Cherise, Other/Just Looking in Modesto, CA

I've read where banks will approve a home sale at small discounts not huge discounts. I'm wondering what

Asked by Cherise, Modesto, CA Wed Feb 25, 2009

constitutes a small discount and what if the home you're interested in is overpriced for the area. I'm looking at a bank owned home that is listed at $155 sq. ft. when other homes in the area are going for $108 sq. ft. If the home has been on the market for over 3 months, do you think the banks will consider an offer at $120 sq. ft?

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Hi Cherise,

The answer is YES!!! Banks are negotiating, and the fact that the home has not sold in more than 3 months is motivation for them to negotiate with you. You have to understand that every day that a lender holds on to a home cost the institution money. These cost are called carry over cost and can run quite high at times. So, 90 days into their marketing efforts, the will gladly look at a reasonable offer and I would encourage you do make that offer if this home meets your needs and fits within your budget.

Happy Home Hunting
Frank Spencer
0 votes Thank Flag Link Wed Feb 25, 2009
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