Home Buying in Oceanport>Question Details

Pat Parker, Home Buyer in Oceanport, NJ

can a buyer offer less than the asking price on a foreclosure?

Asked by Pat Parker, Oceanport, NJ Tue Dec 20, 2011

I am interested in a VA loan foreclosure. Can I offer less than the asking price? And will the bank decide quickly yes or no?

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12
Marco Gomez’s answer
You can definitely offer less, but it does no mean the bank will accept it, although they will generally respond within 72 hours.

Marco Gomez
The Goodlife Team
Keller Williams Landmark
Serving Queens, Brooklyn and Nassau in NY
0 votes Thank Flag Link Tue Jan 3, 2012
Pat,

Ok, wait. There are three types of distressed sales . . . short sale, foreclousre, REO (bank owned). Typically, you find the short sales and REO's on the MLS or sites like trulia and can acquire same through a Real Estate Agent. To my knowledge, if a property is actually in the foreclosure process, then the County Sheriff is involved and typically not Real Estate Agents. But note that there is a backlog of foreclosures.

This will require you to attend a sheriff's sale wherein you are up against the investors who come with cash in hand and a dollar amount can be decided at that time . . . it is like an auction. If you are interested in purchasing a true foreclosure that is currently up for sale, then I would suggest that you attend a County foreclosure auction and get acclaimated to the process and witness all the gurus in the hallway before you are allowed to enter the court room. It's an eye opening experience and one worth experiencing!

If you would like to chat, please do not hesitate to contact me @ 732.606.2931.

Sincerely,
Francesca Patrizio, Broker Sales Associate, ePro, SRES
Francesca@PatrizioRE.com
732.606.2931 (Direct 24/7)
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Sun Jan 1, 2012
Yes, a buyer can offer less than the asking price. The bottom line is how much is the house worth to you? Most bank owned properties sell for or above asking price, though. If you are unaware of market values, get yourself an agent who can show you what things are selling for. This will give you an idea of the market value of the house. Then it just becomes a matter of what you think the house is worth to you.
Work with an agent who is experienced/certified in short sales/foreclosures. Those agents are the best to negotiate for you, will know what questions to ask, and will also have an idea of how quickly the bank will respond to your offer. My experience is bank owned properties go quickly, so don't delay!
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Tue Dec 27, 2011
Can you? Yes. Should You? Depends on the Market Value. Have your agent so a CMA for you, which will come up with the current market value & give you some idea what to offer based on the properties worth.
The Marie Souza Team - Top Selling on Cape Cod
Cape Cod Real Estate Services
Phone: 508-790-2000
info@mariesouzateam.com
http://www.MarieSouzaTeam.com
0 votes Thank Flag Link Wed Dec 21, 2011
I have had plenty of success buying foreclosures at below the asking price, often considerably below. It depends upon how anxious the bank is to get rid of it and what success they have had so far. I make my offers for cash,; with no contingencies and emphasize that if they accept it, there WILL be a closing when they are ready. I only ask for clear title. I figure that a bank will never be insulted by a low offer. I make sure the listing agent tells them that i am a real estate professional and know what I will pay and what my margins are - and that I will walk away from any deal that does not work for me. I give a limited but reasonable time for acceptance and let them know if it is not responded to, that I will keep looking.

By the same token, I am not insulted if they refuse the offer. That's business. They usually counter, however. Without the non-contingent cash offer I am sure they would not be so quick to accept my price. Please be sure that if you do this, that you have the wherewithal to follow through with your commitment should they accept.

If you are buying for your own residence instead of an investment, you may not want to be as hard-nosed as I sound. But you can always SOUND that way, anyhow.
0 votes Thank Flag Link Wed Dec 21, 2011
Yes you can offer less, if the bank does not like it they will let you know. You need to put it in writing and wait for an answer. (It may take a while), You may want to put your reasons for the lower offer in writing. For example does the house need a new roof? Is it t priced to high? How many days has it been on the market? Brainstorm your reasons and include them in the contract. Others are correct when they say that the bank may just refuse your offer, but then again they may accept it or counter. It's a risk, but the decision is yours. Talk it over with your agent and then make your decision.
0 votes Thank Flag Link Wed Dec 21, 2011
You can certainly offer less. And no the banks normally are not the quickest to get an answer from. Some are better than others or have automated processes. But others just take their good old time
0 votes Thank Flag Link Wed Dec 21, 2011
Pat,
You have received many EXCELLENT responses.
I would restate my collegues comments in the manner, "Do you want to buy this house or just make an offer?"
Should your goal be to buy, your offer must conform to the expectation of the bank owner. You can write up a 'shot in the dark' offer or consult a real estate professional who may have access to historical data regarding the bank, area values, evaluation methods and the process required to purchase. Some situations are not receptive to 'do overs."

Get a pro on your side.
0 votes Thank Flag Link Wed Dec 21, 2011
Yes, you can offer whatever you wish...That being said...I suggest you have a local buyer's agent help you formulate a great initial offer price. Good Luck.
0 votes Thank Flag Link Tue Dec 20, 2011
Yes, you certainly can offer less than asking. Depending on the bank they may answer as early as 24 hours or take up to 5 days. If there are no other offers on the table, there is a good chance you may get your price or something close to it.

Best of luck,

Oggi Kashi
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to error and omission, and not warranted.
0 votes Thank Flag Link Tue Dec 20, 2011
Typically, I'd say possibly, but, I'd have to ask (1) is this a propoerty listed on the MLS or (2) are you going purely through the sherffi's office?

Having said that, the best offer will be the "cash offer" w/no contingencies, A VA loan is a contingency and if it is 100% financincing with a ridiculous seller's concession of say 10k (which I recently received on my own home), then I'd say your chances are slim as if this a a "great deal" u are up against investors who have the cash and don't mess around.

All the best to you.

Sincerely,
Francesca Patrizio, Broker Sales Associate, ePro, SRES
Francesca@PatrizioRE.com
732.606.2931
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Tue Dec 20, 2011
If you are currently not working with a professional consider the idea; work with an agent of your own, and review comps, recently sold similar properties in the immediate area, see what the data suggests as to a fair offer, and go from there. Keep in mind that if a property is listed on target, or slightly below multiple offers may occur.
0 votes Thank Flag Link Tue Dec 20, 2011
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