I am looking to purchase a foreclosed property, agent only accepting offers above asking price

Asked by Dario, Alpharetta, GA Wed Jul 30, 2008

I am looking to purchase a foreclosed property, but the listing agent is only accepting offers well above the asking price. How do you get around this and have your offer hit the banks desk?

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16
Lee Adkins, Agent, Roswell, GA
Wed Jul 30, 2008
Dario -
How do you know the listing agent will only present offers above list? I'm assuming the BANKS agent told you this. Their job is to get the most for the bank and if they do, they will get more business from the bank.

The foreclosure offer process is ever evolving and often now the listing agent submits your offer electronically to the bank - essentially a summary of the main points of the offer. So sometimes you will get a confirmation email/number that your offer has been submitted and is in process.

I HATE to give you the standard "get a Realtor, they can help you," but buying a foreclosure is not neccesarily something you want to go alone. At worst, pay an attorney to read over the addendum/addenda to be sure you are protected - any addenda will override certain things written in the purchase and sale contract such as inspection period, forfeiture of earnest money and basically all the bad things that can go wrong.

Additionally, beware of the "foreclosure craze" that has gotten people paying more for these properties than they are really worth - simply because it's bank owned. You should look at comps as well as the repair costs and be SURE that you are still within that. There are people now who will be the next foreclosure victims who have put more money into fixing than the property is worth.

I live and work in Alpharetta and have experience with foreclosures as well as relationships with some of the agents listing them in this area. I would be happy to give you a little more direct advice with no obligation if you like.

Lee
lee@leeadkins.net
404 966 3247
Web Reference:  http://www.leeadkins.net
1 vote
Wolfert & Wr…, Agent, Roswell, GA
Fri Jul 25, 2014
Hi Dario,
Often times they will price the home to generate multiple offers. I would suggest that you have an agent pull the comps for you so that you know what the value is. If you are able to pay above list price and the home is worth it then offer what you are comfortable with. Keep in mind that this is not just an investment but the home you will live in, if that is the case. Keep your offer as clean as possible and have your agent keep in touch with the listing agent.
0 votes
David Kilpat…, Agent, Alpharertta, GA
Thu Apr 10, 2014
This is typical in this fast, competitive seller's market, particularly where investor-buyers are scouring the listings every day to jump on short sales and foreclosures to "flip" them for profit. That's why you need an equally-competitive, aggressive agent who is also scouring the market FOR YOU to jump on those listings and give YOU the chance to make an offer quickly.

We do this every day. So many of our clients are frustrated to hear over and over, "The home you're asking about is under contract already." That's why we're super-focused on snagging the listings on behalf of our clients.
0 votes
Susan J Penn,…, Agent, Weston, FL
Wed Dec 25, 2013
Foreclosures are under multilpe offer situations, highest and best offers
0 votes
Tina Lombardo, Home Buyer, Warren, MI
Mon Feb 13, 2012
Can a bank reject an offer that is over the full price if it is the first offer that was recieved? This is a cash offer with no contingencies. (Michigan sale)

Tina

Tlltx@aol.com
0 votes
Matt Hermes, Agent, Duluth, GA
Tue Aug 19, 2008
Dario,

Simple answer:
1. Get a loan approval letter.
2. If you have not hired a real estate agent with foreclosure experience find one.
3. Go with the agent to the property.
4. Get your agent to provide comparable sales data on the area you are interested in.
5. Make an offer. Offer what you want, do not listen to what the listing agent states. He/she is working for the seller and is working on their behalf but must present any and all offers.

Good luck.
0 votes
Jim, , Seattle, WA
Sun Aug 17, 2008
I have bought a foreclosure from a bank, and am returning to Florida in a few days to buy another.

The best thing to do is to make your best offer, and if the bank doesn't get back to you within a reasonable time, move on. If you subscribe to RealtyTrac, you can get good info re: the property: loan balance, etc. In making an intelligent offer, I'd start with the loan balance, then add in some for improvements that may have been made by the bank.

Whatever you do, DO NOT offer above full asking price. That is crazy! Move on. People who do this are amateurs, and have no idea what they are doing. They are the same people that end up complaining months later when the value of the house has slipped below what they paid for it. What do they expect?

