I made an offer on a bank owned property last week and am still waiting to hear back. I offered 87% of the

Asked by KJ, 15232 Tue Jan 6, 2009

asking price and asked for 3% back toward closing costs. The house has been on the market for 1 month and there are no other offers on the house. I'm sure I'll hear back about the house soon but I just wanted to see what people think about my chances of getting the offer accepted while I'm waiting for a response. Any thoughts?

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Bill Eckler, Agent, Venice, FL
Sun Feb 8, 2009

Don't expect the bank to jump at your initial offer. They will probable counter your offer with a number somewhere between their asking price and your offer.

Banks don't like contingencies and will more than likely veto this part of your offer. They do like paying a portion of the closing costs and using their closing company for the transaction. This will provide them with greater security and control of the closing process....It seems their philosophy is "too many cooks spoil the broth."
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Jackie Hamil…, , 15241
Sat Feb 7, 2009
KJ, it's not unusual for the bank to take their time to respond. Are you working with a buyer's agent? I just finished up a negiotation with a lender that took 14 days for us to come to terms. I keep my buyer informed on a daily basis on the process, so hopefully your agent is doing the same. I even had one that the lender never would return the listing agent's calls so we finally said forget it. You have to also realize that the department handling these are overwhelmed and that each processor may have thousands of cases they are working on. So hang in there. As far as your offer, it all depends. I think the banks are starting to be more accepting of reasonable offers being presented to them in today's enviroment.
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Chad Boyers, Agent, Toledo, OH
Tue Jan 6, 2009

Since I'm not in your area, I can't say for certain what will come of your offer, but I'll offer what I have noticed in my area (NW Ohio). First, banks are very overwhelmed with properties and offers right now, so your response time from them will very possibly be a few weeks or more. Another reason for banks to take their time is that a second or third offer may come in the meantime, leading to negotiating power for them. Second, banks have been very open to covering closing costs, so I think that you are likely fine with that. Third, it's hard to say whether the actual offer amount will be taken or not without knowing some specifics, such as condition of the property, what market values of homes in that particular neighborhood are, what the list price of the home is, etc. For example, if the list price is $200,000 and the home is in good shape, and the average for the neighborhood is $300,000, you're already getting a pretty good bargain at the list price, so getting it for $174,000 plus closing costs might be a little low. However, if the house is in poor condition, or if the bank just needs to get rid of its inventory, your offer might be a good one. Strictly based on your information, I think that you shouldn't be too concerned over your offer, it seems to be pretty reasonable. Just sit back and wait for the bank's response. Good luck in your purchase!
Web Reference:  http://www.ChadBoyers.com
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