Hi, we just put in an offer to the bank and they countered same day. We countered back and our Realtor told

Asked by Gelika, Colorado Mon May 11, 2009

us another offer just came in. If the bank gets back to us in the morning before the Realtor submits the offer, then we will accept it. However, is there a way to go back and accept the banks original counter offer? Are we out of luck because we countered back now? We were told that if the other offer gets submitted before the bank gets back to us then we will have to give our biggest and best that is why we want to go back and accept the banks original counter offer. Any advice ASAP would be greatly appreciated. I need to know tonight if possible. Thanks so much!

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
Terrell Will…, , Wheat Ridge, CO
Mon May 11, 2009
Hi again Gelika -

Grace has covered most of the territory I didn't, so I'll try not to rehash much.

We're required to submit ALL offers to the seller - regardless of when they come in, even it it's ten minutes before closing. That doesn't mean all offers will always be reviewed or considered, but they do have to be presented. I agree with Grace's comment suggesting that the bank should ask both parties to submit 'best offers', and ran into just that situation recently, but also agree with her that most banks often don't (my words) act in their own self interest.

I'm not sure where you are in Colorado, but given your description, I'm going to guess you're somewhere in the Denver area and bidding on homes below $200,000. Assuming this is true, then I totally understand your frustration. The past year has been increasingly crazy around here in this price range as more and more buyers compete for fewer and fewer homes. I have been working with some investor buyers recently and we went through this too for a whle. They had wanted to bid below list price thinking they were still trying to get a 'discount', and we kept losing the bids. Finally I got them to bid a little bit above the list price - and we won the bid. The difference was only a few thousand dollars, but now we're looking at closing soon instead of still bidding, so they're happy.

As for the seller's agent possibly being your agent too as buyer's agent, that's a tricky situation. In some states it is legal for a broker to literally be a so-called "dual agent", representing both sides in a transaction as agent. In Colorado this is not legal and hasn't been for some time. Instead, here we have the somewhat confusing alternative relationship of the broker being a "Transaction Broker" for one or both sides, or being agent for one side while the other party is a "customer". All of this can be a bit confusing, both for the Realtor and for the client, when there's only one broker in the deal. It's legally fine if handled correctly, but always tricky. I've handled situations like that several times myself, and though I make more money on those transactions, I don't like it for all these reasons so I try to avoid it.

If you otherwise like, trust and enjoy working with this broker, then that's great, but going forward, it might be easier for you if you ask your broker to show you only homes where he/she isn't the listing agent. It's not his/her fault that that situation is hard to manage - it just is - so why not avoid the situation?
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Mon May 11, 2009
Gelika:

Thanks for your comments. I see no reason why your agent cannot submit another counter offer to the bank with all of the terms and conditions of the bank's first counter. This second counter would rescind your current counter, and replace it with this new one.

As to your second question, if the bank counters your offer, you would need to accept the offer in order for there to be a valid contract. The bank may still--and probably will--look at the second offer before deciding what to do with your counter. In all likelihood, if I were the bank, I'd counter BOTH parties and see who answers first, but banks are typically not that facile in handling offers, so they may choose to work only with one buyer.

At this time, it's too late to submit a new offer or counter, so I'd wait to see what happens tomorrow morning.

Good luck!!
Grace Morioka, SRES, e-Pro
Area Pro Realty
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Mon May 11, 2009
Hello Gelika and thanks for your question.

Thanks for the additional information that you provided to Terrell. The agent selling the home and representing the bank is also your Realtor? That certainly complicates things, doesn't it? In most cases, as the agent, we are required to present all offers to our client. I'm a little dubious about the timing "shenanigans" that your Realtor seems to be implying--that you can get the house if she holds off sending in the other client's offer and you send in a new offer that's better than your first or sign the first counter. In reality, the counter offer that you sent back to the bank effectively "rejected" the bank's counter, and there is no contract unless the bank signs your counter or offers a new counter to you. Resurrecting the previous counter is unlikely without the consent of the bank, and your Realtor will have to negotiate that on your behalf.

