If I were asking this question, I'd put a lot more value in the answers from Phoenix / Coolidge agents.

Nothing against those from Ohio, Texas, California and Oregon that have answered, but real estate is local. What happens in San Diego really doesn't matter to someone looking in Coolidge, Arizona. I would be surprised if the fine folks across the country even know where Coolidge, AZ is...

As Paul mentions, presentation is critical. If your agent merely submits the offer, without supporting documentation as to WHY that price is appropriate, the bank is liable to just dismiss it. It's probable that whoever reviews your offer will have little to no clue about what the Phoenix area market is *really* like.

If you are prepared to have your offer rejected (many banks won't even counter what is in their opinion a low offer) and you and your agent think you can provide data to support that offer, then go for it. Keep in mind that many foreclosed homes in this area receive multiple offers and someone may "outbid" you.

There is also more to an offer than just price. Other terms and conditions come into consideration as well -- your financing, closing date, and strength as a buyer will all be considered. There is much more to structuring an offer than price. Work with a good agent experienced in submitting foreclosure offers.

And remember, the worst thing a bank can do is say "no thanks". There are PLENTY of homes to choose from. Don't get emotionally attached to this home.

Hi Miguel,

Getting a low bid offer accepted requires access to information. And it appears that you are "armed" with information that could warrant a low bid offer. Just make certain that you present your offer in a way that gives reasons for your low offer, such as a cover letter indicating a concern with the appraised value.

You are best to have these discussions with your agent. However, if you are not working with an experienced, full-time Buyer's Agent Realtor, then get one. The seller has an agent representing them and so should you. Be careful of listing/seller's agents who "moonlight" as Buyer's Agents. You will be best served by working with an experienced, full-time Buyer's Agent who exclusively represents buyers.

But armed with the information you have presented to me, it appears that a low bid offer is warranted. Just make certain that you present it in the correct way.

-----
PAUL WELDEN
Buyer's Agent Realtor
HomeSmart
480-241-0081

Miguel, Nothing ventured, nothing gained......You might want to look through the Bank databases to see if there are properties in your area you are not aware of and see the asking prices for comparables.
This site will provide you links to the Bank and Gov. Databases of properties for sale.....
http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp

You might also want to read thru this to see if it might influence your decision....
http://www.fhfa.gov/webfiles/1282/4q08hpi.pdf
From this site which has a lot of housing/mortgage information.
http://www.fhfa.gov/
Good luck, Dunes

Hi Miguel,
Lynn911 is correct that you should be asking your agent this question. Every market is different.
In the San Diego market you only really get one shot. If you really like the house you need to come in strong.
The bank know what the home is worth. But your agent should be able to tell you what homes are selling.
In San Diego homes under $300,000 are quick sellers and it is a very competitive market here.
Once you go over that price in San Diego (North County) every community is different with the demand.
Really look at what the homes in the area are selling for and put you offer in based on that.
Bigger the down - the better!

Your buyers agent is best resource on successful submit an offer.

Bank is well aware of market value, with library of pictures.

Foreclosures and short sales you may only have "one shot" submit an offer. Best make it your best offer. You could be bidding against other home buyers.

In some instances with our buyers we offer more than list price. Many tips and tricks secure winning bid on a foreclosure

Dallas Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
– Lynn A. Crosby

Miguel

The most important information is the value the company holding the current title shows. Sometimes they are willing to look at offers and then they will hold them until they receive better offers. I would write up an offer and see what the mortgage hold says.