Foreclosure in 60624>Question Details

OnMktNow, Home Buyer in Atlanta, GA

Cash, full price 300K offer (w/ appraisal contingency) rejected by Fannie. Fannie's ctr to one accepted offer rejected by buyer. Bid open

Asked by OnMktNow, Atlanta, GA Wed Apr 17, 2013


Help the community by answering this question:


Bob Brandt’s answer
Too many buyers and not enough homes. Expect some price appreciation as a result of the current market and look ahead to where the value will be in 6 months. That will be a better guide than bidding using last years values.
0 votes Thank Flag Link Fri Apr 26, 2013
These Fannie properties confuse most buyers, and even buyer's agents at times. They are sometimes wildly under-priced, even if the market had a regular supply of inventory, but with slim pickings all around, some Fannie places, in the most desirable neighborhoods, have sold $200k over list price. And despite what your stats tell you, it is often the buyer who truly wants it most, isn't really trying to bid at the price a similar property sold for willing to waive just about all their contingencies if they aren't buying cash, and many unseasoned buyers are reluctant to do this (and for most of them, that might be a losing bet but at least it's safe).

You need to re-think your strategy and move on. Or spend the next several months assuming your logic will work before giving up and renting.
0 votes Thank Flag Link Thu Apr 25, 2013
What does your attorney advise you to do on this one?
0 votes Thank Flag Link Thu Apr 18, 2013
Do you think I have a case? My broker/agent was not able to get timely response from the listing agent. I called Fannie again now they are saying there is an accepted offer. Not sure if what Fannie can see is the reality at this moment. Yesterday at 4 pm, Fannie said the "chosen" buyer rejected the counter. So why between yesterday and today we are excluded? I am not able to get effective service.
Flag Thu Apr 18, 2013
If you want your offer to look more attractive, then you need to remove some of your contingencies like the inspection and appraisal.

Best regards,

Ivan Sagel

I always appreciate your referrals…
0 votes Thank Flag Link Thu Apr 18, 2013
I am willing to remove appraisal contingency. However, my agent is not able to hear back from the listing agent for 1 day. So we do not even know if it's available any more.
Flag Thu Apr 18, 2013
Dear Atalanta Purchaser,

All of us have seen this time and again. I have been working with a buyer who has submitted full price offers to a couple thousand over and the offers rejected for the properties to come right back on the market a month later. I am not sure where the issue lies but be persistent and what is your broker telling you?
0 votes Thank Flag Link Thu Apr 18, 2013
you were out smarted by a local.. your doing almost everything wrong..come into my office and learn
0 votes Thank Flag Link Thu Apr 18, 2013
So what is your question? Make another offer. They can reject anything they want.
0 votes Thank Flag Link Thu Apr 18, 2013
I can only say based on the information you gave I would have advised you follow a different strategy.
The expectation you will know the underlying circumstances for how Fannie determines value and an acceptable price is going to lead to disappointment.
0 votes Thank Flag Link Thu Apr 18, 2013
Sounds like you are going at this alone, you are not listening to your agents advise or you are working with someone that is not explaining what is going on in the market currently. If you want the home resubmit your offer if it is still open for that. Using the tax assessors value to determine true value/worth is the equivalent of me asking your grocery store clerk if your a good cook.
0 votes Thank Flag Link Wed Apr 17, 2013
Sounds like you may have another opportunity if the bidding opened up again. Highest and best is the order of the day or you will miss the property again. Multiple offers are COMMON! The full price offer almost NEVER wins in that situation. Since all Fannie's properties are listed, what did your agent advise??? Sometimes you need to learn the market. Loosing a property in that situation will prepare you to win the next bid! GOOD LUCK.
0 votes Thank Flag Link Wed Apr 17, 2013
Buyer Agent has not been able to get more information /insight from listing agent. I found out by calling Fannie direct that the buyer rejected the counter from Fannie and that no active offers right now.
Flag Wed Apr 17, 2013
I just had a client offer $30,000 over asking price. Asking price is low for some of these deals. Take a good look at recent sold comps.
0 votes Thank Flag Link Wed Apr 17, 2013
2 homes in same neighborhood are "pending sale" under 200K. Zillow comps around 250-260K. This home is on a small lake and also have inground poll. So my analysis is it is 285K. So full price is my best offer.
Flag Wed Apr 17, 2013
Full price is low for multiple offers situation
Good luck next time
0 votes Thank Flag Link Wed Apr 17, 2013
You were outbid - work with a Realtor and find another one.
0 votes Thank Flag Link Wed Apr 17, 2013
Why do you need an appraisal contingency on a cash deal?
Web Reference:
0 votes Thank Flag Link Wed Apr 17, 2013
If I have concerns about chasing the price up, some other buyers would have the same concern. Understand competition is fierce in the current supply shortage situation. But if the comps don't support the higher price, you will end up with negative equity.
Flag Wed Apr 17, 2013
B/C the comps are 30K+ below asking. Even the same neighborbook two pending sale (short sale) are under 200K. I need protection.
Flag Wed Apr 17, 2013
So many of these are going way over list. I would just try to resubmit and hope for the best.
0 votes Thank Flag Link Wed Apr 17, 2013
I like the property but the full price is the max my rational mind allows me to do. The 2012 tax bill shows FMV as 280K. Comps about 260K. So 300K+ is higher than it's worth in my view. I don't think the buyer they picked had a much better offer than mine. How do I proceed? Thanks.
0 votes Thank Flag Link Wed Apr 17, 2013
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