Profile picture for the ool

if the home is foreclosed, and the bank owns it, can the buyer still negotiate a lower price?

if the home is foreclosed, and the bank owns it, can the buyer still negotiate a lower price?

The bank shows it at a little over 200,000 .  But can it go lower to meet my lender?
  • January 26 2010 - Destin
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Answers (18)

Yes.  Banks are loaded with REO inventory, and will typically be prepared to sell for lower than market price, but it may already be listed at below market price.  Get your realtor to show you comps and make an offer that suites you.  In most areas it's a strong buyer's market - if you don't get this one there'll be plenty of others.
  • February 06 2011
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Yes, the bank is a seller like any other. Whether they negotiate or not will depend on the bank. Have your realtor present whatever it is YOU want to offer. Good luck!
  • February 06 2011
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Sure you can make a lower offer to a bank. My suggestion is doo through a broker who has dealt successfully with bank owned properties they will guide you through the process.
  • February 06 2011
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You can certainly try- it helps if you pay all cash
  • February 06 2011
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Yes, you can make a lower offer, but remember bank-owned properties are already the most aggressively priced of the properties for sale at any given time.  They use brokers to give them opinions of value so they know going in how to price it for a quick sale.  Every now and then I see bank-owned that are overpriced, as they are on the market more than 30 days. 

  • February 06 2011
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Profile picture for Carrisbrooke
What bank is going to give you a mortgage if your house has been foreclosed on?  Good luck with that one!
  • June 21 2010
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Lol! Roberto, they may help someone else that may have a similar question but very true for the actual poster.
  • June 21 2010
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post is six months old. You two really think they still need advice on this???
  • June 20 2010
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My suggestion is get a Realtor to do that for you.  They can often negotiate a lower price for you.  They will also get more "respect" going into the bank.  If you go in yourself, they may be casual, but when a Realtor walks in with a buyer, the bank knows you aren't just window shopping.
  • June 20 2010
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The buyer may try to negotiage a lower price but banks have done their homework meaning they have had an appraisal done ( probably more than one).  A good realtor will know the value of a property and can guide you in making an offer.  Also, that realtor has a lender they can refer you to.  Why would the bank go lower to meet your lender if the appraisal is higher than what you could afford.  You may consider hiring an appraiser on your own.  I know this answer is six month later than when you first posted your question so I would be interested in knowing how this all turned out for you.

  • June 20 2010
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All home prices are negotiable - especially bank owned properties. However, if the property comes on the market with a great price and the home is in good condition in a very desirable neighborhood, you might find yourself with competing offers.  If that happens, you will be offered a one-time opportunity to revise your offer to your highest and best.  But if the property does not have agressive pricing, then my all means make an offer.  Make sure you have a loan pre-approval to submit with your offer and by all means - ask the bank to pay your closing costs!  And remember, banks will not accept offers that are contingent on you selling your home.  In some instances, they will accept a contigent offer if your home is already sold and just waiting to close.  Most importantly, find and work with a confident, experienced full time Realtor that will look after and protect your best interests in the transaction

  • February 01 2010
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Definatly. I advice all my clients to offer less. Now the banks have paid apprisers to get the current value of the porperty so they will not accept really low bids (most of the time......somtimes you get lucky but thats rare). Hope that helps and happy hunting
  • February 01 2010
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Profile picture for Mark LeMenager
What's an ool?

You may offer what ever you want.  I have yet to have a client pay the full asking price for a bank owned property.  They expect to sell it for less.

By the way, Cash is NOT necessarially king.  If you take out a new mortgage with the owner, they will prefer your offer to cash.
  • January 31 2010
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Sure you Can. I usually buy properties for my clients significantly under the asking price. It all depends how many foreclosed properties that particular bank have on the market.

[Content removed by moderator due to self-promotion]
  • January 27 2010
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Many factors effect the price the bank will take on a property it is trying to sell.  The first and foremost are the terms of payment.  Cash is king and usually a bank will take a lower cash offer over a higher finance offer.  Next is what type of loan are you applying for?  If you are going for FHA but the place obviously needs work, the bank will deny your loan without even looking at the price because they do not want to get knee deep in a transaction only to have an FHA appraiser give them a laundry list of items that they're not willing to fix.  The next is how many contingencies do you have written into your contract... The lower the number of contingencies the stronger your contract and offer become.  Banks are looking for head ache free transactions and are willing to take less money to assure smooth sailing.

The best advice you can possibly follow is to get a good buyer's agent that is familiar with purchasing foreclosed properties and make an educated offer based on the current market conditions.

  • January 27 2010
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My experience is that a bank will respond to, but not necessarily accept an offer within 90% of the asking price. If your offer is less than that, the bank usually comes back with a full price counter. If the property has only been listed a few days at the current price, the bank is going to be less likely to negotiate.
  • January 27 2010
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In many cases, yes, you can offer a lower price.  In some cases, the price will get bid up.  Talk to an agent who knows the market.
  • January 26 2010
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Profile picture for The LaPeer Team
You can always offer a lower price. Work with an agent who can pull comps for you so that you can make an educated offer.
  • January 26 2010
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