Special offer

Does time of offer outweigh weight of offer?

By
Real Estate Broker/Owner with Global Property Systems Real Estate DOS NYS #10491202606

 

One of my team submitted an Offer to Purchase yesterday on an REO. Our buyer clients see a great opportunity here and after asking if it was fully available and seeing it twice, we put together an all cash offer, above asking price.

We called the listing agent to let them know it was on the way no more than three hours after calling them for the second showing, and asking if it was still fully available. So you can imagine our surprise when she told us, “You are too late! We just submitted an offer of our own!”  What she said next completely floored us. “Wow, more than asking AND cash! Well I’m so glad I got our offer in first then, because yours would have beaten ours for sure.”

She flatly refused to submit our offer to her REO clients, stating that the time of the offer “First come, first served” outweighed a higher, much stronger offer  and that was the way it is done when dealing with REO’s.

Really? I’m putting this one out to you REO experts, (which I am not,) is this really the case. Do I have any recourse here.  What would you do my fellow Active Rainers?

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Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA
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WOW Vanessa,

Who is being served here?  Isn't the best deal for our Client what we are supposed to be looking out for?

Jan 08, 2013 09:43 PM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Vanessa, you have a very interesting question.  In my opinion, I don't believe an REO is any different than a "normal' seller owned transaction.  If I were in your situation, I think I would go to the Realtor's Broker. If the bank has not accepted the 1st offer, I believe all offers should be submitted to the bank.  I and my partner (& husband) are in a similar situation today. Two days ago, our clients viewed a home for the first time.  They really liked the home and want to see it again.  Yesterday morning, my partner called the Sellers" Agent and asked if he would call us if any offer comes in.  Yesterday afternoon, my partner received a call from the Sellers' Agent to tell us an offer came in.  We now have an agreement with the Sellers' Agent that our clients can view the home today and submit an offer today.  This is the way real estate transactions are handled in this day and age.

Jan 08, 2013 09:52 PM
Vanessa Saunders
Global Property Systems Real Estate - White Plains, NY
Real Estate | Done Differently

I totally agree with both of the above responses. I currently have a short sale which went to market last Friday with over 6 offers to day and other agents begging me not to submit until they have had a chance to show it (sometimes for a second, or third showing) to their clients before jumping in with offers. Given the excitement generated I spoke to my sellers and their attorney, we decided to ask for highest and best and gave a deadline for all offers to be in. I believe that the agent who is refusing our offer is behaving unethically. I just want to find out if there is actually an REO clause that asks for first come first served. Can't imagine that there is, but that is why I'm turning to AR for input before I go back to her. Thanks. V

Jan 08, 2013 10:39 PM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Vanessa -- you might want to re-post this in either of these two AR groups for better response:

http://activerain.com/groups/reo

http://activerain.com/groups/REOREALTORS

Good luck on getting successful resolution.

Jan 09, 2013 02:36 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Sounds like someone needs to be reported to your real estate board and to the local REALTOR® association.  That is completely unethical.

Jan 09, 2013 06:24 AM