Some stuff I just don't understand

By
Industry Observer

There are certain conformities in any business, and real estate is no exception -- almost.  When a seller wants to sell a home and enlists the employment of a real estate broker or agent, there are business formalities that are always followed.  There is a written representation agreement between seller and broker for the broker to market and sell the property.  Likewise, there is a written agreement between buyer and representing broker in all but the most primitive of areas.

When the buyer wants to make an offer, the appropriate forms are completed and signed, and they are sent to the broker representing the seller, or if physically possible, the offer is presented directly to the seller by the buyer's broker or agent.  The seller either accepts or rejects the offer.  If the offer is rejected, the seller may make a counter offer which puts the two and a half options in the buyer's court.

Counter offers are sometimes more in the form of discussion, with proposed terms and numbers passed between the principals through their agents.  Sometimes each proposed change is accomplished more formally by documenting each in writing.  I am comfortable with either way of negotiating a final agreement, and it is usually agreed by both parties just which style is chosen.

Then there's the banks.  They may be too big to fail, but feel free to fill in the blank space, too big of a what???   There is no logical explanation for the procedure established by someone whose native tongue is .XLS that the bank only counters verbally but will not accept a verbal counter to their verbal counter.  When asked to put their counter offer in writing, the answer is, no.  It is simply not done. 

 

Posted by

 Mike Carlier  Lakeville, MN

 

612-916-3033

 

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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Mike - Yet another installment in the annals of stupid and self-defeating bank practices. None of us will ever understand, because we're trying to apply reason and intellect to a situation that defies both. It's really hard for us to wrap our heads around a concept like "really just don't care", but there it is.

Nov 21, 2011 11:57 AM #1
Rainmaker
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Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

I'm willing to accept too big to fail, but not too big to function.  One mystery is why the giants made the decisions to take over failing companies like Countrywide or WAMU.  They had to see the mess they already had made for themselves, so why add to the difficulty?  I guess they were the kid in the candy store, and they knew they were diabetic -- they just didn't care.

Nov 22, 2011 01:55 AM #2
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Rainmaker
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Mike Carlier

More opinions than you want to hear about.
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