Home Buying in 90042>Question Details

joe C., Home Buyer in Los Angeles, CA

asking price is 219,000 for duplex on the market for 65 days.

Asked by joe C., Los Angeles, CA Wed Jul 22, 2009

bank owns this property. How low would i be able to make an offer to get accepted. Is there a percentage of 10 or 15 percent of asking price they would accept. Could i bid at 180,000 or would that be to low. This property is located in the los angeles area

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5
Hi Joe, there is no way in this market and price range that a property is going to go for under asking price. Sorry to be the bearer of bad news, but my job as an agent is to "keep it real" with you, the buyer.
0 votes Thank Flag Link Wed Sep 9, 2009
Hi Joe,

Being a listing agent for many reo properties, the price is usually already discounted a bit, especially if no repairs have been made.. I have submitted low offers and the bank rejected them and did not respond back to me and I'm the listing agent... We had to resubmit at a higher price for them to counter and we still didn't get it and .

If you really want the property and see the value in it then you should give it your best shot and be the first to get it in to the bank with a very clean offer and good terms with no contingencies and approved for a loan... This price range usually always has multiple offers.
0 votes Thank Flag Link Wed Jul 22, 2009
Dear Joe,
It's difficult to answer your question without knowing the actual property in question. In a market as hot as this one, I'ts unusual that the property is still on the market. We can assume that the offers have been too low, so your strategy of offering below asking is not a good one. Are you working with an agent? If not, you really need one now.
0 votes Thank Flag Link Wed Jul 22, 2009
Hey Joe,

It all depends on the fair market value, based on comps for the area and the condition of the property, among other things. There is no set percentage as to what banks will take under the asking price. Theses days, most foreclosures are being bid ABOVE the asking price, especially if they are priced agressively & below the fair market value. Your agent should be advising you as to whether that price would be a reasonable offer after reviewing comps in the area.. Hope this helps - good luck..

John Barry
Coldwell Banker Residential Brokerage
Sherman Oaks, CA
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
facebook: http://www.facebook.com/RealtorJB
Twitter: http://twitter.com/RealtorJB
0 votes Thank Flag Link Wed Jul 22, 2009
Joe, the question you have to ask yourself is: why would the bank want to give away an asset for less than it's worth? Would you? The bank is going to act in the best interest of the bank - PERIOD! They will obtain an appraisal on the property, know it's current market value and hold out for that sale price just as you would if your property were for sale. Your best bet is to obtain a broker price opinion for value then offer that price. Bear in mind most properties listed for sale as REO's by agents are listed UNDER MARKET already in order to induce an "auction mentality". Your approach to offering 10-15% less than asking price has no chance of being accepted in my opinion. Have a reputable agent do the homework for you and I think you will find the opposite is true - you must offer 10-15% MORE than the listed price in order to be competitive and have a chance that your offer will be accepted. Good luck!
Web Reference: http://www.AmeriMacRes.com
0 votes Thank Flag Link Wed Jul 22, 2009
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