Is this really how Freddie Mac operates?

Question

I found a potential property through Freddie Mac's HomeSteps and called the listing agent for a showing. He informed me that there was already an offer on it, but he said he couldn't tell me how much the offer is for. I explained to him that I didn't want to waste his time or mine by inspecting the property and writing an offer in a blind bidding war and he told me the following about how Freddie Mac operates:

"Freddie Mac only looks at one offer at a time. They'll decide to either flat-out accept or deny the first offer before they even look at yours. For that reason, there's really no bidding war."

Is this correct? Do they operate on a highest & best basis? I would think they'd look over all the offers and see which one they want, no?

Kyle Hipp · Answer

I have heard that before as well. I have heard where folks have made an offer for "x" and it was denied. An offer from another person was lower and also denied. A little bit later the agent for the first offer resubmitts the first offer and it gets accepted because they have seen that the both offers were low. It doesn't seem to make sense but I've heard that with some programs like thT a couple times. But I'm no expert on that, maybe it is just a common reoccuring cover story ;)

Wayne Brooks · Answer

I think the agent is wrong, or maybe he was just making up an excuse not to tell you the amount of the other offer.  He can Not tell you the amount of the other offers, as he shouldn't, and should just tell you that-no excuses needed. If you had your offer in first, would you want him telling other buyers the amount of your offer so they could raise their initial bid and beat you by $100?

Mark Beekman · Answer

Thanks, guys

The agent who is contracted with Freddie Mac in my area is about 80 years old and the things he was explaining to me about Freddie Mac's process just don't make sense to me.

As it turns out I'm not interested in the property but, if I ever run into another potential Freddie Mac property, I hope this particular agent is retired by then.

Account Closed · Answer

Joe Gore

Pete T. · Answer

That doesnt make any sense.  Not saying that  I know the program you are talking about, but I know the Homepath and other similar programs will see a dozen offers and other will hold all offers for "x" number of days to get the best offer.  If they have multiple offers, why wouldnt they look at all of them.