Property Q&A in Lathrop>Question Details

Bethanne95376, Home Buyer in Stockton, CA

If Im offering cash ($85,000 max) for an REO home what is the highest listing price I should be looking at?

Asked by Bethanne95376, Stockton, CA Mon Apr 20, 2009

What if it has been on the market for a long time? Would the bank even entertain an offer $20,000-$30,000 below the listing price?

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Bethanne95376, your Realtor has to show you properties with your range. Always remember that the bank has already lost a significant amount in regards to the property, your agent has to show you comps for the houses that you are putting an offer.

You have to be as close to 90% of the market value, otherwise the bank won't even consider your offer even if it's cash offer. So I suggest that before you make an offer, have your agent do a little reseach about the property.

Good Luck
0 votes Thank Flag Link Tue Apr 21, 2009
Hi Bethanne95376,

It really depends on many factors. Your agent should be able to advise you based on what he or she knows of the targeted property. In the $80-150K range, there is a large amount of activity and multiple offers are common. If you are in this range your will most likely, be competing against one or many other potential buyers depending on the quality of the home. Speed in which you find the property and make the offer is critical. With regard to time-on-market, banks these days are doing a very good job in obtaining multiple Broker Price Opinions (BPOs) and as a result, they know where homes should be priced. In my humble opinion, banks are not likely to take an offer $20-30K below asking price right a way. However if they find that the home is not moving they may adjust the price, so keep a close eye on the target.

Best regards,

"Rocky" G.H. Hawrysz
Broker Associate, REALTOR®, e-Pro®, ABR®
Prudential California Realty
Direct: 209-444-6610
Mobile: 209-915-6209
Fax: 209-433-2000
0 votes Thank Flag Link Mon Apr 20, 2009
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