As of February 2012 all offers on Fannie Mae owned properties must be submitted online on the HomePath website. Fannie Mae had a pilot program running in select states. Due to its huge success, it’s now available nationwide. You can submit offers on any Fannie Mae owned home on their website.
HUD homes have been sold by online bidding for many years. In this day and age it makes a lot of sense to use the online auction process. It is much easier for buyers and real estate agents alike.
One of the biggest benefits of online bidding for HUD homes is that you don’t need to submit the full contract package until your offer has been accepted. There’s no need to waste paper to prepare a purchase offer. Instead your agent can log in and enter the offer on the website.
Only after HUD accepts your offer, do you have to sign the original documents and submit them to HUD within 48 hours.
How to Submit an Online Offer for Fannie Mae Homes
All offers have to be submitted by a licensed real estate agent. A buyer cannot directly submit an offer.
Unlike with HUD homes, the agent does not have to get a special Fannie Mae license. You can simply register before you submit the offer for your client.
Every Fannie Mae home listed on HomePath has a Make an Offer button. Your agent can click this button to submit your offer. She has to go through a number of steps, such as filling an online purchase offer form.
Once this form has been completed and reviewed, your agent has to upload 2 or 3 documents:
- the Sales Contract.
- the Fannie Mae Addendum, and
- the Owner Occupant Certification (not required for investor offers)
Unlike with HUD home offers, Fannie Mae requires these documents when you type in the offer. They accept standard purchase contracts provided by your real estate agent. The Fannie Mae Addendum and the Owner Occupant Certification can be downloaded from Homepath.
Once signed, your agent will scan these documents (PDF files) , and upload them with your offer.
HomePath allows agents to manage offers online. This means that your realtor can revise offers that have been previously submitted, e.g. to increase the purchase price, if more than one buyer is interested in the house. In that case your agent needs to upload new documents, as well. Offers can also be withdrawn (rescinded) online.
If more than one offer exists on a property, you may get invited to participate in a Multiple Offers Round. This is like a mini auction, where the listing agent tries to get the best and final offer from all interested buyers.
HomePath provides support and training, including video tutorials, to help you with this process on their Online Offers Support Page.
You can also download a step-by-step guide and register for a training webinar.
Fannie Mae homes are very desirable for buyers. They have a good reputation for their quality. As Fannie Mae targets owner occupants, they remodel some of their homes before they put them on the market. That’s why they get higher purchase offers. Most buyers like homes that are move-in ready, as they don’t want to deal with repairs and rehab loans (like you often have to with HUD houses).
