Lori Jeltema

All the contracts are different around us. Some have a buyer request written persmission, some don't. It seems so clear to us when we look at the specific contract.

I wonder what ever happened?? - Mon Jun 22 2009, 16:15

Sonal,

Was your attorney looking at a copy of the contract this buyer signed? Some contracts specifically have the buyer list the lender(s) they intend on using and clearly state that the buyer must have written persmission from the seller to change. Who knows what this buyers contract stipulated? I don't know if he's every replied with what his actual contract says.. Confused should not be taking any advice from anyone who has not actually read the contract he signed. Our line of work is already made harder by clients and customers who say 'I heard from a co-worker', ' my cousin in California says', and 'I read on the internet'. Nothing we say is going to matter if he signed a contract and does not perform. - Mon Jun 22 2009, 15:36

sorry, but your definition of what 'ratified' is, is not what drives the terms. If the EMD was deposited, I would think that you have your self a ratified contract with contingencies...just like a home sale, an inspection or other contingencies. The bank may be a part of the contract, it depends on what his CONTRACT says! If the contracts says that he will get a specific loan from a specific lender and he has a ratified contract, then he needs to make sure he can change. Some contracts have you list the lenders you are considering and specifically say 'buyer to get sellers written permission should they wish to change lenders'.

if you are ratified, then there are specific trigger dates that you should be paying attention to. When I write on a short sale or third party approval home, we put in there that, although the contract may be ratified and accepted by the seller, the buyer's 'trigger dates' for the loan application, appraisal, home inspection, termite, etc., will begin once the third party approval is finished. this prevents the buyers from spending money before the banks accept the terms.

Once again...it's your contract. What did you allow to be put in there and what does it tell you to do??? If you aer not sure, ask to get, in writing, what is allowed. - Sat Jun 20 2009, 05:29

check your contract. You could have a ratified contract with the seller with a third party approval contingency. If you have agreed to terms with the seller, don't assume that you can make any changes you want just because the third party contingency has not been met. First, find out if you are ratified. Has your emd check been deposited? Has the seller signed off the contract and the contract has been processed? Since no one here has your contract in front of them, it would not be a good idea to listen to advice telling you that you can do anything you want. Find out what your status is. It should be very clear to you whether or not you are 'under contract' or not. - Fri Jun 19 2009, 12:27

Grill,

We were stationed at the same place for nearly 10 years so I understand how you feel. Fortunately, Langley was our last assignment and we bought as soon as we got here.

Where do you plan on living?

Don't fry your brain anymore on researching all the individual details. One call to a good loan officer will give you a complete run down. Most likely, they can access your VA certificate of eligibility online.

Ignore Goat. Maybe he should move to another country and see how easy it is to voice his piggish opinions. - Mon Jun 22 2009, 09:54

it's hard to get a VA offer by when you are in a multiple offer situation since the VA buyer cannot be forced to pay over the appraised value. So, one can offer what they like and enter into a competitive offer situation but if the appraisal comes in a dollar below the agreed upon price, the VA buyer can walk. There is a lot of risk to the seller. You don't know you are in a multiple offer situaton until you express interest in the house and the agent calls to find out. It's a catch 22 - you don't want your agent to NOT show you these homes since they meet your criteria.. some homes are easier to figure out due to condition (cash buyers don't have to worry about appraisal driven condition issues).

It's frustrating for buyers, sellers and for us agents since we have to deal with the screams of 'it's a buyers market - bargains galore' and we know that every area is different - even down to neighborhoods.

I wrote 4 offers last week and if it was truly the situation that we hear about everyday on the tube or in the paper, all of them would have been accepted but none were!

VA offers are getting accepted but if you read the appraisal clause in your offer to purchase carefully, you will likely find the wording about the buyer having the option to close on the house if the appraisal comes in at any price below the agreed price. So, in the above example, you offer $160, the appraisal comes in - even at say $150 and there is no way that the seller can force you to pay the difference. The seller is placed in a situation where they may have moved out already and the deal is on the fence two days before closing due to having to find out if you are really willing/able to pay that extra money and close. I'm a veteran myself but I have to advise my clients of the risk, it's my duty to them. On a conventional loan, you can put in writing your intention to pay the difference, if necessary and be held to it which is a safer bet for any seller. - Mon Jun 22 2009, 07:43

Go to the next association meeting with flyers of the house. Ask the neighbors to help find their next neighbor. Is there a clubhouse? Check out advertising the listing there. - Fri Jun 19 2009, 12:29

Ron,

Steve is not an agent, he is a seller. - Thu Jun 18 2009, 09:18

i'll go out on a limb and say that most of the agents that work in my office (and most of my competition in my area - people that I negotiate against or compete for business with but still respect) sit up at night worrying more about the welfare of their client than the actual commission from that particular sale. I think that history shows us that you can't always assume that the status quo is the most vocal or shocking group.

