offer in. now we play the game…(REO)

[seashaw]

put an offer(approx 2% less than listed price)in today on a newly listed house that is priced to sell(IMO, based on comps and current inventory). got a auto generated response from listing ‘agent’ w/in 12 hours telling us to bring our ‘highest and best’ and there are multiple offers on the table.
we want this house, so we had our agent add another 5k to offer. we are also coming in w/ a clean offer and almost 20% DP. if we remain in the running we still have a bit of $ wiggle room in case they counter. also they stated that whatever offer they accepted will not be adjusted based on the appraisal(Boooo! to them i say re. this!)

is this standard/common practice when dealing w/ an REO property?
are we going about this in the right way?

we have a firm $ limit and although we love this property and it’s perfect for us(and a unique find for this price range/location),we will walk away from a crazy $$$ bidding war if need be.

just curious what those more experienced have seen as far as the outcome with multiple offers/REO dealings etc…we are total newbies and this is our first offer on a place. any and all feedback will be appreciated =)

PS-this site as been invaluable to us, so thanks, you guys rock!

[Effective Demand]

If priced right why offer 2% less, especially on a newly listed property.

Assuming that all the homework was done and you decided that 2% less was the proper number. Why, after getting an auto generated response by the other side, did you immediately add 5k to your offer?

IMHO, Just go out with your highest and best next time and leave it at that.

[Effective Demand]

If priced right why offer 2% less, especially on a newly listed property.

Assuming that all the homework was done and you decided that 2% less was the proper number. Why, after getting an auto generated response by the other side, did you immediately add 5k to your offer?

IMHO, Just go out with your highest and best next time and leave it at that.

[Effective Demand]

If priced right why offer 2% less, especially on a newly listed property.

Assuming that all the homework was done and you decided that 2% less was the proper number. Why, after getting an auto generated response by the other side, did you immediately add 5k to your offer?

IMHO, Just go out with your highest and best next time and leave it at that.

[Effective Demand]

If priced right why offer 2% less, especially on a newly listed property.

Assuming that all the homework was done and you decided that 2% less was the proper number. Why, after getting an auto generated response by the other side, did you immediately add 5k to your offer?

IMHO, Just go out with your highest and best next time and leave it at that.

[Effective Demand]

If priced right why offer 2% less, especially on a newly listed property.

Assuming that all the homework was done and you decided that 2% less was the proper number. Why, after getting an auto generated response by the other side, did you immediately add 5k to your offer?

IMHO, Just go out with your highest and best next time and leave it at that.

[j]

Sick to your budget.

Remember how we got to where we are. If the Fed stops buying loans, rates will skyrocket and home values will plummet, and you will be stuck with a house you can’t pay for or sell. 16% of Californians aren’t making their payments, so there will be plenty more chances to buy.

Sounds like a sells gimmick; most people get attached to a house and lose their heads. As I said, remember how we got here.

[j]

Sick to your budget.

Remember how we got to where we are. If the Fed stops buying loans, rates will skyrocket and home values will plummet, and you will be stuck with a house you can’t pay for or sell. 16% of Californians aren’t making their payments, so there will be plenty more chances to buy.

Sounds like a sells gimmick; most people get attached to a house and lose their heads. As I said, remember how we got here.

[j]

Sick to your budget.

Remember how we got to where we are. If the Fed stops buying loans, rates will skyrocket and home values will plummet, and you will be stuck with a house you can’t pay for or sell. 16% of Californians aren’t making their payments, so there will be plenty more chances to buy.

Sounds like a sells gimmick; most people get attached to a house and lose their heads. As I said, remember how we got here.

[j]

Sick to your budget.

Remember how we got to where we are. If the Fed stops buying loans, rates will skyrocket and home values will plummet, and you will be stuck with a house you can’t pay for or sell. 16% of Californians aren’t making their payments, so there will be plenty more chances to buy.

Sounds like a sells gimmick; most people get attached to a house and lose their heads. As I said, remember how we got here.

[j]

Sick to your budget.

Remember how we got to where we are. If the Fed stops buying loans, rates will skyrocket and home values will plummet, and you will be stuck with a house you can’t pay for or sell. 16% of Californians aren’t making their payments, so there will be plenty more chances to buy.

Sounds like a sells gimmick; most people get attached to a house and lose their heads. As I said, remember how we got here.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[SD Realtor]

We are seeing more of that. We had a case like that with one property we recently sold where we had alot of offers, a few of them were more then we felt the home was going to appraise for. A couple of the selling agents (buyers agents) asked us what they could do to seperate thier offers and removing the appraisal contingency was one of them. Alternately coming in with a bottom line on the appraisal is okay as well. For instance, say that as long as the home appraises at or above $x then you will still buy the home, even though your offer may be above that number.

Also, if someone does say highest and best offer, we didn’t you submit your highest and best offer? That is a little puzzling to me.

The problem as inventory continues to tighten up is that if you see a place you really really want to buy, chances are that others will also. How can you seperate yourself and/or increase odds you will be accepted without making an outlandishly high offer?

– come in with as much cash as you can.
– show proof of the funds.
– it may not hurt to have your credit score with the preapproval letter.
– if you have DU approval, send it with your preapproval.
– maybe have your mortgage broker call the listing agent and tell them how strong you are.
– do NOT include a termite inspection request, or if you do, don’t ask the seller to pay for it.
– do NOT include a request for a home warranty or if you do, don’t ask the seller to pay for it.

Also alot of the higher volume guys use TAZA which is a fully automated system for submitting offers and stuff. Reaching certain brokerages and agents is tough so you may not get many chances or counter offer opportunities.

Remember that right now is a tough time to buy so yes be prepared to walk away. Time is on your side and learning the process will help you for future homes.

[Author]

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