Letters to the Editor

I'll do anything to save this deal

By Inman News, Friday, July 20, 2007.

Bookmarking Sites

Story Tools Sponsored by:

Re: 'Avoid these real estate deal killers' (July 20)

Dear Editor:

Bernice Ross usually has excellent advice for agents, but today's second part of her pointers for avoiding "deal killers" is the exception. Bernice advises agents to convince buyers that, in a market downturn, it is perfectly acceptable to pay more for a property than its appraised value. Get the buyer ready for the bad news when you know the appraisal will probably be low, and then the buyer will be ready to pay whatever overmarket price they made the mistake of offering in the first place. Don't give the buyer an out -- make that deal go through, no matter what, even if that means that the buyer has to take on additional debt in the form of a second mortgage that will be owed to the lucky seller. Can this really be the best mindset for an agent who is representing the buyer? And if the agent is representing the seller, how can this advice be considered acting fairly to all parties? Or doesn't the Realtor Code of Ethics (or California real estate law) come into play when the market takes a downturn?

Martha R. Williams
Co-author, "California Real Estate Principles," 6th edition

Dear Editor:

I disagree with your suggestions on how to handle the mortgage slowdown. An experienced and knowledgeable loan officer knows immediately the correct documentation to get a loan approved. Stressing that buyers make a loan application with strong, experienced loan officers will guarantee loans that close on time. No matter how many lenders a mortgage broker may have available, underwriting guidelines are virtually the same.

Again, the type of program and investor program needed should be known at the time of application. If not, then the loan officer isn't doing his or her job.

Lenore Berzanske
Citizens Bank
Mentor, Ohio

All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.