A couple of years ago I wrote a post about a particular property. It was a foreclosure, and the bank acted stupidly. And I’m not saying that lightly. Had they accepted my client’s offer, they would have sold the property a year earlier and for $40k more than they eventually got.
Now I see a lot of people making the same mistake from the other side of the fence…
I see buyers trying to deliver one last beating to the bank… often during the inspection phase… and losing a great deal over things that are trivial. I understand it. That doesn’t make it any better…
I had one client that was angry that the bank accepted his offer. He thought they would counter. I had warned him that they might accept of reject, but not counter. Some of the banks have a number. If you offer $1 over the number, they accept. If you offer $1 below, they reject. During the inspection period, this client made a LOT of demands. The bank rejected. No counter… no discussion.
Don’t make the same mistake the banks were making.
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I'd love to hear from you...
Lane, It is truly in the banks court and the buyer needs to understand that from the beginning. Some do but others just won't listen.
Lane - I had a buyer that wouldn't believe me that a low ball offer might not even get a counter offer. Well we put the offer in and it was flat out rejected with no counter.
Lane, the biggest problem is they read amazing "stories" and they think that we don't have their best interest in mind. That we just want "to make a sale". If they would just listen to good advice from their Realtors, there would be many more happy endings.
I agree with you. The banks tend to be smart about one thing, pricing. They have already taken in to account the bad market when they set the price. They are not going to let you take 20% off again, unless it has set a long time.