will sell at above asking price. Bedside, the banks will list at market value price ( based on a professional appraisal) anyway.
Best advice I can give you: make your HIGHEST & BEST offer with the largest escrow funds you can from the get go; this way, if you lose out to a higher offer you will need kick yourself, because had you know, you were willing to pay the higher price.......
You just need to present your offer from a position of strength with a Pre-Approval Letter and an Escrow Letter for as much as possible, even if you donâ€™t plan to put that much down on the loan, at least the bank can see you have it if needed to close!
As a Real Estate Investor and owner of a Mortgage Company who is still standing after the past 8 yrs who has been involved with thousands of offers over the years, here is what Iâ€™d doâ€¦
Example: $400,000 list price on the foreclosure
Iâ€™d do a 95% NO PMI purchase loan, but Iâ€™d submit an Escrow Letter showing 20% (if you have it) at the $400, (if you are worried offering less wonâ€™t work)
Iâ€™d send my offer at a 95% LTV conventional loan with the Escrow letter and Pre Approval letter thru one of my Realtor Partners who would give me a Buyerâ€™s Agent Credit of up to $8,000 to pay my closing costs!
BTW- My realtor partners offer these kinds of Buyerâ€™s Agents Credits for my buyer Referrals to them.
Click here to read why: http://www.trulia.com/blog/steve_31/2012/05/why_why_would_a_
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Nicole Marks Mason, Realtor
That totally depends on the property so it is imperative you are dealing with an agent who can properly advise you on the metrics surrounding that particular deal. You will see properties that sell at, or below, list price and those that sell far above list price with multiple offers. Do your due diligence and offer what you feel the property is worth to you.
The very best of luck to you and I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
We also looked at another foreclosed home which was listed at $184,000 and we placed a bid of $175,000. I was not told when I made an offer on that home that we needed to go above the asking price. I am guessing since my realtor already knows that 180,000 is my max.
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
If your objective is to buy the property, then you want to make all the correct steps.
Good luck and may God bless