Foreclosure in 60602>Question Details

Cookie, Home Buyer in Chicago, Logan Square,...

Buying a Freddie Mac property, - there's a FM owned I've found should I offer the full amount? what kind of offer should I make?

Asked by Cookie, Chicago, Logan Square, 60647 Wed Dec 15, 2010

buying a Freddie Mac owned home....

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18
Anyone can buy a Freddie Mac Home Step property. They actually prefer if the purchaser is going to be an Owner Occupant. That's is why only Owner Occupants can purchase the property for the first 15 days it is on the market.

From my experience, they would rather see an owner occupent get the home; however, cash is king (for the right amount.) Some listing agents have you sign a multiple offer form ""just in case."" They can continue to submit offers until one is accepted, and even then, I've seen sellers drop a deal (before all the paperwork was signed) to take a higher offer. On a good note, there are still some that will work with only one offer at a time. The listing agent can have a lot of influence (right or wrong is another issue) over offers, too. They can hang on for a period of time to collect as many offers as possible. I've worked w/both kinds of listing agents.

Additional information can also be found on the Freddie Website: http://freddiemacreo.org/
1 vote Thank Flag Link Wed Jun 10, 2015
There are many factors that would effect an answer for you Cookie...

Length of time on the market... Showing activitiy... Value... Financing... Your needs/priorities...

Perhaps you should offer your 'best'. This means making an offer that won't keep you up at night. It would mean an offer that if the bid is lost, you know that you coldn't have done any better ~ an offer that if it was accepted, you wouldn't regret it thinking that it was too much.

You would be wise to work with a Realtor®. They would be committed to working in your best interests, guiding you to homes, referral partners and decisions that would fit with your needs. Typically, the commission is paid by the seller and a buyer does not have to pay the agent for their help. If you aren't already working with someone, feel free to contact me and we can go further into the details of this specific property and more... Thank you and Good Luck!
1 vote Thank Flag Link Wed Dec 15, 2010
Do not take advice from a person who has something to sell.
Flag Fri Oct 31, 2014
Hi Cookie,

You should talk to your agent regarding the offer. If you do not have one, I suggest getting a buyers agent. Keep in mind that this does not cost you anything.

Typically, you would have your agent look at similar selling homes in the area to determine what the property is potentially worth. Sometimes you may need to go way over the listing price. Every scenario is different. Hope this helps!

Cherrie Catama
Newman Realty
773.490.3437 Ph
cherrie@newmanrealtyillinois.com
1 vote Thank Flag Link Wed Dec 15, 2010
Question posted Dec 2010

Knowing what to offer requires identifying the strategy being used by the selling broker.
Some strategies start low and sell in 30 days.
Others start high and crawl down the price ladder. This can take several months.

If you don't know which game you are playing, you can not win.

Best of success,
Annette Lawrence, Broker/Associate
Remax
Palm Harbor, FL
727420-4041

Clearwater Beach Studio condo for sale.
http://youtu.be/yoxzBHroS8A
0 votes Thank Flag Link Fri Oct 10, 2014
Your offer should depend on the location of the property, your financials, other surrounding properties and your desire to acquire this property. I tell my buyers that there may be others looking and if you really want it bid like you want it. If its something you really want it is not unusual to bid more than they are asking.
0 votes Thank Flag Link Fri Oct 10, 2014
Make an CMA and think about it ....try to be fair
0 votes Thank Flag Link Wed May 22, 2013
The appropriate offer is a completely subjective thing, actually. If you don't already have an experienced real estate agent representing you and assisting you, that's your first step! Your real estate agent will have access to up-to-date data regarding sale prices for similar homes in the area and will be able to best guide you regarding market value of the property. If the home is priced well, it is possible that there will be other potential buyers making offers and you will also want to consider those offers - and strategize with regard to your offer price with those other offerors and their offers in mind.

Best of luck to you!

