Profile picture for user5914342

Banked Owned - Multiple Offers

I recently put in offer on a bank owned home. Listed price was 209K.

I was one of five competing offers, offered 10K over asking price, 2K in earnest money and was going to use a conventional loan with 5% down.

 My agent received an email from the listing agent saying the bank went with another buyer, but it was contingent upon an approved appraisal and whether or not the buyer wanted to proceed with the appraisal process.

 Was wondering if anyone is familiar with situations like this and the likelihood the current prospective buyer will walk away.

 Just really hoping, somehow, someway, the odds tilt in my favor!!!


Thanks for any insight!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 05 2012 - US
We think we've answered this question for you!
 
 

Replies (8)

If you put in your highest and best offer, as your agent should have recommended, then you wouldn't be 2nd guessing your offer now. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 05 2012
The appraisal is going to be done by the lender, and neither the seller nor the buyer have any control on that.  What could have happened is that if the other offer was higher than what the seller knows the property will appraise, there may be no sale.  Situations such as this occur and only cash buyers can deal with it. I am to assume that if the appraisal is lower than the offer, that the buyer either pays the difference or walks out and the same may happen to you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 06 2012

All purchase agreements that are going to be finance are going to be contingent on an appraisal for the purchase price.  If the home does not appraise then the seller (bank), has the option to lower the price to that amount and proceed. 

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 06 2012
this is a common enough situation, when this happens each buyer should make their best and highest offer based on the value of the property.
regardless of how much another person offers for a property the bank will request and obtain an appraisal. 
If the property does not apparaise at the expected price, the buying bank would not approve the sale .Also if there are repairs to make and the selling  bank refuses to make them this would cause the sale to not get to table.
These days most banks refuse to make repairs.
So is any bodies guess if this buyer is going to walk away from the deal.
It will take a while before you know, you can wait or look at other opportunites.
Either way there will be other opportunities.
Best of luck.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 06 2012
One thing that I notice a lot with these multiple bid foreclosures, especially on owner occupied properties (single family homes, condos, or multi-units), is that the person who wins the bidding war was over-eager and under-prepared for the amount of work the property needed. They have little experience with rehab, freak out at the inspection report, the bank refuses to give any repair credits, and they walk. It's not guaranteed, but it happens more often than you might expect.

For other cheapskate bidders out there....most of these places are being listed under market. And if you are financing the property, bidding the extra $5,000 will probably win you the home and cost you 20 bucks more a month. If you go cheap on your bids, especially on desirable places, you might as well rent and spend your evenings watching HGTV.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 12 2012
The buyer is smart using that strategy aggressive yet safe at the same time. This is a formula we have used when representing buyers on bank owned/short sales.

The cash / no contingency move is aggressive and works as well, but not recommended to novice and definitely not first time buyers. There is safety net with that strategy, similar to purchasing at auction.

In EVERY market there are deals to be had, but you should only pursue the ones that can be obtained through sound due diligence.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 12 2012
you never know... keep an eye on the property all kinds of reasons a buyer backs out...

also you earnest money was very weak to a bank offer with multiple offers... next time write a 'stong' offer on your first offer... banks typically only work one offer they feel is the strongest and will close...

good luck
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 13 2012
I agree that buyers walk for many reasons and it is always good to keep your eye on properties you really want!  Have your agent let the listing agent know that you still want the property.  In the meantime, keep looking.  You never know what great home might pop up for you tomorrow!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 14 2012
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
Can't get the keys!
Profile picture for Pasadenan
Latest reply by Pasadenan
6 days ago | 7 answers
How much does a Home Inspection cost?
Profile picture for Mike Opyd
Latest reply by Mike Opyd
July 08 | 16 answers
Can the seller keep the earnest money after inspection?
Profile picture for zuser20140628062544588
Latest reply by zuser20140628062544588
July 06 | 18 answers
4 unit Multi family house
Profile picture for moneyclip8565
Latest reply by moneyclip8565
July 04 | 2 answers
Pre-approval good for FHA or Conventional?
Profile picture for Rick Phillips
Latest reply by Rick Phillips
July 03 | 15 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.