Home Buying in Fallbrook>Question Details

Lindsey, Home Buyer in Glendale, CA

I have found the perfect house in Fallbrook! Is it realistic to offer $400K on a listed $479K?

Asked by Lindsey, Glendale, CA Fri Jun 27, 2008

bank owned home? I will be putting down $60-$70K, and have a FICO of 720 AND a pre-approval letter for $435K, My agent has suggested I offer close to asking price, but I don't want to! The comps from Zillow and Cyberhomes place the property at about $545K. The house needs some work, but nothing major as far as I can tell without an inspection. Or do I offer more ($420-$430K), and ask for some kind of allowance for closing costs and unforseen repairs? This will be my first home, and I do not wish to be in an upside down situation by next year!

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Hi Lindsey,

You can offer what ever you like and your agent must present your offer. Think how much you want this house and ask your agent (buyers agent) to pull comps for you. What usually happens is if the bank is not getting any offers on the 479 number they will drop it maybe 10% and wait for offers at that number for 30-45 days. It is unlike the bank will take 400 on 479 without dropping the price 1st.
But it never hurts to try!!
Good luck.
1 vote Thank Flag Link Sun May 23, 2010
The bank will do an appraisal on the property to determine the fair market value, and the majority of the time bank owned properties have multiple offers. While you have the right to offer whatever you choose I would suggest you dont come in too low if you want a chance at actually getting the home.
0 votes Thank Flag Link Fri Jun 25, 2010
Lindsey!
Have you Realtor show you recently sold homes in that direct area for the last 3 months. Look directly at homes that are fairly close to your size and condition. List price has very little value it is the comps that will determine what the bank will actually accept. From that data you will be able to have a more realistic view of what price is a good price to put offer at.

Kindest Regards
Dianne Hicks
0 votes Thank Flag Link Sun May 23, 2010
My humble opinion. Offer the lower price. The worst is he she can sasy is no. Besides it is a down market and there is plenty out there. And in my opinion we have another 90 days minimally, if not years, of a down market. Stay cool.
0 votes Thank Flag Link Sun Jan 25, 2009
Lindsey,

I completely understand your point of view. You need to ask yourself a few questions first. If you do end up purchasing this home, do you plan to sell next year or the year after? I ask this because unless you plan to sell or your getting in over your head and will need to sell (based on your down payment and credit scores it appears your a responsible borrower) then it doesn't matter what the property is worth next year. As long as you plan to be in the home for some time, the market has historically ALWAYS rebounded. Its just a matter of how long.

Second, how badly do you want the home? If this is the "perfect house" then its sounds to me like you really want this home. Based on your research you know the home is already worth more than the asking price. So my recommendation based I what you've told me thus far is make a more reasonable offer (say 10% below asking price). You are much more likely to get a counter offer and still get a discount on what appears to be a reasonably priced home. I also recommend you make your offer contingent upon a home inspection, just in case there is something major that you're not aware of. Best of luck!
Web Reference: http://www.curtdarragh.com
0 votes Thank Flag Link Fri Jun 27, 2008
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