Profile picture for southienc

Can the price of a listing be increased when multiple offers have already been submitted to the bank

Can the price of a home suddenly increase after several offers have already been sent to the bank??? This just sounds unethical.
  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.
April 06 2009 - Leesburg
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

If you are referring to a foreclosure property and depending on the location, condition and seller/bank, the listing price will be the starting point of, specially if there are multiple offers submitted to the bank. When you and your buyer's agent review  the location, condition, seller and the listing price, then you can decide on what the "bidding/offer" price can be to stand the best chance of getting your place.  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.
July 06 2010
Are you talking about foreclosed properties? If so, most banks if not all are looking to minimize losses wherever possible. The idea is to list the property at an attractive price to field as many buyers as possible. Some banks even require the listing agent to put the house on the market for up to 5 days before receiving any offers. They want to create a bidding war. Usually, when multiple offers are submitted, the banks will ask all buyers for the best and final offer. I have seen many foreclosure listings go over the listing price. Some even $10,000-$20,000 over asking price. The problem that can arise with this situation is the property not appraising for the amount that the bid went over asking price. Talk to your agent to make sure the bid you offer will be considered when factoring in what the home should appraise for.
  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.
March 30 2010
My clients and I experienced this a few times last year as Leesburg Va inventory began to get low. The price was bid up by a highest and best situation where there were 3 offers made and all 3 offers to buy went to a second round of bidding called a highest and best. In this situation the seller requests all purchasers to submit their highest and best offer and all are told there are other offers and only one will be chosen. Foreclosures or bank owned properties have this occur frequently.  My client won the bid  and then the townhouse ended up appraising for less than the buyer's winning bid. The bank was willing to reduce the sales price to the appraised value so it worked out well for my client. The appraisals are really what is going to limit the deal sometimes when properties are bid up above asking price.   Congratulations on your winning bid!
  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.
March 30 2010
Profile picture for zephyr1973
We just went thru this with the home we plan to buy if everything goes well with the inspection. 
The home was offered at $228k and was on the market less than 24 hours when my husband and I saw it. Apparently, several other people went to see it and liked it as well. We and one other person put an offer in the next day - our realtors told us it was the first time they had seen something quite like that since '04/'05 LOL! To be fair, it is an amazing home - completely gutted and renovated 1940's cape cod on a corner lot with a luxurious jet tub and master suite taking up the entire second floor! 

The offer we made was counter-offered - instead of selling the home for full price and giving us $5k in closing/points, they raised the price by $5k so we could get the cash for settlement without them losing anything. Come to find out, we "won" the offer war simply because we did not have a contingency to finding someone to buy our place since we have decided to keep it to rent. The other people were willing to give full price and were not requiring an inspection (idiots!), but because they needed someone to buy their place before they could buy this place, they "lost". 

I can only hope there are no more obstacles to this purchase, as it is truly an incredible find - we even ratified the contract LATE Saturday night so that they would take it off the market by Sunday, when they had three showings lined up - I definitely did not want to go thru another "offer war"!
  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.
April 06 2009
The price that a home is offered for sale is just that, an offer. It seems that the foreclosed homes that are hitting the market lately have inched upward a bit in their initial pricing, when compared to previously listed homes. Probably because banks are getting multiple offers that equal or exceed the listing price.

While it's still a buyers market, the rules are changing.
  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.
April 06 2009
It's called "highest and best", if you were selling your house and had mutliple offers wouldn't you want the most you could get? 
If it is a case of sitting on offers before responding to any offers, then probably unethical. HOWEVER, banks are not bound by the Realtor code of ethics and they call the shots on response time as well as acceptance terms.  The lenders are just trying to recoup their losses and the winning buyer is still probably getting a deal.
  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.
April 06 2009
 
Related Questions
Emails
Profile picture for Josh Barnett
Latest answer by Josh Barnett
August 09 | 1 answers
Zillow estimate questions
Profile picture for Pasadenan
Latest answer by Pasadenan
March 15 | 4 answers
I am looking for a home in the River Creek subdivision in Leesburg.
Profile picture for Susan Ford
Latest answer by Susan Ford
January 20 | 8 answers
houses for sale in Woodlea Manor, Leesburg, Va. 20175
Profile picture for wetdawgs
Latest answer by wetdawgs
June 04 2013 | 1 answers
Question about a buyer's realtor please.
Profile picture for Janice Copeland
Latest answer by Janice Copeland
January 29 2013 | 14 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.

Homes for Sale
  1. 20746 Dahlia Ct, Leesburg, VA Home For Sale
    20746 Dahlia Ct, Leesburg, VA 20175

     For Sale: $440,000

    • Beds: 3
    • Sqft: 1616
    • Baths: 2.0
    • Lot: 130680
  2. 0 Lynnford Ct, Waterford, VA Home For Sale
    0 Lynnford Ct, Waterford, VA 20197

     For Sale: $649,990

    • Beds: 4
    • Sqft: 4211
    • Baths: 4.0
    • Lot: 65000
  3. 238 Nottoway St SE, Leesburg, VA Home For Sale
    238 Nottoway St SE, Leesburg, VA 20175

     For Sale: $249,500

    • Beds: 3
    • Sqft: 1296
    • Baths: 3.0
    • Lot: 2178