple

Oct 26, 2006 02:23 AM
Dave Rosenmarkle
Highland Realty, Inc - Arlington, VA
33 years of providing fully satisfying service!

Bryant

I am also impressed that they can turn all the title work around in a couple of days. Never happen in Northern VA unless it's ordered ahead of time. Congrats! 

 

Oct 26, 2006 04:37 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Dave.... Virginia is a different monster.  So is NC..... but in FL, NJ, PA, & CT, I can get title in 24 to 48 hours. I just had a rush job on Tuesday and I received full title on Wednesday.  But again, so many states are Attorney states which can make this delayed sometimes.

Bryant....keep us posted.  thanks

Oct 26, 2006 06:16 AM
Boomer Jack Boardman & Carl McIntyre, the Codgers
Noted Curmudgeons - Saint Paul, MN
BB—I don’t know much about range pricing, maybe because I’m not all that interested in Wyoming cattle country:-). Still, that $20’ll getcha a bunch of the brew at Cyber-Café!—Jay
Oct 26, 2006 10:17 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Jay, I was too busy to stop in today but will be by in the morning. I love your new blog.

Candi, call your title co. Some companies will do a preliminary title search at time of listing. 

Oct 26, 2006 11:25 AM
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751
I really love quick closings.  Intense focus, get it in, get it funded, get a referral.  Happy customers!
Nov 06, 2006 04:04 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans
Amen.... and good nite....  lol
Nov 06, 2006 04:05 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

This deal actually closed yesterday. They didn't get it done in 7 days but did do it in 13. Hit us with an appraisal review at the 11th hour.

This is the one I mentioned in my recent post where the lender would not allow the full seller contribution so I ended up getting my $1,400 back. So all in all a great deal! 25 days from listing to $7,000 paycheck! Works for me.

Nov 06, 2006 11:30 PM
Anonymous
Kathy T.
I've linked to this post on Shak & Jill... I love fast closings.  Shak & Jill is at http://www.shakandjill.com.
Sep 20, 2007 02:25 PM
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