I want to place a bid on a home in a short sale situation. After I place a bid the bank will then have it

Question

appraised. I am concerned if my bid is too low someone else could bid more in the meantilme and I could lose the house! Is the bank obligated in any way to work with me and tell me they need more before taking someone elese's offer?

Answer 1

No one, including a bank is obligated to counter offer.   Banks typically DO NOT.    They accept highest and best, or none at all.

If you think you are low balling too much then raise your offer to what you think is fair.   If someone offers more then what YOU think it is worth then it will be no big deal.

Answer 2

Of course the bank will use whatever means are available to it to insure that the highest offer for the property is accepted.  When you deal with a short sale, you make an offer based upon what you want to pay.  If another buyer offers $5K more than you do, you're out in the cold.

Do not EVER think that you have any 'upper hand' when dealing with any sort of real estate purchase.  Generally, the accepted offer is the best offered to the seller.

Answer 3

Banks and or sellers can only negotiate one offer at a time.  If two or more offers come in at the same time they will usually pick the highest offer unless there are alot of contingencies attached to it.  Put a time of acceptance on your offer.  Two or three days since it has to go to a bank.  Go to you counties property tax appraisers wesite and see what the current owner paid for it.  Go from there.

Answer 4

They are not obligated to you.  There only concern is obtaining the highest price they can for the property.  I don't know that it would be ethical for them to reveal anybody else's offer on a property.  That would be encouraging a bidding war.