Frustrated with no response on full price cash offer

[Mark Wallis]

REO property on market approx 10 days. We see potential and want the house so our offer is cash at full listing price ($69K). Our buyers agent follows all seller agent guidelines and submits offer with 48 deadline. Seller agent responds that our offer was received and forwarded to bank. 2 days after our deadline my agent contacts seller agent who simply shrugs shoulders and says she hasn't heard from the bank. She does offer that there is one other person who is interested in placing offer but hasn't done so yet.
What the heck!?! full price offer...in cash and the bank doesn't accept? This experience makes Probate sales more attractive.

[J Scott]

First, if your agent were experienced with REOs, s/he'd know not to put any deadline on the offer. It doesn't serve any purpose when dealing with REO sellers -- they're going to work on their time-table and if you decide to pull the offer, you can always do it at any time, even after it's accepted (by just not signing the addendum). So, a 48-hour expiration isn't going to do anything.

As for why you haven't been responded to, it's most likely because the asset manager wants to give the listing more time generate multiple offers, and then use those offers to play off of each other to get a higher sale price (despite yours being at list). In fact, some asset managers don't respond to any offers for 10 days after the property has been listed.

My guess is that you put the offer in early in the week. Now the asset manager is hoping there will be more traffic (and more offers) over the weekend. If there are no additional offers come Monday, your offer will likely be accepted (or countered). If there are additional offers, you and the other bidders will be asked for your "highest and best" offer, at which point the asset manager will choose one offer to work with.

So, long-story-short, give it until after the weekend, and you'll likely get a response.