Home Buying in 48335>Question Details

Ryan Her, Home Buyer in 48335

A 10-day HOLD on my offer?

Asked by Ryan Her, 48335 Mon Mar 15, 2010

I submitted an offer for this REO property and was expecting a response. It was an one-day multiple offer situation where the l.a. told everyone to submit the offer by 5pm on the day of the listing. Today, the listing details were updated to state that "THERE IS A 10 DAY HOLD (FROM LIST DATE) ON ALL OFFERS. " What does this mean? Does it mean that they are accepting more offers? or Are they just saying that they can't get back to anybody for 10 days since they don't know how quickly the bank will make the decision?

I know this property was very hot (I went there to take another look in the evening after the offer deadline and there were multiple parties checking it out). But, doesn't multiple offer by a deadline means everybody submits the best offer by certain time,then the seller(bank in this case) decides which offer to take? I am wondering if I should make a better offer if they are still accepting offers during that 10-day period although I did bid more than the asking price

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Answers

6
In our area, Albuquerque, it is common for REO to be listed with the proviso that bids will be opened 10 days after listing.
0 votes Thank Flag Link Tue May 15, 2012
Maureen's right - the best thing to do rather than ask a forum would be to contact the listing office directly and ask to amend your offer. You should be working with a qualified agent that can help you pull comps and determine if the value of the home is at or above your offer price. If you offer too much, the bank will reject your offer knowing that it will never appraise out and your loan will not go through. If you are paying cash, your offer is shot right to the top of the list. Banks will often take lower cash offers over higher finance offers in these situations due to the fact that cash is guaranteed. The worse thing you could do is blindly raise your offer without knowing the actual value of the home in the current market.

Good luck.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Tue Mar 16, 2010
Hi Ryan,

Unfortunately, the bank is going to do what the bank is going to do, when they want to do it. You, your agent and neither the listing agent have much (if any) power over the situation and there decision. One of the huge drawbacks to getting one of those "great bank deals," no doubt. If they want to accept more offers, they can, If they want to take one lower than your's, they can. If they want to scrap all of them and atart over without notifying anyone, they can. I've seen all of the above happen recently. It stinks, but it's true--just one of the pleasures of dealing w/ a corporate entity that really shouldn't be in the home selling market anyway. In the meantime I'd keep looking, and not lose out on any other possible opportunities. If the property is that hot, a cash offer very well may have been made which could trump all mortgage offers. Good luck!

Jay M. Jones, Realtor
Max Broock, Birmingham
Web Reference: http://www.MyRealtorJay.com
0 votes Thank Flag Link Tue Mar 16, 2010
When there is a hold, normally a 3 day hold but some do opt for 10 day holds means they will not answer any offers for 10 days. Usually no offers can be submitted by the broker until that 10th day. When there are multiplke offers teh bank usually will come bakc and ask for teh highest and best offers and then may even ask one mor etime if offers are still coming in with higher prices and better terms. With multiple offers you will want to have a good price but alos eliminate contingincies and close within 30 days of acceptance.c
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Mar 16, 2010
Ryan,

We've seen REO's go significantly over asking price. Banks are listing low and selling high, creating an auction like situation now.

Nobody here can tell you with any certainty what is going on during this 10 day period. Have your agent ask the listing agent. If you did not put your best foot forward the first time, you can ask if you can amend your offer if you want to. Not sure if they will let you at this point though. There are very few set rules with bank owned homes.
0 votes Thank Flag Link Tue Mar 16, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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I suspect it will take the bank some time to review all the offers to determine which makes the most sense for them.

Why not call the listing agent to find out?
0 votes Thank Flag Link Tue Mar 16, 2010
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