Loan officer’s advice frustrates buyers with a careful purchase strategy

Q: We are homebuyers in a dilemma. Because our offers keep losing out to other homebuyers, our buyer’s agent has lost interest. The buyer’s agent is used to presenting “contingent-free offers.” That’s not our style. We will not risk losing our earnest money deposit until we know we made a safe purchase. After all, it is the most significant investment of our life.

The loan officer called and explained why our buyer’s agent was “moving on.” The loan officer explained there is no need for contingencies. (No joke.) He balked about an inspection period for the physical condition contingency, adding, “The seller’s agents did their job.” We asked for clarification. The loan officer noted that each property we tried to buy had presale seller inspections provided by the seller’s agents. Empathizing with our buyer’s agent on a questionable point, he loudly repeated his seemingly counterintuitive phrase, “The seller’s agents did their job!”

Hasn’t the market changed enough to allow contingencies in a real property purchase offer? And more importantly, are we way off base here or is our current loan officer?

A: You are not off base. Additionally, I’m glad you wrote “our current loan officer.” Replace him ASAP — no question. Your second pairing of a loan officer and buyer’s agent will help you succeed as homebuyers.

A contingency in a real estate transaction allows for cancellation within a specific period. If the homebuyer rescinds the sale during the contingency period, their earnest money deposit shall be retrievable.

In the Bay Area, a home inspection, aka whole-house or a property inspection, is a general overview of heating, plumbing, electrical, roof, foundation, et cetera. Seller disclosure packages began in western Silicon Valley and on the San Francisco Peninsula. Listing agents, aka seller’s agents, assemble the disclosure packages before a For Sale sign is placed. The disclosure package includes seller questionnaires, real estate advisories and the general home inspection. Plus, specialty inspections include roof, chimney, fireplace and termites. Some proactive and astute seller’s agents include foundation inspections and lateral sewer line reports.

The seller’s inspections are meant as disclosures and are not to substitute for buyer inspections. Full stop.

Astonishingly, inspectors and loan officers often advise consumers on the brokering of real estate. Stating bad advice outside one’s area of expertise — and louder each time — does not make it correct. It’s been said that the difference between ignorance and stupidity is knowing better. Facing shoulder surgery, you wouldn’t take advice from your dentist. Find real estate professionals with the savvy and skill to protect your interests — not theirs.

Questions, concerns or inquiries? Realtor Pat Kapowich is a Certified Real Estate Brokerage Manager and career-long consumer protection advocate. His hometown of Sunnyvale, California, is where he is based. Office Landline: 408-245-7700, [email protected] Broker# 00979413 www.YouTube.com/PatKapowich