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How low can I bid for a $470,000 home?

I live in Raleigh, NC. The REO home I like is listed for 469,000...my price range is 350,00. The listing agent I called mentioned that the bank has been unwilling so far to go any lower than 430,000. Should I put in an offer anyway?
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November 02 2010 - North Raleigh
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Answers (18)

It is better to work with a Realtor, they will be able to guide you  in making an offer. If you are looking for a Realtor in Cary, Morrisvile or  Raleigh I am happy to serve you.

Binny Joseph GRI
Realtor / Broker
Evershine Properties Inc.
3034 Kilarney Ridge Loop
Cary NC 27511
[contact info removed by moderator]
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January 22 2011
Profile picture for maryamts
Thanks so much everyone for your responses...I did not get the house. I made the crazy offer of $335,000. The bank went from $470,000 to $400,000...but did not go lower. That was still quite a shock cuz I never thought they would lower the price that low. Someone grabbed the house immediately after the price drop. Good for them, cuz that's an amazing home for $400,000.
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January 22 2011
Did you get the house ?
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January 22 2011
Profile picture for jadedea

omg i love that house!!why cant i find something like that in d.c. lmao.

so what happened mary??? i see the price dropped to 399!!!!

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December 15 2010
I say, "GO FOR IT"! The worst thing that can happen is the bank will reject your offer....

That listing agent is responsible for representing her client's(the bank who owns the property) best interest. Because of that she would probably never tell you to come in with a low offer. 

It is true that most banks have marked down their prices so much lately that they don't have a lot of wiggle room left.... Having said that, sometimes they are just ready to be done with that property. The more offers they get in a certain price range, the more likely they are to let it go at that price(eventually). 

So, it doesn't hurt to try! Who knows?! You may just get lucky!
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December 14 2010
I have been working a lot in the last few years with both buyers and sellers of distressed properties. In general you should offer about 80% of the current market value of the home and expect the bank to counter. What that number is only a local, experienced Buyer's Agent can tell you.
As others have mentioned, the worst thing you can do is to continue dealing with the listing agent. He does not have your best interests in mind and actually has a fiduciary responsibility to get the bank the most money he can.
Give me a call or shoot me a message and I'll run the comps for you and see if it is worth pursuing given your stated price range.
ML
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December 12 2010
YOU CAN CLICK MY PHOTO, call me until 9pm tonight if you want. I will email you the paperwork to make the offer.
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November 10 2010
if you love the home, it's worth a shot.  Keep in mind that the same offer that doesn't work out now, might work out down the road.
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November 10 2010
Many banks have informed the agents what they are willing to take. However, ALL OFFERS must be presented to the seller -- in this case, the bank. So, yes, make the offer. But banks typically know what the value of a home is, and unless you are paying cash and can do this by December 31, you're probably not in luck on this one. Better to look closer to your price range.... but you never know. Hire a buyer agent to negotiate it for you, their advice is TOTALLY FREE to you.
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November 10 2010

First off you should be working with a Buyer Broker not the Listing Agent who is representing the Seller. Do you really believe they are going to encourage you to put in an offer 25% less than asking price?

You can put in any offer, though it seems unlikely you'll get the home at the price you want to pay any time soon. You're likely wasting your time and whatever Broker is willing to write the offer up for you.

Have you actually looked over the home thoroughly? There is always a level of inherent risk in buying a foreclosure as you are buying "As-Is," Will you have money left after buying the home to take care of any needed repairs.

Finally as someone who specializes in foreclosure sales and who works primarily as a Buyer Broker I'll let you in on how things work. This property's price will be automatically reduced every 30-45 days (depending on which bank owns it) until it's sold. A Buyer Broker can quickly tell you how long it's been on the market and you can then have a pretty good idea of when the first price drop will occur as well as each subsequent price drop. Perhaps if you're patient it will get down into your range, though there's always the chance that someone else will come along an buy it before then.


