Just a quick couple of questions. Did you ask for money back for your closing costs? Did you have a long contigency time? Did you have a major bank pre-approval letter or a morgage broker one? Did the listing agent acknowlege that he recieved your offer? Was your offer put in on time or was the other offer already into the bank? Finally was it the listing agents buyer or another agents.
These are some of the possible reasons you did not get the property, you and your agent really have to be on the ball in this market to get an offer accepted.
I hope this helps in the future.
As Bill and Katina noted below, the bank's main reason for choosing a specific buyer has more to do with the certainty of a sale than with the price. In other words, a buyer who purchases without a loan (in other words, with all cash) will find that his/her offer, even if lower, will be the one chosen most often by the bank since this buyer will certainly close escrow. On the other hand, a buyer with a loan must first obtain the loan, get the home approved by the lender, and then (often) make repairs necessary to satisfy a lender's conditions. All ot his costs time and creates a contingency that often requires additional negotiation on the part of the bank--something the bank is not happy to do.
While I know this experience has left you frustrated, there are many buying opportunities coming soon as banks release another round of foreclosure properties in the next few months. According to most financial news agencies and analysts, the banks are currently "sitting" on a huge pool of foreclosed properties, and are waiting to clear current inventory before slowly releasing additional homes for sale to the public. There will be other opportunities for you to buy homes in Willow Glen, I'm certain, provided you are prepared to wait a little for the release of these homes.
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
In our part of the world the most common reason for this is an investor with an As-Is, Non-contingent, all cash and close in 10 days offer. Banks will allway take less when it is quick and certain with no appraisal needed. As I'm sure you know anything in Willow Glen is going to attract serious interest and usually go well over asking.
Good luck with the next one but you should not be ignoring regular sales where your'e not competing with the cash buyers and where you don't have to take the property as-is with no allowance for repairs etc.
It is a Wicked Wicked World and Nothing is Fair! I lost a deal for a buyer because I naievly believed the listing agent's office and was waiting for a response from the seller regarding some vandalism that had taken place.
Cash has a tendancy to beat out financing...and then what was the timing of your bid. Was the other offer already in negotiation with the seller before your contract was received? Maybe your agent was slow in submitting your bid. Maybe you were slow with providing your signature, earnest money check or proof of funds statement. What if you had a....
Don't play these games with yourself. The bottom line is you will never know and you didn't get the contract.
In my market (Atlanta) more than likely it will come back on the market with a reduced price and you will still be able to buy it. Unfortunately here, buyers just move on...maybe it's because it is a "Right to Work State" or maybe it's because there are SOOOOO many houses.
Who knows...there may be some latent defects that the universe just saved you from!
Good Luck and try not to take it personally,