Mist, Home Buyer in Pompano Beach, FL

Is it true that a foreclosure's listed price is not really negociable so you must offer the same or even a higher price?

Asked by Mist, Pompano Beach, FL Mon Mar 14, 2011

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Mist,

A lot of great answers already and it is not true that a bank foreclosure (also know as an REO) isn't negotiable. A bank will either obtain an appraisal or send out licensed real estate agents to do a BPO (Broker Price Opinion) to place a realistic market value on the property before putting it on the market. Most times they will put a price on the property that is very aggressive as it relates to other properties that have recently sold in the area.

Banks will place an aggressive list price in most cases as they want that property sold fast and often times there are multiple bids and the property will sell above the list price but that is not always the case. At times they have placed bad valuations on the property and it will take some time for the market to react after a price cut or multiple price cuts. It is still the law of supply and demand and you have to carefully evaluate each property on it's own merits. Somewhere there is an asset manager sitting at his desk making decisions and you will see banks cut prices every 30 days (in some cases every 15 days) on properties the market has not reacted to. Usually there are significant condition issues when you see this happen but not always. As an example, we have an REO under contract that was originally priced above $350,000 and my client is picking it up well over $100,000 less than that amount and the bank is picking up well over $6,000 in closing costs.

Your best bet is to find a professional Realtor® to help you on this journey and the very first step is certainly a clear description of what you are trying to accomplish and put together a "snapshot" of what your perfect home looks like and what areas to concentrate. Your lifestyle, work location, budget and a variety of other factors come into play.

A few recommendations I would make; I would tell you to not sign a buyer's broker agreement with anyone. This is a form an agent will use to tie you up and ensure any transaction you make will only be through them. Find an agent who is happy to perform their services with the knowledge that if they do not properly meet your expectations they will lose your business. Second, never call a listing agent about a property they have listed as their initial relationship with the seller will prevent you from working out the best deal. Finally, I would recommend that you interview at least three qualified agents to assist you and select one who you feel will have your best interests as their primary goal.

I work almost entirely as a buyers agent and would be honored to be on your interview list if you are interested in locating a true pro to make your housing dreams come true. I typically stay north of the Broward/Palm Beach County line but would also be happy to refer you to someone south of the border if that is the only area you are interested in. I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.


Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
3 votes Thank Flag Link Tue Mar 15, 2011
Who ever told you this clearly works for the banks. Everything is negotiable. I've been helping buyers purchase foreclosure properties for years and rarely have my clients paid asking price unless there were other bids on the property.

By the way rarelyu are foreclosures as good a deal as most buyers think they are. out of 10 foreclosures, 1-2 will be good deal,s 6-7 average deals at best afer you're done with all the reuqired reapirs/renovations and 1-2 are money pits. Buying foreclosures is inherantly risky and in today's market you are just as likely to get the best deal from a motivated Seller and not from purchasing a foreclosure.
2 votes Thank Flag Link Mon Apr 11, 2011
It depends on each individual situation, but in most cases all prices are negotiable.
1 vote Thank Flag Link Fri May 20, 2011
I just got a offer accepted yesterday on a bank owned home that was lower than the asking price. So I can assure you banks will accept less but there are several caveates in the process.

Ken Anderson
ApexOne Realty Inc
321-246-3190
ken@ken4u.com
http://www.apexonerealty.com
1 vote Thank Flag Link Thu May 19, 2011
The only true way to find out is to make an offer.
1 vote Thank Flag Link Thu May 19, 2011
I dont think that it is fair to "lump" and particular seller type into a profiled reaction. That is why it is always important to work with a professional so that you and he(she) can determine the real value of the property then determine how aggressively you will negotiate. I have seen banks that wont budge and others that moved more than they probably should have.
1 vote Thank Flag Link Tue May 17, 2011
Great question, the answer depends on the pricing strategy from the REO. As a buyer you have to acknowledge that if "you like it" so will other buyers and there are a lot of buyers out there. Banks have been pricing properties low on purpose, in order to create an auction environment. Your Realtor should be able to advise you with a realistic price to offer. Unless the property is in need of much repair, you will not be able to "steal" it.
1 vote Thank Flag Link Tue May 17, 2011
In most cases in our market (Palm Beach and Broward)yes cash buyers are abound making offers daily.

I would recomend also being preapproved also so that the bank takes your offer seriously, even if paying cash.
1 vote Thank Flag Link Mon May 16, 2011
Not in my experience. I recommend that you offer what the home is worth to you.

