Home Buying in Coeur D Alene>Question Details

Km03, Home Buyer in Coeur D Alene, ID

What is too low to offer on a bank ownded foreclosure? List is 469K and zillow range is 110K-303K?

Asked by Km03, Coeur D Alene, ID Sun Jun 26, 2011

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Enlist the help of a full time agent with experience with foreclosures. As others have stated they will do a CMA and guide you through the process. It will probably help you to go out with the agent one afternoon and tour like and type properties in the area before you make an offer ( 10-12 ) if extensive repairs are needed get a general contractor or two to attend the showing with you so will have some idea of approximate repair cost. Good luck
1 vote Thank Flag Link Mon Jun 27, 2011
Hi Km03,

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.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Sun Jun 26, 2011
Hi there...

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!!
0 votes Thank Flag Link Fri Jul 1, 2011
Km03,
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.
0 votes Thank Flag Link Sun Jun 26, 2011
Home Buyer,

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.

Good luck.
0 votes Thank Flag Link Sun Jun 26, 2011
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