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Will Fannie Mae accept a low offer if they are provided evidence that home needs structural repair?

The home we are looking at was origininally listed by Fannie Mae in October for $387,000.  The list price is now $299,900.  Our realtor pulled comps and thinks an offer should be a max of $260,000.  The house needs obvious work.  Windows, and trim need to be replaced, and the stucco is not the required 4-6 inches above grade.  We are having a contractor look at the house tomorrow.  
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February 06 2013 - Duluth
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Thank you for the responses.  I guess we will see what the contractor says.  
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February 06 2013
I appraise REOs, there are very clear guidelines as to how we handle any deferred maintenance, required repairs or anything atypical. Once we itemize and support our findings with photos, we prep a rough estimate of repair costs - and for serious issues we call for inspections and contractor opinions. If there are issues, they are known issues.

Those homes are priced "as is", if they were going to make repairs they would have. As far as pricing, agents will adjust as the market dictates but pricing is not always up to them.

You should assume nothing with any REO property. You are buying it as is, where is and with limitations on the title. If this home has issues, decide what it's worth to you and offer that - then move on.
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February 06 2013
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The house has had interior repairs.  Isn't likely to assume they have already had contractors access the outside?  
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February 06 2013
Fannie Mae will also take into account the length of time the property has been on the market. We have found locally that they tend to accept lower and more reasonable offers after about 90 days on the market. I have no statistical support, only experience from sending dozens of offers to Fannie and Freddy for my investor clients. 
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February 06 2013
The presumption (and their argument) is that they already know the home has defects and has priced it accordingly.

Unfortunately they're reliant on the listing agents BPO to determine value. But even then Fannie Mae might overrule the agent and arbitrarily list the home for sale at their price.

Often it's all about mathematics when determining price and not always about serious defects - whether known or unknown.
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February 06 2013
You will likely find that Fannie says NO very quickly and won't negotiate much. It is far more common for them to say NO, let the listing or offer drop and then do some investigation with contractors, they hire, to determine what needs to be done and then relist at a lower price. It sounds stupid, but that is the government way to do things.
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February 06 2013
 
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