This past saturday we placed an offer on a REO home for full listing price, 20% down, no contingencies, and a speedy closing. The home was listed on the MLS through a listing agent that friday.
We just so happen to know a neighbor who approached an agent that was showing the house the same day we submitted our offer (Saturday). After playing nosey neighbor, the agent told our friend that the house was just sold for almost 60k over its listing price. Is this possible, considering the house was listed on a that friday afternoon?

We too would also consider placing an offer above the listing price, but the 60K mentioned above was above current market value for that neighborhood.

Any insight on purchasing a REO would be greatly appreciated. Or did this one get yanked from underneath us?

Thanks,

Or yanked from ABOVE you, as it were ? I have no idea about where in the U.S. you're located; but Bank related things don't happen that fast on the weekend.

I could be wrong (I was once); but if it is true that the Subject Property was just listed on Friday . . . . nothing is going to be firmed up until this coming week. IF it was in MLS, and IF you placed your Offer through an Agent who is a Member of the MLS; then he/she would be able to clarify whether both you and he are wasting your time.

Unbeleiveable as it may sound, sometimes Agents speaking "Off the Cuff" may say things that are not entirely true ! They sometimes have ulterior motives to maybe appear to be in possession of special exclusive information for ego purposes only, or to guide someone, who they consider to be a prospective Customer, to cease their consideration of the Subject Property and move on to one that may be more lucrative, monetarily, for themselves.

If the Subject had been sold as the "Agent" told the Neighbors; then what, pray tell, was he doing wasting his time there when they met him ? Conducting a Building Inspection ?

Your Agent should be able, and even eager, to clarify this matter for you quickly !

So why would the agent be showing the property if it had already sold? I agree not everything that is spoken in real estate is completely accurate.

We (our agent and us)agree that this seems like BS, or a tactic to discourage other potentials to give his client a better chance on getting the home.

Was our full price offer a good move or should we have went in with a greater than list price offer? We're in Michigan and we believe that our offer was very strong, based on the current market.

Oh, and thanks for the resposes.

Someone from Michigan will have to address the Market Conditions in your Territory.

But, meanwhile, I can't resist asking if you would pronounce your TagName here "Skin Me" ? like in "Take me to the Cleaners !" or "Please empty my Wallet". That's what I get phonetically; but I'm always seeing Apparitions. Be On Guard anyway ! And thanks for reading.

I think you have made a very strong offer. I agree that saying the subject property being sold under those conditions is BS; just an accpeted offer in that time frame streches the imagination let alone a true "sold".

You agent should be able to get more info for you on Monday, but I don't think you should be second guessing yourselves.

I think it's BS

You could have a verbal acceptance from the REO asset manager (bank) that fast but usually banks want to have it on the mls for at least a week to draw multiple offers.

Of course if there is an offer that meets there guidelines they might accept immediately but even then servicers and banks reserve the right to entertain more offers even with verbal acceptance until all documents are signed by both parties.

Sometimes people OVERPAY for properties-DON"T let that be you!

I would offer up to your comfort level and then let someone else overpay and move on to the VAST amount of properties available.

Thanks again to all responses.
One more question to make us sleep easier. If another offer was submitted, let say 20K higher than the already low listing price, would the bank respond back to all offers with a second chance "highest and best offer" or would they take the first highest offer. I realize all banks are different, just looking for a typical.

Thanks again and have a great night.

Vermont007, our tag name is our sons initials, SC, in Michigan, thus "scinmi"

Most of the REO clients I work with will request "highest/best" even if all offers are above list.

I try to make sure buyers understand that "highest", all by itself, is not always "best". I setting up an example for them where there might be two offers only $1k apart but with the higher one being loaded with contingencies and far out close date vs. the lower one being a no contingency cash deal close in less than a month.

I had a property that the bank listed low on a Thursday evening Mls Friday a.m. We had 20 or so offers over the weekend, most over asking winning bid was 36K over. Anyway My asset manager told me on Saturday, (yes he was working) enough! They did not want anymore to review at that point. So maybe if it really did get on 60K over it was enough for them.

Also I had a multi offer situation and the bank never countered highest & best, just took the highest. I was very surprised as I was expecting the counter from them. They could have got more for the property if they had. Never the same situation twice!!!

I have had responses from a bank over the weekend. It is not typical, but it can happen. In regards to the highest and best tactic, some banks will do that and some won't. It all depends on each situation. I know some banks just want an offer within their guidelines, then they will accept it without playing games.

Let us know what happened with this property.

I have a bank that I can call the AM on weekends, He actually encourages it. I can get a yes/no/counter instantly.

Years ago I was working as a Buyers agent for an REO Lister. He listed one on Dec.23 late in the night. Christmas EVE my phone blew up enough that I ended up staying at that property and hosting an off the cuff open house. I wrote 5 contracts, a total of 12 contracts were submitted. The property went for 80K above list price. The bank approved the winning bid on Christmas Day.

And I know you are wondering, if I had the winning contract. I did not. I still had a nice Christmas though.