I received the following email about a new listing. It is a Freddie Mac/HomesSteps foreclosure in Gulf
Shores. I thought probably more than one personal would like to know how this
works, so I am going to post the email and the answer, with details on How It
Works. First the question:
"is 89900 the asking price on
this house or is it one of these house where if i give you the full amount
someone else can offer higher and they can get it. or if i gave you 89900 to
you it would be mine .it would be cash money .i live about 5 hours away and i
would hate to drive down there and then be told that if someone offers more
,,then they can buy it ,that has done happen to me two times."
This is how it works:
Properties are listed on the MLS
at a List Price. That is the price the seller is trying to sell the property
for. Sellers would like to net as much as they can on the sale of the property.
If someone comes along and offers them more than they are asking for, yes, they
will usually take it. This usually happens if there are multiple offers on the
property or the buyer is concerned that there are going to be mulitple offers
on the property. But there is more to it than that.
In this case, it is a Freddie Mac
foreclosure, so I am going to explain how it works with a Freddie Mac/HomeSteps
foreclosure. The precedure can vary with different sellers, and of course
Freddie Mac/HomeSteps can change their procedures at any time.
1. Freddie Mac/HomeSteps lists a
property with a Realtor, who puts the property on the MLS.
2. The 1st 15 days that the
property is listed on the MLS it is available for sell to Owner Occupants only.
Owner Occupants are buyers who are going to move into the property and live
there. This is called the First Look period.
3. Investors and people buying
second homes are eligible to have their offers accepted on the 16th day.
4. When an offer is written it is
entered into the HomeSteps system by the listing agent as soon as they are
able, but within 24 hours.
5. Once an offer is entered into
the system, if any other offers are received then they are entered into the
system as additional offers.
6. Freddie Mac/Homesteps may
accept the offer that is in the system or they may counter the offer.
7. If Freddie Mac/Homesteps
accepts the offer in the system then any other offer that comes in will be
negotiated as a backup offer only.
8. If Freddie Mac/Homesteps
counters the offer then they will give the buyer a certain amount of time to
accept the counter or counter the offer.
9. If buyer accepts the counter
then any other offer that comes in will be negotiated as a back up offer only.
10. If the buyer counters the
counter and other offers have been received, then a mulitiple offer situation
exists.
11. In a mulitple offer situation
all parties are informed in writing that they are in a mulitple offer situation.
They will be given written notice that they can withdraw their offer, leave
their offer the same or change their offer in writing. They are given a
deadline to do this.
12. When the deadline arrives all
offers are entered into the system and Freddie Mac/HomeSteps chooses which
offer they are going to accept or counter.
At any time, in the state of
Alabama, until you have a fully ratified contract (signed by all parties)
anything can happen. However, this is the instructions listings agents are
given to handle offers on Freddie Mac/Homesteps properties.
The property stays on the market
until there is an accepted contract.
Buyers can make offers even after there is an accepted offer, however
they are only considered as backup offers.
This is the system, without regard
to negotiating strategies being discussed. That would be an entire other
article that I will work on later, but I would like to make one important
statement.
The sooner a buyer writes an offer
the more likely they will be to not get into multiple offers.
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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port
City Realty, Mobile, AL;
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com
You can search for properties from a LIVE MLS here. This
search should have accurate information since it is fed directly from the
Mobile MLS.
Click here to search a LIVE MLS link from the Baldwin County
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