If that is less then list price, then that's what we offer. If it's a deal, and multiple offers are expected, offer up to the amount that is your 'drop dead' price. Hope this helps!
1 vote Thank Flag Link Sun May 15, 2011
No, that is not true. Every market is different, it is false to say arcoss the board all REO (Real Estate Owned) are priced below and you must over bid on them all, across the Unitied States. Every transaction is different, I suggest you find and work with a local agent or Realtor who can run comps and you will know what the house is "worth".
1 vote Thank Flag Link Sun May 15, 2011
Mist,

The answer to your question is "no. Though I am certain sellers and sellers agents wish they could disagree.

I have several points about price you may benefit by.

1) Price is always negotiable in a downward direction - if the seller is motivated enough to sell and there are no buyers at the price the seller thinks they should get.

2) Sellers often believe money they have recently spent should increase the price. Sometimes this is true, but often it is not. A required repair that only makes the house livable, does not command more money than all of the other homes with the same functionality.

3) As tough as it is, do not make buying an emotional decision, if you want a better deal than the seller is willing to accept, move on to the next home and come back when the seller has sat on their overpriced listing for a while. It may sell, but it may not. There are others out there with greater motivation and this is where you will find the bargain.

4) This is a buyers market, with patience you will find amazing buys.

5) Look for the diamond in the rough, ask your agent to show you several shop worn, overpriced listings, offer low and hold your price. There are 1000's of properties like this to choose from. With patience, you will get the bargain you are looking for.

If you would like to find a special buy on your next home, as always, I am very happy to be of assistance.

by Dana Casey, Realtor, 612-208-2087
Twin Cities, MN
http://www.danacasey.com
1 vote Thank Flag Link Wed Apr 20, 2011
In our area, you can buy a home for as little as $5,000. as a bank owned, even if it's listed for 30k. As with anything, all depends on location, competition, and resale. Your agent will be able to help you determine if it is worth the investment or not.
1 vote Thank Flag Link Wed Apr 20, 2011
where are you located in florida north south or in the middle?
reply by my email address please patricia goldsmith at:walpat54@att.net
Flag Thu Jul 23, 2015
Everything is negotiable. Bank owned properties included. Banks start below market and come down slowly - in small increments. The best thing you can do is decide the price at which it is feasible for you to own that property and make an offer accordingly. Then the negotiation begins.
1 vote Thank Flag Link Fri Apr 15, 2011
Get a professional agent who is knowledgeable about bank sales and they will guide you. Prices for foreclosures are indeed negotiable. Just be sure you have a very good idea of costs associated with fixing any damaged areas and the upgrades you need to have a great lifestyle.
1 vote Thank Flag Link Thu Apr 14, 2011
Hi Mist,

I bet you didn't expect so many answers to this question...but I think many people wonder. All aspects of a real estate transaction are negotiable and there are different theories in listing bank-owned homes. Some will price very agressively and low so as to get a bidding war going and others will price higher than they are willing to go.

What you need to do is find a real estate agent who you trust that can show you the comps in that area so you know the price you offer is correct. You do not want to over pay for any home right now....so be sure before you offer over asking that you truly do need to based on the comps.

Karen
1 vote Thank Flag Link Thu Apr 14, 2011
Mist:

I hope you are working with a local realtor as your buyers agent first and foremost. If you are, trust their judgement and advice. In my area, depending on the neighborhood and price range of the home determines the angle of approach I have with my buyers. Example, a 3/2 1600 sqft home in Lehigh Acres listed at $59,000 as an REO, and it is the only livable REO in area for that price I recommend offering 115% of asking price...Compare that with a 4/4 2800sqft home in gated community listed at $199,000, I recomend to my buyer's they offer $185,000. Bank jumped at it...oh by the way, on the lower priced home that we offer 115% of asking price.we were beat out by another buyer...LOL...

