Bank countered offer $250K less than offered price?????

Question

I have seen it all now!

I wrote an offer last week on a 9337 SF Bank REO retail/office/industrial flex building for $1.2M, 20% down owner occ., buyer has 3 years of great financials.

background: I was the builder/developer and know the cost of construction was $1.5M all in and I sold it for $2.1M, bank loan was $1.5M.

Bank president called and said the bank regulators told the bank to reduce the price before they accepted our offer. My counter is at $750K. I asked him to send me a list of all of his REO product!

Anyone have some insight on this? Needless to say the buyer is doing backflips and referring me 5 friends that need buildings.

Will Barnard · Answer

I would simply play hard ball with them. Next time, start your offer much higher at say $2M so that your counter comes in around $400k! :)

I have seen some dumb azz moves before but that takes the cake.

Let me know what else they have too!

Tiger M. · Answer

Joel Owens
You were right on the mark with your last post above. I was in court sitting with the bank prez on an unrelated matter yesterday and that is the deal. The need to move it out of OREO status. The discount is the incentive for the buyer to get locked in but the bank taken out by someone else and off the books.
Should be getting additional similar property info after new year. Will Barnard I may be calling you.

Joel Owens · Answer

Hard to say. Sounds like the bank was going to hold the loan and get a higher price but are now forced to liquidate it entirely off the books.

That resulted in taking a lower offer with them not financing the deal. I will see deals where a buyer tries to get a bank to hold the paper for less down and a higher price.

Tiger M. · Answer

Jon Holdman Oh thats Good stuff! No buds growing here yet. I have know this bank Prez for about 9 years, he was acting like a dog that pooed on the rug, that you beat his behind and tossed him outside. They did change the terms somewhat. The REO bank was going to write the loan, now they asked that it be originated somewhere else and they get paid in full. Is the FDIC about to make a shotgun wedding?
This is a midwest bank, home office in Nebraska

Jon Holdman · Answer

Must be a Colorado or Washington state bank and the banker's gotten into the legal recreational marijuana. Seriously, though, will this stick? Or are they going to call tomorrow and say "opps, we made an error"?

Bank countered offer $250K less than offered price?????

Bank countered offer $250K less than offered price?????

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