HOW TO BID ON A FORECLOSURER. REALISIC EXPECTATIONS ON DEALS ONE CAN GET

Asked by tommy, 39560 Sat Jul 11, 2009

Foreclosesure home listed at 270,000. Located in a very expensive area, with the comperative analyis recent sales at around 289,000. we were going to place a bid at 220000. Is this a laughable offer, or is something that will be realisticly considered since it is a foreclosesure. We are preapproved and rady to go, can we go even lower than 220

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Joe Salcedo’s answer
Joe Salcedo, , San Jose, CA
Sat Sep 26, 2009
Location-Location-Location is very desirable neighborhood..If I like the property iI will put the best I can
That price of $ 220,000.00 I would say thats too low,, but again you are boss my recommendation is
to get the bid do not a play a game. Is this your first offer ? For a first time buyer they dont know yet
the situation but if your a making offer more than five (5) you will understand..

Again it depends on the market how many offer you they have probably many let say 4 offers I know this
is bank owned it might sale for over the asking price. I sit down with my agent spend a litle bit time with him
discussing the advantages and disadvantages...
0 votes
Jimmy Lane, Agent, Key West, FL
Sun Jul 12, 2009
Homes on that price range in Key West are typically going for over full price with multiple offers being placed. You should have an agent that works for you, other than the one that works for the bank, to assess the situation and advise you.
0 votes
Diane Loveri…, Agent, Pompano Beach, FL
Sun Jul 12, 2009
Tommy,

Thank you for asking this very important question. I know all the news says the market is way down, but well-priced properties in decent condition are selling at and above asking prices in lots of places, including South Florida. Potential buyers are getting caught in bidding wars that leave them feeling discouraged. I have several buyers in just this situation now.

Working with a realtor who is familiar with local market conditions is your best bet. I work in Miami, but if you'd like I can recommend someone in Key West, if that is in fact where you are looking. Just get in touch.

Good luck!

Diane Loveridge
Majestic Properties
dloveridge@majesticproperties.com
0 votes
Bill Eckler, Agent, Venice, FL
Sun Jul 12, 2009
tommy,

When buying any property, the best source of information to base your offer price on, is the comparables for recently sold similar homes. Since banks use this information to base their decisions, it would be beneficial as a buyer, to access it as well.

As a basic rule....the further your offer is from the bank's "asking price" the smaller the chance of having your offer accepted. Unfortunately, many buyers of these properties make an initial offer, expecting to be able to make a counter offer and are disappointed when they are not extended this opportunity.

With this said, if you are serious about a specific property, it may be beneficial to think about an offer that is "higher not lower."

A real estate professional will be able to support you with this initiative.

Best wishes,
The Eckler Team
0 votes
Keith Manson-…, , Milwaukee, WI
Sun Jul 12, 2009
Each situation is a little differnt. It depends on the demand for that speicific property, the condition of the property,the banks specific policies, the bank negotiator, and the type of financing and pre approvals you may have.

The best thing I can recomend is get a buyers agent in your area to assist you in negotiate a deal that meets your needs and will be acceptable to the bank. If your buying a reo make sure you understand the condition of the property because once you have an accepted offer you got it in as is condition with no repairs being completed by the bank.

Good Luck


Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin
0 votes
William Squi…, Agent, Naperville, IL
Sat Jul 11, 2009
Hello Tommy:
Most banks will take up to 12% less the Fair market Value of the property. It's really that simple. I would be suprised if the listing agent would advise there client to take such a low offer. Now if the fair market value of the home is $240,000 I would say your $220,000 offer is easy to get approved.

Good Luck!
William
0 votes
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