has anyone tried a reverse auction approach?
Particularly in the case of homogeneous properties...for example.....multiple vacant lots within the same subdivision which are held in OREO by different banks.
How does this work?
has anyone tried a reverse auction approach?
Particularly in the case of homogeneous properties...for example.....multiple vacant lots within the same subdivision which are held in OREO by different banks.
If you think you really want an REO property and you belive other offers are close but don't know exactly - so might loose out - offer the bank to pay the amount equal to the highest bid plus $1,000. We used this with a aproperty and the bank took it.
How does this work?
Offers come in around $290,000, along with one which states, highest offer plus $1,000. Banker goes to a friend and says, "give me an offer (remind you, not a contract), of $600,000 for this property. Guess who the winner of the contract is. YOU! or, in reality, the bank because you just got hosed for $300,000 more than the house is worth.
this would be a big no-no!! i like to think folks are more ethical than that....but
Could an appraisal contingency mitigate this concern? If not, then the question would become how can you define an arms-length or "legitimate" offer.
Truthfully, I've never seen much of a need of a highest bid + offer as, at least in my experience & in this type market, it is a rare occasion when you have multiple offers coming in simultaneously.