Made an offer of 140,000 on a house listed at 141,000 and was told they can't sell it at that price. How can they do that?

Asked by Pammeesu3, Prescott Valley, AZ Fri Nov 6, 2009

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Jerry Cecil, Agent, Prescott, AZ
Tue Feb 16, 2010
Sounds like a short shale. These are tricky. When the homeowner sells the home and the market price is below what the homeowner owes on the orginal loan, then the bank must approve this. The approval process can be confusiug and slow. When the bank finally cranks out an accepted short sale amount, they really stick with it. Nothing lower can be accepted. They may have refused your offer simply because it would take more time to get lender approval. I say, don't loose sleep over it. Offer $141,000 or move on. There is plenty out there for you to look at.
Jerry Cecil 928-710-8656
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James Moyer, Agent, Mesa, AZ
Mon Dec 28, 2009
Sounds like a game to me. If you want to make an offer, make an offer at what you think the home is worth. You can make an offer at any price you want, it’s up to the seller to accept what offer they want to accept.
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James Gordon…, Agent, Hamilton, OH
Sat Dec 19, 2009
Sounds like a short sale where the listing agent is throwing out a price to get offers. You really need to provide a little more detail to get an intelligent answer.
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Richard Leci…, , Tucson, AZ
Sat Dec 19, 2009
Many of the nicer REO's do sell for much more then the asking price. I recently had a buyer offer 80K and the home was listed at 89,900. The bank came back with a counter offer of 94,500. Crazy!!!

Rich :Lecinski
Long RealtyCompany
Tucson, AZ
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Jerry Germa…, Agent, Prescott, AZ
Tue Dec 15, 2009
There are listing agents starting to offer bank owned property at very low prices trying to get lots of showing activity. If you make a cash offer for the asking price with a quick close you should be able to buy the house. In fact, the listing agent would owe a commission to the buyer's agent for bringing a "ready, willing, and able" buyer at the asking price. No buyers agent has pressed that issue on the listing agent. I am thinking of doing it myself by taking the listing agents in front of our Association of REALTORS on a complaint.
I believe that offering a property at one price and then saying that the bank will not sell at that price is unethical and shoule not be allowed. I am curious to see if other agents feel the same as I do.
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The Amy Jones…, Agent, Gilbert, AZ
Sat Nov 7, 2009
One other reason could be the type of financing you are using. If a previous offer was accepted that was being financed with either FHA or VA financing and the FHA or VA appraisal came in lower than $140,000, that lower appraisal will stand for 6 months for anyone using FHA or VA financing. If the seller is unwilling or unable to sell for that lower appraisal amount, the seller is now going to have to wait for a cash or conventional loan offer (or a seller who has enough cash to pay the difference between the appraisal and the accepted offer price.)

Just one other possibility to add to the great answers you've already received. It's really a question for your agent to answer. He or she will have all the details! Good luck!
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Dan Chase, Home Buyer, Texas City, TX
Fri Nov 6, 2009
Sometimes greed and stupidity overtake common sense. I would take that offer easily and figure even taking that loss it is as cheap or cheaper than waiting.

Wait awhile. If the house is still available you may find they will take an offer much lower. The other catch I keep reading is people do not like FHA based offers. Could that be your problem here?
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Christin Kin…, Agent, Prescott Valley, AZ
Fri Nov 6, 2009
I would tend to agree with Brad. This question has been answered many times, so I will keep it short. Unfortunately agents listing short sale properties can not guarantee what the bank will actually take. They set the price based on their opinion of value and unfortunately the bank may see the value otherwise and not be willing to sell the home for the price the home is listed. In my opinion your agent (if you have one, otherwise a good reason to find one) should have educated you as to the terms and headaches that you are up against in making offers on short sales. You can buy a great property at a great price but it is your agents duty (any buyers agent offering on short sales) to educate their client as to the process and the fact that you may have to pay more than the list price to actually buy the home you love. This is not uncommon; all agents should have this talk with their clients. We are the educators!
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Brad Bergami…, Agent, Prescott, AZ
Fri Nov 6, 2009
Sounds like a short sale. Welcome to real estate 2.0...the rules have changed. There are listings out there that can't be sold for the listed price. It happens sometimes happens that the seller doesn't know what the payoff amount is until they realty look at the numbers.
Bottom line is you can't make a buyer buy and you can't make a seller sell..
Sorry for the loss.
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Sue Riddle, , Prescott, AZ
Fri Nov 6, 2009
Sellers do not have to accept any less than they are asking for their homes. The home is their property, after all. Most sellers would not quible over $1000, but they do have the right to hold firm on their price. If you really want the house, $1000 bucks should not prevent you from going forward! Best wishes to you.
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Sandra Paulow, Agent, Pinetop, AZ
Fri Nov 6, 2009
Dear Home----

To little information provided to go on. Is this a Bank Owned or Short Sale? Is this just a starting bid price on a short sale? Can't help without more information. However, a seller has the right to say no to any offer regardless of how ridiculous their stand may seem.
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Don Tepper, Agent, Burke, VA
Fri Nov 6, 2009
Easy. Maybe they need $141,000.

Or maybe the house is worth $150,000 and they know it, and won't take a penny less than their asking price.

Or maybe your offer had some other terms and conditions that made it less desirable--that they couldn't accept a weak offer at $140,000.

Maybe they considered the $141,000 a teaser price, and anticipate a bidding war that will push the price higher.

Maybe they're the sort of seller who gets "insulted" (I hate that term and that concept) at any offer lower than the list price. I answer questions on Trulia all the time from buyers who ask about lowballing and my answer is: You can't read the seller's minds. One seller might be delighted at an offer 15% below the listing price. Another might decline an offer even a penny less than the listing price. You don't know.

There are lots of other possibilities, too. Ask your Realtor for guidance.

Hope that helps.
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