I agree with most of the others so far, and would add the following:

In other markets in other parts of the country and in Denver a year ago, your strategy would probably be enough to be effective. If you're looking at homes above about $250K in Denver even now, it might still be fine.

If though you're looking at homes below $200K, then your strategy is probably not going to work anymore, and the simple reason is that there are ten of you for every home in that price range, so almost anywhere in our area now, these homes are selling at or above list price.

Remember that all the advice found in books and given by advisors offering general strategies needs to be adjusted based on time, location, recent events, etc.

Be careful if you're trying to do a first flip - or even if you're trying to buy a home for yourself. Like the others here, I will strongly suggest you find a local buyer agent to help you through this process. Nobody actually works for free, but our fees are normally paid at closing through the seller, and only if there's actually a sale, so there's usually no additional money out of your pocket paid directly to a buyer agent. As a result, it's pretty much risk free from your perspective.

That depends on:
1 The bank. Some are more willing to negotiate than others.
2 What comparable homes in the area have sold for recently. You can ask an agent to run some searches and analyze the results for you.
3 The bank will order an appraisal or BPO (broker price opinion) for the house when an offer is made. If the house appraises at significantly over the offer price, they may counter with a higher price. You can either accept their counter price or not.

Since the bank has already had one offer fail, they might be more willing to accept a lower offer. You never know until you try.

If you are not working with an agent at this time, I'd be happy to help you out. Give me a call or send an email. 303-861-9046 jo@joculbertson.com

Jo Culbertson, Broker/Owner, Landmark Realty LLC

If you are submitting an offer on a short sale - as a buyer you must be patient yet persistent. You may or may not get the home as I'm sure you're cognizant of already. If you've got the characteristics just mentioned, you're in a great position. Remember, all the bank can say is "no" and then you go on to the next great opportunity. There are plenty of them out there.

I think you should base a short sale bid on a percentage of the value. Some agents put the price extremely low just to get action, and bidding lower than that won't fly. Some agents price for market value, and then you should bid lower. Some agents price based on a percentage of the amount owed. Find out where the price came from before you develop a strategy. Your agent should be able to help you with that :-) .

The GENERAL answer is that an offer of 10% below asking price should work. The lenders have such a huge stockpile of homes passing through their loss mitigation departments. But I agree with the other responses here; when it comes to a particular home it depends. What's the condition, whats the competition? These are the reasons to enlist a real estate broker to assist you with buyer representation.

Good luck!
Bob

Depends, how much do you want this house and do you know you will be happy living there--the decision is entirely yours since none of us have a crystal ball to tell you with accuracy if the bank will accept or reject. What is your Realtor advising you to do and again is this the property for you.

Anna

Hi Hutchh,

Thanks for your question! Usually an offer 10% below list price should be acceptable to the bank. Whether it is a good emough offer to purchase the property depends on whether there is a higher offer. The bank will usually consider the highest offer on a short sale, regardless of the order that the offers came in.

To search foreclosure properties in Denver go to this link:

http://www.denvercoloradorealestatenow.com/page/94496/Forecl…

If you need help making an offer or have any questions, my services are free of charge and there is no obligation.

Best regards,

Ethan Besser
Realty Xpress
303-856-8980

Hutch-
If you are in the under $200 price range, it may not fly. If there are problems with the proeprty besides cosmetics (carpet, paint,cleaning appliances) then there will likely be quite a bit of cempetition on the property. if you WANT it...it is likely already way below market value, make sure you GET IT. If you can take it or leave it, then offer low...
Currently 69% of home sales are in this price range and are receiving mulitple offers....Having a Buyer's Agent as your advocate is your best resource for advising you.
Good luck!
Kimberly Ryan
303-523-8333

Could work
Chuck Strauss
Keller Williams DTC
720-318-7598
CStrauss@kw.com

Should work!
Lauren Gardiner