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REO property in Minnesota

Hi im interested in a REO property in MN, it just got listed back on the MLS as Bank Owned , the agent is saying two offers are "in" and she says she will take the highest bidder on Monday? i have NO clue what the offers are so i dont know what to bid?
question: 1. if i put in an offer an someone else bid higher is the Agent able to tell me "i been out bid" and do i want to offer more?.. i really would hate losing this property 
thanks So much 
  • February 09 2011 - Mound
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Answers (2)

Best Answer

When multiple offers are presented to the agent, they go back to the buyers and say 'give me your best, highest offer by Monday'. The 'best' offer is then presented to the lender, who will either accept, reject or counter-offer with that offer. If the lender and the buyer can't come to terms, then the bank will negotiate with buyer #2.

What you need to understand is the 'best offer' isn't always the highest offer. The lender will look at:

1) how much you offer

2) the terms of the offer (cash is king followed by solid financing),

3) how fast you can close (fastest is best but they probably won't push for more than 30 days with financing)

4) Contingencies. The offer can't be contingent on the sale your own home.

5) Skip the personal property addendum as they won't guarantee that the stove and fridge will be there at closing.

Some lenders will want you to pre-approve with their mortgage unit. Having pre-approval from the lender will strengthen your bid when compared to others.

Have your agent talk to the listing agent to get a sense of what their asset manager wants to see in a bullet proof offer. While they can't tell you what to offer, they can give you a sense of what to and what not to ask for in the purchase agreement.
  • February 09 2011
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Most likely the bank is going to expect that you have presented your highest and best bid since you know there are multiple offers.  Therefore you will often times not have a second chance to win the bidding war.  Make your first offer as strong as you are comfortable.  Make sure you have an agent representing YOUR interests.
  • February 09 2011
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