Banks do their homework before they list REO homes. They price the homes right, and these days REO homes are not going for too much below list. In fact in some markets they can even go for more than list.
Kawain Payne, Realtor
Fact is, most REO properties get multiple offers on them. Example: I had one I listed for $114,000 base on the fact that everything in the house was missing... no appliances, light fixtures, fans, plumbing, cabinets or mirrors and it was in an area that comparable homes sold for between $160,000 and $170,000. Within 5-days on the market I received 26 different offers on this home. It eventually sold for $130,000 cash to a person that was going to repair it and live in it.
Your agent needs to do a comparative market analysis on the property to see what the actual value is in its current condition and then you make a reasonable offer. In almost all cases these homes sell for between 3 to 5 percent above asking price or even more like my example above.
Tom Scaglione, ePRO, SFR, REALTOR
Future Home Realty, Inc.
Cell: (813) 310-8200 ~ Fax: (813) 909-2915
~ 2012 GTAR REALTORÂ® OF THE Year ~
Certified Bank Owned Sales Specialist
Certified Short Sale Specialist
20K above or below? because if it was below I doubt that your offer will be considered, unless it was extremely overpriced to begin with. The real estate market has shifted long time ago, property values have increased and banks are expecting around 90% of fair market value for their properties, of course taking in consideration the condition of the property. If your agent believes that the property is overpriced then he needs to prove his case with comparable properties that have sold and subtracting any repairs needed that might not been taken into account when originally priced. If it was above asking price, then other things to consider is: did you have contingencies to the sale, were you asking for closing costs to be paid, are you using financing or public assistance, are you an investor or owner occupant... etc Good Luck!
Franches Schnell, REALTOR
Short Sale & Foreclosure Resource
If you're actually talking about a "short sale" it's a whole different animal. A multitude of things could be going on but if a Seller refuses to accept a reasonable offer within 2 weeks of being listed it automatically sends up a red flag that either the seller wants to drag out the process or their is a 3rd party insider who wants to buy it below market and they are trying to create the illusion that no one is willing to pay the market price.
Best advice I can offer is to rely on and trust your agent (unless you have reason not to) and be patient when making offers on REO/bank-owned/foreclosed homes. Keeping your fingers crossed can't hurt either : )
If your offer is identical to the previous offers that were rejected, the listing agent may be instructed to kick your offer to the curb or if your offer differs materially, the listing agent can submit your offer and await the banks response.
Be aware, just like ANY home listed for sale, the listed price is what the seller WILL accept. Anything other that list price allows either side to negotiate and manauever for advantage.
Yes, it is common.
What is most amazing, the bank may, in two or three months (or weeks) reduce the price below your offer and sell it to whoever offers that list price. Don't take it personal, It's just the way it is.
Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Move to the Front of the Line (http://FirstLookHomes.com)