FMV should also take in to account the condition the property is currently in. Anybody can list a home for any price.... including banks. The questions is what would a pool of buyers be willing to pay.
Whats you determine fair market value the question is what will a bank accept. It all depends. 50 cents on the dollar of a home price well would be a pipe dream. Most bank want pretty close to what the home is listed for. Many times you will see an REO home drop in price multiple times before selling, meanwhile rejecting decent offers alont the way, many times selling for less than a higher offer they had in the past. This is just the way the banks work.
As an agent, I would encourage you to put in an offer no matter what it is, but you will quickly learn your spinning your wheels until you start to understand the Fair Market Value of a property. And, yes it is possible to get a bank own home under FMV but it all depends on the circumstances.
I can contact a good agent for you to work with in the Chelmsford area, if you want to explore other options. Just let me know , send me a note or text message with your contact information.
Donnabruno@erakey.com or firstname.lastname@example.org
As John says in his post below, it makes a difference whether you are dealing with a loss mitigation department in a short-sale situation (simply put, a pre-foreclosure still in the name of the seller who owes the bank more than the home is worth) or dealing directly with a bank-owned property. One of the biggest differences lies in the amount of time it takes to get a response from the bank, and the time-line from offer to close - but each one of these properties is different and there are not hard fast rules to the game. If you choose to go this route and take a gamble on one of these "sold as is " properties, be cautious, be well-informed and remain open-minded and flexible. I would recommend having a good Realtor, a contractor, a great lender and a good financial advisor on your team of consultants if buying REO property is truly what you have in mind.
agent - Leanne Smith
Most REO bank owned properties are very aggressively priced and do not sit on the market for very long, unless its a very very depressed area. What market area are you in?
If you are not already being represented by a Realtor, I'd be happy to help you through this crazy process. Feel free to email or call....email@example.com.....508-981-7790