I just this weekend went to see a property that I found with a realtor the property had been on the market for 92 day today.Before Sunday the realtor I went with did not even no about the property i found, I found it on a drive by. It was a bank owned property that was 405 but was down to 220 multi family. She has been rushing me to since Sunday night to make an offer on it but I just wanted to make sure the numbers add up (cash flow etc…). So today I said ok I would make an offer. She called me back 5mins later to tell me that someone else made a offer this moring and that the bank is likly to except the offer made. I m wondering if she ran the property by a other investor all in order to get a sale because of my non rush approach. Do things like this happen. I am like so mad if that is what happen :banghead
When did the price drop on the property? You’d be surprised how something will sit on the market and then get all kinds of attention once it hits a certain price point. We saw this with our current deal. It’s a 3/1 REO that needs a little work. Overall in decent shape. It was priced up in the 20K range for awhile. They worked the price down to mid-teens, then 12k, then 9k. Once they hit 9k, they had all kinds of interest. I watched the price come down on this one, but didn’t even go check it out until it got to 9k. It dropped to 9k about the middle of a week. I went to check it out on that Friday. We were originally going to come in at 6k and try to get it for 7k. When we were getting ready to submit our offer, we found out there were already two other offers waiting to go to the bank. We decided to go $9,100 cash in hopes that we’d trump a full priced offer. It worked and we got it under contract the following Tuesday.
The numbers you posted on this property in the other thread looked pretty good. It’s entirely possible other investors were just waiting to see it at a certain price before they reacted. We lost a deal on a short sale house by waiting too long. If you see a good deal, you have to be ready to pull the trigger on it. Our Realtor knows we’re always looking for something else so he’ll call me when he thinks there’s something we want on the MLS. I’m sure there are others out there just like me.
So maybe not foul play, just some hesitation on your part. If the bank hasn’t accepted the offer, you could always put a good one in and see where it goes. Be ready to show proof of funds though.
WOW, this might be too much for me. Lets see, multi unit property reduced from $405k to $220k owned by a bank (Lender) as an REO.
Ok, I take it your realtor is not the listing agent, it sounds like when you called your agent to write an offer, your agent called the other realtor to let that agent know an offer is on the way.
Your agent can not write an offer for another party while representing you, it is called a “Conflict of Interests” and probable is against agency rules in your state, so your agent probable did not write another offer.
Now if your agent is not the listing agent, as you said “Just found out on Sunday” then this is listed on the MLS and there are lots of agents that would pick this up.
Any search through listings say $25k to $250k would pick it up, if it is as good a deal as you think, write an offer for $230k or something.
The listing agent has to present it to the bank (Lender) and since an offer made yesterday could not possible make it to committee for approval in one day, start a bidding war up to what you think you can pay and still make a profit.
You would not be the first person to pay over list price for a good deal, get in there and battle if it is a fanastic deal, it is an open deal, and if your area has a lot of agencies and a lot of agents it is no surprise it is a good deal.