As a rule, everything in business is negotiable and you can make any offer you want. More specifically, here is the scoop on how the bidding on REO's usually works...
Some REOâ€™s are priced artificially low when they go live hitting the market, to stimulate a multiple offer bidding warâ€¦ and in those cases, if you and your agent have been truly watching that micro-market like a hawk, youâ€™ll know the exact amount over list price you can offer to still get good valueâ€¦ and you should never sweat losing a deal to another bid higher than you feel comfortable making after doing due diligence.
That said, many REOâ€™s do make it past the first 10 days or soâ€¦ and then a few weeks, and then a few months. For these REOâ€™s we can rest assured that the bidding war strategy is no longer in effect, so we can under-bid and, as a rule, the more cash and less borrowed funds you are using to close the deal... the bigger hammer we can swing on negotiations.
This property has been pending since 2/5/09, which means they have accepted an offer. They were only on the market for 8 days.
But to answer your question anyway, you can always make an offer lower than a listing price. However it is always best to see what other comparable sales are before making an offer on anything. This will tell you how well the property is priced for today's market. Many bank owned and short sale properties are listed way below the market price and will produce many multiple offers. When all said and done they will generally sell at market price. Your agent can advise you as to what is best when making an offer.
By the way, there is an active 2 bedroom unit in the same complex that is listed at $435,000 and it just came on the market. Also, there are 26 other active listings in the same zip code priced under $225,000.
If there is anything else I can help you with, please feel free to call me or visit my website for your property search.
Thanks, Denise Gleavey
"Your Realtor for Life"
Coldwell Banker Res. Brokerage
Good luck Scott!
Best Regards, Woody (619)850-5432
Diane Conaway, RE/MAX United, (760) 749-2888
Accredited Buyers Representative, Broker Associate
It depends on several factors. How long it's been on the market, the condition of the property, etc. If it's truly bank owned, the bank will price it to sell. You can offer lower than the asking price, but be prepared for other offers. Work with an agent who has experience in this market, and they will offer their valuable opinion and help you get the best possible deal. Feel free to check out my website, or call or email with questions. Good luck!