How much should I offer for a bank owned home?

Asked by Colin, 48326 Sat Jul 21, 2007

I hear that banks are actually less likely to go lower than the asking price now because there are so many foreclosures. How can that be true?

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
Vicki Masell…, Agent, Duluth, GA
Sat Jul 21, 2007
Great & timely question, Colin. As one might expect, there are many variables that you should consider when buying a home, whether new construction, resale or foreclosure. If you are not presently working with a buyer's agent (someone entrusted to represent you and you alone in the transaction), I strongly encourage that you consider enlisting their service. In your case, you may want to focus on an agent in your area of interest who has experience with selling HUD and bank foreclosed or "REO" homes. You are entitled to have professional representation (just like the seller does) so you should take advantage of their expertise and knowledge in the market. While a buyer's agent will expect you to enter into an exclusive contract to work with them alone on your purchase, it typically will not cost you a penny to use their services (provided that you follow the terms of the agreement). I have found that many banks and most listing agents selling foreclosures prefer that the buyer has an agent to ensure that he or she is keeping up their end of the bargain throughout the transaction process. I recommend that you ask close family and friends first for a Realtor referral. If you come up empty handed there, try visiting HUD's website (see link below) and do some research to find a HUD-certified agent/broker in your area. Best wishes - Ted Shoop
Web Reference:  http://www.hud.gov/
1 vote
Carlo Gobba, Agent, Bloomfield Hills, MI
Thu Jan 3, 2008
The most you are willing to offer. In other words, "Your Highest and Best Offer." In many cases you are only getting one shot at making an offer and the banks are taking the highest and best offer and not having to "Counter Offer" any buyer that has submitted one. This can best be answered by you (Along with assistance from your buyers agent) as it will have alot to do with your motivation, timing and the proposed future use of this property by you.
Web Reference:  http://www.CarloGobba.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Sat Jul 21, 2007
So many factors to consider. Have an experienced agent assist you. Depends on supply and demand in your market. Depends on the condition of the home. Depends on your credit and deal you put together. Depends on timing. I don't see banks often taking 50% on the dollar anymore, but generally within 5-10% of the market. So far as I've seen even with the increase in foreclosures banks have not had fire sales on the properties. In fact we see them holding the cards very close in many cases.
Web Reference:  http://www.teamlynn.com
0 votes
Missy Caulk, Agent, Saline, MI
Sat Jul 21, 2007
Use a realtor to comp the neighborhood, first and foremost. Some banks are more negotiable than others. Some banks get back to you promptly and others take forever. It also depends on the condition the house was left in. Some sellers take the appliances and tear it up pretty good.
Some banks already have too many homes in their inventory and don't want more so they will take a loss to get it off their books.
0 votes
Deborah Madey, Agent, Brick, NJ
Sat Jul 21, 2007
If the person at a given bank who is responsible for determining offering price, or making acceptance decisions is unrealistic, the property will sit on the market. Not all banks have the same policy or approach. Banks want to sell the house and move on. Unrealistic pricing hurts a bank just like any other seller.

As a buyer, make your offer based upon what the data in your local market indicates. Study recent comps, current inventory levels, current competition, and make your offer accordingly.
0 votes
Stan Mikhals…, , 33160
Sat Jul 21, 2007
It is depends on the bank you dealing with, buyers finance and credit, how much money buyer is going to put down and, of course, from the agent, who will deal with a bank. You could negotiate if you have all cash or almost all cash, because bank shouldn't go in the details of your credit and financial status. Moreover, this will speed up a process. So, I don't see direct answer on this question -- everything is very individual and has many factors to consider.
0 votes
Search Advice
Search
Ask our community a question
Foreclosure in Troy Zip Codes

Email me when…

Learn more