Banks do their homework. It depends on market time, they might be more willing to part with a property if it has been on the market for a longer period of time compared to a property that was just listed. Banks have invested interest in the properties and they too want fair market value for property.

Wed Apr 30 2008, 20:56

This is hard to answer when I don't know the list price and haven't seen the property or judged the comparables. However, a first offer that exceeded 10% below the list price would probably be rejected. If this is the case, try going back at 10%. If you were better than 10%, try moving up 1-2% to a 8-9% discount from the list price for your second offer. Have patience and perserverence. In all my years in real estate, when I've had a buyer not get a home they offered on, they always have ended up with a better one in the long run. Best wishes.

Tue Apr 29 2008, 13:55

Many banks have BPOs done and base their decisions on what the BPO or Broker Price Opinion comes in at. Just because the bank owns the property doesn't mean they are going to "GIVE IT AWAY"....many times they are more willing to drop the listing price rather than negotiate a huge number under the list price. Some banks are willing to negotiate more than others....the only way to find out is to keep trying. I have seen some banks negotiate like crazy and when everyone walks away from the table they drop the price below what some of the past offers came in at. Unless you want to wait and possible be competing against other offers, you should really consider raising your offer price.

Percentages wise I have seen banks all over the place. Some accept 15-20% under list price, others keep it 5-10% under list price. If there are multiple offers, I am still seeing homes that sell over the list price....even in the current buyers market

Tue Apr 29 2008, 12:31

Bbqgal.....really hard to say without know more info or being intimate to the deal. What advice did your agent give you? I trust you had a agent representing you. 37k on a 150k listing is a whole lot lower than 37k on a 500k listing.

Thanks, Todd Norsted

Tue Apr 29 2008, 12:19

The bank is looking for a specific number. You and your agent should get together and go over the prices of homes in that area and determine what the bank will net. Bank owned properties are usually appraised by the bank prior to the bank taking over. Once it is appraised, the bank will certainly try to get the appraised value. How was your price determined. Since bank owned offers are sometimes not seen but once a week they usually look at what they will be netting. It is all about the price. The best offer will get it. News media has started this frenzy that you can buy below market value on everything ---- not so. They should be agents and see behind the scenes as to what the real facts are. Again, your agent should be helping you put in a good offer by checking the area for selling comparables, and if you really want the home then you will have to up your anny

Tue Apr 29 2008, 12:14

First, brainstorm with your agent to see what may be the most desirable to the bank. Second, if the price for the property is already a good one, offer as close as possible to that amount. No deal is a great deal unless it is complete, and if you want this home badly, offer to close early if possible. The banks usually want it off thier portfolio, but won't go down if they don't need to do so. Third, always get a home inspection to know what you are dealing with! It isn't a good deal if there is as much to put in as you spend in the first place.
Good Luck,
Rosellen Dollahite-Auburn Ca.

Tue Apr 29 2008, 12:12

It sounds like you are trying to purchase a foreclosure since your offer was rejected by a bank. In today's market the banks have so many foreclosures out there that they are trying to recoup as much money as possible. Since most of the foreclosures involve interest only loans or adjustable rate mortgages the principle borrowed has not been paid down. Banks in our area won't look at a contingent contract. Listed as "as is, where is" meaning that they are not warranting anything and will not pay for an inspection. An inspection is only to provide personal confort and give you an out if you find too many repairs are needed. So in short, how do you make your offer more attractive? Offer more money.

Tue Apr 29 2008, 12:10