Foreclosure in 24590>Question Details

Locchiuzzo, Home Buyer in Scottsville, VA

How much below asking price can you go for a fannie mae foreclosed home? The home is in excellent condition, and the asking price is probably fair.

Asked by Locchiuzzo, Scottsville, VA Mon Jan 9, 2012

The home had been on the market for 4 years before being foreclosed. After it went into floreclosure, it went back on the market for the same asking price before it went into foreclosure. The home is located in a rural area.

Help the community by answering this question:

Answers

6
It really just depends. Fannie Mae probably won't accept a really low offer and if the asking price is fair then I would suggest that your offer be pretty close to the asking price if you really want to get the home.
0 votes Thank Flag Link Mon Jan 9, 2012
Find a Fannie Mae Select Agent who has a working knowledge of the Homepath Program. These agents will be able to tell you about any special offers for buyers of Fannie Mae properties, and the latest trends and time tables for price markdowns, closing costs contributions, the types and amounts of repair work Fannie Mae will address. price acceptance below asking price, the type of financing viewed as favorable against competing offers, how much of a down payment should be offered, closing dates, and which contingencies will be entertained while directing you away from contingency requests which will kill an offer under review by an asset manager working for Fannie Mae. There are several smaller issues but this should illustrate why you should deal with an experienced foreclosure agent. Especially an agent who already has a business relationship with in place with the asset manager reviewing all contract offers on the property which interests you.

Dwayne & Maryanne Moyers
Top 2% of Realtors Nationwide
Avery-Hess Realtors
http://www.TheMoyersTeam.com
http://www.MoyersTeamBlog.com
http://www.facebook.com/TheMoyersTeam
0 votes Thank Flag Link Mon Jan 9, 2012
As an REO broker this is a question I deal with almost every day. The answer is very simple.....there is no answer. Local market conditions will have more input on what you have to pay than any pat answer. Our market is no where near as slow as many areas of our state. Especially Northern Virginia. I've seen Fannie Mae houses sell for 30% under asking price. But, I could show you one right now that sold for $25,000 above asking price. It's all about "demand." Check your local real estate magazines and see if you can find an agent that deals primarily in foreclosure houses. Make sure he is experienced and not just someone who handles bank owned houses. Ask the hard questions....how long you been selling foreclosures? How many do you close a year? Do you deal primarily with sellers or buyers? Once you've settled on an agent use the advice they give. Some of the best buys in most markets right now are foreclosure properties. But like I tell all my investors on my regular email list, "the price has to work for you."
0 votes Thank Flag Link Mon Jan 9, 2012
Get a buyer's agent, because it sounds like there could be more to this story than meets the eye. At a minimum, you need a really good CMA like Ron explained. Fannie Mae will be paying both the buyer's and selling agents commision, so really the most you'll be out is some processing fees.
0 votes Thank Flag Link Mon Jan 9, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Mon Jan 9, 2012
You can offer anything, however, your agent will advise you on current market values and conditions. Often we see prices escalate above asking price in our area because buyer demand is so high. If you do not have an agent, please email me and I will try to connect you to someone in your area: MyAgentVicky@Gmail.com.
0 votes Thank Flag Link Mon Jan 9, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer