If a home is foreclosed at 700k and its a 5000 square foot and the home is 5 years old in east freehold NJ, what should my offer be for the home?

Asked by Vamsi Para, HOLMDEL, NJ Sun Dec 13, 2009

bank owned home in freehold twp NJ, what should my offer be for a 700k home 5000 sq ft 5 years of age and it is in a luxury homes community?
I will truly be appreciated for your answers

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Danielle Mon…, , Old Bridge, NJ
Sun Dec 13, 2009
Dear Bob,

As the members below have told you, it does depend on many factors. However one thing that may be in your favor, is that in this market there may not be as much competition at that price point, as there would be with a home say, in the $200,000 range. If you like, you can give me a call and I can find as much information about the home as possible. I can create a market analysis for you on this home, and we can come up with a good offer. I'd be more than happy to help!

Danielle Monaghan
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun Dec 13, 2009
What is your Realtor advising you to do--if you don't have one now is the time to interview a few agents and choose the one you like best. Before you can make an educated offer, you need to know what similar properties have recently closed for in the immediate area--also the condition of the property can be a factor, are you prepared for extensive renovations if needed, etc. How badly do you want this property--keep in mind that not all foreclosures are great deals. Have you visited with any qualified loan officer(s) and know your budgetary constraints--you will need a mortgage pre-qualification/approval letter if you are planning on a loan.

1 vote
William Troy, Agent, Toms River, NJ
Sun Dec 13, 2009
Hi Bob, anyone who provides you with a number without knowing the exact home you are referring to would not be doing you any justice. You really need to review the home with a realtor and have comps done to justify the selling price of the home. There is no general rule of thumb for every 5000 square foot home in east freehold to sell at "x" price. You can have one home that should sell for 700k and another for 800k. Since most buyers think they will get the best deal on foreclosed homes, bank owned homes typically have multiple offers. So going too low may result in you not getting the home. Banks will review who is the most qualified buyer, who can close the quickest, as well as offer price. If you make an offer of 650k with a mortgage and another person offers 640k cash, they may take the cash deal. Even in today’s market I have had several bank owned homes sell at or above asking price. Good luck and don't hesitate to reach out with any questions.

William F. Troy
Realtor Associate SRES, e-PRO, CDPE, Luxury Home Team
Veltri & Associates Realtors
1012 Cox Cro Rd.
Toms River, NJ 08755
Direct Dial (732)557-4600
Cell- (732)600-1570
Home- (732)961-0079
Fax- (732)557-6425
Home Fax- (732)961-0089
"When only the very best will do!"
1 vote
Matt Barnes, Agent, Medford, OR
Wed Aug 18, 2010
I do more short sales and what I recommend is doing your own BPO to find out what the bank has determined the value to be. In my area the banks are trying to recapture the value based on a BPO. In an REO it seems you may be competing with other offers so you may want to make an offer at value and then be ready to raise upon counter from the bank. Let them know you want to stay in the game if you really want the home.
0 votes
Mortgagelady, , Freehold, NJ
Thu Mar 11, 2010
Bob, I am not a realtor although I was years ago. Obviously I deal with many of the same issues as a loan officer. I recommend you get the advice of a Realtor who is well versed in the area. Have them show you recent sales of similiar size homes that have closed within the past 6 months. If possible only go back 3 months. Obvously you have a better chance of a good deal because it is a forclosure but the smell of a deal will bring a lot of competition so be careful not to underbid. Zillow is a good website to get similiar home sale information. Type in the address of the property and click on similiar sales and it will give you a list of homes in the same town. IKeep in mind it won't take the place of a good Realtor that has most likely been in the comparable homes. It's just a place to start. I happen to live and work in Freehold and would be happy to discuss it further with you.
0 votes
Purnima Talw…, Agent, Morganville, NJ
Tue Mar 9, 2010
just wondering if you bought a home yet?
If not let me know I would love to assist you with any questions you may have 908-770-5999
Web Reference:  http://www.mymanalapan.com
0 votes
Alice, , Middlesex County, NJ
Wed Dec 30, 2009
Hi Bob,

I was wondering if you received all the information I sent you on your property. I did not hear back yet via MLS or email. Please let me know if I can further assist you and I would be happy to do so. Have a Happy New Year and I look forward to meeting you in person.

Allie Matthews
Orange Key Realty
Freehold NJ 07728
732 718-6515 cell anytime
0 votes
Jamie Stimps…, Agent, Morganville, NJ
Wed Dec 30, 2009
As stated there are way to many variables in a situation like this. I have seen homes like this in perfect condition as well properties that have everything removed from the home by the previous owners.( And I mean everything) Get good legal council as well as an Agent to help you formulate an offer after all information has been gathered. That being said East Freehold is a great place to be, Best of luck
0 votes
Francesca Pa…, Agent, Manasquan, NJ
Tue Dec 15, 2009

Questions to u would be:

(1) Is it currently listed on the open market (i.e, the Realtors MLS)
(2) What are the current market comparables in the area?
(3) R u refering an adult community or residential proper?

Feel free to contact me direct for more direct advice. Just because it foreclosed @ $700k, doesn't mean that is the actual value, especially in the Freehold Area as the preferred schools do make a diffrence.

Francesca, ePro, SRES
732.606.2931 (24/7)
Coldwell Banker Residential Brokerage
Web Reference:  http://www.PatrizioRE.com
0 votes
Jeff K, Home Buyer, Bristol, PA
Mon Dec 14, 2009
Hi Bob,

Unless you need to live in NJ for commuting needs, consider PA. Your money will go much further. You'll pay HALF the income tax 3.07 instead of 6.37 and your property taxes will be less then half. In short, you can have an amazing luxury house with great school systems in places like New Hope, Yardley, Newtown (lower Bucks County). And you'll be saving $10,000 or more per year towards retirement / college funds, etc.
0 votes
Alice, , Middlesex County, NJ
Mon Dec 14, 2009
Dear Bob,

You received some great advice from the realtors below. Having an office in Freehold NJ and doing several foreclosures as an agent. It really depends on what the lender has set as the bottom line. If you are working with a real estate agent usually the listing agent will have that information for your realtor. Today is a great time to buy. However the bank wants to make as much of their money back as possible. If you require some help in negoiating I would be happy to look into this further. You can find me on Main Street in Freehold. Or just call Orange Key Realty anytime.

Good Luck,

Allie Matthews
Orange Key Realty
60 E. Main Street
Freehold, NJ 07728
732 863-6969 office
732 718-6515 cell anytime
0 votes
Pamela El-Gh…, Agent, Manalapan, NJ
Sun Dec 13, 2009
Hello Bob,
It is difficult to say what to bid without looking at the home/community and ofcourse comparible homes in the same condition. I am sure your realtor can assist you with a CMA and bid accordingly. You really should have your realtor provide you with a CMA, if not already done. General rule of thumb, if the home was on the market for a short periodof time and there may be other offers on the table, submitting a high offer if not the asking price is not unreasonable. If you want to gamble and submit a low offer, you can see what happens. I have had banks counter offers in the past. Please keep in mind, banks price homes at a price they know will move and are generally below market value. Good luck to you and I hope this helped you.

Best Regards,
Pamela El-Ghoul
Weichert Realtors/Freehold
Office: 732-577-0440
0 votes
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