I bid on a house in foreclosure through my agent, now he’s coming back to me asking what the maximum amount I will be willing to bid…. (the house has been on the market for over 100 days.) Is this agent trying to get me to pay more money, even though he should be trying to save me money?
Related posts:
5 Comments
Sounds fishy to me. Once you make an offer, a professional agent will never pressure you to bid more.
Yes, stick with your first bid. Your realtor sahould be able to place that bid and the bank can accept or reject your offer. Just remember if there are multiple offers they will take the highest one). This is how I got my home. Good luck and remember to re key the ENTIRE house.
Yeah, he probably is but if your bid was less than 82% of the listed price it will most likely be rejected anyway. This is the number that HUD says banks will try to get for their foreclosures. HUD is the governing body of loan makers. You can pay less but you will need to prove that the house is in need of repairs. Sometimes the bank will get 2 or 3 lowball offers and will ask for “highest and best” offer – if you are the highest bidder – you get the house.
When the bank collects bids over months, as this one did, they call for all “highest and best” from all bidders. They then either reject the lot or accept one. They will not counter offer to anyone. This is the banks heads up that you can’t make a bid lower then you really intend, because there will be no counter offer sent.
Perfect nails, you obviously didn’t have a Realtor working on your behalf? Not a good idea in this market.
Of course they are trying to get you to pay more. If the property is bank owned, they have not only lost the balance of the mortgage at this point, but have incurred some pretty hefty costs to get the title back. So, what? You’ve low balled the listing price. If you really want the house, offer their asking price. Believe me, the Realtor has priced this at the best price possible. The bank is still going to lose money.
Just so you understand, that property you are purchasing for alot less than asking, will be your future value until you improve the property or the values rise again. The whole idea behind buying real estate is to have some equity built in. Low balling takes away all the possible equity for sometime. Best of luck