Negotiation Question

[Matt Chandler]

I have about 7-8 files in negotiating right now with about 4 different banks that have all been assigned negotiators and have had BPOs performed on them. Most of them even with 2 BPOs or appraisals. All 7-8 file bank negotiators are not really negotiating my offer at all. They all will tell me we need to NET this number and if we dont the file is dead. I have showed up to all of the BPOs with repair lists and comps and all of the BPOs/Appraisers have thanked me and have indicated that they will come in around the same value that I have. I do pull the lowest NON-REO comps and usually dont adjust much for repairs if at all. Usually the banks NET number that they come back to me with is higher than what me and the BPO/Appraiser have thought the property is worth.

I thought at first that the BPO/Appraiser was just lying to me when I met them there and then was going back to the bank and giving them a higher number. I have a hard time beleiving this now that it has happened on all of the files.

Are more banks starting to cut out the negotiating part of the process and going with this is our NET number you either hit it or it goes to foreclosure. Also note these are not FHA deals either. Are they bluffing on this number to see if they can get more than the BPO came in at? When the bank tells me this net number I usually try a verbal counter and tell them that I can supply a modified purchase agreement, HUD1, and POF as well. Everytime I have told them this they have told me not to waste my time that if this number is not hit the case is closed. I have went ahead and sent some of these things in and the negotiator seems to get mad and not respond for another 10-15 days only to tell me that they are not accepting below this amount.

I am wondering if it is the fact that the property is listed and they want to hold out for a better offer? Should I disclose to them I am an investor and this is my offer and there will be NO other offers on the property to them other than mine? Should I hold out longer and see if they will just come down off of that number at all? Does the fact that my state has a stable market with a very short foreclosure process hurt me on getting these properties reduced in value?

Thanks everyone for the responses.