Because this is Fannie Mae owned, if it's a new listing it is not available to non-owner occupants so you will have an advantage.
Also if the house is eligible for a regular HomePath (not just a Renovation HomePath) mortgage you can buy it with only 3% down and no PMI and will not have to pay for an appraisal.
If you are getting downpayment assistance as a first time homebuyer through the Florida Bond Program then you cannot use HomePath financing but must use a VA, USDA or FHA (not an FHA 203k fixer upper mortgage, though) mortgage.
You will have protection against overpaying if you have an FHA, USDA, VA or conventional mortgage because your lender will require an appraisal.
In the event the appraisal comes in below your offer price, it is VERY likely the Fannie Mae asset manager will allow the sale price to be reduced to the appraisal value.
As you have seen, the suggestion is to offer more than list price, but in my experience that has not always guaranteed that my buyer's offers get accepted. There is a lot more that goes into an offer than just the offer price, such as loan type, downpayment, the possible request for seller contribution towards closing costs, time frame for closing. When the bank's asset manager recieves an offer/multiple offers, they will look to see the strenghth of the overall offer, and amazing but true having a cash offer does not always guarantee that it will be accepted. Keep in mind that despite all the news, there are quite a few buyers out in the market looking for homes, some are investors but many are just home buyers such as yourself, and all of you are competing for the limited new inventory coming on the market. Make sure that any offer you present, is as strong as possible, but not necessarily over list as it may no be worth it. Just because a property is a bank REO does not mean it is a bargain, you still want to get information on the most recent closed sales to make the proper offer. Remember you lender will be sending an appraiser out to do an appraisal on the property and it needs to come in for the offer amount you place. Good luck with your home search. If you have any questions, please feel free to contact me.
As you have already read offering the list price does not guarantee your getting the property, even if you are the first to offer. Well-priced foreclosures usually attract multiple offers, and in most cases end up selling above list price. If you see the property has been listed for over a month with no accepted offers (that may have fallen through) then maybe it will sell for less than the list price. Otherwise, consider offering above list price. See what the status is of your offer as you may want to increase the amount if you consider the property a good deal. Contact me if you need any help or have any more questions.
Thanks and good luck!
Jose I. Gonzalez 305-992-8624 firstname.lastname@example.org
On Fannie Mae, if they have multiple offers your agent will be sent a form for her and you to sign acknowledging you are aware there are multilple offers and you will have an opportunity to increase your offer.
I would suggest, if the house is still a bargain, you should offer a little more than asking price to ensure you get the house.
Also Fannie Mae offers a HomePath Renovation mortgage that will allow you to buy with only 3% down and also include repairs or upgrades to the property by a licensed contractor after closing. Very few lenders do the Fannie Mae HomePath but one of my clients had success with Regions Bank, contact the loan officer in Tampa and he can help you:
13904 N Dale Mabry Suite 302
Tampa, Fl. 33618
Direct: 813 960-8215
Cell: 727 458-2583
Fax: 813 960-5397
305 705 9105