Is the seller trying to bully us?
We put an offer on a house in foreclosure a week ago. Two days later, the bank (seller) stated that they had another offer and were entertaining final and best offers until the end of the day. We put in what we felt was a very strong offer: we offered the list price, and we have no home-to-sell contingency.
The contingencies that we do have are a termite inspection (about $50, seller’s responsibility by law), septic tank inspection (seller), assessment (VA provided), home inspection (our responsibility) and a seller contribution of $4k (we put $6k in the offer).
Today (5 days since the “final and best” offer), they informed us that our offers are still very close and are looking for anything that could move up the closing date or “clean up” the contract. We already have a pretty aggressive closing date, and our mortgage company may not be able to do anything faster. As far as contingencies go, we will not waive a home inspection, the VA requires the assessment. I could care less who pays for the sewage and termite inspection.
Our agent is going to tell the listing agent that we don’t feel it would be responsible to move up the closing date and that we will consider negotiating contingencies if they isolate specific contingencies that are problematic for them. We are very motivated to buy this house, but it feels like they’re just putting a feeler out there to see if they can sweeten the pot any. I’m not convinced that we haven’t already significantly surpassed the other bid. On the other hand, our offer is still about 15% lower than recently sold comps in the area.
What do you think? Did we do the right thing here? Advice?
@thekid: I’m not questioning whether they’re acting within their rights. I’m asking for advice on how to react to them.
@transfer: The home inspection responsibility is on us, as I indicated. Also, I’m not saying that they didn’t get two offers–I’m wondering what the odds are that they’re misrepresenting the other offer to squeeze more out of us.
They are trying to max out what they get. They have every right to do so.
You’re probably doing the right thing. For all you know there are no other offers. The real question is: Is this property worth more or less to you than you’ve offered? If the answer is that it’s exactly right for you, then you shouldn’t do anything further.
First off since the property is bank owned they do not have to provide any inspection. That is up to you. Be happy that you are in a position to buy at a really good price. All you can do is put in a competitive offer. They are not stupid, and if you think that your offer is not competitive than I am sure they think the same. It is not just one side that is trying to get a good deal or make money. Also since it is bank owned your offers are being decided upon in a board room with several people.
By the way the agent is required by law to tell you the truth if their are other offers or not. Atleast in my state.
this house is not going to work for you; find one that is either an auction house or just
one on the market; banks love to play with buyers.
You wonder about these tactics. Sort of like when you go to a used car lot, see something you like, and the salesman said, “I had a person this morning who was interested in buying this for his son.” Yeah, right.
Sure, the bank has all these other offers. But ask to see them, then suddenly its, “No, we can’t do that. Privacy, confidentiality, blah, blah, blah.”
Do you feel you gave them your best offer? If so, then stick with it. Call the seller, and say you need a decision by Thursday at noon, because you’ve been looking at these other properties, etc. If you don’t get a response by Thursday, then withdraw your offer and shop elsewhere.
These are normal problems associated with bank owned properties. The bank is not as motivated to make concessions or negotiate and usually are not in a hurry. This house is important to you but to them it is just one of many on their inventory. Wait until the VA inspection finds some items that they feel need fixing before approving the loan . Good Luck in getting the bank to make the corrections. The price may seem cheap going into the deal but the aggravation isn’t always worth it.
make new offer……your price..you will pay for all inspections..no seller contributions…(make your offer to reflect the parts that seller would have paid in your first offer)..make it a contract to be accepted within a time frame..if they proceed to play the waiting game..find another home
Yes they can. You have done the right things. It isn’t as if there aren’t an awful lot of houses out there that need to be sold. Hold your ground. They are just messing with you. Make sure the out clauses on the home inspection and termite inspection reports are strong. You should always get your own inspections done, never rely on the vendor’s agents to tell you the truth. All things being equal, human nature, means that they are likely to opine on the side of ensuring their continued business, not on the risks to you.