Return to the Buying and Selling Homes Forum | Post a Follow-Up

 o
Strategy on foreclosure/multiple offer scenario

Posted by weedyacres (My Page) on
Fri, Jun 28, 13 at 10:30

Severely outdated but structurally sound house, has asking price of $15K. Probably worth $30K in current condition, say $50-60K when fixed up.

Lots of investors circling, 4 offers in so far, all around asking price. Listing agent says bank (BOA) likely to collect offers for a few days, then go back to everyone for "best and final" and pick one.

Is there any merit in offering above asking initially now in hopes that the bank will take it instead of sending it back for best and final? Or do they always send it back when there are multiple offers?

Tips on putting together best and final to gauge what others might be offering given the circumstances, and what the bank is likely to accept?

Note that this is decidedly NOT a hot area of the country where multiple offers are common. The market is starting to breathe again, but it's a slow-and-steady midwestern small town, not a hot big-city coastal market.


Follow-Up Postings:

 o
RE: Strategy on foreclosure/multiple offer scenario

Weedy: I can't offer advice on all aspects of your question, but I can to one particular part of it: I had my eye on a brick duplex in the part of town that I love, which was sorely dilapidated, wood rot everywhere, just a mess, but with its essential beauty quite visible to the naked eye. It was a short sale, and I waited months while a failed deal worked through the pipeline. And then at last it came back on the market. Oh, joy! I was told there were multiple offers (yadayada). I figured out what I was willing to pay and offered it--and got it. My offer was accepted by the seller on March 1, 2012. Being a short sale, there was a long row to hoe before all was said and done. I did not take possession until nine months later. If I were you I would make your best offer now--no higher or lower than what you are willing to ultimately pay--and then the chips will fall as they will. Good luck.


 o
RE: Strategy on foreclosure/multiple offer scenario

The bank is going to accept the best and highest offer. Cash offers trump financing, then the highest of the cash offers. Since four offers are already in, chances are pretty good you will be in a best and final situation no matter what your offer is now. It doesn't hurt to go above asking now, they may take it,if they don't, you get another crack at it, doesnt mean you have to go higher, just stay the same if that is your best.


 o
RE: Strategy on foreclosure/multiple offer scenario.

By the way, where are you that there are houses for 15k????


 o
RE: Strategy on foreclosure/multiple offer scenario

Linda117, I have no idea where Weedy is buying but I live in a mid-sized city and there are houses for 15k. I posted in another thread that my home was a little less than $17/sq. ft. and that's not unusual here.


 o
RE: Strategy on foreclosure/multiple offer scenario

(I'm a little envious of that ability to buy for so little, fix up and sell... If only!)


 o
RE: Strategy on foreclosure/multiple offer scenario

That's a great price. Even the absolute dumps listed as is and work needed are $55K here.


 o
RE: Strategy on foreclosure/multiple offer scenario

Our absolute dumps, with freeway wall 20 feet from the back door are presently 339k...


 o
RE: Strategy on foreclosure/multiple offer scenario

Linda: small town in the midwest. Home prices for current listings are $12,999-550,000. Median ~$120K. 16 houses for sale <$25K, but many of these are in the "ghetto" part of town and are not likely in great shape. Even fixed up, because of location, they wouldn't fetch much more.

The house in question isn't in the "ghetto," it's in the more "working class" part of town, where houses typically sell in the 40-80K range, but there are some larger ones in the low 100's too.

There are other advantages to living outside the big cities: no rush hour to speak of, free parking downtown (or anywhere)...


 o
RE: Strategy on foreclosure/multiple offer scenario

Weedy,
When my clients face a multiple offer situation, I advise them to come in with the highest amount possible that ensures if you do not get the property, you are OK with it.
Remember, there is going to be a winner and a loser. At what price point do you not mind being the loser? Bid that amount.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here