REO sale at less than our offer

[Racer5]

Hi all,

Long time reader (2006) but first time poster. First I would like to say thanks to Rich and all the regular posters over the years. I have learned so much from the varying viewpoints. Your insights have helped my resolve greatly over this part of the bubble years.

I was wondering if anyone had any opinions:

We made an offer on a bank owned in NC, but did not win the bid. It was one of those all-best-and-final-offers in by date X thing, multiple offers. Our deposit was 3% down and our approved financing doc @20% down 30-yr fixed was for an amount well above the offer price.

The house ended up selling for ~2% less than our offer. Apparently (still trying to find out more details) the listing agent was also the buyers agent.

I understand there are a huge number of factors involved (cash offer, buyers lender=same bank?, etc) that would need to be understood to really know what happened. Our agent is fine, lots of the typical experience but definitely nothing special, writes offers for things we find on the MLS. I don’t want to throw somebody under the bus for no good reason, but honestly, it seems like maybe we need the right person in our corner for stuff like this, I expect there is a good chance we’ll make another offer on an REO or short before its done.

Should I just chalk this up to luck? 2% isn’t that much of a delta.
Should I consider going directly to the listing agent in the future on this kind of deal? If that is the edge needed, so be it.
Should I consider finding an agent better equipped for dealing with short/foreclosure situations?

Thanks for any thoughts,
Racer5

[AK]

I don’t think this can be chalked up to luck … from what I’ve seen it’s pretty typical.

[AK]

I don’t think this can be chalked up to luck … from what I’ve seen it’s pretty typical.

[AK]

I don’t think this can be chalked up to luck … from what I’ve seen it’s pretty typical.

[AK]

I don’t think this can be chalked up to luck … from what I’ve seen it’s pretty typical.

[AK]

I don’t think this can be chalked up to luck … from what I’ve seen it’s pretty typical.

[Racer5]

AK,

My first thought was that the listing&buying agent did what was required to get their client (or whatever) into the property. I take what you say to basically mean the same thing.

Just thinking how unencumbered our offer was (besides not being more/full cash), it is difficult to imagine how even the best buyer’s agent could have done better, beyond maybe suggesting an offer that somehow could not be refused.

My thought now, take any offers on REOs/shorts straight to the listing agent. And still then, a big maybe. Clearly I don’t know anywhere near what I thought I knew about all this.

Thanks,
Racer5

[Racer5]

AK,

My first thought was that the listing&buying agent did what was required to get their client (or whatever) into the property. I take what you say to basically mean the same thing.

Just thinking how unencumbered our offer was (besides not being more/full cash), it is difficult to imagine how even the best buyer’s agent could have done better, beyond maybe suggesting an offer that somehow could not be refused.

My thought now, take any offers on REOs/shorts straight to the listing agent. And still then, a big maybe. Clearly I don’t know anywhere near what I thought I knew about all this.

Thanks,
Racer5

[Racer5]

AK,

My first thought was that the listing&buying agent did what was required to get their client (or whatever) into the property. I take what you say to basically mean the same thing.

Just thinking how unencumbered our offer was (besides not being more/full cash), it is difficult to imagine how even the best buyer’s agent could have done better, beyond maybe suggesting an offer that somehow could not be refused.

My thought now, take any offers on REOs/shorts straight to the listing agent. And still then, a big maybe. Clearly I don’t know anywhere near what I thought I knew about all this.

Thanks,
Racer5

[Racer5]

AK,

My first thought was that the listing&buying agent did what was required to get their client (or whatever) into the property. I take what you say to basically mean the same thing.

Just thinking how unencumbered our offer was (besides not being more/full cash), it is difficult to imagine how even the best buyer’s agent could have done better, beyond maybe suggesting an offer that somehow could not be refused.

My thought now, take any offers on REOs/shorts straight to the listing agent. And still then, a big maybe. Clearly I don’t know anywhere near what I thought I knew about all this.

Thanks,
Racer5

[Racer5]

AK,

My first thought was that the listing&buying agent did what was required to get their client (or whatever) into the property. I take what you say to basically mean the same thing.

Just thinking how unencumbered our offer was (besides not being more/full cash), it is difficult to imagine how even the best buyer’s agent could have done better, beyond maybe suggesting an offer that somehow could not be refused.

My thought now, take any offers on REOs/shorts straight to the listing agent. And still then, a big maybe. Clearly I don’t know anywhere near what I thought I knew about all this.

