Foreclosure in Irving>Question Details

Trdrwp, Home Buyer in 75034

I found a foreclosure home which is listed for $300k, this house is owned by BANK OF NEW YORK MELLON. For how much I can give cash offer.(low-ball)

Asked by Trdrwp, 75034 Thu Dec 15, 2011

I want to give a cash offer, can I give like $200k cash offer is it too low the back will not consider, if so how much is the best lowest offer for a foreclosed homes if I want to give a cash offer.

If there is not much benefit between cash or non-cash offer, than what is the best offer I can give(non-cash or loan).

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Answers

11
The banks want market value for the house.
I don't know the particular house, but it could be the one on Cedar Valley in Valley Ranch.
If so, I don't think 200K will even get you a counter. It will probably sell a lot closer to the $300K price.

You never know though. It doesn't hurt to make an offer. Maybe they won't respond, maybe they will. At least you will know you have tried.

Cash or financing really doesn't matter on these if they are in good condition. The net to the seller is the same. Most of the banks I have worked with don't actually like cash offers as only about 50% of them or less close. Large earnest money is what talks, proving you are serious about going through with the transaction.

If you want to take a look at the house or make an offer just give me a call.

There are several other foreclosures in Irving that are available as well.

Typically with low ball offers it's better to bid on ones that have been on the market a while or are in really bad shape.

You can see more Irving foreclosures at the link below.
http://www.metroplexhomesalesinfo.com/listings/propertyid/11670718…


vg
1 vote Thank Flag Link Thu Dec 15, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
You won't know until you make an offer. Low Ball offers are not typically accepted. They just don't work. The bank knows what the home is worth. I have a pretty good short sale inventory. One of my homes fell out of contract and had an accepted offer. When the new offer was submitted the bank wanted $10,000 more than the previous offer they had accepted. That is what their investor wanted for that transaction at that time.

Banks will go with the best offer they can get. Of course you want to go in somewhat lower than what you are willing to pay but have your agent do their homework and educate you on the market so you know what a good offer is and what you are willing to pay. If you start your offer too low they will counter back at full asking price most likely just to weed you out.

Cash does not matter to banks. They want the most money they can get. Now 2 similar offers one being cash they will take the cash offer but if your offer is $5,000 or more less than a financed offer they will go wtih that offer every time in this market I have personally found.

Your last question is a question you need to ask your agent to help you with. We cannot answer it in this forum.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Thu Dec 15, 2011
currently inventory levels are down and buyers are coming out of the wood works, so low ball equals no home in the end. read more about REO's at http://blog.house-guy.com/

Best of luck in your purchase
0 votes Thank Flag Link Thu Dec 15, 2011
Your $200,000 offer with undoubtedly be laughed at; if that.
It is ludicrous!

Would you even acknowledge an offer like that if YOU were the seller?

Understand that CASH is what the Bank will receive anyway; they will be paid when the loan is paid off; there will be a wire transfer and the Bank will receive their money. Did you think they wouldn't be paid if it was a financed offer?

The Bank knows how much they are losing on the deal. And they already know the MARKET VALUE of the property. They have probably done several BPO's which is their equivalant of the CMA.

Have you had your Realtor do a CMA so that you know the MARKET VALUE of the property, or are you just shooting in the air?

What is your objective here; to buy the property?

Good luck and may God bless
0 votes Thank Flag Link Thu Dec 15, 2011
Thanks to every one for your replies.
0 votes Thank Flag Link Thu Dec 15, 2011
Where is your buyers agent ? Who is assisting you with all these questions. EACH FORECLOSURE stands alone HOW to submit an offer. In some instances we instruct our buyer present an OFFER OVER list price . GREAT myths your there you can "low ball offers" which can close down any communications OR not obtain the winning offer.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Dec 15, 2011
Trd,

The best offers, "low ball" or otherwise are those that can be justified and defended by using records of recently sold property. Of course you will want to take into consideration the condition of the home and make adjustments if appropriate.

Banks have an obligation to justify the highest price for the property relative to the market and therefore are committed to using appraisals and BPO's as a basis for their actions. This does not mean that they will not accept a lesser amount for the property but it must be justified.

Your best course of action may be to identify and agent that is familiar with the local area and it's distressed sale activity, working through them to develop a reasonable price and defendable approach.

Good luck,

Bill
0 votes Thank Flag Link Thu Dec 15, 2011
Since the bank owns it they will be very careful who makes an offer for it. They will require a lender prequal letter stating the buyer has spoken with a loan officer and said loan officer feels the buyer can qualify for a loan. Offering a bank cash will not be that big of a deal to them and certainly won't encourage them to accept a 33% low offer just for cash. The bank will only deal with qualified buyers and waiting 2 more weeks for a deal to close, with a mortgage, is OK with most banks. Cash does not make that big of a deal to a bank, maybe to a normal seller but not a bank. What I see is normally 2-3% below list price (bank owned not short sales which often go for more than listed price).
0 votes Thank Flag Link Thu Dec 15, 2011
Cash will play into it but the bank is looking at their net payoff whether it be cash or loan they do not care. You need to find out what the fair market value of this house by comparing it to similar sold homes in the area. A good Realtor can help you with this. There is a lot of competition in the Irving area and Dallas Fort Worth. Homes are selling so the banks do not have to give these homes away but you can get a good deal.

You can do this on your own but while you are offering low ball offers someone that has a Realtor that knows what they are doing will send in an acceptable offer.
0 votes Thank Flag Link Thu Dec 15, 2011
Offer what you would be willing to buy the house for, understanding there may be negotiations. There is a major benefit for a cash offer, but to know if your offer would even be close would depend on the local market, the homes perceived value, etc. if you really want to try and get the home, make an offer.
0 votes Thank Flag Link Thu Dec 15, 2011
No

The 2010 Neighborhood Stabilization Act Requires banks / mortgage companies to sell REO properties for MARKET VALUE.

If the home is listed for $300,000 the least the bank may take is $295,000, as the $300,000 is most likely the lower end of the market value.

Cash is the lest acceptable way to purchase, FHA loans are the best way to purchase are given first priority by banks, per the Act above.


And Banks do require a minium of 60 days after agreement to close.

What ever offer you do make, you MUST submit proof of funds or Pre qual loan letter with your offer

Good Luck

Tom
0 votes Thank Flag Link Thu Dec 15, 2011
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