Home Buying in Carson>Question Details

Sassy, Home Buyer in Torrance, CA

what can we do to get our offer accepted?

Asked by Sassy, Torrance, CA Mon Mar 8, 2010

im FHA appproved by BofA buyer, we are hunting houses for more than 3mo in carson,ca area. we submitted too many offers already but our offer gets rejected all the time. there are few offers that we are the highest but still we got rejected. our fico scores are more than average. we put 3.5% down & we ask for 3% closing. im so frustrated already. i have a sister she will start escrow already after a week of hunting. it makes me angry thinking about it. im starting to think that my realtor is not doing her job. we r first time home buyer, what else can we do help.....

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Lose the contingencies if possible, increase deposit and maybe a personal letter from you staring why you want to buy property, be honest, write it from your heart. Plus as others here have said variables like FHA property approval can be a factor
1 vote Thank Flag Link Wed Mar 24, 2010
Higher offer. Lose the closing cost contingency.

Or just wait a month and a half. I expect once the free $8k goes away that less people will be trying to buy houses. If I am correct the odds of you buying a house will be greatly increased..
1 vote Thank Flag Link Sun Mar 21, 2010
Hi there, It is very possible that your offers were beat out by offers that were viewed as stronger with a higher down payment and lack of seller concession to cover closing costs. The seller concession that you are building in will stress the bank appraisal. While the seller will get the net, the property must appraise for the total purchase price which will be inflated by the amount of the concession. In evaluating your offers, the sellers must consider whether the financing approval could be at risk by the possibility of under appraisal. It is a very real consideration. An offer with more cash in the deal, one that doesn't require seller concessions, and certainly an all cash deal is stronger. I know that it is frustrating for you, and with little money to put down, this may be the only way you can buy a home but you need to understand that sellers will evaluate offers based on their relative strengths.

Good luck - hang in there, I'm sure you'll succeed.

Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sun Mar 21, 2010
Hi Sassy! I truly mean this when I say get rid of B of A! I know 6 lenders whose buyer's loans got declined in the past 5 days, all with B of A, and now ALL these lenders are going elsewhere. I have tons of buyers who have come to me recently with pre approval letters from B of A and once they spoke to my lender, who is the CEO of a mortgage brokerage company and also a VP of a direct lending company.. the price they could go shopping for jumped up almost $100,000! B of A seems to not WANT to do home loans right now, they are being SO conservative that they are giving pre approvals at $100,000 or more BELOW what that buyer can go shopping for, which puts you in an entirely different community for a home.
My lender can get you pre approved for a higher price range, guaranteed...this is one way that will help you, so that you may NOT have to be in the price range where there are TOO many buyers going shopping. I have tons of buyers in the Carson area..references on file...and we have NEVER been shopping for months, not getting our offers accepted. I can tell you what items I need from you to put a proper offer together and how it needs to get packaged and successfully submitted to the sellers, to make them want to deal with us and get you an accepted offer. Just like your sister, once you're pre approved and I have your items I need, within 2 shopping trips, we will submit offers and get one accepted for you. I will point out, perhaps what you might be doing wrong. I get MY buyers into escrow, from pre approval to an accepted offer within 2 wks or less. If it is taking longer, then something is wrong. I have 13 escrows open right now with buyers in the city of Carson, and I'm sure your agent was competing against me. You are welcome to come here and see ALL my escrows, so I can prove to you, I am not lying. And I handle Carson alot. Many of my buyers are Philipino and other nationalities. Ask yourself, do you want to do this agent who sounds like a friend a favor? Or do you want to seriously BUY a home? If you want to BUY! Then please give me a call at 310-429-4170. Thank You.. Sheyenne Schultz shy@shysells.com
Web Reference: http://www.shysells.com
1 vote Thank Flag Link Sun Mar 21, 2010
I agree with UR Home Realty answers and would add on the following:

1. Did you ask your sister how did she structured her offer? How is her offer differ from your offers?

2. There are many listings that are not accepting FHA loan so make sure your buyer's agent verify all conditions set by the listing agent before submitting an offer i.e., it is fruitless to submit your offer if the seller is not accepting FHA financing offer.

3. Ask your agent to show you the "Agent Private Remarks" section. If you offer package is incomplete (missing required documents described in the "agent remarks" section ), then your offer will not be submitted to the seller for consideration.

