A few years ago Realtors® were up in arms about the thought that banks might get into the real estate business. Letters were fired off, hearings were held and the NAR spent thousands to make sure that banks stayed at arms length from the real estate transaction.
Fast forward to today and across the country, banks and lenders ARE in the real estate business. In fact in some areas of the country there are more bank owned properties listed in the MLS than there are seller owned properties.
What makes this so frightening is that the banks and lenders have no clue how a real estate transaction works. It isn't that they aren't trying but the employees behind the scenes have never handled the listing or sale of a home in their lives. So when a contract comes across their desk they have no idea what they might be seeing.
Over the last two weeks I have been involved in a transaction that has completely baffled not only me, my clients and my broker but I am sure the other agent who also has an offer in on the same property. As listing agents one look at the contracts and we would have been able to give our seller a simple recommendation. Offer A is for x dollars and Offer B is for y dollars. Offer A is higher and all other terms and conditions are the same so let's select offer A.
However the bank decides to ask both Offer A and Offer B to make a best and final offer. What happens? Both Offer A and Offer B come back with identical amounts and terms. Alright wise ones now what do you do? You send both offers a counter outlining the price and subsidy that you will accept. Excuse me you send both offers the same counter offer instead of letting them choose what they want to counter?
What did the bank think would happen? Perhaps that someone would blink and pull out of the process? Instead they get back the exact same accepted response to their counter offer. So you still have the same offer from two prospective buyers. Would an experienced agent ever have gotten a seller into this predicament? I highly doubt it. While the bank is trying to sort all of this out both agents submit contract amendments changing the amount of their last offers.
Now Offer A and Offer B are back to being different again. Does the bank decide that enough is enough and it is time to select the current highest offer in their hands? No they ask once again for best and final offers. At what point does this go beyond stupid to the point of ridiculous? Meanwhile they have a home that could be two weeks closer to settlement
If banks want to be in the real estate business then they need to hire brokers and real estate agents in house to unlock the mystery of how a real estate transaction works. I'm not going to tell them they can't be in the real estate business because folks that ship has sailed. Instead now we have to figure out a way to get inside their doors and help them understand the process and that when you have multiple offers you don't under any circumstances counter with the exact same terms to TWO different contracts!
Real People*Real Lives*Real Estate
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