Profile picture for deehousehunter

REO Home. Bank will pay my closing cost, but does that mean I cant offer less than the asking price?

I found an REO home I want to purchase. The bank has stated they will pay my closing cost. The home is $137,900 and I was wondering if I can put an offer in for $130K + closing clost. Is this ok on an REO? I have already asked my realtor&he did not recommend it as the bank is already offering to pay closing. What do you think? The home has been on the market since 10/1/08. No offers in at this point. Zillow est is $185K.
  • December 24 2008 - Buckeye
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Answers (7)

You can always put in an offer on any property. The only time we as agent can say the seller will not take it if they have told us up front, do not bring me any offers below this amount. We have to write all offers and present all offers. The bank may not take your offer but it is an offer. You may lose it to someone else that is willing to pay more for the home. They might not answer you back right away and wait and see if they get a better offer. Then you will lose it. If you are will to take the risk of losing the home you can write what ever offer you want. The bank is not going to lose a lot of money on the home but who knows what they are willing to take today. This is all new grounds for all of us. Good luck I hope you get your home.
  • December 29 2008
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To answer your question, you can put in any offer you wish. 80 ish days on market isn't huge these days. Have your agent find out what amount the bank got it back for. Decide how bad you want it (there are always others) and give it your best shot. Given the info, $130k + costs seems very reasonable.
  • December 26 2008
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Profile picture for CORONA NICK
Start at 100K and go from there.
  • December 26 2008
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If closing costs are listed in the marketing, than I would assume they will still come in at 90% of asking PLUS pay closing costs.  I would actually come in lower b/c they will almost always counter offer as standard procedure.
  • December 25 2008
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In general terms, REO's are selling for slightly over asking to 10% below asking.  The three things to consider:  1.Where is the house 2. How long has it been on the market 3. What is the condition.
From what you have stated, you have nothing to loose by making a lower offer.   
   
  • December 24 2008
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Profile picture for PrescottAz
Always offer less, unless you are competing with multiple buyers.
Good luck,
[self-promotional post, removed by moderator]

 
  • December 24 2008
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I think your offer is a good one. I would ask for a 6% credit back for closing cost  at the close of escrow as well as the 130k offer.  You may not get the full 6 % back but you will get at least 3%.  Tell your realtor thats the offer and to write it up or get a new realtor.  Good Luck
  • December 24 2008
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