We had our agent contact the listing agent, and he supposedly unaware of the price reduction in the listing.
I should also add that the price reduction occurred not more than two days after de-winterizing of the home for an inspection caused a pipe to break and cause damage to the home. We have yet to get specific answers on the extent of the damages due to the water - the bank has taken over two weeks to get repairs started. It's all sounding a little shady to us, and we are looking at new homes and formulating a plan to retrieve our earnest money, should it come down to it.
Thanks for all of the help here. I will let you all know how it turns out.
I certainly would go back to them and rattle their cage a bit to see if they will lower their price - do it quick before new buyers come in.
The challenge with making threats is that the negotiator you're dealing with most likely has no stake in the home's sale and this is just pushing paper for them.
For many of these low-level bank folk, pushing a buyer around is a pure power trip. Until you get to someone with a real title, they generally don't care what price they get for the home - they get paid if it sells or not.
It's not pleasant, in that they are making you think you overpaid (are overpaying) but then much of what the banks are doing today is not pleasant.
I hope that helps.
This just happened to my buyer and myself last month. The bank lowered the price 15k 3 days after we were in mutual acceptance. I was HOT! I handled it by doing an addendum to the contract for the new price. The bank refused to take it, they got 2 more offers to go in back up position in case my buyer didn't close. My buyer finally agreed to pay the original price we were in contract for. The property failed inspections and then he backed out since the well would take 4k-5k to repair. The bank then offered him the lower price they had done a drop for. He didn't take it and moved on.
All in all, what I figure is going on is...the bank doesn't have to follow our MLS rules, they have their own set of rules. The listing agent wouldn't ever admit it, but, I'm certain the bank did the price drop to create a bidding war or draw other offers.
This is very interesting! Did you make an offer with the listing agent? Do you have a buyer's agent? If you do have a buyer's agent, which is highly recommended, did they tell you the fair price was the MLS Price? Did they give you a fair market analysis to provide you with the suggested price, or did they just go off the list price? I'm sure you can get an agent on here (Trulia) to give you a fair market suggested price, if you contact an agent directly and provide the property address.
I hope this helps.
I have spoken with Agents that specifically sell Bank owned homes. Some of the time, the Banks have changed the price to higher after they have approved price for listing and have an offer in for full asking price.''
We also had a case in our office where the bank accepted the offer for a buyer, they were less than a week before closing and the bank sold the house on the Auction steps.
Sometimes, these transactions can go sideways, beyond our control.
I wish you the best,
My client found it on the internet. Tell me I felt stupid when he brought it to my attention. Once the well failed inspections, the listing agent begged me to re-send the addendum with the price drop. Assuring me the bank would sign it.
By that point my client was so irritated with the whole process I almost didn't want to deal with bank owned sales again. Long behold we did find one and closed last Monday. Washington Federal by far is the easiest to deal with and plays no games.
I do believe the banks do the price drops intentionally, that's just my opinion though. Or else, it's the listing agent not knowing what is going on because they have an assistant not informing them as they enter price drops in the mls.
Since this has happened several times (see comments below) it appears to be an intentional strategy. The challenge we have is looking for some buyer-positive counter to this while scratching our heads speculating as to "why"....
We would recommend that you process this with your agent and persue the lower of the two prices.
This is trending on legal advice, but if you're at mutual acceptance you have no unilateral right to get out of or amend the contract. You would need some out in the contract (financing, inspection, etc.). You would need to see an attorney to determine if you had such an out, or other method to amend the contract. Please note, however, that the inspection clauses of most bank contracts are not as buyer friendly as the standard NWMLS (or statewide form) clause, and the bank probably has terms in their addendum that make their clause control.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors