What is So Difficult about an ALL CASH OFFER?

By
Real Estate Agent with Mason Real Estate CA BRE 01444168

I have been on the abuse side or REO Listing Agent Bashing for a couple of days now after my blog post, Do Buyers Think They are Getting Slick? Was featured on ActiveRain. 

OK, there are a lot of good points there and some great conversation to help make things better.  By the way, I have had several of my asset managers read through the blog and subsequent conversation that followed and the best I can get out of them at this point is something along the line of "interesting".  We'll see what comes of that.

I also wrote another blog article that surprisingly tome did not receive very much attention, "REO LISTING AGENT OFFERS INSIDE SCOOP ON "HOW TO WRITE AN OFFER FOR A HEMET - SAN JACINTO CA BANK OWNED HOME FOR SALE"".

Well this article addresses both issues.

Lets talk about the CASH BUYERS I am seeing in the Hemet - San Jacinto CA area who want to buy an investment property while we are at the perceived bottom of the market.

Fair enough - the bank and I both love cash buyers.  I got an offer in over the weekend that will close this month if we can get together on the contract.  The difference really is very small.

Unfortunately, so is the price tag, so there is no room for an agent to try and make the deal happen with a portion of the commission - offer price is $55,000 on a $58,000 list price.  Sounds good so far, right?

The home is sold AS-IS and in the MLS I emphasize that there will not be any financing offers accepted, due to its current condition.

The offer that came in asked for both a termite report (no mention of repairs) and a home warranty.

The counter did not address either of these issues.  The buyer is upset as he feels entitled to a home warranty.  I explain to the buyer's agent that a cash deal should be just that - no concessions.  That's the way it has worked here in the Hemet - San Jacinto Valley for as long as I can remember.  I say lower your price by $300 and counter back. 

No, the buyer feels entitled.  Not sure yet what the bank will do.

A GOOD REASON NOT TO PAY FOR A HOME WARRANTY

I have one bank (not this one) who refuses to pay for a home warranty, for any home.  They are or the opinion that by facilitating and paying for a home warranty that the responsibility for the property condition could fall on them.  They are also a bit paranoid about a home warranty company going out of business - then what do they do?  Are they responsible to the new homeowner?

Not trying to debate these points, but just wanted to share what is going on behind the scene - just in case the REO Agent that you want to bash doesn't get back to you with any sort of explanation when your offer is rejected.  Apparently REO Agents have been known to be difficult to communicate with.

I may have found an new niche here as the REO Listing agent that educates buyer agents to make things happen quickly and easily for all parties - if everyone just does things right.  Let me know if you have any questions I can answer from the prospective of an experiences and successful REO Listing agent.

Posted by

Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

 Protected by Copyscape plagiarism checker - duplicate content and unique article detection software.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
California Riverside County San Jacinto
Groups:
REO REALTORS
REO
Local Expert
CALIFORNIA REAL ESTATE
California Loan Modifications, Short Sales, & REOs
Tags:
reo
hemet
san jacinto
ca
real estate
offer
buyers agent
bank
cash
home warranty
mls
asis

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
421,924
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

Hey there John....I think I would tend to agree with the (REO) banks in regards to the home warranty issue.  It makes perfect sense in this letigious world we live in.  Buyers probably WOULD find a loophole to make the bank responsible for after the fact repairs.

Sep 22, 2009 10:58 PM #1
Rainmaker
478,165
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Michigan

Just reduce your cash offer by the cost of the Home Warranty and close the deal. Cleanest way to do the deal.

Sep 23, 2009 12:49 PM #2
Rainmaker
160,731
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

This makes sense. Thanks for the blog.

Sep 25, 2009 12:31 AM #3
Rainmaker
301,835
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Jean,

Thanks for the comments.  No one wants to get sued - not the banks and certainly not me.

John

Sep 25, 2009 11:40 AM #4
Rainmaker
301,835
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Robert,

I agree 100% and I believe that is the buyers agents responsibility to teach their clients how to structure the offer.  Otherwise buyers have a sense of entitlement -cash or no cash, they want what they can get - so offer less and get the most you can.

John

Sep 25, 2009 11:42 AM #5
Rainmaker
301,835
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Amiri,

Good to see you reading with I am sharing - please feel free to stop by anytime.  I'm sure we will agree and disagree again in the future - but at least we keep the conversation alive.

John

Sep 25, 2009 11:43 AM #6
Post a Comment
Spam prevention
Show All Comments
Rainmaker
301,835

John Occhi

SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate
Ask me a question
*
*
*
Spam prevention

Additional Information