My advice would be to focus on homes listed for no ore than $400,000 and not on homes $100,000 over what you can afford.

Good luck.
www.NCHomesbyLarryT.com

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November 07 2010
Mary,

Wow, what a small world.  I live on Old Creedmoor Rd just across the street from that house so I am VERY familiar with the area and that home.  I know what has been happening with it over the past few years.  If you are not working with a buyers agent already please contact me through Zillow and I will be happy to help.
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November 05 2010
Profile picture for sunnyview
Pretty house. I can see why you like it :) I would put the offer in and make it as simple as possible with a short escrow and a substantial good faith deposit. You never know and you are not that far off depending on the bank.

The market in North Raleigh here looks flat and trending weakly down. That is likely to continue into the holidays and the new year. Hit them now with a clean offer and hope that they want it sold before the new year. Never hurts to ask and you just never know with an REO.
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November 05 2010
Profile picture for maryamts
Thank you all so much for your responses. I really appreciate the advice. In case any of you are interested, here is the listing.

http://www.rinehartrealty.com/homes/NC/Raleigh/27613/10320_Old_Creedmoor_Road/2001746284/index.html

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November 05 2010
Mary
good luck to you, banks are all over the place these days , taking a long time to make decisions, so you might just get lucky on this house.
How long has it been on the market, what does it look like inside, what competition does it have around the area?
Make sure you have an agent to represent your interest. That Realtor can check out the 'comps' and let you know what the value of the home is.
If you are not represented by a buyers agent , I would love to help you out. Short sales are tricky and a professional in your corner is something I strongly encourage.
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November 05 2010
It doesn't hurt to ask!  I say, go ahead and put in the offer.  Banks aren't emotionally attached to the property, they understand that it's a business transaction.  Besides, I've seen banks do some crazy things in the past...like counter offer lower than the original offer or accept a lower offer by $10,000 b/c they didn't want to make a $600 roof repair.  Just keep in mind that the listing agent you've been speaking with is legally bound to representing the sellers best interest, which means get them the highest price or best terms...don't tell them anything that you wouldn't want the bank to know.  If you want someone on your side to help you through this sign an exclusive buyer agency agreement with a buyers agent, it wont cost you a dime, but could save you thousands :)
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November 04 2010
You can offer whatever you want, it just may not get accepted.  You should have your own agent to determine the value, but if your price range is $350,000 and that isn't above the value your agent give you, go for it.
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November 03 2010
The key to what the listing agent said is that 'so far' they have been unwilling to go any lower.  Many times, lenders have a graduated scale for their price reductions.  You want to know how many days the home has been on the market, and that will give you an idea how motivated the bank might be today as compared to tomorrow.

As Sheri mentioned, the best thing you can do is have a Buyers Agent pull comps for you to show the true value of the home.  Banks understand 'fair market value', and their investors usually have a formula (or rubrick) in which they use to determine how low they will go.

If you can support your offer with valid comps and make a strong case, why not make an offer?

Let me know if I can help.  I have been working foreclosures and short sales for 8 years and am a Certified Distressed Property Expert (CDPE).

Feel free to check my website for other short sale and foreclosure deals.
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November 02 2010
You should get a buyers agent to pull comps for you and suggest the best strategy.  If you are not currently working with one I would be happy to help. Just email my through Zillow.  Only a buyers agent can give you advise as to what to offer.  Until then by default all agents are sub agents of the seller and need to respond with telling you to offer full price.  A buyers agent will be able to supply you with recent sales data and generate an offer plan.

I have been working in the N. Raleigh area for the past 17 years and specialize in working with foreclosure and short sale properties.  We represent many REO's so familiar with both sides of the transaction. Make sure that you get an agent that is a SFR (Short Sale and Foreclosure Resource Certified).  Most agents in our area do not have this designation and it can help you as a buyer tremendously.

Good luck and let me know how I can help. 


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November 02 2010
 
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How low can I bid for a $470,000 home?
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