Rik, Other/Just Looking in 21286

Can a buyer negotiate price when interested in a bank owned home. Will banks consider less?

Asked by Rik, 21286 Sun Apr 6, 2008

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Absolutely! I am working with a young lady now who viewed a home yesterday priced at $104900. The selling agent informed me that in his opinion the house was listed $20000 too high and that it would resale for at least $116,000 if fixed up. She is definitely going to offer less. The key to negotiations with bank owned property is to make a good offer, be able to close quickly, and pay cash if at all possible. Feel free to contact me if you have further questions.

Ann Buchanan
Re/Max Choice Properties
Hendersonville, Tn
0 votes Thank Flag Link Sat May 10, 2008
You have received some excellent information here.
Here's a word of caution....the "short sale" or "foreclosure" reaql estate purchase roadway can be a bumpy one.

There are also definitely good opportunities available. Unfortunately, many people are getting caught up in thes types of sales because of all the media hype. Some of the best deals out there today are normal real estate transactions involving owners who purchased prior to the big RE boom. People that bought at a fair price before 2003 can and do often sell their homes at prices that are well below those going in foreclosure.
Our advice....explore all of your options and don't leave out the real deals by getting caught in the hype.

We would be happy to provide additional information if requested.

Best of luck,
The "Eckler Team"
Century 21 Almar and Associates
Venice, Fl 34285
0 votes Thank Flag Link Sat May 10, 2008
Something to consider is that the banks want to sell the home and are not emotionally attached to it. They will have professionals provide them with solid research so they know the value. Most will stick near their listed price when reviewing offers. If they do not recieve offers, their loan committees will review any new facts and adjust the price accordingly. If it is priced right, banks are seeing multiple offers reminecent of days gone by. Don't expect deep discounted offers to be accepted. Expect significant competition when prices reach the bottom.
Web Reference: http://www.tcatrealty.com
0 votes Thank Flag Link Fri Apr 25, 2008
Most of my buyers have paid less. A good realtor can help negotiate this for you. Example List $79K-Sell $70k,I can help you.

Paul Wadsworth
Web Reference: http://www.4cchomes.com
0 votes Thank Flag Link Thu Apr 24, 2008
Before you place an offer on a foreclosure or any property is it always a good idea to have your buyers agent put together a market analysis for the property. You can use this information along with estimates on necessary repairs/updates to determine what the offer should be. Banks in my area (Michigan) are accepting bid lower (some times much lower) than asking price on some properties while others are seeing multiple offers and selling over asking price. A lot of this depends on the particular property. I have a free report available on my Foreclosure Website http://www.MIforeclosureDeals.com This report containd good advive for selecting and placing an offer on a foreclosure (or any other property for that matter). The report is not specific to the Michigan Real Estate market. Check it out.

