Jschroed5186, Home Buyer in Medford, NJ

Will we have a bidding war?

Asked by Jschroed5186, Medford, NJ Tue Dec 3, 2013

My husband and I recently put an offer in on an REO Property owned by Coldwell Bank. The home was listed for 200k and we offered 185...1,000 due at signing and 20% down for financing.

The bank countered with this exact wording
"I received another offer this morning. If your client does not accept the above terms we will go to a highest and best situation."

What are the chances of this starting a bidding war if we accept their offer? We love the property and do not want to lose it!

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Answers

6
If they have presented terms, and you accept them, any bidding war is over, the deal is done. However, if someone else accepts terms from them BEFORE you do, the bank will cancel their offer and your terms are dead...
1 vote Thank Flag Link Tue Dec 3, 2013
We accepted the offer this morning and we are in! Thank you!!!!
Flag Tue Dec 3, 2013
If you find yourself in a multiple offer situation and are unsure of the other parties offers as is usually the case, it's best to think of what the home is worth to you based on what you have seen in the market thus far. Establish that price in your head, and be willing to go to that amount. If you feel the terms are acceptable and the price is satisfactory, take the offer before the bank asks for highest and best or has the other buyer match their terms.
0 votes Thank Flag Link Tue Dec 3, 2013
Pretty clear to me...either take their terms and get the house OR the bank will counter offer both parties and ask for you "highest and best" offer...meaning you will only have ONE shot at getting the house so it will be a one time, best offer, bidding war (to quote you)

if you are leary about accepting the terms, I assume you will be using an attorney to help close the property? Ask him/her to review the terms and make sure they are in your best interest, but don't hesitate or you will either lose the house or get into a "one time, highest and best bidding war"
0 votes Thank Flag Link Tue Dec 3, 2013
What are the terms they are asking you to accept? That language you posted above sounds like it's coming from the listing agent and not the bank.

Banks will evaluate multiple offers at the same, especially if they are using transaction management software like res.net, homepath where agents and buyers can bid on home directly. Don't lose the house for a few thousand! And as is sale is common for REOs.

The good news is once you sign the banks contract/addendum, you are guaranteed honest and fair dealings. More than likely you will have 30-45 days to close. Banks are strict with their time tables . So, adhere to it.

Remember, while you are under contract with the bank, there could be 2-3 buyers itching to get your same deal.

I hope that helps!
0 votes Thank Flag Link Tue Dec 3, 2013
If it were meant to be it will happen.
Consult with your agent, present your highest and best offer and see what happens.
Your agent should also know a few tricks to giving you an advantage.
0 votes Thank Flag Link Tue Dec 3, 2013
If the property is loved and does not want to be lost, take the terms.
0 votes Thank Flag Link Tue Dec 3, 2013
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