Home Buying in Oceanside>Question Details

John Suarez, Home Buyer in Oceanside, CA

There is a foreclosure we are making an offer on and are in a multi-offer situation and they've asked for our

Asked by John Suarez, Oceanside, CA Wed Jul 23, 2008

strongest and highest offer. The listing had a pre-approved 10k buyer credit for repairs. What is usually a stronger offer? Asking price with the pre-stated repair credit (10k) or 10k above asking price and waiving the pre-stated credit? There is almost no difference to us (taxes, closing costs) but which would more likely be attractive to the lender? Do most lenders do a 'whole package' price and so these are the equivalent, or would one be more attractive?

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Are you working with an agent or broker? If so you really need to be speaking with them if you have submitted an offer through them.

It is really difficult to give you an answer without knowing the entire situation regarding the property and what other offers have been submitted. I will always speak with the listing agent to try to get an idea of what is needed in the offer for my client to get the deal. Sometimes I will get info and other times the agents are not very cooperative.

The banks are looking for the highest net with a high probability of the deal closing. If you trying to go in with very little down, sometimes a bank will accept a lower offer that has more favorable terms (higher down payment or all cash). They are looking for the highest price, but they also need the deal to close.

If you are not working with an agent or broker, I would be happy to go into much more detail and give you an analysis of the property and to help you determine what you want to do. I work directly with asset management firms and have REO listings, so I do have a pretty good idea of how to structure an offer.

Jay Gedanken
Broker Associate
PineappleHut Realty
858-605-5839
1 vote Thank Flag Link Wed Jul 23, 2008
Hi John,

Tony below has his facts straight. The lender wants the best net price, someone with their financing ready to go and is willing to close in the least amount of time possible. As Monique stated, it depends on how badly you want the property.

In our opinion, people can get wooed by a great price and lose site of whether they really like the home.

Best of luck to you,

Mark & Kari Shea
1 vote Thank Flag Link Thu Jul 24, 2008
An experienced agent knows how to represent your best interests in a multiple offer situation. And multiple offers are very common on well priced bank owned homes in good condition. "Highest and best" usually means best bottom line price(purchase price less any credits or closing costs) for the seller as well as best financing, highest deposit, and quickest closing.

If you wrote your offer with the listing agent, you are doing yourself an injustice. They represent the bank. It doesn't cost you anything to have a buyer's agent, and you will get someone who is strictly on your side.
1 vote Thank Flag Link Wed Jul 23, 2008
My experience is that the lenders/reos usually look at the bottom line. If this is a good deal. I would make the offer as attractive as possible. Waive termite inpection or repairs, keep your inspection contingency short, show your down payment (proof of funds), decline the 10k credit and go over the asking price if you can. Ask you agent to do comps and determine if even by doing that, it's a good value. What matters most is home much you want the house.
1 vote Thank Flag Link Wed Jul 23, 2008
Hello Mr. Saurez, Multi-Units are a very good investment for positive Cash Flow, banks are looking for the best Cash/Loan Offer.My expierence with a multi-units, I closed escrow with the offer the Banker was interested, we came in as an Back Offer and the Banker liked our creative offer. After close of Escrow a $10,000 credit for investors repairs. As a License Contractor I was able to utilize buyers $10k to upgrade thier, Plumbing,Electrical,A/C and Heat. Keep me posted if your are in-need of my professional advice.
Ruben Sanchez/Broker-Contractor
Web Reference: http://www.RubensHvac.info
0 votes Thank Flag Link Wed Jul 23, 2008
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