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Answers (7)
- Jennifer Patrick, "Agent Jennifer"
- Contributions:13
Listing agents and banks are teaming up to generate interest in the large inventory of houses. Many foreclosures (REO properties) are being listed far below actual market value. By doing this mutiple bids are placed on the property in the hopes of getting more money than the market would normally generate.
Before making an offer over the asking price you should have an idea of the actual sales prices of properties in the area and understand how much work will need to be done on the property to make it livable before you can even live in the house. I've discouraged clients from getting caught up in this process and making an offer above listing price only to find that the house is appraising for less and needs lots of work
Bottom line it is always upto you but from a financial perspective know what you're getting into before you sign.
Before making an offer over the asking price you should have an idea of the actual sales prices of properties in the area and understand how much work will need to be done on the property to make it livable before you can even live in the house. I've discouraged clients from getting caught up in this process and making an offer above listing price only to find that the house is appraising for less and needs lots of work
Bottom line it is always upto you but from a financial perspective know what you're getting into before you sign.
- Dianne Garrett, "princessdee"
- Contributions:3
You would want to first make sure that the value of the property you are making an offer on is worth increasing your offer.
Ask your agent to run a comparative market analysis before making an offer as this will allow you to view other sales in the area.
It's not uncommon to compete with multiple offers on desirable foreclosure properties so you would also want to consider this before making an offer. Just make sure your numbers work for you in the long run.
Best Wishs to you on your purchase!
Ask your agent to run a comparative market analysis before making an offer as this will allow you to view other sales in the area.
It's not uncommon to compete with multiple offers on desirable foreclosure properties so you would also want to consider this before making an offer. Just make sure your numbers work for you in the long run.
Best Wishs to you on your purchase!
- Jeff Konstant, "jkonstant"
- Contributions:1970
When buying a house you must consider more than the current comparables and today's market value. A $200K comparable market value today is not what it will be tomorrow much less next year. If you lose just 10% in value over the next year, you are the one taking the hit. Do not be fooled by current sales and value trends as many are temporarily being propped up by first time buyer incentives and Fannie Mae's rule reversal on the number of mortgages one can hold. Sure many first timers are taking advantage of the $8K tax credit. What they are not considering is that every dollar beyond that gift that is lost is coming from their pocket and it doesn't take much to lose $8K in value.Remember it is a buyer agent's job to help you find a house. It is not their job to offer financial advice.
- NTETS, "Mr Caveat"
- Contributions:6436
the list price should get you through the door to look, but it should have about as much impact on your offer as the zestimate (none). your offer should be based on 3 factors.
1) how much you can spend(never offer your best offer upfront)
2) how much this house is worth and will be worth based on comps and any sales trends you can discern.
3) what it is worth to you.
the list price has by no means a specific relation to VALUE
1) how much you can spend(never offer your best offer upfront)
2) how much this house is worth and will be worth based on comps and any sales trends you can discern.
3) what it is worth to you.
the list price has by no means a specific relation to VALUE
- Angus Beal, "Angus Beal"
- Contributions:12
Here in AZ, and in neighboring NV, the strategy is to come in initially at list price. The bank will collect a few offers in the lull period that always occurs, and then ask for a "highest and best" offer from all bidders. At that point, all buyers have to present the figure that is the highest they are comfortable spending on that property. I tell my clients in that situation, "Big the highest amount you feel okay with; an amount that if you didn't get it, you still know you gave it your best shot. Don't hold back."
That is the only advice I tell them...most states in the country (except maybe parts of MI) are probably the same way
That is the only advice I tell them...most states in the country (except maybe parts of MI) are probably the same way
- real estate mike
- Contributions:2001
You have to start from; what are the foreclosure sold comps in the area. The next thing as Wayne mentioned is buyer competition. Personally I would hesitate to do this unless the house was in decent shape(enough to move in). You didn't go into great detail. If there are hundreds of other foreclosures/short sales there, that would factor into my decision also.
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
Consult your Realtor for best advice. Personally, I have been hearing in some cases that prices are ending up near or sometimes higher than listed price due to multiple offers being presented.
Good Luck
Good Luck
SHOULD YOU OFFER MORE ON A FORECLOSURE ABOVE LISING PRICE?
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