Home Buying in Arlington>Question Details

Jannylynn54, Renter in Grand Prairie, TX

IF I am looking at REO property (new carpet/painted) listed by real estate with a price do I have to purchase it for that price or can I go lower?

Asked by Jannylynn54, Grand Prairie, TX Thu Jun 28, 2012

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LISTING PRICE
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 “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” 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.
1 vote Thank Flag Link Thu Jun 28, 2012
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0 votes Thank Flag Link Mon Jul 9, 2012
Each property stands alone when a Realtor is preparing your sales offer.

Contact my office today where I can show you many amazing homes work with your family specifications.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

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0 votes Thank Flag Link Thu Jun 28, 2012
Hi
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!

John Straub
Keller Williams
817-729-4281
john@dfwfamilyrealty.com
http://www.dfwfamilyrealty.info
0 votes Thank Flag Link Thu Jun 28, 2012
This is where a real estate professional will be invaluable.
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?
0 votes Thank Flag Link Thu Jun 28, 2012
Yes, you can offer lower than the list price. Your Realtor can help you determine a price that works for you. Your Realtor will pull the comparable sold homes in the area. And will probably be able to subtract the amount of the repairs, or ask for an allowance from the Seller. And repeating what others have advised, the Seller can accept or reject, or re-counter your offer.

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
Direct 817-825-0074
Email pdchoicerealtor@att.net
0 votes Thank Flag Link Thu Jun 28, 2012
Yes you can offer anything but they do not have to accept it. Your Realtor shoUld be able to advise you. If you don't have an agent give us a call.
Thanks
Kim Sullivan 817-797-4706
Shawn Jackson 817-521-0125
The Michael Group
0 votes Thank Flag Link Thu Jun 28, 2012
Hi Jannylynn54,

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.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Jun 28, 2012
You can go lower but I would suggest that you have your agent review other solds in the area and the sales price vs listed price for the last 6 months. The really nice homes are many times going for full price and we would hate for you to miss the perfect home over the possibilty of shooting for a few dollars less than anopther buyer offers.

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.

Bruce Erickson
0 votes Thank Flag Link Thu Jun 28, 2012
You can offer anything you like! But if your serious about purchasing you will want to know a few things first. Give me a call I would be happy to explain the process to you.
You will need a realtor to represent you and there is no cost to you for my help.

Angela Garcia
Keller Williams
817-253-9270
0 votes Thank Flag Link Thu Jun 28, 2012
You can make an offer deducting the amount of the improvements which will then be considered by the seller and accepted or rejected based on their internal criteria.
0 votes Thank Flag Link Thu Jun 28, 2012
You can always offer less, or more, and the seller can always say yes or no.
0 votes Thank Flag Link Thu Jun 28, 2012
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