There is no way to be certain but, one can attempt to estimate. If you would like to work with me, we could see what can be done. Bank adjasts asking price to maximum of what they believe they can get.
No one can give you a reliable answer without studying your situation and detail. Agents makes a living by working on cases lik this - so, it is most unlikely that any one will give you the 'secrets' for free.
George Tucson Home Advisor LLC - Realtors
Arizona Premier Realty Homes & Land
Did you have an appraisal done? Was the home's value higher or lower than the original asking price of the home? What is the home's market value today? Did you use a Realtor to assist you or did you go buy the home without representation? If you did use a Realtor, did they run market statistics on the community to assist you in determining the home's value, and an appropriate offer?
Regardless, it sounds like you've bought a beautiful home! Enjoy it and savor the fact that you did apparently get a very good deal!
Best of luck,
Suzanne Rothman Yafet, Associate Broker
Coldwell Banker Residential Brokerage
Time on market
Length of time home has been in the hands of the bank
Original loan amount
List price vs. market price
There are definately deals to be found and if you have patience you will find that one bank that is ready to let go of a house, but in general banks deal wityh numbers and numbers only and if they don't make sense to them they will not accept your offer. I do see time and time again though, that they reject an offer only to reduce the property to below the original offer a few weeks later, which makes no sense. But it is what it is and not much to do about it. Banks have no commons sense :)
What really does your friend know? Do they work for the bank?
You already negotiated a 10% reduction in price. Did you feel that you got a great deal before your friend open their mouth.
What I know about bank owned homes in the high 600`S, getting 10% off you did as well as you could.
When your friend brings over a house warming gift, look at them and say " Thanks...is this the best you could do? "
Enjoy your new home.
Would you like a comparison market report for the house and the surrounding neighborhood? It sounds like you were given some of this information but you don't sound confident or convinced that it is accurate? And while we all appreciate the service that Trulia and Zillow provides, their valuations really have to be re-evaluated by a licensed professional working in the area. A market report usually takes me about a 1/2 hour to run and it's essentially a second opinion. I'm happy to do it for you and at worse, it will give you some extra information about what to do next.
You really need to be working with a realtor. The price depends on so many things... where the house is, & what comparables are, the condition of the home, among other things. Keep in mind, it is a buyers market, & deals are out there... a reator will help you make the best deals. Call me, & I will be happy to assist you in any way I can.
By our team's experience with Bank Owned properties; we have noticed that Banks have listed their properties "Aggressive", but also "Competitive" as well. Meaning they have done the proper research to determine not only the value but to gauge the actual activity that the market is bearing in a given area.
When they orignally list a property normally they look to receive and or except offers of at least 90% of their asking price.
If they do not receive the desired activity within their forecasted time period (normally 5wks), they will re-evalute their numbers based on poor activity and then apply the 90% principle again.
So, if you paid $625k for a property that was originally at $695k, your offer fit into their intial market assessment. And, I would have to agree with your friend that you could of indeed purchased the property at a lower price.
"Generally" speaking, if they had the home priced at $695,000, the price was likely very close to a fair market price.
Bank owned (aka REO) properties generally have 2 or more opinions on price submitted by real estate agents and/or appraisers. Those are then reviewed by the bank or a third-party handling the REO for the bank; then the price is set.
If you purchased a $695,000 home (assuming that was a fair market price) for 10% less, it sounds like a solid deal, "generally" speaking. It is of course possible that you could have bought it for less, but I wouldn't dwell on the "what-ifs" if the deal is done. In the enlightened words of a former economic professor of mine - "Don't cry over spilled milk".
As for the $850,000 home, you could use the same 10% figure and offer $765,000. Or perhaps push it to $750,000. I cannot stress enough that there are far too many unknowns to rely on my answers here for your individual situation. Some people may start at 20% below list price, or may not consider it in percentages at all.
Best of luck and enjoy your new home!
Realty Executives Southern Arizona