As far as selling a bank-owned REO property, do the banks generally accept only the HIGHEST qualified offer?
August 3, 2010 by gtsay
Filed under Foreclosure Properties
Question by Happy day: As far as selling a bank-owned REO property, do the banks generally accept only the HIGHEST qualified offer?
Regardless each bidder’s financial condition (down payment amount/ excellent credit score/ contengencies…)?
For example:
Bank’s target price is 0K. Two offers received from two possible buyers.
Buyer A: Offer 2K, 5% down, credit score good 750.
Buyer B: Offer 0K, 20% down, credit score Excellent 803.
Which one would be in favor of by the bank?
Best answer:
Answer by pbandham
No, they take all matters into consideration, but typically, you don’t find out all the other stuff until you are into the transaction. So initially, all things being equal, they will take the highest offer. But in this market, REO offers come in one at a time so they don’t have to really pick one out of a group. They have a bottom price they won’t accept below, and any reasonable offer above it, they will accept.
Add your own answer in the comments!
Wouldn’t you? You said highest QUALIFIED offer.
Yes, if there are multiple offers. If you make an offer only give them 48 hours to respond so they don’t sit on it waiting for other offers (24 hours would be better, but the banks move pretty slow) .
When I write an offer on bank owned properties (assuming there are no other offers on the table), I go in insultingly low, because the banks don’t get insulted. They’re not your average seller with sentimental value in the home, and the bank will counter back with their bottom line. Most bank owned properties have had three months worth of inspections and appraisals, they know what is wrong with the house and how much it is worth. Have your lender prepare a few approval letters with different loan amounts, because the banks usually won’t look at offers without approval letters.
They will take A. The only thing that would make them accept B instead is if A is wanting contingencies that effect the bottom line.
The bank will take the offer THAT NETS THE MOST MONEY OR CAN CLOSE THE FASTEST. When you make an offer you don’t submit your credit score so these differences wouldn’t be noted to the bank officer considering them.