Lenders can help Realtors get offers accepted in a competitive market

by Brian Brady

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Most buyers find themselves in a multiple offer situation in today’s market.  While the highest price often wins the home, other factors come into play–some buyers are waiving appraisal, loan, and even inspection contingencies.  Selling agents who want to protect their buyers, while affording them an “edge” against competing offers, are encouraging listing agents to contact the lender directly.

We think you can be more proactive than that.  Here are five tips for Realtors about how to use a great lender to get your offer accepted:

1- Use a reputable mortgage broker, not a lender.  (see why here) Both the originator and the mortgage company should have review pages, whether they are on Yelp, LinkedIn, or Lending Tree.

2- Use a loan officer with exceptional communication skills.  If you want to test those skills, call him/her.  If he or she doesn’t answer the phone, leave a voicemail and send a brief text.  If you don’t get a text back or return call within an hour, you have the wrong guy or gal.  That includes weekends.  YOU work on weekends; so should loan officers.  You should expect the originator to be responsive, Monday through Friday, 830AM to 7PM and 12PM to 5PM on Saturdays and Sundays

3- Make sure your buyer is pre-approved rather than pre-qualified.  This means that the credit has been pulled, income and assets were analyzed and verified, and the file has DU approval findings in it.  The pre-approval letter should address all of those issues in the body of the letter.

4- Have the originator call the listing agent and offer to do the following:  speak with an originator the listing agent trusts, to review the loan approval or, if desired, speak directly to the seller.  The originator should speak frankly and honestly about the contingency removals iin the contract and explain which ones might be difficult to meet.  Be wary of the originator who makes promises which he/she knows can’t be kept.  Underwriting approval time is easily determined but the originator has little to no control over the appraiser.

5- Have a plan to deal with a low appraisal and have the originator communicate that plan with the listing agent.  That plan doesn’t always have to be “bring more money to the table”.  We had a transaction where both the listing agent and selling agent were local experts.  Debra and I had made over 100 loans into that zip code so we felt pretty confident in our valuation skills as well.  Nonetheless, the VA appraiser issued a Tidewater Notice, and we had a plan.  The listing agent and I considered some additional comparable sales and presented them (within 3 hours) to the appraiser with numerical values for adjustments— the appraisal came back, one day later, above the contract price

This is a tough market for buyers.  A good loan originator could be the most important player on your team when making an offer.  Choose one carefully.