Home Buying in Santa Clarita>Question Details

Nicole, Home Buyer in Valencia, PA

Putting in a offer

Asked by Nicole, Valencia, PA Fri Mar 21, 2008

We are in the market to buy, I am curious if a home is say 600,000, if I put in a offer for 550,000, is there a chance they would except. Also if a property is bank owned....does the bank allow more wiggle room with the price than a home owner?

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Hello Zeta,

Depending on how long the property has been on the market, I think $550,000 would be an acceptable offer. When I property is an REO there may be wiggle room. $50,000 of the list price is still within reason.

Good luck on your offer. You may want to consider the max that you would be. If $550,000 is it, you may want to start a little bit lower.

Best,

Monique Carrabba
0 votes Thank Flag Link Fri Mar 21, 2008
Zeta -
I agree with Dot. I went to a lecture on short sales and bank owned properties and the speaker ( a high volume broker with these cases) stated that more and more banks were accepting 85-90%. As others have mentioned, the fewer contingencies and the more money down, the better your offer will look.
Good luck!
CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Fri Mar 21, 2008
Hi, Zeta. Get your Realtor to run the recent comps to see what the other homes have sold for. You can always offer 550,000 and expect a counter offer.

I am seeing bank owned homes sell for far above the asking price. I've also seen them for 93% of the asking price...the only way to find out is to make that offer!

Best of luck to you!
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Fri Mar 21, 2008
Hi Zeta,
We work with bank owned properties frequently. We have a client in escrow right now for a bank owned property, who made an offer for $150K below listed price. The bank accepted our offer over a couple of "significantly higher" offers (exact words)...This happened because our buyer had a lot more cash downpayment available, and very few contingenices. Thats what banks are looking for, especially in this market...a smooth and easy transaction with a purchaser who will close the deal, not back out by contigency. They want the best offer, which is not always the highest offer.
You can always start a bit lower and leave some room to move up.
If you have any questions, we would love to help. Feel free to contact us.
Good Luck,
Lou Arakelian & Alex Golshan (Lou & Alex)
LA Real Estate Group
info@myLARealEstateGroup.com
http://www.myLARealEstateGroup.com
0 votes Thank Flag Link Fri Mar 21, 2008
Hi Zeta, I have several buyers in escrow right now on bank owned homes in Santa Clarita, and I can tell you that a few of them actually had to offer over asking price in order to get the home. I would say banks tend to be more negotiable on the average that a regular home owner. The bank is not in the business to keep the home, so they will reduce and reduce until it's sold. A regular owner will often take the home off of the market if they can't get the price they want, and wait for a better day. With that said, banks are more and more throwing out an excellent price, as their FIRST price. So, it would be foolish to think that just because its a bank owned home, you can always just decuct (x) percent from the asking price, and have reasonable expectations as to whether or not the offer may get accepted.

You need to analyze the asking price versus current market values and local market conditions. If it's a good deal, then it's a good deal. It's quite common for a bank to really stick to it's first price for (x) amount of weeks or a month, until they decide to start negotiating it or cutting it. They believe they have done the proper due-dilligence when putting it up on the market, so they think in general their first price may be the "right" price, even though we know it may not be the case. But thats the reason they try and see what comes of their first offering and give it a "bit" of time.

Just recently I've had other buyers out bid my buyers on "new" listings that came out an very nice, low prices. So in Santa Clarita specifically, there is some stiff competition. But for each hot property, there are definitely some properties, bank owned too, that are just sitting and sitting on the market, usually due to it's condition, but more than likely due to price. Those are the homes I'd focus on trying to cut in price, especially if they've been on the market for 60+ days.

Contact me if I can be of any further help....just visit me at http://www.TheScvAgent.com

Take care!
Web Reference: http://www.TheScvAgent.com
0 votes Thank Flag Link Fri Mar 21, 2008
Anything is possible. Your offer would only be about 8% under the purchase price, that is not unreasonable. As far as bank or REO listings, it really depends on what is owed, including all late fees, lawyers, whatever might be involved. They may allow wiggle room, they may not. All you can do is make an offer and see.
Good luck,

Brendan Murphy
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, WY 82070
0 votes Thank Flag Link Fri Mar 21, 2008
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