Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
Please, feel free to contact me today in regards to assisting you and your real estate needs.
Keller Williams Realty
3xUS Army Vet./ Real Estate Consultant
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Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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I hope you are having a great afternoon. The quick simple answer is that you can offer any amount you want. The rest of the answer is you will want an agent to pull together market data for you so that you can see what the market says a reasonable offer is on the property. New carpet and paint in an REO are great but that does not command a premium above market value. The REO agent is hired by the bank to help sell the property and maximize their return in the minimum time. I suggest if you do not already have your own agent get one and make sure that they clearly understand your goals and are in agreement with what you want. Remember when you are buying a home you do not pay for the realtor the seller does, so you only have up side if you hire a realtor. I hope this information helps. If you have additional questions please feel free to contact me with no obligation at all. Good luck to you!
Some banks will price higher and systemically lower the price every 14 days. Your below schedule offer will be rejected. And yes, you may indeed observe the actual sold price to be lower that your offer! The most common occurrence is the home sells at 12% above what a indecisive buyer is comfortable paying. These buyers see great homes purchased by others.
Some banks will list below market value to get this real estate out of inventor in 30 days. Your low offer may not prevail in a bidding environment. You really need to have a strategy. A successful strategy will not have you making offers at the top of your ability to pay or obtain financing.
Unless you have someone to give you a clue regarding the bank/investor pattern....you will be flailing about blindly.
Most banks won't accept an offer not presented by a real estate professional. So, exactly what does your real estate professional advise?
If you are not working with an Realtor, I would be happy to help you through the process. It is a good idea to have a Realtor represent you with negotiations, contract, etc....
Give me a call, text, or email.
Patricia Choice Realtor
Fadal-Buchanan and Associates
You can offer whatever you want. However, if you want your offer to be accepted, you should offer at least current market value. Have your Realtor do a Comparative Market Analysis (CMA) on the property using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3 months. This will give you current market value and this is what you should base your offer on - not necessarily on list price.
If you do not have an agent working with you I would be glad to help you find a good one. Best of luck in your home purchase.
You will need a realtor to represent you and there is no cost to you for my help.