Foreclosure in Charlotte>Question Details

Stephanie Mu…, Home Buyer in Charlotte, NC

How much should I offer for a foreclosure listed at $334,900???

Asked by Stephanie Murphy, Charlotte, NC Thu Feb 19, 2009

It has been on the market since 4/08 when it was listed for $429900, it is owned by a bank who bought the note for $334,500 last year. The house is in good shape although it does need some updating. The listing agent has mentioned "bring all offers" and a willingness to work on the price. How much does one offer below listing price in theses cases???

Help the community by answering this question:

Answers

9
BEST ANSWER
Stephanie, It's almost impossible to give you a dollar figure on what the bank will accept for this property. And what you think the bank paid for the property may not actually be true. If it's been on the market a really long time an had several price reductions, they may be at the end of their acceptable price range. Another factor is whether you are dealing directly with the bank or a REO or asset management company contracted by the bank to market the property. Although it's listed with a local realtor, it could be that an asset company is in charge of negotiating the offer and making the decision on price acceptance. Their role is to manage the property for the bank, make any needed repairs, pay the agent's commissions, pay for trashout, re-keying and utilities and maintanence of the property.... and get the bank the highest possible selling price for the property. I always say that the offer should be low enough to please the buyer if accepted but high enough to warrant the seller to realize that the buyer is serious enough to counter offer with. Banks and asset companies are almost always going to counter offer no matter how good the offer is. If the offer is really low, they will totally reject it with no counter offer. In a way they are saying, come back with a better offer when you are serious. So the offer has to be good enough to start the negotiation ball rolling. You, as a buyer, need to decide the most you are willing to pay and work toward getting the best price you can through negotiations. They know up front what the least they will take for the property and you need to know what is the most you will pay for it. Hopefully it will be a win-win situation for you and the bank when you arrive at a selling price. You really need a good buyer's agent to do this. Realize too, that although the listing agent is supposed to be a dual agent and working equally for both parties, they will only be selling you one home, but will hope to continue to list homes for the bank in the future. I would recommend that you enlist the help of a buyer's agent to work for you in buying this property. Contact me and I will be glad to assist you in this or answer any other questions you may have.
Web Reference: http://Isellunion.com
0 votes Thank Flag Link Thu Feb 19, 2009
Stephanie,

Everyone here has given you valid advice. Your next course of action should be to find out exactly what the history of the property is and who currently owns it. If it is a bank, that bank will have a history of recent sales that will show you what they tend to net from a sale versus the listing price. If they consistantly settle for 20% below list, that's where you should be. There is no across the board answer.

Remember, when you research the list to sale price, you will want to know if the sale price included closing costs, repairs, commissions or other concessions the bank agreed to pay. The sales price may have been $250,000, but the bank may have agreed to pay $10,000 in closing costs, so the actual sales price would be $240,000.

There are surely opportunities out there to make great deals, but do your homework. Remember, the listing agent works for the seller - in this case the bank, and ithe the law of real estate agency requires the agent to help the bank get the best price possible.

Good Luck to you
1 vote Thank Flag Link Mon Feb 23, 2009
Warning, I am not a realtor. My answer will not be "hire a realtor"

A home on the market that long, in this economy, is either going to sit there for two more years or the bank is going to deal. A normal reduction off a foreclosure is around 15%. However, in this market you may want to be more aggressive. You may want to find out which underlying bank foreclosed on the property. (You can find this out through a simple search for reo properties on the internet) Some banks need to clean up their balance sheets more than others. Remember a foreclosure is bought "as is" so a very good inspector is a must and a large discount off of comparable home prices is a must. You are never sure what you are buying until you get in the home.

Best of luck.
1 vote Thank Flag Link Sat Feb 21, 2009
Hey Knopfi !
Wat is los mit dem Haus da drueben ? Willste es nicht mehr ?
0 votes Thank Flag Link Sun Jun 28, 2009
The answer the laset agent provided is a good one to follow. The banks do not know what they are doing and there is absolutely NO STANDARDIZATION to determine what the banks will decide to do on any given day. Seek out a good realtor to work with; one who has access to current sales and terms of the sale...what to offer depends on sooooooo many different factors and you need to work with an active agent in your area for their advice. Good Luck!
Sharon
http://www.strenary.allisonjamesinc.com
0 votes Thank Flag Link Fri Feb 27, 2009
Stephanie,

A Realtor can pull reports on foreclosure sales in your area. These reports will provide you with information that you will need to make your offer. Some of the information you will need are: Average days on market, average sales price vs. listing price, and average square foot price. In addition, Realtors are familiar with what the banks are accepting and can guide you through the process.

Good Luck!

Michelle Thompson
Realtor-Lyon Real Estate
El Dorado Hills, Calif.
0 votes Thank Flag Link Sat Feb 21, 2009
Warning, I am not a realtor. My answer will not be "hire a realtor"

A home on the market that long, in this economy, is either going to sit there for two more years or the bank is going to deal. A normal reduction off a foreclosure is around 15%. However, in this market you may want to be more aggressive. You may want to find out which underlying bank foreclosed on the property. (You can find this out through a simple search for reo properties on the internet) Some banks need to clean up their balance sheets more than others. Remember a foreclosure is bought "as is" so a very good inspector is a must and a large discount off of comparable home prices is a must. You are never sure what you are buying until you get in the home.

Best of luck.
0 votes Thank Flag Link Sat Feb 21, 2009
Hello Stephanie. I need some further detail on where the property is located in order to tell you what is "good price." I would be more than happy to assist you!

Are you working with a Buyer's Agent? If you are not, I recommend that you hire one who will put their knowledge and negotiation skills to work for you. Please remember that a Buyer does not pay the Buyer's Agent but the Seller would. By not having an Agent does not mean that they will automatically reduce the price less the commission of a Buyer's Agent.

If I can be of further assistance, please know I am here!

Best,
Debbie
0 votes Thank Flag Link Thu Feb 19, 2009
Hey Stephanie. I can't really answer this question without knowing more about the property, location, & the recent sold information for that community/area. I would be happy to help you with this if you need my assistance. Please contact me.
0 votes Thank Flag Link Thu Feb 19, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer