REO Offers should be first, final and best

Offers on REO’s should be Last, Final and Best! I get more complaints from prospective buyers about their offers because they didn’t get the opportunity to counter. No matter how up front I can be about the offer process it seems to never get through that most times, banks aren’t going to counter, they are simply going to accepting the best offer and, that may not be yours. What really hammers my patience is when I get a call from a buyer’s agent that goes something like this….. Buyers Agent: Hi my name is Joe Super Realtor and I am calling to follow up on an offer we placed on 1313 Money Pitt Lane? Me: Hi Joe, thanks for the call, give me just a sec to find the file (brief pause) ok, it says here the bank accepted another offer. Buyers Agent: Um…we didn’t even get countered, shouldn’t we have received a counter? Me: No Joe, as stated in the MLS, “all offer should be Final and Best” this particular bank isn’t going to counter. Buyer Agents: Well, I didn’t see that so, how can I submit in my client’s counter? Me: Joe, that isn’t how this works, the bank has moved on and the bidding process is over. Buyers Agent: Can you explain this to my client, he is here with me now, I just don’t understand, how much was the other offer? Me: I am not going to go into details about another person’s offer however, it really doesn’t matter at this time, your client lost the bid by not following the instructions as outlined in the MLS. Buyers Agent: I don’t understand why the bank wouldn’t look at our offer when it’s more than what they accepted? Me: Ok, this isn’t going anywhere, was there anything else I can help you with? Buyers Agent: Can I speak with the bank, do you have a number I can reach them at? Me: No, I don’t have a number you can reach them at. Buyers Agent: How do you contact them, they have to have a number right? Me: Let me be more specific, No, I don’t have a number that is published. I can’t provide you with their contact information. Buyers Agent: Well, whatever…….this is awful and I can’t believe your bank would do this to my buyer. We are going to find another house and steer clear of these REO’s. Me: Ok, well thanks for calling and have a great day! BUYER AGENTS, FOLLOW THE MLS AND EDUCATE YOUR CLIENT. IF YOU DON’T KNOW THE PROCESS OR HAVE QUESTIONS, CALL ME BEFORE YOU PUT IN YOUR OFFER NOT AFTER! www.JesseGonzalezRealEstate.com

Oh My! How long have I waited for this subject matter to bubble to the surface. How many offers have I had to write in order to educate my buyers. Don't believe everything you read in the papers or hear on TV. Yes, it is a buyers market, we are swamped with inventory. Low ball offers may work on props in bad repair but the clean turn key REO homes have already been discounted to 50 cents on the dollar of what they sold for 2 or 3 years ago. Highest and best offer is just that. I have an attorney buyer that insisted on making a offer full price and cash, and told me that would work, well cash may be king but it is all cash at the close of escrow. So of course he was mad, to put it mildly, when he was out bid. He wanted names and numbers. Reality is a real slap in the face for some. So I am in hopes he understands when I tell him this prop is under priced and there will be a bidding war. AND STOP LISTENING TO THE MEDIA!!! I live this everyday, I have no reason to lie to you! This is the state of our RE Market. Ante up or get out, no cry babies allowed. Sorry I had to get that off my chest!!

You need to be a member of REO Pro Network to add comments!

Join REO Pro Network

Comments

Tere Rice November 5, 2008 at 4:17am

Oh My! How long have I waited for this subject matter to bubble to the surface. How many offers have I had to write in order to educate my buyers. Don't believe everything you read in the papers or hear on TV. Yes, it is a buyers market, we are swamped with inventory. Low ball offers may work on props in bad repair but the clean turn key REO homes have already been discounted to 50 cents on the dollar of what they sold for 2 or 3 years ago. Highest and best offer is just that. I have an attorney buyer that insisted on making a offer full price and cash, and told me that would work, well cash may be king but it is all cash at the close of escrow. So of course he was mad, to put it mildly, when he was out bid. He wanted names and numbers. Reality is a real slap in the face for some. So I am in hopes he understands when I tell him this prop is under priced and there will be a bidding war. AND STOP LISTENING TO THE MEDIA!!! I live this everyday, I have no reason to lie to you! This is the state of our RE Market. Ante up or get out, no cry babies allowed. Sorry I had to get that off my chest!!
Jesus (Jesse) Gonzalez October 30, 2008 at 9:28am

wow, that is interesting.....it makes me want to double check our laws here in Tennessee.
Steve Elmore October 30, 2008 at 4:36am

I thought the seller could dictate their rules also. However, in Kentucky according to the head legal counsel for the Kentucky Real Estate Commission - license law prevails over a buyer's or seller's instructions. Unfortunately I just went through this debate over a backup offer being submitted. Buyer's agent insisted that it be submitted even though the asset manager had already accepted an offer. State of Kentucky license law specifies that I, as the listing agent, MUST submit all offers when received by me to the seller. No and ifs or buts. Seller may do with them as they choose - but I must present. The Kentucky Real Estate Commission is publishing an article in their newsletter explaining that license law wins over banks and their policies which are not in line with Kentucky law.
Jesus (Jesse) Gonzalez October 30, 2008 at 2:40am

Yeah, Steve the law here in Tennessee is the same, all offers have to be presented however, you can get around that when in your Master List Agreement with the Asset Manager, you get them to state their requirements that must be met before I can present the offer to them. Some examples of these requirements are things like, Proof of funds, Earnest Money Minimums and whatever else the Asset Manager needs before they will consider the offer. This way, they (the Asset Manager) are createing the mandate, not me and, they are responsbile for enforcing, not me.
Steve Elmore October 29, 2008 at 2:07pm

I agree with you 100%. However, buyers and their agents are wanting something for nothing and have to play the game. I can not count the number of times the seller has flat out refused the offer. Then the buyer comes back and submits a realistic offer. Unfortunately in Kentucky, all offers have to be presented to the seller (state law) - even if the asset manager only throws them away.
Johnny Huang October 28, 2008 at 6:25am

I need to put that line up. I'm finding people trying to make low ball offers and they won't even budge on price. Why am I wasting my time on them?!? Anyone have a way to handle them besides kicking them in the corner?
Felicia Williams October 24, 2008 at 2:35pm

Jessie,
Thank you for your post, I have to agree with you. The agents should know by now to offer their highest and best offers, because the banks do not have time to play with offers. Thanks for the idea to put "all offers should be final and best" in mls.

This reply was deleted.