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Bank Counter Offer Comes Back $25,000 Over Asking Price!

By Leslie Stewart

Real Estate Agent with Oregon Licensed Broker with Berkshire Hathaway HomeServices Real Estate Professionals 920100185

January 30, 2009 01:55 PM

Bank Counter Offer Comes Back $25,000 Over Asking Price!

I had an offer in on a Short Sale for some buyers. The List price is $129,000. My buyer's made decent offer. We knew this was a back up offer and in 3 days we had a counter offer of $125,000. My buyers made a counter offer and came up a couple thousand dollars.

There are renters in the property and they are beating the heck out of the house. One bedroom smells horribly of "cat," the bathroom has extensive dry rot and the kitchen cabinet doors are being torn off the hinges. Our offer was a good offer for the shape the house was in.

After two weeks of waiting for an answer, I get a giggling call from the listing agent. She tells me she can't

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believe it but the Bank came back at $155,000. Can you believe it $155,000!!!! This was the original listing price and this property has been on the market for almost 6 months.

I've got to tell you, I'm still scratching my head on this one. If someone can enlighten me as to the Bank/investor's thinking, I welcome any explanation.

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Pete Rondello Sr

Coldwell Banker Mulleady Inc. - Boulder Junction, WI

Leslie: Who knows! Just when you think it's safe to get back in the water ... I have had LOADS of bank troubles lately too. Didn't we just send some money to help free up the market a bit? Best wishes on getting this sold.

Jan 30, 2009 02:05 PM

Leslie Stewart

Oregon Licensed Broker with Berkshire Hathaway HomeServices Real Estate Professionals - Stayton, OR

Realtor, ABR, CRS, Oregon Licensed Broker

Pete: Thanks, but I think we a MOOOOVin' on!

Jan 30, 2009 02:43 PM

William "Bill" and Karen Farragher

EXIT Blue Water Realty, Matawan, NJ 07747 - Matawan, NJ

SFR

I don't think anybody can figure out the banks. We had a deal where the buyer put in an offer on a short sale of 150,000 when the list price was 200,000. The bank counter offered at 170,000, the buyer said no, the bank took the house to sherriff sale and the buyer got the house of 110,000.....go figure. And we let the banks hold our money?

Jan 30, 2009 04:05 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

I guess my next questions would be:

Did the listing agent miscalculate?
Or deliberately listed at a price so far below fair market value, and before a BPO was done on the property?
Was the short sale in process when the listing was activated?
When, or did the listing agent get short sale approval and at what price?
Was there another offer that might have come up after you submitted yours at $25K higher than yours and the bank is countering both of your offers?

Jan 30, 2009 06:33 PM

Bill- Your buyer got a deal!

Pacita- We all thought the original listing price was way too high at $155,000. When I first saw the house in July, it was fairly clean, some functional obsolescence but decent shape. It was originally vacant, but for some reason the seller let renters move in. I couldn't believe how fast it was torn up.

For the neighborhood, it should have had a $135,000 price tag. Yes, it was a short sale from the beginning, but I do not know what the listing agents price was with the bank. At the time we made our offer it was a back up offer, but our offer must have been more than the other offer, because we were no longer dealing with a multiple offer situation during the counter offer period.

Jan 31, 2009 04:36 AM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

That is when you tell the bank to enjoy their new house and good luck!

Jan 31, 2009 05:33 PM

Todd- I agree totally

Feb 01, 2009 04:32 AM

Nicole Weidauer

Keller Williams Greater Seattle - Shoreline, WA

Oh my goodness- I am shaking my head at that one too! I have no idea what the bank was thinking. I think the more important thing to ask is what your buyers are thinking?! I mean, it's almost laughable that the bank would do this and expect the buyers to stick around and continue with these type of sellers. Maybe they are trying to incite some competition but clearly that is not going to work with this house in the condition it is in.

Best of luck with this situation- I hope your buyers find what's right for them!

Thanks for sharing, Nicole Weidauer

The Egerer & Weidauer Team, Keller Williams Realty Greater Seattle

Feb 02, 2009 02:02 AM

Debi Ernst

St. Charles County, Missouri - Prudential Alliance Realtors - O'Fallon, MO

GRI, e-PRO, Broker/Sales Associate

Leslie - Banks have always been a puzzle to me. Hang in there! :)

Feb 23, 2009 09:52 PM

Bank Counter Offer Comes Back $25,000 Over Asking Price!

Bank Counter Offer Comes Back $25,000 Over Asking Price!

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