Bank of America Home Loans Pre-qualification required on all offers, please contact......

Multiple offer situations lead to price increases in recent months. In September, the largest increase from list price to sales price happened on a home in the Acacia Crossings subdivision. The property was offered at $62,900 and sold for 26% higher at $79,500 - cash. It did not surprise me that a cash offer was accepted because sellers favor cash. Cash takes out the risk that a mortgage may not be approved and closing is faster and cheaper.

What did surprise me was that the listing stated “Bank of America Home Loans pre-qualification required on all offers, please contact....”. It makes me wonder if offering a home that much below fair market value generates a lot of leads for Bank of America Home Loans division. That they put so many buyers through this process and eventually sell the home for cash, I find quite something.

As a local Realtor I think this kind of listing causes a disruption in the purchasing process because many buyers engage in the pursuit of this property. Buyers submit offer packages, then go through the multiple offer process. At the same time they need to get pre-qualified. Eventually, only one can buy it and the disappointment is big. In addition such an offer distorts buyers’ understanding and perception of the buying process and what is realistic because it wasn’t revealed what the property actually sold for until the deal closed.

To make matters worse, the property remained in Active status for several weeks while the lender processed the offer that was selected. The fact that the listing remained in “Active” status gave the impression to many buyers that this property is still available. That placed my word (and I’m sure other Realtors experienced similar situations) against the Multiple Listing Service information. All in all this type of listing is not what I’m looking forward to.