There is no general rule. Speak to your agent to determine the actual market value of the property. Also, remember that the bank is also looking at the terms - cash offers are recommended.
If we had the answer we would share that with you. At best our guess is good as yours. it is like playing poker.
You can bluff but in the end there is only one winer.
What makes you a winer is you take your best shot .
The rest is
Blah Blah Blah and Blah offer rejected than what? Arguing with yourself leaves you with one positive conclusion one of you is right.
For others to suggest what to do is like seeing a marriage counselor.
Please.... I have more confidence in how you do in a multiple offer situation.
You either step up or step down.
As for any good realtors we need to know when to shut up.
As a buyer's agents we don't call the shots you do. We just cheer you on and keep our fingers crossed.. Don't you love people in the end who can only say didn't I tell you so? Yeah two days later when the deal falls apart and the property sells for less than you offered. Bam there goes their reputation.
Multiple offers are tough. You should only offer what you are willing to pay for the property (AS-IS). Don't run up the price then change your mind or just leave your bid low and get beaten by a slightly higher bid. Sit down and figure out the max you would pay for the home and bid.
If you loose the bid, then be happy you didn't over pay.
Best of luck to you.
Hope this helps!
Prudential Gary Greene
Friendswood, TX 77546
If you are in a multiple offer situation you most likely will only get one opportunity to bid and be successful. As for price I always tell my clients to bid the maximum you would pay for the property. To determine that amount this of it this way; If someone else outbids you by $1 you could accept not getting the home. Secondly multiple offer situations are not always about the highest bidder. Sometimes terms and or contingencies win out over the highest price. If you really want this property I would bid my maximum with as few contingencies as possible. I would also offer to close very fast if possible. This gives you the advantage over most other bidders. I hope you are successful.
All the best,
What is happening is that the REO agents are taking so long getting back to buyers, that the buyers are making several offers on several homes creating false bidding wars. Don't get roped into paying too much for the house based on bidders who may all be making low ball offers. Keep in mind in most states, REO homes are "as is" and many times it is hard to tell they have dumped cement into the drains, because the drain fine when you just pour water into them. (I had a home buyer who bought a home just like that.)
Cathy's answer is great, how many days has it been on the market? This will let you know how hot all of these offers are.
Also how much is it worth? You buy REO's to save money, but many people assume that because it is an REO the home is a bargain. But REO's need repairs, and many times people over bid on these things.
I have found that the first consideration is the proof and availability of immediate funds and the earliest date to close . The simpler the deal without any recourse the better. Cash offers that can close immediately with no contingencies win most of the time.
some things you may want to consider are the following, but there is no set formula and there is no information provided that would help with a suggestion. I highly recommend that you consult with your Realtor about the terms. Hopefully you are using a buyer's agent; it's silly not to do so. You won't get a better deal since the commission is already specified in the listing agreement, and you need somebody on your side that is knowledgeable.
1. Days on market
2. Competition - homes for sale
3. Competition - buyers
4. Property Condition
5. If it's an investment property then you need to consider your cash flow and ROI
6. If it's a residence then think about what will happen if you don't get the house; consider your other options. If it's a great house then offer what you are willing to pay.
7. It must appraise - most REOs are priced close to appraisal value so you may have to pay additional money, the difference between appraised amount and sales price
I hope that helps!
Broker - Owner
Green Home Realty
pretty thorough home inspection and share that with potential sellers on their website. They will
give pretty heavy discounts on homes that have been on the market more than 30 days.
For multiple offers on other REO properties, it's all about the "perceived value". Some banks
list a home that is clearly worth $75K for $50K and the investors and owner occupants come
out in full force with offers. If you are an investor, the owner occupant will beat you every time
since he takes the " investor's profit" out of it. My advice is NOT to use a "rule of thumb" since
all of the other buyers may do the same thing. If you really want the property, bid it up to YOUR
COMFORT LEVEL......if you don't get it, it was't meant to be. There will be another million or so
coming on the market soon! OUCH!
INSIDE TIPS FOR GETTING YOUR OFFER ACCEPTED ON A BANK OWNED PROPERTY
1. Have your agent check the tax records for what bank has the Real Estate Owned (REO).
2. Check heck how long the property has been on the MLS. If it has been on the MLS less than 30 days, and there are multiple offers expect to pay over full price.
3. Based on that information, compute the % discount OR increase that the bank would most likely accept for the home, every bank is different and your REO agent should have a good idea how much discount OR increase you will have to bid to get the home.
4. Double check Multiple Listing Sheet (MLS) very carefully giving the listing agent EVERYTHING they need to submit your offer to the asset manager.
5. Your Loan Status Report (LSR) needs to be COMPLETELY FILLED OUT AND SIGNED by you before I submit your offer to the listing agent.
6. Your REO agent should always prepare your offer on Zip forms and ensure that NO lines are left blank. If there are any mistakes on the contract the asset manager may simply ignore your offer and choose another one that is more complete.
7. Your REO buyer's agent needs to SCAN AND E-MAIL the contract to the REO listing agent, DO NOT FAX YOUR OFFER TO THE REO LISTING AGENT, as faxes tend to be unreadable.
8. Your agent needs to follow up IMMEDIATELY after sending your offer to ensure the listing agent actually received it and has indeed submitted it to the asset manager.
9. If your offer is accepted by the asset manager, I encourage you to get the addendums from the bank back to me ASAP. The bank can and will accept another offer if you do not return the addendums back in a timely manner.
10. Open escrow THE SAME DAY the asset manager sends back the FULLY EXECUTED contract to your agent.
Hope this helps!
Terry S. Smith
Scottsdale Luxury Homes
45 Year Arizona Resident
DPR Realty LLC
8341 E. Gelding Drive
Scottsdale, AZ 85260
Direct (602) 763-1858
Office (480) 994-0800
Have a Great Day!
If it is an REO & there are miltiple offers you should come in with a solid offer to be considered by the seller.
The REO company typlcally looks for a financially strong buyer with minimal contingencies on the contract meaning it should not be contingent on the sale or closing of your present home, It should not be contingent on inpsections, although you are entitled to do them, it should state that you are buying it strictly as is. You should include a preapproval letter from a lender showing that you are qualified to buy it, and also include proof that you have sufficient funds to close: a copy of a recent bank statement helps. When selecting a price come in with your highest & best price in this situation which may need to be over asking price, with a strong initial deposit & short closing date & your offer should stand out over many of the other offers and stand a chance of getting your offer accepted..
DAVID COOPER Foreclosure and Bank REO's Specialist-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
Offers can be bid up considerably if the home has value and is listed below market value. Asset managers/banks will do this to increase the number of bidders on a property, and even go to more than one round of highest and best. Remember the asset managers sell thousands of homes a year and can be very astute at pricing homes to get top dollar. Especially if the asset is in a desirable area.
David Cooper! Las Vegas Bank Owned Foreclosure Investor
Save 20% and more.. For Freee Daily List
email: email@example.com or Call +1-7024997037
If you are not sure and in doubt but love the property offer a little more . If you are not sure call me . As a broker I cannot legally advice you but I can recognize a good deal without any hesitation and will buy it l for myself if you won't .Now there's an answer that you did not expect huh? Any realtor in his or her capacity as a professional who legally discloses his interest in any property can bid on a REO property if multiple offers are involved.There it goes and who gets the property in the end well your guess is as good as mine.
For a better understanding of current market dynamics in the San Francisco Bay Area, give me a call at (510) 856-7720
For more of my thoughts please ask!