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Fannie Mae overpriced home vs comps

My wife and I are in a situation where we don't have to move but would like to.  We found a great house that turns out to be a forclosure owned by Fannie.  We have found the price history on Zillow and saw this house has been on and off the market for the last 3 years in the 290-325 range which is in the fair market value.  Another home just sold (bigger lot and 1500 more finished sq ft) for 320 one week ago (it was also a foreclosure).  Fannie listed the house we wanted at 392 (22 days ago) which is insane.  I have read where there have been gross over pricing in a lot of markets in the 15-20% range.  We offered $310, which is fair and hopefully get a counter that is reasonable based on comps.  Has anyone else had any experience with this recently and had success?  Any thoughts on how we can be successful in getting the price down to the comp range without waiting for the house to sit for 6 months? Based on the foreclosure date I would guess the house has been empty since Feb 2013.  Also this house is move-in ready.  In the particular area we are looking this at first glance is not a house in a condition for an investor/rental/flipper.

 Its been 3 days since we submitted the offer and haven't had a response yet.
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August 24 2013 - US
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Answers (8)

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hey Rebecca,
I have a higher price that I know I won't go over and have no problem walking away or to just continue to wait as days on market start to rack up .  But I am curious if they will even counter reasonably.

I am not hung up on my first bid at all.
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August 24 2013
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Thanks Craig,
Thats an interesting approach.  Zillow estimates the house at 330.  But I don't know really how accurate Zillow is overall.  It was pretty off on my house until I took control of the property and updated it. 
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August 24 2013
It sounds like you have a price you are married to which is fine.  Don't be surprised if someone comes in over your price and gets the house though.
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August 24 2013
Very common issue.  Fannie and Freddie are overpricing their properties everywhere.
Your only hope would be to make an offer you think they will accept and hope the appraisal comes in low.  You can then re-negotiate based on the new appraisal value to the lower price.  It's a gamble, but has worked in some cases with my clients.
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August 24 2013
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thanks Rebecca.  Yes it does look like carpet and paint was done since the house is move in ready.  So I do expect to pay more than my first offer.  But with considerably less finished space as well as a smaller lot, just paint and carpet won't be enough to justify a super premium over the comps in the area.

I am just wondering if they will come back with a reasonable counter. 
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August 24 2013
Fannie rehabs their homes so please take that into consideration.  In my area Fannie will not respond until the house has been on market for at least 7 days.  They want market exposure.
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August 24 2013
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Thanks Tim.
And thats fine.  We are willing to go up more and fortunately have the option of waiting as well.  Patience is apparently the key right now.  The other house that just sold for 320 sat on the market for 260 days or so.
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August 24 2013
Fannie is going to see a new listing get instant attention with your offer, which will be of interest to the bank in that they won't do anything quick because dragging their feet will give time for more offers to come. Then they will see your offer of 20% lower than they asked. They know they will not get someone paying full price, but they want more than a 20% low offer. So again they wait and are in no hurry to answer your offer.

tim
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August 24 2013
 
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