Does "final offer" really mean final?

Question

I put an offer in on a SFR REO for $15k.  Within a few hours, the bank countered at $35k.  I upped my price to $20k right away...3 days later they came back at $30k, final offer.

My understanding of the delay is that the negotiator on the bank side needed approval to go lower.  What are the odds this is really their final offer?  If I came back at $28k, do you think they would take it?  If they declined it, would I still have the option of buying at $30k?

The house has been on the market for almost a year.  This is a cash offer.

Josh Sterling · Answer

A rule I have been trying to follow in negotiating is to always make the last offer. But full disclosure...I have lost more than a couple deals over a small amount. Either way, I always come out happier when they accept my offer as opposed to me accepting theirs.

Mike McKinzie · Answer

My daddy taught me one thing, the only thing "final" is life is when you are six feet under.  Even taxes aren't final if you have a good tax accountant and tax attorney.

Personally, I would come back at $26K and see what they say.

Patrick Jorgensen · Answer

I just had a similar situation with a client.  The bank had the property listed at $65k and ARV was $109k.  We went in at $47k and the bank came back at $60k.  We went up to $50k and change and the bank came back at $54k.  We said no thanks.  Two days later the bank accepted our offer of $50k and change.  Long story even longer... nothing is final until you close escrow on a REO.

Jeff Crum · Answer

I agree.  Play a little hardball here.  Unless there's another offer or if you're in a rush, perhaps nickel and dime them to see if they end up accepting an offer lower than they propose is their final offer.  I'm thinking that this is the bank's lowest offer for the profit that they want.  To spend less manhours sweating this case, they might dip below their normal ROI to end this quickly

Mitch Kronowit · Answer

There's only one way to find out, i.e., offer $28k.

What are they going to do? They'll either accept it (meaning the $30k was NOT their final offer), counter at something between $28-30k (still no final offer), or look for another buyer that will pay $30k or more.

What exactly is the place worth to you? I can understand trying to get something at rock-bottom price, but if you're going from $15k, to $20, to $28k, that's telling the bank you're intentionally low-balling them and really are willing to pay much more for the place.

Aly W. · Answer

I purchased an REO a few months ago, it had been on the market nearly a year as well. Bank wanted $80something, I offered $60k cash, they can back with $75, my final was $65. Listing agent said they would not go lower. My agent told the listing agent no problem, sorry it didn't work out. 2 days later, they accepted my offer.

An offer is only final if you make it final. Find out what number works best for you and that's it. They have wiggle room. Just wait it out, or move on to the next. You don't have to buy but they have to sell.

Account Closed · Answer

i'd go to 28k