A Tale of Two Transactions
I have a short story of a client who has almost completed two separate transactions each with almost every other variable being identical that graphically illustrates the differences that can be experienced from one transaction to another.
The first involves and investor purchasing somewhat older properties to turn them into rental properties. The investor is young, well qualified, great credit and well capitalized trying to purchase his second batch of 2 properties. Of course, his first obstacle was qualifying for more property. Because he hasn't owned the first set long enough for them to show on his tax returns, the first lender said he had to qualify for all 4 payments without using any of the rental income from the two previous purchases. We finally found a lender that would take his actual rental reciepts and offset at least some of these payments and he was qualified.
This leads us to the crux of the story. As luck would have it, he ended up in contract with two very similar properties, in the same area, in basically the same conditions. Both properties were owned by the same GSE, which shall remain nameless since I need to stay in business, but with different agents and asset managers for each. In a nut shell, same buyer, same seller, same title and same lender doing both loans. THIS IS WHERE THE TRAILS SEPARATE. The first property came up with extensive water damage and various other repairs which required extensive repairs as required by the appraiser. The agent was courteous and professionally explained that he would try to address the issue with the asset manager. The asset manager arrived at the decision that if the GSE didn't sell to our buyer with the repairs, then they would simply have to do the same repairs for the next buyer. The repairs are now complete and we are moving to closing. The other agent and the asset manager were highly professional and worked diligently with one goal in mind. To get the property closed as quickly and fairly as possible.
The other transaction has been a nightmare. The asset manager originally gave us less than 20 days to close the transaction. When we predictably asked for an extension, the manager would only give us 7 days including the Thanksgiving weekend because it had to close by the end of the month for their statistics (bonus). When this property also turned up lender required repairs, the asset manager were very difficult and refused to perform the repairs unless the buyer made concessions equal to the amount of the repairs, required the earnest money to be non-refundable, and still only gave us an additional 15 days to close including the repairs and re-inspection by the appraiser. The agent was very short with all answers and stood by all the pat answers such as "you wrote a contract in as-is condition" and "that is the same condition the property was in when purchased".
The good news is when the market finally turns around\ and these agents again have to market their skills to the general public rather than recieving all their business from one pipeline, they will either acquire the skills or be forced out of the business. At the AL GAGE Team, we still believe in the old fashion mantra of the "Golden Rule". Treat everyone in a transaction the way you would want to be treated. This may be naive but my business will live or die based on this rule.