Foreclosure in 33040>Question Details

Mike, Other/Just Looking in 33040

Planning to buy a foreclosed home. How low should I offer?

Asked by Mike, 33040 Thu Jan 3, 2008

Found a nice home to buy (it was foreclosed in late SEP 07.) I checked local court records and it shows Wells Fargo Home Mtg foreclosed on the loan @ 286K. Wells Fargo then sold it immediately to a company called Home Sales of Delaware Inc for 305K. Home Sales Inc then listed it at $449K.
Comperable homes have recently sold in this fl neighborhood for 395K-405K in the last couple months. I am prequaled and have 20% in cash. Not sure how low I should offer... these days do banks still get offended and how much profit does a big nationwide buyer like Homes Inc need to clear to make it worth their while?.... Thanks... Mike

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Hi Mike,
As Paula said, you can offer pretty low and you don't have to worry about offending anyone. On the other hand, if you offer too low you might not get any response at all -- or you could miss out on a great deal if another buyer makes a slightly better offer. You should have an agent representing you. It doesn't cost you anything. The bank is already paying the commission to the listing agent no matter what. If you have an agent on your side of the deal, the listing agent just pays part of their commission to the "selling agent". I'd be happy to write the offer for you if that would be helpful. I'm a licensed broker in Florida, Georgia & SC as well.
3 votes Thank Flag Link Thu Jan 3, 2008
Mike,
I think they need to make between ten and twenty percent. That's over and above what they put into repairs. Take that into account when deciding how much to offer. It sounds like you've done your homework.
Good luck
Michael Doyle Realtor
2 votes Thank Flag Link Thu Jan 3, 2008
My opinion is to offer as low as you can, don't worry about hurting the banks feelings - they have a bottom line number the are looking at to get, and they are not as emotional as the seller, it is all about the money.

Get yourself a good REALTOR who is experienced in dealing with reo and loss mit foreclosures, then hit them with your BEST SHOT and go from there.

It will tak more time, but if that is all you have to lose, then go for it!
2 votes Thank Flag Link Thu Jan 3, 2008
It doesn't matter how much profit they WANT -- most sellers simply don't get what they want in this housing market.

Make a low offer on the property according to what it is worth to YOU. Yes, a "lowball" offer. That's the purpose of shopping for a foreclosure. If you can't get a good deal, then they're not worth the look.

The longer the property sits on the market the more of a cut Homes Inc will be forced to take, as home values are dropping at this very moment. Home values decreased 12% last year, and they're projected to drop by that amount for each of the next two years.

Don't worry about others think, and don't ask any Realtor for advice. Realtors are out for themselves, and you need to look our for yourself and your family's best interest. Homes Inc is a business, and don't feel like you can 'insult' them. Who cares, anyway? Look out for yourself.
1 vote Thank Flag Link Thu Feb 21, 2008
Mike,

All of the information that the other have given you is very good and inline with what I personally believe. However, the only thing that I would make sure is that you are paying a price for the home that in fact todays market value but not tomorrows. We are in a declining make here in the Keys and it is not over. That doesn't meant that you shouldn't buy the property, it just means that you really should have an agent that is familiar with the area and representing you as a Single agent, or otherwise known as a Buyers Agent. DO NOT assume that if you call any Realtor, that they are representing you in that capacity. Out of the 455 Realtors in the Key West Association of Realtors, the majority of them opperate as a Transaction Broker. The difference is that the Single Agent or Buyers Agent is truly your agent looking after your interest legally. The Transaction Broker's loyalty is to the deal not your best interest. From January 01, 2006 to December 31, 2007 I was ranked #3 out of all of the 455 Realtors within the Key West Association of Realtors for the number of sales that occurred. I also have earned the ABR designation. This designation, Accredited Buyers Representative, means that I have been especially trained to work with Buyers and looking after their best behalf. I can be reached at 305-923-4234 if you would like to take advantage of my 20 years of Sales Experience. I also am extremely talented at helping you save money on your financing. Have a happy New Year!
1 vote Thank Flag Link Fri Jan 4, 2008
Don't you just love it when someone jumps on a 2 year old question and then others respond like it's current.

Clearly the rules have changed since this was first written over two years ago. Now days it's hard to imagine a bank selling to a flipper and covering their costs.
0 votes Thank Flag Link Wed Feb 24, 2010
Numbers do not lie. How high can you offer without leaving your financial comfort zone?

That would be your answer.

Resolve, with every offer, there is a counter response and a property is only worth what someone is willing to pay for it.
0 votes Thank Flag Link Wed Feb 24, 2010
Dear people,

When you sign up for Trulia please don't put down "agent" if you are not one! Read the directions! Unless I'm wrong Mistie--(Realtors are out for themselves, and you need to look our for yourself and your family's best interest)-- and maybe Joe are not agents....
0 votes Thank Flag Link Wed Feb 24, 2010
Get a buyer's agent. It's FREE! Let them show you the most similar sold properties in the immediate area so that you can see what other buyers have paid. Let them show you the properties under contract and on the market that are most comparable. In the Florida Keys many foreclosed homes come on the market and sell for full price or over full price. A buyer would loose the home if they bid low. 11% of the sold properties are selling for 100% or more than asking. 12% sold for 96% to 100%.
0 votes Thank Flag Link Tue Feb 23, 2010
Offer low and below market because market is going down still, like Troy said. Be prepared to wait for an answer, if you get one. They like to layout all the offers on 'the table' ; so see if they have some kind of cutoff date before they decide. Also, it is possible to ask for repairs even if they say they won't do repairs. They like higher earnest money deposits and quick closing dates. This is just my experience with short sales and foreclosures. Like everyone said, no emotions involved. Anyway, the banks were already bailed out for some of these losses, so in my opinion they are making 'double' on some of these properties.
0 votes Thank Flag Link Fri Jan 29, 2010
When buying foreclosures remember,there is going to be allot of little problems with the house that you don't see.. Go in low and don't let your emotions get in the way.
0 votes Thank Flag Link Sat Jul 11, 2009
I am a member of Trulia and I am also ready to put a bid on a forclosed home. The bank that had the mortgage sold it to Home Sales of Delaware Inc. If anyone knows anything about this company, I would really like to know more about them. Thank you....Joe
0 votes Thank Flag Link Tue Feb 12, 2008
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