I just made an offer on a foreclosure that sold at auction 66k on 5/19. The asking price the bank wanted was 75k. I offered the bank the list price on 6/19 and on 6/25 my agent told me that another party made the same offer. The bank wanted both parties to come back with their biggest and best. After doing some research and realizing we really wanted this house we offered an additional 10% to the list price. My agent said that itâ€™s really strong offer and should be the one accepted. My agent said I should know the banks decision by end of business today. I guess in todayâ€™s market their are REO exclusive agents that work with the banks and all they sell is REO properties and a lot of the time the list price is bait to get some activity. Itâ€™s my understanding that the agents get graded by the bank based on how quick they sell the REO's and how much they get in comparison to what the bank wants. Sometimes the banks will tell the agent what they want and sometimes they donâ€™t. I Zillow can be pretty generous, but they have the house 116k. I have been in the home and itâ€™s in really good condition and doesnâ€™t seem to need any major repairs. Iâ€™m still going to have an inspection if my offer is accepted. Also my loan is FHA so they will also be doing an inspection. NERVOUSâ€¦.WAITING
Foreclosure or not, the list price in real estate is always up for negotiating. It is truly just that simple. When you make an offer, be sure you have adequately educated yourself with either a solid Broker Price Opinion or Comparative Market Analysis, this way you know what type of deal youâ€™re getting. Better yet, hire yourself a Realtor, get some representation, have them provide your CMA or BPO, then have them help you in writing a competitive offer and see what happens.
I agree with Jesus, list price is a suggestion even if it is a foreclosure. With that being understood, you could hire a real estate agent to research what that particular foreclosure company normally negotiates off of thier listed price. This will give you an idea of how much negotiating the foreclosing company could be expected to do. The added benefit of having a real estate agent assist you with this is that they could also complete a Broker Price Opinion or a Current Market Analysis to ensure that you are not paying more than you should. The agent should have knowledge of the area where the foreclosure is located so that they have their "finger on the pulse" of the area and could also tell you if the demand in that market is increasing or decreasing.