It all depends on the property and how long it has been on the market and how many offers are in on the property. The truth is all the REO's or Bank Owned Properties are priced very aggressively, they usually get multiple offers. I reccomend going over in price in most cases. Do you want the home or not and yes by going over in price its still a great deal for the buyer...

Mon Jun 2 2008, 12:45

I agree with "Myke" below that giving you an answer with no other information is folley. The rest of his answer is why Myke needs a good Realtor. I've seen properties which are bank owned or an REO go for $100,000 over the original list price. Many of my first timers, hearing all about the great "Buyer's Market" out there are getting very frustrated when they see a nice home priced at their pre-approved price point only to find it sells with 10 offers for thousands over their price. We've also had buyers find properties which Myke rightly states will NEVER qualify not only for an FHA loan but ANY LOAN!! I've heard agents groaning about how they presentd a full price offer with a 20% down, 80% loan only to get rejected. The property, NOT THE BUYER, would never qualify for the loan. Also, full price means nothing in the Seller's market which is the REO. Couple this with a savvy Assett Manager who holds back his reponse until the offers stacks up, getting folks in to bidding wars.., well, you've got one heckuva time!
So NO--I can't say it IS or IS NOT reasonable to offer that price. If a friend came to you and asked YOU this question how would you respond? To hear me "live" tune in to my weekly radio show on KSRO, 1350Am, "The Real Estate Hour", Sundays, 9 to 10am and visit my blog below. Thanks!! Good luck!

Sat May 31 2008, 12:26

Sure - but if you love it, is it worth losing for what equates to a couple hundred a month?

Let that answer be your guide. If it is deal shopping go for it - another opportunity will likely show up in this market if you don't get it.

Sat May 24 2008, 15:17

if you look at the answers here - it illustrates perfectly why it is best to go with an REO expert, and not a typical agent.

Pricing REO property has to do with many more factors then simply "look at the comps". Far more so then i'm even going to get into here. Most agents are simply ill-equipped to handle these transactions.
Have you looked at the public records? do you know what the bank is owed on the property? how long it's been on the market, how many other properties the bank is holding in that area, how many other REOs there are in that area, what the estimated cost of repairs are - are you using a loan such as FHA which will be difficult to get approval if there are repairs (meaning you're ruled out from purchasing in the bank's eyes), are there leins against the property?
These are only a few of the factors that go into determining whether or not the property you're looking at, is even worth looking at - let alone what you should offer on it.
Seeing people just throw random garbage out and saying "oh yea- that's a reasonable offer" when they know none of these factors - again, shows how ill-equipped the average "pro" is at handling these transactions.

Thu May 22 2008, 13:07

Yes, I do believe that is reasonable, but it really depends on the property and how much you want it!

Thu May 22 2008, 13:03

have you been inside the house yet or are you making this offer based on the asking price and drive by? I see there are only 2 houses in 95403 that are listed at $299 and both are short sales. Are you looking at the one with the 4bedroom or the one with 3bedrooms? Contact me off list if its the 4bedroom because I have some information that could be of value to your decision making on this purchase.

Mario Bertacco, Broker
SoCo Real Estate, Inc
800-564-SOLD
Mario@SoCoRealEstate.com

Mon May 19 2008, 19:13

It depends on comparable sales. What are you comparing it to?
What is the assessed value. DId you get an appraisal? Talk to the neighbors?
What is the bank/mortgage balance?

Mon May 19 2008, 18:03