Foreclosure in Richmond>Question Details

, Home Buyer in Oakland, CA

Am I getting a good deal? I am purchasing a foreclosure in Richmond Calif it has been on the market 200

Asked by , Oakland, CA Sat May 9, 2009

plus days, when the bank asked for best and final offer my agent advised me to offer $5,000 more that asking, the bank in return completed some work on the property and pain most of the closing cost. This house is about 1400 sqft of living space, built in 2004 and in a farely decent neighborhood. My agent told me that he did not know if there were any other offers on this property. According to inspections foundation is sound. I can't help but wonder if my agent miss lead me to offer $5,000 more on this property. Property is located in Pullman neighborhood, 3 bedrooms 2.5 bathroom two story home.

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Its natural to feel some hesitation after a seller accepts your offer, after all - they are selling to you because your offer was higher than the others. It's easy to think that you are over paying.

The market in Richmond is very competitive - there are a lot of buyers pursuing opportunities there and houses regularly sell for over the list price. Paying a couple of percent over the list price is not especially aggressive.

While the house might have been on the market for a while, remember that the banks typically list a house at a higher price to begin with and reduce the list price as the listing ages. Ask your agent about the original list price of the house, you may well discover that it did not sell sooner because the original price was much higher than the price when you made your offer.

Are you getting a good deal? I bet you are paying a fraction of the price you would have paid for that house a few years ago. There is a very good likelihood that the house will be worth much more in years to come.

I suggest you talk to your agent about your concerns. He should be able to reassure you and show you market data that supports your price.
0 votes Thank Flag Link Sat May 9, 2009
Vernae

I'm not sure whether you have already bought or in the process of buying. Most of the bank owned listing price is lower than the market price so it is common to see that it sells for higher than the asking price. As I said that you need to ask your agent to show the comparable solds in that area which is similar to your property, which can give you an idea whether you are paying high and getting it for lower price. The final decision to write any offer should be your price, not the agent. Agent can suggest the price but you dont have to agree on that.

So, ask for comparable sale to check whether you have paid higher price or market value or lower than market value.
0 votes Thank Flag Link Sat May 9, 2009
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