Zillow Advice: Buying a Foreclosure - How much can I typically offer below asking price on a foreclosed home? http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ Zillow Advice | Zillow Real Estate Dear Pr31.&nbsp;&nbsp; There ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ Dear Pr31.&nbsp;&nbsp; There is no typical offer amount that will be successful.&nbsp;&nbsp; Some foreclosures will be overpriced for the market and others will be right on with the bank considering only full price.&nbsp;&nbsp; You are best served by working with a professional who can evaluate the market and comparable sales for any property that you are interested in purchasing.&nbsp;&nbsp; Together you should be able to come up with a winning strategy.&nbsp;&nbsp; Good luck. Thu, 24 Feb 2011 17:48:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-02-24T17:48:00Z It depends on the following:1. ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ It depends on the following:<br/><br/>1. Bank's objectives<br/><br/>2. Comparables of other similar properties in the area<br/><br/>3. Are u paying cash or loan?<br/><br/>4. The law of supply and demand<br/><br/>In my city, Las Vegas, we are going through a buying frenzy now. I'm a realtor who advertises plenty on Zillow. I talk to and show houses to about a dozen buyers EVERYDAY! Last month I have submitted 26 offers to buy. 21 of these were multiple offers! Only 6 of my buyers won.<br/><br/>My point is that asking for a discount on the asking price depends on the situation based on the&nbsp;4 factors above. Only 2 months ago my buyers were asking 10% off and the banks were accepting my buyers' offers. Today, and right now, my buyers often have to contribute an additional 2% to 5% to even be considered from the list of multiple offers. And even then, the buyers paying cash in full are those preferred by the banks.<br/> Sun, 15 May 2011 14:31:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-05-15T14:31:00Z This is the most common question/issue ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ This is the most common question/issue Realtors deal with.&nbsp; " How much under asking price should I bid?"&nbsp; There is no formula.&nbsp; It's often followed by some advice that their uncle or friend gave them such as " offer 10% under asking price.<br/><br/>If a house list price is $500,000 and you offer $450,000 sounds good right?&nbsp; What if the house is worth $525,000?&nbsp; You will get outbid or never get the house.&nbsp; Worse... what if the house is drastically overpriced and worth $375,000, then you've just screwed yourself.<br/><br/>The right answer is not sexy ..... you must either know or work with a skilled agent that knows exactly what the house is worth and try to get it at or below that price.&nbsp; Keep in mind your competition, you may feel emboldened to come in a bit lower with no competition, but if there are 3 other bids you must cut to the chase... never overbid because of the other activity, but it accelerates your getting to your endpoint. Sun, 15 May 2011 13:32:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-05-15T13:32:00Z Its ALL about competing offers. ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ Its ALL about competing offers. Have your agent inquire with the listing agent so you feel comfortable being aggressive. Wed, 11 May 2011 05:17:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-05-11T05:17:00Z First thing I check out on ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ <p class="MsoNormal">First thing I check out on a REO house is the number of days on the market (DOM).&nbsp; If it is more 90 days you can take your chance and make low low offer.&nbsp;<br/> There are many other factors that you have to take into consideration.&nbsp;<br/> One simple non-scientific ways is&nbsp;as follow:<br/>Almost all REOs that I have seen have been in&nbsp;need of&nbsp;a major repairs.<br/>So calculate the fair market value subtract the cost of repairs, now you the value of the house.&nbsp;&nbsp;For every 15 days in the market subtract another $5K to $10K (this depend on&nbsp;your market).&nbsp; Now you are close to what you should offer.&nbsp;</p> Wed, 11 May 2011 04:58:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-05-11T04:58:00Z Try to determine the market ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ Try to determine the market value of the home.&nbsp; As previously mentioned, some foreclosures are priced below market and will sell quickly, others above market.&nbsp; There is a temptation by buyers to lowball their offers.&nbsp; I would advise you to weigh the risks before doing so as I have had 2 foreclosure offers rejected by banks in the last week in favor of later offers.&nbsp; 1 of them was agreed upon (but not signed off on by the bank) when I was notified of that another offer had come in.&nbsp; If the property is in above average condition at a fair price, you can expect there will be other buyers interested in it and your offer should be close to list price.&nbsp; If it is below average condition or overpriced, you have a little more leverage to get it for less than list. <br/>Good luck. Thu, 24 Feb 2011 14:23:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-02-24T14:23:00Z Some foreclosed properties ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ Some foreclosed properties are aggressively priced to move within a matter of days.<br/><br/>Other foreclosed homes are as grossly overpriced as their non-foreclosure counterparts.<br/><br/>And most foreclosed homes have some level of deferred maintenance because if the homeowner had been able to afford the mortgage, they would have had money for maintenance like roofs, A/C, furnaces. Which is why foreclosed homes are sold 'as is'.<br/><br/> Thu, 24 Feb 2011 04:21:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-02-24T04:21:00Z Hello PR31,I'm not sure what ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ Hello PR31,<br/>I'm not sure what your area is like. I will let you know that the closer you get to the list price of the bank owned property the more likely&nbsp; the bank will accept your offer. Also don't ask for repairs it is senseless. You are entitled to a home inspection, however it is only for your knowledge of the property. Thu, 24 Feb 2011 04:02:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-02-24T04:02:00Z I believe you are going to ... http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ I believe you are going to find there is no "typically", mostly because each house is a unique transaction.<br/><br/>Things to consider...<br/><br/>&nbsp; - What are the comps, both foreclosure and non-distressed?<br/>&nbsp; - How does the house measure up? size? style? condition?<br/><br/>A good REA with their thumb on the local market's pulse could be helpful, but the key is finding a good REA. Thu, 24 Feb 2011 03:56:00 GMT http://www.zillow.com/advice-thread/How-much-can-I-typically-offer-below-asking-price-on-a-foreclosed-home/388207/ 2011-02-24T03:56:00Z