You can offer whatever you want on a property. You won't hurt anyones feelings and you just might get it!
Some Bank Owned properties may sell for much less than 80% of asking price.
You never know until you try. In this market, I recommend low balling everything at first attempt. Sellers should simply be flattered there is interest, hope they can negotiate a deal, and understand that it's just an initial offer, no matter what an offer comes in at, in this market.
Good luck and happy selling!
Bill K Bill@Cashiers.com
It does depend on the property. .. How long has it been on the market? How much does the bank have tied up in it? Is the bank ready to â€œdump itâ€? If it has been on the market for awhile and has not sold I would think the bank would be happy to consider most offers. So I would say, yes, make the offer at 80 to 85% of asking price. Let me know how I can help!
Broker Price Opinion (BPO) - Banks hire agents to do price comparisons of what homes are selling or sold for in that area. As the property sits on the market, the listing price eventually drops. When offering 80-85 % of the listing price, you may get a counter offer, they may sit on it or you may not get a response at all. If the property just came on the market, low ball offers usually don't work. Just watch until the price drops to a level you are thrilled about then give them your highest and best offer. Dan Betz Live Oak Real Estate- Specializing in Bank Owned Properties 910 231 4923
The point is that if the home is priced incorrectly, then offer what is fair. If the home is priced fairly to begin with, then test them.
Human Beings are involved.
Sometimes the LISTING PRICE is set in relation to the loss the Bank is incurring; and you and I do not know those figures.
Usually the Bank has done a BPO through a Realtor, and they determined the Market Value of the House. They took into consideration the repairs needed to bring it up to par.
And sometimes, the price is intentionally set LOW to attract Multiple Offers and create a bidding war.
We don't know where we are until we do an anlysis:
You will need a Buyer's Agent to do this intelligently: Have them do a CMA to judge where the LISTING PRICE is at and where you want to be with your OFFER.
It would be a waste of time to make a LOW-BALL offer, and if you offer too high (because you love it and see hidden value,) you will just run into the Appraisal.
A Buyer's Agent costs you nothing; the bank is paying, and you need that representation.
Good luck and may God bless