Home Buying in 53202>Question Details

Aaron Dexter, Home Buyer in Milwaukee, WI

Fannie Mae Just Rejected My List Price "Cash Offer" for Property?!?!

Asked by Aaron Dexter, Milwaukee, WI Thu May 30, 2013

I am seeking advice/guidance from anyone that had a experienced a similar situation. Earlier this week, I submitted a "cash offer" at full list price for a Fannie Mae property available in their "First Look" program. The property was to my first home purchase and I was to become the owner/occupant. A few moments ago I received a call from my realtor telling my offer was rejected!?!? The realtor had informed that there was no reason provided why the offer was rejected and there was no way for him to get that information. They did NOT even provide a chance to submit a counter offer (which you figure would be in their advantage).

I am super upset right now....After months of doing home research, I finally found exactly what I needed/wanted and thought I did everything right:

- Submitted Offer Within First Look Program Deadline
- Submitted a "Cash Offer" at Full List Price with Bank Letter
- Owner/Occupant

Asides from offering more than the list price, what did I do wrong?

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Answers

2
They likely either accepted a higher offer/offer with better terms, or you were a little too late. It is not uncommon for these properties to sell well over list price, depending on the market and what they are initially priced at when listed. Typically, in a multiple offer situation, they would ask all parties involved for their "highest & best" offer. There is usually a rider that you fill out explaining the "in the event of multiple offers" situation.

That said, it's possible that an offer was already accepted by the seller before you got your offer in. Once Fannie Mae accepts an offer I have found through my own experience it is "generally" solid and no other offers are considered - even if one comes in after the fact that happens to be "better". Listing agents don't always update the MLS immediately, so it's possible a property your agent saw to be active was already under contract for all intents and purposes.

Without knowing the exact details or being a party to the transaction - it's hard to tell with any certainty exactly what happened here. I can't speak to the WI market, but in the Chicago area - good properties that are well priced by Fannie Mae go extremely quickly, sometimes in the first couple days. With the financing terms they offer through Homepath with no PMI and low down payments - these properties are becoming more and more sought after to first time buyers (especially with the recent increases in PMI for most FHA loan products).

Hope that helps!
2 votes Thank Flag Link Thu May 30, 2013
Terry:

Thank you for taking the time to post my reply and providing your insight.

Since the time I had submitted this post, I have found out that (7) different offers were submitted, many of which were allegedly over list price.

I posted this immediately after I found out that the offer was rejected, so naturally I was upset/frustrated.

The good news is that I am over it/chalking it up to a learning experience (this was the first offer I had ever submitted to buy a home) and I am trying to take solace do to the number of offers submitted that I can spot a good a deal when I see it :).

Once again thank you for your insight.

Take care and stay safe!
Flag Thu May 30, 2013
I'm in the Milwaukee area and I would say the same thing that Terry did.
0 votes Thank Flag Link Thu May 30, 2013
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