Foreclosure in Houston>Question Details

Kristipy, Home Buyer in Houston, TX

We are looking at a Fannie Mae house in Cypress, TX. How far below listing price does Fannie Mae go in this area? It's been on the market 15 days

Asked by Kristipy, Houston, TX Sat Feb 25, 2012

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Carolyn Wolfe’s answer
I have placed bids for both investors and first time homebuyers. It is best to have your agent do an up to date market analysis on the neighborhood for active, pending, and sold properties in the area. Also check out the deed history to see how much the loan that was foreclosed on was for. Other items to consider: what type of repairs need to be done, has the home been updated and/or maintained properly? Also, is the A/C unit and appliances still in the home. And last, are you paying CASH or Financing? If the home is a really hot buy, you may miss the opportunity if you under bid, but if you and your agent does their homework, you can feel confident in your bid.
1 vote Thank Flag Link Sat Feb 25, 2012
Fannie Mae will sell at market value (like all the other sellers). Whether that is list price or not is determined by the other Solds in the area with similar characteristics and demand. DO ask an agent to give you the Solds for the area so that you can evaluate appropriately. DON'T ask the listing agent, as they basically have an obligation to sugar-coat the data in favor of their primary client, the seller. Best wishes on your property search. It is akin to looking for a needle in a haystack, isn't it?!
Web Reference: http://lot22.net
1 vote Thank Flag Link Sat Feb 25, 2012
After consulting a realtor and establishing fair market value you need to decide how interested you are in the home. If it is in good condition and in a good location chances are there are several other buyers interested in the property also. Many forclosures will only consider offers from buyers who will be living in the home for a number of days and then open it up to investors. This not only gives resident buyers a chance to get in before the investors snatch it up; it also gives the seller a better chance of getting more for the home by creating a sense of urgency in the resident buyer. If you are not already working with a realtor give me a call and I would be glad to assist you. My cell phone is 281-798-4100 or you can simply click on my picture and send me an email.
0 votes Thank Flag Link Sun Feb 26, 2012
Hate to say it, but you might pay MORE than list price. A foreclosure can sometimes be listed way below market due to rough condition, poor location or other factors. When it is priced low, it will attract investors and others that are key to getting the "best price". Many end up making a bid and thus the highest bid gets the offer.

If it is already listed 10%-20% below the averge market...why would the seller have to come down more? As you said, it has only been on the market 15 days. If it has not sold in 6 months, you might start thinking about making a lower than list offer. Right now, I might consider..at the least..a full price offer to beat out the other buyers.

As other agents have mentioned, you will need to know what the market is doing for the area the home is located first before you can make a offer. Have you been inside the home? How well do you know the area? Schools, commute, crime? All issues you need to think about. Lets talk as I live in Cypress and have worked as a buyer's agent for many clients over my 19 years in the business! Hate for you to lose a home because you made too low of an offer. You might be waiting a long time if you only look at the price. Lets talk soon.

Mark McNitt
Bernstein Realty
m# 832-567-4357
0 votes Thank Flag Link Sat Feb 25, 2012
Fannie Mae sales can be complicated. You can check the tax records and recent sales in a neighborhood to see what percent below 'value' a home is being sold for, but many times the final price may end up being more than the listing price, if there are multiple offers on the property. You would do best to contact a reliable agent to help you with this or any type of purchase. A Realtor could do the research for you and help you determine the appraisal values in the neighborhood based on recent sales.
I specialize in the Cypress/290 area. Please call me if you have more questions, and good luck with your home search.
0 votes Thank Flag Link Sat Feb 25, 2012
Hello, Kristipy !
There is no way of knowing that a home will sell below the list price or above the list price. Nicer better cared for homes vs. trashed and begging for TLC homes still depend on location and sometimes the right buyer to come along.

Your first - best step is to find a Realtor to work for you that you can trust (THAT'S ME !!). Call me and let's introduce ourselves. We will visit about what you want. When I have a clear idea of your needs I will send you homes (this one also) so you can see the photos of the property.

In the mean time I will be helping you locate a trusted financial advisor to assist with the mortgage steps you will need to make. Then when you find just the right home I will have you setup in a strong position to make an offer and I will negotiate for you to get you the best deal.

The properties I send, you will want to select the best 2 or 3 and we will view them so you can get a feel for the neighborhood as well. Looking forward to assisting you and making all the process stress free for you. I see no reason for you to delay. CALL LME TODAY. I can get you started the right way !!

Kathleen (281)799-4002 KathleenRealtor1@gmail.com
--- Helping you make SMART real estate decisions!!
0 votes Thank Flag Link Sat Feb 25, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Sat Feb 25, 2012
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