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I read somewhere that it is the norm to offer between 30-70% of asking price on a bank owned foreclo

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May 28 2013 - Ligonier Township
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every case is different and you should evaluate this with your realtor before placing and offer.
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May 28 2013
That would not be good, I would talk to your Real estate agent  before you put a offer in, I know I do allot of bank offer and they have been going for higher then asking price. They are usually selling for  a good deal and the banks usually know how low they will go. If you put in a low offer and they don't accept it, your just risking another buyer getting in on the deal. 
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May 28 2013
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has high as ---> *as* high as

(sorry for the typo...)
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May 28 2013
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# Homes foreclosed in Ligonier Township per month:


REO sales percentage (distressed saturation):


Zillow Local Info, Ligonier Township
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May 28 2013
Profile picture for Pasadenan
For Ligonier Township, PA, Zillow is indicating foreclosures are selling at about 53% of similar non-distressed sales (47% off of "present market value" assuming "average condition"; NOT off of list price).  Ligonier Township only shows 3 such properties.  And the list prices very from deeper discounts, to more expensive than the machine approximated value.

Ligonier Township Foreclosures

The only way you will know the condition is to visit the property.  Those that selected the listing price already did that.  The estimates do no factor in the condition as that is "unknown".
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May 28 2013
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Zillow runs statistics for each Zip Code area, for what one might expect a "distressed" home to sell as compared to "normal market value"... It can be has high as 30% or even 35% off of "present market value", but only if there is a high saturation of distressed sales in that area.

It certainly isn't off of "list price", as the bank and agent already factored that "discount" in.  Also, the "distressed price" discount often includes "deferred maintenance" as people that don't pay their mortgages also don't have any money to spend on normal maintenance.  After doing the required repairs, it may cost you substantially more to buy the foreclosure than a not distressed property.

Not to mention, with Fannie and Freddie's change in policy on "underwater mortgages" and "distressed ownership" at the beginning of the year (where Fannie or Freddie just accept the deed as payment in full instead of having to foreclose), the Foreclosure saturation level has dropped substantially throughout the country, so very few areas would expect large discounts for foreclosures now.

Anyone offering less than 70% of list price is wasting their own time and their agent's time.  It is not wasting the seller's time as the offer goes straight in the trash without response.
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May 28 2013
I agree that the best price to offer on any property is with the advice of a local professional.  Putting in an offer way below asking on a foreclosure is a waste of everyones time.  Most forclosures in my area are below compatrative prices anyway.  The banks know how low they will go.
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May 28 2013
That was not be wise.  Making an offer only based on % off sale price is not the right way to proceed.

Understanding the local market, prices, recent sales of similar homes is how you determin value.  If the listing appears to be over priced, you can submit supporting documentation along with your offer to justify the lower poffer, but makeing a blind offer 30% or more below list price will likely be a complete waste of time.
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May 28 2013
30% lower than list will insult almost any seller and if I was the sellers agent it would not even be countered, just rejected. You need better reading material then what you have.
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May 28 2013
It depends is the correct answer.  Fannie Mae, Freddie Mac, HUD, and many other bank foreclosure companies all have different criteria.  Days on Market, amount owed on the home (and ONLY the bank knows that one), location, condition, and amount of inventory, all affect what a bank will accept.  A professional real estate agent with knowledge of the particular bank that owns the property you are interested in will know the criteria.  As a general rule of thumb, the appraised value and the value given by the actual appraiser and real estate broker by their Broker Price Opinion, sets the bar.  

As a professional, I will write up any offer, but should anyone truly want to make an offer that will stick ...they should take the advice of the experts in that area. And remember, when you are a buyer looking to purchase a foreclosure, dont "marry" the house you are wanting to buy.  Buying foreclosures takes consistency, patience and guts.  Its not for the weak!
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May 28 2013
Profile picture for wetdawgs
You can't believe everything you read! 

In some communities, people are offering 30% over asking price (i.e. 130% of asking price) on foreclosures.
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May 28 2013
You can write any offer you wish. But it's very unlikely that your offer would be accepted with such a deep discount.

If buyers could get a home for 30 cents on the dollar there would be a line around the block.
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May 28 2013
 
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I read somewhere that it is the norm to offer between 30-70% of asking price on a bank owned foreclo
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