Alex, Home Buyer in Atlanta, GA

If a house is as is bank owned no disclosures, and they are asking 195K what is a lowest reasonable offer?

Asked by Alex, Atlanta, GA Sun Mar 30, 2008

Also note the house has a few noticeable repairs probably around 5000 to 6000, the bank is offering a $3500 dec. allowance and $5500 to help with closing.

Help the community by answering this question:

+ web reference
Web reference:


Eric Reid, Agent, Duluth, GA
Mon Mar 31, 2008
100,000 or less... oh wait you said reasonable...:) As your agent I would review the 6 month sales history of both Resale and REOs(bank owned) compare that to current comps again both Resale and REO.
That would be our base price. I would then order a Home Inspection, with that in hand I would sit down with my handy man / contractor and get a bid on repairs. Lastly I would look at days on market and deprecation of market value over time.
With all this information we then could look at what would be a reasonable offer. Once written I would make sure that all the above information was complied in such a way that the asset manager for the REO could quickly read it along with your submitted offer. When we sent your offer to the listing agent I would request that the whole offer be sent to the asset manager and that the “numbers” not just be entered into the REO offer portal.
Or we could just take a shot in the dark based on a gut feeling
3 votes
Joshua Jarvis, Agent, Duluth, GA
Mon Mar 31, 2008

I like Eric's Answer.

Lowest reasonable offer? Could be as low as $50K or could very well be $195K. Without an analysis on the property you'd never really know. It could be that every home in there sold for $400K, in which case, I'd be alright buying it at $195K. Or it could be that nothing has sold in there over $175K, which might cause you to re-evaluate the whole thing.

Good Luck.
2 votes
Hi, , Virginia
Mon Mar 31, 2008
find the price is was valued at in 2001
then take off another 10%
the bank will think this is unreasonable
they will be thinking differently in a year or so
right now the banks are trying to get help from the govt
free taxpayer money for their bad loans
probably not going to happen
when they realize this, they will be more likely to bargain
be paitient
prices not going up anytime soon
probably going down for at least the next 2-3 years
and atlanta is still declining according to the
S&P/Case-Shiller home-price index


good luck
1 vote
Natascha M K…, Agent, Alpharetta, GA
Mon Mar 31, 2008
In this situation it is best you have an agent who can send you the tax records because a bank is going to want to at least break even with what they have into the property. Without knowing this it is a hard question to answer. Many have the thought that a bank will take a huge loss however we have found that not to be true. They will usually get rid of a property for what they have in it, especially now.
Web Reference:
1 vote
Willie Acree, Agent, Decatur, GA
Tue May 27, 2008
Any offer is a good offer but good offers are not alway accepted. Contact an agent to get the loan payoff. This is a good start
Willie Acree
4073 LaVista Rd., Suite 373
Atlanta, GA 30084
Office 404-843-2500
Cell 770-896-7505
Direct Line 770-390-8018
0 votes
Jackie, , Brooks, KY
Wed May 21, 2008
There are few things that should be taken into account when making an offer on REO properties. Price, Taxes, Balance owed, time on the market, Comps, etc. Bank Owned properties do not have emotional ties, so negotiating the price down to your needs are what is important. Call me to discuss further. NO obligation. Just call.
0 votes
Montana Davis, Home Seller, Atlanta, GA
Sat May 17, 2008
I have a house for you that costs $100K, appraised at $150K (East Atlanta) call Montana 404-542-2897 for details.
0 votes
Lee Taylor, Agent, Decatur, GA
Tue Apr 1, 2008
An offer is never just about price, Alex.

Price, terms and time are the components of an offer.

When are you buying?

How are you financing?

Use a cover letter to explain yourself, then make the offer and get your real estate on.
Web Reference:
0 votes
Don Tepper, Agent, Burke, VA
Mon Mar 31, 2008
Eric's answer is the "right" way to approach it, and it's solid advice. However, for a quick, back-of-the-evelope approach, factor in Hi's method. It depends on location, of course, but in many areas of the country, prices are down to where they were in 2003. To protect against further price declines (which I anticipate), 2001 isn't a bad place to begin.
0 votes
Alex Wilkins…, Agent, Atlanta, GA
Mon Mar 31, 2008
Hey Alex,

Nobody can give you an educated answer without knowing more details about the home, the neighborhood, and if there are multiple offers. You should not have to wait for more than a few days with any bank to recieve an answer, unless the property you are making an offer on is a preforclosure/shortsale. It sounds like the property you are making an offer is a bank owned property. You should use a Realtor to help you figure out what the property may be worth, help you write up an offer, and make sure you have ways to do your due diligence without risking your earnest money. In these bank owned situations it is completely free for you to use an agent. The listing agents for the bank do not usually cut their commission at all because they don't have to. They are representing the sellers best interest, remember this. Get in touch with someone who will represent your best interest and who knows how to deal with these kind of properties. I have a lot of experience helping buyers negotiate on these kinds of properties. Let me know if you have any questions.

0 votes
James Dudley, Agent, Suwanee, GA
Sun Mar 30, 2008

I would be happy to help you with placing a bid on a property. In most cases you can get a good bit off the list price of the home, but you need to be prepared to know what your maximum bid will be before giving up the property to another buyer.

Banks work very slow and you can expect to wait up to 4-6 weeks to hear if your offer has been accepted. Banks will also consider multiple offers at a time and choose the best one. Strong financing helps you a great deal in these situations because the bank also considers how solid the buyer is and the percentage of the deal actually closing even if the offer is low.

I can help you estimate a great offer price and determine what the maximum you should offer on the home to profit from the transaction if this is an investment. Of course all home purchases should be considered an investment!

James Dudley
ERA Sunrise Realty
0 votes
Sharon Hardy, , San Luis Obispo, CA
Sun Mar 30, 2008
Location is important and inventory... if there is alot of stuff on market then you have wiggle room but if not there will be a bidding war. Banks usually ask for several broker price opinions (BPO's) from local realtors ( & in this crazy market not so local realtors) and an appraisal, so the REO's are pretty much on target as to the value of the property. Sounds like you need a good realtor. email me if you want a referral.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more