How do you define "offered for sale"?

[PropertyEconomics]

Newspapers and yard signs are advertising and exposure to the market, does everyone continue to miss athome's statement this was an unsolicited offer?

Even using athomes words ... the property was offered. There was an inquiry to buy, the seller OFFERED it at $250,000 and the buyer accepted.
No where on the form does it say anything about listing or advertising. The question itself is simple to answer ... yes it was offered.
Did it have market exposure, not in the traditional sense but it was offered to one buyer and that buyer accepted. Was the exposure adequate? Apparently to the degree that it was sold.

Full explaination of the situation would be required, but in the legal and practical sense, the question on the form asks if the property has been "offered" the answer is yes.

As for my comment of "dying on the hill" this is not an arugment Im going to continue with the underwriter. They have a signed purchase contract, the buyer inquired, the seller offered, the buyer accepted. The box should be checked YES.

 

[Paul Isolda]

This has turned into quite a mountain. I still disagree, the property absolutely was not offered but I'm tired of the fight, it's clearly not worth it. I certainly would not risk losing a client over it. If the UW insisted I change the box I would do it. I would have a friend in NM to back me up on it.

 

[RSW]

What if the buyer askes the seller: "Hey I would like to buy your home." Seller says, "how much do you want to pay?" Buyer says, "$100K." The seller says, "How about $105K?" Is the seller not offering to sell the property for $105 even though the buyer started the negociations?

 

[Paul Isolda]

No!!!!!!!!

 

[DTB]

Yes!! and the word is counterOFFER.

 

[Atlanta CG]

Have to agree with Paul on this one.

 

[Smokey Bear]

It is a counteroffer, and also a rejection of the original offer.

 

[RSW]

So has it been offered for sale?

 

[PropertyEconomics]

For clarification:

Homeowner was approached, unsolicited, by the neighbor across the street. Neighbor wants to buy the house so his newly divorced daughter can be closer. Homeowner says "how much?" (THERE IS THE OFFER) Neighbor says "I will give you $250, 000." Seller says "sold." (THERE IS THE ACCEPTANCE) According to the homeowner, that was the entire extent of the negotiation.

Have done dozens of FSBOs on the 1004 always indicating "No" in the offered for sale box when there is no evidence of MLS, "Thanks Buy Owner," Craigslist, newspaper, or other marketing efforts. Never had a problem.

Semantics aside, was just hoping to find if there was something I was missing in trying to find specific reference to this issue among the FNMA Form pros.

In the grand scheme of things it matters not to me which box is checked, just looking for a leg to stand on for my interpretation of a vague question.

Thanks all for your opinions.

Bold added for emphasis .... in the actual situation the homeowner offered to sell when he asked How Much?

 

[Jo Ann Meyer Stratton]

I haven't read all the comments in this thread--but there sure would be problems in my area if those were not an offering for sale situations. The normal (and majority of sales) in Greenlee county following the typical scenario. Some body who lives in Clifton is talking to a friend in Walmart that they are thinking of buying a house in Safford. Somebody who lives in Duncan happens to be walking by at the same time, so they stop and ask if they are going to sell the house in Clifton. The owner says they are thinking of doing that. So the bystander asks what is your asking price. Seller tells them, bystander says that is more than what we wanted to spend. But goes home and tells their daughter in law that so and so will be selling their house in the future. Daughter in law tells second cousin the story who then tells their ex father in law. The ex father in laws calls the original person, they negotiate and there is a closed sale that I use in my next appraisal. It was exposed to the open market Greenlee County style and is a bonafide arm's length transaction. So yes the property was offered for sale.