Congratulations! Enjoy your new property!!

banks are smart, they got you to pay more.

Just to update u all my offer was accepted at $80k thank u all for your input, one thing is for sure, bank are irrational.

I particularly liked Kary's comment about how the bank gets cash regardless. Although liquid funds genearlly helps close a sale quicker, teh banks are not drivin like a homeowner.... especially a distressed one. The comment about not using emotions is a key factor when dealing with banks. Obviously the bank behind the scenes is not going to take less than 85K, and I would suspect they are well below assessed or market value at that price. Everyone wants a deal, but sometimes the deal is there without "negotiating" a lower price. My advice is to pay $85k if you want the home and move on.

All the best!
Jim

We can only guess why the bank won't negotiate a lower sales price-I suspect that they opted to list at their "bottom line", based on how much is outstanding on the property. Know that the Realtor is their representative; they give their professional opinions to the bank and then follow the instruction of their bank client. I think that you need to determine if it worth losing the property over $8,000. Just as the bank if being pragmatic in their "bottom line", you have the opportunity to be pragmatic in evaluating the subjective value of the property.

Well, I think most of the things needed to be said has already been said here in the other answers. Banks don't deal with things emotionally, and this one may have calculated that this is their bottom price, at least until a certain date when they might again choose to reduce if they have had no offers. It does not always benefit the bank, but they often deal with offers rather methodically by not worrying about losing the good buyer. You are up to a decision of making a full offer of $85,000. if that makes sense to you, or waiting it out to see in case they sell it to somebody else, or maybe later would be willing to look at lower offer from you. If this home seems to have value, then you might lose out by waiting.
In many cases the bank does not give the agent too much power in affecting their decisions either, so agents opinions may not make a difference. But every bank may have their own way to deal with things. Sorry that this one is making it so difficult for you. It is not uncommon.

Mei

Listing history doesn't matter. The listing agent obviously convinced the bank to reduce the price to their bottom line. Trying to always get a "better deal" is a common problem with investors. Evaluate this investment against alternative properies available to you for $85,000. I'll bet there aren't any. The list price is of no significance. You should be investing for the long term. In 5 years you probably won't be able to buy the lot this home sits on for $85,000. I like the advice you received on the first response. Just step up and buy it if it makes sense. Why should you care what a bunch of agents who know nothing about this home think about it's value? That's a silly proposition for a smart investor.

Unless there's something seriously wrong with the property, cash doesn't mean a thing. They'll get cash regardless of whether you finance or not.

I once had a bank not even counter an offer, and then reduce the price to within $5,000 of our offer the next day. Banks are not rational. Many of them do a horrible job marketing their properties.

Have you checked the public sale records to see how much of a hit the bank has to take on it? By looking at recorded documents on record, you can probably figure out how much they have already had to forgive. It could be the agent advising them to stay firm or it could be their asset manager or it could be that they just aren't that desperate. It could be that there is already another offer in the system that is higher and no one has informed you of that. In some areas, banks are continuing to solicit offers even after one has been "accepted". Banks will sometimes try and play by different rules than what we are accustomed to in real estate transactions.

There is no point beating your head against the wall with offers. Find out who the listing agent is and ask them or have your agent ask them. Find out if there has been an appraisal. Listing agents want to sell the house and are usually very good about explaining the situation on a foreclosure so that you can make an offer that will be accepted. At the end of the day, you may have to cough up their asking price if you really want the house. Just because it's a foreclosure, doesn't mean they are obligated to take a lower offer.

Good luck!
Meredith Laws
Windermere Real Estate / Anacortes Properties

Looks like they will only take $85K. If you want the house just offer that and be done with it.