Never sign an open ended contract - to protect your interests you need to put on a time limit. Now, I have heard that it takes weeks for the banks sometimes. My strategy would be to let the contract lapse, but say if they want to respond down the road they are welcome to it.

worst case with the 50%, they respond with a counteroffer. The odds are they would reject the 50%.

There is no well defined market in Toledo right now - it is frozen. My rule of thumb is that if a house is on the market for 90 days and has not sold - by definition it is overpriced. Who knows what a house is worth in this environment?

Lisa & Chris,
In my experience, I have seen the bank take anywhere from 3 to 5 days to make a decision. But, count on at least 48hours from the time of submission by the listing agent. When your agent submits your offer, have him/her check with the listing agent as to when they will submit the offer(s) to the bank and how many offers they have. Usually, when the property has been on the market for a while, you just may be able to snag it for the price your were thinking of.
Note: Even if another buyer offers at a higher price than yours, remember the bank also looks at whether the buyers require a loan or are paying all cash. The type of loan, whether it be FHA, VA or Conventional and the amount of the down payment. (Some properties may not meet FHA/VA guidelines/standards)

You always need to limit the offer. It varies from lender to lender, and really they do things and answer whenever they feel like it. 50% would be a joke offer for most homes in Northeast Florida. Most foreclosure homes are selling for 95%-105% of the list price. Don't be suprised if you loose it or they just reject the offer!

Definitely limit the offer. I always tell my buyers expect a longer turn around time from a bank, and usually 48 hours.

Christina Asad Edwards, Realtor
Christina.Asad@RealLiving.com
Office 937-573-0082
Cell/Text 937-205-4741 http://www.DaytonOhioHouse.com

Lisa,

Unfortunately, there is no set timetable for getting responses from banks. They have their plates very full right now with the flood of foreclosures and short sales. My experience is that you will be lucky to have a response within a few weeks. I would expect it to take longer than that. Sometimes it can take months to get a response, so you need to be willing to be patient. I definitely would put a time limit on the offer, otherwise the bank could try to hold you to the contract (unlikely, but possible). Do you know what homes/foreclosures are going for in that area? It is always a good idea to do some homework before putting in an offer on a home. Do you have the paperwork for putting an offer together? I would be glad to assist you if you are not already working with an agent. If you are, they should be able to guide you and give advice. Having representation is very important to make sure that your interests are being looked out for. Feel free to contact me directly if you have more questions. I hope your Easter has been enjoyable!