Foreclosure in 60651>Question Details

Mshouse18, Home Buyer in Tampa, FL

Freddie Mac home asking price 17,900 I offer 14,000 the next day the bank counteroffrer for 17,000 I respond back 15,000 what's next

Asked by Mshouse18, Tampa, FL Wed Dec 28, 2011

The house is very messed up no bathtub,sink, cabinet,doors,lights,hot water tank,furnace no nothing on the west side of Chicago

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you probably lost the of right now you are not in contract and have nothing for 2,000 .. live and learn
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1 vote Thank Flag Link Thu Dec 29, 2011
Just take the $17000! Do you think the listing agent didn't notice all of these problems when he/she was pricing the home? Plus, this is a Freddie Mac. The most they will budge is 5-6% off the listing price. Usually investors/buyers turn to bidding wars and will bid UP from the listing price on these types of properties. A good investor would think, "Wow, this place looks horrendous, but at least I got it for a great price!", because that money can be used to better afford the rehab. What's $2,000? Really?! Understand value has already been determined in the initial pricing. Try not to haggle just because you feel the need to. What you do next is loose the house to a realistic buyer and learn from this mistake. I'd like to hear the outcome if it does become positive for you.
0 votes Thank Flag Link Thu Dec 29, 2011
I'm a Freddie MAC listing agent who has sold 31 homes for them. Freddie has already taken into consideration the condition of the home when pricing. My average Freddie MAC listing sells at 106% of list so and gets multiple offers. Both sides will keep going back and forth until someone gives in or decides not to respond. As more time goes by you risk losing the home to another investor.
0 votes Thank Flag Link Thu Dec 29, 2011
More often than not, that is exactly how Freddie Mac negotiates. You might be able to get them down a grand or two right now, but if the price is too high just move on or wait for the price to drop again if they don't get any other offers close enough to their bottom.
0 votes Thank Flag Link Thu Dec 29, 2011
Sounds like this has to be a Cash Offer due to the condition of the home. As per the offers/counteroffers, what are your plans and how much do you really want this home? You can always increase your bid or just stay where you are at and see what the response is. If you think it's worth the investment and that over time you can fix it and live in it or rent it out, then does $2k really make that big of a difference? If you are not working with a Realtor, it may be a good idea to have someone represent you in order to make sure you are getting a "good" deal.
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0 votes Thank Flag Link Thu Dec 29, 2011
Philip I saw the house on Carrol It look like it been a fire home and it's frame not really good .
0 votes Thank Flag Link Thu Dec 29, 2011
The lender is looking for the highest bid.A property that low there are more than likely mutilple bids on it so you will have to bid your highest sometimes even going over the asking price, even if the condition is horrible.
0 votes Thank Flag Link Thu Dec 29, 2011
Its all relative to the shape of the house. Its also a foreclosure, so there are a lot of people going after them. If you countered at 15k and someone else offered higher, you may even have to raise your bid. At this point you are waiting to hear back from the bank. I also always suggest to my buyers to not buy anything that they "no nothing" about. I would get educated with an area prior to making an offer. This way you are informed on everything. Regardless, discuss this all with your agent.
0 votes Thank Flag Link Thu Dec 29, 2011
I assume you have an agent to help you on this, but you need to see some comparables to be sure that this price range is reasonable for the condition. I will assume that you have the $$$ to do the work to fix it up so it really is just a question of how much you want to give and how much the bank is willing to sell it for. If you split the difference at 16K would you think that is 'reasonable'. I can tell you that there are a ton of properties on the west side that are in this price point, so you will have choices although the condition can carry. I have a house at 4427 carrol that is totally trashed and the bank is asking 15900. I will have a 2 flat in the 4400 block of Congress for sale inthe next 2-3 months and it will probably be asking 20K.
0 votes Thank Flag Link Thu Dec 29, 2011
If you have the money for repairs take the 17k. The bank is not going to continue going back and forward on the bid. Get CMA done. It will give you an idea of the market value for now and the potential value in the future. The property is already discounted and what your talking about is a 2k difference. Do not sweat the small stuff. But, if your looking for move in condition than this is not the property
0 votes Thank Flag Link Wed Dec 28, 2011
This is very typical with Freddie Mac. They do not take much less than asking price on their listings. Their listings are usually in better shape (it sounds like this one may be the exception) and are usually priced correctly. I will say that I've consistently had the experience you describe. Usually you have to make 3 offers to get them to come down (and that is assuming that in the days it takes you to make 3 offers that no other offers come in). With one of my clients this summer, the home was listed at 89k. We offered 84, they came back with 89. We offered 85, they came back with 88. We offered 86, they came back at 87. We accepted 87. It all depends on the asset manager, but in general they aren't taking 22% off the current list price (what your offer of 14,000 represents on a 17,900 list price) - more like 1-3%. Now that isn't to say that if it sits for another 30 days that the list price won't come down to 15,900 from the current 17,900, but then you run the risk of someone else making an offer.

I hope this helps; Best of luck to you!
0 votes Thank Flag Link Wed Dec 28, 2011
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