Home Buying in McKinney>Question Details

Finley, Both Buyer and Seller in McKinney, TX

If they are asking $440,000 on a lender owned property, what is a reasonable low offer?

Asked by Finley, McKinney, TX Thu Mar 4, 2010

This isn't the only foreclosure in the neighborhood and the neighborhood isn't built out yet. It is a resale and I'm not sure what is too low to offer.

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Answers

9
There is no right answer.

Put yourself in the shoes of the property manager who holds the REO and offer him what makes sense.

If it turns out that the manager can't make that happen, you'll hear back and you can adjust accordingly. Since every property has its own characteristics and history, no one can give you advice without studying the property first. Even so, it's your call what to offer.
1 vote Thank Flag Link Fri Mar 5, 2010
Have your agent run the comparative sales for the last 30-90 days only. Now, run them for the last six months. Is the average sale higher or lower? Offer accordingly. Parts of McKinney have been improving and other parts are still saturated. Keep in mind that a bank is like any other seller. They are going to run a BPO (broker price opinion) when they take a contract on that property, and they will likely counter the offer if you aren't up to fair market value. Even if there are half a dozen foreclosures in the area, our region was not hit with foreclosures in the same volume that many regions of our country have been. This isn't a free-for-all. We've got a mix of regular resale, new homes, and distressed sales in every city and town in our region. The comps don't lie. We've got some of the best Realtors in Texas based in Collin County, and the $250k-650k homes are the bread-and-butter of our business. Partner with a good one, visit the property together, create a list of 'issues' with the house (chances are the bank has never seen it), and take current comps into account when drafting the offer. That list of issues needs to be turned into a repair budget. And, you need to focus on that very closely. Is the foreclosure still a 'deal' after the repairs are done? If not, go find a different house. Are you up for those repairs? If not, go find another house. Don't be dead-set on a foreclosure - view the available homes in that area and judge each one on it's own merits.
Ronda
0 votes Thank Flag Link Sat Mar 6, 2010
I remember seeing that home last summer among a few other foreclosures in the neighborhood. At this point, you have nothing to lose since banks don't look at offers with emotions like a homeowner. If you want to low ball it around 370K I don't think they'll reject it, but be prepared with a counter offer.

It will take some time for that neighborhood to recover from all the foreclosures.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Fri Mar 5, 2010
Considering the house has been on the market for over 120 day's, and from looking at the comparables in the same neighborhood I would go with somewhere in the range of 420's. It also depends on how bad you want the house if its not a must have, make a reasonable offer and all the can say is no. But the first thing I would do is see what condition the property is in after sitting vacant for so long. If you need any more information or would like to view the property contact me through my web page.

Best Regards,


Bret Cox
0 votes Thank Flag Link Fri Mar 5, 2010
It could be $500k or $300k, it depends on the current market value. The majority of bank-owned listings in Tampa Bay sell above the asking price because they're already significantly below market.

Don't let the asking price fool you. It could be too higher or too low.

By now you've probably seen 20-30 other similar properties with your Realtor so you should have a good idea of value. Of course, you also know that you should ask your Realtor for recent sales in the same neighborhood to help you determine what you want to offer. Also if the house has been on the market more than 30 days then it's absolutely overpriced--especially with the imminent deadline for the $8k and $6,500 IRS Tax rebates.

Good luck!
0 votes Thank Flag Link Thu Mar 4, 2010
Hi Finley,

The other agents have given you great advice. There is no magic number for any lender. Each situation is different so the best you can do is arm yourself with an agent who knows the area and can provide you with market data and negotiate on your behalf.

I'm going to assume you are considering the "Recent construction, executive estate home on 1-acre lot previously listed at $789k". Location Location Location. The location of this property is an even greater factor than most other homes, and location is always the biggest factor in the value of any property. If you intend to live in this house yourself, you better like solitude for the next few years. If you intend to flip it, then you need to know the market value, not just what the seller may take for it. This home has been on the market for a couple of years and hasn't sold for various other prices as low as $465,000. After location, the next factor is condition. After going through foreclosure, at least once, and sitting vacant since it was built, what condition is this property in.

If you would like more information on this area and this property, please contact me.
Make it a great day!

Patrick Jackson
Realtor, ABR, E-Pro, GRI
469-450-8315
http://www.CommittedService.com
0 votes Thank Flag Link Thu Mar 4, 2010
There are no standards as to percentages off--do keep in mind the lenders are looking to get as much money back as possible--you need to be aware of recently sold similar properties in the immediate area, factor in repairs, extensive or cosmetic--review the data and make a determination as to a fair offer--is the property listed on target or slightly below today's market--if so multiple offers could come into play--your agent can best advise you.
0 votes Thank Flag Link Thu Mar 4, 2010
Finley,

Contrary to media reports, banks are not selling inventory for pennies on the dollar so you'll need a good understanding of market value for this property. We take things like condition and the length of time on the market for this and other available properties into consideration too. If you need assistance I'd be glad to help. Feel free to contact me directly at 469-450-1326 or andrea.brooks@kw.com We're offer listing discounts to our buying clients through April 30th too!

Best regards,

Andrea Brooks
Keller Williams
0 votes Thank Flag Link Thu Mar 4, 2010
Finley there is no set amount to offer lower than asn asking price, you need to figure out what the property is worth in todays market. you dont know if the asking price is at market value, or way below market value already or listed way above market value. You can do a simple search or have a buyer broker assist you. Make sure you do any inspections prior to making an offer as most sales are as is. good luck with your offer.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Mar 4, 2010
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