Good Morning!! Many lenders have an automated price reduction schedule on bank owned properties. The only recourse you would have is to withdraw your offer and resubmit a lower offer. The banks are trying to find a price that will stimulate multiple offers so that they get the highest and best possible price for the property. The best way to determine the price to offer on a home is the comparable sales for the area. Your buyers agent should have provided you with this information prior to making your offer. This is what the bank expects the property to sell for.
I hope this helps!!
Karen Paytas, GRI, CMS
Real Living Kee Realty
This is Michigan. I would not take advise from someone out of state. Do you trust your buyers agent? They should be looking out for your best interest & not the bank which is the seller in this case. I would not deal with the listing agent. Once you have submitted an offer, you really can't withdraw it. It is valid till your offer expiration date. Your offer is probably good. I would let it ride. In this area, the selling price for bank owned is usually higher than list price. I don't know everything about this offer, if I didn't I'd be able to tell you more & be more precise. This is my best guess.
This price reduction may have been in the works just waiting for an approval at the bank based on a recent BPO (broker price opinion) being done. This happens. The good news is that your offer looks even better now and this may increase your chances of getting your offer accepted. If you feel that you are offering too much then cancel your offer and resubmit.
All the best,
My suggestion is to talk with your agent about it - ask her to reach out to the listing agent for input. Depending on what you learn, you may decide to sit tight, or withdraw and resubmit a lower offer.
Unwavering Commitment to Service
That does seem strange. Yes the bank does allow for price decreases ever so often but that should not have happened when there was some offers on the table.Was there a date listed that the offers had to be in by? Are they still taking offers? Usually a good bank own home will sell for higher than the asking price. I'm not sure if they lowered it to get more offers or if it was a mistake & someone in the office automatically lowered it without checking to see if there were good offers. Have your agent find out. Has the bank made any decision about the offers they have & is the period for bringing more offers closed? Your buyers agent needs to work with the listing agent to resolve these issues & get answers. They may still come back & say " put in your highest & best"
I hope this helps. I've been the buyers agent for a lot of offers.
E-Pro & SFR Certified Realtor
Keller Williams Troy
Please see my blog with tips and advice on buying bank owned homes