Question Details

Larry Barlow, Home Seller in Harrison, TN

What would be a reasonable bid to get the bank to respond with a lower number?

Asked by Larry Barlow, Harrison, TN Fri Feb 20, 2009

We made a bid on a foreclosure owned by Freddie Mac, for 15% less than the asking price, the house been on the market for several months. The counter offer was the listing price.

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This is often a ploy banks use to weed out the less serious buyers. Check with your agent but I would recommend an incremental increase to show them that you're still in the game. Decide now what your final number is and how badly you want the property. Typically while they are countering you they will still solicit other offers so you could lose out if someone puts in a higher bid between responses. Good luck.
0 votes Thank Flag Link Fri Feb 20, 2009
Decide where you want to be and submit again. This is part of the grunt work when buying foreclosures.
Jeff
0 votes Thank Flag Link Sat Feb 21, 2009
Banks usually list homes at fair market value. The reason for this is because they have to write off the loss from the listed price. Usually they will lower the property every couple of months. However they will consider lower offers even though they will usually counter.
0 votes Thank Flag Link Fri Feb 20, 2009
Resubmit your offer by increasing it by only small amounts. Try taking the same approach several times.
The problem is you run the risk of another buyer jumping in and stealing the property from you.

The bank obviously feels it has the home priced right.....your objective should be to prove to them otherwise. Do your homework to determine what similar properties have sold for recently in this general location.

Good luck
0 votes Thank Flag Link Fri Feb 20, 2009
Bank if they dont like your offer wont respond they are well aware of compd value of home with pictures of the property.

Only option you have determine if in time bank will lower list price then submit another offer. If not keep looking another buyer can secure the winning bid.

NOTE: We have been listing / buyers agent regards foreclosures, also worked with lenders supplying info. regarding a property for values and pictures (BPO)

Many forget the banks expenses when they take possession, bank is not seeking make any profit of sales of home at best just to break even off mortgage amount owed
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Feb 20, 2009
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