Today, there is no such thing as what we used to call a “normal transaction” in the sale of a home.
There are still regular sales, but we also have short sales, foreclosure sales, bank-owned sales and those sales that involve the likes of Fannie Mae and Freddie Mac.
In the old days — five years ago — a normal transaction involved a buyer who wanted to buy and a seller who wished to sell.
Each party had a vested interest in seeing the transaction was brought to fruition.
There would be negotiation between the two parties until an agreement was reached and the property closed escrow.
By now, most of you recognize the name Fannie Mae.
This is the quasi government agency that is holding billions of dollars of bad home loans that you, the taxpayer are responsible for bailing out so it may continue its quasi government work.
They have countless homes to sell, but the administrators do not have a vested interest in the property.
Here is the story of a recent transaction:
We had a cash buyer who made an offer on a Fannie Mae property and the property was supposed to close in two weeks.
As with most Fannie Mae properties, they are purchased “as-is.”
The offer was accepted by the Fannie Mae administrator, who for the purpose of this article we shall call “John.”
During our cold winter, Fannie Mae failed to winterize the property and consequently, as with many homes in the Rim Country, the pipes froze and broke.
This was discovered during the home inspection process by the buyer.
As with many transactions, the buyer requested John from Fannie Mae give an allowance for repair of the water system before the close of escrow.
Now John had the opportunity to say yes or no, but John decided he was going to teach a lesson about the meaning of “as-is” and cancel the contract instead of negotiating.
John said he was doing this to “teach us Realtors a lesson” about what “as-is” means, apparently forgetting that we have a fiduciary duty to represent our client’s best interests and wishes.
John said from his cubicle that we would have to re-write the contract (same price) and re-submit.
Apparently, John forgot that we represented a taxpayer who was paying his salary.
So, 40 new contract pages later, we have a new contract that we are resubmitting on behalf of the client, delaying the sale of a home that the government allegedly wishes to sell.
Almost forgot, we wasted another 40 pages because John put the wrong date on the paperwork.
This whole process made no sense to anyone in our office until we discovered John’s last name was Pedasel.
From all of us taxpayers, who pay your salary, thank you John Pedasel.
By the oft chance, if any of our federal elected officials read this or anyone in Fannie Mae, I would be happy to furnish John’s real name to you.
It never occurred to any of us, that it was Fannie Mae’s job to teach Realtors or taxpayers a lesson.
One more, Fannie is one of the few entities we deal with that does not take electronic signatures, so with all this federal talk of going green, we probably wasted 150 sheets of paper instead of electronically submitting our contracts.
Ray Pugel is designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.