Home Buying in 19044>Question Details

Roti, Home Buyer in 19010

Bank owne property, what could be a good offer?

Asked by Roti, 19010 Wed Sep 24, 2008

I have looked at a house, it was fore closed in 2004. Brought it in the market by a holding company. Asking price is pretty close to mortgage amount. If i offer 70 to 80 cents a dollar in this market, do you think it holding company would be interested in that or it will be just a waste of an effort?

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Edward Carboy’s answer
Are you lookin to invest, or reside in the home. When putting in an offer for an REO, this is one of the questions the holding companies(Asset Management Co.) ask the listing agent. Thought being, an investor would be willing to walk away quicker than a buyer looking to live in a property. You can only write up an offer and see what happens. My last REO listing was listed for 325000, and the bank accepted an offer of 270,000. Ed Carboy
0 votes Thank Flag Link Thu Oct 2, 2008
You need to compare the home to other properties in the area. Find out what others like it have SOLD for. It does not so matter the asking price. You need to find what homes have sold for. Then make your offer. Remember that banks are not going to just give it away.Good luck
0 votes Thank Flag Link Thu Sep 25, 2008

You never know......you shouldn't consider any effort a wasted effort because if you keep you offer real, it could be accepted.

Here's a suggestion. Do some research on homes that have recently sold in the your target area. If you can identify several comps that justify your offer, it will help your cause. Be sure to include this information and a brief explanation with your offer.

Good luck,
0 votes Thank Flag Link Thu Sep 25, 2008

As I have indicated before, let's not be so concerned with the listing price and offering 70 to 80 percent of the listing price. Let's look at what the other comparable sales are in the neighborhood and base your offer on that. For example, the bank may accept your offer of "70 cents on the dollar" but what if that offer price is still more than other properties similar to it ? You would think you received a great deal, but in reality you did not. If the other properties are selling for much much more, well this may be a steal and you will need to offer close to full price or sometimes more.

I would suggest go get a good buyers agent to consult with. Further, as a previous pro mentioned, know that the foreclosed homes (bank owned or real estate owned) are typically banged up, difficult to get financing on, and are sold in as-is condition. So it is important to know what you may be getting involved with.

For more helpful hints, visit our website below and good luck !
0 votes Thank Flag Link Thu Sep 25, 2008
Please know that buying a foreclosure is not like buying any other home. Lenders don't respond to offers like a homeowner would, they don't typically do any repairs and there are many things that a building inspection might miss....like blockage in water lines. It is definately a buyer beware! Most Realtors don't want the hassle and liability.
Good luck!
0 votes Thank Flag Link Wed Sep 24, 2008
What is the current market value of the property? Perhaps your offer can be backed up with a market analysis of the property. If you just make an offer without knowing what the property is worth, you are basically going in blind. Perhaps your offer is actually ABOVE the market value, which would make it a bad investment.

Get a local Reator to help you out.

My office is in Willow Grove and I would be happy to help.
0 votes Thank Flag Link Wed Sep 24, 2008
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