Home Buying in 77584>Question Details

4 Seasons, Other/Just Looking in New Orleans, LA

I"m interested in a recent foreclosure in the range of 380,000 what should be my offer or range for initial offer to purchase or should I offer

Asked by 4 Seasons, New Orleans, LA Tue Mar 2, 2010

the max I can afford.

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Answers

9
You need to compare other similar properties and inspect the home with a friend that has experience in homebuilding. Make an offer that identifies the problems and cost to repair the home. This allows the bank to know that you are serious and prepares you to make a proper offer.
0 votes Thank Flag Link Thu May 3, 2012
There is really no "rule of thumb" on an offer you should make. It is somewhat of a loaded question as it really depends on the comparisons. If the home you are interested in is on the market with a Real Estate Company, then I recommend you get yourself a Buyers Agent to run an analysis for you to make sure you are in the right ball park for your offer. This has to be justified for your lending institution anyway if applicable.
Web Reference: http://www.donspera.com
0 votes Thank Flag Link Wed Dec 29, 2010
Greetings,

I am the broker for a local bank, I list all their foreclosures and I work with several other local banks. I know the foreclosure game pretty well. In my opinion for 380k you can buy multiple newly constructed foreclosed homes with no need for repair or you can get incomplete homes and finish them out. This has worked for many investors. Contact me if you are still in the market. lacey@larzclark.com or 832-865-7228
0 votes Thank Flag Link Thu May 13, 2010
It all depends on what the homes in the area have sold for. Most foreclosures require a bit of work and time to let the contract process play out. If this is being bought for investment purposes, make sure you will be able to get the rental amount needed to cover costs and ensure positive cash flow
Web Reference: http://www.ourfirstnest.com
0 votes Thank Flag Link Wed Mar 3, 2010
Here's the answer:

Get a Realtor to run a CMA on the property. Find out what it's worth. If it needs repairs that aren't reflected in the CMA, subtract the needed repair costs from the CMA. So you'll end up with what the home is worth.

Then, pay no more than the CMA. Note: I'm not saying OFFER no more. I'm saying PAY no more.

How to determine the initial offer: Take the LOWER of the value (as calculated above) and what you can afford. Offer less.

For example: Let's say the CMA comes back at $370,000. You can afford $380,000. The lower figure is $370,000. Offer something under $370,000. Maybe $355,000. Your Realtor can help guide your strategy on this.

Second example: Let's say the CMA comes back at $390,000. You can afford $380,000. The lower figure is $380,000. Offer $380,000 or less. (And pay no more than $380,000).

Again, within those parameters, your Realtor can suggest how low you might go.

Hope that helps.
0 votes Thank Flag Link Wed Mar 3, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
You offer a number right for you. One that you will be comfortable with if someone else bids higher and you don't go away wishing another $1000 would have made the difference. Bid low enough that you can cover repairs and even some unexpected repairs and still come out on top. If the house is worth $500,000, $380K or $390K might be a great deal. If the house is worth $300K and the lender got caught upside down $330K would not be appopriate.

You just have to get with your realtor and see what is appropriate for this situation. It's tough for us to tell from this end with only one of many numbers to consider.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Wed Mar 3, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
4 Seasons
Look at recently sold homes and then discuss with agent where to come in. I will tell you go in highest and best out the gate. Bank owned homes these days often do not give you a second chance. If they do, you can always stay with your offer. More often than not, today... theyt do not counter, they just accept one of the offers.

Good Luck!
0 votes Thank Flag Link Tue Mar 2, 2010
It depends on the market conditions in your area. Many foreclosures in my area are being priced just below market value in order to solicit multiple offers to drive the price up. You should consult a Realtor, get an accurate comparable study and then make your offer. Most Realtors in the area should be able to tell you about what the property should sell for. Then it is up to you to determine if it is worth that to you.
Dawn Langer
Realtor
Long Beach, CA
0 votes Thank Flag Link Tue Mar 2, 2010
You should offer what you and your agent think the house is worth...
0 votes Thank Flag Link Tue Mar 2, 2010
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