General Area in Los Angeles>Question Details

Russomike, Both Buyer and Seller in Los Angeles, CA

When buying a bank owned property in the Los Angeles Market, do you think the asking price can be negotiated?

Asked by Russomike, Los Angeles, CA Fri Jun 12, 2009

I heard that to go down on the asking price from the bank is not a good idea in this market

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Answers

5
This is really dependent upon the specific property and how the bank has chosen to price it. Some banks price more aggressively than others and you must remember that the banks don't set the values in this market, the buyers do. That's you! The best way to approach a property is to work with you realtor and look at what similar properties are selling for in the area and base your offer on those statistics.

I have seen quite a few over-priced REO properties and also quite a few purposefully under-priced ones that sold quickly in a large number of multiple offers. (30+ in one week for the few i'm thinking of) So I would say the basic answer is yes, the price is always negotiable.

What is more common, and expected, is the unwillingness of banks to offer credits for repairs once you are in escrow. Usually they will state this up front in the listing that no credits will be given.

I hope this helps your understanding of pricing and most importantly how each property is a different situation and there is often no "catch-all" rule for us to go by.

- Jeffrey White -
Sotheby's International Realty
1 vote Thank Flag Link Fri Jun 12, 2009
Depends on many factors:
1. How aggressively is it priced to begin with?
2. How long has it been on the market?
3. What is the percentage of REO's/Short Sales in that particular market?
4. Your strength as a buyer (cash, financing, terms, etc...)

Some buyers pay more attention to list price than value and just want a discount off of that. That is not always wise as some properties are intentionally priced under market to generate multiple offers. That is why it is important to have an agent who is familiar with the market, knows a deal when he sees one, and who can help formulate a strategy to help you get the property you want at the best possible price. If you'd like to discuss further, please e-mail: Reid@LAHomesExpert.com
0 votes Thank Flag Link Mon Jul 20, 2009
HI Mike,
If you are looking in a desirable area do not argue on the price. Good properties are getting multiple offers and over asking, sometimes all cash offers which are appealing to some lenders. People dive on them because of all the media publicity and because they are a great opportunity. In these cases, the game is to figure out how much higher you offer in order to get the property over the other offers. Get all your paperwork ready to grab the one that you will want to buy.
If the area is not so good and the house has been sitting for a while, you can offer less and give it a try.

Muriel Levin
Certified Short Sale And REO specialist
Coldwell Banker
MurielLevin@ColdwellBanker.com
Web Reference: http://www.MurielLevin.com
0 votes Thank Flag Link Sun Jul 19, 2009
You can try to negotiate the price, but given the market conditions right now (stacks of offers from all cash buyers) I wouldn't recommend it, unless you have very thick skin.
0 votes Thank Flag Link Sat Jul 18, 2009
Hi there Russomike. It really depends on the property and the bank. You would also need to really review the comps to get some benchmarks too. You should really review these propertries. look at pics.maps and data carefully. Market analysis data too is key to determinng your offer

Hope this helps
Kind Regards
Michael Barron
Realtor/MBA
First Team Real Estate
0 votes Thank Flag Link Fri Jun 12, 2009
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