One thing we’re seeing a lot of these days with all the foreclosed properties are multiple counter offers. This is especially true when a bank prices a property under current market value in hopes of a quick sale. When the low price fetches several offers (often in just one weekend), then the bank or asset manager goes about the task of deciding which offer it likes the best and in many cases, it will send out a batch of counters. This is called “multiple counter offers.”
In California, a counter offer automatically voids the original contract if that’s how the other party wishes to handle it. However, with multiple counter offers it means that the bank is considering more than just your offer; it is giving all the prospective buyers it countered the opportunity to sweeten the pot. While money is certainly a driving factor, there may be other things that entice an asset manager such as an all cash buyer or a short escrow period.
That said, I advise my clients to carefully consider counter offer as the serious business they are. If my buyers really want the property, they may just, if able, want to accept the counter offer (assuming it’s reasonable). Because remember, once you counter a counter, you are essentially saying, “No, but what about this idea?”
Buying foreclosures can get a bit complicated. Be sure you have an excellent agent on your side to help your navigate through all the ups and downs, ins and outs. Hey, someone like me!
Enjoy!
Tamara
