Is Bank Obligated to take our offer, we were 2nd highest offer, Ist buyer was disqualified?

18 Replies

We still want the house, we were told 1st buyer was disqualified. We resubmitted our offer and are waiting to hear. but is there anything more we can do? The bank put the house back on the market. 

The seller generally isn't "obligated" to accept anything. They can raise/lower the price, re-list it and wait for more offers, accept yours, or counter. Sometimes banks have specific guidelines and a step by step process they follow in cases like this.

Bottom line, the ball is in their court - give them your highest and best offer. If they get a higher offer, it's shouldn't be an issue because you weren't willing to pay more anyway.

If they accept a higher offer and you're kicking yourself for not offering more, then it wasn't your highest and best in the first place.

Jeff Copeland, Broker in FL (#BK3326487)
727-235-7988

The bank, or any seller for that matter is not obligated to do anything.  They own the property, so they can look at any and all offers.  

Submit your best and highest offer.  Make it easier for the bank to do business with you.

Good luck!

Thanks for your response, Yes we were disappointed in finding our 1st offer was not accepted even though it was well above ask and had No inspection. The property is cash offer or rehab loan only and the bank had set time frame of all offers in within 10 days of list. We had cash. We met original 10 days. We could increase our offer again, we were hoping our original offer would be next in line. Would you suggest we increase our offer again?

We once waited several months only to find out the bank sold it for much less, like $20K less than our offer, as part of a package deal.  Even with our agent checking weekly, we didn't find out until it appeared as sold.  

Lynn,  Thanks for your response. Wow what a disappointment. We've babysat waiting for this house to list for over a year. So were waiting, our offer is in. the bank may call for highest and best this time around so we'll wait and see what happens.

Thanks

Originally posted by @Jeff Copeland :

The seller generally isn't "obligated" to accept anything. They can raise/lower the price, re-list it and wait for more offers, accept yours, or counter. Sometimes banks have specific guidelines and a step by step process they follow in cases like this.

Bottom line, the ball is in their court - give them your highest and best offer. If they get a higher offer, it's shouldn't be an issue because you weren't willing to pay more anyway.

If they accept a higher offer and you're kicking yourself for not offering more, then it wasn't your highest and best in the first place.

What a great quote

@Deanna McCormick there was a nice property I bid on 3 years ago and did not get. I assumed the bank received, and accepted, a higher offer. Fast forward 6 months... While working on a different project, I drive by this house every day and see a for sale sign pop up in the yard. Curious about listing price, I call my realtor so he can give me info. Come to find out, the people who purchased the house paid $148,000 for it. That is $17,000 LESS than what I offered!!

I was confused as my offer was cash, included no contingencies, had proof of funds, and $10,000 ernest money... So their offer couldn't have been better. Even if there was a way the bank could pay $0 in realtor fees on the other offer, their net would have been higher accepting my offer!!

Only thing I can figure is someone had a connection to the bank to get them to accept a lower offer... Or a connection to the listing agent and my offer never made it to the bank!!

Needless to say, that was frustrating as I would have made $70,000 on that house... But no reason to dwell...on to the next!

Ouch !

I have no idea if any rules or regulations apply to the banks asset managers decisions. I would like to think the offer process is confidential. I have no problem being the low bid. Just would like a equal playing field.

Thanks @Stephen Lofthus !

@Terry B. - Could that have been because they were owner occupants and you were not? Particularly with Fannie/Freddie/HUD REOs, they have a bias towards owner occupants and a 'first look' period in many cases where they won't even consider offers from investors.

Jeff Copeland, Broker in FL (#BK3326487)
727-235-7988

Our offer was owner occupant. 

It was not listed as a Fannie/ Freddie/HUD

Not sure why offer of 1st party was disqualified..

You might consider raising your offer by just a few hundred dollars - that way at least you can feel confident they will look at your offer again and (hopefully) respond. Anything to draw attention to your offer is good at this point, and the timing couldn't be better, with the first offer falling out of escrow.

Jeff Copeland, Broker in FL (#BK3326487)
727-235-7988

UPDATE !! We just heard our OFFER ACCEPTED. 

Thanks for all your reply's and attention.

We kept it the offer terms the same as original

AMEN !!

@Jeff Copeland it was fraud if they said they were an owner occupant because the house was listed, marketed, and sold as a rehab!! It wasn't a hud or fannie property.

It sure is interesting, don't know if we will find out any other details.

I guess we are just happy our offer was legitimate and accepted.

Roller Coaster Ride was no extra charge.

But honestly, it makes things difficult if you are doing what you can to obtain housing and your offers aren't properly considered, we had no idea what was going to happen the second time around. 

To clarify one point the house had "frozen pipes / plumbing issue" so was offered AS IS.

Because of that plumbing issue, a cash offer or rehab type loan was required, as the house wouldn't qualify for normal financing.

THANKS !!  Your input and comments were very much appreciated. We feel fortunate.

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