Profile picture for yy101

how much to offer

per Zillow. 
A Real Estate Owned (REO)/Post Foreclosure. Once a lender has foreclosed on a property it is soon put up for public auction. If bids fall short of the asking price the bank will buy back the home and attempt to sell it on the open market. However, lenders are not real estate agents, meaning that they will often accept offers significantly below market value!



so my question is if market vallue (again going by zillow) is $400000 and the house is on market for 365000. how much should my initial offer be? would 299.000 be too low?

  • February 05 2010 - Richmond
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Answers (6)

Who knows how low they might go, if it has been unoccupied for two years, maybe the bank is fed up and wants this home "off the books". I see no reason not to go even lower...give the bank a chance to counter you, and see what happens. The advice you got regarding "as is" is pertinent too, beware of costs after closing making the home liveable again! Regards, Jim.

  • February 06 2010
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Profile picture for yy101
Thank you all for answering my questions.
a house down the street very similar sold for 350000 but it is in a much better condition. and has been ocupied the whole time. the one Im looking at has been vacant for 2 years. but came on the market in Dec.
plus how much stock should I put into the zillow advice on bank owned homes for sale. should I really offer 50% and see what happens.
  • February 05 2010
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Very good question...  I would NOT go by zillow, the numbers can be all over the place.  Market value IS a good indication to go by.  Also, please be aware that typically Bank Owned Properties are marketed "as-is."  If you truly want the home, make sure that you are covered up to "X" amount for repairs, woodboring, well and septic (if applicable), Certificate of Occupancy, free and clear title, etc.  I would highly recommend finding a top agent in your area to represent you and your interests.  In addition, you should be able to negotiate a price below market value.  I hope this helps and if you need an agent in your area please let me know, I would be happy to do some research in your neck of the woods.

  • February 05 2010
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Profile picture for Alan May
Please, if you're buying a property, don't depend on Zillow's "zestimates" (which they readily admit are not accurate) to determine what the actual market value is.

Determine the market value by checking to see what other comparable homes in the area have sold for recently (3-6 months... no older).  If you're not sure how to go about that, then you should contact a local Realtor and hire them as a your buyer's agent... to run a market analysis on the property and determine it's true value.

Once you know that, then you can determine just how much you want to pay, and where you want to begin your offer in order to achieve that goal.
  • February 05 2010
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Profile picture for yy101
thank you valicifor,
if I do offer in that range (246000) is it likeley they (the bank) will counter or would they just ignore if they dont accept?
  • February 05 2010
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Profile picture for valicifor
I would try $246000
Seems like Zillow values are over estimated
  • February 05 2010
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