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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Competing offer-best and final needed today
Here is the long & short - MN bank-owned property 1 hr and 20 mins (Mora). (that's why house is so cheap) - here is link (must cut & paste) : http://msp.themlsonline.com/details,df468dbd8402743b1284ef2932ccae98,1,results,4039635List price on Sun $139,900 due for price drop. House already in price range. Put together offer of $135k b/c we saw one card there-1 other person has seen the property in 4 mos - bank to pay all CC . Prior to submission to bank, price dropped-to 124,900 - bank never saw our offer so we resubmit offer to $128,100, same stipulations by 5PM. Bank has seen offer and got a call from an agent Tues a.m. saying their client wants to put in an offer. We assume they are pre-approved like us and are the ones from the wkend. We must give best and final by 3:00 today. We want this house. It's the acreage mostly, (10 acres, square plot-rare) but also like the house. The house set up is quite UNDESIRABLE for lots of people but we like it and it will work for us, even if we had a second child. Thoughts on what you would offer? Most of friends/family have said offer $135k -138k. We want to not 'get a steal' and beat out the people - we just want to beat out the other offer..and we want it. If it were you -- what would you do? I am thinking $138,100 bank to pay all closing. We might be 'overpaying' so to speak it's still within our parameters and budget....TIA
Re: Competing offer-best and final needed today
I don't know if this is possible here in the U.S., but I recently saw an episode of Property Virgins on HGTV where they did this kind of offer (it was in Canada, so that's why I'm not sure it works here):
Offer = $100 more than any other offer, not to exceed $138,100.
It was written into the offer that proof of the amount bid by any other party must be submitted, so the seller's agent has to be honest about the amount of the next highest offer.
This way, you're guaranteed to be the highest bid as long as it's not over the amount you're comfortable paying. You're also not going to pay more than you have to for the house. If the other person's offer is $125,000, you'd pay $125,100.
It might be worth looking into. I'm not a real estate agent, so I don't know if this is legal or not.
Mr. Sammy Dog
This seems like great advice, but something tells me it seems too logical to be allowed!
I was going to suggest this too. What does your realtor think?
It is VERY much allowed in real estate transactions in the US, its just a REALLY old way of doing things...we don't see it much anymore. With that being said I just sold a listing in Roseville this way. It was a DVA buyer who offered $1,000 over the highest offer not to exceed $191,000...the other offer was only for $169,000 with a lot of concessions so we took that offer at $171,000 so the DVA buyer got a deal but we knew he was serious based on that type of offer.
With that being said you're playing with a bank, and their goal is to get the most amount of money for a property, so I ALWAYS suggest going in with your strongest and best offer...an offer you feel comfortable with but won't lose sleep over if you don't get it.
Thanks ladies...
interesting...our RE never mentioned this; in fact, he said unless we win the 'bid' (it's not auction, it's just straight REO) we won't know what the other party(ies) bid...we will only find out that if we lose??? Our RE comes highly recommended, in business for 20 years and owns his own RE company AND specializes in bank-owns...he also doesn't stand to make much more by having any type of bidding war, etc.
We submitted $138,1k. My guess is even if the other party low-balled (seriously NO action for 3 1/2 mos, we view the property same day as another agent) we start an offer, price drops and then we re-offer....but yes, we want this house, we want the land and it's already been done. Will be interesting to see what happens.
You are correct you won't know what the other party offered until you lose (if that happens). The only way to truly know would be to do it that old fashioned way to say "we'll beat any offer by $1,000 to a certain point" And if you still lose then you know that the price went over.
As an aside, I'm sure you're agent is awesome what I mentioned as well as PP with the price match type offer isn't typically used anymore so he/she may not have mentioned it because it isn't used much anymore...but is a great way to get the house if you want. Most agents work with banked owned these days because its all buyers want right now, so everyone out there specializes in REO if they want to make money.