I am Glad you're here! Often times when the banks offer these homes for less than the market price or even below the state equalized value they have already done the negotiating for you. Just like you know a good deal when you see one, so do thousands of other qualified buyers, so I do not doubt the multiple offer situation.
When advising my buyers in theses situations, I like to refer to this as a "no regrets" offer. If you can honestly look at the home and say its not worth more than 52,300-3% concession then you made the right choice.
But if you think you are going to outsmart the seller and you know the home is worth more you need to figure out what its worth and at what price it would still be considered a good deal for you. Whats the worst thing that could happen with a "no regrets" offer, you get to buy the home you want?
I have seen buyers offer 15-20k more than the asking price, because they know the home is worth it, and they have no regrets saving only 100k on the right home as opposed to losing it trying to save 130k. And you know what they bought the house but they were only a few hundred over the 2nd highest bidders price.
I hope this was some help to you, I am happy to answer questions for you at anytime.
The market just might have been different then.
Today, the citizen who is unwilling to COMPETE, pays the retail price.
Those who are best prepared, look for VALUE in undperprice or distressed property and they KNOW there are others looking at EXACTLY the same real estate and opportunity.
If you are believing yourself ready to compete understand:
1. you must be fast
3. offer with authority
Sorry, this is a highly competitive environment and there will be no hand holding.
Is there really another offer? Don't respond to the 'highest and best' and you can be sure someone else will make your choice for you. That will be the ONLY confirmation you will receive.
I don't make the rules. Those competing with you do. All the professionals can do is give you guidance regarding the consequences of the decisions or lack of decisions. And of course you will look for someone else to blame when you make bad decisions. And that someone else is always the agents involved.
Talk to those who ACTUALLY buy and sell dozens of homes every year. They will confirm the timid mouse never gets the house.
One poignant question you pose is "is there really another offer on the property?". In order for this not to be true, you would have to presume that the bank or Realtor is not telling the truth. This is a dangerous position for them to take should someone call on them to prove the statement. Although the public often asks this question, I do not believe a Realtor or a bank would perpetrate such a ruse with the down-side of potential serious sanctions or loss of a professional license.
If there are multiple bids - ask for the identity of the bidders. If they do not give - walk away. IT IS A SCAM. You will be bidding against yourself. Most likely, you have given your financial capacity to the broker so they know how high you will go.
THERE IS NO SUCH THING AS BUYERS BROKER!!!!!!!!!
We own nearly 300 homes nationwide, 78 in the Det. meto area. 6-12 months ago I could bid on a bank ownd porperty and be the only bidder who set the price. Not today!! Out of state and foreign investors have flooded the market. 14560 Piedmont went on the maket at 3:00AM for $10.3k, by 2:00 the next day there were 7 offers. Within 5 days there were 60 offers, highedt $47,000.
It's called Highest and Best. But, if you ask 10 agents/brokers you'll get 10 diffirent answers as to what that means. Highest is easy. Best is the problem, each bank has diffirent measures and exposure on each property. Mortgage vs. Cash, Concessions vs. As Is, Cross out vs no cross out, etc.
Highest and Best is not a scam, the bank has every right to get the highest offer for a property. In a bid sernario, highest and best gives all parties an opportunity to fine tune their respective offerbBecause
Brokers and agents can purchase properties themselves. How do you really know there are multiple offers? How do you know the bank even saw your offer? I"M WORKING ON IT!!!
Good luck to you. The Detroit market is changing. Inventories are down. Good properties are disappearing in 2-3 days. Make sure your first offer is your best. If you really want it go after it. Get the right agent/broker.
You are facing what other buyers and their agents are in this market. As you will see, the good homes are going quickly and and usually with multiple offers. Good luck!