Holly,

This is difficult to tell but let's take it from a different perspective, how much is the home worth to you? Our recommendation is to have you agent do some work and provide you with an account of all comps in the same general location as the subject home.

These homes should assist you in developinf a price range that will represents today's real estate market. Keep in mind you should expect to decrease your offer based on both present condition as well as unforseeable problems(they may or may not exist but a discount should be considered by you to cover such problems)

Our recommendation is to forget about what the bank will accept and approach it from the standpoint of what the home is worth to you as a good buy.

Good luck,
The "Eckler Team"
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363

Holly,
That depends on the conditions that are prevalent on that property. The best advice is to make an offer you are comfortable with and have a number that you are willing to accept. Remember to make your offer with the end in mind.
Banks will negotiate but also remember that there may be other offers on the table.
Hope this helps.
Good luck
Rick.

Make an offer. That's the best way to find out how motivated a seller (bank) is to get the property out of their portfolio.

Hi Holly
Erica Pittman-Gaynor of Keller Williams here.
It all depends on the bank, the situation that led up to the Foreclosure and what kind of shape the home is in. If there has not been much activity on an REO then you're more likely to get a bigger reduction in accepted price. The last thing the bank wants is to hold on to more properties. As stated in other answers, the really good deals that are in 'habitable' condition and priced really well are generating multiple offers and being snatched up quickly. The trick is to be pre-qualified and ready to move on a dime, if you want to find one of the really good 'deals'. First step is to sit down with an agent and a lender and have a conversation. If you come away from the meeting feeling comfortable and clear on things then you can move forward in working with those professionals to help you take advantage of the this huge "opportunity market".
I would be more than happy to set up a meeting with you, myself and my trusted lender. I use her for my personal finances, family and friends. She is outstanding. This would be a very informative meeting that is no cost to you.
Call or email me if you're interested.
Have a great evening and a safe Halloween:)

Erica Pittman-Gaynor
(831818-4123
erica@ericapittman.com
SantaCruzRealEstateByTheBay.com

I sell a lot of property for financial institutions as the listing agent, so I have a good deal of insight into the process. I can say this with great certainty - the answer to your question is, "it depends." There are a lot of variables. Before a property is listed, the seller will order 1 or 2 appraisals, and also have 1-3 BPOs (Broker Price Opinions) done on the property, all with the idea of determining a price at which the property will sell for quickly, as-is, in its current condition, in the current market. Generally speaking, when a property first comes on the market, the REO seller is going to want to get pretty close to asking price when they initially accept the offer. While all properties are sold on a strictly AS-IS basis, many times you can negotiate repairs and/or closing cost credits after you are already in escrow, within reason. The longer a property sits on the market without a significant price reduction, though, the greater the likelihood the seller is going to accept a lower offer. Also, it is good to know that the seller almost always requires that the listing agent submit a monthly report every 30 days after the property is first listed, and usually this will result in a price reduction. The REO sellers price their homes to sell - but if you see a property that has been on the market over 2-3 months, especially one that has not had a big price reduction, that seller is more likely to be pretty open to serious negotiation. I have negotiated a lot of these deals this year, if you'd like my help, please feel free to contact me, the link to my web site is below. Thanks, and good luck!

Hi Holly Hansen, just had to say it, cute name! I just completed an REO that went great! The trick is in
knowing who you are dealing with, which bank lender, what listing agent etc. There are such a range of
skills right now as Realtors adapt technically and emotionally to this market. You can get caught flat footed
if you have a timid, uninformed or lazy real estate agent. "Know they enemy"....(the bank!) We were
successful in lowering the price and then got a few goodies too. Would love to share but not on line.
Call me and I'll give the details and a reference! I love these challenges and maybe I'm the right person to help? Terry Ballantyne Broker/Owner Indigo Beach Properties

Hi Holly,
I agree with Glen, that a local agent can help you determine if the home is priced fairly compared to similar homes, or if it has been deliberately underpriced to generate multiple offers over asking price. A couple of other negotiating factors include the condition of the property, and your personal financial situation. For example, the amount of down payment you are able to make, the likelihood of your getting a loan, and how quickly you can close the transaction may be factors that are more important than price for some banks selling REOs. If you don't already have an agent you trust, I'd be happy to help you; my name is M.C. Dwyer, 831.419-9759.

Holly, it really depends. Your realtor should be able to provide you with recent comps so you know what you are paying compared to recent sales. Hopefully its a decent amount under, but hopefully you are also getting a great home that you really like. If the bank has the prie too low, then they will get multiple offers. This seems to happen quite a bit these days, so the question may be how much over should I pay. Once again you really need to know what the comps are selling for to know how to proceed. This is a great reason why hiring a buyers broker makes such good sense. If you aren't working with an agent check in with me as I would love to help you out.

Glen Mitchell
831-588-8958