reo counter offer

Asked by Ann, Louisville, KY Wed Mar 4, 2009

I received a counter offer yesterday on an Reo property. This morning I saw on their website that they lowered the price and it's even lower than they countered to me. Why? This doesn't make sense?

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Dp2, , Virginia
Wed Mar 4, 2009
Although it could be a mistake, I suspect it's not. As Doug mentioned earlier, this isn't unusual. I've even heard of banks countering with the original list price--simply to see if they can get any buyers to bite (and some do).

Sure, it makes perfect sense. They're trying to see if you're paying attention (and you are--good job!), and they're always trying to get as much money as they can for every non-performing asset (your target REO in this case).

On the other hand, some banks have so many REOs that they're extremely overwhelmed, and some details end up slipping through the cracks.

Nevertheless, none of that matters from your perspective, because your bottom line is to obtain that property at what you've determined to be a reasonable price.
2 votes
Dallas Texas, Agent, Dallas, TN
Sat Feb 19, 2011
Without review all the documents and etc difficult to render an opinion HOWEVER your buyers agent can assist you

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
Mark Atteber…, Agent, Louisville, KY
Sat Feb 19, 2011
While it could be an error, you also have to consider the source. There are a lot of Foreclosure websites that get their feed of information based on public records and not the MLS. That is possibly an old record of "the amount to be raised" through the commissioner's auction instead of an actual list price.

Have your Realtor check your local MLS and verify there is not a price change. Just because something is on the internet, does not make it true.

Good Luck!
Mark Atteberry, SG Priest Realtors
Personal Service, Expert Results
0 votes
Doug Garner, Agent, Independence, KY
Wed Mar 4, 2009
This is not a common occurrence but not unusual either. The bank owned properties are usually handled by an asset management company who takes care of disposing of the banks properties. In some situations the person at the asset management company who is in charge of the marketing part of the property is not the same person who is in charge of reviewing offers. They are dealing with so many properties even their in-house communication is not always the best.

What many agents refer to as a counter offer from an asset management company is not really a counter offer at all. Any kind of offer. counter or otherwise, has to be in writing and signed, in order to be binding on the parties. Asset management companies generally respond to offers that they are not willing to accept by suggesting to the prospective purchaser a price and terms that they may be willing to accept, if the purchaser chooses to make that offer.

If the asset manager "agrees" to an offer, then the purchasers signed offer is forwarded to the asset manager presents the offer to the bank, or the banks attorney-if-fact for a valid legal signature. The purchasers "accepted" offer is not valid until the purchaser has received the original signed contract back in their hands.

My suggestion is to offer the price that you are willing to pay. If you get it GREAT, if not go on to the next property.
0 votes
Champion Pro…, Agent, Louisville, KY
Wed Mar 4, 2009
You def need to talk to the agent that is helping you. It looks to me like the folks at the bank are not on the same page.
0 votes
Keith Manson-…, , Milwaukee, WI
Wed Mar 4, 2009
It would appear there are two people working the case. Is the property listed with the same realtor? Is your offer have credits that may affect the price? If would the same realtor I would counter the offer attaching the new listing and call the listing agent to find out whats up. If you have a cash offer I would go off the new listing price and make your offer. Again confirm with listing agent.

Hopefully you are working with a buyers agent!
0 votes
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