Home Buying in Phoenix>Question Details

Nia, Real Estate Pro in Phoenix, AZ

VVhat is the bank trying to tell us?

Asked by Nia, Phoenix, AZ Thu Nov 27, 2008

VVe found a bank ovvned house that vve liked. Selling agent said he already has an offer but doesn't think it'll go through. Our agent asked if vve gave the full asking price, vvould he take it. He said YES. By the
vvay, the house needs some TLC (kitchen cabinets, carpet...).

After vve put in our offer, the agent said that there are 3 more offers for the bank to consider.

vvo days ago (3 vvks after our offer submission) our agent emails us saying that the selling agent said that the bank lost all the offers so he'll have to resubmit all the offers. Fine.

Yesterday, vve vvere looking at some other homes online, and then found out that the house vve put an offer on is reduced 5000 dollars. Our agent spoke to the selling agent regarding this and he said that the bank is counter-offering all offers, so bring your highest.

VVhat in the vvorld is going on? VVhat should vve do? Any advice is greatly appreciated.

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Answers

6
You need to talk to your agent. They are the most qualified person to answer these questions as they have all the information regarding the property, what it's worth and the status of your offer already submitted.

When working with lender owned properties you often times work with several people from the lending institution and it is not uncommon for them to "misplace" an offer. I am speaking from experience here and if they lowered the price it means that the lender has a policy to automatically lower the price every 2-weeks or so until they get an accepted offer. They probably did misplace your offer and since the house was not under contract yet they lowered it.

Your agent should be able to tell you all of this though. They should be keeping tabs on these things (that's what they are paid for).

Hope this helps you understand a little better!
1 vote Thank Flag Link Thu Nov 27, 2008
UPDATE UPDATE UPDATE UPDATE UPDATE!

So Friday, our agent tells us to bring our highest offer as the selling agent wants to submit all 3 counteroffers by monday morning. Our agent said that she'll call us Saturday. Sunday came, and still no call, so we decided to call her in the evening sunday. She doesn't answer. Monday AFTERNOON, she calls saying to submit our "verbal" highest offer , but that " I wouldn't bid much more if I were you"!!. We upped our offer 3k more than the asking price (our original offer was the asking price), which the selling agent had said he would take initially!

Next day, our agent calls and says our counteroffer was accepted. She said she'll have the selling agent email us everything.. It's Friday now (tuesday is when offer was accepted), and still no email!

When we spoke to our agent Wednesday, she said she was happy for us, but then within the same sentence said that "It's a nice neighborhood, I like it.. The only thing that looks like it's rundown is this house!" WHAT??!! I mean if she thought it was rundown, why not stop us from bidding to begin with? Is she not working for us??! To top it all off, she knows my father is waiting on us to buy property so that he can buy as well and (HE'S PAYING CASH)!

We've told her before when she would only say "the house needs alot of work" that the missing cabinets and countertops, WE can fix! Carpet is changeable, painting is do-able. Appliances is purchasable! Saying "it's rundown" is a big word! And then AFTER we won the house, she says that she noticed some patching on the wall, and so doesn't know if there was a leak there, but that it will show up in the inspection.. Why not tell us all this BEFORE, and show it to us in those pictures she had sent?

She said she's going to get an inspector ($350-400), and a termite inspector ($40-$50). We've never physically seen the house because we live in the opposite side of the country, so we relied on HER eyes, the pictures she took, and what the inspector will say.

Are we not supposed to pick our own inspector, because her and the inspector could be friends?

Also, I have a feeling that after the bank dropped their price by 5k from asking price, that we possibly could have bought the house for that price. What are the odds?
0 votes Thank Flag Link Fri Dec 5, 2008
Welcome to the crazy world of short sales and foreclosures.......

Our recommendation is to do your homework and determine what the home is worth now. Also calculate what it would cost to make the home livable to your standards, then arrive at a price you are willing to offer.

This offer should be your BEST offer because if there are multiple buyers at this point, you probably will not be given an opportunity to provide a counter offer. So make this one count.

Good luck
0 votes Thank Flag Link Thu Dec 4, 2008
We're trying to buy a repo also. We've been out bid both times. The bank doesn't always tell the agent what is going on since they seem to use several avenues to sell the house. One thing you can do (agent should tell you this) is up your earnest money also if it's a house you're really interested in. That's one reason we missed out on one we bid on. The other people knew there was an offer in already. Luck of the draw. You may want to check with other agents and see if you can get someone that follows through for you. Our agent checked on our bids almost daily. Good luck
0 votes Thank Flag Link Thu Dec 4, 2008
All the homes in that subdivision are selling for 175+.. And some of the ones that have the exact same floorplan are selling for 230-250k. And the house right in front of it, same exact plan is listed for 159k.. VVe do believe it's a great deal, but if the bank is going to lovver its asking price, does that mean nobody offered as high as vve did?
0 votes Thank Flag Link Thu Nov 27, 2008
If you want the house, IF the house is worth paying more than asking ( that means it will appraise for more than asking price )

my advice is to is, if you want the house, up your offer
0 votes Thank Flag Link Thu Nov 27, 2008
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