Somewhat of an Announcement

by brandt

Well, it’s finally happening.

After all this time, I never knew how it would feel to get to this point.

We finally have an offer in on a house.

Wait.  I need to redo that.

WE FINALLY HAVE A SIGNED OFFER IN ON A HOUSE!!!!!!!!  AIEEEEEE!!!!!!!!


*Ahem*  Let me regain my composure and get my voice down to a somewhat manish level.

So here’s the story with all the nitty-gritty details, and what comes next (before everyone gets too excited).

We were looking at all the houses out there, and decided that based on the current real estate market (which is very slow), plus the rising interest rates (which are starting to inch upwards), plus the fact that we found a house we really really like, we decided to pull the trigger.  House #8 was kind of so-so based on the pictures we saw online, but once we finally got in there, we loved it.  The things that really stood out to us were the kitchen with the granite counters, included select appliances, and tile flooring, the hardwood flooring on the main floor, the daylight windows in the unfinished basement and the potential for upgrading really pushed our decision.  That just goes to tell you how much staging a house and making it “ready to sell” is important.  This house had been on the listing for almost 100 days, and on a whim we decided to check it out to see if the house inside looked like the pictures we’d seen.

Well, we took the last weekend to think it over, and last Monday decided to get in touch with our agent and talk with her about putting in an offer.  We went back and forth, decided on a price as well as stipulations (such as concessions) and sent the paperwork over to the seller.

The seller’s had some concerns about the stipulations, plus had some stips of their own.  We finally got all the requirements nailed down on both sides, which was a huge accomplishment.  The other offers on houses that we placed got to the point where we would send over a purchase agreement for a price, and then deal with agents and sellers wanting to haggle that price.  However, our trusty agent, who has been through this situation time and time again, would get frustrated with that one step.

According to her, the biggest hurdle that sellers of short sales have to overcome is the BPO (or Broker’s Price Opinion).  This is a special type of assessment, kind of like an appraisal, where the bank appoints a broker to come out to the property and offer their opinion on the value of the property.  She also said that they (the bank and the broker) will take things into consideration like the comps in the area (of which, our offering price is right in line with the most recent sales), the length of time the house has been on the market, the area itself, the real estate market, and a bunch of other things.  She (and we) think that we have a good chance because we’ve made our offer competitive with the other comparable sales for homes in the area.  We’ve also given ourselves a good amount of room for negotiations (if it happens), whether that be on a price level or a closing costs level.

Our other short sales that we’ve made offers on haven’t gotten to this point.  We’ve haggled over the offering price and the closing costs.  My agent would get extremely frustrated with the other agents, mostly because (in her words) “Why are they trying to negotiate on behalf of the bank?”  She said that she has worked both on the sellers and buyers side, and the most important thing is getting the offer into the bank.  “It doesn’t matter what the offering price is.  I’ve told my sellers to sign off on the offer in almost every case.  I want that offer into the bank so it’s sitting on the desk waiting in the pile.”  She said that once the BPO is performed, even if the offer is rejected, the sellers now know exactly how much the bank is willing to accept, and the sellers are able to put the offer out there on the listings as a bank pre-approved short sale at the bank pre-approved price.

So what does this all mean?

Well, we now wait.  We’re looking at probably 60 days waiting for the bank to come back and respond to our offer.  If we really want to, we can get out of our contact, but it might be sticky.  I think that, as of right now, we’ll take our chances with this.  We really like this house.  This is a risk, though.  It could come back as a rejected offer with a counter that’s much higher than we’d like.  It could go 2 months, and we miss out on opportunities in houses that come available during that time.  There’s a whole lot of “if’s”.  I’d rather not think of those.  I’d rather think of the wonderful positive possibilities.

Image courtesy of the Public Trustee.

Advertisements

14 Comments to “Somewhat of an Announcement”

  1. CONGRATULATIONS! Who is the bank on this one? Is this the one you said was GMAC? Just keep on them and don’t let anyone start to slide. If you keep things in motion on your side and just harass everyone as much as possible you will get through it faster.

    • Aww shucks, thanks Heather.

      Yeah, it’s the GMAC one. My agent is pretty good about keeping on the banks (since she’s done this before), and she gave us a talking-to last night about what we’re in for with short sales, but if I gotta get in there and make a big deal, you know I’ll make my presence known!

  2. Wow, congratulations! The waiting game begins…

  3. omg omg omg YAY!!!!!!!!!!!!!!!!!!!!!!!!!!!

  4. eeeeeeeeeeeeeeee!!!! congratulations!!! how exciting!!!

    please don’t mind me as a i try to hide my jealousy!

  5. Thanks for all the love, everyone! We’ve still got a long ways to go, and who knows what the bank is going to think, but we’ve both been up quite late fantasizing and scheming about what’s gonna happen with this place! Let’s hope all your well-wishes are good karma to the banks!

  6. We didn’t buy a short sale – but there was still a lot of ups and downs and waiting – so I’m feeling for you right now! If it’s meant to be – it will. We had 3 offers fall through before the last, and BEST, one worked out. My positive vibes are with you!

    • That’s what kind of happened to us – offer after offer was falling through, and we were getting frantic. And who knows, this one might fall through as well, but at the end of the day, at least we’re farther than we were last week! Thanks for the vibes!

  7. Hi guys

    That’s exciting news! Wow, 60 days seems like a long time for the bank to get back to you. Is it how long it usually take to get the mortgage? Here you get it done in 3-4 days or so.
    The house is very nice and it looks big at least for a first time home buyer. Hope everything goes well with your offer and you can call it your home.

    Kinga

  8. Wonderful news! You’ll have keys before you know it!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: