During our years in real estate, some of the dumbest offers in real estate we saw were on foreclosed properties. From 2010-2013, we were foreclosure listing agents for HUD, Fannie Mae and several companies who handled foreclosed properties for the national banks. It wasn’t uncommon to have multiple offers on a property within a few days. If the property was priced too high, which sometimes happened, there would be no offers. The banks didn’t want to hold these properties so price reductions came frequently after 30 days on the market.
Dumbest Offers in Real Estate
During this time, there were several investors who would have agents working for them to make offers. They wouldn’t see the properties but would send an offer, typically for at least 75% off the list price. I guess that theory worked some of the time. However, the problem was that some of the homes weren’t even worth 75% of the list price. Without seeing them, these investors had no idea what they were buying. If they had waited to see what was available after 30 days, then made low offers, they would have had a better chance of getting them, and most likely gotten a better price.
Competition for Buyers Today
We are seeing this with a different motivation today. Buyers in the under $200,000 price range are in a fierce competition to get their offers accepted. Last week, an agent submitted an offer on a home her client hadn’t been able to see. She said the client didn’t want to miss out and would be seeing the house 2 days later.
There is a due diligence period in the state contract that would protect the buyer if she didn’t like the house after seeing it, but why would the seller agree to sell to someone who hadn’t seen it when they had 3 other offers from people who loved the house?
I can’t say this was among the dumbest offers ever, but if this is the method for winning the bid, you need to have a very strong offer such as full price or above, and no financing, to convince the seller to accept your offer. Most buyers are not in a position to do that so it’s usually best to be prepared to see a home, have financing in order, and try to be the first to submit your offer. That doesn’t always work, but it could be that others are not prepared… leaving you as the only bidder.
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