4. if you are making offers on distressed properties, then make sure you have a current CMA and your offer is either "at" or "near" the fair market value of the property. Banks have valuation tools and their system will automatically reject all low ball offers.

5. On average, the distressed homes are already approx. 10-25% discounted. The banks are looking for an offer with highest "net" to them so ask for the 3% closing credit only "IF" the seller offers it. Otherwise, don't ask for the credit.

6. If you need funds to close, then you should (1) ask your BofA FHA lender to restructured you loan to include the closing costs, (2) consider a local city sponsored down payment assistant program http://www.calhfa.ca.gov/homebuyer/programs/index.htm

I hope the information helps.
1 vote Thank Flag Link Mon Mar 8, 2010
I agree with Monica, BofA is a nitemare. In my experience they cannot close in time, they also are not strong in performing the guarantee of the loan till the end, that may hurt you because if you remove your contingency in 17 days, you could be in danger of loosing money if they do not perform. My last one with BofA, needed a month of extentions and that was contacting them regularly pushing them.

I do get help with closing cost maybe 50% of the time but it does weaken you offer. It does not mean that if can't be done. Depending on your price range you may be competing with cash buyers. Your really need to know the comps in the area and offer highest and best right out the gate. If you were the top offer in a few, I think your Realtor may be doing a good job but if you are going after bank owned you the offers are generally in this picking order CASH, CONVENTIONAL, FHA, VA. So, you just have to keep pushing through.

You might consider also going after short sales that are at least 60 days in the process. Also throw some backup offers out there. Buyers walk all the time on short sales. Focus on ones that are at least 60 days in the process. Broaden your scope for a better chance. Inventory is low and lots of buyers out there.

Good Luck!!!
Web Reference: http://www.di4homes.com
0 votes Thank Flag Link Wed Mar 24, 2010
1) BofA is a very difficult lender to deal with. Consider an alternative lender?.

2) Seller concessions such as the 3% towards closing will almost always weaken your offer.

3) Depending on the condition of the property, FHA loans also mean the property must meet FHA standards. So if there are some "safety" issues such as broken glass, holes in the walls, leaking roof or anthing else that would pose a safety hazard, the seller will have to make the repairs prior to closing, which means more money out of their pocket.

It's hard to say if your offer was rejected simply because you are using BofA, asking for 3% in closing costs or using an FHA loan. Your realtor should ask the listing agent why your offer was rejected so you can fine tune your next offer

Good Luck,


Monica Hernandez - REALTOR(R), SFR
Century 21 Amber Realty
310-293-3335 direct
310-326-2121 x2719 office
dre lic# 01239118
0 votes Thank Flag Link Wed Mar 24, 2010
Hello Sassy,
I understand your frustration and disappointment in the purchase of your Dream Home.
In this changing Market it is a challenge we all facing.
The main problem is, we don't have enough inventories at this time, to keep all of our motivated and qualified buyer's happy.
I work with many Buyers’, I do recommend, and that the buyer is qualified by a lender.
This way Buyer and Realtor know what can be accomplished.
The following’s are NO,NO,NO's in this market:
No Conditions, Low Price, Subject to, asking for repairs, the banks lost enough money already and if you ask for the above, you loose that deal. But you have a good agent; you don't have to worry about the above.
P.S I almost forgot to tell you Sassy, that with every offer I sent a very nice letter of introduction, about the family that is buying the property, that is heart warming and appealing to the seller.

I am very happy to help you in another Real Estate question.

Ryan Gussman, Realtor
Altera Wilson, Real Estate


0 votes Thank Flag Link Wed Mar 10, 2010
Hi Sassy
It's hard to say exactly what the reason is, it might be a different reason for each purchase. One of the things you can omit is asking for closing costs to be covered, although in this market most sellers will take care of 3% closing costs.
One of the things a seller will look at is the good faith deposit, and the down payment. A higher down means more stable finances to the seller.
Looking for three months is not uncommon, it took my buyers four months of trying to be able to purchase something. They were consistantly outbid by All-Cash-buyers..and we were all frustrated!
0 votes Thank Flag Link Mon Mar 8, 2010

I would think about the terms of your offer. How long are you asking for the closing date? Terms in my opinion are as important as price. I would say though that it may very well be your agent. I would ask your agent to provide you with all their closed sales for the past 24 months. If they do not have at least 24 closings then I would thank them for their time and find a better agent. I have already sold 10 properties since Jan. 1 and most of my clients do not write more than 3 offers max. Best
0 votes Thank Flag Link Mon Mar 8, 2010
If you're bidding on bank owned foreclosure bargains it is not unusual to be outbid by ALL CASH buyers--even at a lower price. FHA Mortgages require an appraisal inspection and most lenders do not want to get involved with making any repairs to the property so they may shy away from FHA.

