Foreclosure in 76063>Question Details

Jim, Home Buyer in Arlington, TX

On a bank forclosure, I want to offer them 96% of the asking price. But i want them to pay all the closing

Asked by Jim, Arlington, TX Tue Mar 25, 2008

cost. Do you think that is a reasonable offer on a forclosure ? I am working with a realator. IThe house is in Mansfield Texas.

Thanks, Jim

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My clients look at foreclosures as part of their buying strategy and I can tell you this. If in fact the bank has lowered the price over time then they may reach a certain point where their net sheet on the transaction may or may not allow them much room on the negotiation. If the property is in highest and best then you are in a bid situation with other buyers. I find that this happens about 40% of the time . The best thing to do is make the offer and wait for a counter. Regardless of your offer the bank will almost certainly counter so do not make your best offer up front. Believe me when I tell you that if there is competition they will let you know. The competition may also be an incredibly low offer so you may be the highest bidder and not know it. Stick to your guns on your original offer and then decide your offer strategy after the first counter.
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1 vote Thank Flag Link Fri Mar 28, 2008
Have your realtor do a market analysis on the house to see how it's priced. The fact that it's a foreclosure doesn't always mean it's a great deal. Also, your Realtor should be able to find out what the payoff is on the loan to give you a better idea where the bank stands on what they're looking to clear.

Good luck to you.
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1 vote Thank Flag Link Tue Mar 25, 2008
Probably. They are usually good about that. As long as you pay down payment
0 votes Thank Flag Link Fri Aug 8, 2008
i think it's a reasonable offer, especially if you have competiion. one of the downfalls is not knowing how much your competition has offered. if you're offering almost 100% of asking price, make sure your em money looks good to the seller, that let's sellers know that you are very interested in the property. if it's meant for you, it will be yours. good luck!
0 votes Thank Flag Link Wed Jul 23, 2008
The banks usually have no problem paying closing costs. i think i understand why you would offer 96% of the sales price. You don't know if there are other offers on the table and you want to make your offer look as appealing as can be. i had a similar situation with a client i represented. there were three offers on the table and she offered over the sales price. the bank countered and wanted the best and final offer we could give and the bank accepted our bid hours after we submitted the counteroffer request. if you're an investor, most investors don't offer that close to the asking price, but offer at least 40-60% lower than the asking price. i believe purchasing a foreclosed home can be a good thing to benefit from, but know the condition of the home before making an offer and what you are willing to accept.
0 votes Thank Flag Link Tue Jul 22, 2008
If You were working with me, I would tell You to write the offer & depending on the price range & suply & demand, to write it even lower. Almost all banks are willing to pay 3% in closing help from my experience & they all know that an offer is going to come in a bit below what they are asking. Write the offer & hopefully CONGRATULATIONS!
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0 votes Thank Flag Link Fri Mar 28, 2008
Jim, it seems reasonable, but then again I don't know all of the details. I think it is a good offer as long as you are not up against competition. However, you really need to depend on your buyers agent to advise you on this one.

I hope this information helps! Best Wishes!
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0 votes Thank Flag Link Tue Mar 25, 2008
I was going to pay around 40% down on the property. Thanks for the responses. Jim
0 votes Thank Flag Link Tue Mar 25, 2008
I think you should go for it. But remeber, you are only allowed a 3% of selling price credit at closing if you have less than 20% down and only a 6% credit if more than 20%.
0 votes Thank Flag Link Tue Mar 25, 2008
I would reduce that by about 11.4%
yes, make the bank pay for all the closing
shouldn't be a problem


good luck
0 votes Thank Flag Link Tue Mar 25, 2008
What does your realtor have to say about this for the fact they should have all the info. to advice you correctly regarding on how to place your offer for the winning bid. There are many tips and tricks on how to secure an executed offer from the bank

Without all the details difficult to make any further comments about you Mansfield foreclosure.
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0 votes Thank Flag Link Tue Mar 25, 2008
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