I find it interesting that all of these answers are 'crap'. Banks may be in trouble, but you must look at the stats. Are you looking at the numbers or just Realtor hating here?
The numbers support what the agents are saying. Eric - there may be a few instances where you can get 95% of list price but it's not common if you look at the closings. In Lake Forest in the last 90 days sold prices, averaged over 103 sales, were 100.24% of list price.
There may have been a day there were agents working in the industry to make a quick buck, but I can tell you that in this market, the agents that continue to work as Realtors, aren't just in it for greed. Believe it or not - I care about helping my clients succeed in the process. And even writing full price offers on several bank owned homes for one client is far from a 'quick sale' as you put it.
Also, be sure in your offer your agent has you ask for all of the normal things that would be included in a regular sale: home warranty, pest inspection, natural hazard inspection, etc. You have to ask. If you don't they won't offer to pay for it. Even though Countrywide accepted the offer but stamped every page of their acceptance documents with an "as is" type of clause, they treated this offer as a normal sale and paid for everything we asked for. We did not ask for closing cost assistance. Good luck.
Carolyn Voet, ePRO
Committed to Excellence
Windermere Real Estate
I would have your agent ask the listing agent if they already have offers on the property. Check the comparables, figure out what you are willing to pay at write the offer for that. Make your offer strong with a solid deposit and short contingencies. Have your loan in place and ready to go.
There are some great REO deals. Good luck
Harrison K. Long, Explore Group Properties, Coldwell Banker Previews.
Find an agent that you can trust and that will work hard for you and together you will decide what is the best offer to write to achieve your goal of homeownership!
Harrison K. Long, Realtor and Broker, Coldwell Banker Previews
For The Best Home and Property Search Web site check out
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(651) 457-HOME (4663)
HOWEVER: We as agents must write any and all offers, that is our duty. You are not only making yourself look foolish if you upset a potential buyer but you are shooting yourself in the foot if the bank would in fact accept or counter a low offer. Yes, we are educated in our field and do know the comps, but we do not have a crystal ball and cannot ASSUME we know what someone will take, even if it is a bank. Any offer from a qualified buyer in this market is a "great" offer! And there are investors out there still making money on "flips".
I do agree with Johnny that you cannot get emotionally involved with a property, but I DO NOT agree that we agents are all lazy and unethical.
Cheryl, please consult a professional agent before making an offer on an REO... and Good Luck!
Maryann Lawler, REALTOR
Keller Williams Realty of Greater Manatee
Direct: (941) 586-8257
Beware of anyone who tells you to go in at a set discounted rate. You are either not going to get the house you want or you are going to pay too much. No matter how much posturing and negotiation might be needed, the highest and best offer is going to be the one the bank takes.
Your first offer should be the highest and best because the banks are not always giving counter offers.
That can be nerve wracking, because you don't know who or how qualified your competition is. You just have to come back with a price that you will feel good about if you get it, but at the same time, not be upset if you got overbid by $1000. It's a personal values decision!
Good luck -
I would be glad to assis you.
I agree with Linsey. An offer of a set amount below asking price on an REO will likely get no response what-so-ever from the lender. Have your agent speak with the Listing Agent. Although he/she will not tell you what other offers are, your agent will get a good idea of where you need to be in your offer. Most importantly will be Comps. Banks are not giving properties away. Yes, they have to lighten their portfolio of REO properties BUT, they have to answer to shareholders as well. They will not let a property go @ $200,000 if the market says it should be $285,000 ! If I were a shareholder in that bank, I'd want the Chief Credit Officer fired for giving my money away.
Most importantly be reasonable. Good clean offer, strong earnest money deposit, few contingencies if any and great financials / pre-approval / proof of funds to close and you'll get the propety you want !
Best of luck,
Cheers to you,
Southern California & Houston, TX
2008 Chair, Pacific West AOR MLS Committe
2008 Member SoCal MLS Board of Directors
2008 Member SoCal MLS Steering Committee
2009 Member-elect, Pacific West AOR Board of Directors
2009 Member-elect SoCal MLS Board of Directors
Ask your Realtor to show you the comps and make your offer according to the comps. Chances are good that it will turn into a multiple offer situation in many of Orange County's more decent places to live.
I do not suggest a standard percentage below asking price for offers. Is the property priced well now? Are there multiple offers on the property? Is the property new to the market or has it been sitting for a bit? Without the answers to these questions, you can't possibly make an educated decision.
I would highly recommed that you ask an active, professional agent to pull comparables for the area and to give you some hard data. Also, your agent will be able to negotiate tough for you, and will walk you through every step of the way. 9 times out of 10, the bank will pay for your real estate agent and your closing costs; but only if you offer a reasonable amount and have a solid pre-approval letter from your lender.
If you don't have an agent you are working with and don't know where to start, please let me know and I would be happy to place a referral for a top notch agent in your area to help you.
Hope this helps and good luck,
Maryann Lawler, REALTOR
Keller Williams Realty
Begin 30% below asking price and have available a substantial earnest
deposit payable upon aceptance with your "AS IS WITH THE RIGHT TO INSPECT"
Contract. If possible, don't garble the contract with contingencies unless
you need financing. Banks will look at lower offers if they are cash.
If you need financing; before you make any offers get a"Pre-Qualification Letter"
to accompany your offer. When making offers on REO's-Bank Owned, lenders
will respond usually within 24-72 hrs. so you'll have a response and their
counter offer and the process goes on. Be sure to have your agent go over the
HUD final closing statement ; we've been seeing Title companies charge
buyers after the Bank agreed to pay closing costs and they choose the Title Company.
We recently save our customer (buyer) $750.00 in miss applied costs.
Hope this Helps;
Real Estate Broker
Licensed Real Estate/ Charity Auctioneer