When a listing agent won’t present an offer.

Question

I’m not a rude, inconsiderate investor. But I’m practical and willing to do my research prior to presenting offers.

A run down cottage has been on the market for a year now, there have been three price decreases. 10k, 5k, and 5k. My offer is 20k less then where it stands now.

The mortgage was 90k 14 years ago, the bank took over a couple years ago. But the listing agent informed me they need to get the mortgage paid in full and anything under 159k just won’t do it... hm that’s interesting.

I was also informed that the bank is benefitting more from holding it... that’s interesting too.

I understand there may be other factors involved like a refinance, but chances are the condition it is in, one hasn’t been done.

You’re not going to present my offer? Really? Common.

Patricia Steiner · Answer

All offers have to be presented to a seller by law - unless otherwise noted in writing. But not all offers are offers.  If you want your offer to be presented, it has to be a written purchase contract outlining not only the price offered but all of the terms.  If you're submitting a low offer, then what might make it more attractive - a fast close? No contingencies? Cash closing with proof of funds attached?  Formalize your offer and submit it to the listing agent for presentation.  Again, make it about price alone and you won't get anywhere...build a case for why less now is better than continuing to wait for more that may or may never happen.

Ron S. · Answer

You make some conflicting statements that warrant clarifying:

The agent had it listed for $179K then reduced to $159K? and you are offering $139K? (You said they reduced it $20K from list and you offered $20K below current list). While this part is not conflicting, just trying to back into the math.

The mortgage was 90 14 years ago until the bank took it back, a couple of years ago? If they took it back, there is no "Bank needs to get paid in full". Bank has no carrying balance if they took it back. That means nothing to anyone except the bank but my point is, the "need to get paid in full" statement does not make any sense on an REO (Bank owned).

How is the bank benefiting more from holding it? Share the interesting part with us. Are they earning income from renting it? That would make sense but absent that, they have a duty to shareholders and the FDIC (Assuming they are FDIC regulated) to market the property for sale in a reasonable and logical manner. Their math has to make sense. The bank is audited on their portfolio. Bank's don't just hold on to property.

What does a refinance have to do with anything? You said the bank took it back. if so, nothing to refinance.

I think Patricia's points are solid.

Brian Ellis · Answer

Sorry to be confusing, I was being sarcastic. All these things the listing agent told me make zero sense. But was her excuse for not putting together an offer for me.

And yes I offered 139k. Which I believe to be a fair offer based on comps in the area.

And what I meant by the refinance, was the original owner refinancing the property prior to a foreclosure.