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Answers (15)
- The Helderle Team, "st louis homes"
- Contributions:73
Get good comps and offer near the top if you really want the property. There are tons of investors buying shorts at well below market but once the bank has foreclorsed they've got more in it and want close to list.
- space_acer
- Contributions:4311
Spot on Digiphase ... LOL!
- space_acer
- Contributions:4311
Lowball? Your parents and their parents always lowballed.
The final price was below asking and higher than bid...
People actually hagled over price.... They were smart!
For several years now prices have outstripped incomes by
a huge margin. It was typical for prices to be 3x of incomes
and not 10x of incomes. Today 25-35% declines are sign of getting
back to real affordable prices dictated by real earnings of owners.
Forclosure is the end game of an overpaid home purchase.
Why make the same mistake.
- Amir Jugovic, "aj1974"
- Contributions:140
No/maybe.Call me at 314-779-5267 and I'll explain.
- Daniel Bennison, "kcmetrorealty"
- Contributions:26
It depends how long it has been on the market. If it has been on the market over 100 days, then absolutely it is appropriate. My suggestion: Get an agent because they represent your best interest. You do not pay them out of your pocket. They get paid out of the listing agent's commission. There are not many oppurtunities in life where you can have a highly skilled professional working for you for free. You would not soon regret it. Good luck!
- Marilia Cathcart, "Marilia"
- Contributions:92
First you need to know what is the fair market value of the property before you make an offer.
- digiphaze
- Contributions:254
Foreclosures are still rising every month. Don't be bullied into purchasing too soon. Economy is still getting worse, job loses are increasing. Prices still have a long way to go. I know its hard, but hold off. Prices are STILL dropping. If you buy now, even if you think its a good deal, you will be in the hole in just a few weeks to months time.
Go ahead and lowball, if they deny it and someone is dumb enough to buy at list price, then laugh and move on.
Look at what the home would have been worth in 98. (Official start of the bubble). Thats what you can expect prices to eventually drop back to. Agents laughed at us when we said prices would be back to 2004/3 levels. Now they are laughing at us when we say 98. Don't buy into the NAR FUD.
Go ahead and lowball, if they deny it and someone is dumb enough to buy at list price, then laugh and move on.
Look at what the home would have been worth in 98. (Official start of the bubble). Thats what you can expect prices to eventually drop back to. Agents laughed at us when we said prices would be back to 2004/3 levels. Now they are laughing at us when we say 98. Don't buy into the NAR FUD.
- Shannon Ware, "ShannonWare"
- Contributions:243
The banks are slashing prices on REOs because there is so much inventory right now, that if it looks like it is priced well, it will probably go for asking price or higher. This is especially true of HUD homes.
If the price is already slashed to way below market, and it looks like a good deal, offer what they are asking, don't be cheap, or you will probably always be unsuccessful.
If the price is already slashed to way below market, and it looks like a good deal, offer what they are asking, don't be cheap, or you will probably always be unsuccessful.
- Paskoo
- Contributions:17
My friend was looking for a house in Babylon, NY. It was a foreclosure property and was offered at 319K.
Friday they saw the property. Monday night they contacted the real estate agent to make the offer. It was too late. Bank had received multiple offers at offering price by Monday Morning. They probably picked the first one.
Real estate agent advised to put a back-up offer. They did, but still no luck. 3 weeks have passed.
Paskoo
Friday they saw the property. Monday night they contacted the real estate agent to make the offer. It was too late. Bank had received multiple offers at offering price by Monday Morning. They probably picked the first one.
Real estate agent advised to put a back-up offer. They did, but still no luck. 3 weeks have passed.
Paskoo
- Anita Eaton, "fprec"
- Contributions:40
As others have said it depends on the number of days on the market. As a rule of thumb properties over 60 to 90 days old are easier to negotiate than new listings. If you have solid financing and can close fast that also helps. If your local realtor cannot justify an asking price offer that is 25-35% under current market price, and you are a first time homebuyer, have your Realtor check into the MHDC money that is now available. You can get 6% up to a maximum of $6,750.00 for downpayment and closing costs and the money is available at closing(ask your Realtor for details). Perhaps with that 6% MHDC credit you could afford to offer the seller a little higher price and not risk losing a bidding war.
- Pamela Seley, "pamelaseley"
- Contributions:34
From my experience in California, I would say no. I also hear you can buy bank-owned homes for under $3000. Don't believe everything you read. I think Conni'e answer is right on the money.
- Zohreh K. Kim, "Agent Zohreh"
- Contributions:138
It all depends. If you are dealing with a hot piece of property where there is demand for it, you may risk losing the property where there may be multiple offers on it. The best way to handle this is to check on the values of the homes in the area, days on the market, and so forth. Please note that the bank owned properties have already been viewed by qualified agents in the area and a broker price opinion report has been submitted to the bank so the bank (just as a regular seller would be getting educated by their agent) knows what the homes are selling for within that market and what they can expect for a sales price. I have had buyers who pursued bank owned properties and there was much competition and the buyers ended up paying higher than the list price, but still I must say that the list price was lower for the bank owned properties than the other comparables in the area, so the buyer still got a "deal" as they say.
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
You can always make an offer under the asking price, especially with a bank owned property. Keep in mind the bank has done a BPO (Appraisal Analysis) on the property and knows what the property should sell for with in a 5% range. Depening on how long the property has been listed, condition, and precevied value will all determine what the property will eventually sell for. The bank may not answer back to you if you offer is considered too low with the asset manager. In that case if you feel the price can go up and you still the value, resubmit a new offer and see if the bank will take that one.... nothing ventured nothing gained... if this is for investment only and you don't care about loosing the property, shop till you get the offer you are looking for accepted... Good luck
- Maria Morton, "MariaMorton"
- Contributions:716
Some properties in some areas will sell for that amount below list. REO's and corporate owned properties are sometimes worth the price considering the condition and sometimes not.
As Samara notes, the best way to find out the specific information needed to determine values in your local market is to consult with a professional.
As Samara notes, the best way to find out the specific information needed to determine values in your local market is to consult with a professional.
- Samara Cook, "samarabaruch"
- Contributions:67
Some customers are making offers such as you describe on bank owned properties. If your offer is too low, you may risk losing it to a better offer that may come in while you are negotiating the price. Are you willing to risk disappointment if you don't get the property? Otherwise, you may receive a counter offer if your offer is not accepted.
It's important to get guidance from a local Realtor, as they know the market and can help you make your decision.
It's important to get guidance from a local Realtor, as they know the market and can help you make your decision.
Is it reasonable to make an offer 25-35% below the asking price for a bank/corporate owned property?
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