Home Buying in 93312>Question Details

montrez, Renter in 30907

I made an offer on a foreclosure and another offer was accepted. I later learned that the accepted offer was less than mine. How could that be?

Asked by montrez, 30907 Sun Oct 21, 2012

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Your agent went into great detail explaining how the bank or investor will evaluate an offer.
Why are you second guessing your agent?
As others have said. price, is only one component of a purchase offer. If you are a financed buyer, especially with FHA/VA, you must engage during the early window or you can not win.
Your success will depend on a responsive relationship and the trust existing between you and your agent. Second guessing your agent on a aggregate real estate website suggests there is "trouble in the kingdom."
"How can that be?" Because EVERYONE who has successfully bought or sold a bank owned piece of real estate has revealed these are the facts. Those who operate in defiance of this reality ask "How could this be?"

Follow the guidance of the professionals with whom you are working. Without such an adjustment in your thinking, you WILL find yourself chasing prices upward and never making a purchase. You need to come in strong, without contingencies, then you are actaully in the race.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group

First Look: http://youtu.be/PumYpkgybXE
1 vote Thank Flag Link Mon Oct 22, 2012
Wow, you sound defensive. Are you Montrez's agent? And why should any buyer trust their agent implicitly? I've known my agent for 25 years and love her. I have bought and sold 3 homes using her as my agent. But-- she is in "the business", and the business is making money. Agents do look out for their clients. But they have more than one client at a time. Things happen, opportunities get missed. Sure, I trust my agent, in a general sense, but the only person truly looking out for me is me. Trust has to be earned. My agent has earned my trust (and about $45,000 in commission by being my agent). I'm sure she probably earned every cent. But where money is concerned, it is best to always be on your guard even with an agent you trust. Agents and brokers are people and people make mistakes. So I don't think looking out for oneself means a lack of trust with your agent.
Flag Fri Apr 19, 2013
There are many other factors in dealing with REO's that need to be considered when makng an offer. Each asset is handled differently depending on which bank or asset management company is used to manage the asset. It's important to make sure the Real Estate professional you are using is aware of these differences and can adequately prepare you on to what would be the best possible offer for each situation. Just assuming you had the highest offer based on price is not taking into account the the other factors used in the offer analysis by the management companies.
1 vote Thank Flag Link Mon Oct 22, 2012
Hi Montrez

Banks look at Offer price as well as down payment, a bank may always go with an
Offer that has no contingencies, such as loan, inspection, appraisal.

So a higher offer with a low down payment and an appraisal contingency
Does not help you.

Good luck.

0 votes Thank Flag Link Sat May 4, 2013
The banks are still controlling the market. Low inventory and bids taken on the REO property is a sure sign that another bubble could be coming. Dont fall into the trap of the rising prices catch you off guard. Let the market take care of itself. If we Buyers sit tight and let the correction really happen then maybe the market will adjust itself like it should.
another buyer
0 votes Thank Flag Link Sat May 4, 2013
Hi NOt knowing the circumstance, The previous offer could have been cash, or bigger downpayment. And there could have been a second mortgage and they were requesting a contribution fr the second. They should have given you a counter to see if you could either match the offer or you could have gone higher. Sometime if the price of the property is in the 200,000 and lower, the buyer agent might want to double end the deal, bringing in there own client. Because the commission is low and they dont make alot of money, for all the work Us Realtors have to do. So there are varilables, so its important for you to learn as we all do in this business. So its very important to get a realtor who is looking out for your best interest and know what is happening on the other end. I hope this help you in the future and that you do find a great home. It takes alot of time and a wonderful learning experience, if you let it be. Diane
0 votes Thank Flag Link Sun Oct 21, 2012
If you are an FHA buyer, a "better" offer could either be a conventional buyer (meaning they are using a conventional loan) or a cash offer.
It could also mean that the other offer was not asking for any incentives i.e.: home warranty, closing costs, repairs, etc.

If you have the address, I can look it up and let you know what type of financing the buyer had --- the escrow on the property must be closed in order to see.

Good luck in finding your home,
0 votes Thank Flag Link Sun Oct 21, 2012
there's more to an offer, a "better" offer, than just the purchase price/number

maybe the other offer was all cash - that could make a huge idfference to the bank..........or offered a faster closing date..........or had no contingencies.....
0 votes Thank Flag Link Sun Oct 21, 2012
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