Ask your Realtor to do a Comparative Market Analysis (CMA) on the property using Sold comps within a 1 mile radius of the property (the closer, the better) that have sold within the last 3 months. (Don't rely on Zillow number as they are not accurate for the most part). The number your Realtor comes up with by doing a CMA is the market value of the property and that is what you should base your offer on. Keep in mind, the bank has already done either a Broker Price Opinion (similar to a CMA) or an Appraisal so the price will most likely need to be near the list price.
Over 40% of sales in the nation today are foreclosures or short sales and Idaho is number 7 in the nation for foreclosures....
65% of my sales have been foreclosures. I can tell you that you will not hurt anyone's feelings with a low offer, as the bank owned homes are serviced by asset managers that must follow a certain protocol....and that protocol entails working with the local comps...
Have your Realtor pull the comps in the area to see where you should be....if you don't have a Realtor, I'd be happy to help you navigate through the ups and downs of buying a distressed property and helping you negotiate!
At YOUR service!!
I agree with my colleagues, don't rely on Zillow. Get a comprehensive CMA and go over the home very thoroughly to see what works and what doesn't. Banks don't know much about the home so you can't rely on a disclosure.
Your agent will need to use this when negotiating with the bank to support whatever offer you decide to make.
Get a thorough inspection done as well. Banks won't want to make many repairs, so its good to anticipate what you can. Best of luck.
That's a great question...one that buyers ask frequently.
While Zillow states that a recent study found their 'Zestimates' are within 12% of the actual sale price (on the low end) they admit this figure can vary widely based on the city or location. In your area, a wide variety of homes and lots can make their estimates much less reliable. The range you mentioned here shows this.
I work with buyers in Orange County California, so I'm not familiar with your specific area. However, there some general principles that apply.
First, are you working with a local Realtor and have they provided you with accurate comparable sales information? Have you toured other homes in the area? Have you determined a value based on this information?
Second, the bank has done the same work and arrived at a value they are comfortable with. If your value and the banks are far apart, then the bank may have received a bad valuation. Often the bank's' asset manager is located out of area and relys on third parties to supply a valuation.
Third, consider the condition of the home and time on market. If the property needs significant repair work, the bank is more likely to accept a lower offer. The same is true if the home has been on the market for a longer time. Local market conditions play a role.
All of these factors are combined to determine a successful entry point in negotiations. No one rule applies. The bank can get stuck on a bad valuation. Do your homework and make an offer within 10 -15 percent of what you think fair market value is.