Home Buying in Byron Center>Question Details

Thaz, Home Buyer in Byron Center, MI

I put in a cash offer for 75,000, listing agent is saying he has offer for 110.000 and will have preapv. letter shortly. Do i stand a chance?

Asked by Thaz, Byron Center, MI Mon Jan 10, 2011

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If the property is only worth $75,000 and the buyer is trying to get financing to back his offer, it could very possibly fall through. Banks make sure to do an appraisal on homes they are lending for to ensure that they are not setting themselves up for another short-sale of foreclosure in the future. If you are not willing to offer more than $75,000 cash, just sit back and see if the deal falls through. Then the question is whether or not the seller will accept a $75,000 offer after having a $110,000 offer. Good luck!
0 votes Thank Flag Link Mon Feb 14, 2011
Virtual answer will not benefit you. Have your buyers agent review all the particulars with you. You can submit any offer you like determine if the bank will accept or reject

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0 votes Thank Flag Link Tue Jan 11, 2011
What was the list price? If a buyer overbids with financing, there is a risk that it won't appraise. Realtors and Lenders BPO properies and have appraisals completed, to determine list price. If you $75,000 is with a couple thousand dollars of list, you have a chance. If you are 10%, or more below list, I wouldn't count your chickens. When I list REO properties in California, I tend to get list, or better. Most of the buyers are Cash buyers. Obviously your market is not California. I suggest calling the agent and bumping up your offer, before the other buyer gets his, or her pre-approval. Write your offer to close on or before 01/28/11.

Best of Luck!
0 votes Thank Flag Link Tue Jan 11, 2011
Really depends on the seller accepting the $110,000 offer. I have had multiple offers that were lower get accepted due to conditions in the purchase agreement. In addition, you will have to consider if the other buyer can go through with the purchase. As mentioned before, will the home appraise at $110,000? If not the lender will not fund it and you could still be able to purchase. For several reasons, I would recommend in this case that you use a buyer's agent and submit a formal offer even if you think you have no chance of getting it. Sometimes it works out.
0 votes Thank Flag Link Mon Jan 10, 2011
Since none of us are directly involved in the transaction, there is no simple answer; are you aware of comps, recently sold similar properties in the immediate area, if so, what does the data suggset as to a fair offer ...do you have your own agent, if so, what is he/she advising...if working with the listing agent and feel you are being treated unfairly, contact the broker owner and or office manager of the realty company and express your concerns--do keep in mind that most sellers usually accept the best offer with the best terms, no matter cash or loan, as in the end they get paid.
0 votes Thank Flag Link Mon Jan 10, 2011
Depends on the homes value, also without a pre approval he doesn't have a legit offer yet.
0 votes Thank Flag Link Mon Jan 10, 2011
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