All Forum Posts by: John Lopes

@Myka Artis I have heard of 3 occasions in 2014-2015 where lenders sent out someone to door knock to verify occupancy. (Maryland) It also changes things on the offer side of the deal as well if it is a foreclosure being purchased. Depending on the seller (Fannie / Freddie ) have affidavits that are signed by Both the Listing Agent, Purchaser and Buyers Agent attesting to occupancy status of purchaser if Buying as owner occupant.

Then why did they have an exclusive negotiation period with the 1st offer? The biggest thing I want to know is what the "expiration date" means on vrms. Do you know?

No where near normal. crook. Just say no!

Have a question folks.

I put an offer in on a VA owned reo property a couple of weeks ago.

Was told there were multiple offers (3 total including ours), and also signed a multiple offer acknowledgement.

A couple of days later, we were told "The Seller has decided to negotiate another offer.  If that does not go through, I will let you know."

About 9 days pass.   My agent follows up.  We are then told that the 1st Offer People Declined the Banks Counteroffer, and that the Seller would like to Counter our Offer.

We receive the Counter.  Which is consists of;  The contract.  The 2 page addendum, copy of emd, and financial information, and a printed form from VRMS.  It is a screenshot of the offer portal with 3 columns.  4.1 Awaiting Resubmission, 4.2 Submitted, and 4.3 Seller Countered.    

On these screenshot pages, it states in the counter offer column an expiration date.  We received this last Friday (10.27).  The Expiration date was yesterday (10.31).   We decided to revist the property and see if we could rework our offer.  (Which was super close to initial list price anyway).    I just re-read the screenshot.  It states the dates of our initial offer, the date of the multiple offer situation, and clearly states Expiration Date (On the Sellers Counteroffer)

On Monday (10.30) our agent contacted the listing agent to let them know that we had a Counter to their Counter.  Was then told it was needed to be received Monday.  (10.30) Our agent mentioned that we thought we had until 10.31, but we could get it in quickly.    Around 5 our agent was called by the listing agent saying they were waiting on our Counteroffer.  We had it sent in by 530pm.

Yesterday morning, our agent emailed the listing agent to confirm receipt.  They emailed a reply acknowledging receipt.  (10.31)

We hear nothing yesterday.  (10.31)

This morning @ 9am, our agent inquired with the listing agent to see if they had a response to our couter offer.   He was then told that unfortunately they received yet another offer (new offer), and that now we are in a "Highest and Best" bid period against now 4 other parties.

We were operating in good faith, thinking that we were being exclusively negotiated with, had met time frames, and were waiting on a response to our counter, or if we had so chosen, we thought we could have accepted the initial counter offer.

We were told this afternoon, that the new offer triggered a "highest and best", (because we didnt accept prior to the timeframe) and that the new offer would have negated the validity of the initial counter. 

Is that true?   The new offer would negate the counter?

Is the date mentioned in the screenshot for the benefit of the Seller only?  (Expiration Date)

Sorry for being long winded, but, am I wrong to think that we were in an exclusive negotiation period? (knowing that they had done so prior with the first party) 

What good is the dates on that screenshot, and what does it really mean?  (Our agent was told today that the expiration date is for the seller only...   I would think it would say something like "Respond by" or similar , Not "Expiration Date".)

I smell something fishy, and want to get opinions.   Are we being gamed?  By listing agent?  Or?

   I could be off base, and this may now be s.o.p.   I just don't know.  

Thoughts?

Good morning All.   I am looking for opinions.   We have been investors for years.  Have never done a Joint Venture.  I was asked by a new investor to possibly do so.     They are bringing the project.  (Decent, solid deal, needs a good amount of work.  Just what we normally do.  Round Numbers are roughly Purchase $230K,  Fixup $110-120K,  Retail $550K - will be marketed first of february 2018 if it goes as planned)  I will provide the funding, and my own Crew, and Network of Subcontractors, marketing etc.  In exchange for a split on profit - 65% us - 35% them.  New entitity (to be created), I will control 60%.  They are not really wanting to just flip me the project.    

I could;

A)  Do the deal.   

B) Pass

C) Maybe charge some sort of management fee upfront maybe, or some upfront, and a profit percentage, and walk them through the process, start to finish using all my resources. (Including $$)   If so, what sort of upfront fee, and back end percentage is fair?

Thoughts?

@Russell Brazil,

My agent did in fact attempt to contact the Listing agent 3 days prior, 2 days prior, the morning of, and just prior to submitting the offer.  (Via Phone, Text, and Email.) TO NO AVAIL!

Also, don't assume my offer was a "lowball".    I routinely make offers in excess of list price.  I don't see the value in shotgunning lowballs.  (Yes, you could get one here and there.)    Therefore, I do NOT do that.

My letter, I suspect, is why the Listing Agent did not want to present the offer in this case.   (I utilized the listing agents own marketing materials to justify my position.)

And, just a side note, if I was the listing agent, I would NOT want the liability of making decisions for Sellers....   Not sure many would....

@Tom Gimer,  You are correct.  I guess it would only take 30 seconds to read the offer price, etc...   (Doubtful it was done in my experience)

The thing I find funny, is the local realtors just circling the wagons......  

@Audrey Dixon,   Your experience with no calls returned, last minute showing availability, or offer deadlines seems to be the norm these days.   I suspect quite a few of them have a buddy, or partner, or someone in the wings, waiting to buy the property   (The next experience I post will clarify this thought)

@Russell Brazil Is that done in writing? (empowering listing agent to make decisions) And I'm positive that would be a rare occasion. Right? I understand you may feel I'm bashing Maryland Realtors, and while you may be the most ethical of Realtors here in Maryland, lately it feels like you would be the exception to the rule. (especially in the Reo or Distressed Property Space) I'm going to start posting my experiences, this one is mild to say the least! Let me be clear, I am NOT asking for any sort of preferential treatment, I am asking that the playing field be litgitimate, and above board. Too much to ask?

Billy Smith, You noticed what is truly going on. Banks / Reo agents are pricing things on the higher end of things. And you are also correct that you do need an "inside track" to buy the good deals. Gone are the days of straight up, high bidder getting the deal. I don't think anyone wants preferential treatment, Just a Fair Playing Field!

David K, "Amen"!! It is ALWAYS made on the buy!

Correct me if I'm wrong, in Maryland, (maybe most places) the Listing agent MUST present all offers to the Seller? My point was that this particular agent opened and read the offer, then emailed a one liner back, without taking the time to present the offer. (within 3 minutes) It is NOT up to the Listing agent to be gatekeeper. They are compelled to present. Period! (Thus, some agents ask to be there while presenting to Seller)