I think it also depends on how much you want the home. If you really wanted the home, I would suggest structuring your offer in a way that gives you more of a chance at actually getting a counter or acceptance from the bank.
I am the first to try to negotiate however if after running comps, your offer of 160-170k is still too low, I would consider either moving on to the next home or putting in a more serious offer.
Your Castle Real Estate
(720) 988 5952
It is hard for them to know the true value of the home at this point, but if it is on the market at $210, then will probably assume it is worth more than $170.
If the property has terrible condition issues it may go for a low-ball simply because it is less desirable to a buyer.
If you really like the property and it is in great shape...I would offer a normal fair price.
They will just reject your offer it is not within a range of the recent BPO
Sandy Harrington CRS ABR E-Pro
Also note that Homepath works with asset managers that have done their homework as well; i.e., most likely theyâ€™ve had a broker price opinion (BPO) completed on the property. With that said, Homepath is most likely offering the property at market value. You can have your real estate agent confirm if the price is reasonable and determine your best offer from the comparative market analsis(which Iâ€™d be happy to provide to you). I utilize a lender blog that provides great information on Fannie Mae properties â€“ Hereâ€™s information I found there: â€œFannie Mae offers a loan program called HomePath that does not require an appraisal. Itâ€™s for their REO (foreclosed) properties. Here are some of the highlights of the loans:
-- No appraisal required
-- Only 3% down payment
-- No mortgage insurance required
Source: http://themortgageexperts.blogspot.com/search?q=homepath (Feb. 2010)
I would think that anything would be of interest, if it has had all the issues you mentioned! "Low ball" is a starting point and a commmunication starter. If you have come up with the offer price based on recently sold comps in area, then you are on the right track. Mention the irregularities in the listing when you/Realtor, presents offer. It might be all you need to show sincere interest and get offer considered /countered and taken seriously.
If this was a HUD home I wouldn't submit your offer, because I know it will be rejected. On a Fannie home I'm not sure, but my guess is it would be the same. Please come back and let us know what happened.
Especially when you throw money at her.
The answer is; probably NO. Every one that I have dealt with lately, just ask us to resubmit our "Highest and Best" offer.
It would be nice if they came back with a number, and we could Accept or Reject, but that's not the way it works. They want to maintain CONTROL.
If there are multiple offers you may have to go higher or walk away from it.
The Property Taxes should be based on the LAST selling price of the Property: If it sold in 2003 for $450,000 and now it is going for $200,000, then the Taxes should be based on the new selling price. It would vary depending upon your local Assessor's Office. You'll have to check with them, or go visit your Title Company.
Good luck and may God bless