Can I Offer the Bank Less Than My Original Offer?

Well, you can tell I’m a total newb at this, haha. I have an offer on a property that just had the bpo done. The person doing the bpo told me how “scared” they were to go to this property and that the bpo would probably come in less than the contract price I submitted to the bank. Can I go back to the bank and offer them less? Should I wait for the bank to come back and say they’ve accepted my first offer and then tell them I want to offer less? Should I tell them I want to offer less before they get back to me? The bpo will be submitted to the bank on Monday and I’m a bit concerned about them realizing I know the bpo came in low and that I’m changing my offer because of that. Thoughts?

I am assuming that ALL your offers have an inspection clause that allows you to withdraw from the contract offer if the inspection does not validate the value of your offer. If you don’t do that, you probably want to in the future.

Withdrawing the offer and giving a valid reason could work fine, but it is difficult to advise without seeing your paperwork.

Remember, there are endless sources of banks with way too many defaulted loans. They need you to buy more than you need one particular property as this one.

Check your paperwork and withdraw your offer if it is a bad deal. Make another offer with the right numbers…if it doesn’t work, just go to the next deal. Every offer will not become a deal!


Hello and good to meet you…

Why is your offer so high in the first place… Always begin at 50cents on the dollar… You can always go up… However now just resubmit…

Good luck


Here’s my deal:

homeowner owes $51,000
bank offer is $22,000
Have cash buyer anxious to close at $49,900

BPO basically told me it will come in less than $20k. If I have to restart everything I’ll keep everything as is. If it were easy to offer $5k less without losing time I would. These are my first few short sales and time is of the essence for me because I really need some fundage…so I’ll just continue on. Thanks


Will you close your deal at the number you contracted… And be happy… Get a non refundable deposit from your buyer to make certain they are in the game…

First lesson in REI 101 - Your Number is Your Number when you meet it be happy and dont cry that you may have left something on the table…

I wanna say good job but I am still amazed you asked…


Haha, to be honest I’m really excited about this deal. I’ve been a realtor really struggling for the last year to makes ends meet for me and the family, so I’m excited about finally doing something on my own with short sales. My first deal just happened to be with an end buyer who is a development corp that’s been waiting for this to come up at sheriff’s sale for the $51k+. So they’ll stay in the game. I just want to get to closing ASAP. Thanks again

P.S. Michael you have a PM… thanks

I hope you dont have agency with the borrower… Tell me that your listing agreement is with yourself… And that you are not representing the Buyer…

No, I’m not representing anyone. I’m just disclosed to the bank as a licensed RE agent as the buyer, and disclosed to the end buyer as a licensed seller. There is another listing agent representing the homeowner, and another buyer agent representing me just so the bank pays both sides of the commission in case they wouldn’t with me as the buyer and my own agent. I started this short sale before I ever found this buyer too. In fact I’ve been holding off on getting a contract with the end buyer just because I don’t want to “officially” know that there is a higher value for the property before I engaged the bank and got close to final approval. There are no agents involved in the B-C transaction. Please let me know if I’m doing something wrong. My mantra as a realtor and now investor has always been to do things the right way. I don’t want to jeapardize anyone especially myself or my family.

Only thing I see is that you should be buying directly from the seller… Does the sellers agent know your intentions? And as for the bank and commission… I would have anyone else negotiate witht he bank… After all they are looking for a net and the 1% that they may object to isnt an issue when you start putting others into the equation…

BTW I noticed your PM… Lets set a time to chat via the telephone…

Congrats this time…


Yes, I am buying from the seller. I will have an A-B transaction with me and the seller and the bank, then B-C transaction with me and the end buyer. I got the ss package together including a contract to purchase from the seller and just negotiated myself. I don’t have an LLC yet so it’s in my name which I know people say not to do. Once I get a deal done I’ll put the LLC together. Then, I put another agent friend on as the listing agent. I also asked another agent in a different office to go on as my buyer’s agent even though he doesn’t really do anything. And thanks Michael, I’d love to set up a time to chat. I checked out your web site so I don’t mind go through that if you want. Let me know either on here or PM what your schedule is like this week and when would be a couple of good times for you. Thanks, I really appreciate it!

Sounds to me like the deal is pretty good, congrats and best of luck!