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Answers (6)
- shasta_steve
- Contributions:448
No one really knows what went on here. Did you try and use a FHA or VA?
That being said, in my opinion, much of the whole REO market is a fraud. When I was trying to buy a house it was pretty obvious that the "gatekeepers" for the banks were playing lots of games. I was threatened with having my deal killed because I did not use an agents friend for my fianancing. Lots of houses came up and were sold before you even had a chance to bid on them. Most of the buyers agents were scared to death of the bank's agents because they controlled so many houses.
My co-worker bought an REO last year. It was an inter-office transaction. His agent was great but always let him know he was the only one in the running and not to worry about the other bids.
The guy that just bought my house next door bid 5k more than the offer that was given the bid. He was putting down 50% conventional. The first bid fell out of escrow because the buyer could not qualify for his FHA loan. The first bidders agent also worked in the same office as the listing agent. The only good thing was when they offered my new neighbor the house again they told him he could have it for the lower bid.
Let's face it, if no one is minding the store, who are you going to try and push your sale to? Someone you don't know or another agent in your office you see everyday. Also your boss gets paid double, who do you think he wants you to sell to?
That being said, in my opinion, much of the whole REO market is a fraud. When I was trying to buy a house it was pretty obvious that the "gatekeepers" for the banks were playing lots of games. I was threatened with having my deal killed because I did not use an agents friend for my fianancing. Lots of houses came up and were sold before you even had a chance to bid on them. Most of the buyers agents were scared to death of the bank's agents because they controlled so many houses.
My co-worker bought an REO last year. It was an inter-office transaction. His agent was great but always let him know he was the only one in the running and not to worry about the other bids.
The guy that just bought my house next door bid 5k more than the offer that was given the bid. He was putting down 50% conventional. The first bid fell out of escrow because the buyer could not qualify for his FHA loan. The first bidders agent also worked in the same office as the listing agent. The only good thing was when they offered my new neighbor the house again they told him he could have it for the lower bid.
Let's face it, if no one is minding the store, who are you going to try and push your sale to? Someone you don't know or another agent in your office you see everyday. Also your boss gets paid double, who do you think he wants you to sell to?
- Brian Hoverman, "Brian T. Hoverman"
- Contributions:107
Hard question to answer because it is so transaction specific...has the bank or asset manager handling the sale had recent difficulties with distressed property sales falling apart because of buyer financing, does the property condition concern the seller with regards to buyer obtaining financing or obtaining appraisal value...etc. Also a "$10,000" reduced offer is 10%less to the seller on a $100,000 sale but only 1% less on a Million. Cash has always been king and yes a bank will consider the whole strength of an offer and in most cases take a reduction in purchase price for a cash offer(all other aspects of competing offers being equal). The amount of the reduction they will accept will vary based on the variables above and many more. Hope this helps answer the question and maybe helps you to have a successful transaction.
- John MacArthur, "jmac"
- Contributions:13
I would love to give you an answer that would make sense. Unfortunately, nothing banks do makes sense. You could be right about the apparent inside deal and then again, the bank may have lost your offer.
If you are concerned about the integrity of the transaction, contact the broker and raise your concerns. Go ahead and ask to see proof that your offer was submitted.
In the end, you will be shuffled around until you tire of the effort.
No one polices the banks and brokers police one another.
If you are concerned about the integrity of the transaction, contact the broker and raise your concerns. Go ahead and ask to see proof that your offer was submitted.
In the end, you will be shuffled around until you tire of the effort.
No one polices the banks and brokers police one another.
- wetdawgs
- Contributions:26854
Perhaps, but there may be more to the story:
I can think of three scenarios that are totally legitimate:
1. The other offer had less contingencies.
2. The selling price wasn't the offer price, but negotiated downward after inspections or other events.
3. The seller chose the lower offer for reasons known only to themselves (such as a relative or friend made the offer). As an example, once upon a time, we purchased a house and our offer was lower than the other offers but the seller had just lost her sister to cancer. Ms Wetdawgs has the same name as the sister, so the seller thought it was good karma.
I can think of three scenarios that are totally legitimate:
1. The other offer had less contingencies.
2. The selling price wasn't the offer price, but negotiated downward after inspections or other events.
3. The seller chose the lower offer for reasons known only to themselves (such as a relative or friend made the offer). As an example, once upon a time, we purchased a house and our offer was lower than the other offers but the seller had just lost her sister to cancer. Ms Wetdawgs has the same name as the sister, so the seller thought it was good karma.
- sinthia22
- Contributions:3
ok thanks, then my theory is right, a home i put an offer in got sold for 10,000 less then my offer but the buyer agent is in the same office as the listing agent. i think something shady went on....
- wetdawgs
- Contributions:26854
Cash doesn't tend to get discounts with real estate. If there are two identical offers but one is cash and the other requires financing, then often the cash one wins. That is the biggest advantage.
is it common for a bank to take a $10,000 less on an offer just because its cash vs. financed?
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