The Offering Process:
Asset managers (The person between the real estate broker and the actual lender (Offers can not be submitted directly to asset managers by "investors")) have their own process that must be followed in order to make a successful offer. Listing agents are given instructions that are
conveyed directly to brokers. These instructions are displayed in the MLS system along with
required addendum's where required. This information is only visible to participating Realtors or their brokers.
Your offer will need to be submitted on the proper forms along with a copy of your deposit check (Typically 1% of the purchase price), a pre approval letter from a direct lender (Not your everyday loan broker) or proof of funds when paying cash. Your Realtor will also attach any required addendum's with your offer. All forms will usually be sent via e-mail and fax to speed the process.
After your offer is transmitted and received by the listing broker, your offer will be entered into an asset management system online or, in some rare instances where the asset manager (The banks representative) does not utilize management systems; your offer is forwarded on directly to the asset manager. In most cases, they will not see your actual offer. What is transmitted to them is only your name, the purchase price offered and the general terms of your offer (Whether there is financing involved, the amount of your deposit, the amount of your down payment and any other contractual provisions ). There is no need to explain your offer or provide additional details, they will not see it. The simpler your offer is, the better.
Once transmitted, received and entered or forwarded to the bank, all you can do is wait. It is
typical to hear nothing at all for a few days or, up to a week or more. Sometimes a response will be received in a matter of hours. Patience is a virtue. Hounding your Realtor will not speed the process. Nothing will speed the process at this point other than a clean and easy to accept offer. Even then, there is no guarantee your offer will receive a quick response.
When responding to your offer, the banks asset manager will do so using a counter offer. Even if they agree on all of the terms as submitted, they will provide a counter offer that must be returned to them within a specified period of time (Usually 1-3 days) after which their offer will be null and void. Time is of the essence so, be prepared to respond. If they are not in agreement, the counter offer will contain the terms that they are willing to accept unless another, more desirable offer, is received before your acceptance. You can either accept their terms or, have your Realtor complete a counter offer in return. Rarely will an asset manager complete more than 2-3 counter offers. If you can not reach an agreement after 2-3 counter offers, it is usually time to move on.
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Last Updated ( Wednesday, 14 July 2010 )
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