Profile picture for malianods

Making an offer

Okay, so my husband and I are looking at a home in a small rural area, the home is an older home built in 1900, the home is a Freddy Mac home, The home was listed in July at 49,999 its now August and they have dropped it 10k, its 39,999 the home does need repairs, we are wanting to make an offer, the real estate agent keeps pushing that we offer 35k which would be our max out price because we are paying cash, personally I wanted to offer 30-31k so I could give them a counter offer on anything they may throw back at us, I would be a first time home buyer and I'm unsure on what to offer. I would like to know if 31k is a good offer, the home is just sitting vacant in a tiny town and the bank isn't making money off of it plus every 60 days they are dropping the price and paying for an appraisal 
  • August 09 2014 - US
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Answers (2)

Profile picture for Rebecca Marvel
In this area (California) a bank will list an REO and typically drop the price every 30 days or so until it sells. They do not necessarily get an appraisal every time they drop the price.

Your agent is supposed to advise you on what they feel is in your best interest but they certainly shouldn't ignore what you want to do or try and push you into offering something you aren't comfortable with.

I have sold over 230 REO properties and in my experience the more recent the price reduction the more likely the bank wants close to that price. In other words if they reduced the price to $39,000 on 08/01/14 and today is only 08/09/14 they would probably want $35k+. That certainly doesn't mean they wouldn't consider $31k.

Just FYI - if you do make an offer and the bank counters you -- you are allowed to counter bank. Many people think that just because they receive a counter offer from the bank that the counter is what they must accept if they want the property. So if you make a $31k offer and the bank counters you at $38k, I'd counter back at $32k or something like that. Show that you are flexible but don't "drop your pants". LOL
  • August 09 2014
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Profile picture for GMerino
I'm not sure that someone could advise you on what to offer without being a part of the transaction.  Your realtor that you are dealing now should know best and if you are questioning what they feel is right to offer continue bugging as to why they think you should offer $35,000?
  • August 09 2014
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