What is the deal with that? I am willing to make an offer on this property but the company refuses to accept anything until a sign is posted out front. Meaning it’s not for sale until one of their real estate agents within their network is selected and posts a sign out front signaling the property is for sale.
Does anyone have a solution around their ignorant policies?
It’s like they don’t get it…I specifically told the bank (who owns the property I’m talking about) that I am willing to purchase it now not after it’s listed! Not tomorrow, not after breakfast…now!
Note: this property is located in Southeast FL, where property values are dropping significantly.
Not sure who you talk to at the bank but would call back and try again. If you get the same answer then ask for that person’s supervisor and make the offer. Could be the person you talk to is trying to save it for a buyer they know. I had a similar problem with a local bank and that is what was happening.
Or they know the Realtor.
Either way, if you can prove how much more this is going to cost them (the bank is going to have to pay for the Realtor) and get that to a supervisor - well you would think that would be enough.
Could it be that the bank wants as high a return as possible? Assume that your offer is $80K but by offering the property to as many as possible they get an offer of $120K. Remember, the bank does own an obligation to their shareholders.
Lenders who work with short sales do the same thing - they want the property advertised to a large market. That’s why short sales are so slow.
The policy may sound ignorant to you but it seems to make good business sense.
Well after a few discussions with others regarding this situation, they basically said the bank will try to get as much as they can get from the property even if it means holding on to it. Sure their policy makes sense, but if I can take it off your hands today wouldn’t that be better?
The total default on this particular property is $509,000. They would be luck to get $425,000 in this market. I was thinking of offering $293,000. The total assessed value and stick with that.
The bank is following policy and as mentioned it is designed to expose the property to as many buyers as possible. Just think if it was your property and you were planning to list it for sale, some guy pulls up and offers you $$, do you take it or wait for the realtor to do their job?
One of the problems with banks is that the decision maker isn’t personally motivated to make the sale. Large companies are more like government entities, employees aren’t motivated to do things different from “standard policy”.
I think that they are following policy, which is always the path of least resistance in an organization of any size, and I think they are trying to maximize their dollars. If they are truly lucky to get $425K, let’s say they let it go for 20% less than that (which they probably won’t)…that’s still $340K, more than the $293K you’re thinking of offering.
While lenders don’t want property on the books, they are not willing to get rid of it any price to achieve this. It’s factored into their business that they will own some real estate.
I believe the real reason, is that the bank does not want to be percieved as offering preferential treatment. By negotiating prior to the massess having equal access might very well be percieved as preferential.
Well I went ahead and bid on the property. $250k… lower than the intial offer I was considering. I do not expect to hear back based on the advice I’ve been given, but I do plan on sending a contract once a week until a phone call or email is received.