Most banks do not relay information back to the buyer or buyers agent about offers that are not accepted. In many cases, REO properties get many offers and the bank works with the "highest & best" offers.
It is possible - that an offer for full price without contingencies was submitted. Typically, banks price their REO's at the final selling price, taking into consideration the condition of the property as well as other factors.
How on earth could it be arranged for someone to move into a home that hasn't even closed yet? I can't help but wonder if the listing agent was also "representing" the buyer.
Now that we've had the day to think things over and view a few other homes, we realize that not getting that home was possibly a blessing in disguise, since it does need a lot of work.
I'd like to clarify for people viewing my question that there was no wrong-doing on my agent's part. Comparables were run, and in fact, our offer was very much in line with the market value of the property. Other houses in that subdivision have sold for around the same price as our offer within the past six months (and those houses were in excellent condition). Houses whose agents are ill advising them on current market conditions, have been listed for one year or longer with an asking price above $220,000. I wonder why those houses aren't selling?
I don't want to seem like a cheerleader for my client/agent/friend, but he knows his profession well, and because he knows it well, he's had a tremendous amount of national success and exposure for services he provides. I trust and value his opinions, guidance and experience in these matters. I appreciate the feedback, but don't appreciate the assumptions that my agent must have done something wrong.
The fact is, word came this morning that someone outbid us by a few thousand dollars. Their offer was accepted by the bank, who consequently, reduced their asking price by $30,000 over the past several months to keep up with current market conditions. Yes, we're disappointed that our offer was rejected, but the fact that we were outbid by a mere few thousand dollars speaks volumes about our offer not being that far off. Also, there were only two offers on the table for that property (a little gem that remained unnoticed for several months). Unfortunately, we lost our bid. However, things happen for a reason and the higher bidder proved just how much they loved that home. I'm quite sure they'll be very happy in it.
With the help of our agent, we are moving onto something better. A new offer has been drafted up on another property, and to be quite frank, we love it more than we loved the other one. After having seen it, we realize that the other home which is 17 years old and needs a lot of work, would have ended up being, not only a money pit, but a never-ending quest to fix it up.
Yes, indeed: Our lesson learned was that our agent knows what he's doing, we made an appropriate offer, and we lost fairly. Thank you for taking the time to reply.
Most buyers make the mistake of looking at the $150K as needing $30K worth of work therefore will offer $120K.
Remember, if it's a good deal, there will be lots of offers. Banks will choose the best one on the table and throw away the rest.
Try again. Pick from these: http://www.tampa4u.com/bank-owned-homes.html
Good luck. If you need help winning on these types of deals, let us know. We always win on multiple offer deals. It's a game and we know how to play it very well.
ONCE bank stated submit your best offer more than likely a bidding war took place.
Pending means another offer was accepted. Banks dont have time forward your sales offer rejected .
Purchasing a property from a bank vs. seller direct very different.
Thank you for your well-wishes. We certainly appreciate it, and hope luck will be on our side ;-)
We were warned not to fall in love with it in case someone else made a better offer, but we did anyway. We've been waiting, fingers crossed, to hear from the bank about our second offer, and each day that we didn't hear from them, we'd lose a little hope. We watched the asking price drop by $30,000 over the past few months, so we saw opportunity! We're just wondering if it's common or unheard of for a bank not to notify a buyer of a decision one way or the other. They were pretty darn fast countering our first offer. Thanks for your guidance. Happy Holidays!