Good luck, hero.
0 votes
The Lewis Sa…, Agent, Grayson, GA
Thu Jul 31, 2008
It sounds like you are in a situation where there are multiple offers. The list agent will not disclose what the offers are but is telling you this to help you not waste time. Most banks want ONLY the highest and best offer. If you are serious, put in the highest offer you are willing to pay and see what happens. Good luck!
Web Reference:  http://saffordsells.com
0 votes
Nervous, Home Buyer, 02215
Wed Jul 30, 2008
Often times, banks put a property on the market and then wait until a predetermined date to look at all the offers and make a decision. Its actually a pretty smart move on the bank's part because theyll have a lot of data in which to make a choice. If all the independant offers are below asking, they might realize that they should just take what they can get. However if all the offers are well above asking, they know they have the upper hand and can negotiate or wait for even higher offers. As a bonus, people tend to increase their offers if they dont hear back from the bank immediately. If you already know that the bank has other offers and theyre all above asking, and you dont want to offer that much, you probably shouldnt get your heart set on this house...
0 votes
Dario, Home Buyer, Alpharetta, GA
Wed Jul 30, 2008
HI Lee,

Thanks to all who have chimed in on this, and fast I must add. Yes this was the agent for the bank who advised my agent and I that if we submit an offer it needs to be more than the asking price. And he did say he had other offers, but he stated that he was just sitting on them which I did not understand why. We are looking to submit an offer today and see what happens. Thanks again to all.
0 votes
Jeff and Gin…, Agent, Vero Beach, FL
Wed Jul 30, 2008
I agree that the law requires that every written offer must be presented with exceptions explained below. However, the listing agent may be giving you helpful information with his/her response. Ask if there are other offers on the table. The answer is very likely that there are and that those offers are above the listing price. You can ask that question also, but I am not sure if the listing agent is authorized by the seller to provide that information. Perhaps the owner (if this is a short sale or the pre-foreclosure short sale or the mortgage lender representative if this property is already owned by the bank) has directed the listing agent to let you know the status in general terms. Not sure about Georgia, but in our state, the listing agent needs to have that directive from the owner in writing for the refusal to accept offers under the listing price. Otherwise, all offers should be presented. So, ask the questions: Are there other offers? Can the listing agent tell you that those offers are above the listing price? Has the owner given written request to not receive any offers under listing price? Your buyer's agent should be able to help you with collecting this information.
0 votes
Sherril Mcin…, , Cobb County, GA
Wed Jul 30, 2008
You have received very sound advice here. Correct, by law, the agent is required to submit all offers to the seller, in this case, the lender. Our guess is that the agent had offers above the asking price and advised you accordingly.
Get a buyers agent - representation to you is free. There is a lot that goes on with any property, especially foreclosed properties. You need to be protected by a real estate professional, representing your interest.
0 votes
Louise Linds…, Agent, Alpharetta, GA
Wed Jul 30, 2008
Hello Dario

My suggestion is to have a buyer's agent for yourself, and have someone who knows the rules and is on your side. It's not up to the agent... they must present all offers. If the bank (the owner) is actually saying they won't accept any offer unless it is above the asking price, the asking price needs to be adjusted. The situation you describe sounds odd... these days the banks are happy to get offers and get the property off the books.
0 votes
Melissa W.…, Agent, Dallas, GA
Wed Jul 30, 2008
According to Georgia Real Estate Commission, an agent is required to submit any written offer to the seller. I would advise having a buyer's agent represent you when you are looking to purchase a property. It is a free service to you and that agent is looking out for your best interest not the seller. If you submit an offer in writing and the agent still doesn't take it to the bank, you can call the Georgia Real Estate Commission and report them.
0 votes
Eric Reid, Agent, Duluth, GA
Wed Jul 30, 2008
The agent is required to submit all offers that are submitted within the guide lines of the state addendums. The difficulty is that the agent is the portal to the lender, and you really can’t see what goes on behind the "curtain" Have you looked t the lender web site to see if the property is posted for sale and if you can submit the offer via the lender companies web site.
0 votes
Dawn Richard…, , 30092
Wed Jul 30, 2008
You will have to go through the listing agent. As for only accepting offers above the sales price. Most likely there are several ofers on the table and they are ablove listing price. The agent should have told you that there are multiple offers and to give your highest and best offer.

If you would like a Buyers agent to assist you I would like to interview for the job.
Web Reference:  http://www.sellsatdawn.com
0 votes
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