Foreclosure in Tampa>Question Details

mmcfee, Home Buyer in Tampa, FL

Our last offer was within $20K of listing price and agent advised there have been a few other offers but bank has not accepted. Is this common?

Asked by mmcfee, Tampa, FL Wed Nov 6, 2013

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11
Yes, If you are coming in at 20k below list you will have a hard time getting an offer accepted.

Banks do their homework before they list REO homes. They price the homes right, and these days REO homes are not going for too much below list. In fact in some markets they can even go for more than list.

Kawain Payne, Realtor
1 vote Thank Flag Link Thu Jan 30, 2014
I have been doing REO listings and sales since the late 80's to date and can tell you that most banks have done a minimum of 4 BPO's (Broker Price Opinions) on the property in question as well as at least one official appraisal. All of these estimates of value take into consideration the condition of the home and reflect a value close to what they will most likely accept on a sale.

Fact is, most REO properties get multiple offers on them. Example: I had one I listed for $114,000 base on the fact that everything in the house was missing... no appliances, light fixtures, fans, plumbing, cabinets or mirrors and it was in an area that comparable homes sold for between $160,000 and $170,000. Within 5-days on the market I received 26 different offers on this home. It eventually sold for $130,000 cash to a person that was going to repair it and live in it.

Your agent needs to do a comparative market analysis on the property to see what the actual value is in its current condition and then you make a reasonable offer. In almost all cases these homes sell for between 3 to 5 percent above asking price or even more like my example above.
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Sincerely,
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Tom Scaglione, ePRO, SFR, REALTOR
Future Home Realty, Inc.
Cell: (813) 310-8200 ~ Fax: (813) 909-2915
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~ 2012 GTAR REALTOR® OF THE Year ~
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Certified Bank Owned Sales Specialist
Certified Short Sale Specialist
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Tom@RealEstateTom.com
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http://www.RealEstateTom.com
1 vote Thank Flag Link Fri Nov 8, 2013
Sometimes if the home is nice and in a good location you should bid the asking price in order to get it. yes this is common the bank probally took a hit on the loan that was given. so there trying to get as much possiable.
0 votes Thank Flag Link Thu Nov 21, 2013
Is the home you are referring to a bank owned home or a short sale?
0 votes Thank Flag Link Fri Nov 8, 2013
I give a lot of credit to those who deal exclusively in REO's. I couldn't do it! Banks are so hard to work with and the crush of people who believe foreclosures are such a great deal only makes the banks harder to deal with. Caveat Emptor....
0 votes Thank Flag Link Fri Nov 8, 2013
The Bank is under no obligation to accept any offers. They may chose to wait for one that is closer to their asking price or chose one offer to negotiate and counter. If the last route is taken, it may take several days to weeks to get all the paperwork signed an the home to be changed to pending. Each Bank is different.
0 votes Thank Flag Link Wed Nov 6, 2013
Mmcfee,
20K above or below? because if it was below I doubt that your offer will be considered, unless it was extremely overpriced to begin with. The real estate market has shifted long time ago, property values have increased and banks are expecting around 90% of fair market value for their properties, of course taking in consideration the condition of the property. If your agent believes that the property is overpriced then he needs to prove his case with comparable properties that have sold and subtracting any repairs needed that might not been taken into account when originally priced. If it was above asking price, then other things to consider is: did you have contingencies to the sale, were you asking for closing costs to be paid, are you using financing or public assistance, are you an investor or owner occupant... etc Good Luck!
Franches Schnell, REALTOR
Short Sale & Foreclosure Resource
813 784-2663
http://www.NiceHome4Sale.com
Realtor.Franches@live.com
0 votes Thank Flag Link Wed Nov 6, 2013
What's the list price? If it's $200k or less than $20k is a significant reduction. Also ask your agent to do a quick report of similar properties in the same price range over the past 6 months and you may be surprised to see that many sell to ALL CASH buyers "above" the list price. This is true for

If you're actually talking about a "short sale" it's a whole different animal. A multitude of things could be going on but if a Seller refuses to accept a reasonable offer within 2 weeks of being listed it automatically sends up a red flag that either the seller wants to drag out the process or their is a 3rd party insider who wants to buy it below market and they are trying to create the illusion that no one is willing to pay the market price.

Good luck!
0 votes Thank Flag Link Wed Nov 6, 2013
Very common. Some banks take 10+ working days to make a decision on multiple offers. In some cases, the bank does not accept ANY of the offers, which is highly irritating to all parties involved.

Best advice I can offer is to rely on and trust your agent (unless you have reason not to) and be patient when making offers on REO/bank-owned/foreclosed homes. Keeping your fingers crossed can't hurt either : )
0 votes Thank Flag Link Wed Nov 6, 2013
Yes.
If your offer is identical to the previous offers that were rejected, the listing agent may be instructed to kick your offer to the curb or if your offer differs materially, the listing agent can submit your offer and await the banks response.
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Be aware, just like ANY home listed for sale, the listed price is what the seller WILL accept. Anything other that list price allows either side to negotiate and manauever for advantage.
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Yes, it is common.
What is most amazing, the bank may, in two or three months (or weeks) reduce the price below your offer and sell it to whoever offers that list price. Don't take it personal, It's just the way it is.

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
Move to the Front of the Line (http://FirstLookHomes.com)
0 votes Thank Flag Link Wed Nov 6, 2013
I assume when you say within $20k you mean $20k below list and this is a short sale or is it a foreclosure? For both short sale and REO (foreclosure) homes, it is common for listings to have multiple offers due to the limited inventory of homes. Speak with your agent about the sales comps and find a reasonable amount to offer. Don't have an agent, get one, preferably a Realtor with the ABR designating and SFR certification.
0 votes Thank Flag Link Wed Nov 6, 2013
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