Home Buying in Lawrenceville>Question Details

Jp, Home Buyer in Georgia

Can a counter offer from the seller come back higher than the listing price?

Asked by Jp, Georgia Thu Jul 3, 2008

I put an offer on a house in GA on Monday evening after going to see it twice the same weekend. The home is in great shape & a foreclosure. We saw no other agents cards on the counter all weekend and no traffic in the subdivision to indicate anyone was even looking at any of the 7 houses listed for sale in the subdivision. The house has no appliances and there was a plumbing issue before the bank took it over. I put an offer in for 18k less than the asking price and on Thursday evening the bank countered for 10k more than the listing price. My agent says they have multiple offers and to go in with our best and highest offer as well as continue to shop so as not to lose our momentum. Isn't a counter offer for 10k more than the listing price false advertising? How can they list it for one price and counter for more than the listing? Is there some place to go to complain about this or investigate this? This is my first home and offer & has been a HORRIBLE experience.

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In my opinion, if the bank made a counteroffer to you they are negotiating with you, not multiple offers. Did you ask for aprox. $10k in consessions? (appliances, closing costs, etc.) If so, you now know that the list price was the banks lowest acceptable offer and any thing that you request must be added to that price.

I'm sorry you have had a bad experience, buying a home should be fun.
0 votes Thank Flag Link Fri Jul 4, 2008
JP, banks will sometimes price homes well under value to attract a lot of attention. When a seller does this, even in today's economy, it is not uncommon to have multiple offers. These types of situations can drive the price of the home well above the asking price. This practice is not uncommon and not against any rules. Before you counter, be sure that the house will be worth it. That sounds obvious, but many people will get caught up in the negotiations and overpay for a house.

Dealing with banks on foreclosure properties is not as easy as the people on TV would like you to believe. Everything about foreclosure transactions are geared toward the seller (the bank). You need to be sure that you are working with an agent who is experienced with foreclosures and can guide you in every aspect.

That being said, purchasing a foreclosed property can being a very rewarding experience both mentally and financially. If you play your cards right, you can get a great deal. Good Luck.
0 votes Thank Flag Link Thu Jul 3, 2008
Any time you get involved with foreclosures, pre foreclosures or short sales there is always drama, your realtor was correct keep moving on YES the bank could have x bids. http://www.lynn911.com
0 votes Thank Flag Link Thu Jul 3, 2008
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