Home Buying in Los Angeles>Question Details

llaneque, Home Buyer in Los Angeles, CA

The bank has not given an answer on the 1st offer, they don't want to consider my offer until they've decided

Asked by llaneque, Los Angeles, CA Fri Aug 22, 2008

My agent and I have made an offer on a house, but I have learned that there is already another offer. The bank has not given an answer on the first offer they received yet, and the seller's agent is telling us that the bank doesn't want to look at my offer until they decide on the first one.
Is this situation common? What are my chances that my offer will be considered?
Thank you

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Answers

14
BEST ANSWER
The listing agent needs to present all ofers to the bank. Plain and simple.
1 vote Thank Flag Link Tue Sep 2, 2008
I was now told by my agent that the bank will look at my offer only if the first offer, they are now examining, does not go through.
So apparently, the bank does not choose necessarily the best offer, they take the first one, and if it is accepted, my offer will not be considered even if it's a better offer (I don't know if it is the case though).
The bank is washington mutual by the way. For me it does not really make sense.
0 votes Thank Flag Link Thu Sep 18, 2008
"Have you considered that the first offer is higher than your offer?"


Yes, it's quite possible but the agent doesn't want to tell us anything about the first offer,
I don't know if it's higher or lower than mine.
From what I know the sale is handled by a bank, and it takes forever to get an answer.
0 votes Thank Flag Link Tue Sep 9, 2008
This is not at all common in our area. The mortgage lender usually waits from 60 to 90 days from the receipt of the first offer in hopes of getting a better offer on the table to choose from. We represented a buyer who made an offer on a short sale property and then increased the offer when we learned there were multiple offers coming in. Our buyer was successful and paid several thousand dollars over the "asking price" which was a teaser to invite offers.

Can your agent find out if the listing agent represents the "first offer" buyer? Our real estate guidelines require that ALL offers must be presented to the owner and the mortgage lender if it is also a short sale. If you doubt this is happening, perhaps your Realtor would talk to their broker and that broker could talk to the listing agent's broker to learn why your offer has not been presented. Certainly after the fact, if your offer is higher than the sale price, your offer was probably not presented, and both the owner (who would have a bigger deficit between the sale price and the mortgage) and the bank who accepted less would be mis-represented. I wonder if this sale is being handled by the bank or an asset management company? I also wonder where the breakdown in communication lies -- with the listing agent, the current owner, or the bank asset managers? It is in everyone's best interest to receive the highest possible price for the property.

Have you considered that the first offer is higher than your offer?
0 votes Thank Flag Link Mon Sep 8, 2008
Is it ethical to try to find out with the bank how they are dealing with the first offer? And is there even a possibility to find out such a thing?
0 votes Thank Flag Link Mon Sep 8, 2008
Thanks, I understand better the short sales now (I did not know anything about buying a house two weeks ago). If you have experience with short sales, do you know how long it takes for the bank to deal with one offer. The agents have talked about 6-8 weeks.
0 votes Thank Flag Link Sun Aug 24, 2008
Ilaneque,

Yes, this is a common situation. The bank has a lot of documents pertinent to this house in their file that are necessary in order to procede with the short sale. The bank will deal w/only one offer at a time and if that offer has all the answers, i.e. pre-approval letter, verification of funds, etc... they will proceed with your offer.

Meanwhile........ keep looking, there are so many homes on the market for you to choose from and if you are working with a Realtor, they will assist you in finding another home.

Best,
Yona Bello
Web Reference: http://www.YonaBello.com
0 votes Thank Flag Link Sun Aug 24, 2008
Thanks for your answer.
So it does not sound too good if the first offer is accepted, no matter how much I offer, I'm out!
We'll see...
0 votes Thank Flag Link Fri Aug 22, 2008
Okay, this answer is from my experience ONLY and I have it, in the past 10 days I have closed 3 short sales. Banks do not continue to accept offers, once they receive the first that is what they work with. There is no way that the bank will say "we will look at that offer after the first offer is looked at". The bank is not a real estate agent, our job is to look at the offers and select the best one, like Monique said the bank looks at the dollars at the bottom of the net sheet. What is most likely happening is if the bank comes back with a higher sales price and the first buyer does not increase the purcahse price, the selling agent will go to you. Do not wait for an answer because if the first buyer has to increase the purcahse price and does, you are out on a property and your valuable time!! Now if the bank comes back and the original buyer does not perform, let them call you and you get to decide what your next step will be. YOU are in control of this market, don't allow that to be taken from you. Sorry if I am sounding a little strong, but I would feel really bad if I gave you a politically correct answer and you lose out!!!

Dyanna
0 votes Thank Flag Link Fri Aug 22, 2008
But how can they accept my offer if they haven't even looked at it? Should I insist to my agent that the bank looks at my offer? and how do I do that? by increasing the price that I offer? Sorry if that sounds like a naive question.
Thanks again.
0 votes Thank Flag Link Fri Aug 22, 2008
iL
The most helpful answer I can offer is that for most lenders, this is a very stressful time. Having an offer accepted will be assisted by showing the lender why it makes sense (cents) for them to accept your offer.

Speak their language.
0 votes Thank Flag Link Fri Aug 22, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Thanks for the answers.
However, my agent said my offer was strong because I am willing to put 50% for a down payment. I don't think the bank has seen my offer yet but I will ask my agent about that.
Is a large down payment a good thing for the bank? I suppose...
thanks
0 votes Thank Flag Link Fri Aug 22, 2008
My advice is try not to get too emotional a property. There is so much property out there to cherry pick. Its a buyers market out there.
0 votes Thank Flag Link Fri Aug 22, 2008
Hello Illaneque,

The bank may or may not want to see your offer (unless it's more than the offer). Banks are only interested in dollars and cents. They have a right to accept other offers (usuallly) unless they have bank approval but my thought is that your offer might be less than the other offer submitted. If you want the house you might want to have your agent see if they can find out any information they can on the other offer or see if you increase your offer if the agent might be able to get a response.

Good luck!

Best,

Monique Carrabba
The Reavis Group
Keller Williams WIlshire
mcarrabba@kw.com
0 votes Thank Flag Link Fri Aug 22, 2008
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