[jmcconville]

Hi. ok I'm new here, and I found this site while researching Fannie Mae properties. My husband and I wrote an offer on a Fannie Mae property on Friday. When we sent in our offer, the listing agent did tell our agent that there was an other offer coming in that day also. But the listing agent also said that person was NOT pre-approved yet, and we are. Fast forward to Monday (yesterday) we got a request asking for our highest and best offer on the property. We offered 97% of asking price, and that is as high as I was willing to go.
My questions is (I know its totally unknown at this point) we do even have a shot? Does Fannie Mae ask this a lot of offers they get in? Are they trying to just get more money than what they really have it listed at?
The house did start at 218,500 and the price was dropped to 185K last Thursday.
I feel like they asked for more money just to see if we would pay it.. I'm beyond frustrated. We have been out bid on every house we put an offer in on.. one of them by 30K OVER asking price..

Any advice would be great..
Thank you in advance!!

[chiroptera]

What area are you looking in?
You posted about rentals in your other thread; are you looking to rent or buy?

[jmcconville]

This is the only thread I have. I was helping someone else with apartments near me.

I am looking to purchase in Washtenaw county. Saline/Dexter/Chelsea

[peppermint]

We put an offer on a Fannie Mae property back in March. The agent had just dropped the price and used the same highest and best line with us. There were no other offers. We didn't budge on the price, and our offer was accepted. We ended up passing on the house because it need $60K worth of work, and the price wasn't near good enough to absorb that kind of work.

Good luck!

[jmcconville]

Originally Posted by peppermint

We put an offer on a Fannie Mae property back in March. The agent had just dropped the price and used the same highest and best line with us. There were no other offers. We didn't budge on the price, and our offer was accepted. We ended up passing on the house because it need $60K worth of work, and the price wasn't near good enough to absorb that kind of work.

Good luck!

oh wow.. I agree, the listing agent may have been blowing smoke up our butts saying there was another offer.. we don't know and we will never know. I really liked this house and would love to own it but I'm trying not to get excited.. Hopefully tomorrow we will hear something..

[tjay]

Originally Posted by jmcconville

Hi. ok I'm new here, and I found this site while researching Fannie Mae properties. My husband and I wrote an offer on a Fannie Mae property on Friday. When we sent in our offer, the listing agent did tell our agent that there was an other offer coming in that day also. But the listing agent also said that person was NOT pre-approved yet, and we are. Fast forward to Monday (yesterday) we got a request asking for our highest and best offer on the property. We offered 97% of asking price, and that is as high as I was willing to go.
My questions is (I know its totally unknown at this point) we do even have a shot? Does Fannie Mae ask this a lot of offers they get in? Are they trying to just get more money than what they really have it listed at?
The house did start at 218,500 and the price was dropped to 185K last Thursday.
I feel like they asked for more money just to see if we would pay it.. I'm beyond frustrated. We have been out bid on every house we put an offer in on.. one of them by 30K OVER asking price..

Any advice would be great..
Thank you in advance!!

It is hell waiting to hear.... I hope it works out for you! I was outbid on my dream home a few months ago, and thought my offer was very solid. You really can't trust anyone, not even your own realtor. Good luck!

[jackmichigan]

Originally Posted by jmcconville

The house did start at 218,500 and the price was dropped to 185K last Thursday.
I feel like they asked for more money just to see if we would pay it..

In the case of multiple offers, it is rather commonplace for Sellers to make a request for "highest and best" offers. That doesn't mean that you need to raise your offer. You can stick with your original offering price, you can raise it to what you feel is appropriate, or you can withdraw your offer altogether.

But, it is not always the highest offer which gets accepted. If someone has contingencies in their offer, that could work against them.

The bad part is that you can never be 100% sure that there are truly multiple offers on the table...although more often than not there probably are. It's foolish for a Seller to otherwise take a chance with a single offeror.

[jmcconville]

Originally Posted by jackmichigan

In the case of multiple offers, it is rather commonplace for Sellers to make a request for "highest and best" offers. That doesn't mean that you need to raise your offer. You can stick with your original offering price, you can raise it to what you feel is appropriate, or you can withdraw your offer altogether.

But, it is not always the highest offer which gets accepted. If someone has contingencies in their offer, that could work against them.

The bad part is that you can never be 100% sure that there are truly multiple offers on the table...although more often than not there probably are. It's foolish for a Seller to otherwise take a chance with a single offeror.

Hopefully our offer was good enough and we only have the appraisal as a contingency. I have my fingers,toes,eyes and everything else crossed.
It just would be nice to get into a house quickly, each day I get closer to my due date and it has me stressed!

[belleislerunner]

Don't get stressed - just read a neat article about a lady who gave birth in a parking lot in AA. A tad inspiring. Big House baby: Woman gives birth in parking lot of Michigan Stadium

I think all the above advice is solid (i.e. don't raise your offer) -- it's just a ploy to get more.

[magellan]

Originally Posted by jmcconville

Hi. ok I'm new here, and I found this site while researching Fannie Mae properties. My husband and I wrote an offer on a Fannie Mae property on Friday. When we sent in our offer, the listing agent did tell our agent that there was an other offer coming in that day also. But the listing agent also said that person was NOT pre-approved yet, and we are. Fast forward to Monday (yesterday) we got a request asking for our highest and best offer on the property. We offered 97% of asking price, and that is as high as I was willing to go.
My questions is (I know its totally unknown at this point) we do even have a shot? Does Fannie Mae ask this a lot of offers they get in? Are they trying to just get more money than what they really have it listed at?
The house did start at 218,500 and the price was dropped to 185K last Thursday.
I feel like they asked for more money just to see if we would pay it.. I'm beyond frustrated. We have been out bid on every house we put an offer in on.. one of them by 30K OVER asking price..

Any advice would be great..
Thank you in advance!!

a) If timing is so important to you, why are you putting in offers on foreclosed homes? You realize the closing may take up to 3 months? If it happens at all (I've heard of that happening).

b) If the listing agent came back and said "make your highest and best offer," then the other offer did come in and you're basically in a bidding war. You may as well prepare yourself to pay full price+.

c) A listing agent can say that "another offer is coming in today," while dealing with potential buyers to help add urgency. It's certainly borderline unethical if it's not true, but that doesn't stop a lot of realtors. However, a listing agent can't misrepresent that there is a bidding war going on. That can be grounds for some pretty heavy disciplinary action from their board.

d) The house is a foreclosure listed at $218,500, which was most likely a greatly discounted price. And now it's at $185,00 and you offered $179,000. Has YOUR agent figured out for you what the market value of the house is? If it weren't a distressed property? That might help you in your decision making.

Buying foreclosed properties is a crap shoot. There are professional foreclosed property buyers who have it down to a science. The general public getting into the game is pretty much at the mercy of a screwy system. Hardly a good way to buy your dream home.

Good luck!