What do banks look for when comparing more than one home offer?
My husband and I put an offer in on a place her in the Vegas area and learned from our realtor that there was one other offer put in around the same time. She told us that the listing agent said ours was the higher offer. Both offers were submitted to the bank (it’s a foreclosure property) today. What are the odds that ours will be selected? AND, does a bank have to counter BOTH offers? Or just the better one. In other words, how does a bank determine which offer is better????
We’re pre-approved. We have k liquid reserves.
4 Responses
NevadaHomes
14 Feb 2010
Big Deal Maker
14 Feb 2010
They look at your offer regardless if you are higher or not. Also they look at your down payment.
They look at if you can qualify for the loan. And then they will counter offer or not and just except your offer.
If you are the higher offer they will not even need to counter with the other party if it is lower regardless.
criolla80
14 Feb 2010
Being a higher bidder increases your odds but if the other is a cash buyer..they may take that one so that the purchase goes through smoothly.
lee_parman2000
14 Feb 2010
If you get it or before. Make sure the title is perfected. You could end up buying a property that has more than one lien on it.
Here are few things you need to know about bank owned homes.
~Banks are overwhelmed right now dealing with their foreclosures; therefore, response time is very slow. Close of escrow can take be up to 60-120 days.
~Their main concern is their bottom line. They usually accept the offer that are non-contingent on another home and can give them the highest profit.
~Banks do not conduct any repairs; therefore, get it inspected so there will be no surprises. Make your offer contingent on the inspection.
~They consider if you are solid buyers (amount of down payment and earnest money).
There are many more details. Your real estate professional can guide you through the process.