Paging FBG Realtors. (corporate owned house for sale) (1 Viewer)

We have been looking to downsize. I won't go into details. We've been browsing online over the past few months. This week we found a house that we were interested in. I set up a tour through Redfin. The agent reached out via text and asked if we had any questions. I asked why it was listed so low compared to other properties in the area. Her response was that it was corporate owned and that the have had 20 offers so far. They are going to wait 10 days and then determine who wins. 

This wasn't listed in on any of the listing sites. The Redfin agent said she didn't know about it until she reached out to the listing agent a few days ago to get more details. Is this a normal for them to dangle a low price and then tell you that they are only accepting bids for 10 days? We aren't going to go look at this point. My bet is that they are going to get $25-$40k more than the current asking price. I know two potential buyers may get into a bidding war. But, this seems like it should have been listed as a silent auction from the start. (I also understand that laws from state to state are probably different)

Thanks for input. Or shtick.

Banks/Realtors pretty much do this on foreclosures and short sales.

Bank says here, sell this house...its in foreclosure. 

Agent sees it should see for about 300k.

They list it for 235k. 

Everyone and there mother comes to look at it. All offer need to be approved by the bank. Bank will sit on it til they like an offer and then accept.

In the meantime agent is showing you other homes and gets a fee more clients in the meantime. 

Corporate owned seems like a fancy way of saying foreclosure or bank owned. 

comfortably numb said:

Banks/Realtors pretty much do this on foreclosures and short sales.

Bank says here, sell this house...its in foreclosure. 

Agent sees it should see for about 300k.

They list it for 235k. 

Everyone and there mother comes to look at it. All offer need to be approved by the bank. Bank will sit on it til they like an offer and then accept.

In the meantime agent is showing you other homes and gets a fee more clients in the meantime. 

Corporate owned seems like a fancy way of saying foreclosure or bank owned. 

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So if I have $235k in cash and tell them I want to buy the house, they would do what?

I would also assume that there is no room for home inspection or subsequent negotiation if there were any problems uncovered post inspection?

KCitons said:

So if I have $235k in cash and tell them I want to buy the house, they would do what?

I would also assume that there is no room for home inspection or subsequent negotiation if there were any problems uncovered post inspection?

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In bank owned properties they would submit your offer to the bank.

The bank then decides. Unless the bank has already approved an amount they are basically treating it like an auction. 

In your case they corporation probably does the same. Evaluate each offer after a pseudo bidding war

comfortably numb said:

In bank owned properties they would submit your offer to the bank.

The bank then decides. Unless the bank has already approved an amount they are basically treating it like an auction. 

In your case they corporation probably does the same. Evaluate each offer after a pseudo bidding war

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That's what I thought. 

Thanks for the input. 

The house is still listed for sale. I've watched other house go to pending or sold during the same time. This really feels like a bait and switch. Asking $200k just to get you in the door, but no  way are they selling it for less than $300k. There should be laws against this.

I'll also post this in the "stuff that happen lately that reminds you you're getting old" thread.

KCitons said:

The house is still listed for sale. I've watched other house go to pending or sold during the same time. This really feels like a bait and switch. Asking $200k just to get you in the door, but no  way are they selling it for less than $300k. There should be laws against this.

I'll also post this in the "stuff that happen lately that reminds you you're getting old" thread.

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Im not a realtor. That said, this has been going on for years (decades?). 

KCitons said:

The house is still listed for sale. I've watched other house go to pending or sold during the same time. This really feels like a bait and switch. Asking $200k just to get you in the door, but no  way are they selling it for less than $300k. There should be laws against this.

I'll also post this in the "stuff that happen lately that reminds you you're getting old" thread.

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It happens.   I try to get mine listed $5k below market as its the best way to get a bidding war.    The bank owned, fixers are often priced very low like you've described and they get 10+ offers.     The best thing to do is to call the listing agent yourself to get the info you want.    Not very impressed with Redfin agents. Why isn't that agent calling the listing agent?