REO/Bank Owned: When submitting an offer will they take offer below listing price. For ex list price 124,900 so wht shld starting offer be?

Asked by Lowscore, Fort Worth, TX Fri Nov 11, 2011

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Lowscore, Renter, Fort Worth, TX
Mon Jun 25, 2012
Hi John, No I found a better home but now facing funding issues. This has been the worst experience ever for me in buying a home but hopefully it all pays off in 2 - 3 weeks.

I was approved for loan back in march but with different issues involving sellers I finally found a house which was my third offer. It is now June was suppose to close on 6/29 but because my credit had been pulled so many times by the lender and they were hard hits. It lowered my score and so they are now unable to provide funding. The original lender has been so good to me she found someone willing to fund my loan so now crowsing my fingers it is processed quickly because my lease will be up soon.
0 votes
John Straub, Agent, Fort Worth, TX
Mon Jun 25, 2012
Hi
Just curious were you able to ever purchase the home? Best of luck to you and if you need further assistance please contact me directly.

Link: http://www.dfwfamilyrealty.info/mimarket/zip/76244/

John Straub
817-729-4281
john@dfwfamilyrealty.com
http://www.dfwfamilyrealty.info
0 votes
Lowscore, Renter, Fort Worth, TX
Fri Nov 11, 2011
Thanks all for the great responses. The house I am interested in is listed at $124,900 and the surrounding houses are going for $150,000 and above. The house has only been listed for about 2weeks now. I am tracking it and hopfully it stays on the market for a while. Not quite ready to purchase due to working on my credit but have spoke to a mortgage lender who states once I get my score up she can get me approved for $115,000. So my goal is hopefully no one is interested in this home and it stays on the market for a while. Atleast a month or two. Then I would like to go in with an offer of no more than $100,000. Do you all think that is reseonable. Although my mortgage broker that I am working with states she could get me up to $115,000 I really would like to stay below $100,000.
0 votes
Lowscore, Renter, Fort Worth, TX
Fri Nov 11, 2011
Thanks all for the great responses. The house I am interested in is listed at $124,900 and the surrounding houses are going for $150,000 and above. The house has only been listed for about 2weeks now. I am tracking it and hopfully it stays on the market for a while. Not quite ready to purchase due to working on my credit but have spoke to a mortgage lender who states once I get my score up she can get me approved for $115,000. So my goal is hopefully no one is interested in this home and it stays on the market for a while. Atleast a month or two. Then I would like to go in with an offer of no more than $100,000. Do you all think that is reseonable. Although my mortgage broker that I am working with states she could get me up to $115,000 I really would like to stay below $100,000.
0 votes
Ron Thomas, Agent, Fresno, CA
Fri Nov 11, 2011
You are assuming that the LISTING is some magical number:

I can assure you, having don't a lot of BPO's, that it is not!

The majority I have seen are 5-10% above Market Value, but,
it could just as easily be 5% under Market.

Doing a CMA with your Buyer's Agent will give you the best WORTH of the house,
and provide a guideline for you Offer.
You should take the CONDITION into consideration; the Bank probably did.

Good luck and may God bless
0 votes
Heather Wrig…, Agent, The Dalles, OR
Fri Nov 11, 2011
You will want to look at the comparables in the neighborhood. Most often the bank owned homes are priced below market value for quick sale and multiple bids. If their are multiple offers on the house and its something your really interested in, then I would make your highest and best offer. However, if its been on the market long with no offers then they may be willing to entertain a lower offer. Have your agent look at comparables in the neighborhood and go from there. That is my best advice.
Good Luck
Heather
0 votes
Johnny Huang,…, Agent, Walnut Creek, CA
Fri Nov 11, 2011
After reviewing the comps in the area, you should be able to tell whats a fair market sold price. If you offer should be close to those numbers.

REO lenders have BPO's that substantiate values in your area, so bid wisely.

Here's my strategy for my buyers...
if it's a new listing, expect close to listed price and I recommend buyers not get too greedy.

If the listing has been on the market for a while, and no other competing offers, bid 20% lower than listed. Who knows, the bank may just accept it!
Web Reference:  http://crosswalkrealty.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Nov 11, 2011
There really are no set standards as to how much below list price one should offer. In order to determine a fair offer review comps with your agent, recently sold similar properties in the immediate area; keep in mind that if it's listed on target, or slightly below, multiple offers may occur.
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