offer rejected on REO property?

Asked by Realsearch, San Jose, CA Fri Jun 12, 2009

We bid for a REO and our agent said that 6 offers were received. We were
the second best and they (seller's agent) asked the top two to make a
better offer. We declined and dropped out of the race. Should the
seller's agent request this in writing or are all these negotiations
usually done verbally? If we drop out of the race, do we need to notify
the seller's agent in writing or a realtor form has to be filled out?
Please advise.

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Norman Alessandrini Warren Weston’s answer
Norman Aless…, Agent, San Jose, CA
Sat Jun 13, 2009
Hi Realsearch,
Vinicius gave you pretty much how it is I'll only add that the listing agent usually emails the banks request for " highest and best " so it kind of is in writing, but not all of them do it by all means I have had verbal negotiations with them all the time. As far droping out, since there is only one offer higher if you want the place just let your offer stand, if you don't want the place don't worry about cancelling it as I find most reo listing agents just throw them away and only keep the accepted offer ( it's sad but true) and besides your realtor should have put a date anywhere from 3 days to a week after which the contract is not valid.
Hope that helps, good hunting.

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Vinicius Bra…, Agent, Cupertino, CA
Fri Jun 12, 2009
Unfortunately this is becomming the norm with these REO agents and the multiple offer scenarios that they have.

You should be able to get an official rejection of your offer, however, I wouldn't hold my breath. From my experience asset managers are less concerned with following California Real Estate protocol or any other state protocols and just want to facilitate the sale of their assets.

Good luck on the next offer.

For other information regarding REO's see
0 votes
Brian Fortune, , San Jose, CA
Fri Jun 12, 2009
Your agent should have received notification in writing that your offer was rejected or that the seller made a counter offer. If for the sake of completeness and peace of mind ask your agent to give you a copy of the offer rejection and request it if he does not have it. If a written counter offer was received, again you can request a copy of your rejection of the counter offer.

The good news was you were second in the bidding and next time will hopefully be first.
0 votes
Rebekah Owen,…, Agent, San Jose, CA
Fri Jun 12, 2009
What did your agent advise you?

It would be unethical for me to advise you if you have an agent.

0 votes
Aileen La Bo…, Agent, Los Altos, CA
Fri Jun 12, 2009
Hi Realsearch,
If the bank has a specific offer for you to consider, they would need to counter-offer you in writing.
If they're 'fishing' to see what you will do it's common to ask you to try again, and that would be a verbal request.
You may want to ask your agent to get a signature on the original offer saying that it wasn't accepted so that it isn't floating around out there as a valid offer.
If you decide to drop out of the race, once again it might help if you get that initial on the refusal clause, but it's a formality - not necessarily critical.
Unfortunately the banks seem to almost write their own rules of operation in these matters, so your agent might ask for these documents and not get them.
Your offer will have had an expiry date on it. Once that date and time is passed, the offer is no longer valid anyway so you don't need to do anything further.
I hope this helps.
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Bill Mccord, Agent, San Jose, CA
Fri Jun 12, 2009
Is there a reason why you are asking these questions of total strangers, rather than your agent?
As already explained your experience is very common in todays market.
Incidentally, your offer was not rejected, it was countered. By not responding it was you who rejected the counter offer.
0 votes
Roland Barcos, Agent, San Jose, CA
Fri Jun 12, 2009
Hi Realsearch,
This is a question that you need to ask of your agent. If you don't have one, then I would advise getting a competent real estate agent that makes you feel comfortable and confident.
If you would like to set up an interview, please contact me.

0 votes
Glen Mitchell, Agent, Half Moon Bay, CA
Fri Jun 12, 2009
These days its typical to just hear back verbally that the bank wants highest and best offer. If your offer expired and had contingencies there isn't really anything you would need to do. Its always best to have everything in writing so although it doesn't sound necessary in your case you could do it as a formality.
Keep in mind the first offer may back out for some reason or not get financing. If you liked the place you may want to let your offer stand and see if they come back to you down the road.

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