Here is a blog i wrote about Market Time and why Buyers should use that data...might be helpful to you

http://2000shortsales.blogspot.com/2011/03/why-average-days-…
1 vote Thank Flag Link Wed Mar 30, 2011
The asset manager in charge of all foreclosed properties, is the person in charge of deciding wether or not they take a specific price on a property they are selling. Of course other terms are considered besides price (i.e. cash or financing, closing date, etc.) however it is important to know that the answer to your question is "...yes - it is negotiable." The reason why is that what the lenders don't want you to know is that they have a specific scale of acceptability of price based on the number of days the property has been on the market. This scale usually follows specific predetermined guidelines, with exceptions for condition and location. So the longer a property has been on the market the more flexibility an asset manager has regarding accepting low offers. Typical is in the 1st 30 days of marketing they will not take anything lower than asking price +/- 2%. From 30-60 days on the market they are willing to take between 5-10% below asking price. And after 90-120 days it can be much higher (i.e. 15%+). Watch for price reductions from the realtor that is selling the property as this will effect the scale.
1 vote Thank Flag Link Wed Mar 30, 2011
HUD homes are usually 2 to 3% of list price, FreddieMac & FannieMae are between 5 to 8% of list price, and Bank Owned properties are between 5 to 12% of list price. However, additional parameters also affect these percentages such as "Days on Market", number of REOs (Foreclosures) within the neighborhood and surrounding area, economical stability of the area, and a few others. Get with a knowledgeable, local realtor (REO Certified) and have them peform a CMA of the immediate area and this will assist you in your purchase.
1 vote Thank Flag Link Thu Mar 24, 2011
Untrue.

That's sometimes the case, and sometimes not. But focus first on the value of the property. If the property is priced higher than its true value, then either offer lower or don't make an offer. If a property is priced lower than its true value, then offer whatever you want--most likely somewhere between the asking price and its true value. However, if a foreclosure has been on the market for months--even if its true value appears to be close to what's being asked--the market is telling you something: It's overpriced.

Further, banks will usually have a schedule of price reductions. For instance, a property may start out at $100,000. After 45 days, it may be reduced to $95,000. After another 45 days it may be reduced to $90,000. Suppose you see the house on day 44 when it's priced at $100,000. After 44 days--if there haven't been offers--then it may be overpriced . . . even without knowing that the price will be dropped by $5,000 the next day. A local Realtor who specializes in forclosures can provide more details. But banks drop prices on foreclosures all the time.

So: What you've heard is untrue.

Hope that helps.
1 vote Thank Flag Link Sun Mar 20, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Most often this is the case. Also be aware that when you (or your realtor) look up property on MLS it may show active status, but make sure you (or your realtor) call the listing agent to make sure it is infact available. Often times when you call, you will find out that there are multiple offers already submitted. In this case, depending on how much you want this property , you may want to offer the same or higher.

Sometimes it's a gamble...Give it your best shot! Good luck
1 vote Thank Flag Link Sun Mar 20, 2011
This depends on several things, including whether it is a Homepath home, VA Repo, what BPOs or appraisals came in at when it was listed, etc. There are MANY foreclosures where the price is completely negotiable, even on the ones where there isn't at much wiggle room on price. Finding an experienced agent should not be a problem, even from Canada. Best Wishes
1 vote Thank Flag Link Sat Mar 19, 2011
I'm in Canada, it's totally different here - much easier to find an agent but to get a referral to one in Florida is something else.

The ones I found were located in Miami or Hollywood - typical French Canadian locations. They are French speaking which is why a lot of French Candadian deal with them and why I only get references for them from out here. I don't want to buy something in those areas, I really want someone who knows Pompano Beach, Deerfield Beach and Boca Raton very well, specially the different neighbourhoods and condo associations in those cities.
1 vote Thank Flag Link Sat Mar 19, 2011
There are times when a property is under priced, to sell quickly and attract multiple offers, and there are times when it can be over priced, you need to work with a top 1% agent who knows the market and give you consultation on valuation and the best strategy to move forward.
Web Reference: http://www.johnkrol.net
1 vote Thank Flag Link Fri Mar 18, 2011
Dear Mist,

Foreclosures are priced at or below market vaule rates and they get multiple offers. Home Prices in my area are back to 2003 prices. Which by the way was pre-boom.

As a listing agent of REO's I can tell you buyers rush to the properties and I have yet to list one where I didn't end up with several offers on the table.

Ask yourself this if you were selling a home and you had 3 offers all for the same list price how do you know which one to go with and be fair?

This is what is happening to the banks and to be fair the only way is to give all the buyer a chance to present your best offer.

Plain and simple even if you offer $300 more than the list price, it will still be a great deal...

This is a great time to buy, if it wasn't then you would be the only offer on the table and can low ball your way to an accepted offer.

