Determine the market value of the property and make whatever offer you like. All cash is the strongest offer. Don't expect to lowball the bank and finance 90% and have your offer accepted straight off.

The idea of final bid is fine but the most effective words will be a deadline. Put a time deadline to your offer. You must make it sound like their last best offer. Make no offers until you know what the market is doing. Do not just throw an arbitrary number, you risk paying too much and you risk communication breakdowns before they get started. When dealing with banks they see numbers not houses. Make no mistake they know numbers. Home buying is very emotional, but buying foreclosures and REO's is another emotional venture you must be ready for. I have seen clients cry after a long awaited process. If this is an investment you are likely to be less emotional, if this going to be your home, it could be be very stressful. The idea is to have an agent who has experience in these matters.


Larry Sarlo
Weichert Realtors
609-868-1171 http://www.LSarlo@comcast.net

Hi Brenda, I would add that in addition to a good price trend analysis, or market analysis, to gauge the market value, you also need a good dialogue with the listing agent. It will help a great deal for your agent to engage with the listing agent to get a sense of the bank's expectation, offer activity, the process, etc.

The good news is that these deals are moving better than they have in the past. As with all things, people involved are becoming more experienced and with that more efficient.

Good luck to you!
Jeannie Feenick
Search and connect at http://www.feenick.com

Absolutely, making an offer on bank owned or foreclosures lower than asking is many times done. But make sure your agent informs you of the market in the area. There are very particular criteria a bank will look at in an offer. Just throwing arbitrary numbers mean nothing and will most likely be turned down or countered if you are lucky.

I will never allow my clients to make an offer with just a number.
If you are not already working with an agent call me.

Larry Sarlo
Weichert Realtors http://www.lsarlo@comcast.net
609-868-1171

The simple answer is yes. I've had offers accepted on foreclosure properties that were nearly $20,000 under asking. What you need is a comparative market analysis to determine the value of the property.

Laura Giannotta
Keller Williams Atlantic Shore