Ok - so you bid 40K less than the listing price and they countered with $5K more than the listing price? So - they were asking say $150K, and you offered $110K and they countered with $155K? Is that right?
What are the recent Sold comps for those properties? You need to have an idea as to what people are really paying for them to know what they might be worth. And then ... that is FULL market value - so you are NOT going to offer that - since it's bank owned. You'll want at Least 10% off it - or better yet 20% off it. If they don't like it, then that's too bad - take your money elsewhere.
It shouldn't mater one fig to you that "some agent worked hard to get that price approved". The price needs to be one that's good for you - period! And it needs to be a discount off of current market value (still declining in FL by the way) for you to even consider it.
What does your realtor say? How does she think it should be handled? The bank is going to accept the highest and best offer. The listing agent has to submit all offers but it is possible they have standing instructions from the bank. Your realtor should be able to get you the answers you need.
In your honest opinion and the opinion of your agent, is the condo worth the additional $5k? Are you willing to up your offer $5k? If not make a counteroffer to the bank with your highest and best offer, even if it's only $1k more. It makes the bank think they are getting more of their losses back. Keep in mind that YOU have to be comfortable doing this.
Do you really want the property? If you do, offer a little more and it could be your home. The banks want the homes sold, but they do always want to up their bottom line.
Regency Realty Services