Foreclosure in Fresno>Question Details

Tracie, Home Buyer in 93720

multiple offer strategy

Asked by Tracie, 93720 Sat Feb 21, 2009

We have an offer on a REO and have been countered to have our highest and best offer back to the bank. There are apparantly 3 offers on the table. We feel our offer is already great but don't know how to 'play the game'. Feel disadvantaged at having to do business this way and think we are being disadvantaged as first time home buyers pitting ourselves against investors who know how to play hardball. What do we do?

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This has been a stategy for REO brokers for the last year. Reduce the price below market value to get a qucik sale thus also attracting multiple offers. When multiple offers are recieved it puts the seller in the power seat rather than the buyer (in todays buyer market).

I had one transaction like this that my people came in on the loosing side. The house was listed for 144,900 and we offered 144900 and so did 3 or 4 other people, so the bank came back with come back with your highest and best. My people came back at $1000 over the next highest offer up to $150,000. We lost the deal and the house closed for $159,000. Your buyer agent needs to guide you through the process and educate on the value and what should be paid and you have make the right choice.

Good Luck!
1 vote Thank Flag Link Sat Feb 21, 2009
Tracie,
Your real estate agent should be guiding you. There is no game, if it's between an FHA loan or conventional loan. The seller will likely go with the conventional loan. Even if it is thousands above the list price. The sellers want solid buyers as well.

Jes Sierra, B.Sc.
Realtor®
0 votes Thank Flag Link Thu Aug 20, 2009
Tracie,

It may be a little too late to put an experienced real estate professional in your corner for this deal but this is something to remember for future real estate activity.
0 votes Thank Flag Link Sat Feb 21, 2009
With our clients and foreclosures / short sales, we instruct keep looking if submit an offer I have researched agreed with buyer then that is it.... no on some listings with enough equity we will place an offer OVER list price secure the home HOWEVER other home buyers could do the same.

Not much you can do hope bank will accept offer.

Cash offers close faster, it also depends on how contracts are authored and etc. All guessing game . Even seasoned veterans who have purchased homes have the same issues. INCLUDING MYSELF as a real estate investor.

Your issues are no different than the entire world .
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 21, 2009
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