I purchase rental investment properties. REcently, my Realtor called me with a property that was probably underpriced (a repo) that had JUST come on market. It hadn't even shown up on realtor.com yet. We looked at it, thought it was a good deal, and offered MORE than asking, plus paid a THIRD down. This is a cash deal. We stayed late at her office to finish paperwork. Next day, she said when she turned in the paperwork to the listing agent, he said he was "waiting" because his broker wanted to turn in an offer and he wanted to submit them both together. I'm going to be PEEVED if his broker gets this house. What's the chance of his client paying more than asking price and paying a third down? Also, is this right, to hold offers and turn in together? Thanks!

I am no expert...but when we were in fl looking at foreclosures, and short sales our realtor said that they just group all offers together and submit. So i would think that is how they do it with all REO's? who knows.
Also, if you are a cash buyer and are offering more than asking...I think the finance company that holds the loan would be lacking brain if they were to take an offer contingent upon financing. Your offer is risk free pretty much. I would def. take a cash rather than a finance anyday. Now if the broker is just bluffing, trying to get you to put in a higher offer, that would be unethical I would think. A house we liked, that was a foreclosure, my realtor's broker said that she had numerous offers in on the house....well, that was a month ago and the house is still sitting. I think she was bluffing and trying to get us to put in an offer, if we really wanted the house.
Just my two cents.

If you don't feel comforable with the agent, get another one, and may sure it is a buyers' agent. Of course, cash is more attractive to the lender than finance. Would they take a higher offer if it was a "finance" --probably.

I have not heard of "grouping offers". If my buyer made an offer on a "short sale" or "foreclosure".. time is of the essence(by Fla. Law) on "ANY" transaction and I would expect immediate delivery.

However, sometimes it takes a while to get a reply when the lender is involved either as a seller or "short sale" 3rd party approval. I am convinced the offer get shuttled between departments of the lender once it is received and this may be where the grouping comes in..doesn't review until a group of contracts come in..who knows. Dealing with lenders as sellers or 3rd party approval..is indeed a big hassle.

You may get as good a buy... just with pure seller motivation. Look at both avenues.

This message has been edited. Last edited by: real estate lady,

Same thing happened to me a few months ago. The LA waited several days for his client to make an offer. We also offered over list, we did get it, but knew the LA would want his client's offer to work.
This is the reason I like to go through the LA to make an offer. I couldn't on this one because another agent brought me the listing. I won't go around an agent, but if I find it myself, I go directly to the LA. I would never sign an agreement for a BA.
BTW my transaction wasn't not an REO.

You're right to be suspicious here. How can you or your agent be sure the LA did not show your offer to his broker? It would be unethical for him to do so.

I would have your BA insist that your offer be presented without further delay - or you will report LA to the licensing board. The LA is free to tell the bank that another offer is forthcoming, but yours should not be held up in the meantime. Ask for a bank representative's signature confirming receipt of the offer.

I list lots of bank foreclosed properties, as well as, VA properties. Some banks and all VA properties have a specified waiting period, or bid period, where I collect all bids in sealed envelopes and turn them in at the same time at the end of the bidding period. So, the "gathering" process does exist in some states and with some sales. I would have thought, though, that is this were the procedure being applied to this property he would have informed you. On one hand, a Listing Agent would be doing the seller an injustice by not waiting to present ALL offers - especially when he had been informed that another offer was on the way. Put yourself in seller shoes...would you not want your LA to present to you as many as offers as possible? But - I agree with some of the above, as well. If the LA is playing dirty then shame on him. Anyway - that's just my take.

Sometimes the Seller will ask that offers be held until a certain day or time so they can have multiple offers at once, I forget the real term for it but it's done to get people to make higher offers.

Most people will accept a cash deal over someone who needs financing if the offers are the same or very close. When we bought the house we sold two years ago the sellers had my offer and another persons offer, the other people offered 500.00 more (just out of luck I had no idea how much the other person offered) but I had the 450k in cash for the house they obviously accepted my offer w/out coming back and saying hey we have another offer do you want to counter etc because they knew dealing w/a cash buyer was alot easier then someone who needed financing.

It's been my experience that the bank will only 'look' at offers on the day the board meets for just that purpose.

So whether your offer was faxed over 1st or 2nd or as a member of a 'group' it will still only be considered at the time of meeting.

Thats just one of the reasons these sales take so long to come to the table.

quote:

Originally posted by Trueheart:
It's been my experience that the bank will only 'look' at offers on the day the board meets for just that purpose.

Based on the foreclosure stats.....they might have to schedule more mtgs to handle the business.