Foreclosure in Duluth>Question Details

Eric Fletcher, Home Buyer in Duluth, GA

How low should you offer on a foreclosure that is priced low for the area it is in in comparison to the neighborhood?

Asked by Eric Fletcher, Duluth, GA Thu Nov 25, 2010

My real estate agent thinks if we offer lower than the asking then it will be rejected. Also, The appliances are old and i want and appliance allowance and closing. Is this too much to ask. How low should we go below the foreclosure price.

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Lenders stop allowing "allowances" on purchase contracts years ago.
Make a decision about what you are willing to pay to get the home based on solid, recent comparable sales. Your agent can get this information. Your agent might be right - many times the good ones get away because the buyer is going for the deal rather than the home. It would be very difficult to get ripped off these days - especially if you are financing - appraisals are your backstop to overpaying for a property more than ever right now. The banks are not messing around - if the property is overpriced - they want to know and that is the appraiser's job to find out.
0 votes Thank Flag Link Sat Nov 27, 2010
If it is priced low and the foreclosure market is active then I would think about making a full price or above full price offer and not a lower one. In our area bank owned and short sales dominate the real estate market now. Realtors don't deal with foreclosures until the bank takes them back and puts them on the market for sale. Once they are bank owned and have already been foreclosed, then we can sell them to buyers. The bank prices the home at current market value which is likely less than what is owed, but the bank will sell it to get it off their books. They want as much as they can get to reduce their loss and so they wait until they get an offer they can live with. Often there can be 2-5 offers on a bank owned home and the person with the best offer wins, so you often see full price or higher offers. Remember, these are already heavily discounted so even at full price you are getting a good deal if there is not a lot of work to be done on the house.
1 vote Thank Flag Link Thu Nov 25, 2010
We are seeing homes close at about 97% of the asking price. We just offered full price on a foreclosure and were out bid.

Mark Lackey
Atlanta Housing Source at
Solid Source Realty, Inc.
Associate Broker
EcoBroker
Mark@AtlantaHousingSource.com
404-886-8789

Services
Home Buyers & Sellers - http://www.AtlantaHousingSource.com
Property Management – http://www.SolidSourcePM.com
0 votes Thank Flag Link Sat Nov 27, 2010
Get a good indication of market value, go in with no financing issues and close rapidly. Always go aggresive as possible, they will counter anyway.

Unless your agent is a fence post, they should know how to handle things.
Web Reference: http://www.hrmiller.com
0 votes Thank Flag Link Fri Nov 26, 2010
Hello Eric,
1. you already stated it's priced low for the area, so this question is a no-brainer.
2. why are you questioning your agent's advice?
3. Who is the licensed professional? you or your agent?
0 votes Thank Flag Link Thu Nov 25, 2010
What are your financing terms? Are you a cash buyer?

Your agent knows the Duluth submarkets better than I do, doesn't he?

What are your reasons for seeking generic, rule of thumb advice on Trulia Voices?

Do you really want this?
Web Reference: http://intowninsider.com
0 votes Thank Flag Link Thu Nov 25, 2010
If it is already priced low for the neighborhood and not in need of much repair only upgrading I would take the advice of your agent. Banks are also looking to get the most out of the property they own.
0 votes Thank Flag Link Thu Nov 25, 2010
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