Home Buying in Roseville>Question Details

Tommy, Home Buyer in Roseville, CA

We were going to make an offer on a home listed at $190K when our agent called back to say the home already had an offer of 225K. How can I verify?

Asked by Tommy, Roseville, CA Sun Mar 18, 2012

The home is an REO.

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12
Jorge Alfaro’s answer
The best way to verify is to ask the listing agent directly.

You should rely on your agents information. If he is the listing agent as well, then there may be a conflict of interest? Who do you really think he is really representing ?

You should get an agent who is only representing you and not the seller. Their is a buyers broker agreement contract that protect your interest.

Reo properties are priced aggressively, so there will be a lot of competition. You need an agent who is on top of new daily inventory.



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0 votes Thank Flag Link Thu Mar 22, 2012
Does your agent officially represent you or the bank? Vidi Barker gave an excellent summary already. I want to add that you need to know for a fact if an agent you are speaking with you represents you or the seller. If he/she represents the seller - then he/she has to keep any sensitive information such as the offer prices confidential from you and from any other buyers. Did you sign an Agency Disclosure form? If not - have a conversation with your agent about it.
0 votes Thank Flag Link Wed Mar 21, 2012
Dear Tommy,
Well there really isn't any way to verify this information. You agent is telling you what the listing agent has told them. I suppose you could put in that low offer, but its a waste of time if you have no chance of getting the house. I will tell you that most REO homes and Short-Sale homes sell for more then the asking price.
0 votes Thank Flag Link Wed Mar 21, 2012
First off if you don't trust your agent then perhaps it's time to interview other agents. It its essential that you are comfortable and trust in your agents ability to negotiate and act in YOUR best interest. Second, it is against the law for any agent to say how much has already been offered. The only thing they can say is there is already an offer. If they have accepted an offer then the property will go into Back Up status, during this period other offers are being accepted in case the current offer backs out. Third, how did you come up with your offer price? It is your agents job to pull up comparable properties in that area that are available, sold, and pending and this is how you will determine a solid offer. Remember, when it comes to real estate time is of the essence and especially in this market. There are far more buyers than sellers so when you see something you like submit an offer ASAP. This too is your agents responsibility to ensure you are being represented in a timely and professional manner. Lastly, you can't verity how much a property sold for until it is sold.
0 votes Thank Flag Link Wed Mar 21, 2012
Regardless what you were told verbally, you should go ahead and write your offer since so many of the current transactions fall apart during the initial 15 days of the transaction. Some offers actually never get fully executed and in that case, the seller may be looking at the next acceptable offer which could be yours!
This market requires alot of patience and "go for it" attitude.
0 votes Thank Flag Link Wed Mar 21, 2012
It might be tough to verify, but ask your agent how they found out about the higher offer? Did they write it for another buyer or did someone in their office write it and they heard about it? It also depends on the bank that owns the REO and the agent representing the bank, some will disclose offer amounts & some will not.

I might have still submitted your offer after looking at the comps (was the home really under market?) Some REO lenders won't accept an offer too much over market for fear it won't appraise if the buyer is getting a loan. Some buyers submit offers over asking knowing the property won't appraise and then they "beat" down the price based on the appraisal- doesn't always work, but I have seen it.

Also even though there was a 225K offer, that doesn't tell the whole story, what were the terms? Is it an owner occupied buyer & does this seller give preference to owner occupants? Credits, contingencies, request for repairs can affect the NET to the bank and that is what they care about. Is that buyer going to stay with the offer or did they make offers on multiple properties at the same time and are only going to choose 1? Don't be afraid of competition. Make the best cleanest offer you can, demand is high for good houses in that price range, don't bet on the sellers coming back with a counter, they may not.
0 votes Thank Flag Link Mon Mar 19, 2012
Listing agents are required to submit all offers. Ask for proof that it was actually submitted to the seller.
0 votes Thank Flag Link Sun Mar 18, 2012
I just had a very similar situation. We are seeing multiple offers on lower priced homes which more people can afford. I would ask your agent for a report of comparable homes sold within the last few months to get an idea of what they are selling for. With another client of mine they were interested in a house in Roseville that received 12 offers in 3 days. When homes are underpriced, its very common to see multiple offers.
0 votes Thank Flag Link Sun Mar 18, 2012
Hello I would not worry so much about the offer being 225,000 but rather to make sure the listing agent presented your offer, Ask your agent for page 8 of your offer with rejection of your offer by the seller. Other factors to consider are you asking for closing cost credit by the seller? Are you writing a clean offer with no junk fees?
0 votes Thank Flag Link Sun Mar 18, 2012
The only way your agent would know the 225k number is if the listing agent told your agent. So, call the listing agent if you do not believe your agent. Offers over asking price are common if it is a desirable property or under priced It is very unlikely the listing agent will actually show you the physical offer of 225k and you basically have to take them at their word. The only real verification is when you check the public record of sale which will have the sale price, but then it is too late and you did not get the property.
0 votes Thank Flag Link Sun Mar 18, 2012
Unfortunatly, there is no way to verify... But, The listing agent shouldnt be telling other agents "how much" current offers are. I will say that with the inventory so low that we are seeing multiple offers... but bottom line is your agent works for you... if you feel $190k is a good offer, then tell him you would still like to write the offer and see what happens.
Good luck!!
0 votes Thank Flag Link Sun Mar 18, 2012
You can ask your agent to look up the recorded sales price after the $225K sale is closed and recorded. You are surprised that there are big overbids in a real estate market that you thought was on its deathbed.

The real estate market is now undead. Like Vladimir Dracula, it is clawing its way out of its coffin. You cited a $35,000 overbid as evidence. When the overbid is that high, I suspect that the property may have been underpriced for auction style bidding. On the other hand we are hearing about and seeing bidding wars on market priced listings as well.
0 votes Thank Flag Link Sun Mar 18, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
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