Home Buying in Sturgis>Question Details

Terri Schmitt, Home Buyer in Michigan

if a home is a REO property, will the bank ever accept a bid that is lower than the asking price

Asked by Terri Schmitt, Michigan Wed Apr 25, 2012

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3
Stephen Connolly’s answer
Yes they will, unless there are multiple offers which in this market is common place & then it is highest and best. Short sales commonly accept lower offers in this market as well and sometimes have multiple offers. The owner will look at the offers and should only accept one offer which is forwarded to the bank for further consideration. Best Regards.
0 votes Thank Flag Link Wed Apr 25, 2012
The LISTING PRICE is not set-in-stone,
and in fact, may be a number picked totally out of the air.

Some Sellers like to pick a high number and say that someone will come along and pay the price.
Others believe that a low price will attract multiple offers.

Some buyers believe that if they offer a low-ball price that the Bank will counter with what they will tollerate. WRONG!

Trying to hit a happy median between what the bank will accept and what the Appraisal will be is sometimes difficult.

Just know that a LOW BALL offer will not work, not any more!
0 votes Thank Flag Link Wed Apr 25, 2012
Sure they do, it is very common that they do. Short sales are a bit different where the bank often wants more than list price, but a REO bank owned property is more like a regular owned home where the bank lists at a price they will accept and often they accept less -- not much less. Some people think, incorrectly, that they will accept 20-50% less which is laughable.
0 votes Thank Flag Link Wed Apr 25, 2012
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