If you need to find a real estate expert to assist you, check out our website! We have great agents: http://www.dreamtown.com/agents/dream-town.htm.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Thu Dec 16, 2010
HI COOKIE IF ITS FOR YOU TO MOVE INTO AS YOUR PRIMARY RESIDENCE I SAY START LOW BECAUSE THEY WILL SELL TO YOU BEFORE AN INVESTOR
0 votes Thank Flag Link Wed Dec 15, 2010
Hi Cookie,

First off you should consider that these homes be it Freddie Mac or Fannie Mae are priced to sell. For the most part they are in better than "fairly good" condition.

Secondly, due to the above mentioned reasons these home will normally end up in a multiple offer scenario, where by the owner/occupant gets "first dibs".

Do yourself a favor and do not navigate these waters by yourself. Find yourself a good buyers agent. Start with those that responded, including myself. Our services to you are at no charge, FREE!

Interview a few & make sure they have experience in working with these properties and types of transactions. Jeff Nobleza & I are colleagues. Either one of us will get you through this with the least amount of hassle.

Good luck!
0 votes Thank Flag Link Wed Dec 15, 2010
Have your agent draw you up a CMA and see what the property is worth. Remember that the market for these properties are very competitive so go in with your best price you are comfortable with. You typically dont have negotiations with these, you usally get one shot, maybe two. Have your agent show you what the going rate is for properties in the area. Then factor in how much work needs to be done to the property. Just because the property is going for 150k in a 200k area, doesnt mean its a no brain buy if you have to dump 50k into it to make it livable. Make sure you factor in everything and compare the cost. Sometimes its worth going over the list price to ensure you get it, other times its not. Do your homework, and act fast.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
708-250-2696
mlaricy@americorpre.com
0 votes Thank Flag Link Wed Dec 15, 2010
Hi Cookie,

I never tell anyone what kind of offer they should make. What a property is worth to you is a very subjective thing and I couldn't presume to know what that is.

Even appraisers, which most real estate agents and brokers are not, don't tell you exactly what a property is worth. They provide an estimate of value.

What I tell my clients is how much properties like the one they are considering, in similar condition, are selling for near where they are buying. I can share market statistics to show where prices have gone and where they might likely go next. That way they can feel comfortable with what they decide to offer.

Since this post was regarding foreclosures in 60602, the best I could give you is some general information on that. And since limiting it to zip code 60602 alone produces a relatively low data sample, I'll expand it to cover the MLS area covering the Chicago Loop.

In the Loop, the median price has been trending slightly downward over the past twelve months. In November 2009, media price was $340,000 and in November 2010 it was $324,500 which is down 4.6 percent. Now that's includes all sale types, including bank owned. For bank owned properties, the numbers are $254,000 and $155,000 respectively, down 39 percent.

What's needed to provide a better estimate of value is an exact address including the floor and view if any, and also lots of details about the properties condition.

If you're seriously considering an offer on this property and need a local agent, I have connections downtown. Drop me a line if you need a referral.

Jack Jentzen
Prudential Starck Realtors
Cell/Text: (224) 234-5276
0 votes Thank Flag Link Wed Dec 15, 2010
Cookie-

Good advice from all. I have had a few clients offer on Freddie Fannie properties. One thing I can tell you is that they are some of the best stuff on the market. They often come with financing or warranty or both. They are usually fixed up a bit and you get an answer back pretty fast.

However, this means that they are in demand. I have had a few "negotiating" buyers or hesistant buyers lose out on these properties because they waited or wanted to low ball them. If that is what you want to do - you may be wasting your time.

Have your agent do an analysis of the property and the market, but my advice is offer fast and don't bother to offer lower than 3-5% off list price. If you really really want the home and your agent says it is a good price - which it probably is - offer full listing price. It is probably already discounted and you are buying at the lowest part of the market, so you will likely still get a good deal.
0 votes Thank Flag Link Wed Dec 15, 2010
First off, I am a Freddie Mac listing agent that has sold 28 of their properties and have another 22 in my inventory. Among the 28 I have sold I am averaging a closing price of 106 percent of the asking price. In one case I sold a listing at more than twice the listing price. I would recommend that you have your realtor do research for you to determine a range of the property's value and make an offer based on that. Freddie Mac is NOT selling properties at prices drastically lower than list price.

