Help with an initial offer with a homepath REO foreclosure

Asked by Dan, 21122 Sun Aug 8, 2010

I've found an REO foreclosure I'm interested in purchasing. It was last sold in 2005 for 185K. It was listed for sale as a foreclosure in February 2009. They're currently asking for $125,000. What do you think would be a fair initial offer? I know it's difficult to say given the limited information but I'm just looking for a rough estimate on where you would start the negotiating process at given its length of time on the market.

Thanks for any advice,

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5
Dan, Home Buyer, 21122
Sun Aug 8, 2010
Thanks guys, I have a real estate agent and she's working up comps, I'm just trying to gather others opinions based on there experience (i.e. I've been successful at negotiating down homepath, no they don't budge on price expect to pay close to listing, A fair initial offer would be X dollars or Z%)
0 votes
Kamal Salim, Agent, Davie, FL
Sun Aug 8, 2010
Hello Dan

Homepath does a very good job at listing their properties for a fair market price. Before they do so, they always pay for a Broker Price Opinion from a local broker, and will list the home accordingly. I am wondering why it would be on the market for almost 1 and 1/2 years if that is the case. Do yourself a favor and have a local agent help you with this. It makes no sense for you to try, specially since the commissions are paid by the seller anyways, so you would not be saving any money by doing it yourself
Web Reference:  http://www.kamalsalim.com
0 votes
Dennis Erick…, Agent, Bozeman, MT
Sun Aug 8, 2010
Call an agent in your market and ask them this question. All real estate markets, and, therefore, all real estate values are local in nature. You need a local professional opinion. Have details of the home avaiable such as square footage, number of bedrooms and baths, address, general condition. Frankly, if you're buying a foreclosure and you don't know what the value range should be, you need professional help. A small error or oversight on your part can cost you thousands. This is one reason you should always use a Realtor.
0 votes
Dennis Erick…, Agent, Bozeman, MT
Sun Aug 8, 2010
Call an agent in your market and ask them this question. All real estate markets, and, therefore, all real estate values are local in nature. You need a local professional opinion. Have details of the home avaiable such as square footage, number of bedrooms and baths, address, general condition. Frankly, if you're buying a foreclosure and you don't know what the value range should be, you need professional help. A small error or oversight on your part can cost you thousands. This is one reason you should always use a Realtor.
0 votes
Christine Jo…, , Severna Park, MD
Sun Aug 8, 2010
Dan,
I would love to help you with this purchase. One of the requirements with a Homepath REO is that you will need an approval letter from a homepath approved lender. We are lucky to have an approved lender right in our office. As far as the offer price in general the price listed is because the bank has done a BPO-Brokers Price Opinion of the price. It is a bit like a mini apprrasial. I would be happy to assist you in looking at all of the comparaibles in the neighborhood and helping you with the offer and most importantly the negotiations that go along with a purchase. Please feel free to give me a call.
Christine

410-507-9968
Champion Realty
Certified Distressed Property Expert, CDPE
0 votes
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