Market Conditions in Tampa>Question Details

Walter Dubois, Home Buyer in Tampa, FL

I am trying to buy a homepath home through their website for forclosures. Should I offer list price or less. What percentage of asking?

Asked by Walter Dubois, Tampa, FL Sat Mar 24, 2012

usually sell for in tampa lake egypt leto area

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14
Walter -

Hi - there is no exact percentage of list price to offer price. The bank has many factors that determines what the value of the property is. The biggest factor in their equation is time. The longer on the market, the lower an offer price they may accept.

When I have buyers I do a market analysis and then determine what "issues" the bank may have in selling the property. Some factors are type of buyers in the area, deferred maintenance on the property, and willingness of the bank/asset manager to make repairs for financing. The more options for financing the higher the price. However the banks are getting pretty good at reducing the prices on property so that the sale price to list price is usually 90% or higher. Of course as agents we are always at the mercy of what the buyer can afford and you work on getting them a property in their price range by showing the listing agent why your buyer deserves the house for much less than list price. Some reo agents will really try to get the asset manager to see the benefits of taking your buyer even if their offer is below market and they are an owner occupant.

Leto/Egypt Lake area's current list price/sale price ratios range from 83%-110%. Contact me directly if you have any other questions.
2 votes Thank Flag Link Sun Mar 25, 2012
Sometimes the list price is accurate, and other times it is too high.

If it is too low, the market will bid it up with multiple offers. But if the bank got bad BPOs or a rushed appraisal, they could end up with it listed too high to start.

The problem with the bpos is that they are often a drive by photo, and then the county records are pulled up. The comps are found that justify the tax valuation, and no one is in there to know that the condition is bad and the value is actually a lot less than what you would think from the outside.

Those are the times when you see REO properties on the market for extended periods and numerous price reductions.

If they hit the market priced right in our area, they are gone with multiple bids.

All the Best,

Jim Sweat, ABR, CRS, GRI, CDPE, e-PRO, ILHM
Realtor
Sandals Realty
http://www.ExplainShortSales.com
941-306-7384
Team@JimSweat.com
1 vote Thank Flag Link Fri Mar 30, 2012
Dear Walter,

If you offered too little you will always wonder if you should have offered more.
if you offered too much you will always wonder if you offered too much.
The logic is hidden deep in your heart ,bid with it and you won't loose.
No one knows how much you want something but yourself. In the end you will either own it or someone else will.
The best rule to follow is your own. Have no regrets if you lost it for another bid which was higher than yours for it only shows you were on the right track but someone wanted it more than you did.

Love always finds a way.... a home is the right direction . Are you ready to go home? You will find your way love is the ticket. Don't be confused how little or how much more you paid for it. It's worth it .
I know I would not sell my home for a million knowing all too well others think it is worth much much less.
1 vote Thank Flag Link Sat Mar 24, 2012
I recently bid 250k on a house listed 207k it was a homepath house on Palma Ceia, and didn't even get a chance to put a second "best and highest offer" , likewise I lost out on 3 other houses that weren't reo's even putting in an offer at asking price. I am not seeing any houses in the under 290k range last more than 3 days, in some cases they hit the market with a buyer already lined up and dont last a day. Its getting to a point that some of the listing prices are close to 2005 levels. Since you cant find a 3br to rent for less than 2400/month I guess thats whats driving the market.
0 votes Thank Flag Link Sun Apr 15, 2012
You need to assess what the current market value is and base your offer on that. You should see if there are any other offers to know. Base your offe ron that not on an asking price. Most bank owne dhomes are selling at or even above asking prices. A good buyer broker can assist you through the process
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Mar 24, 2012
Depending on if there are any other offers on the home, bidding at or over list may be the way to go. You can always bid lower, but lately we have seen bank owned properties going very quick and for list or over. There are many nuances that may need to be adderssed, such as the condition of the proeprty and the comparable sold properties. The rule of thumb when it comes to bank owned proeprties is to keep your offer between 8 and 10% of the list price if bidding lower to be considered. Of course a local REALTOR would be your best bet when making an offer. It won't cost you anything to obtain their services,as the commission is paid by the seller, or the bank in this case. Let me know if I can be of any other assistance to you.

Dan Turner REALTOR
DanTurnerRealtor.com
813-928-1260
0 votes Thank Flag Link Sat Mar 24, 2012
Yes you can offer less,but you will have to justify it by market conditions and the repairs that's needed on the property.
0 votes Thank Flag Link Sat Mar 24, 2012
It would depend on several things. Actual market value, necessary repairs, number of homes available in the area, and how long it's been on the market are just a few of the considerations. I would ask whoever you are working with to provide that info to you so you can make a good decision.
0 votes Thank Flag Link Sat Mar 24, 2012
Just helped an investor purchase a homepath property in Minnesota that we are closing in April. You'll need to use a realtor to make an offer.
0 votes Thank Flag Link Sat Mar 24, 2012
What do the comparable sales show for bank owned properties?
0 votes Thank Flag Link Sat Mar 24, 2012
What does your buyer agent tell you? This is how we earn a living.

Kevin Cloutier
Realtor
0 votes Thank Flag Link Sat Mar 24, 2012
Also fyi over half of the Fannie Mae HomePath sold in the past 12 months in 33615 and 33634 were sold to ALL CASH buyers.
0 votes Thank Flag Link Sat Mar 24, 2012
Hi,

To submit an offer you will need a Realtor.

I can help you if you're not already working with a Realtor.

Each property has to be evaluated individually because sometimes Fannie Mae will underprice and at other times they will overprice.

Also if you're not planning to occupy as your primary residence, your offer may not be considered unless they don't accept an owner-occupant bid during the first two weeks of listing.

I just pulled up a report of Fannie Mae HomePath properties sold in 33615 and 33634 in the past 12 months and many have sold above the list price.

All the best,
Alma
Alma Rose Kee PA
Future Home Realty
Westchase Office
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Sat Mar 24, 2012
If it's homepath it is not a foreclosure, it's now bank owned or an REO. Let your agent guide you here, but be ready to offer full or almost full price if you really want it. Around here they get several offers and then hit you with the Multiple Offer form so you can offer less but when you get the Multi Offer document you have to make your best offer. Let your agent guide you and I hope you have one that is experienced in these as they can be a rough ride.
0 votes Thank Flag Link Sat Mar 24, 2012
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