Best of luck,

Stephanie Leon
Web Reference: http://www.sleonrealtor.com
1 vote Thank Flag Link Tue Mar 15, 2011
Nothing is typical in a foreclosure. It depends on the market, on the agent, on the asset manager.

Your best resource is your realtor who can research comps for the property and show you information to help you in your decision making.

However, it is important to note that in foreclosures, it's possible the properties are priced less than market value because the property may have some damage (as in the case of disgruntled owners who trash the property in anger), or because there are no disclosures or warranties offered to the buyer.

If the market is competitive (good price, good location), and you anticipate multiple offers, then you have other ways to get your offer noticed. Cash is not always king. Sometimes, terms of the offer can beat a higher offer.

Strategize with your realtor on every property....no rules are the same.

Good luck!
1 vote Thank Flag Link Tue Mar 15, 2011
Dear Mist,

Foreclosures are priced at or below market vaule rates and they get multiple offers. We have not seen such low prices in years. It is a great time to buy.

Sincerely,

Susan Penn, Pa, SFR
2000 Main Street
Weston, FL 33326
954-557-5993
1 vote Thank Flag Link Mon Mar 14, 2011
That is not correct. The Bank will tend to Negotiate $3000.00 to $5000.00 if there is not Multiple Offers on the same Property. If there are Multiple Offers on the same Property they tend to ask for "Highest and Best" which drives the price up purly by demand created per the Buyers bidding.
0 votes Thank Flag Link Fri May 20, 2011
Prices are always negociable. However, in some areas, far and few in between, some home prices appear to have stabilized for the moment. In one case, a buyer asked for a lower price than the asking price and the bank ordered yet another BPO. The price came back higher than the sales price. The bank honored the original asking price. It doesn't hurt to ask, but it may cause some delay in purchasing and other buyers may have the opportunity to get the property. An agent can better advise depending on the property and the current market (based on comps).
0 votes Thank Flag Link Fri May 20, 2011
It depends on the present value. Use an expert, an experienced realtor to determine market value today. Then ask yourself, can I expect to buy this below its value? Not likely. Would you sell below value if the positions were reversed? Fact: the list price should be a bit under the present value. Is is always that way? No. But you need an expert to determine that.
0 votes Thank Flag Link Fri May 20, 2011
Foreclosures are negotiated by a "desk" person at the company who has a bottom line check list. In my experience you can negotiate with a bank but if you make an offer that is any less than 5-6% of the list price you are highly unlikely to get an acceptance and at times any response at all. If the bank decides to accept less for the property they will lower the price. Generally every 2-3 weeks you will see a price reduction on foreclosures.
0 votes Thank Flag Link Fri May 20, 2011
In this day and time, anything is possible. Some-times though when dealing with the bank it can take forever to get a response or they could just wait until several offers come in and pick the highest offer off the bat and not counter.

You also will have more leverage depending upon how strong of a candidate you are on paper when income and credit are evaluated.

Best of luck,
Derek
0 votes Thank Flag Link Thu May 19, 2011
Everything is negotiable but whether that approach will be successful in your market is another story. What is your agent telling you? Do you have an agent? This is the kind of advice that you get from an agent on the ground in your local market area. In my area, on average foreclosures are selling within 2% of their listed price. This is the kind of information your agent can give you.
0 votes Thank Flag Link Thu May 19, 2011
Everything is negotiable. In my experiences the bank will always negotiate price and terms. I’m sure you have heard a bank sells the home as is. That is what they want but they will fix some items or replace items from a home inspection. They generally will not do small items but I have seen them do larger items i.e. furnace, roof, electric. Don’t be afraid to ask. Best to have an experienced Real Estate agent who is representing you in the sale.
0 votes Thank Flag Link Thu May 19, 2011
All homes are negotiable. Just because the bank owns the home does not preclude the offer or acceptance from being lower than the listed price. Remember, however, that many banks have foreclosure specialists pricing their homes, so offers should be reasonable. Banks do not want to be in the home selling business, so make a reasonable offer based on comps and condition, and make sure you have a buyer's agent representing you.
0 votes Thank Flag Link Thu May 19, 2011
No, that is not true. You may make an offer lower than asking and then is up to the seller to evaluate it and determine if it falls within their range. Obviously, if there are other offers on the table you should know that if you really want the property you must offer either asking or above.
0 votes Thank Flag Link Thu May 19, 2011
Each seller is going to be different. Depending on how many offers are on the table if there are any, will have the biggest effect on the purchase price. I have had foreclosure sales that sold above list price and also have seen them go for well under list price. It also just comes down to making the offer at the 'right' time and some luck of course.
0 votes Thank Flag Link Wed May 18, 2011
Hi Mist,

Every property is different and must be evaluated to determine if the list price is at, below or above market.

