Michel, Home Buyer in Riverside, CA

For REOs or short sales, does asking for seller concessions (Ameridream) make your offer look bad

Asked by Michel, Riverside, CA Sat Jun 28, 2008

I am considering making an offer on a house - I don't *need* the concessions but it frees up more money on my end - so the choice is do i offer without concessions for 400k or with concessions for 412k (or does it matter to the bank since the net is the same). My realtor advised against asking for the 3% up front but I think so long as the net is the same to the bank, it shouldn't matter.

Does anyone have any input or advice on this situation?

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Michael:

There is no hard and fast rule on this, nor is the answer lender specific. The answer usually lies in the following:
1. How long has the property been on the market and how many offers have been received.
2. How well your Realtor packages your offer. (I use an executive summary type letter on all my offers and have been told by REO agents, who are extremely busy, that they remember and prefer my offers because of this technique.)
3. How good a relationship your Realtor can build with the listing Realtor. (If you Realtor has the reputation for doing clean, fast, 'no brain damage' deals, and the listing agent knows this, you offer may get better representation to the owner/bank. I actually have a couple of REO agents calling me with their listings before they go on the MLS hoping I have a buyer waiting for a property in that area. Listing agents know that my buyers are pre-approved and that I move deals forward quickly.)
4. How well the package / offer is received by the lender. (I have closed deals with seller concessions simply because I made them look attractive and the listing agent was willing to send my entire package to the bank.)

My one caution is that many listing agents and banks don't want to spend the extra few minutes to forward a complete, well documented package. They just upload the offers with no comments and the bank is left to look for the "highest and best" or "cleanest" offer on their own. If you love the home and really want this one particular property then make your best and highest offer, make no requests for concessions/repairs/special treatment, and offer a quick closing.

Best of luck in finding your perfect home and negotiating a great deal and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty

PS AmeriDream is a great program. If you are not attached to this home, keep looking and make sure that your team includes both a Realtor and a Lender who are AmeriDream certified and who know how to explain the ease of this program to the listing agent and property owner.
1 vote Thank Flag Link Sat Jun 28, 2008
Each bank and lost mitigater works differently. If the bottom line is the same it shouldn’t make any difference. Some banks will take concessions (usually not on reoccurring cost). Some like to see the higher dollar amount, others don’t, have your realtor talk to the listing agent and ask how that particular bank works. There is no rule each one is different. They do want fast, easy and fully qualified buyers. So what is most important is that you loan be in place. Then be prepared to possibly hurry up and wait.

Good Luck, make decissions with information.
Diana Margala 909-945-5763
1 vote Thank Flag Link Sat Jun 28, 2008
Michael,
You should be able to ask for seller concessions now especially since it is a buyer's market. However, you need to ask yourself, how much you really like the house or really want the house as well. There could be a better offer coming in and you could lose out.

I always tell my clients my opinion and then they need to take it from there because if for some reason they do not end up getting the house, then, I do not want them mad at me. They are fully capable of making their own decisions once advised. After all, it is their money!

I would do what you feel you should, but always remember, the more you ask for, someone else could be asking for less and outbid you on a property. So, it all depends once again on how badly you want this house!

Kind regards,

Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
951-204-1864
0 votes Thank Flag Link Sat Jun 28, 2008
Banks like clean cut deals that close.

Here`s my offer. No low balls
Here`s my earnest money. 5K maybe 10K
This is when I will close. 2-4 weeks

I have just recently lost an offer that was 19K more than a cash offer with a 10 day close.
The loss mitigator may just not want to deal with the paperwork.

Listen to our Realtor,
Good luck
0 votes Thank Flag Link Sat Jun 28, 2008
Mr.P, Other/Just Looking in Arizona
MVP'08
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