Homepath Experience

8 Replies

I've noticed that Homepath does occassionally list desirable properties and I wanted to ask what people's experience has been with it, more specifically in regards to negotiations in a seller's market. I've noticed one property where their purchase price is 75% of what the agent is listing. Can I get them to accept an offer at their purchase price, or less? What forces are involved here?

Fannie Mae is awful to deal with (10% earnest money on cash deals, no retrading on issues found during inspection, etc.) but they do have some good deals come on. We've seen them take quite a bit less than asking, although it's usually after the property has been on the market for a while. I would say to just come in where you think the deal will make sense and see what they do. The worst they can do is say no. 

Originally posted by @Chris Leininger :

I've noticed that Homepath does occassionally list desirable properties and I wanted to ask what people's experience has been with it, more specifically in regards to negotiations in a seller's market. I've noticed one property where their purchase price is 75% of what the agent is listing. Can I get them to accept an offer at their purchase price, or less? What forces are involved here?

Chris, I'm not sure what you're asking here. What do you mean their purchase price is 75% of listing? Whatever price is listed on homepath.com is the asking price. You can offer $.01 on any property. Typically, depending on days on market and condition of the property you'll need to be within reason on your offer to get a counter offer that isn't list price.

Originally posted by @Andrew Syrios :

Fannie Mae is awful to deal with (10% earnest money on cash deals, no retrading on issues found during inspection, etc.) but they do have some good deals come on. We've seen them take quite a bit less than asking, although it's usually after the property has been on the market for a while. I would say to just come in where you think the deal will make sense and see what they do. The worst they can do is say no. 

Fannie Mae is excellent to deal with.  Some of their agents, not so much. 10% earnest money is a great rule. Keeps the jokers out of the way. If you find issues during inspections that are not known to the naked eye, and are substantial, usually they are reasonable. Asking for a new roof when you can see the shingles are crumbling or water stains inside on the ceiling, they're not going to go for that. Asking for a credit because water was turned on in a house that looks "normal" and there are 25 breaks in the heating lines, that they're likely to repair or provide a credit. 

Originally posted by @Mark Gallagher :
Originally posted by @Chris Leininger:

I've noticed that Homepath does occassionally list desirable properties and I wanted to ask what people's experience has been with it, more specifically in regards to negotiations in a seller's market. I've noticed one property where their purchase price is 75% of what the agent is listing. Can I get them to accept an offer at their purchase price, or less? What forces are involved here?

Chris, I'm not sure what you're asking here. What do you mean their purchase price is 75% of listing? Whatever price is listed on homepath.com is the asking price. You can offer $.01 on any property. Typically, depending on days on market and condition of the property you'll need to be within reason on your offer to get a counter offer that isn't list price.

 The amount they assumed the lender's mortgage for is 75% what the agent currently has listed it for. I want to know what motivations are at play because my analysis determines I can't purchase the property for more than what they paid for it. The property has been on the market for over 90 days.

Originally posted by @Andrew Syrios :

Fannie Mae is awful to deal with (10% earnest money on cash deals, no retrading on issues found during inspection, etc.) but they do have some good deals come on. We've seen them take quite a bit less than asking, although it's usually after the property has been on the market for a while. I would say to just come in where you think the deal will make sense and see what they do. The worst they can do is say no. 

Do you know what the earnest money requirement is for FHA or Conventional?

@Chris Leininger

What they "paid" for it has no bearing on anything whatsoever. They're trying to sell assets for market value. Tax records could show $1,000 or $90,000.. If market value is $75,000.. They want to get $75,000 (or higher).

I haven't dealt with a financed investor offer in quite a bit but typically they still want 10%.

Originally posted by @Mark Gallagher :

@Chris Leininger

What they "paid" for it has no bearing on anything whatsoever. They're trying to sell assets for market value. Tax records could show $1,000 or $90,000.. If market value is $75,000.. They want to get $75,000 (or higher).

I haven't dealt with a financed investor offer in quite a bit but typically they still want 10%.

That's the kind of information I was looking for. I was wondering if FNMA REO would operate by a different set of mandates or policies that would tilt in the buyer's favor during negotiations.

I noticed the seller agent listed extraordinarily high and has been steadily decreasing over the past 90 days. Would this explain why it hasn't closed? Austin metro is a seller's market and the home is in a modern subdivision. Do buyer agents typically steer consumers away from Homepath?

@Chris Leininger

Those of us who have bought a FNMA could probably come up with a whole list of guesses as to why it hasn't sold and one of them may or may not apply. More than likely the original appraisal was too high or the condition. You can contact me if you want me to take a look at it as I have MLS access