YES! Highest and Best Offer should be the response from the bank when more than one offer comes in. Of course they want as much for the property as they can get and it is good business practice for any seller. If you think it is a good buy , then it's likely someone else will think so too. If sales are brisk in your area then it would be more common. I had this happen to me last year in a community where sales were NOT brisk. My client didn't up their offer - they kept it the same and resubmitted it - thinking the other buyer was lower than them since their offer was close to the asking price. The other buyer got the property and my buyers were kicking themselves for not going higher. If you really feel this is the home for you, then you should submit your BEST offer and know that you gave it your best shot. ( This should save you a few self inflicted bruises.) Get a market analysis first of everything that has SOLD including closing costs, consult with your lender and agent, then proceed from there. Know what you can afford, don't overpay for the market, and be prepared to lose a few when searching for that awesome deal. Best of Luck!

Find out what the home was originally listed for, how long it has been on the market, and listen to your agent's advise and then make your own decision. Your agent can also find out if other offers are currently on the table or not. It is quite common lately for a REO home to be listed at fair market value and then reduced a little at a time until it reaches the point of being "A good deal" and at the time everybody and their brother wants to submit an offer. Then the listing agent slowly draws out the process collecting as many offers as possible, and in this scenario it is quite common for the final price to be higher than the current list price. Looking for a REO home can be a long drawn out process just to be outbid by someone else doing the same thing.

you have a buyers agent and he wants you the buyer to pay more. Could this be because he gets paid more when the price goes up?

Can the home be rented for around $3000 per month?

If it can only be rented for $1500 per month then it is only worth $150000.

100 x monthly rent isthe top dollar you should be paying for a home.

As many are finding they are not able to sell their home and rent will not begin to cover all expenses.

Walk away from any property that involves bidding as you will surely not get a great deal.

You must get a great deal in what is quickly becoming a third world nation.

Keep in mind that the banks and asset companies determine a listing price based on information provided by local agents. This is usually in the form of a bpo (broker's price opinion). I have seen agents give very low opinions of value on properties just to make a quick sale and have seen bpos done by inexperienced agents that were terrible.If your market is not driven by foreclosures,you should not use all foreclosure comps. If a foreclosure recieves multiple offers in the first day or so it is on the market, I believe it has a bad price on it. What is wrong with testing a good price and letting the market dictate what it will sell for. These bad prices continue to bring the values down for people who are making their mortgage payment.

Sheri,

There are hot spots throughout the metropolitan Atlanta area where sales are still robust. It is common for offers to come in well above the list price. HUD-owned homes, for example, often receive offers above list if the property is in good condition and located in an area known for a higher quality of life (good schools, desirable shopping options, etc.). Further, my clients have come in at full price on foreclosure properties and still not win the bid. Your agent is likely spot on.

Solomon Greene
REALTOR® / Consultant - Keller Williams Realty Atlanta Partners

Banks have been listing under market to create more interest. This way they almost create a auction enviornment. Creating multiple offers and accepting the highest and best offer. It is best to give your top dollar. I have tried to out fox the process and it has not worked. If you want the property bid accordingly otherwise you can play your stategy.

Good luck


Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin

generally with a bank owned foreclosure, if the bank receives more than one offer on a property, they will ask for highest and best from all buyers involved - this is not the case 100% of the time - but is fairly common (and really it only makes sense, right?)

I certainly wouldn't let it prevent you from writing an offer...

Best of luck!

-Josh