Many asset managers for REO properties will rely on a possibly erroneously underpriced appraisal and then will accept the first offer that is within range of the list price. More competent asset managers will require a property be listed on the MLS for at least 7 days before accepting an offer. That way if a property was underpriced, the market will create multiple offers and it will sell above the list price.

If you're talking about a Short Sale then other rules apply.

Bottom line is in this market you absolutely need a competent Realtor at your side to help you navigate the market and get the best deal for your individual preferences.

Ifyou're not already working with a Realtor, I can refer you to an expert in your area.

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
http://www.SoldOnTampa.com
0 votes Thank Flag Link Mon May 16, 2011
I'd like to see as Bank REO manager accept a 50% off BPO price, unless there is major fix up, and keep his job. Bank REOs are negotiable, but no offers will even pass the waste basket unless they make sense, like within 20% of BPO price. I subscribe to a price foreclosure reporting service, and I track the Auction price, the asking price, if listed, and the Sold price. I can see the actual number the bank receives, and there sales made below asking, but no houses are given away at 50%


David Cooper. Las Vegas Foreclosure Investor in Bank Owned REOs with Huge Cash Flow. for Free daily list
email: davidcooper@lasvegaswinner.org or Call: +1-7024997037 not a real estate investor
0 votes Thank Flag Link Sun May 15, 2011
Mist,

Get yourself a CMA of recent home sales in the neighborhood, and submit your best offer that you feel comfortable with for the home.

Best of luck
0 votes Thank Flag Link Sun May 15, 2011
Everything is negotiable! That being said, not everything is negotiable at every moment in time. for a foreclosure, the bank's motivation changes over time - a home they are sitting on at a high price now might be one they sell much cheaper later. Get in the game - submit your offer!
0 votes Thank Flag Link Sun May 15, 2011
Everything is negotiable. If the foreclosure for a period of time - the price becomes much more negotiable. Keep in mind that foreclosures are AS-IS. The cleaner you keep the offer the better chance you have of it being accepted. If the home is new on the market - you will pay much closer to full price. The banks consider closing cost a concession. The bottom line is their net - but with so many foreclosures on the market there comes a point when they need to unload some inventory. You would be surprised as some of the ridiculous prices we have seen accepted...
0 votes Thank Flag Link Sun May 15, 2011
That is not true at all, all prices are negotiable. There is really no formula to what a bank will accept on a foreclosed property. Every bank is a little different, and it really comes down to finding and agent that will give you a clear view of what the comparable properties will justify in that area for your offering price. Then determine what you area willing to pay and submit the offer. Keep in mind some banks overprice their properties and are willing to sit on the market and slowly lower their price until it eventually sells several months later. Therefore be prepared for your offer, even if it is justifiable by the comps, may still be rejected. In a nutshell submit all offers, regardless of how far from the offering price it may be you might just snag a great deal!

"You miss 100% of all the shots you don't take"- Wayne Gretzky

Ryan Garza
Realtor®
Ryan@RyanGarza.com
http://www.RyanGarza.com
0 votes Thank Flag Link Sun May 15, 2011
The banks I deal with in Las Vegas have at least one and sometimes two BPO's (broker price opinion) where agents do a comparative market analysis and that is usally the price the bank will list the foreclosure house.

If an offer comes in a little under the asking, it would be considered. An offer from a TV Gura at 50% off would be thrown in the trash. If I make a below market offer, and don't hear back in a week, I will make another offer a little higher than the first.

David Cooper. Las Vegas Foreclosure Investor in Bank Owned REOs with Huge Cash Flow. for Free daily list
email: davidcooper@lasvegaswinner.org or Call: +1-7024997037 not a real estate investor
0 votes Thank Flag Link Sun May 15, 2011
That is a myth!!! Different banks use one of 3 marketing plans. All banks will assess what the house the is worth in todays market.

1. Most will then discount their asking price 10 to 20% off that assessed vale and list it for sale.
2. Some banks will list it at the current makret value (known as a retail value) for 30 days. It slows down teh rate of forecsoure sales sloing down their loses, after 30 days they will discount that price and continue discounting until it sells.
3. For properties in real bad condition, most are cash only and are priced for immediate cash sale, this is where you get the biggest deal but need to have the knowledge or money to make the repairs. You often get multiple offers and they do sell for more than the asking price.


