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March 26th, 2009 8:13 AM by David W. Welch
I am not in the office right now, so forgive me for not having the exact dates. Almost two months ago a customer of mine had me write an offer on a bank owned property here in Orlando. At the time the property was priced at $72,900. Our initial offer was $67,000 if I remember correctly. They came back and asked for highest and best, stating that there were multiple offers. He increased his offer to $68,000. A few days later they came back again and asked for highest and best and he raised his offer to $69,000. A few more days went by, and you guessed it they asked for highest and best. He kept his offer the same at $69,000. After several days they came back again requesting the buyer to sign a statement that he understood that there were multiple offers and that $69,000 was his highest and best offer. He signed it and sent it back in.
After several more days they sent a counter offer to my buyer accepting the price of $69,000 but extending the closing date three weeks. I believe he wanted to close in mid March. He accepted the counter offer, but we had to wait for the bank to prepare their addendum for him to actually sign off. After about two weeks, they dropped their price in the MLS to $68,900. While this was $100 less than my buyer had already agree to pay, it was $4,000 less than the price they had when he first offered on the property. Naturally, he wanted to drop his offer. They dropped $4,000 so did he to $65,000. They came back and stated there were once again multiple offers and they wanted highest and best. He raised his back up to $68,000. They sent us a counter offer accepting $68,000 but pushed the closing out another two weeks. He, of course, accepted this since it saved him $1,000 from his original agreement. They were going to prepare their addendum and get it to us for the buyer to sign off.
Then two weeks ago, completely out of the blue, the bank comes back to us and counters his offer at $53,500 and pushed the closing back another two weeks. Yes $14,500 less than what he had already agreed to pay for the property. Naturally, he said yes, but we had to wait for them to prepare their addendums for him to sign. As I have been doing through this entire process, I followed up with the listing agent to find out what was going on with the addendum. They told me the bank had kicked it out because the approval letter for my buyer was now too old. (By the way, he was approved through the bank's approved lender.) He called the bank, had his approval updated, and we resubmitted it the same day. Fast forward to today. I have just received notification that the bank has decided to put this property up for auction. This is why Realtors have been fighting to keep banks out of real estate.
David Welch, Real Estate Optimist