Has this happened to you?

Question

have you gotten your offer declined just to find out that later a offer of lessor value and with more contingencies has being accepted over yours? i would assume REO agents are playing favorites. this basically happened to an investor friend of mine and i'm curious to know if others share in this experience

Ed O. · Answer

It was after the OO period and was a great deal. I offered over listing price and it sold a few k under listing price. The reason I'm convinced he didn't submit it is that a few weeks later, I bought a different Hud owned property. He needed some various information to submit the bid, information which he had never known prior to making the offer on the home that closed. I couldn't put his feet to the fire too much, because one of my private lenders is linked directly to him.

J Scott · Answer

Considering it takes about 60 seconds to put in a HUD bid, that's *REALLY* lazy of your agent.

Jon Holdman · Answer

HUDs aren't REOs. They're their own beast. Were you bidding during the OO period? If so, then perhaps your offer wasn't even on the table pending the opening of the investor bid period.

Curt Davis · Answer

IT also matters if the ROE agent is getting both sides of the commission. If your not giving the agent your side they might get it from the other buyer which gives them more incentive to submit your offer. Though agents are to submit all offers they usually do whatever they want.

Ed O. · Answer

On a hud deal, I had this happen. I'm convinced my realtor never went through the headache process of submitting the bid.

J Scott · Answer

Happens all the time. Many banks these days prefer to sell to owner occupants than to investors, and will oftentimes take lower offers with more contingencies in order to get an owner occupant into the property over an investor.

That said, I've never seen a bank accept a lower offer with more contingencies if both offers came from investors. Ultimately, it's up to the asset manager what to accept, so if two investors put in offers with one obviously better than the other, there's not much a listing agent will be able to do to convince the asset manager to voluntarily give up money.

Has this happened to you?

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