BEST ANSWER
They will not necessarily take the highest bid. They will take the highest bid that has the best chance of closing. The bank will look at all offers and pick the strongest offer. There are a lot of factors that are considered besides the offering price such as a cash offer vs. a financed offer, the size of the earnest deposit, how soon the buyer wants to take possession, inspection contingencies, etc. As an example, say the list price for the home is $100,000. The first offer is for $105,000 cash, closing in 2 weeks with no inspection contingencies. The second offer is for $110,000 on a conventional loan, closing in 4 to 6 weeks with a contingency requiring an acceptable home inspection. In this example, the bank would view the first offer as a much stronger offer even though the offering price is less.
It is always a good idea to have an experienced agent represent you and your best interest in this type of transaction.
Mon May 18 2009, 20:49
Fair Housing and Equal Opportunity