You think I should Bid OVER the list price? But it's a Bank Owned Home

Real Estate Agent with

House with Dollar SignYou think I should bid OVER the list price? But it's a Bank Owned Home, the buyer says, who is also under the opinion that they can bid thousands under asking price, looking for a "sweeter" deal. Have you run across this?

It's a true fact that Bank Owned Homes are not priced the same as "Retail" since most will need repairs. It's hard to determine at times what offer will be accepted. Often these bank owned homes are listed way under market to entice a bidding war, asking for highest and best offer. It can create a "frenzy" of bids coming in.

Example: While showing a HUD owned property, the sign in sheet was filled with agents names from showing to potential buyers and the home was only on the market 2 days. Nice area, with great potential. I knew immediately that this home was priced low and submitting a full price offer was no quarantee of acceptance. The buyer really wanted this home, but was under the impression that an offer could be submitted at half the list price and win the bid. Where are they getting this information?

I gave advice about past experiences where a bidder won by submitting a higher offer. I also prepared facts and pricing opinion on this home based on comparable sold in the area. Unfortunately, this buyer wanted to believe the other stories shared, submitted a low offer and guess what? Bid not accepted with the winning bid being $10,000 higher! It happens.

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Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Inventory is becoming limited. Low ball don't work anymore pretty much. Too many cash buyers out there now. Plus investors. Kind of a time waster if the buyer is lowballing.

Dec 09, 2012 01:00 PM #1
Christine McDaniel
Coldwell Banker Residential Brokerage Porter Co. - Crown Point, IN
Broker Associate

Carla,  We are seeing the market turn here also.  I tell all my buyers that homes are selling very near or at the asking price with many of them going into multiple offer situations.  The buyers still don't believe it.

Dec 15, 2012 02:12 PM #2
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Carla Harbert

RE/MAX Omega: Lorain-Medina County Area
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