In the meantime, however, the listing agent (your Realtor) must submit the other offer to the client. As Terrell suggested, there is no harm in becoming the back-up offer as deals do occasionally fall through.

I understand that your frustrated, but home buying--especially if you're looking for a bargain, can be difficult. There are a lot of buyers coming "off the fence", so it is to be expected that other offers may be submitted for a foreclosure property in which you are interested. Unfortunately, the days when the buyer could command deep discounts for bank owned properties has passed, and competition is forcing many properties to be sold at or close to the low end of the fair market value.

At this time, unless the bank is willing to resurrect their first counter or accept a new counter from you with terms and conditions exactly like those of the bank's original counter, you will, unfortunately, have to wait to see what happens with the second offer and your counter.

Good luck! I have my fingers crossed for you.

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Tue May 12, 2009
Thumbs up to you, Terrell, for an extremely cogent explanation!

-Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
0 votes
Gelika, Home Buyer, Colorado
Mon May 11, 2009
Thanks again Grace. I know the Realtor selling the house is going to get the other offer to the bank in the morning. The only thing on my side is that the bank is two hours ahead of us and if they accept or counter us first thing in the morning we may be okay and the other offer may not get there because of the time difference. I'll keep my fingers crossed too. i just hope it works out. Thanks for answering my questions.
0 votes
Gelika, Home Buyer, Colorado
Mon May 11, 2009
Thank you Grace, we have been in full contact with our Realtor (our Realtor works as the buyers agent for the Realtor actually selling the house). I am asking simply because my Realtor and the Realtor selling the house is saying that we cannot re-submit a new offer with the banks terms. She is basically telling us that we need to just wait and see if the bank signs our offer or counters before the selling Realtor submits the other offer tomorrow morning.

We have spoken with a few other Realtors not involved and they told us we could submit a new offer to match that of the banks counter but our Realtor is telling us we can't. That is why I am looking for more advice.
My other question is: If the bank accepts our offer or at least counters will the bank still look at the other offer that may come in after they accept or counter our offer?
I appreciate you getting back with me.
0 votes
Gelika, Home Buyer, Colorado
Mon May 11, 2009
Thanks Terrell. We actually countered back a few hours after the bank countered. We haven't heard back from the bank and will hopefully hear something first thing tomorrow. Our Realtor (the one selling the house) got another offer in around 5:30 tonight and has to submit it tomorrow. We were wondering if we could do an addendum to our offer (the one we submitted after their counter that they will see tomorrow morning) and say that we accept their offer now? Our Realtor said that if the bank accepts our offer or counters before she gets the other offer submitted in the morning that we will get the house. Is that true or does she still need to submit the other offer.

I like what you said about not getting emotional. I have already gotten emotional and I am so frustrated right now. I know it is just a house but we have been bidding on houses for over a year now and haven't gotten one. We have put in offers and then next we know they are under contract without them coming back to us asking for our biggest and best.
0 votes
Terrell Will…, , Wheat Ridge, CO
Mon May 11, 2009
It is unclear from your question what the bank has done with the second offer. If they've already accepted it, then you're in a weaker position regardless of what you do next. It might still be a good idea to submit your offer so they have a backup to the other offer though. Accepted deals fall through all the time, for all sorts of reasons, so it could still work out.

As to whether you should have accepted the bank's counter or should resubmit or whatever...don't beat yourself up about it, but do learn from the situation and if you don't end up with this house, learn from the situation and plan things a bit differently next time.

In this market especially, way too many people try to get the absolutely, down to the last dollar best deal - often thinking they can 'steal' a property. Sometimes that happens. More often though they end up in your situation - regretting trying to save a few hundred (or even a few thousand) dollars when they end up with nothing.

My advice is to always try to be as unemotional as possible (which is really hard...) when you're making your offer. What can you afford? How upset will you be if you DON'T get the property? Make the best offer you can possibly make - and then move on if it doesn't work out. Even if the property is "just perfect", there's another one out there somewhere that's just as "perfect". Keep looking - you'll find it!

Good luck!

Terrell Williams
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more