Updated over 14 years ago on . Most recent reply
I bid $17k over REO price and lost.
I just don't get it. I'm looking at REO's for a place to live in. I'm in MI and real estate isn't booming here. I found a REO that I really liked listed for $53,200. This is a Homepath property so investors can't bid for the first 15 days. The day after this house is listed I put in an offer for the full price. The listing agent says there have been multiple offers and requests everyone to re-submit their "highest and best" offer. I really wanted the house, so I bumped up my offer to $70k. I just found out this morning that my offer wasn't the highest. The listing agent wouldn't say what the highest offer was. I'll have to wait until after closing to find out what the house sold for.
Damn, I'm really bummed and completely surprised. I thought everyone was bidding less than the REO price.
Most Popular Reply
So REO listing agents these days are convincing their sellers to list properties far enough below market that they are getting multiple offers well above the list price. Clearly, that's what you're seeing with this property.
Another thing to keep in mind is that it may not have just been your offer price that was considered. It's possible the seller accepted a low priced offer with better terms. Just something to think about, in the case where you have a lot of contingencies in your contract.
Still to it...another will come along. In fact, I've noticed a lot of really nice Homepath properties in my area recently...homeowners are getting a steal!