- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (14)
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Use zillow to find recent sales in the area and compare them. It doesn't take a brain surgeon to figure out if the offer is way out of whack. Then look at the circumstances. It just sold in 4/9? Why is it an REO? How many REOs is the bank holding? Is that bank's tactic to dump or bleed slowly?
If the price is on the low side after mulling it over, make the offer compelling in other ways - put in for a quick closing (if your lender can handle it) or put down a large earnest money. Either have an agent call (if you want to be represented) or call the listing agent yourself....be very, very pleasant. Let them feel like it will be a really smooth transaction and that you are a dream to work with. (I have on more than one occassion been the winning offer in a multiple bid situation in the "high times", not being the highest bidder, but being the presumed smooth transaction - often having the seller walk away from several thousand dollars to save a nightmare.) Provide an offer that really hits home you are serious and will have no financing problems as well as documenting why you feel your price is accurate. Basically, the more you are asking for, the easier you should try to make it for them to accept your offer.
If the price is on the low side after mulling it over, make the offer compelling in other ways - put in for a quick closing (if your lender can handle it) or put down a large earnest money. Either have an agent call (if you want to be represented) or call the listing agent yourself....be very, very pleasant. Let them feel like it will be a really smooth transaction and that you are a dream to work with. (I have on more than one occassion been the winning offer in a multiple bid situation in the "high times", not being the highest bidder, but being the presumed smooth transaction - often having the seller walk away from several thousand dollars to save a nightmare.) Provide an offer that really hits home you are serious and will have no financing problems as well as documenting why you feel your price is accurate. Basically, the more you are asking for, the easier you should try to make it for them to accept your offer.
- chenworthandsons
- Contributions:78
It is located in Fallston Crossing in Fallston, Rachel.
- Jimmy38
- Contributions:234
I wouldn't listen to anyone who claims the market is hot right now. If the market was that hot I wouldn't think there would be that many REO's. People would sell their homes and get themselves out of hot water.
If you find a home you really like, put in a offer that you think is fair, not what anyone else thinks is fair. If they don't accept your offer, move on to the next property. There's plenty out there.
If you find a home you really like, put in a offer that you think is fair, not what anyone else thinks is fair. If they don't accept your offer, move on to the next property. There's plenty out there.
- Rachel Gorelick, "RGorelick"
- Contributions:40
In some cases REO value = market value however, depending on the percentage of homes sold REO and Retail. You can offer $300k however, it has been my experience that the banks are doing price reductions every 30 days. It really depends on the bank...Make the offer the only thing they can do is reject your offer, counter or accept your offer. I suggest you get a good agent because your agent should provide you with all of the information on how to move forward...Where is this property located? FYI: The banks obtain three brokers opinions before they price a property. This is how they determine what the listing price will be!!!
- chenworthandsons
- Contributions:78
To clarify further, the list price for non-REO homes in the neighborhood is $430k. There are a lot of people being foreclosed on in the hood. THis house is as-is.
- chenworthandsons
- Contributions:78
uh oh, Kate. It is one of your company's properties!
- Kate Barnhart, "Kate Barnhart"
- Contributions:158
I believe this question was related to buying UNDER market as opposed to buying Retail. Buying a property that may have been slightly neglected and taking it in AS IS condition can sometimes help a homeowner buy with equity (under the appraised value). This is definitely possible since a skilled negotiator can buy a house much lower than an unskilled one, assuming the seller is open to negotiation. Also the seller's attitude has a lot to do with accepting an under market contract.
For ease of numbers, let's say a homeowner would pay $100,000 for a place and it would appraise there but the seller doesn't really want to hold on and make the monthly payments. They are only in the property for $50,000. Thus, someone comes along and offers them $60,000. They take it and the deal is done. That person bought the property at 60% market value and has aproximately $40,000 in equity in which they could relist immediately and wait for that $100,000 buyer or refinance or just be happy with their skillful negotiation and luck. This person and the other person's value of the propery may be different but it's all about the appraised value and what the market buyer will pay if it is resold NOW- not based on old data.
- Christopher Thomson, "cthomson77"
- Contributions:33
Depending on the area the buying market is pretty hot right now and I'm seeing my clients lose out on REOs even when offering over list price. The banks need to make the most out of this transaction and are often making the agent accept as many offers as possible within an extended period of time and taking the best one after all offers have been received.
- BMFPitt
- Contributions:1207
There never was a time you could buy 30-60% off of market value. If the highest offer a place could get was $350k, then market value was $350k.
If you don't understand that, then I'll sell you some AIG stock at 95% off of "market value" based on prices from 9/2/07.
If you don't understand that, then I'll sell you some AIG stock at 95% off of "market value" based on prices from 9/2/07.
- FriendshipProperties
- Contributions:783
Sold for $250 on 4/30/09? Then how are you going to say the market value is $420k? The value is what someone is willing to pay.
- Kate Barnhart, "Kate Barnhart"
- Contributions:158
Go for it! I'd start even lower if you want to get it for $300k. I work constantly for people to get them the deals. If your agent says they won't submit the offer, get a new agent (but be careful because you may be obligated to pay the first agent)!
You may need to "prove" the house isn't worth the seller's asking price if the seller's representative is open to the offer. Make sure to structure your offer to show you are a strong buyer. Don't give up. Make the offer multiple times, if necessary.
Kate Barnhart
Passport Realty
[content removed by moderator for being self promotional]
You may need to "prove" the house isn't worth the seller's asking price if the seller's representative is open to the offer. Make sure to structure your offer to show you are a strong buyer. Don't give up. Make the offer multiple times, if necessary.
Kate Barnhart
Passport Realty
[content removed by moderator for being self promotional]
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
REOs have fundementally altered market prices in many areas....so "market value" may = REO price (or less).
- frisky1
- Contributions:448
How is the current market value $420k if it sold 4 months ago for $350 and another house you seem to consider is somewhat comparable is $296k? seems to me like you might have a good shot at 300k as the house's value is prob closer to that number.
- LEAH30
- Contributions:16
The home prices are still declining in some areas. Have your realtor run the comps. If the REO is very desirable location it may solicit miltiple offers, so you may not want to ponder too long. Remember, your may be purchasing a declining asset or an asset that will not appreciate for many years so factor that into your decision. If you love it, make an offer.
Good luck!
Good luck!
Are the days of getting REO's 30-60% off of market value gone?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.