Getting Frustrated!!!
Hi All, I'm a new investor in Connecticut and I put in 2 cash offers in the last month. Here is what i'm running into:
Property 1 : The property was on the MLS for $90K, after taking a look at the property with my partner, we decided to submit an all cash offer for $39K...(the property needed complete gut, down to the studs and no flooring). The property had been on the market for 40 something days without any offers..As soon as we submitted an offer we got an email saying that they wanted our highest and best as there was multiple offers. We decided to go up another $5K. A couple of days later we find out from our real estate agent that our offer was rejected and that they also had rejected a $75K offer. Exactly 1 week after rejecting both offers I checked the MLS and just dropped the asking price to $60K....
Property 2: Asking price was $140K, and they were looking for CASH only. We offered $110K calculating the amount of work and since the property had been sitting there for over 75 days. As soon as we submitted our offer, we are told that there is multiple offers and they want our final and best. We decided to go up to $120K all cash, but we were once again told that it was rejected and that a higher offer was accepted. 5 Days later the property is back on the market and they dropped the asking price at $130k...we raised our offer to $125K and sure enough we are told it's in multiple offers again and want the highest and best.....We are sticking with our $125K, so hopefully we hear back soon...
I'm just wondering if this is something that typically happens when buying REO properties and the bank is trying to raise our offer, or is there really multiple offers every time we bid on a house? It just doesn't make sense to me!!!!!
Thanks for all your responses