I just had an offer rejected that was all cash and 10% over the asking price. The deal it turned out went to a buyer who had waived the right to an inspection. What this tells you is that the banks are looking for quick closings with the least amount of contingencies and possibilities for the buyer to back out. .
My recommendation to you is to work with a competent buyers agent who can help you analyze the market, help you write a good offer, and has closed a good amount of REO deals. You should also be looking at the history of the REOs that have closed in the past 6 months and compare the listing prices with the selling prices. Hopefully as you gain more insight into the market and learn how to structure your offer you'll get the deal you're looking for.
Private Banking - http://www.gtoptions.com/
Also Bank of America acknowledged long closings times of 120 days.
Bank of America is trying to stream line the process and have a approved sale price to eliminate the guess work out of what price will they accept from the start . This is different from now when they accept or reject offers on and individual basis. Meaning even if they previously accepted an offer and the buyer pulled out is no guarantee the will accept another offer at the same price
Constance Koopman, Realtor
I got pre-approved for the amount I want to borrow in advance, so I kind of lean towards making the cash offer. In a hypothetical situation, what would happen if I submit with cash offer and then be unable to get financing? Is there anything else I need to consider when making a cash offer based on the assumption that I still need to get a mortgage?
Another approach I've been thinking about is increasing the down payment. When comparing the offers, do banks that own foreclosed proparties actually look at the amount of down payment (5% in one offer vs 30% in another one)? Another words, is there any difference from bank standpoint between 2 offers for the same amount that only vary in amount of down payment and thus amout of mortgage? Or is it more like a binary option, meaning you either do cash offer or cash + financing, no matter how much you're planning on putting down?
Our recommendation is to explore all options and do as much research on local real estate as possible. Additionally, your position would be greatly improved with the support of an experienced real estate professional.
Consider attending open houses to both gather information on area homes and meet possible RE agents to support your efforts.
I purchased 2 foreclosures last year (March and December) and I offered 23% and 28% below asking price respectively and closed. Although I ended up waiting 3 months on the forst one and 6 months on the second one it was worth the wait.
The only thing that you need to ask yourself is, is this property worth more to someone else? If so then maybe that 600k is a good price if everything else around is still selling for 800k and higher.
You don't have anything to lose but time, since banks take forever to answer bids on foreclosures.