Made Offer On REO - Should I Wait Or Move On?
I made an offer on an REO over a week ago. They immediately countered and I countered back. Now it's been 6 days and we have heard nothing. Should I give up and move on or be patient and wait? Why are they taking so long? Thanks!
Here are the details:
FMV $249,000 (After I re-hab)
Asking Price $189,000
Initial Offer $130,000
Counter from bank $170,000
My counter $150,000
There is a little water damage and mold in basement. My estimates show $20,000 to re-hab.
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Don't give up if you made the last counter call them and inquire as to their answer, I always like to add something like I am looking at another deal and wanted to see where we are at on this one. It could be that have a better offer but want to make sure it is a done deal before letting you go. A little pressure never hurts. Just never come across as anxious or they will get their price. Keep your cool and keep them guessing !!!
[ Edited by scottbrown69 on Date 02/23/2004 ] [ Edited by scottbrown69 on Date 02/23/2004 ]
I'm incredibly new at this, but from what I've learned so far, I would always be moving on. There isn't any point in waiting for a response. Find the next deal and start working on that one. If the bank chooses to come to your terms, you're good to go anyway. If not, then you've gotten a head start on your next deal. That's my approach anyway.
Thanks Scott. How do you apply pressure without seeming anxious? I do have another house that I'd like to make an offer on if this one does not happen, but the numbers aren't as good as this one. My agent has called their agent who keeps saying they are waiting on the bank. My agent even mentioned that she and her broker may call the bank directly. She says that the listing agent is terrible. I guess I'll just wait with my fingers crossed.
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Another tactic you have to watch for is the agent you are talking to maybe holding up to see your movements. I have known agents not to submit offers until you were close to what they felt was a fair and acceptable price. That is why I now use a Buying agent I trust, she knows me, knows what I am looking for and offers me reputable feedback on what is going on with the other side.
How long has the property been on the market? How many other offers have been made? If it is a young listing they will sit on it hoping to get a better offer. How to apply pressure without looking anxious there are several ways but one I like it is throw in a bluff. I am prepared to leave my offer open for 3, 5, 7, 10 days (what you are comfortable with) then tell them if they still have property in 3-6 months you are willing to go back to your original offer (the 1st one you made) This worked for me on a deal where owners were asking 129,000.00 right about FMV I offered 96,000.00 they countered at 119,000.00 I went to 106,000. They waited 2 weeks and I sent a message that after 6 months if they still had not sold it my cash offer of 96,000 was still open to them. 6 months later after they were in their new house and had made 2 mortgage payments for 3 months they were ready to close
I also agree you should never stop looking just because you are close to deal here you need to working on 2 or 3 others for the future.
[ Edited by scottbrown69 on Date 02/23/2004 ]
The property has been on the market since April 2003. How do I know how many other offers have been made? I already have my next deal lined up, but I am waiting on this deal before I can make another offer. Since this is new to me I can only handle one project at a time. I just hope this is it. If not I will submit my next offer. Thanks again.
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My agent will tell me the history of a property. If you are talking with the listing agent remember they are working for the seller and their interest will be on their side. Just as in any industry you have non motivated agents if your agent or their broker has offered to contact the bank I would ask them to proceed. I am waiting on an answer today on a property with a bank that is over a year old. I have been in discussions with them for a week now and this one seems to be moving slowly. But remember if the offer was too good they would be anxious to deal. I prefer the wait over an immediate YES when they say Yes so fast I always wonder how low they would have gone
Good things come to those who wait
Just a couple of points. RE agents "must" submit all offers and in a timely manner. No exception!
If they are not doing this they can lose their license.
Second,
I always put a expiration date and time on my offers to prevent them from being "shopped " around
With an REO I would re-submit the same offer every couple of weeks, I have known many people that had their offer picked up a couple months down the road even after the REO company had put money into the property since their first offer.
How are you finding the offer? If you are self funding a 10K check might lend added credence to your offer?
I agree that ALL offers are supposed to be submitted but know there are times they are not “Ethical or not" Example FMV $100,000 Joe blow offers $20,000 the agent is not going to take the offer serious.
Expiration and $$$ do seem to help with individuals most banks do not tend to get emotional about offers and you only need to be honest about what is realistic. As long as they know you have the means they will listen to serious offers. They know what it is worth, and they know how much they can discount it. It also helps to submit pictures and proof of why you are discounting the offer. Once had a bank come to the table real fast when they saw the pictures I sent them of the property and saw the roof was leaking and only getting worst. All they had on file was the appraisal pictures and did not know the real condition of the property.
lauralee,
i think it's a great sign that they countered your first offer. i'd bet if they're taking longer they did the first time, to counter again, they're probably trying to submit your bid and reviewing it for approval. this has been my experience. when i don't hear from them ever, i know they didn't consider my offer but you have a strong point in that they countered you from the first offer.
i'd say, tell them exactly what you told us, that you're interested but you need an answer because you have to appropriate funds elsewhere if they're not going to make the deal with you. i don't think you'd sound anxious, you sound like you have money to put elsewhere and they won't want to lose out on that (most times).
i just had a supervisor call me back today about an offer i made to one of her workers last month. she asked if i was still interested. i thought i was done on that one. keep pushing and then move on.