Thanks,
Racer5

[SD Realtor]

Racer do you know if it was a cash deal that was accepted? Should be easy to find out, go to the tax roll and take a look.

Sadly this sort of stuff happens in real estate and is quite unethical. Of course you cannot get the house but you CAN make things uncomfortable for that agent and his/her broker. You can go to the broker with your offer and show that broker the offer and ask what happened. If the broker has some compelling reason for why your offer was not selected such as an all cash offer or a very low loan amount, or perhaps no contingencies at all, or something like that, then that could help give you the answer you are looking for as well.

If there seems to be no compelling reason other then the agent simply wanted the best offer you can make a complaint to the DRE.

Understand this is alot of legwork on your part but if nobody complains about this behavior it WILL NEVER STOP.

I would strongly encourage you to follow up.

************

Sadly this happens alot and yeah perhaps you should consider going directly to the listing agent for an REO. However in doing so you should also abandon hope for quality representation. However if you have your wits about you, get a good physical inspector and ask someone knowledgeable for some help, then maybe it is the way to go.

Good luck with the next place and hang in there. There will be PLENTY more.

[SD Realtor]

Racer do you know if it was a cash deal that was accepted? Should be easy to find out, go to the tax roll and take a look.

Sadly this sort of stuff happens in real estate and is quite unethical. Of course you cannot get the house but you CAN make things uncomfortable for that agent and his/her broker. You can go to the broker with your offer and show that broker the offer and ask what happened. If the broker has some compelling reason for why your offer was not selected such as an all cash offer or a very low loan amount, or perhaps no contingencies at all, or something like that, then that could help give you the answer you are looking for as well.

If there seems to be no compelling reason other then the agent simply wanted the best offer you can make a complaint to the DRE.

Understand this is alot of legwork on your part but if nobody complains about this behavior it WILL NEVER STOP.

I would strongly encourage you to follow up.

************

Sadly this happens alot and yeah perhaps you should consider going directly to the listing agent for an REO. However in doing so you should also abandon hope for quality representation. However if you have your wits about you, get a good physical inspector and ask someone knowledgeable for some help, then maybe it is the way to go.

Good luck with the next place and hang in there. There will be PLENTY more.

[SD Realtor]

Racer do you know if it was a cash deal that was accepted? Should be easy to find out, go to the tax roll and take a look.

Sadly this sort of stuff happens in real estate and is quite unethical. Of course you cannot get the house but you CAN make things uncomfortable for that agent and his/her broker. You can go to the broker with your offer and show that broker the offer and ask what happened. If the broker has some compelling reason for why your offer was not selected such as an all cash offer or a very low loan amount, or perhaps no contingencies at all, or something like that, then that could help give you the answer you are looking for as well.

If there seems to be no compelling reason other then the agent simply wanted the best offer you can make a complaint to the DRE.

Understand this is alot of legwork on your part but if nobody complains about this behavior it WILL NEVER STOP.

I would strongly encourage you to follow up.

************

Sadly this happens alot and yeah perhaps you should consider going directly to the listing agent for an REO. However in doing so you should also abandon hope for quality representation. However if you have your wits about you, get a good physical inspector and ask someone knowledgeable for some help, then maybe it is the way to go.

Good luck with the next place and hang in there. There will be PLENTY more.

[SD Realtor]

Racer do you know if it was a cash deal that was accepted? Should be easy to find out, go to the tax roll and take a look.

Sadly this sort of stuff happens in real estate and is quite unethical. Of course you cannot get the house but you CAN make things uncomfortable for that agent and his/her broker. You can go to the broker with your offer and show that broker the offer and ask what happened. If the broker has some compelling reason for why your offer was not selected such as an all cash offer or a very low loan amount, or perhaps no contingencies at all, or something like that, then that could help give you the answer you are looking for as well.

If there seems to be no compelling reason other then the agent simply wanted the best offer you can make a complaint to the DRE.

Understand this is alot of legwork on your part but if nobody complains about this behavior it WILL NEVER STOP.

I would strongly encourage you to follow up.

************

Sadly this happens alot and yeah perhaps you should consider going directly to the listing agent for an REO. However in doing so you should also abandon hope for quality representation. However if you have your wits about you, get a good physical inspector and ask someone knowledgeable for some help, then maybe it is the way to go.

Good luck with the next place and hang in there. There will be PLENTY more.

[Author]

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