Home Buying in Brooksville>Question Details

Brittanychey…, Home Buyer in Hudson, FL

Is our offer unreasonable?

Asked by Brittanycheyann, Hudson, FL Tue Apr 23, 2013

We put an offer in on a house on Friday morning. They had two days to respond which would be by this morning 10am but we haven't heard anything. We are using VA financing and the house was priced at 89,999. We offered 96,000 but asked that they cover all closing costs with 500 in earnest money. We figured that closing costs probably wouldn't total 6% and that the seller would actually walk away with more than their asking price. The home is a short sale. It is in our preferred neighborhood on our preferred street and we don't want to lose it. Is there anything more we can do to make it clear that we want this house? We considered writing a letter to the seller just telling them about ourselves (my husband is a disabled veteran, I am a stay at home mom, and we have two kids 1 and 3 years old). Any help would be appreciated.

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Answers

15
Are you out of your cotton-picking mind?
Who told you that Banks will answer in 2 days on a Shortsale?
2 to 6 months is more like it!

ps. The banks do have a soul; they don't care if you are a veteran.
pss. So you offered $6,000 EXTRA, (less closing costs [which can exceed 6% on that house]; what is the house WORTH? That's what the Bank cares about.
ppss. Thanks for serving.
1 vote Thank Flag Link Tue Apr 23, 2013
I would certainly agree that copying everyone wasn't the best way to inform all of you that your offers had not been accepted.

Certainly a separate email (I am old fahsioned - I pick up the phone and actually call people!!) would have been more appropriate.

Best wishes in the future!
0 votes Thank Flag Link Mon Apr 29, 2013
Sorry you didn't get the house: you were climbing a sand hill from the start:
Trying to buy a Shortsale, with a VA loan and multiple offers is doomed to fail.
The Bank will normally refuse to look at the VA offers because they will make less NET on the deal.
And when they can demand CASH offers; so much the better for them.
There is no emotion, no espirit-de-corpse for Veterans by the Banks; it is all about $$.
It is amazing that you got an answer that quickly; Usually, the Banks will take their time, choose only the top offers and ask for thier "best and final" and ignore the rest.
Your Agent did nothing wrong or enethical; if 4 buyers wanted to make an offer, what was she going to do; refuse to take them?
It sounds like she did act very professional, everything considered.
0 votes Thank Flag Link Mon Apr 29, 2013
Ron obviously you did not read the prior responses. The sellers had two days to respond not the bank. We also have not been ignored we got a response stating they have decided to accept only cash offers and feel free to submit a cash offer obviously we are unable to do that so we did in fact not get the house.

Debra I know that by law our realtor was not in the wrong but her way of notifying us was not appropriate. She sent an email to us and the other buyers who also submitted offers through her cc'd in. She could have copied and pasted her response into 4 different emails. This probably is also not illegal but we do not agree with her ethics in this case and hope to find someone more professional.
0 votes Thank Flag Link Mon Apr 29, 2013
Making an offer on a SHORTSALE and expecting an answer in TWO DAYS is a little like the mouse running up the leg of the elephant.

You haven't been rejected; you have been ignored.

Oh, and thanks for serving; I hope you will get a house.
0 votes Thank Flag Link Mon Apr 29, 2013
First of all, when you say "they" had 2 days in which to respond, I assume you meant the sellers..............the seller usually will sign pretty much anything, within reason, they get - in this case they got full asking, or better, so of course they signed it.

That's only the beginning of the very arduous process of buying a short sale.

So - don't think signing, or accepting the contract means it is a "done deal"............the bank will now sit on this offer until they get aorund to having an appraisal done...........and whatever else it is they do which usually, imo, makes no sense anyway..........this part of the prcess can, and usually will, take MONTHS, not days!

The bank may come back with a counter offer way down the road..........the counter may or may not make sense......banks don't have to explain what they do or why.

So.........why not put your effort into buying a home from a seller who doesn't need to short sell the house............you will have a much smoother road to home ownership.

