Home Buying in 94531>Question Details

Antonio, Home Buyer in 94531

I HAVE A QUESTION I PUT A OFFER ON A REO PROPERTY THE ASKING PRICE IS 408,900 I SEND MY OFFER FOR 409,000

Asked by Antonio, 94531 Wed Jan 30, 2008

THERE IS ANOTHER OFFER ON THE TABLE I DONT KNOW FOR HOW MUCH, IF THE OTHER OFFER IS THE SAME A MINE, HOW DOES THE BANK PICKK WHAT OFFER TO TAKE?

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I presume that you used a Realtor to put in the offer. They will keep in touch with the listing agent (if different) and advise accordingly. Purchasing an REO is very different from a regular contract. In fact the Banks acceptance of an offer is usually about a 15 page document voiding most clauses of the Purchase Agreement which contained the offer in the first place and substituting their own language and policies, Including the right to cancel the contract up until the minute it records with NO liability on the bank's part. Some banks will only look at / deal with / one contract at a time. Others require that the listing agent present all offers to them no matter when they come in during the process, even if they have already "accepted" an offer and it is in escrow. Also know that the "asking" price that the listing agent has set on the property may not be the number that the bank will actually accept. They normally do not "approve" a price until after an offer has come in writing.

Be patient, keep your eyes open and keep your options open.

An REO can be a very good deal, but not always. Never get emotionally attached to a home or think that because you have offered full price that it is a done deal. Be prepared to wait for answers and then jump through burning hoops when the bank says "jump".
1 vote Thank Flag Link Wed Jan 30, 2008
The bank impression of the best offer:

cash
no contingencies
quick closing

The "Eckler Team"
941-408-5363
0 votes Thank Flag Link Thu Jan 31, 2008
Are David and Antonio the same person?
0 votes Thank Flag Link Thu Jan 31, 2008
yes i do have a local agent what she told me that it should take about 5days of maybe more.
0 votes Thank Flag Link Wed Jan 30, 2008
Antonio asked in another question regarding time frame for an answer. My first concern is that you have an agent (LOCAL Realtor I hope) and that he/she did not already set that expectation. From my experience it will be from a few days to a few WEEKS just to get an answer from the bank. As I said before, be patient and keep your eyes and options open!
0 votes Thank Flag Link Wed Jan 30, 2008
Best and Final offer doesn't consist of just price. Consider closing sooner, commissions, moving up the inspection date, sending a pre-approval letter with your credit scores or moving up your loan contingency deadline. The actual terms of the contract may sometimes be more appealing than just the price. Reason being they are prorating every single penny and calculating every cost. Also, if your offer came in first and I do mean first. Then the bank is more likely to review your offer and negotiate with you instead of the other person, regardless of price.
0 votes Thank Flag Link Wed Jan 30, 2008
The bank is all about their bottom line. If the offer is more than yours, it is likely they will take it over yours. However, if it is the same, as you say, then it will come down to the more attractive terms. As Naima said, they may come back to you for your best and highest - or not.

You just never know, and that is what can be so frustrating about dealing with bank-owned properties.

One word of caution: Be sure that offering over their ask is still market value. You've hopefully done your homework, but don't automatically assume you are getting a spectacular deal just because it's REO.

Good luck; let us know what happens!
0 votes Thank Flag Link Wed Jan 30, 2008
They'll probably look at contingencies, proposed closing, earnest money......just my thought but I'm sure some of the pro's will chime in momentarily. Good luck to you and I hope the process goes more smoothly for you than it has for me.
0 votes Thank Flag Link Wed Jan 30, 2008
They will look at the terms of the offer, may be closing time, which financing seems more secure. If it's still too similar, they may go into a Multiple Offer Showdown (I call it that), where they go back to the buyers and ask for the best and final offer from each party..
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Wed Jan 30, 2008
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