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Old 04-16-2009, 09:48 AM
 
270 posts, read 903,922 times
Reputation: 201

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I'm so upset, I can't even think straight right now.

I am foreclosure condo shopping in what I consider to be a great location for myself and my personal needs (proximity to work, relatively safe neighborhood, etc...), but in an area that is "ice cold" - hit worst by foreclosures and only had 2 closings in the month of February.

I recently found a foreclosure that was perfect for my personal needs in terms of location, # of bathrooms, parking spaces, amenities, etc... My realtor says that it is priced $50K below comps.

I put an offer in within 3 days of listing. Yes, I do have an experienced buyers agent representing me.
The listing agent gave my agent a new story every 3 days as to why I had not heard back from the bank.
The listing agent said she submitted all the offers and I should hear back within 3 days, then she said that the bank rejected her paperwork because she handwrote instead of typed the form, then she said that the key was lost and they needed to find the key...so, 2 weeks later they now say they have 7 offers on the table and want us to submit highest and best offer!!!
I'm so upset this agent played these games in order to keep leading me on.

I don't think this property is worth $50K more. There were only about 2 comps and none within the last 3 months.
I won't be homeless if I don't buy this property as I own another house and this is a 2nd house for us.
I'm super busy at work and while I don't have time for my current commute, my energy level is wearing low in continuing this condo shopping process.

Did I find the deal of the century?

Should I submit a final and best offer that is above the asking price or walk away as I don't know what else she has up her sleeve?

Should I just ditch my entire condo search and suck up my 2.5 hour commute each day? I'm super busy at work and the workload is only increasing and I don't have time to do both the 2.5 hour commute and condo shop.
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Old 04-16-2009, 10:00 AM
 
982 posts, read 978,774 times
Reputation: 249
Welcome to the world of foreclosure shopping. What you save in $ can sometimes be very costly in terms of stress.

What should you do? What is best for you.

Offer what you think the house is worth (to you) and that's all you can do.

Regardless of what you think she did in terms of making excuses, it is what it is and they have 7 offers. They don't need yours. Do you need the house? If you do and you want it, make your best and final offer and pray it's accepted.
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Old 04-16-2009, 10:33 AM
 
Location: Barrington
60,336 posts, read 41,235,755 times
Reputation: 19449
Underpricing property to stimulate multiple bids is an effective strategy for many sellers.

Only you can decide if you want to play ball.
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Old 04-16-2009, 10:44 AM
 
28,461 posts, read 78,568,953 times
Reputation: 18592
The key here, as I see it, is that you have done some good homework and are pretty confidant that the property is not worth $50K more.

Maybe the seller needs / would like to get that, and they are willing to wait for a buyer that is less educated to offer it.

It does NOT mean that you won't get a call back from this seller when they eventually get fed up.

It certainly does NOT mean that there may be OTHER properties that are an EVEN BETTER value...
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Old 04-16-2009, 10:44 AM
 
1,196 posts, read 2,736,910 times
Reputation: 800
Personally, i would stay flat (@ what you previously offered), and walk away if need be. You said it yourself, there are other foreclosures in the area. If the agent want's to play games, let him. He is not the only horse in the stable.

This market is wide open, so the days of "bidding wars" are coming to a close. This property seems priced right, but what good is that if you end up bidding (possibly against yourself, you don't REALLY believe their are 7 other offers now do you?) over the amount that made it a deal in the first place?
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Old 04-16-2009, 10:47 AM
 
Location: Martinsville, NJ
6,163 posts, read 12,134,382 times
Reputation: 3978
Quote:
Originally Posted by srnyong View Post
I'm so upset, I can't even think straight right now.

I am foreclosure condo shopping in what I consider to be a great location for myself and my personal needs (proximity to work, relatively safe neighborhood, etc...), but in an area that is "ice cold" - hit worst by foreclosures and only had 2 closings in the month of February.

I recently found a foreclosure that was perfect for my personal needs in terms of location, # of bathrooms, parking spaces, amenities, etc... My realtor says that it is priced $50K below comps.

