They leave more buyers at the alter than any other lender.
Chase! Most certainly!
Bank of America! You bet.
You should know better. Your buyer is at a significant disadvantage using these lenders.
The seller will inherit the consequences of you allowing your buyer to use such lenders.
EXCEPTION! Buyer AND lender agree to disregard the fiat appraisal meaning buyer is willing and able to pay the NEGOTIATED price.
Sellers are finally pushng back. Good for them!
What I would do in this situation is get the buyer pre-approved through the listing agent's preferred lender, and as long as they are OK allow your buyer to proceed with Wells Fargo.
I believe the buyer has a right to say no if they don't like those terms.
So, yes, that is one area where sellers are allowed to discriminate!!!
Clearly the issue is important to everyone in the business.
Although a few have the good fortune of having a responsible WF organization to work with, the majority, as shared by others, find the relationship strained, depressing, exasperating and too often leaves the buyer and seller surrounded by the smoldering ruins of a poor execution.
Then, lets not overlook the 'nature' of WF and the disguised 'payday' loans they now offer called deposit advances. WF has no problem collecting 150% ..... if it quacks like a duck....
If they have had nightmare experiences with Wells Fargo in the past then I can absolutely understand them excluding that particular lender.
If there is a lot of interest in the property then your buyers will probably have to play ball and get a mortgage elsewhere.
But if the home has been sitting out there for awhile then you can of course negotiate on your buyer's behalf so they can use whomever they want.
You might have to sweeten the pot for the sellers - higher offer, late penalty for going beyond the closing date, etc. Find out what the seller's concerns are and try to build in some security.
Or you could just move on to another house. All depends how bad your buyers want this one
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
It's also legal for a listing agent to suggest whatever seems to be in the seller's best interest...and that could include a scenario like the one you mentioned in your question.
The interesting question to this situation is this.... if your buyer made a full price offer, you have presented the seller with a ready, willing, and able buyer...therefore, you may have earned a commission, unless...the terms listed on MLS indicated the sellers' terms excluding a particular lender.
I just closed a transaction with Wells Fargo on a DVA mortgage. It went as quickly and smoothly as any other transaction I've ever had. Based on that, I don't think it's a great idea to advise a seller to ignore any offer. There are certainly better ways to protect the interests of a seller via a counteroffer, than to require the buyer to get pre-approved through another lender. A large non-refundable earnest money check is one way.
But I also want to share a rebuttal to what Annette Lawrence shared below. With all due respect, Annette, I fully disagree with you. That is your opinion. But here is my experience.
The largest and best lender in the country is Wells Fargo (WF). And we have used them in a joint venture for 20-30 years, I believe. In all of my years of doing real estate, there is only one lender that consistently offers the best customer service, the shortest time frame to get loans, by far the best rates, and most importantly.....the loans closing on time. And that is WF. WE don't have BOA here, but some clients have gotten them. Chase also pulls through with about 4 stars. We have about 3000 agents, and I can truly state that I have never even heard of ONE WF loan that did not close on time.....with one exception....and that is if the buyer CAUSED the delay by not getting documentation in time. Those closing packages are out 2-3 days ahead of time, superb communication with the loan officer and processors, and they are super friendly to boot. I think it is horrible for you to make a reference to leaving a buyer at the alter. I have never seen that. In my neck of the woods, when a buyer comes in with an approval letter with a priority A status, that is liquid GOLD. There is not a possible way to come up with a better and more rock solid approval than that. As I tell the buyers and sellers, once that is obtained and the purchase agreement is signed, you could literally go into a coma and wake up the morning of the closing and it is going to close.....that day.....on time...and with no issues. I have never, EVER seen any variation from that. And I don't work for Wells nor do I bank there, nor do I use WF for loans for my buyers. I am simply stating the facts. And I am sad to see your remarks below when that is a clearly false statement. Heck, remember back a couple of years ago when things got bad? WF was the first bank to say they won't do anymore stated income loans. Everyone else laughed at them. But they were smart. 1, 2 and 3 years later guess what? WF was the ONLY bank....no one of a few....the ONLY bank still operating in the black. Every other bank in this country was either operating severely in the red or they were extinct. Not WF.