First ask you Realtor for a Comparatible Market Analysis of recent sold homes in this subdivision. Then submit an offer you are comfortable with. FYI, seller/lender's don't always take the highest bid.

Elvis (love the avatar BTW!) - I don't want to get into a COE interpretation argument. Article 16 states, "REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients."

In my opinion, answering specific questions about specific properties is an "action inconsistent with exclusive representation".

My opinion could be technically incorrect, I do tend to err on the side of caution.

Solicited or not, I think it's wrong to offer advice on a specific property to another agent's client. If it's not a specific NAR COE violation, it's a Jay Thompson COE violation.

Others mileage may vary. That doesn't make others better or worse than me, just different.

I didn't mean to derail Marty's thread. The bottom line (again in my opinion) is that Marty needs to be having these discussions with his agent, not random figures on an internet message board (myself included). If he/she isn't comfortable approaching their agent with such questions, or doesn't trust the agent's answers well..... then it could be time to find a new agent.

Todd wrote: "In my experience as an investor buying and selling homes in Orlando..."

This home is in Mesa, AZ, not Orlando. And in Mesa, AZ multiple offers (particularly on REO homes) is not uncommon.

You're right in that often a *listing* agent will say "we have multiple offers" (when in fact they don't). In the case of Marty, it's his *buyers* agent saying that (by way I assume of the listing agent). Telling Marty to tell his own agent to call him back doesn't make sense.

And a listing agent on an REO property is far less likely to pull the "we've got multiple offers" card than on an individually owned property. (Most REO listers won't risk losing the bank as a client by pulling stunts).

If Marty has a good agent, then that agent should easily be able to handle a multiple offer situation.

In my experience as an investor buying and selling homes in Orlando, most Realtors are making that up. Whenever you realtor says they have other offers, right away, tell them that you are not interested.

Then say this, "Please call me back when the other offers have fallen through." That will show how sure of their supposed other offers they have.

There are too many desperate sellers and not many buyers for you to put up with that crap from a Realtor. If buy chance it is true, then you probably would not have had the best offer anyway.

You're both wise and ethical, Jay. Clearly you don't belong here. :-)

Marty,
Usually depending on the bank they will either take all the offers and simply take the highest or they will ask all interested parties to resubmit their highest and best offer and then choose the highest. You need to offer with whatever you are comfortable paying for the home. If you are working with an agent ask them for a market analysis of the home and what the market value is for that home in that area.

Personally, my interpretation of the Realtor Code of Ethics prevents me from giving the client of another agent advice (Article 16). I don't *know* if the questioner has an exclusive representation agreement with their existing agent, but when someone includes "my realtor says..." in their question, I have to assume they have an agency relationship. (And notice, no one even asked if this was the case...)

So my only advice to Marty is, talk to your agent.

Wondering how many "thumbs down" this one will get...

Whenever I have a client competing with other offers my advice is:

Come to the table with your best and final offer.

Don't risk loosing it b/c you are trying to use paranormal skills to figure out the other offers. Bid on it like you want to own it.

Elvis gave you good advice.

Susan Walker

What you should ask yourself is what do I want to pay for this home? Regardless if there is any other offers or not. Submit an offer for the price you are comfortable paying, have a high earnest amout (this could help you stand out over similar offers), 30 day close of escrow is enough. If you offer to close in 7 - 14 days, that will make no difference to the bank since the bank will more than likely never have the contract signed, as well as the deed prepaired and signed for the title company in that amount of time.

Depending on the competence of the REO listing agent you are dealing with, you should have an answer within 3 business days. Most cases I have had an answer with 2.

My most recent REO transaction was a 45 day close and 3 days prior to COE, the title company still didn't have the seller signed contract as well as the deed ordered and signed by the seller.

Another tip you could use is, submit your offer with a cover letter explaining why your offer is what it is. Explain the condition of the house in detail, identify some comparable homes and if you are planning on occupying the home as your primary residence mention it(this will out way most investor offers similar in price).

Remeber, the seller has most likely never seen the property. They rely on BPOs, (broker price opinions) to determine the condition and value. Also, bankers are analytical people, the more information you can provide them the better.

Good luck!

Determine what the curent market value is for that house. Ask your realtor for a CMA for homes that are similar in size (+ or - 200 sq ft) and only look back 3 months for sales. If it is priced well below market (a strategy some sellers are using on foreclosure and preforeclosure short sale properties) then you may need to offer more than asking price to be the successful buyer. A quick and easy way to see recent sales of surrounding homes is at zillow or cyberhomes dot com . The fact that they are 3 other offers on the table may indicate it is priced well below market. The faster closing date you can offer, the higher earnest deposit, and full lender approval, the better, too. And... make sure your offer is "as is".

Patrick is correct in all acounts. Banks should respond within 3-5 days, assuming it has truly made it through the foreclosure process and is now lender owned. Short sales are a different story all together.

With that said. here is what we recently did on a lender owned. We made our best offer first. The bank came back because there were multiple offers and said "give us your highest and best". We thought about going higher, but held at our original offer. We got the property. My advice. Make the offer you want to make and do not move from it, unless you are coming in very low and fishing for a deal.

When I work with cash buyers, I do not put much emphasis on the cash part, as the seller will get the cash in the end, even on a financed deal. What we do though is make it a fast close, say in 7-15 days. This is what the seller will find appealing.

Marty,
There are three other offers on the home? It might be priced to sell?
If you have been looking for some time , and this is a good deal buy it. Put your best offer on the table and that`s it.
Especially if you are in the affordability range.
Worst thing to happen is you will get a multiple counter offer.
I am sure you and your Realtor know a good deal. With the home already being an REO, you really should have an answer in 5 to 10 business days. As far as all cash? Yes all cash will get you some extra attention, however over 20% down with a good loan , and an extra 5K to the banks bottom line will prevail.
Be very careful and read that 7 Day Bank addendum. If you are financing this home, you better be able to close, or you will loose your escrow.
Good Luck

There are a lot of REO homes (bank owned homes) here in Mesa and the Bank will look at all offers and many times will take up to 6-8 weeks to get you a full approval. In the meantime- they are actively looking for more offers and will take the top offer that makes sense. As John mentioned if you offer a CASH offer it will normally outweight any offer where seller costs are involved. The process can take some time and there are no guarantees that you will be the successful buyer so listen to your Realtor.
Also know that you will be buying the home in AS-IS condition and the bank will make no repairs or offer any type of incentive to get the home sold.
Good luck

Marty,

Depending on how far it is along in the foreclosure process, and the bank owning it, you may want to start low, advising your realtor just how high you wish to go, and no higher. The bank will determine which offer is the most viable and even if it accepts the highest offer, it does not mean the deal will go through, or the second or third offer. If you offer "cash", the bank may just want to bail on it and accept, depending how much of a loss it will take.
LISTEN TO YOUR REALTOR!
Good luck
John Jelinski
Crossroads Realty
609-713-3454
johnjelinski_7@msn.com