Profile picture for tomg22

Dealing with an Investor...

Hey Folks, My wife and I are trying to be first time home owners. We put our first bid for a home in Berwyn Il. It was set in the high 160's and we submitted our starting bid at 10%. This is were it gets kinda frustrating. You see the home is officially owned by a big company. Not a bank, but one of these investor companies that buys up a boat load of houses at a time, flips them and sales them at a much higher price. We put our bid at 11am on Thursday and now its Monday evening and yet nothing. They told my agent we would hear something today, and gave a deadline of 5pm. But that was 3 hours ago. It's not helping matters that my agent is not really keeping me updated on things. I've called the agent and they tell me they will call me as soon as they hear anything. But that just not very comforting. At least if they said this is normal or kept me updated I would feel a bit more comfortable. So my question to you all is "is this or is this not normal protocal when dealing with mega bucks investors that own modest properties.
  • August 20 2012 - Berwyn
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Answers (4)

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Profile picture for SoCal Engr
You have two issues.

First, talk with your REA and ask them about how they expect the deal will play out (i.e., the question you are asking here, you should be asking of your REA).

Second...

"I've called the agent and they tell me they will call me as soon as they hear anything. But that just not very comforting. At least if they said this is normal or kept me updated I would feel a bit more comfortable."

What, exactly, do you expect to be "updated" about? Based on your post, nothing has been going on. At best, your REA might have called at 5pm and told you "well, they didn't call".
 
Sitting-and-waiting can be difficult. What might be more productive is "how to move forward?" And, part of that is deciding when to cut this house loose and move on.
  • August 21 2012
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It does not matter who owns the property. As in foreclosures the seller can take as  long as they want to respond even if there is a deadline to respond in the contract. They respond faster if they like the offer price and respond slower if they do not. By keeping your offer 'active' they can use it against you by telling you when another offer comes in that they have a multiple offer situation and give Best & Final. By doing that they end up with a higher price than if they just dealt with one offer at a time.
You may think 10% under list price is a decent price, but obviously the seller does not. Withdraw the offer or increase it. Have your agent do an market analysis on the property to see if your offer price is good or too low.
  • August 21 2012
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Hey Tom, unfortunately it sometimes does take longer than you'd like to get a response, for possibly numerous reasons. But that being said you could also give them an ultimatum that you want a response within the timeframe you select or you are pulling your offer, that way the seller can't shop your deal in hopes of a better offer coming in and at keast you'll know where you stand. I understand your frustration but this comes with the business.
  • August 20 2012
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Profile picture for JohnWilt

Yes, many of the investor groups seem to 'collect' offers before they accept or even counter an offer - that's problem number one.  Problem number two seems to be your agent is not communicating with you.  Even 'no response' is information you need to have.  There may be a breakdown with the listing agent in that they have not tried to get hold of their seller or have failed to get hold of their seller.  Either way, that's information someone should be passing to you.  Yes, there are times I cannot get an answer from another agent.  After 24 hours I call the broker.  Have your agent try calling the listing agent's broker.  Dont stop asking for info.  If you feel you are not being represented its time for you to get a better agent.

  • August 20 2012
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