Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I put an all cash bid 20% less than list price on HOME #1. Freddie Mac countered slightly and I countered again. Then, one other person put in a bid...No response so far.
My agent advised that the first home wasn't such a good deal (manufactured home on land) So, I asked her to put an all cash offer on another house at 10% less than listed price.
Both houses are listed by her boss. She told me she would be too uncomfortable to put in my offer on HOME # 2 because she didn't know how her boss or the banks would feel about me having two offers at the same time.
I told her to go forward with my offer.
She sent tme an email stating that her boss said it is too late to put in an offer on HOME #2 because there are several offers in . (The house was listed only for 2 days.) I said I want to put my offer in and raised my cash offer to almost list price. Suddenly, she agreed to put in my offer.
The next afternoon she emailed me and said HOME #2 is in escrow with someone else. I don't think she ever put my offer in...
Any insight? I am very upset! Something seems very fishy to me...
I am new at making offers.
Thanks!
I put an all cash bid 20% less than list price on HOME #1. Freddie Mac countered slightly and I countered again. Then, one other person put in a bid...No response so far.
My agent advised that the first home wasn't such a good deal (manufactured home on land) So, I asked her to put an all cash offer on another house at 10% less than listed price.
Both houses are listed by her boss. She told me she would be too uncomfortable to put in my offer on HOME # 2 because she didn't know how her boss or the banks would feel about me having two offers at the same time.
I told her to go forward with my offer.
She sent tme an email stating that her boss said it is too late to put in an offer on HOME #2 because there are several offers in . (The house was listed only for 2 days.) I said I want to put my offer in and raised my cash offer to almost list price. Suddenly, she agreed to put in my offer.
The next afternoon she emailed me and said HOME #2 is in escrow with someone else. I don't think she ever put my offer in...
Any insight? I am very upset! Something seems very fishy to me...
I am new at making offers.
Thanks!
How can you put a bid in for two properties? Do you have the cash to purchase both if it came to that? If your offer on the first property did not have an out clause you could have been on the hook for both properties and if you backed out of one if both were accepted you were setting yourself up to be sued for breach of contract. If you are no longer interested in the property have you ragent write up a release. There may have even been time restraints in your offer so you could walk away with incident.
How can you put a bid in for two properties? Do you have the cash to purchase both if it came to that? If your offer on the first property did not have an out clause you could have been on the hook for both properties and if you backed out of one if both were accepted you were setting yourself up to be sued for breach of contract. If you are no longer interested in the property have you ragent write up a release. There may have even been time restraints in your offer so you could walk away with incident.
It sounds like these are both REO's - and even if both offers were accepted, the buyer would have to sign the addendums. If he doesn't sign, no contract ... so, with REO's, he did have an out.
Not necessarily agreeing with what he's doing, but it's quite possible and, especially with investors it does happen.
And to the OP, it's quite possible to lose on a bid for an REO even if you offer full list price as - especially in desirable areas - it's quite common for REOs to sell for over list.
Yes, both are REOs. It seems to be in a competitive area.
The banks have several offers for each of their properties. They get to pick and choose which offer they want. So, it seemed to me a smart idea to have several offers on different properties, and hopefully one of them will be accepted. If both are accepted, I can then decide which one is best for me. Then I can back out of the one I don't like. My agent assured me I have 7 days to back out for any reason without losing my deposit.
This is the third time I put in a good offer, I can close quickly, and I am all cash. Then...a bidding war starts and I am told by the agents that I am not allowed to know how much the other people offered.
Why do the REO banks get all the power? Unless I am really out-of-the-loop (as I said, this is my first home purchase) it seems that it is in my best interest to put in multiple offers and hopefully one of them will materialize.
And also: sometimes the listing agents hint at how much the highest bidder is, and othertimes they act shocked that I want to know and they tell me it is confidential information (obviously the banks like these bidding wars) There seems to be many games and I am not catching on too quickly.
Any insights from experienced REOs would be greatly appreciated!!
I do not think there is much to be gained by putting offers on multiple houses. If they are with the same broker / office they KNOW you can't close on all of them. If they are at separate offices there is no real added 'pressure' either, but there is the downside of having to 'back out' on offers...
If you are truly interested in a property and you really want to be "high bidder" you can TRY to submit offers that included language such as "this offer can be raised to best all others by $2000 (or whatever) upon presentation of other proof of qualified offer".
NOW the reality is the the managers of MOST lenders REO portfolios are NOT REAL GOOD at this sort of thing and will more than likely SCREW UP such a situation, but you can always try...
The ultimate goal of considering REOs (or other distressed properties) ought not to be to get overly wrapped up on the BARGAIN aspect of a property, but to keep a balanced view of the relative value of ANY property. Some REOs are simply not a good value, and those that are will command a better price...
Why do the REO banks get all the power? Unless I am really out-of-the-loop (as I said, this is my first home purchase) it seems that it is in my best interest to put in multiple offers and hopefully one of them will materialize.
A couple of issues. It is in your best interest, in theory, to put in multiple offers on multiple properties, but that may not be the best LEGAL thing for you to do. That can be a risky game to play. It's up to you to decide if you want to continue to play that game. If you play you need to revoke the other offers before they get accepted. This means having an agent that is highly organized and accessible. As soon as they hear you have an accepted offer they have to immediately revoke the other ones.
In Oregon we have clauses about financial representation. If they found out you had accepted offers on two homes without having the means to pay for two homes, that is financial misrepresentation. Out here, they'd get to keep your earnest money...if they found out.
The REO's get all the power because they are the ones taking the loss and are the seller of the property. Out here the REO's are offered well below market...for the most part. It's like at Wal-mart at Christmas time when they offer 10 tv's for $300 and people are pushing each other out of the way to get those 10 tv's. There is a lot of demand at those lower price points. This is just basic supply and demand.
I know you feel like you are putting in good offers, but you are focusing on the list price and not the market value. The banks are creating an auction on purpose. If you want to play the REO game, then it means you have to play by their rules. If you don't like their rules, then you need to move into the regular real estate market. Not as many bargains, but the rules are easier to play by.
This is probably a local issue, but in the Phoenix area, it is very common and legal to put in offers on multiple bank owned properties. The competition is fierce for REOs, so about your only chance is to put out multiple offers. There are at least a couple of outs here, as Chuckity said, you can just not sign the bank addendum for those banks that give you a verbal acceptance other than the one you want, or cancel before the bank returns their signed copy. Here, you can also cancel during inspection period for any reason as another out.
In my state you can recind an offer at any time if it isn't signed up by all parties. If you find another property before one is signed up you simply put in a written recision on the first prior to moving foward on the second.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
