Home Buying in 92108>Question Details

Jeane, Other/Just Looking in 91914

Is the foreclosure price that's listed in your site the final asking price by the bank or can it be lowered?

Asked by Jeane, 91914 Sat May 10, 2008

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5
Jeane,
If you have a Realtor that specializes in finding the Bank Owned listings that have been on the market the longest period of time, you can probably get a better bargain. The MLS system allows a Realtor/agent to send you the newest listings of the type of property and location you are interested in.
I think the problem is that many people are looking for bargains, so there are lots of customers receiving notices of these "new" bank owned homes from their agents. This situation creates the multiple offers that Roberta talked about and competition also usually creates a higher price for the property.
By finding the longest listed properties (ones that may be off the radar screen so to speak), you might just find a bargain. I always recommend knowing the numbers in the area you are interested in ( median/average list and sale prices, time on market, months of inventory etc.) This information is available at http://www.sandicor.com/statistics.html . I can refer a Realtor foreclosure specialist if you need one. I also have a cover sheet I developed to submit with your offer and will forward it to you if you want it. It is in the "word" format so you can modify to suit your particular situation.
1 vote Thank Flag Link Sun May 11, 2008
It all depends. But, generally--everything in this market is negotiable. Just like any other regular sale, the list price is not the price--especially not now. Banks typically lower the list price every 30 days it sits on the market. Big suggestion: As a buyer, especially if you are looking at bank owned properties--get a buyers agent, one that will represent you. It does not cost you anything. If you need help finding or making offers on REO properties. Feel free to contact me.
Alison Bell
619-384-6997
http://www.abellre.com
0 votes Thank Flag Link Tue May 13, 2008
You may be tired of the answer "It depends..." but that really applies. So many factors to consider:
1. How long has it been on the market
2. If the price was reduced before, what was the original price, and how often has it been reduced since?
3. What do the comps in the area show?

One of my clients insisted on a very lowball offer on an REO even though there were two other offers submitted at the same time. We were countered, but my client refused to budge. Although the terms of our offer were strongest (30% down), the bank chose another buyer who bid $10K higher than our offer, but was $20K less than list price. It would have been a great buy at $730K for a home that less than two years ago sold for $1.25M.

Now, we're in counter offer stage on another property, competing with three other bidders. The bank wants full price.

We're also experiencing a more rapid movement among REO properties that are aggressively priced wherein there are --- GASP! ---- multiple offers!

Find yourself an aggressive and resourceful REALTOR who is very knowledgeable in the area where you choose to buy and is experienced with REOs. You'll be glad you did. If you need assistance in finding such a REALTOR, let me know and I'll be happy to refer someone to you.

Pacita
510 748 1148 office
Pacita@PacitaRealtor.com
0 votes Thank Flag Link Sun May 11, 2008
Hi there Jeane, all of these properties are available and accept offers an they do not have to be the listed price.. However its wise to do a little more investigation and work with an agent who is familiar with how the banks operate. The price is what the bank will accept but it could be higher if there are multiple offers.
On the flipside it can be lower too. It really depends on a varierty of factors. If you can find out more by working with an experienced agent. Do not be afraid of making offers, all they can say is no

Hope this helps
Michael
Realtor
First Team Real Estate
michael-barron@sbcglobal.net
0 votes Thank Flag Link Sun May 11, 2008
Jeane,

All listings are open to offers, and I would not be afraid to make a lower offer or ask for closing cost assistance. First, though, it might be wise to take the "temperature" of the listing (or have your agent do that for you) to see what buyer activity is swirling around the home.

Often, foreclosed properties in San Diego will be listed far below market value and multiple offers will drive the price back up to market range. That can be frustrating for both buyers and agents.

Whether there is lots of activity or none, I would encourage you to offer what makes sense to you. This is the market buyers have been waiting for and everything is aligned in your favor (see article below).

All good wishes!

Roberta Murphy
760-402-9101
Villa Sotheby's International Realty
0 votes Thank Flag Link Sat May 10, 2008
Roberta Murp…, Real Estate Pro in Carlsbad, CA
MVP'08
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