In most cases, just like in a short sale, the bank is hoping to net around 85% of the appraised value. Meaning that after they pay closing costs, realtor commissions, etc and factor in some of their carrying costs, they will want to be walking away with around 85% of that value. As Tim said below, have your Realtor do a market analysis on the home to come up with what the current market value SHOULD be regardless of what the listing price is. From there I would start out by offering about 75% of that. They may take it and they may ignore it, but you don't know unless you ask. You can always work your way up in price until they bite. However, if it's already priced well under what your Realtor says the value is, there's a good chance they will hold out for close to the full asking price and there's also a good chance that they will be getting multiple bids in a short amount of time. So act quickly! Let me know if you need any assistance.

Tim Ireland
RE/MAX All Properties - New Lenox http://www.TimIreland.com

Pmp,

Along with the previous good advice, have your Realtor do a CMA of comparable properties in the area to give you some documentation when making an offer.

Have a Great Evening!

Tim
tfitzgerald@c21proteam.com
815-353-1901

Foreclosed Property - Bank Owned?

Is it a Cash Offer? (Cash Offers are usually stronger than Offers Contingent upon Financing).

Obviously the Bank or Owner will look at their Appraisal or BPO to make their decision.
Their decision will also depend on how many, if any, other offers they may have received,
and how motivated they are to get it off their Books.


If you are buying a Foreclosure, be sure to get a Real Estate Attorney.
You don't want any Title Problems, After-the-Fact Judgments,
or Right of Redemption periods that you are unaware of.
A Real Estate Attorney can advise you on those matters.

You will [most likely] buy it "As Is", so have it inspected by a Contractor or Qualified Home Inspector.

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Best wishes to you,
Fred
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