This is tough, the bank has their own people. Normally I would suggest putting together a proposal for why you're offering at a certain price, they banks will not even receive that info (because they have predetermined paperwork that goes in a file). Call the listing agent make sure there are not any other offers on the table before you submit yours. From my experience anything lower then about 5% below asking price is rejected. You can try to push this a little bit.
I would say the lowest that you would be able to go (and be taken seriously) would be about $350k. You have two options submit an offer lower then that, and hope it's not rejected out right (sometimes they will simply ignore it) or wait for them to re-evaluate the price. If you really like the house, submit an offer, even if it's low. You don't ask you don't get.

Jason H. Gomes
Prudential NW Properties
Greater Portland Area
Cell: 503.608.8785
Desk: 503.350.7378

Hey There,

I actually think that I know what property you are referring too. Based on your information that they received an offer of 300K, the amount they paid at auction, time on the market, with no other offers on the table, i think that you should offer just higher then the other offer that was at 300K. Price is ultimately your call and should mirror what you are comfortable paying given the current situation and condition.

Let me know if you need a experienced buyers agent that is familiar with the area and has the REO negotiation skills.

Jesse Dill - Real Estate Broker
John L Scott - Market Center
855 NE 25th Ave
Hillsboro, OR 97124
Office: (503) 844-9800
Cell: (503) 969-3236

Web Site Links:

http://JohnLScott.com/JesseD
http://WelcomeHomeGroup.Net

Hi - sounds like you've already done some homework on this property and have taken some good steps towards determining a fair price. I list and sell bank owned properties and in most instances the banks are looking for a list price that will get them a sale within 30 days as-is. In today's market that can be a little difficult to calculate! The other factor with bank owned properties is that they will do a price reduction every 30 days...many times it's pretty substantial. If the home has been listed under 30 days - they may not consider that lowball $300,000 offer...after it's been listed for 30 days or more, they are more likely to give more consideration to a lessor offer. There many factors for your Realtor to consider when working on an offer and I would start with checking to see how long it's been listed.

One of the things I do to help determine an offering price for a buyer is to do a formal Broker Price Opinion. It's pretty close to the same thing as an appraisal, but done by Realtors and it is a report that the banks require their listing agents to do (in conjunction with a formal appraisal) to help them land at a starting list price. My buyer and I will spend quite a bit of time in a home and shoot photos of any issues we can see and then have a contractor give us some rough repair estimates. I'll pull comps of similar homes in great shape and then deduct the cost of our estimates, and then also pull a set of similar comps that seem to be in about the same condition and then compare my 2 lists to see if I'm coming out in the same ballpark. Another factor to look for are how many of the comps are bank owned or distressed/short sales and try to use those as much as possible - most areas around Portland are showing that our predominant market is the bank owned/distressed sales, so an appraiser will use those for your loan purposes.

Bottom line is that it all has to pencil out in numbers and the more info you can include with your offer to justify where you wrote the price - the more likely that the bank will give you serious consideration. Broker Price Opinion, photos, estimates of repairs - all will be excellent tools to help you land at a fair price, and all will be in your favor to present to the bank to help you get an acceptance.

If you aren't working with a Realtor - I'd be happy to help! If you are already working with a Realtor then best of luck with getting your offer accepted! Now's a great time to buy a home and get a good deal.

Kelly Gebler
Real Estate Broker & Mortgage Loan Officer
Keller Williams Realty & Sunset Mortgage Co.
Ph: 503-516-1637
Email: LetUsGuideYouHome@comcast.net

Mroyal;

Always offer what you feel the home is worth after tracking sales like you are doing. Banks can not just give homes away and are expected to try for a fair market value. Having said that they do respond to offers made within a reasonable range and with a straight forward closing proposal like 30 days without many contingencies.

If this was a short sale than you could expect a larger discount. If it really needs $75K in fix up I think you better keep looking and maybe keep an eye on this one. The bank should however know of your interest. If you would like I can prepare a really good CMA and represent you before the bank and agent. You need to hire a buyers representative anyway in this case. There will be no savings going through the listing broker and they are probably not supposed to represent you anyway as that is the case with many foreclosures.

Call me at 503-799-8383 and let's talk sales comparables and how I can assist you to save some money on this home. We offer some very nice services included with your representations as well.

Thanks for such a great question!

Regards;

Dirk T Knudsen
Re/Max Hall of Fame
Re/Max Metro Gold