Andrew, I like all your "thinking"...
You made a sound decision...
Kai Etienne with NextRe.com
I am also an investor and it is great to see a smart buyer and to deal with one is also a charm for me... I hope you can find an agent that will understand you are in control...
I am a great resource for such a person like yourself.
Kai

Andrew,

You can make any offer you wish but if this is a home you really like, it's important to keep your offer real or someone else will be enjoying its benefits.

A review of similar recently sold home in this location will clarify where your reasonable offer and final price should be. Remember the banks are looking at this same information when they are deciding which offers to treat seriously and accept.

Consult your agent for this information and his/her insight.....

Good luck

Thank you for all your responses. Although I'm might be able to purchase the house for $364K, but I think there are more down risk in the near future due to comments from JP Morgan Chase w/ their earning release today. City is due to report tomorrow and there are more illed assets on their books and Bank of American is asking more money from the treasurer due to insufficient fund to cover the loan losses from Merrill Lynch recent acquisition. Evidently the assets on the Merrill books had deteriorated significantly the bank is needed cash to cover the losses.

With grooming job markets for unforeseeable to come and forecast from Mortgage Bank Association (below)... I'm afraid the prince will continue to be on a toward pressure for the next 6 months or so even w/ low interest rates on 15 yrs & 30 yrs.

* Total existing home sales for 2009 will increase about one percent in 2009 from 2008 to about 4.9 million units. Sales will pick up about five percent in 2010.

* New home sales will decline about 31 percent in 2009 from 2008 to 335,000 units. After four consecutive double-digit drops, we expect sales to rise strongly in 2010.

* Median home prices for new and existing homes are expected to continue their decline this year, falling about five percent. Prices should remain flat in 2010.

So with $364K and the house is what the first owner paid for in 2003… should ask for more from the bank? The bank is based in India and it seemed the bank purchased the idled asset portfolio for perhaps $.50 to $1 or less.

Comparable homes are selling at $366K - $375K in the development in Newark, DE. Is this a good deal at $364k or should I ask for $15K for help w/ closing cost….

The house is 100% bank owned.

Any thoughts?

Andrew

Andrewlee:

You are not making it difficult for the bank to say no or not even respond to your offer when you start at 30% below asking price. Check out the recent solds in comparison to their list price and start below there. You said yourself that the home is in "clean" condition. I am sure it is already priced below other comparable homes.

What is the address? Do you have an agent representing you to help you with this. If they owe more than you are asking, it may become a short sale. This means the bank would have to approve it which could be a lengthy process especially if you do not have someone helping you. Let me know how you make out.

-Cheryl Supplee
Coldwell Banker Preferred

You just never know in this market. Talk to your realtor and check recent sales, etc. Recent sales will tell you if this house is already drastically reduced or at market value. Then give it a try. Good luck!

If you're working with a real estate professional, and he or she counsels you to start there, then yes. It's impossible to answer any question about writing offers in general terms. However, if you feel $310k is a reasonable offer, and your real estate representative feels the same way, then write it up! The worst that can happen is that the bank says "no." But more likely, they'll submit to you a counteroffer, and you'll see if they're willing to start negotiating down.

Who knows? You may get lucky and get it for $310k!