The Offer Process

Presenting The Offer

When presenting an offer to purchase an REO property listed by Bob Pritchard, The Century Team, Coldwell Banker King Thompson, it is important the buyer recognizes that the seller is a corporation not an individual. Most often the corporation is out of the Columbus area, and may even be in another time zone. Please, allow at least 5 business days. Banks require original "wet" signature contracts, NO FAXES.

We always require proof of funds for cash offers and a pre approval letter for finance offers. We also require a copy of the EM deposit check and the Sellers addendum form. All offers must have these item before it can be presented to the Seller.

Your offer is presented the same business day received. Offers received after 5:00pm, weekends and holidays or when the Coldwell Banker King Thompson office is closed are presented the next business day.

Usually we receive a speedy reply; however, sometimes the corporate asset manager responsible for making the response for one reason or another may not be able to respond within the time line required by the contract.

As with any real-estate transaction, when responses are not received within the time line required the deal is dead. However, if either party is still interested in continuing the negotiating we will make every effort to set the process back on track.

Multiple offers

Often Coldwell Banker King Thompson will receive several offers on the same property. When this happens the seller will instruct us to notify all buyers that there is a multiple offer situation and to deliver to Coldwell Banker King Thompson by close of business the next day each buyer's best and final offers.

We then present all of the "best and final" offers to the seller. The seller reviews all the offers. The seller is not obliged to accept any of the offers. If none of the offers reach the sellers requirements for the sale, they may counter the buyer who has presented the best "best and final" offer.

If the first buyer that the seller counters and the seller do not reach agreement, the seller may counter one of the other buyers. Sometimes before the seller has reach agreement with any of the buyers who were in the multiple offer group, Coldwell Banker King Thompson receives an offer from another buyer. We then inform the seller that another offer has been received.

When evaluating offers in a multiple offer situation, the seller is looking at many aspects of the offers. Sale price is not always the ruling factor in the seller's decision.


Closing

Title Company of Seller's Choice

Each corporate REO department is responsible for assuring that the closing and transfer of ownership to the buyer follow the procedures and guidelines set by their corporation. Most corporate sellers have established relationships with title companies and closing agents that are trained in the unique closing procedures required by the individual corporate REO departments. Most Corp. Sellers have already started the Title work before the property has been listed for sale. So, their Title/Closing Co has already been assigned the property and started their Title work. The closings from the buyer's perspective is no different than the closing of any other real estate transaction.

Most often the corporate seller is not concerned with which title company the buyer chooses to close the buyer's side of the sale. The Buyer is always responsible for their Title Company costs, if they choose to have their Title Company handle the closing.

Sometimes the selling corporation will make “a condition of the contract” that both buyer and seller close at the title company of the “seller’s choice”. This can sometimes be a problem for buyers who have established relationships with specific title companies and would prefer to close at a title company other than the title company of “seller’s choice”

Buyers who are not willing to close at the “title company of seller’s choice” will be responsible for their own Title Company costs.

Closing Date

Sellers expect to close on the date agreed upon in the contract. Seldom are the sellers willing to extend the closing date. Usually they instruct Coldwell Banker King Thompson to reactivate the listing immediately if the buyer does not close on the date specified by contract.

Sometimes corporate sellers will sign contract addendums extending the closing date; however, they almost always require a per diem as a condition for extending the closing date.

The per diem is an amount per day multiplied by the number of days past the contract closing date. The per diem amount is then added to the sale price. Example: If the per diem is $100.00 a day and the close is ten days late the sale price is increased by $1,000.00.

Most Corporate Sellers require at least 33 days from final receipt of signed contracts and addendums to close. This is 33 days from the time the Buyer receives the signed contracts and addendums back from the Seller. It takes 5 to 10 days from Seller receiving the signed by Buyer forms for the Seller to sign and return them to the Buyer's agent.


Surveys

Coldwell Banker King Thompson recommends that all buyers request a survey prior to close. Some lenders insist on a survey. If a survey is to be ordered, the buyer must notify the title company to order the survey. Surveys are not ordered without the buyer’s request.  Surveys are at the Buyer's expense.


Agency

Our agents are prepared and most willing to provide buyers with assistance in the process of purchasing the property; however, it is important that you realize that we have a duty to exercise reasonable skill and care for the seller and to promote the interests of the seller with the utmost good faith, loyalty and fidelity in sale of the property. We have a staff of five Real Estate Agents, any one of them can work with you. Click here to see profiles of  Our Staff

One of the first questions we always ask when someone calls Coldwell Banker King Thompson for information about one of our listings is "are you working with an agent." We ask this because if you are working with an agent it is your agent's responsibility to call us for any information you require. Your agent should be your go between yourself and Coldwell Banker King Thompson.