We had the winning bid for 4 bdrm 3 bath house on auction.com. However, the bid didn't meet the reserve. The bank has. A&E a counter offer of 15k higher than the winning bid. It's a good deal even at that price.
My question to those that have more experience than me, is it worth negotiating with the bank? If I come back with a counter that is 5000 lower than theirs, will they balk? We're told we have only one opportunity here to negotiate.
What has happened in your experience?
Yes, negotiate. It's not a one shot deal like the "salesman" trying to pressure you says.
Don't take everything that Auction.com at face value. They represent the Seller, not you. Everything is negotiable and from the banks perspective there are costs to not selling; holding costs, opportunity costs, re-listing costs, etc. and simple aggravation.
Even if they have a specific price below which they 'say' they will not sell, ask yourself if they would not accept that price less $1.
The art of negotiation is always a challenge.
On the other hand, if you really believe that it is a good deal at the price it is now being offered at, are you willing to risk loosing it.
I would come in something below their current ask. If they do 'balk' and shut down negotiations and I still wanted the deal, I would call back a day or two later with a higher offer. All they can say is NO.
How many bids were there on the auction ? Was it a very active auction? If you feel its a good deal and you are only $5000 apart you might save money but would you be okay to loose the deal?
Thanks, @Wayne Brooks, @Oren Karp, @Steven Picker
The auction was fairly active so we were surprised that we got it at the bid we did. I don't want to lose the deal. My first reaction is to not leave any money on the table. But my second reaction, why risk tens of thousands in appreciation and rent. My strategy is to buy and hold.
I had a bid on a property on auction.com at the minimum acceptable bid. I stayed active for several weeks then disappeared only to be relisted at the price I had bid.Bid is now 4500 less than my previous bid. Go figure
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.