A Newbie Mistake I Think
I just put in an offer on an REO. It was bought by the bank in June for $51,000 and was offered for $61,000. Our offer was $30,000. The listing agent pursued us with numerous calls to get this offer. We included the required proof of funds letter from a bank. This letter sd that we were approved for $54,000. The agent called us back and sd that there was another offer for $50,000. This after months of no offers. When I sd that we would not counter she sd "well is just a verbal offer right now, they haven't written it yet."
Do this sound suspicious or it happens all the time. Should I have gotten a new letter from the bank with just the amt shown that I am willing to pay? I feel like the agent is just fishing for a higher offer.
Welcome to the wonderful world of SOME real estate agents. You are being scamed. Call the agents Broker.
"The more I can get from this sucker the bigger my paycheck"
Good Luck
Thanks, I think I will call the bank tomorrow to see if the offer was even submitted. She told me the offer was submitted this morning, but then called at about 2 to tell me about the other offer. If it is my offer, I should be able find out what time it was submitted right?
Hi,
Bogus offer for sure. I once offered money on a lot of land no one was interested in. The broker came back with a higher offer from someone else. I said show it to me. I then told them to rip up my check. Guess what? I got it for what I wanted. Play hardball with these idiots. if you know the market value as is and completed, you should know if the other offer is right. If there's room, and the other offer is legit, bump it up, or wish the buyer good luck. Stick with your instincts. Good luck!
Quote:
On 2003-10-20 22:09, k564088 wrote:
I just put in an offer on an REO. It was bought by the bank in June for $51,000 and was offered for $61,000. Our offer was $30,000. The listing agent pursued us with numerous calls to get this offer. We included the required proof of funds letter from a bank. This letter sd that we were approved for $54,000. The agent called us back and sd that there was another offer for $50,000. This after months of no offers. When I sd that we would not counter she sd "well is just a verbal offer right now, they haven't written it yet."
Do this sound suspicious or it happens all the time. Should I have gotten a new letter from the bank with just the amt shown that I am willing to pay? I feel like the agent is just fishing for a higher offer.
I don't know if it was the agents doing or not. If the bank knows you can qualify for more than what you are offering, the bank will let the agent know to decline it.
Even if the bank hasn't received any offers, in my opinion, I don't think there is any wrong doing here.
Of course if the agent didn't submit to the bank, then I can see your point. But the agent would have let the bank know of the information about what you qualified for, and the bank would simply let the agent know to decline.
Also, on bank REO's the agent is already getting less, so they must deal in volumes. If the agent is halfway intelligent, I wouldn't worry on one deal. If he/she knows you're a player in this market, they'd be more than happy to deal with you on volume.
Lenders with REO's offer a smaller commission to agents for the banks inventory. It's usually non-negotiable for the broker/agent. Broker/agent knows that volume is the key here. I don't think the agent did this. I really think the bank told the agent to decline it.
Beau
[ Edited by bjsmooths on Date 10/20/2003 ]
Hey,
I think everyone is watching too many X-Files reruns! Folks...there is no giant conspiracy.
Most likely the Bank told your agent there was another offer. Your agent is just the middle person.
But the truth is...it doesn't make any difference, anyway. Your offer is $30k. Unless you just picked the number out of the air, there must be a reason for that number. If your offer gets rejected, then wait two weeks and send it in again and again and again and again. That is the way this is done.
In the mean time, go find another deal.
Why would you send proof that you are approved for $54,000? To me, you shot yourself in the foot. The real estate agent pursued you and that information was not needed at that time. In the 70's I purchase 62 houses from the REO officer of the local bank and not once did I use a broker. I would give an offer of what I felt the property was worth before fix up. The REO officer would accept and my offer had a 90 day close clause with me having possession upon signing and I took the risk of rehabbing the property. The local branch manager, where I had my checking account, would loan me the fix up money on a 120 day signature loan. Things have change now, but the point is, the more people between you and the decision maker, the harder it is to make a deal. Everybody has there own agenda.
Good luck, by the way, don't play poker. I mean this in a kind way.
Chuck
I sent the pre-approval letter because I didn't know any better. I called a bank and asked how much we could get approved for. I hung on to the letter until something came up. Since we are only willing to pay 30K, we didn't think the amount on the letter mattered. Now we know better. Live and learn right?
Thanks for the info.
I just had an offer accepted on a REO that I have been tracking since June. My first low-ball offer was rejected since they DID get an offer for the asking price. But that offer fell through. It was put in by a first time home-owner and they were turned off by their inspection. Good for me, since it's all cosmetic.
When I made my second offer, I submitted it a little higher than my first offer, and the bank countered with only $4K more than my offer.
This was my first REO and in retrospect I probably could have gotten it lower. But this is a great property well below market so I am pretty happy since this is my first REI.
Part of my success, I believe, was that my lender primarlily only does investment loans and they were more than helpful with my offer. For instance, when the MLS listing said, "submit pre-qualification letter with offer" my lender gave me a generic letter that said I was a good customer and paid my other payments on time. That was good enough for the offer. If my lender didn't tell me that, I would have not known and probably done the same thing you did.
The way I see it, we all got to start somewhere and we are all going to make some mistakes when we start out. How will you learn without trying?
Interestingly enough, I was reading something about people being successful, (I wish I could remember where), and one thing really made a lasting impression on me. Don't be too hard on yourself why you are learning the trade. Mistakes happen and you'll be better for them. We are not perfect! This probably sounds hokey, but I stopped worrying about the fact that I could have gotten my first property for about $5K, and instead started focusing on the fact that I finally did it! I got me a property! And just imagine the potential!
Good luck!
[ Edited by tortio on Date 10/25/2003 ]