Banks have guidelines of what they will accept.
They are not human.
Think of it as a percentage basis.
Then understand the finances. Cash is king.
Then there is the terms, when it comes to REO's ask for nothing pay for everything close quickly 14 days and get a property.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992
Keep in mind, if you plan to get a loan from a conventional lender, then your lender will based the amount lent on the appraisal--regardless of the amount of your offer. Let's say you offered $120K for a property that appraised for $100K, and your lender will lend at 90% LTV of the appraisal. You'd have to put $30K down; yet, you'd only have tp put $10K down had you offered $100K.
If the property has been sitting there a while, the bank might be more negotiable on the price and willing to accept a lower offer. However, from my experience if the bank just lowered a listing price, they won't be as willing to negotiate.
Best of luck!
I would recommend that you make your best offer and have the necessary documents to present to the bank. If you need help, please feel free to contact me at Capitis Real Estate 760-969-3558. Thanks, Keith
Realty Executives Palm Springs
It's best to ignore the asking price all together and have your Realtor who has a sense of the local market conditions do some research as to the current value of the home and then offer at least that much as soon as you can. This amount may be more or less than the asking price.
Best of luck to you in your new home.
If you are going to low ball a bid send the photos of the needed repair along with the estimate of repairs with your offer. Remember, a bathroom that is in good condition but is outdated is not in need of repair. Iâ€™m talking holes in the walls, cracks in stucco, roof needs replacement etc. By sending these items with the offer, you give the listing agent some ammo to try and sell your offer to the bank.
In this market however it is tough to low-ball a property. The banks are still holding their Shadow Inventory so inventory is low and many homes are getting multiple offers. Remember, if you offer too high the home will not appraise for the offer price and you will need to make up the difference between the appraised value and the offer price. The bank wont loan on a home if the value is below the offer price.
Good luck and be smart. There are deals to be had if you are patient and your REALTOR is on top of the inventory.