Foreclosure in 19020>Question Details

Julia, Both Buyer and Seller in 19125

Is there room for negotiation on a bank owned property?

Asked by Julia, 19125 Thu Jul 14, 2011

I found a property that I'm interested in and it says it's a bank owned property, my question is "is there room for negotiation on a bank owned property"? or is the asking price the bottom line? I will be paying cash for the property and not holding a mortgage.

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As an REO agent that lists and sells bank owned properties exclusively, I will tell you from experience that the bank's asking price is negotiable, however none of the banks will entertain low ball offers. They come up with their asking price by ordering two BPO's (Broker Price Opinions) and an appraisal. 9 times out of 10, they are pricing it to sell, ie, lower than the guy down the block in order to procure a quick sale and get it off the books. They will sometimes list high and reduce every couple of weeks, or list at the bottom of the market to produce multiple offers. They have no problem flat out rejecting low offers. The other trend I see alot of them do is counter a buyer's offer $1,000 less than asking each time the buyer comes back with a counter, until the buyer 'get's real, or get's out'. Obviously, cash is king, and your offer will be stronger than a financing offer as long as you provide proof of funds with your offer.
1 vote Thank Flag Link Thu Jul 14, 2011
The Listing price is not the "bottom Line" and in fact, the Bank may have had nothing to do with the Listing price. Quite often the Listing Agent will chose a Listing price based on encouraging Multiple Offers.

The Listing could be High, Low or somewhere in between.

Your best bet is to enlist the aid of a Buyer's Agent to help you. He will do Comp's, evaluate the property, possibly do some Inspections, and help you determine the Value of the property.

The Buyer's Agent is paid by the Seller, so this service will cost you nothing; but if you do not get one, it could cost you a lot.

Good Luck and may God bless
1 vote Thank Flag Link Thu Jul 14, 2011
It depends on the market. It there are a ton of REOs in the market you can sometimes drive the price down even lower. Basic laws of supply and demand. Cash is a great way to lower the price as well.
0 votes Thank Flag Link Fri Sep 28, 2012
Julia

The short answer is Yes.
Consult with an experienced agent to craft the best offer, just as you would with any other seller.

Fran and Mark Redding
Prudential Fox & Roach, Realtors
1010 Stony Hill Road
Yardley, PA 19067
215-321-3307 Direct
215-208-7169 Cell
http://www.franandmark.com
Web Reference: http://www.franandmark.com
0 votes Thank Flag Link Thu Jul 14, 2011
Review comps with your agent, recently sold similar properties in the immediate area, then determine a fair offer; keep in mind that if a property is priced on target, or slightly below, multiple offers may occur.
0 votes Thank Flag Link Thu Jul 14, 2011
If you are the only one offering, there's room for negotiation. Ask your agent to run some comparable sales for you and decide.
If there is more than one offer, there's a little room for negotiation. You definitely have the advantage with a cash offer; but if you really like the home go as close to or at list that you can.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Thu Jul 14, 2011
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