Foreclosure in Kenosha>Question Details

ms.versace, Home Buyer in Wisconsin

How long should it take to hear back on an offer?

Asked by ms.versace, Wisconsin Tue Feb 12, 2013

I have recently (Sun) bid on a home that is REO and is held by a realty agency and I found out that it has 2 other offers besides mine. How long does it take to hear back on if our offer is excepted? And since there are a few more bids is there a chance that they will counter with me? My realtor said that the home was priced high for the area and told me what the price should be and I went $7k under that. Also is there a way to know what bank has the home?
TIA

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HI,
A lot depends on the bank. If it's a local bank you will typically hear back faster then you would a national bank. Bank owned usually have a quicker turn around time then a Short sale listing as well.
If there are several offers, I am sure the bank will ask for best & highest. It does take some time for the bank to crunch the numbers. They usually have a base number they have to get and work from there.
I hope it goes well for you.
1 vote Thank Flag Link Tue Feb 12, 2013
Banks usually get appraisals on their homes and price at or below that, so offering below listed price on a bank owned home is risky. Being that there are other offers makes it more likely yours will be low.

What will most likely happen next, and it can take 3-5 work days (banks don't function on weekends) is that you will get a request for Highest and Best offer. This means the bank is rejecting all offers and saying to everyone to come back with your best offer and they will pick one. Unless there is someone that came in above listed price, and has no objectable terms in their offer, the bank will usually ask for highest and best. If someone came in over list, they might get the approval. You should hear something in a few days, banks are slow.
1 vote Thank Flag Link Tue Feb 12, 2013
There really is not a "typical" response time.Hang in there,and hopefully you will get a chance at the home.Being that there are 2 other offers,I am assuming it will not be long for the bank to respond.The more offers submitted,the more complicated it gets,sometimes the bank will respond quickly not to create such a problem...Good Luck!
0 votes Thank Flag Link Tue Feb 12, 2013
REO's are a whole different animal. The banks that are in charge of these properties typically only work on these offers at a set time each week, so regardless of the date that you set as the deadline, they will get back to you when they are ready. It can be frustrating as a buyer, but it is the norm. A good rule of thumb I tell my investors is to wait at least a week, and if it is a purchase with the HUD homes store, there is a 10 day period that "occupant investors" can make offers before investors can. Be sure to ask your agent about the differences and which you will be dealing with.

The way to find out if a bank has a home is to go to your county assessor website and do a property search on the address. It will list the owner of the property somewhere on that page. Best wishes.
0 votes Thank Flag Link Tue Feb 12, 2013
and typically if there are more than one offer on the property, the bank may come and ask you to give your best and final offer.. again, talk to your agent who will have the answers to all your questions.. Mini
0 votes Thank Flag Link Tue Feb 12, 2013
Talk to your realtor and she should be able to answer these questions for you.
0 votes Thank Flag Link Tue Feb 12, 2013
REO's can be challenging as there are a lot of stakeholders that have to agree, so it can and usually does take longer than a non REO transaction. Two weeks is about normal but I've seen ones take even longer. Your buyer's agent should be able to find out from the seller's agent which bank has the property. The banks typically ask for "highest and best" offer when there are multiple offers. If your REALTOR gave you a fair market price and you went $7K under that, then the bank may view your offer a low ball offer and simply sit on your offer waiting on a better one. Best of luck, as sometimes with REO, that's what it takes.
0 votes Thank Flag Link Tue Feb 12, 2013
You have a Realtor.
You are not listening to your Realtor!
Why would you listen to strangers?
0 votes Thank Flag Link Tue Feb 12, 2013
I listened to my realtor! She said the home is to high and it should be max at $xx and I asked what I should offer and she told me and it was $7k lower and right in line with the homes in that area. She told me the homes on each side were higher and lower then what I was offering. One was only $1k higher then my offer and the other was $5k under what I offered. So what did I do wrong exactly??
Flag Tue Feb 12, 2013
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