It's getting pretty common for well priced foreclosure homes to get multiple bids. Here in Manatee County I sell a lot of Bank owned homes to buyers looking for a great deal. Our prices have dropped to about Half of the peak prices, and our inventory is tight. Manatee County now has about half the homes from three years ago. Multiple offers is something that I am used to dealing with, but this week I was thrown a curve from Freddie Mac.
As a buyer's agent multiple offers to compete against is never good news!
That "low-ball" offer with all the contingencies does not look as enticing now..
In the past when I was involved with a multiple bid situation the listing agent would present a "
I was writing an offer for a Freddie Mac owned home in Parrish, FL, and was told that the seller only considers "one offer at a time". There was also another offer in, and it would only be considered if the first was not successful.
I am not sure if I like the new system. As I see it, the only person benefiting is the "first" buyer to come along since they do not have to compete with any offers.
this procedure is bad for pretty much everyone else
- Other buyers do not benefit since their offers are not seen until the prior offer fails.
- The Seller loses too. No question that buyer that are allowed to outbid their competitors will drive up the price. This would be more money for the lender/investor.
- This does not helps out the former homeowner, with potential reduced deficiencies,
- The neighbors lose too. A lower selling price keeps the property values down for homes in the area. this puts further pressure on neighbors doing short sales, or strategic defaults.
Thanks,Joseph C Murphy P.A.