Chad,

I'm a broker here in Monroe County. To answer your question--it depends. For instance, with the auction Monroe Bank & Trust just held on 6/4 many of these homes didn't secure near the open prices the Bank was hoping for. In that instance, many of those are being put back on the market, but the bank has definately changed their thinking on many of those properties. Others in the area continue to sell for substantially under list price, while others still may and have indeed gone for above the list price. As always with property--it really is dependent on the particular parcel you're interested in, and the bank. Hope that helps. Feel free to contact me anytime if you have further questions. http://www.michaelethompson.com

Hi Chad, I live and work in Monroe County. You do not always have to overbid on a property. The first thing your Realtor needs to do is a market analysis of the homes that have recently sold in the area. Other factors when considering an offer price is the condition of the home, how long it's been on the market, the location (a lot of Monroe County homes are on the water), the competition and how badly you must have the home. If it is in good condition, priced well and does not have much competition, you would not want to low ball with your offer. On the other hand, if it needs work, has been on the market a while (with little or no price reductions), and in a cookie-cutter neighborhood and you're willing to move on to another home quickly, you may want to test the waters a bit.

Chad, it depends if there is competing offers. If so and you like the house, bid market value. If there is not competing offers, bid low and keep with as few of contingencies as possible. There is no "normal" in MI, foreclosures or offers.

Chad,

There is no "normal" bid amount. Each home is unique in that there will be certain repairs needed to bring it back up to code and make the home livable. You need to take these into consideration before making your offer.

Most banks will inform all bidders when there are multiple offfers and ask for your highest and best bid. Unless you are very certain about repairs and the potential value of the home, do not get caught up. They are trying to create an auction effect and higher bids.

Your Buyer's Agent (you do have a buyer's agent, right) is legally responsible to assist you in determining a range of value for each home based upon recent comparable sales. You should ask them to run these comparables and explain each to you before making any move.

If you do not have a buyers agent, I can recommend several for you to interview.

Hi Chad!

I'm in Northern MI and nearly all of my bank-owned sales with multiple bids go over the asking price - anywhere from a few dollars up to $5000. The amount over depends on how badly you want the place. I usually have my buyer choose an odd number (for example $60,011.)

Talk to your Realtor and see what s/he recommends. How much is the asking price?

Meagan Kempf
Coldwell Banker ALM
Manistee, MI http://www.MeaganKempf.com http://www.ManisteeHomes.net http://www.ManisteeForeclosures.com