Am I the highest offer?
What is the highest offer?
When will the Seller respond to offers?
Fact is, I have never received just one offer on a Bank Owned property, more than one offer is already a multiple offer situation. Therefore, after the property has been on the market for 5 - 7 days, the asset manager for the Bank will require the listing agent to solicit Highest and Best from all potential Buyers and will allow another 2 - 3 days for those offer to be re-submitted, then, the asset manager for any given reason can take another 2 - 3 days to accept one offer and reject the others.
In other words and to answer your question, the Seller can take up to 12 - 15 calendar days to respond to all offers from the day the property was listed.
I tended to look at "problem" sales, where the home was on the market for an extended period of time. You get better deals that way. It doesn't mean a bad location or poor workmanship. It just means a differing of taste. For example, a home that has fewer bedrooms but larger square footage per room tends to have a limited appeal to those folks with larger families. Perhaps, you can accept a backyard pool that is a bit irregular in shape or designed in a unique way for the previus owner. Again, those are the types of homes that are usually "problematic" and can get a better price.
In the final analysis, be firm, take control of the negotiation, and be willing to "walk away" if you receive any bit of resistence. Banks need to sell their properties; brokers need to earn their commissions. As long as you are not in a high pressure situation to buy, you are in control, and let the home sellers know it.
Ive closed a short sale with Chase in under 60 days.
If the house is in an appreciating market sometimes overpaying a little is a good idea.
Realtor - Coldwell Banker Tahoe City, CA
530 448 6633
By the way, please do not follow the advice of "lucky" Steve. He was just lucky or ended up buying something that nobody else was interested in. But if you are trying to get a nice house, move as fast as you can. Now, I am inclined to think your Realtor must have explained to you that you would do much better looking for conventional sales where FHA are accepted. The probability of buying a REO
with your type of loan is remote to say the least. REOs usually go to the cash buyer, they are the ones that get the deals. However, even paying a little bit more, your are still getting a good deal, since buying with FHA is another way of taking advantage of the market,
you are buying with only 3.5% down, and that in itself Is a great opportunity. Do not miss the boat!
If I were you I would move on to another property and keep this one as an alternative offer. From my experience, when you're not getting a timely response most likely they are looking elsewhere. You can contact me if you have any questions. Good luck!
The Keyes Company
The best offer is always a cash offer. Not a mortgage. Because there are no banks to worry about. Ironic, isn't it? Banks don't like dealing with other banks. The highest offer is self explanatory.
REOs are always multiple bid properties, and the listing usually states this. The selling agent's job is to play bidders off against one another, soliciting ever higher prices. The asking price on a good property is typically 15-20% below the original list price.
Some banks, such as the one you are dealing with, respond quickly to offers. Others banks may leave the bidding open for 30-60 days and then only respond to the highest and best bid, leaving the other bidders hanging.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions
If you need anything else, feel free to contact me.