Good Luck!
0 votes Thank Flag Link Mon Apr 14, 2008
You can always offer what you feel the property is worth but the bank has the final say especially if there are multiple bids against the property. What more email me at loriannmertens@yahoo.com
Web Reference: http://loriannmertens.com
0 votes Thank Flag Link Mon Apr 14, 2008
I guess you can see that this is a popular subject. In my area banks are negotiating a good deal. We appreciated fairly fast and now we are starting to stablize as a result we have a large volume of inventory. I am near Disney in Clermont, Florida. We are close to Orlando but our real estate market is better off than theirs, because we do not have as much inventory. I have delt with several short sales and reo, bank owned properties in the past few months. It takes time anywhere from 10 days or less if it is bank owned but if it is a short sale you are looking at 4 - 12 weeks before you have anwser from the bank. I have been luck and had a bank anwser in less than 2 weeks so each situation is different. If you are looking for a steal make sure you have time to wait. I had a situation last month where against my suggestions the buyers decided to wait. 8 Weeks later we heard from the bank about the house that they feel in love with. Once the banks countered their offer the loan program that the buyers were going thru was not available. They were able to put down more funds and afford a higher payment, but meanwhile many homes are reduced by 20,000 - 30,0000 below their contract price. Pleasee talk to an agent that has been an agent for atleast 5 years in the same area that you are looking in. Eventhough an agent has 5 years of experince 4 of it could be from another area, thus they may not know the market as well as your local cont. agent. There are ways to make mulitple offers on short sales legally. Ask your local agent. The banks take advantage of waiting several weeks to respond to your offer and meanwhile you can take advantage of that process as well and get the best deal in the least amount of time. Ask your local agent to explain.
0 votes Thank Flag Link Wed Apr 9, 2008
All properties for sale i assume should be negotiable. Banks are not interested in keeping Real Estate on their portfolios so you might have a better chance in negotiating with a bank than with a private party. My suggestions is for you to hire a reputable Realtor in your area to assist you in this process. Good luck.
Web Reference: http://www.leonardoteam.com
0 votes Thank Flag Link Sun Apr 6, 2008
First as with anything else in real estate it is all negotiable. But heed the advice of the other agents. Banks are not going to lose too much on this deal. If you think you are going to get a real steal from a bank think again. Also be ready for a long drawn out process. The banks are going to take the highest and best bid they get. So if there are multiple bids I have seen some banks even just notify everyone with a bid in and ask them to turnaround and submit their own highest and best bid. Then they will take the highest of those bids. So if you do enter into a contract make sure you have an attorney look at the contract very closely and advise you of all the in's and out's

Good Luck
Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Sun Apr 6, 2008
One thing to keep in mind - many banks will require their own contract, or an addendum that basically re-writes the contract. It is often very one sided. The last one I saw had a clause where the bank could cancel for any reason with no penalty at any point in time. That means if someone comes in the day before closing with a better offer the bank could take it and leave my customer out in the cold.

Be sure you understand what you are agreeing to, and that you are OK with it. If you are getting a great deal then it may be worth it to you to take the risks they make you accept.
0 votes Thank Flag Link Sun Apr 6, 2008
rik, the answer to your question is "YES" however... here's some solid advice for you...
1. If there are multiple offers on the property you want, going lower will not work.
2. In almost every case the bank is going to take the "Highest and Best" offer, this means highest price
and best terms based on how quick will it close escrow, do you need a loan or will it be cash.
Most of the reo's I handle for banks are getting several offers, one of the agents in my group got 20+ offers on one property! A good asset manager (the persn working for the bank that is in charge of a property) will price a property low right off the bat to get multiple offers and or be sure it sells really fast. In my opinion reo's (bank owned properties) are the best deals in the country today! unlike short sales where you wait for a few months to get a response.... and then in the meantime property values have dropped below your original price... it;s a real pain... Reo's are quick to respond in most cases within just a couple of days you either get it or you don't.. plus you have heard the staggering numbers.. any place from 700K to 2 mil homes will go into foreclosure this year... the banks are not in the real estate business rik, they just want rid of these properties asap....
hope this helps with your purchasing game plan!
Leanne Smith - agent
0 votes Thank Flag Link Sun Apr 6, 2008
Dear Rik, Unfortunately, these times are seeing more of these kinds of questions and banks are in the business of taking care of money, not houses. So when they do become owners because of foreclosures, they will most often take less than what is owed and less than what the property is valued at.
Another phenomenon which is occurring in this country is the "Short Sale". This is when a seller has borrowed more than what the house is valued at in today's market, and they need to sell before foreclosure.... banks are now accepting less than what is owed...but this is a complicated, long process of generating the paperwork that proves hardship etc. A good real estate lawyer can answer more of your questions. Good Luck, it's a buyers' market right now. Edith
0 votes Thank Flag Link Sun Apr 6, 2008
It's a free country, Rik! You can feel welcome in trying the negotiation route on anything with anyone, but they may not listen to you. Banks, including Fannie Mae, Freddie Mac, and so on, have a lot of property on their hands and are more flexible than ever on listening to offers. They usually base their asking price on a BPO (broker price opinion) or appraisal, but they often reevaluate their position. Give it a shot, be patient, and you may get a great deal.
0 votes Thank Flag Link Sun Apr 6, 2008
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