Also, don't believe anything that a Texas agent tells you about what may be the case in Pennsylvania.
P.S. I'm plenty savvy and have a steady REO account and I wouldn't touch your deal.
Sorry about that.
Just a quick update, the offer was rejected. I am, however, still pursuing the property. The house is now listed at 364k. When I found the property it was listed at 399k dropped from original asking price of 450k. After looking at the comps in the area, I believe this property was and still is overpriced as the homes are dropping in value and the property is being sold as is. My offer was pretty low, but it was a chance and a learning experience. My intial offer may have been an insult, but again it was a learning experience. I acknowlege I was naive in knowing the agents role in presenting offers and have since learned more. She is fully capable for submitting an offer on my behalf. I appreciate everyone's input as I have gleaned from your many years of experience. I signed a contract with the agent and she is helping me with the search. I'm hopeful that we will find the right home at the right price.
If the property is listed at $379,900 and it is up with a bank, you need to find out if the property is actually worth what it is listed for. I'd also like to know how you came up with $100k for your offering price and why you would think that any seller bank or person would accept such a low offer?
I have over 10 years experience with bank properties and generally banks will list a home under what it is really worth to start with and they will wait until they get what they need. I am an aggressive, experienced REO Realtor and that offer seems way out of the ball park but I do not know all of the facts.
Also, if you made an appointment with a Realtor or the listing agent and had her show you the property without doing your homework first and not hiring your own buyer agent, that is a huge mistake. I would need to know if you signed a Buyer Broker Agreement with the agent who showed you the property?
If you didn't put an offer in yet, please give me a call and I would be happy to talk with you. If you have, could you please let us know what the out come was?
Thanks. Feel free to read my blog at http://www.reneeporsia.com I write a lot about bank properties and buyer agency.
(215) 669-0589 Direct
(215) 358-1100 Office Ask For Renee
Have the agent do a market analysis on the property. Whatever the property is worth according to the CMA and how much you like the property is what you should offer.
Low balling that far beneath what the asking price is probably will get you no where. Also, it doesn't matter how "savvy" an agent is when it comes to bank owned properties, the agent will never get to talk to them. Also, the seller's agent only talks with a contact at the bank, not the person making decisions.
You want a real bargain, hang out at the Sheriff sales. Go ahead and put in what ever offers you wish, the worst that can happen is that they say no.
The good part is, what you have to offer most likely will not float until a property has been on the Market for many, many months. If you need Financing, have it arranged outside of the offer Before the offer is made. If it is solely a Cash Offer, make it with a letter from Your Bank stating the Funds are Available.
What you are trying to do IS possible. You may want to discuss your concerns with the Realtor you have made contact with. She may have access to other Agents that have the expertise.
Out of curiosity, did you write another offer on the Bensalem listing? I see that the price was reduced. Even though your first offer was low, you could still get a great deal on this bank owned home. Indeed, without having been through the property and only seeing the photo online as well as some aerial shots, it certainly seems to be a lot of home for the money.
Do not listen to Nami in Texas. There is a common law doctrine of "procuring cause." Now that you have already had the agent show you the home twice, she is the procuring cause of the sale and will be entitled to any commission. Do not take legal advice from real estate agents.
If the agent showed you the property, then you are bound to submit the offer through her. This is the problem of not working with an experienced Buyer Agent. Did you interview this agent, or just call her to go to see the property. This is unfortunate for both of you.
As far as the price is concerned, the bank has already had the property appraised and they know what it is worth in that marketplace where it is located. You can offer them anything you want, but, at the end of the day, it will be sold for market value. Unless they are desperate, they will probably not sell for 30% of value - but who knows??? Good luck.
When you are ready to work seriously with someone who has extensive experience in real estate sales and appraisals, you may contact me. I would be interested in a joint interview where we could learn something about each other and see if it would be a good plan to work together.
Carol Murray Cei
'Savvy and experienced' also comes with some wisdom that has been gained in the school of hard knocks, and like William Holt, I would not choose to spend my time pursuing your offer without a reasonable expectation of getting paid. Are you offering a retainer to the agent who puts in the offer, paid up front and non refundable,to compensate them for their time? If not, I doubt if you'll get any 'savvy and experienced' takers.
One other piece of information that might help those who are reading along. At the present time there are certainly bargains to be had. My experience with REO properties is that the banks are pricing to get the homes SOLD! That means they have a current appraisal done and then set the asking price at somewhat less than that new appraisal, with reductions every 30-45 days until the property goes under contract. But they are also turning down those lo-ball offers of 50%-70% of asking price.
Bargains? YES!! STEALS?? NOT likely
Hope that helps
Coldwell Banker Preferred