Question Details

Happyjerseyf…, Home Buyer in New Jersey

How low will a bank owned property go?!?

Asked by Happyjerseyfam, New Jersey Sat Mar 5, 2011

When a bank owns a property, how firm is the list price? Will they typically negotiate...and how low might they go? Thanks!!

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Answers

8
Happy,

I've been told that 20% under list is the very bottom line.
But there are caveats to that. Boy, are there. Banks use
Realtors ... typically, who comp the listing to find market value and then subtract an amount the agent
believes will be the cost of any repairs the property needs. Banks aren't in the property management
business, but they also hate to lose money. Don't we all?

I should also note that banks expect to get offers closer to list price on homes they are selling in popular areas and they can get it.

Good Luck,

Marita Topmiller
317-513-4652
1 vote Thank Flag Link Sat Mar 5, 2011
Very true, Phil...we could easily let it drive us nuts! I was just asking about a ballpark range...would they even consider something lower? From the sounds of it, quite possibly, if it is on the market for long enough. Thanks, everyone, for your input!
0 votes Thank Flag Link Sun Mar 6, 2011
I have found length of time on the market determines the amount the bank will drop.New listings or listings in a popular area the banks seem to stick very close to the listing price.However if the home is in a less desirable area and after sometime on the market the banks seem to be open about any offers that come in.Banks don't want to loose any more money then they have to so they will sit on a home waiting for a better offer but only for so long.The only thing you can do is write or submit an offer that you are comfortable with and see what happens.Always do a comparison of near by sales and listings so that you have something to back up the offer you have submitted.
0 votes Thank Flag Link Sun Mar 6, 2011
Good Morning Happy;
If we said there's a 6% spread would you try 6.25% ? Maybe 7%? And if you tried 7% and got the home would you think to yourself that you should have tried 8% ? Or 9%?
It will drive you nuts if you let it.
Find out what comparable sales are and make what you think is a reasonable offer.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sun Mar 6, 2011
will you believe in SanJose, CA they will overbid the listing by 20K-50K (not all listing ofcourse) . You will have to do some research on sold properties vs listing in the area you plan to bid to get a feel for it.

ps: For Phoenix area, I heard lately that HUD AssetManagers are sending out words that they will not look at any thing less than 94%(offered) / 88% (COE) of listing. Any confirmation from local agents ?
0 votes Thank Flag Link Sat Mar 5, 2011
There are no set standards as to how much below list price to offer on any listing. In order to determine a fair price, review comps with your agent--recently sold similar properties in the immediate area, then make a determination--if the property is priced on target for today's market or slightly below, multiple offers may occur; your agent can best advise.
0 votes Thank Flag Link Sat Mar 5, 2011
Lenders do know the value of the property. Each home stands alone when submitting any sales offer. Confer to your buyers agent who can answer all your questions

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Mar 5, 2011
Depends on how long it has been on the market. The banks aren't in love with their houses and they would like to move them at a steady pace. If it has been on the market a while they are a little more apt to negotiate. If it is a new listing they may wait before they drop their pcices.
0 votes Thank Flag Link Sat Mar 5, 2011
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