Foreclosure in Memphis>Question Details

E, Other/Just Looking in Memphis, TN

Would you offer a $12,000.00 difference then the asking price on a foreclosed home?

Asked by E, Memphis, TN Wed Mar 24, 2010

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7
Rebecca Hanks’ answer
Most banks have asset managers that are given certain guidelines on what is an acceptable offer. With the assistance of the listing agents, the asset managers set a list price. An "acceptable" offer usually falls within a certain percentage of whatever the list price is at that moment in time. This percentage is usually between 90-93% minimum of list price. It you don't want to pay that amount, you can wait for a price reduction. Most banks lower the list price about every 30 days. The longer you wait, the more likely it will be that you have some competition.
Web Reference: http://www.rebeccahanks.com
0 votes Thank Flag Link Tue Mar 30, 2010
you need to know what the fair market value is on the house for one. All banks that I have their properties listed have my team do a price opinion, then hire an another agent outside my firm do a BPO (broker price opinion), then they get a certified appraiser. That is how they arrive at the listing price of the "subject".

Now, the real worth is only in what the public is willing to pay. Normally, if a house has stayed on the market for over 60 days, the bank will adjust the price. 4 of the Banks that we deal with will also offer huge savings with "block" purchases (buying more than one house at a time).

I get so tickled with individuals fretting over an asking price......JUST DO IT!! Then you will know. No one is going to call your mother a name! You never know....the asset manager may be in a good mood. If your price doesn't work, then decide if you want to raise it or just move on. You have nothing to lose and everything to gain. Most of all no regrets because you tried.
Web Reference: http://www.lipseyshaner.com
0 votes Thank Flag Link Thu Mar 25, 2010
E

Some pretty good comments in the answers you have already received. The difference is revelant to the asking price as Kate suggests and determining the real value of the house regardless of the asking price are the both good suggestions. Dan recommends consulting your realtor if you have one and if you do not, then you should get one. They have the knowledge and the tools to arrive at the best value of the property.

One other item that should be considered is that if this is foreclosure, your are dealing with a very unemotional seller who will not act quickly. If this is a short sale the wait could be even longer. The wait time for banks to respond these days is being measured in terms of weeks not days or hours.

Again if you have a Realtor, utilize them, if not, get one


Gerald Williams
Affiliate Broker
Weichert Realtors - BenchMark
901-413-2233
0 votes Thank Flag Link Wed Mar 24, 2010
No.

I'd ignore the asking price.

I'd determine what the house is worth--which might be more than or less than the asking price. Then I'd pay no more than the house is worth. I'd probably offer less. Read Dan's answer.

I also wouldn't care whether there were other offers. And I wouldn't try to read the seller's mind to determine what the seller might consider reasonable. The primary question is: What is the house worth? It's really that simple.
0 votes Thank Flag Link Wed Mar 24, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Typically you want to make what we would consider a "reasonable" offer. However, in this market climate, I encourage buyers to make offers where they feel most comfortable understanding it is highly unlikely that any seller would consider an offer at $12,000 below asking price.
0 votes Thank Flag Link Wed Mar 24, 2010
E, The asking price is not the value. Your offer should be based on what a good Comparative Market Analyisis detirmines the value to be. The value may be higher or lower, but there is no set guide on where agents, banks or homeowners set a list price.
If you are not working with your own Realtor, get one. We have the tools to do detailed research and come up with a good plan. If you are using the banks agent, they are contractually obligated to look out for the banks interest, not yours. You need your own representation, just like in court.
0 votes Thank Flag Link Wed Mar 24, 2010
It depends on whether there are other offers and what the asking price is. $12,000 less than asking on a property listed for $200,000 is a strong offer. $12,000 less than an asking price of $100,000 is not so strong. You also need to consider that the bank may take up to 2 weeks to respond and in the meantime other offers could come in. My advise is work with a buyers agent to get local facts before making your offer.
0 votes Thank Flag Link Wed Mar 24, 2010
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