Limiting the Number of Offers on a Bank-Repo

Asked by Rqf, Sacramento, CA Tue Mar 3, 2009

Can a Listing Agent limit the number of offers it submits to the bank? If there was a contract, i.e. they only want to see the top 3 offers, is there a way we can see the contract?

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8
Vicky Chrisn…, Agent, Purcellvile, VA
Fri Mar 6, 2009
Rqf - perhaps the blog posts referenced below will help you. This is frustrating, I know. The reality is that banks are pricing aggressively. Sometimes (in my opinion) too much so. It does 2 things that are bad:
1. Buyers, not knowing any better and sure their agents are wrong, believe they can buy the property if they offer the asking price. But, they often lose the property, because it is deliberately priced to generate multiple and escalating bids.
2. Properties priced too far below "true" market value actually never get to market value when they sell, and this pushes comps down further putting downward prices on the properties in the neighborhood.
This frustration is COAST TO COAST. You are not alone. Hang in there. Your day is coming.
1 vote
Ute Ferdig, Agent, Newcastle, CA
Wed Mar 4, 2009
Hello Rqf. No, a listing agent does not have to show the agreement he/she has with the bank/asset management company to just anybody who wants to see it. However, the LA may have to show it to the assocation//board of Realtors if the board receives a complaint and the agent claims that what he/she is doing is based on the listing agreement. Many times, there may not be any written instructions, but listing agents will follow the verbal instructions they receive from their asset managers.
1 vote
Erin, , South Lake Tahoe, CA
Wed Mar 4, 2009
Dear RQF: Some banks ask the listing agent to submit only the highest and best offer to them and wait for one to two weeks after the home is published on the MLS to get multiple offers before they submit the highest and best. It is the listing agent's job to negotiate the highest and best offer for the bank and they do a great job of that.

In today's market, your offer needs to be your highest and best and it needs to be higher and better than anyone else's offer if you want that bank owned home. This is especially true for homes in good condition and priced right and well as for homes in poor condition and priced under market value for their condition. I have seen cases of buyers with financing with a offer price higher than other all cash offers being rejected. The banks just want to "unload" this property off of their books as soon as they possibly can.

Unless you absolutely have to have this home, there are many others on the market. There are other strategies your agent could use to make sure you are not bidding against so many buyers.

Some Buyers I have run into have an unreal expectation of the bank owned real estate market, and this is based solely upon what they read and hear in the news. A great agent should help educate you in today's market, or you can just let the market itself educate you.

This may not be what you want to hear, but I hope this helps.
Web Reference:  http://SoldByErin.net
1 vote
Brian, Home Buyer, California
Fri Mar 6, 2009
I'm having the same problem... however, prices keep decreasing. Waiting a year or two will help out immensely!!!

Find out what the property was worth ten years ago. Multiply that number by 1.344 (3% a year increase- what US home prices should go up with inflation) and use that number. You'll find most properties are WAY over-priced.

Japan was in a similar situation to what the US is in now back in the 1990's (bad banks with toxic assests, politicans not understanding basic economics, a bubble economy & more) . Japan had 15 years of decreasing property values. Don't be surprised if the US has at least 10 years of the same.

Now of course houses can't drop 100K every year and still be worth something in ten, but houses can drop 100K-200K over a year or two and then keep dropping 5% a year in a deflationary cycle (like the Great Depression, a cycle where dollars become worth more but are harder to get). Research deflationary cycles, stagflation and fiat currencies and you might just want to withdraw your bid on that house.

Wait a year or two more if you can.
0 votes
J R, , New York, NY
Wed Mar 4, 2009
Great advice, Elizabeth. There is no reason this potential buyer should be allowed to see the contract. HIs problem, right? If he wanted a good deal he should be a Pro like us!!!!!!!!!!!!
~~~~~~~~~
I've never had anyone show me a contract, either, and I'm a "Pro". The LA follows the banks' rules.
0 votes
Conny Deroot, Home Seller, Beverly Hills, CA
Tue Mar 3, 2009
Great advice, Elizabeth. There is no reason this potential buyer should be allowed to see the contract. HIs problem, right? If he wanted a good deal he should be a Pro like us!!!!!!!!!!!!
0 votes
Rqf, , Sacramento, CA
Tue Mar 3, 2009
Terry:

Just curious about your statement, "There are ways to get your offer noticed." How?
0 votes
Terry O'Call…, Agent, Sacramento, CA
Tue Mar 3, 2009
The rules are different with REO's. The Bank can instruct the listing agent to only present the best ( the bank can define what that means, top five, etc..) so that they are not overwhelmed. In the Realtor world , normally we have to present every offer we receive until the property is sold. It is a different climate out there for now. The best approach is to find an agent that knows how to structure an offer that will be considered. Knowing what the REO agent's guidelines are is a big help. There are ways to get your offer noticed.
Web Reference:  http://andreaandterry.com
0 votes
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