J,
Yes, banks have been known to negotiate. But keep your offer within reason. Accessing the comps for recently sold similar property from this location will shed light on where your price needs to be. Be assured the banks are also looking at this information.

A serious buyer should make a serious offer when dealing with foreclosures....otherwise the home goes to another buyer with a better offer.

Good luck,
The "Eckler Team"

Good stuff. What I find on trulia is so many people answer questions without asking important ones.

Why are you considering a purchase of REO properties? This is a KEY question.

Second. What is your experience with regard to purchasing real estate?

There's SO MUCH information out there - it boggles the mind.

I agree with Gene 100%. I also recommend you do a little research on your own.

My initial reaction to your question is what some other people wrote - basically, everything in real estate is negotiable - however - that's the basic (very basic) answer.

Negotiating a foreclosure purchase will only be as effective as the experience of the one negotiating. Things like comps in the area is important. BUT ALSO - knowing the bank and getting familiar with REO departments (not an easy task) is also important. Also - the TERMS you as a buyer have to offer the bank mean alot as well. If you have no money in the bank, no credit - forget it. At least for now. Look to a partner - join a real estate investor club - attend some of the meetings/seminars.

If you've got money and credit - ask yourself again - what is the purpose of buying a foreclosure. This question is vital and I think it's a LARGE piece of the puzzle for you to figure out first, then ask questions.

check out the link.

In real estate anything is negotiable.

All real estate transactions are negotiable you have to do your homework to determine value. While I have read some of the other answers, they are not necessarily correct. Take for instance an REO purchase in Queens, NY that my client is closing on Monday. Option One bought the house back at auction.. It had 2 mortgages totaling $350,000.00. Our contract price is $215,000.00. Thats a difference of $135,000.00.

Not only are the prices negotiable, but so are the terms, to some extent. It is important to work with an attorney that knows where to push to get the terms you want such as having the Seller pay the transfer tax. While these homes are "as-is", the Seller does guarantee insurable & marketable title (this does not include violations, Certificates of Occupancy etc which are part of the municipal searches and are "info only").

Good luck!

Yes, bank owned properties are negotiable...but low balling an bank owned property (in my opinion) is not a good idea...start with an offer that makes sense. Good Luck!

everything in life is negotiable.

There's always room to negotiate....but it's a different kind of negotiation. If you low ball an offer, it will be seen as precisely that, a low ball offer that may not generate the kind of response you want. Don't be afraid to submit a lower offer, but do note that most REOs are already priced according to the appraisal that the lenders have commissioned and close to their bottom line.

REOs are AS IS sales, so don't expect that they will agree to repairs. They typically don't agree to credits either.

Give it your best shot --- you may only have one chance at it --- and submit your best and highest offer, following consultation with your realtor who can provide guidance in terms of recent comps, value in the area, balance of the loan, how much the property last sold for, methods of negotiation, etc.

And submit as complete a package as possible
1. Preapproval Letter
2. Offer written on Lender's preferred/approved form
3. Information about your financial situation (some lenders ask for FICO scores)
4. Estimated HUD (buyer's) settlement
5. Cover letter itemizing highlights of the offer (so that the negotiator sees at a glance what your offer entails)

Good luck!

Yes, absolutely they are negotiable. It all depends on demand and how long the property has been on the Investors books and condition of the property. Keep in mind that it takes a while for the bank to answer back and in that time other offers can come in. The bank does not take offers in the order they come in, they take the offer that is the best in Price and Terms. Make sure that you have an Approval Letter, not a Pre-qual and make the closing as fast as possible....say two weeks from acceptance from the bank. Keep in mind that Foreclosures are sold in AS IS where is condition. Make sure that you have a good Title and Permit search done on the property before proceeding. I would also recommend that the home be inspected. A lot of people can be very vindictave when the bank taked their home away from them. The most obvious would be to make sure the toilets flush.

I concur with my colleague and add that, there are very few deals in the distress sales sector of the real estate market. Particularly when you factor the number of foreclosed and those facing foreclosure are largely homeowners with sub-prime mortgages.

J,

In most cases yes. The bank wants to get the loan off of the books. Don't look to steal it as the price is probably close to or below what is owed.