Is your sister looking in the same area as you in the same price range? If not then it isn't a good comparison.

Do not get discouraged and please do not be disloyal to your Realtor, it sounds like she has already worked very hard for you writing multiple offers and showing a multitude of homes, too. She will receive no compensation if you throw her away at this point so you should dig in your own pocket and pay her fairly if you decide to part ways.

Your preapproval with Bank of America should be sufficient evidence of your ability to close.

One last word... start looking beyond "cosmetic" fixups like stained carpeting, old appliances, uncleanliness, yard work, etc. If you will get the $8k FTHB money you can easily turn a sows ear into a silk purse!
0 votes Thank Flag Link Mon Mar 8, 2010
Sassy an offer with a fha loan is not as strong as one with a conventional loan or one with cash.Many sellers are gun shy with fha as it takes longer to find out if teh sale is approved and longer to close the sale overall. You first need to make sure the house willpass an fha inspection prior to making an offer. A good buyer broker will assist you in doing this, some listing brokers or sellers may know they wont pass and therefore dont want to do the work and wont take an fha offer. Remember that the 3% back is 3% less than the seller will receive, so when making an offer you cant beat up the price and expect 3% back too. it goes back to a great buyer broker makes great things happen. good luck with your search
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Mar 8, 2010
Hi Sassy, you've gotten good feedback here - your low cash contribution and need for seller concession for closing costs makes your offer a weak one. I think the suggestion that you approach your next offer with a mortgage commitment rather than a preapproval. That would deal with the likely objection head on.

Good luck - and yes, if you are not working with a very good buyer's agent then find one. And if you are low balling on price, stop. Offer a fair market price, have a mortgage commitment from a reputable lender and hire a very good agent and you should have better luck,

Jeanne Feenick
Unwavering Commitment to Service
Read my Blog: http://www.trulia.com/blog/jeanne_feenick_-_new_jersey/
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Mar 8, 2010
Sassy -

You have three things working against you - FHA loan, FHA loan, FHA loan -

1.) 3.5% down
2.) 3.0 credit back (in other words you can't pay your closing costs)
3.) most likely 45 day close because it is a FHA loan

If you are using a broker instead of a direct lender - you are reducing the chances of being accepted.

If you can't change any of the above, be patient. Try not to pursue foreclosures (REO/Bank owned) or short sales. Try to find a private seller and make a connection. Write a personal letter with your offer explaining your situation. First time home buyer, want a home for my family etc.etc.

Use shortest contingency period for physical inspection. Most inspections can be completed with 7 days.
Ask for complete underwriter approval not just a pre-approval letter.

Ask your agent what they think you can change to help.

Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Mon Mar 8, 2010
There are two main things that come to mind.
First the 3.5% down, we know this is what makes your offers weak. Even though you qualify with this market most Sellers are worried about the lower though standard down payment.
Second the money back to close suggesting a cash poor buyer, making you seem weaker still.
We do alot of the first time buyers and your down money and cash back is no surprise and very normal however we too have run into trouble with Sellers.
The absolute best thing you can do is ask your mortgage rep. for a PRE APPROVAL not a pre qualify letter this holds a bit more wheight making you a stronger buyer.
Also if you doubt your Realtor then perhaps changing Realtors may help.
If you've made several offers and if your Realtor is still showing you homes and trying then I think they may be doing their job. It's my guess whats happening to you is what we've stated above.
Get that Pre Approval in of a pre qual. understand that a pre approval means the mortgage company has checked out a verified all your inforomation, and that you can close quickly with little or no risk to the Seller.
all the best
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Mon Mar 8, 2010
My first question is: do you have a signed buyer broker contract with your realtor? If not, you may want to consider changing realtors. A good buyer's agent should be able to properly advise you on how much to offer and assist in negotiating to make sure the deal goes through or you at least have a decent shot at getting your offer accepted. I would be pleased to refer you to an agent if that helps. Please feel free to contact me.

Ralph Windschuh
Certified Buyer Representative
Senior Real Estate Specialist
Associate Broker
Century 21 Princeton Properties
0 votes Thank Flag Link Mon Mar 8, 2010
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