And........your agent did nothing wrong by submitting other offers.........I am sure the sellers and their agent were waiting to get all the offers in front of them before making a decision...."taking until the next morning" to submit your offer didn't cause your to lose the house.

Your terms or price did - someone outbid you, plain and simple.

You can't expect your agent to refuse an offer from another client just because a different client also has interest.

Better luck next time.
0 votes Thank Flag Link Mon Apr 29, 2013
Thanks everyone so much! Just an update we did not get the house but found out that our realtor put in 4 offers from 4 different buyers. This is infuriating because we saw it the day it was listed and put our offer in the next morning. It would have been that night but our realtor kept messing up our offer and it took until the next morning to get it fixed. Needless to say we are no longer using her.
0 votes Thank Flag Link Mon Apr 29, 2013
Short sales are unpredictable. actually 2 days to respond to a short sale is not practical. I pulled the plug on an offer that took 81/2 months.

Tom and ron are both right. Some banks respond quicker than others
0 votes Thank Flag Link Tue Apr 23, 2013
Thanks everyone for your responses. Tom we were hoping to hear from the seller, as you assumed, we understand that the bank will take longer but expected a response from the seller's agent letting us know if it was accepted and being forwarded to the bank for their acceptance. The seller's realtor is not currently returning our realtor's calls so hopefully we will hear something in the next few days.
0 votes Thank Flag Link Tue Apr 23, 2013
Who is "they" in this example? If it is the sellers it is not unreasonable to expect a response by now. Your offer seems fair based on price. If "they" is the bank who is making a decision to grant a short sale then you are looking at a minimum of 90 days to respond. All banks are different, some are much quicker than others. If you are talking about the sellers responding just have your agent follow up with the listing agent.

Good luck,
Tom
0 votes Thank Flag Link Tue Apr 23, 2013
No, your offer doesn't sound unreasonable.
I would think that your offer made it clear that you want the house.
0 votes Thank Flag Link Tue Apr 23, 2013
Thank you Edyta. I will email our agent and ask her to find out for us.
0 votes Thank Flag Link Tue Apr 23, 2013
Tony gave you good advice. You should try to find out if another offer was presented to the seller. As I find your offer reasonable, please note that VA financing is not in a favor of a buyer. Sellers prefer cash, conventional loan etc.
Good luck!
0 votes Thank Flag Link Tue Apr 23, 2013
Thank you Antonio for your quick response. We were told that this price is lender approved and our financing is already approved for this amount. The listing agent says that the house is ready to close by the 17th of next month. The paperwork has already been done but the last buyer backed out a month before the closing date.
We were told that with VA financing that the buyer cannot walk away with cash from closing so whatever was left over legally cannot come back to us but must go to the seller or their bank. If this info is correct then one or both parties do have a chance of making more that listing.
0 votes Thank Flag Link Tue Apr 23, 2013
Brit:

Please keep in mind I don't know what the market is like in Hudson, so this are general points.

With asking 6% in closing cost, they will actually keep $240 above asking price, so them "walking away with more than asking price" is not a real consideration here. It will be viewed as an offer at asking price by them.

Also, will the home appraise at 96,000 or lower? Remember that as a Short-Sale the owner/resident doe not set the final price, that gets done by the lender/mortgage holder...so if the seller accepts your offer it does not mean the lender will. You will require 2 acceptances to actually have a contract. Frequently the lender comes back asking for more than the seller advertised for.

What if they received another offer at 90,000 in cash, with 3000 in escrow? They will without doubt take it because once the short-sale period is over they know it can close fast. On your offer, once the short-sale period is over then they have to wait extra for the VA loan to process.

Unless they are people who you know from the neighborhood, church or school... an emotional letter could backfire by turning some people off. This is business, and you must make it good business proposition for the seller to want to work with you.

Realize some things will be out of your control (like which offer seller chooses), and that this is a financial transaction (not an emotional one) and follow the advise of your Realtor who should guide you in to the best possible outcome (if they are experienced). Good Luck. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Antonelli Realty
0 votes Thank Flag Link Tue Apr 23, 2013
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