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Over full price offer on the first day not accepted??

By Jim Treanor

Real Estate Agent with Treanor Real Estate

November 11, 2008 08:07 AM

Eariler today I showed a house that was just listed today. The buyers liked it and they decided to place an offer. Since they had been outbid on several occasions they wanted to put in an offer that would be accepted right away. We decided to write one up for $100 over asking price, cash, no contingencies.

I spoke with the listing agent later in the day after we wrote the offer and he said the bank who owns the house wants to keep it on the market for 5 days and then they would look at the offers. My buyers weren't too happy with that and I don't exactly want to get in an arguement with the listing arent about it since I realize it is the banks policy. It just sucks in todays market to have that kind of an offer and not get it accepted right away.

Edit: This is not a short sale, its an REO.

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Jen Bowman

Keller Williams on the Water - Holmes Beach, FL

Realtor - Anna Maria Island & Bradenton FL

I have seen that too. It's my listing and we have been offered more than the asking price. It's a short sale and the bank has not responded yet. It's been more than a month.

Nov 11, 2008 08:12 AM

Konnie Mac McCarthy

MacNificent Properties, LLC - Cobb Island, MD

Broker/Owner - VA & MD "Time To Get A Move On!"

That is rediculous..but that is the policy of these banks...it is designed to get the highest offer..but in this case...I think they got it.

Nov 11, 2008 08:13 AM

Frank Rubi

Frank Rubi Real Estate, LLC - Metairie, LA

FrankRubiRealEstate.com

Jim, if this is a short sale hang on. I had one that lasted several months. On the other hand the banks need to get proactive in the process.

Nov 11, 2008 08:14 AM

Sean Keene

The Keene Group - Salem, OR

Realtor - Salem/Keizer

Is it me or are banks making this job even harder then it is. I had a buyer who is building a home they put $80,000 down and $15,000 for three months after. The lender came back with the buyer needed to put $87,000 and $15,000 for three months. The banks are running scared from people right now.

Nov 11, 2008 08:16 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

It is easier to pull eye teeth than to get any buyer today to offer over list on a cash offer.

The bank loss mitigation department ought to be fired. The personnel at loss mitigation have a habit of loosing good offers and then later having to reduce the price to get rid of the property.

Banks do NOT know how to sell real estate.

Nov 11, 2008 08:17 AM

Dustin Nulf

Keller Williams Realty - Pittsburgh, PA

That's okay. I made an offer on an investment property and the listing agent never got back to me after receiving the offer.... when I say "never" I mean "NEVER". The bank ended up withdrawing the property and I have yet to hear anything from the agent. (it's been about 3 months now).

Nov 11, 2008 08:19 AM

Steve Laird

Anderson Real Estate Sales - Chico, CA

Steve Sells Chico Real Estate

Jim, Here in California it takes months for a short sale to get accepted - The bank likes to list low, get multiple offers which may take months before accepting any offer - Check out new home communities, they are making deals.

Nov 11, 2008 08:24 AM

South Austin Real Estate Blog

Sky Realty South Austin - Austin, TX

This is what CONGRESS should be investigating! A full price, over actually, all cash, what else do they want? No wonder we had to bail out the banks for the tune of $700 BILLION DOLLARS, and yes I'm still miffed at that! Especially when I read about this type of action by a BANK on a daily basis here in the RAIN.

Nov 11, 2008 08:29 AM

Margaret Goss

@Properties - Winnetka, IL

Chicago's North Shore & Winnetka Real Estate

Banks are taking eons to respond to offers and now this! Just think that they wanted to get in on the real estate business a few years ago - unbelievable that in this market they didn't sign immediately and send you boxes of candy.

Nov 11, 2008 08:30 AM

Ashley Berg

Realty Executives BRIO - Seattle, WA

Seattlenulls Green Real Estate Agent

Frustrating but I have dealt with the same type of situation.

Nov 11, 2008 08:47 AM

Jim Treanor

Treanor Real Estate - Southington, CT

CT RE Broker ABR CDPE CRS GRI

It is not a short sale! It is an REO property that the bank is in possession of and they still want to sit on the offer. Earlier this year I had another buyer who placed a similar cash full price offer, it took a week to get accepted.

Nov 11, 2008 09:14 AM

Anonymous

Jason Castle

I am an active REO listing agent and some asset managers/banks are requiring 5-7 days of marketing prior to considering an offer. The craziest thing I have seen is that some banks have a mandatory 2 counter offer policy, meaning even a full price or higher offer will receive a counter offer. It's just insane...

Keep the faith Realtors! I've been doing this for 17 years and in California...everything here is insane. I believe there will be a streamlining of procedures soon, otherwise this housing crisis could take another 5 years to climb out of.

Nov 11, 2008 10:07 AM

#12

Teri Deane

RE/MAX 100 - Columbia, MD

Realtor, ABR, CRS, SFR - The Deane Team

Having submitted offers on several REOs for buyers I can only say that the banks just dont "get it." And sometimes they end up shooting themselves in the foot because of the greed.

Nov 11, 2008 10:34 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Jim, This is very normal for a REO property. The lender wants to make sure they are getting the best price for the property and almost always require at least 5 days on the market before they will accept an offer. Some of these guidelines are coming form the lender and some are coming from PMI companies. fannie mae, freddie mac and other investors. As much as it sucks...it's the nature of the beast.

Nov 11, 2008 10:38 AM

Charles Stallions

Charles Stallions Real Estate Services - Pensacola, FL

850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

You ought to forward that offer and response to your congress person. It's ludicrous what these banks get away with and we just sit here and take it.

Nov 11, 2008 12:14 PM

Andrew Monaghan

The Monaghan Group - Glendale, AZ

CRS, GRI, EPro Associate Broker

I understand your frustration but doesn't the bank have the right to see what the market will bear, the price could have been too low or they were pricing it to get a bidding war going,

Nov 11, 2008 01:40 PM

Over full price offer on the first day not accepted??

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