Offer Submission Instructions
Please Read these instructions carefully and be fully aware of the following guidelines!
Bank Owned – Bank Owned Properties are owned by banks and not by private sellers. The bank may be exempt from certain disclosures. Your client may be required to submit additional bank addendums with your final offer. These addendums can not be altered. An additional/altered addendum may cause the seller to decline your offer.
Timetables
Timetables and deadlines are to be strictly adhered to. Loan commitment, inspection dates, and closing dates may not be extended and failure to close on time could result in a per diem charge to your Buyer. If you cannot close on time or cannot abide by the terms of the addendum, please do not write an offer.
Pre-Approval
Many lenders will not fund on a property that needs work. It will be up to you, the Buyer’s Agent, to make sure that your buyer’s lender will fund on a distressed property, if this is the case. A failed loan will cost everyone time, money, and possibly the deal. Unfortunately, some lenders will say anything to get an application and run the proper checks later. That is why it is important to confirm that the loan will fund up front and that the approval is based on credit scores and accurate ratios. The pre-approval must consist of LTV, Loan Product Type, and Acknowledgment that income, assets, and credit have been verified.
Copies
We only need one clear copy of your offer. Please do not submit multiple copies. In some cases, we may need an original and we will request that if necessary. You are welcome to drop off the original at our front desk, but we will not review the offer with you. It will be reviewed ASAP. The preferred method to submit your offer is through email or fax.
Contingent Offers
Do not submit an offer contingent upon the sale of another property. Any offer submitted contingent upon sale of a property will be rejected by the seller. If an offer is contingent and this is not disclosed, it will be discovered, so please do not submit. All buyers must be pre-approved and/or have proof of sufficient funds to close on a certain date.
Submission
All written offers are presented directly to the seller in a timely manner during business hours only. This may give you time over the weekend to submit a well put together offer by early Monday morning. Please fax or email your offer. On faxed offers, please include a cover sheet and make sure that it includes your email address and fax number. It is rare that we do not receive our faxes, but please keep your fax receipt as proof. All offers are submitted to the Seller, according to state law and the Seller’s wishes. We present all offers until the offer is verbally accepted, in which case, the bank will not review other offers, subject to a timely receipt of “accepted offer.” We do not officially present “back up” offers once an offer is accepted; however, we do make the bank aware they are in and we will keep them on file. For more info see FAQ Page.
Response Time
The Seller is a corporate entity and may respond very quickly or very slowly depending on their volume and staffing. We have no control over the bank’s response time; however, you will be notified of any other offers, counteroffers, acceptance, or denial either via email or phone call. Please do not call us, we will call you. If you need a confirmation of receipt and you have not received your offer acknowledgment, please email: offers@wowway.com. For more info see FAQ Page.
Counter Offers
The banks do not negotiate in writing. Counter offers are relayed via email or verbally to our office, which will then be communicated to you. The only time that you will physically amend your offer is when it is accepted, unless otherwise instructed. Your final offer must match the final price and terms exactly. You will be asked to amend upon acceptance.
Multiple Offers
If multiple offers are submitted on the property, you will be notified that the Seller is asking for “highest and best offer.” You may also receive a “multiple counteroffer,” where the Seller counters various parties. Keep in mind, as these properties are high in demand, you should counsel the Buyer to make sure of their highest and best offer from the onset.
Valuation
Pricing on bank owned properties is established by professional evaluators and has nothing to do with the former mortgage amount. Their only basis for price is market value vs. condition.
Requirements
With every offer, we need:
□ Your office’s written, executed, and initialed PA
□ Completed Offer Packet
Signatures
The PA must be signed by all buyers. Please make sure that there is a clearly printed name or corporate entity under the Buyer’s signature. If there is a corporate signor, make sure that the person signing is authorized to represent the corporation and has the proper documentation to prove this.
Commissions
Your commission will be paid as usual, as the amount noted on the MLS, based on NET Sales Price. Please do not send a copy of the MLS Sheet with the offer. Please notate the co-op commission on the PA. Commissions are paid as a guarantee in the MLS and are not negotiated between Buyer and Seller. Please refer to your broker if there is any discrepancy on this.
Addendums and Disclosures
The Buyer and Agent understand that the additional Addendums may be required by the Seller and will be provided by the Listing Agent, once the price and terms have been agreed upon. Any Addendums will supersede any and all other documents. All contracts, addendums, and supporting documentation must be received by the Listing Agent within 1 business day of the Seller’s verbal acceptance or the offer is null and void. The required Disclosures are supplied in the offer packet.
Earnest Money
Only a copy of EMD is required at the time of the initial offer. Once your offer is accepted, EMD must be converted to a cashier’s check or certified check and made payable to the Seller’s Title Co. It is your responsibility to deliver the EMD to the Title Company within 48 hours of acceptance. Do not send us a check.
Inspection and Fees
First, see offer packet for applicable instructions. Buyer may be required to pay for and order any required city inspections. For properties located in the City of Detroit, an application will be emailed to you with instructions once your offer is accepted.
Utilities
If the Buyer requires that utilities to be turned on for the purpose of inspections, it is the Buyer’s responsibility to coordinate with the local utility company to have these turned on and off, at the Buyer’s expense. In addition, a $150 de-winterization fee must be paid to our office in certified funds to turn the water on.