Home Buying in 48150>Question Details

Jeff, Other/Just Looking in Livonia, MI

If a house receives an offer at or above the asking price, what does the law say about time to accept?

Asked by Jeff, Livonia, MI Fri Mar 13, 2009

For example: A bank-owned home is listed at $50,000. An offer comes in on the first day for $51,000. Is the bank obligated to accept that offer by the end of the business day if no other offers come in? Or are they allowed to hold out for better offers for a few days? If so, how much time do they have before they're required to accept an offer? Does the law apply to private-owned (non-foreclosure, non-short-sale, etc) homes also?

Help the community by answering this question:


You really can't control the timeline, but you'll find your offers (and likelihood of acceptance) much more successful if you're a CASH buyer.

We're consistently seeing multiple bids now on bank homes...think of it as the Ebay reserve style...price it low and let people bid each other out.

With current listing inventory locally down 30% from a year ago, prices are bound to stabilize/increase on nice homes.
0 votes Thank Flag Link Sun Mar 29, 2009

You have received accurate information below. With banks ... it is on their clock, and their calendar.

If you are not aligned with an agent, and are in the process of interviewing agents to represent you, I would appreciate the opportunity. You can visit us at http://www.DoorToDreams.com. Having owned homes in Livonia, and an office there for 7 years, I am very familiar.

Enjoy the sunshine!

Derek Bauer, Associate Broker / Realtor
Real Estate One - Farmington Hills / West Bloomfield
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Fri Mar 13, 2009
Unfortunately, bank's home, bank's rules, and if you want to take advantage of a home at foreclosure prices you need to be willing to play the game. What we're seeing more frequently is that the homes that are actually in move in condition and worth something are being listed low to start in hopes of attracting multiple bids, therefore giving the banks several qualified buyers and a handful of offers to choose from. And by the way, it usually will drive the price up a litt bit.

It has nothing to do with first come first serve, or offering the list price or even higher.

My advice to you is that if you are determined to buy a foreclosure, as opposed to one of the many non-foreclosure homes available that are priced very well too, then work with a buyer's agent experienced in the process and have them use their knowledge and expertise to help you present an offer that is fair. Once you've done that all you can do is be patient because you may not get a home on your first try and you may need to bid on several before you get one

Best of luck!
0 votes Thank Flag Link Fri Mar 13, 2009

The bank is under no obligation to accept your offer regardless of the price, Nor is there a specific time requirement. As a Realtor and under the listing agreement my broker uses, we present offers at the first availability of our seller. Some banks are listing properties at very aggressive prices in hopes of creating a bidding war amongst several buyers. Hopefully you have an agent who will help you determine the market value so that you can decided what is your best offer price. If you just wrote your offer and today is Friday, I would suspect that there may not be an acceptance of an offer until next week since the banks are not open over the weekend. In these situations I recommend you write your highest and best offer and patiently await to hear if you are the winning offeror. Give it your best shot!

Kay Pearson, CRS
Associate Broker
Max Broock ~ Real Estate One
31 S. Main Street
Clarkston, Michigan 48346
Web Reference: http://www.KayPearson.com
0 votes Thank Flag Link Fri Mar 13, 2009
Banks make their own rules. Are you working with a buyers agent? Usually a purchase agreement
will have a date that says how long the offer is good for. Again the banks usually ignore that date.
Your agent should beable to make a call to find out if any decision has been made.
As far a private owned property...it can depend on if the property is listed or for sale by owner.
Each situation is different. I would be happy to clarify this with you. My email is mgeise@michigangroup.com.
Happy Friday the 13th.
Marcia Geise
Web Reference: http://marciasellshomes.com
0 votes Thank Flag Link Fri Mar 13, 2009
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