Home Buying in 46304>Question Details

Alan, Home Buyer in 46304

We made a full price offer on a bank owned house. We were first in line AND we gave earnest money. Our

Asked by Alan, 46304 Mon Nov 10, 2008

offer was rejected. How is that possible? If this is legal, how does a buyer know what to offer?

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It doesnt matter if you are first or last. what matters to the banks is terms and then price. they want their offers with no contingincies, they want to see it closed within 30 days. a cash offer lower than your offer would be accepted over yours if you have any contingincies. Some things you should note are do your inspections prior to bidding, teh bank does not want to see an home inspection contingincy, the house is sold as is and they will not negotiate the price again after accepting a price for the house. do not change anything on teh bank addendums and make sure you submit your preapproval with your offer. be ready to close within 30 days and dont ask teh bank to fix anything. You should consider hiring a buyer broker who is experienced in foreclosures and can assist you through the buying process and with similar houses. In most cases you can negotiate your contract so it does not costs you anything extra as teh buyer broker gets paid their commission through the fee offered in MLs by the listing broker and paid at closing. This way you will have someone to look out for you. Good Luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Nov 10, 2008
I am in agreement with the other agents. You need to figure out what the property is worth to you, and offer that amount. There is no line for you to be first in. You either have the offer that they want or you don't.

I'm guessing you don't have a Realtor to help you with the offer or your resulting questions?

Jeff Poleet
Crye-Leike Realtors
Web Reference: http://jeffpoleet.com
0 votes Thank Flag Link Mon Nov 10, 2008
Hello again Alan - Multiple offers are more common than you think - especially on homes priced to sell.
An experienced Real Estate Broker who has successfully closed on Bank owned properties knows how to word them for serious consideration.
Give us a call @ 219-405-1232.IF you are not currently represented by another REALTOR. These homes often have multiple bids because of their low pricing and you need to keep in mind a strategy for dealing with that possiblity when writing up the offer.
Jeff & Grace Safrin
F.C.Tucker Advantage Realty - serving NW Indiana
0 votes Thank Flag Link Mon Nov 10, 2008
A Seller - an individual, a bank or otherwise - can reject any offer for any reason.

That you sent in a full-priced offer with earnest money doesn't compel the Seller to accept your offer. There may have been other terms in your offer that they didn't like (closing costs, closing date, inspection time periods, etc.), or there may have been another offer above the listing price...or a combination of those things.

It's not always about the offering price. A cash offer for a little below list price which is closing in 7 days with no inspections looks much better than an offer at full price with all sorts of mortgage, inspection or closing cost contingencies.

How do you know what to offer? Offer what you think the property is worth. If they don't accept your offer, consider raising your offering price...to a point. Your best bet is to listen to your REALTOR® and make your offers based upon the current value of the property in today's market.

Ultimately, no matter what you do, you might still not get the property. Until you present terms and conditions acceptable to the Seller and they accept your offer, you have no way to control the outcome.
0 votes Thank Flag Link Mon Nov 10, 2008
I believe you had a similar problem a week or so ago? I am seeing an uptick in activity and bank owned properties are becoming an attractive option to buyers who think they are going to "steal" a deal (and in many cases they can). However as you have found out, the bank, like any other property owner is out to get as much of their money back as they can, so when multiple offers on the same property come in, they are going to go with the one most beneficial to them. Your agent should be able to give you a realistic price for the property you are interested in and you may have to go higher than what its listed for in order to win it.
Good Luck on your search and if you dont have a buyer agent representing you, I would find one pronto!
0 votes Thank Flag Link Mon Nov 10, 2008

We are sorry about your disappointing experience.....

Although it's difficult to say what actually happened, it sounds like the lender was entertaining multiple offers and someone came in with an offer that was more than the asking price. This is something that buyers often do when the property is the right opportunity at the right price.

This does seem unfair....but the country has never seen this volume of short sales and foreclosures before and too ofete find themcelves on an uncharted course. We hope the future will clear the way for smoother sailing but for now things are as they are.....unclear, confusing, unfair, frustrating.....

For this we are sorry!

Good luck with your next attempt.
0 votes Thank Flag Link Mon Nov 10, 2008
Banks are a different breed, they like all sellers can do what they want. Some of the banks I work with tend to underprice their properties and this creates a bidding war of sorts. And like yourself many agents get a little unset when their full price offer is rejected. You have to realize as a realtor where your loyality lies and when you see a property that looks underpriced or you know it is underpriced then you will need to over bid. I have sold several properties for 20% above the asking price, so keep in mind and teach your clients how things sometimes work today. Some agents get pretty busy with the reo business and don't have time to follow up and sometimes let you know their are multiple offers on the property. In NC it's a material fact, multiple offers, so I always email all agents that have showed the property and add it to the MLS sheet once i receive any offers. Of course the bank usually waits a few days or maybe even week after the first offer to try to get the best or most for their property.
gary mitchell
Keller Williams Realty
charlotte, NC
0 votes Thank Flag Link Mon Nov 10, 2008
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