For any bank owned property, you can not base your offer on the asking price, you need to assess what the house is worth as is in todays market and base your offer on that. you need to ask questions and use this information to assess if you should offer alot less, a little less or offer what they are asking or more. You need to ask if there are other offers already submitted.

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…


Please read my blog for a full list of tips and advice for buying bank owned homes.
Web Reference: http://ScottSellsNH.com
0 votes Thank Flag Link Sun May 15, 2011
A true foreclosure is usually a house up for auction and the starting bid is generally not negotiable. If you are referring to a bank owned property (which are often sold by real estate agents and listed as 'foreclosures'), then yes, the price is negotiable.
0 votes Thank Flag Link Sun May 15, 2011
Mist,
No and Yes, also there is a diffrence between Bank Owned and Short sale foreclosure's! If the property has been on the market for (2)days and the have (5)offer on the table, you have a higest and best notice in your hand. Then it all comes down to is this the house you have been searching for, if so,then you GO FOR IT!!
There is a saying" What is one man"s trash is another man's treasure"! On the other hand if its been on the market for 60 days to 180 days, then you offer a very to VERY low offer! Get some education for yourself to know the diffrence between Bank Owned and Short sale foreclosure's. Interview and use the Agent that understands the diffrence between Bank Owned & Short sale, also educate yourself by looking at enough properties to determine a good deal !! http://www.avoidcreditscams.com
0 votes Thank Flag Link Sat May 14, 2011
You can in fact get banks to accept less than the ask. normally it is what they want and they have a margin. This will depend on the bank and the negotiator for the bank. I have gotten them below ask. Short sales are a little different because you make and offer and then support the price you offered often the bank will alter even the BPO if the argument is sound..

Years ago HUD was authorized to accept 9% less than their "bottom" price. In the Central FL market we have enough competition that multiple offers will usually mean the price will exceed the ask. Pricing a home is so individual. While there are some guidelines you really need to evaluate each property.

All the best,
Ken Anderson
ApexOne Realty, Inc
http://www.apexonerealty.com
0 votes Thank Flag Link Wed Apr 20, 2011
It really depends on the market of the area you are buying in. In Las Vegas for instance if the home is listed at a good price there will often be a multiple offer situation. Often times banks will price the listings super cheap to drive up the amount of offers received. If this is the scenario you WOULD want to bid a little above list price (assuming this price is still below the comps.) to assure your offer is taken seriously.

If the property has no offers then I would submit an offer below the list price to see if they want to play ball.

The bottom line is if you like the home you should have your real estate agent run the comps on the home. From there find out what would be a good deal for you and your family. Take into account your exit strategy etc. Once you have all this in place have your agent see if there are other offers on the table. Often times with REO agents they have websites listing the properties , the status, and the number of offers (if any). Once you know the competition, set an amount and go for it. Regardless of whether they have other offers or not, NEVER go above your preplanned price.
0 votes Thank Flag Link Wed Apr 20, 2011
No that is not true. If you want to make an offer on a property - no matter whether it is financiailly distressed or not just have your Realtor write up your offer and present it to the listing agent. Negotiation is the art of the game today. If the property Comparable Market Analysis comes in at $180K then don't offer $100K. That is ridiculous. A Short sale means the bank is going to LOSE. They don't want to lose so they want as close to Market value as they can get. A Bank owned property means that the bank already lost money and they don't want to lose any more. So they also are going to want as close to market value as possible. If you make a ridiculous offer don't be surprised if no one counters. There are a lot of buyers out there looking for "deals." And the banks know this. Bank owned properties (foreclosures) don't last long. By the time the property is listed by the bank they know what it is worth. Generally there will still be room for negotiation.
0 votes Thank Flag Link Wed Apr 20, 2011
The difference in negotiating with a REO foreclosure is that you have a sophisticated, experienced advesery, who probably is handling 100's of negotiations with buyer's and know all the tricks of the trade. Unfortunately, some buyer's agents are not very skilled in the art of hard core negotiations and find themselves working at a disadvantage when it comes to bank REOs.

David Cooper Las Vegas Foreclosure Investor in Bank Owned REOs with Cash Flow email or call +1-7024997037 for FREE list. not a real estate agent
0 votes Thank Flag Link Tue Apr 19, 2011
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