Please do not hesitate to contact me with any questions.
Nextage Realty Professionals
LinkedIn Profile: http://www.linkedin.com/in/hiremario
I've had this happen to one of my buyers.
The listed price was $157K and we bid $180K. Our offer was FHA financing and we lost to an offer that was at the listed price. The winning buyer was using conventional financing. FHA as a few more restrictions than conventional financing and most FHA borrowers are not as qualified as conventional borrowers. If I was a seller in this market, I would choose the buyer with the strongest possibility of closing the transaction.
Also, maybe the seller knew the property would not meet FHA's minimum living standards. Whatever the reason(s), you need to be working with an experienced, full-time Buyer's Agent. Just be careful of listing agents who are "moonlighting" as Buyer's Agents.
Buyer's Agent Realtor
I have had buyers with higher offers declined as well. Most of my clients are FHA and we ask for the 3% contribution but if we are competing we roll the closing costs over what we feel is the highest offers out there so the banks bottom line isn't affected.
The other factor others don't take in to consideration and I wish it wouldn't happen but it happened to us in this case...the buyer that beat us out was the listing agents client as well. They pushed their deal through and we can't confirm bank ever saw our offer. Our offer was $3k over asking and it sold for $20k under asking. A big deal to the banks bottom line.
I have to call on every home I prepare to show even if it shows active and "interview" the listing agent. Some out there are forgetting our code of ethics.
Also, there are multiple offers on every home at your price point in many areas. For example in Buckeye and other more hard hit areas there are an average of 6 buyers per available property!
Keep in mind the moratoreum on foreclosures has lifted and while banks are doing more to keep people in their homes there will be more coming on the market and you will get a home that can be yours.
The key is identifying who you are dealing with on the other side of your transaction, getting to know how they work, and prepare them for you offer (quickly these days as they don't sit long if they are good deals) and have a cover letter that bullets the bottom line to the bank so no one has to figure anything out! Simple and basic, clean and quick are the ways to go.
Best of luck Shane. You will get what you want
Keller Williams Arizona Realty
There's more questions to ask.
Were you asking the bank to pay your closing costs?
Did you have proof of 3.5% downpayment?
Did you ask the bank to pay for a home warranty?
What is your credit score?
All these questions and answers are taken into consideration when the bank chooses a offer over another, even if the offering price is lower.