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Answers (10)
- Marcin Talaga, "Wadowice"
- Contributions:46
Just out of curiosity, did you make a direct offer to the listing agent or did you go through your buyer's agent? I'm going to assume you contacted the listing agent directly and he asked you for a verbal offer. As an REO agent, he/she is going to try to get the price as high as possible and it could be that the home went to auction, didn't sell, and he is now still listing it. Get yourself a good buyer's agent who has experience with REO's and they'll make sure any offers you put in are done so properly, like in writing, and let them fight the listing agent for you.
Marcin
- Christopher Block, "RosevilleMNREstate"
- Contributions:107
Michael is right on COME ON AGENTS GEEZ! It is called a reserve auction and it is a complete waiste of time from a buyers perspective. Typically you have to pay a 1% fee just to use the auction!
The seller owes you NOTHING, just like a traditional sale they don't have to dislcose anything.
So, just like everyone else is saying you need to put an offer in writing and see if you get a written counter offer. Then you go from there.
The seller owes you NOTHING, just like a traditional sale they don't have to dislcose anything.
So, just like everyone else is saying you need to put an offer in writing and see if you get a written counter offer. Then you go from there.
- ConnieK_Oklahoma
- Contributions:2899
Put it in writing. You may not get a written response but you certainly won't get a written response to a verbal offer. Just because the agent thinks they won't take it doesn't mean they won't. They might not take it simply because it's verbal. You don't officially know the agent submitted it in either case, but at least if you have a written offer you have a better starting point the agent that maybe would/maybe wouldn't submit the verbal is more likely to turn in the written. It shoudn't be a common practice, and I don't claim to know how common it is or isn't to not submit an offer, but having it in writing gives you something to follow up on, etc.
Typically when it's a REO, the agent submits the offer through some online software or emails it to the bank. ask for proof of the submission if you are worried. If nothing else...asking for proof might ensure it gets submitted.
Typically when it's a REO, the agent submits the offer through some online software or emails it to the bank. ask for proof of the submission if you are worried. If nothing else...asking for proof might ensure it gets submitted.
- Dan, "the_country_hick"
- Contributions:4694
It could be that at auction the bank had a minimu8m bid. Once they did not get it the PMI kicks in and now the bank can afford to sell at an even lower price. When the mortgage insurance pays the bank on a defaulted mortgage they need less money for a property. In fact getting less can net them more.
- SoCal_Engr
- Contributions:5663
@ Mike...
Perhaps not for the auctioneer, who gets his min fee whether or not the property sells?
Perhaps not for the auctioneer, who gets his min fee whether or not the property sells?
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
Obviously, the agent does want you to pay more. That doesn't mean you have to.
How much was your offer below the asking price? If it was a super low verbal offer and the agent knew that the bank would not take it, he/she may have just been saving everyone from wasting their time. Some buyers want to throw a verbal offer out there to the agent to see if they will take it, but it doesn't mean a thing until it's in writing. If you are serious about purchasing the property, then I encourage you to go about it the "right" way and make a written offer based upon comps/condition.
How much was your offer below the asking price? If it was a super low verbal offer and the agent knew that the bank would not take it, he/she may have just been saving everyone from wasting their time. Some buyers want to throw a verbal offer out there to the agent to see if they will take it, but it doesn't mean a thing until it's in writing. If you are serious about purchasing the property, then I encourage you to go about it the "right" way and make a written offer based upon comps/condition.
- Michael Emery, "MikeEmery"
- Contributions:7296
There are two national firms that do foreclosure auctions in the Twin Cities. Both of them have unadvertised reserve prices that have to be met before the bank will sign off on the sale.
In particular, I've noticed properties that were auctioned by Hudson & Marshall, reappear onto MLS after the auction, presumably because the reserve prices was not met. Which is why I think REO auctions can be an enormous waste of time.
In particular, I've noticed properties that were auctioned by Hudson & Marshall, reappear onto MLS after the auction, presumably because the reserve prices was not met. Which is why I think REO auctions can be an enormous waste of time.
- Darrell Self, "Darrell Self"
- Contributions:349
I have never heard of any bank accepting a verbal offer on a foreclosure. The banks listing agent is bound by the code of ethics to be truthful and hopefully they are. Banks at an auction may have what is known as a reserve price and require the minimum purchase price be that at least and if that price is not met at auction it becomes an REO at that time. Hopefully that helps.
- SoCal_Engr
- Contributions:5663
Don't know about the specific auction, but most auctions have the ability for a "reserve price" to be set. If the reserve is not met, then the property does not sell.
As for knowing if anyone, REA or not, is being truthful - you have to trust your BS-detector. If you have a strong idea of what the property should be valued at, then don't get pushed into a higher offer on anyone's say-so.
As for knowing if anyone, REA or not, is being truthful - you have to trust your BS-detector. If you have a strong idea of what the property should be valued at, then don't get pushed into a higher offer on anyone's say-so.
- Joe Houghton, "Joe Houghton"
- Contributions:606
I have never heard of a bank out there that will even consider responding to a verbal offer.
Every auction is different, but most have a minimum amount that they need to get or else won't sell.
Every auction is different, but most have a minimum amount that they need to get or else won't sell.
HOW DO I KNOW IF AN AGENT IS BEING HONEST ABOUT WHAT A BANK TURNED DOWN?
We put a verbal offer out and the realtor came back saying the bank had turned down aa much larger offer at auction. Doesn't an auction mean they start at a bid but have to take the highest bid? I'm suspicious that the agent just want us to pay more. How ddo we know if a bank really turns something down?
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