All Forum Posts by: Brad W

However, recently I have noticed a couple banks not even going to highest and best.... they are just taking the best offer that comes in out of the first round of offers.

So now I am coming in with my best offer right off the bat... even if it's 40k over the asking price, as long as the numbers work, I will make the offer.

That's what I figured then bank would do when I made my first offer. It struck me as odd that the other party went from around 10k under asking (similar to my offer), then upped it to over asking price on their own accored. Especially since I was told they had their own buyers broker.

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Originally posted by Brian Levredge:

It's not uncommon, but you need to be careful that you are not being gamed by the seller's agent into bidding against yourself. You don't say what the house is worth ARV or what your intentions are to do with it. If you are rehabbing/flipping, your highest and best price is going to be based off of the conservative end comps less repair costs, carrying costs (ins, taxes) and your desired profit.

I've had the same exact scenario happen to me as well and they the bank wanted my highest and best. I stuck to my guns and lost to the other bidder. The property fell out of escrow and I put an offer on it again at the same price. They said it was a multiple offer situation again and I stuck to my price (all cash, no contingencies, with large up front EMD) and got it. The key is not to get emotional in your desire to do a deal. Now if this is a personal residence, then it's a different story.

Shannon and Brian, I appreciate both of your replies.

I was concerned with the idea of bidding against myself, since there is almost no transparency in this stage of the transaction. I would hate to think that brokers give out multiple offer disclosures when there's really only one offer. It doesn't seem legal.

It's going to be a live/rent situation. It's hard to gauge values in this particular subdivision because so few sales have completed in the last year, though there are a lot under contract. By the information I've been able to get, it's going to be pretty close to market value after repairs.

As I was waiting for an answer, I inquired about another REO in a close by subdivision, which probably required less work. It was brokered by a different listing agent and that agent said there were already 15 offers well above the asking price and offered to throw mine into the mix. I declined and was not contacted again. Its status changed to 'under contract' in the MLS 2 days later.

This is a desireable area with a lot of distressed properties but it's not a major metro location so I didn't think it would be so competitive.

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REO property listed at 112k. Place needs some work, nothing too major.

Working directly with seller's agent.

House has been on the market for only a couple days.
Initial conversations with agent is guiding me to offer over asking price, with supportive reasoning. Also tells me there is other interest and that pricing is done under market value on purpose.

A few days go buy and I take no action.

I call to make an offer. Sellers agent tells me that's there's another offer on the table and wants to know what I'm going to offer so I don't waste anyone's time. I say 102k. Agent says that's near the other offer and to expect a multiple offer disclosure and be ready to give best offer, with POF. I sign it and send the requested docs.

Next agent tells me that other offer is over asking price but can't say exactly how much. I offer 114.5. Cash, no continginces. Agent says that's good. Next day I get a call saying it's accepted.

Does this sound like a typical/atypical negotiation?

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All Forum Posts by: Brad W

Brad W has started 1 posts and replied 3 times.

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