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.
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.
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!
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.
Lou Arakelian & Alex Golshan (Lou & Alex)
LA Real Estate Group
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.
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Raving Real Estate
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