Q: If you give offer to bank owned property, is it possible that bank may come back and say we didn't look at your offer because yours was too low but if you offer xxxk we will look at offer.
A: They will have looked (glanced) at your offer but rejected it because it was too low. If they say they want more, then â€¦ they want more. If you want the property, you need to step up and pay what they are asking or â€“ if it ends up in a multiple offer situation, more. In the current market, if you donâ€™t pay it, someone else very likely will.
Q: On what basis they come up with this number?
A: They have at least one BPO (Broker Price Opinion) prepared for them. Current comps for the area put the price much higher than the $439,000 number listed on RealtyTrak.
Q: Is seller agent trying for this amount or really a bank?
A: The agent does not set the price.
Q: What is the bank's interest to compete or spend time in15 k price difference?
A: In the current market, the bank knows it can get market value for homes such as these â€“ the last two sales sold in 12 and 16 days.
There are a couple of other issues here. When you see a price on a listing such as this, you need to check to see if it is a RealtyTrac advertisement.
In this case, what you are seeing is not a listing â€¦ it is an advertisement for RealtyTrac.
RealtyTrac notices can be very deceptive because they give the loan amounts, or, in this case, ESTIMATED sales prices - not the purchase OR actual listing price. When properties such as these hit the market, it will be at market price for the neighborhood.
Bottom line: RealtyTrac is trying to get you to sign up for their service.
The following links may be helpful:
When Is The Price Not The Price?
Itâ€™s Too Good To Be True: REALLY â€“ Top 4 Buyer Myths
Yes, it's very possible that the bank refused to look at your offer. The listing agent wants to sell the property and move on to other listings, do not doubt their intention. I've seen banks squabble over a $365 home warranty....it does not surprise me to see them asking for $15,000 more. The listing agents are instructed to do exactly what the banks want them to do.
So the question for you is; do you feel this property is worth an extra $15,000? If so, go for it, if not, wait around for another one.....or counter. I've had clients obtain bank-owned properties by countering back. All counters are verbal at that point.
Best of luck.
Every bank works differently. They may instruct that the listing agent only submit the best offer or offers above the certain amount.. It is the asset manager 's job to make sure the property is sold for the best price , so they can minimize their loss. it does not matter what is the listing price or What type of property it is. The property will be sold for the market price.
You need to know the current market value in the area and the local market condition, So you will not miss out on a great deal by offering too low .
The foreclosing bank's asset manager will look at fair market value, what it cost the bank to foreclose, what the investor (holder of the note) wants. Many asset managers will tell their REO agents how much to list the property for.
When writing an offer on a foreclosure, be sure you are armed with information that will best position you and your offer. Sometimes, you may only get one chance, so make it your best and highest offer. Your realtor should be able to give you information (such as recent comps) to guide you in your decision-making process.
But don't assume for a moment that just because it's bank-owned that you can offer 50% less than list price. The asset manager will already price the property to move it fast, but the bank isn't going to just give it away.
Remember, too....you may not be the only one looking at this property since there are many investors (many all cash buyers) who are competing with regular home buyers for the same properties.
As others below explain, the BPO is the guide line that the bank uses to determine where to price a home. The bank typically won't know anything about the home they are listing. They may not even be in the same state.
A lot of the time, the bank wants the home to be marketed for at least 7 days before they consider offers and then they want the listing agent to send in all the offers. Sometimes they will then take the top 3 and tell the listing agent to go back to the buyers and ask them to resubmit their "highest and best" offers.
In my experience, if you see a home you want, your best bet is to get your agent to show you what it should sell for and then write your offer based on that.
Bernard Gibbons, DRE License # 01331583
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585 - firstname.lastname@example.org
The REO lenders flexibility ranges with each lender but it's not a wide range. Some may have 5% rule, some may just want to sell at asking price or a few thousand less. If there are competing buyers, your chances are get worse.
Your buying agent should tell you what a price the property will most likely sell based on his/her CMA and go from there.
If you are adamant about the price, you may have to wait 30 days after marketing to see if the price reduction will be close to what you want to pay for it. Chances are, there will be another buyer already that is willing to pay at that price and you may miss your opportunity.