Home Buying in 55075>Question Details

Mila, Home Buyer in Saint Paul, MN

How likely is Fannie Mae to take a offer under asking price after a recent price drop?

Asked by Mila, Saint Paul, MN Thu Aug 4, 2011

I am considering offering 91% of the asking price on a home that has been on the market for 4 months. However it did recently take a price reduction.

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Tom Ott’s answer
It may be too much, too little or just right. I don't believe Fannie Mae or any other bank owned properties show any consistency in their pricing. And as most users of "rules of thumb" you may end up with broken thumbs. You need a strategic market evaluation to get a real sense of the value. You need to understand the terms that you are accepting the property with, a limited warranty deed no condition warranties and their onerous purchase agreements.
0 votes Thank Flag Link Wed Oct 26, 2011
It's a very vague question. However, it never hurts to make an offer. Many buyers think they can offer 20-25K below list on properties and act shocked when they lose the house. 91% is a valid offer, my guess is the bank will counter. In my experience EVERY single good home at a good price in the last couple months that I have had buyers put offers on have ALL gone into a multiple offer situation. Make your offer fast, submit your pre-approval, and give a decent earnest money check to show tha bank you are serious, and make sure your agent gets in ALL the paperwork. Then, be prepared to counter the offer or be prepared for a multiple offer situation after a price reduction. Most banks reply within 72 hours. If you don't here from your agent in three business days Call, Call, Call! Remember, you are most likely getting a deal at list price. If you love the home and think the price is right you might want to offer full list to avoid losing it. Ask your agent, all banks have different procedures and most agents should be familiar with them.
0 votes Thank Flag Link Fri Aug 5, 2011
Just a heads up.. The next person might be writing an offer of 92% OR MORE. If your willing to potentially miss out on this one, go in with this offer, it is a good starting point. My experience tells me that after a price drop, if you like it, some one else probably likes it too. Do your research on the comps. Every neighborhood in Saint Paul has a different market dynamic in terms of buyer demand. Be sure you have someone who knows what they are doing helping you out with this. And... don't forget to have some fun with it!
0 votes Thank Flag Link Thu Aug 4, 2011
From my past experience, Fannie Mae generally drops their prices about every 30 days. If you think your offer reflects the true value of the home, then you should certainly write the offer. The worst they will do is counter offer a higher amount. And if you're requesting a 60 day plus closing time, expect that they will also request a shorter closing period - as little as 21-45 days (depending on whether it's financed or an all cash deal). Unless your offer is significantly below the current listed price, they will seriously consider your offer.
0 votes Thank Flag Link Thu Aug 4, 2011
Before making an offer, review comps with your agent, see what the data suggests and make your determination; there really are no set standards on how much below/above list price one should offer....
0 votes Thank Flag Link Thu Aug 4, 2011
All things being equal you have a much better chance at 95% of asking price. The recent price reduction should not play too big of a role.
0 votes Thank Flag Link Thu Aug 4, 2011
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