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Redfin Real Estate Forums :
Bay Area :
Re: REOs and bidding wars
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Re: REOs and bidding wars
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Charmaine
Redfin Lead Agent
Posts: 8
Registered: 03-03-2008
Message 2 of 5
Viewed 2,087 times
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Hello, I am a lead agent with Redfin and handle quite a few transactions dealing with foreclosures each week. When the bank first lists the property (usually at an aggressive price to attract multiple offers), the initial person bids thinking they are the sole offer. Then others trickle in over a few days. The bank believes it is only fair to counter back "highest and best" to give the people who first wrote the offer a chance to change their offer price or terms in order to be competitive with the new offers on the table. Keep in mind that not all banks will counter "highest and best," but they usually will if there are multiple offers. I hope this has helped you today! Best, Charmaine Frank
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04-08-2009 02:51 PM
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Re: REOs and bidding wars
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replier
Visitor
Posts: 8
Registered: 03-17-2008
Message 3 of 5
Viewed 1,949 times
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bank/private seller: they are likely will counter offer with a statement such as give me your best offer if they receive multiple offers for their property. however, it's up the buyer not to get over head and offer more than the true value of the property (meaning the home value prior to 2001). bidding wars will drive home prices to increase and that what had happened during 2002 thru 2007. uneducated buyers fall into a trap of "submit your best offer" and offer the price that is way overpriced compared to true value of the property- again home values prior to 2001. i'm a buyer myself, looking for a house to buy and if i see a bidding war situation happens, i move on to the next house. i do not want to get into a war with uneducated buyers (now called underwater homeowners). my 2 cents!
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04-08-2009 07:03 PM
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