Second, when I receive an offer on a Freddie property I have to enter it in an automated system that asks who the buyer's real estate agent is. If you don't have one the system assumes that the listing agent is your agent.... Do yourself a favor and engage an agent to help you in the process, their services are free as Freddie pays their commission.

some other things to consider: Freddie only entertains owner occupied offers for the first 14 days that a property is for sale. Freddie generally will pay up to 3.5 percent of buyer closings costs on financed offers and 1 percent on cash offers. Freddie will give you a 2 year warranty on most items in the home for owner occupants.
0 votes Thank Flag Link Wed Dec 15, 2010
Hi Jeff, thank you for the post, we are looking at buying a Freddie property. I saw this post is from 2010. Now, how long does it usually take for a Freddie property to close, from acceptance of offer to close? I saw a lot of posts from 2011 that says it takes a long time, 3-6 months. Thank you!
Flag Wed Jul 25, 2012
I recommed you speak with your buyers agent (assuming you have one) to see what the activity has been on this property. Many times with bank owned homes depending on their location and condition we see them move fairly quickly. Those located in prime areas often sell for over asking price with multiple bids. Also consider your motivation and how much you desire to own this property. Is this THE house for you? Will you be upset if you loose out? Do you have time to wait for maybe a better suited property? Depending on your answers to these questions is how you should proceed with making an offer. If you answered yes to the first two and the property is very well priced I might even recommend an offer a little over asking so as to put your best foot forward and make aquiring this property a real possibility. Of course I happen to be in a resort area so this advice may pertain more to our market than where you're at. Hope I helped. Happy Holidays!!
0 votes Thank Flag Link Wed Dec 15, 2010
The amount of your offer depends on how much you want the property, if there are multiple offers you are competing against, and how this one compares to other similar properties within the same neighborhood. Being an REO, I imagine you may be competing against other offers. Improve your chances by stating your intention to live in the property as your primary residence.

Get a Buyer's Agent to look out for your interests! The service will cost you nothing. As a matter of fact, you could improve you purchasing power with help from an agent like me. I'd be willing to provide you with my expertise and rebate you half of the buyer's broker's commission, if allowed by your lender.

If you don't yet have a Realtor, contact me to discuss.
0 votes Thank Flag Link Wed Dec 15, 2010
I have been working with Freddy Mac and their agents for almost 3 years. As with most bank-owned properties, if a home is just listed, the seller will be reluctant to allow large discount. If you really like this home and your research suggests that the list price attractive, I would go with full asking price just to avoid multiple offer situation. The moment there are other buyers involved, you know (post-fact) that the price was actually very good.
0 votes Thank Flag Link Wed Dec 15, 2010
Cookie,

Your realtor should be better able to advise you. If you don't have a realtor,, GET ONE.

That;s because there are other things you should know about buying a Freddie Mac home, like the HomeSteps program, which will require your realtor to fill out the appropriate paperwork, and also that Freddie Mac will NOT pay any transfer stamps, which will affect how much cash to bring to closing.

So, make sure your team is in place: A Good Realtor, a good attorney, and for great financing, give me a call or send me an email.

Matt Bukovy
Senior Mortgage Consultant

Wintrust Mortgage
773-416-7107
,mbukovy@wintrustmortgage.com
Web Reference: http://www.mattbukovy.com
0 votes Thank Flag Link Wed Dec 15, 2010
There are tons of them around, even in Logan Sq. You need to check the comparables to see if the price is reasonable. You need to make as clean of an offer as you can, but the price you offer should be based on how the value compares to other similar units in the area. They will negotiate so it is unlikely you need to offer full price unless you think it's a steal. Sounds like you do not have an agent so perhaps you might like some help.
0 votes Thank Flag Link Wed Dec 15, 2010
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