An honest real estate pro.
It has been my experience on both sides of an REO transaction that if there are other offers on the table and if the property is priced well and is a match for your needs then you should offer more than the asking price. Recently being a listing agent of a short sale where i got 4 offers on it, the Bank i was dealing with told me not to "waste" my time or theirs with offers below the asking and needless to say they did take the higher one. One thing to keep in mind is that a REO transaction is a very , very long and tedious process some times taking 6 months or more to conclude. Communication between your Realtor and the listing agent/bank is paramount on this kind of transaction. Good luck!
As far as price, the asking price for a bank is usually at least 20% lower than what the property would appraise for as is in todays market, so you have equity to work with when you are bidding higher. How much you want to bid depends on how bad you want the property. Check what competing properties have sold for in the last 3 months. Good Luck.
First, make sure there are truly multiple offers, this information can be found out by your Realtor. If there are other offers, see if your Realtor can find out if they are "strong" offers or full price offers. Although you can not find out what the other offers are, they can find out some prevelent information. There may be numerous interested parties in the home, but at the end of the day, are there numerous offers?
If there are multiple offers on an REO, many times the bank will ask everyone for the "highest and best" offer. In this market I would advise offering within the comparative sales of the area. If you go too high, especially in this market, you run the risk of the home not appraising. In my last offer, we went $500 over asking price and asked for the bank to pay closing costs, we were up against other offers and we got the house...we settle on Tuesday!
Good luck on your purchase
Lisa Abrams The Abrams Group/ReMax Realty Services Washington DC Metro area 301-437-6742
That depends on three things... 1 How badly do you want this home? 2 Can you afford to offer more comfortably? 3 Will the property appraise to support the offer you are considering making?
If this is your "dream home" and if you were to miss out on it because you offered a couple thousand dollars less than it sold for, and if you can afford the higher offer; but most importantly, if it appears that the offer you make would be supported by market value, then you might want to.
Talk to your agent and ask them (if they haven't already) to do a CMA for the home you are interested in. Also, look at the counter offer you receive from the seller, if it does not disclose that this is a multiple offer situation than you are the only bidder and increasing your offer might not make sense.
Ask your agent to give the listing agent a call to see if there are any other offers on the home.
I hope this helps. Take care, help lots of people and have a wonderful day!
Tisza Major-Posner, Realtor, IVPG Realty, (909) 837-8922