I put an offer in within 3 days of listing. Yes, I do have an experienced buyers agent representing me.
The listing agent gave my agent a new story every 3 days as to why I had not heard back from the bank.
The listing agent said she submitted all the offers and I should hear back within 3 days, then she said that the bank rejected her paperwork because she handwrote instead of typed the form, then she said that the key was lost and they needed to find the key...so, 2 weeks later they now say they have 7 offers on the table and want us to submit highest and best offer!!!
I'm so upset this agent played these games in order to keep leading me on.

I don't think this property is worth $50K more. There were only about 2 comps and none within the last 3 months.
I won't be homeless if I don't buy this property as I own another house and this is a 2nd house for us.
I'm super busy at work and while I don't have time for my current commute, my energy level is wearing low in continuing this condo shopping process.

Did I find the deal of the century?

Should I submit a final and best offer that is above the asking price or walk away as I don't know what else she has up her sleeve?

Should I just ditch my entire condo search and suck up my 2.5 hour commute each day? I'm super busy at work and the workload is only increasing and I don't have time to do both the 2.5 hour commute and condo shop.
First, the listing agent, while you didn't like it, did what she did to benefit her client. Looks like it worked. Was it illegal? Probably not, so long as she didn't lie to you. Was it sneaky? Yeah, probably at least a little. But remember who she works for and what her objective is.
As to what you should offer; What it's worth TO YOU. Don't worry so much about the other 7 offers. I tell my clients in situations like this to Make your offer truely the highest & best you feel the place is worth to you., so that if you find out that the winning bid was $100 higher than yours, you'll say, well they overpaid by $100, and I'm glad I didn't."
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Old 04-16-2009, 10:51 AM
 
Location: Central Maryland - Mt Airy
160 posts, read 762,113 times
Reputation: 61
I can't imagine having to endure a 2.5 hour commute. Good lord, is that each way? Wow!
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Old 04-16-2009, 10:58 AM
 
982 posts, read 978,774 times
Reputation: 249
Quote:
Originally Posted by cool rob View Post
Personally, i would stay flat (@ what you previously offered), and walk away if need be. You said it yourself, there are other foreclosures in the area. If the agent want's to play games, let him. He is not the only horse in the stable.

This market is wide open, so the days of "bidding wars" are coming to a close. This property seems priced right, but what good is that if you end up bidding (possibly against yourself, you don't REALLY believe their are 7 other offers now do you?) over the amount that made it a deal in the first place?
Bidding wars on foreclosures and REO's are definitely not coming to an end. In fact, they're quite prevalent, in some areas. Again, it's all local. But yeah, having 7 offers is not out of the ordinary in her situation.

Even if it's not a foreclosure, like MAM said, pricing low and bidding it up has become the new strategy (and quite effective in some markets)...it's that perception of a deal. If you think it is, chances are so do others. You're not the only horse in the stable either.
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Old 04-16-2009, 11:02 AM
 
270 posts, read 903,922 times
Reputation: 201
Quote:
Originally Posted by Debi18 View Post
I can't imagine having to endure a 2.5 hour commute. Good lord, is that each way? Wow!
Total daily commute is 2.5 hours. About 1 hour 15 minutes each way.
It sucks. I take a car, a bus and a train and then walk about 1/2 a mile.
I also have to get up at 5:45 AM in order to have a 2.5 hour commute, otherwise it would be closer to 3 or 3.5 hours.
Thanks for your sympathy.
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Old 04-16-2009, 11:03 AM
 
1,196 posts, read 2,736,910 times
Reputation: 800
Quote:
Originally Posted by MsFancyPants View Post
Bidding wars on foreclosures and REO's are definitely not coming to an end. In fact, they're quite prevalent, in some areas. Again, it's all local. But yeah, having 7 offers is not out of the ordinary in her situation.

Even if it's not a foreclosure, like MAM said, pricing low and bidding it up has become the new strategy (and quite effective in some markets)...it's that perception of a deal. If you think it is, chances are so do others. You're not the only horse in the stable either.

Which is all fine and dandy, but bottom line is, she should pay what she wants and not be influenced by any phantom "7" buyers or any other things that may or may not really exsist to drum up the prices. And if this agent is lying and doing funny business at this stage of the game, walk away, let another horse deal with that mess, it will (trust me) get worse with this joker before it gets better
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