We're trying to buy a Homepath home and it's been a little rough. We would be owner occupants, first time home buyers with 20% down. We made an offer the first day the property was listed, and during the "first look" period. We offered 97% of asking price with 3% towards closing after taking their first time home buyer course (which offers the 3% towards closing if you pass). Listing agent responds that they will not offer 3% towards closing and will sell for 100% of listing price. We accepted this offer and it was shown as such on the homepath website. The listing agent comes back later and stated that the listing will be going into a multiple offer round and that we need to resubmit our highest and best (after we already accepted the 100% offer).
Has anyone dealt with a similar situation? This seems like extortion of some sort. Any recourse?
The "counter offer" on Homepath is Not a counter offer, that you can accept. It says, this is the price we want, you need to resubmit an offer for this price, and if we then sign it, then i's binding. There's no fraud here, the agent doesn't have some mysterious buddy, it's just how the system works. Obviously, someone else liked it at that price too.
You can have the same thing happen on any REO, and it's more likely in a hot market. HUD and Homepath seem to take it to a new level though.
The way I have always known the process is:
Make an offer
Offer finally accepted after any back and forth
Buyer signs the accepted offer
Seller signs accepted offer
**Now you have a solid sales contract
We placed an offer received an counter offer from Fannie Mae and then they rejected their own counter offer. I was very upset and my broker told me go sue the government and good luck with that :)
I think you need a different broker. Next time you need a buyer's agent, let me help you handle it.
The end result: I received my contract today for the original acceptance price, and we are proceeding with escrow deposit and closing.
The sales manager looked into my offer and stated "the asset manager that originally approved it became sick, and the one who took over didn't see the notes and began the counter-offer process all over again." One she saw the original agreement, she approved it and expedited the process.
Throughout the whole thing, I always countered with exactly the same purchase price Fannie Mae counter-offered and I accepted a week ago. Stick to your guns and good luck!
The end result: I received my contract today for the original acceptance price, and we are proceeding with escrow deposit and closing.
The sales manager looked into my offer and stated "the asset manager that originally approved it became sick, and the one who took over didn't see the notes and began the counter-offer process all over again." One she saw the original agreement, she approved it and expedited the process.
Throughout the whole thing, I always countered with exactly the same purchase price Fannie Mae counter-offered and I accepted a week ago. Stick to your guns and good luck!
It seems there are too many people involved and no one communicates to each other. Glad you finally got it all sorted out. I am still waiting to hear whether our offer was accepted or not. Being the squeaky wheel is the only thing that gets some action.