I also should point out that, although agents don't always agree with each other, there may be some agents who have commented that work with buyers but are simply sub agents for the sellers - not a representative to the buyer. In those cases, it's not their job to negotiate for the buyer. Many people want to just have an agent 'write up the contract' or show one property or have the listing agent show them the property. In those cases, if the agent benefits from a higher fee, and the buyer feels that they do not need the agent to represent them because they consider themselves more knowledgeable, then that's a different story. that's were you will see a lot of '$$ bonus to the selling agent with full price offer' being put out there. The agent is really a sub agent w/the listing agent and it's their job to procure a good offer for the seller. There are some agents who work with buyers but do not represent them and there are other agents (like myself) who are buyers agents. Two completely different situations with different responsibilities. At the end of the day, it's what level of representation the buyer wants combined with what level of commitment they are willing to give their buyers agent. - Fri Jun 12 2009, 10:05

i have never filtered my listings. my buyers get whatever fits their criteria and it's up to them what they want to see. They tell me what they want to see and if one of them offers, say $100, I let them know before showing that the fee offered does not cover my fee. Usually, they want to see the property anyway. Rarely have they actually selected one of them. I could care less, when working under a buyer agency agreement, which house is offering what fee. I know I'm going to get paid and my client knows that I'm not going to try to push them towards the house that may not be right for them but pays me more $$. I have, very few times, agreed to lower my fee when doing so would keep a sale together and there was a compromise across the board. I try, however, to be as consistant as possible. I don't want one client thinking that i treated them unfairly. - Fri Jun 12 2009, 09:21

rockin,

I have had buyers pay me part or all of my fee 3 times in the past 8 years. Twice, I have been offered a higher fee and negotiated it back to them. I do not think that I should get happy with being paid a dollar afer spending 4 tanks of gas showing property to someone and I don't think that my clients, after realizing how much time I spend with them, would think that is fair. As for the three people that have paid me (either by buying a fsbo or a listing w/a low fee) we still exchange Christmas cards and I've attended their family weddings, graduations, etc., no hard feelings. - Wed Jun 10 2009, 04:19

Dune,

In your last sentence, you mentioned flat fee services, which is one of the many options that a seller has. Although I'm not a 'discount or flat fee broker' , I see nothing wrong with offering what the client wants. I didn't realize that your question regarding it was retorical and I was trying to be helpful - my bad. - Sat Jun 6 2009, 16:55

Dunes,

When someone lists their home, it's pretty clear in the listing contract what services the agent is offering. it's all about offering a service and having the client understand what is being offered and what they are paying for. The reason that there are different types of listing agreements is because the consumer wants a choice and that's a good thing. So, there are differences but it's like going out and ordering what you want off a menu - it doesn't make one order better than the other if it's what the person wanted in the first place. - Sat Jun 6 2009, 14:07

An agent posting what the average commission could get them in trouble. If they don't know why, they should consult their local real estate board.

Steve, what homes an agent shows their client should be based on the agreement they have with their buyer. A buyer may tell their agent to not show them listings offering less than their fee or the buyer may tell their agent to show them everything out there, including fsbo's, knowing that they will have to make sure that the agents fee is covered by them. So, if you list your home for less than what some agents charge, AND the buyer informs their agent to exclude your listing, then you've lost a potential buyer. I have read and heard that many agents will not show listings that offer below a certain amount and I sure hope that their bueyrs know that. In this day and age, most buyers will find your home through the various advertisements and should ask about it anyway. It's price, Steve, that will get their attention first. Williamsburg is a tough market in itself. I don't know if you are actually in JCC or not but the areas that your home is marketed in are very important. I'm a member of both WBG and the Peninsula MLS systems so my buyers will see both when I send them listings. If they like it, I would not hessitate for a second to show it to them. The difference (if any) in commission, would have to be worked out but my clients would know that in advance.

Listen, we should be treating ALL possibilities to sell a home as important. I'm not going to post how 'low' is too low, but if you want me to run over scenarios with you and talk about marketing your home, I'd be happy to get together. Whatever you do, remember that, although this is a great area and doing better than a lot of other markets, price, location, condition and patience are key. By the way, if your house is under $260, around 10yrs old or less and you do not live in a poa, I have a buyer looking (really, i do). They have a business vehicle and most likely eill not be able to park it in all neighborhoods. - Fri Jun 5 2009, 09:31