We recently put an offer in on a bank owned foreclosure. Our offer was less than asking with the thinking

Asked by DT83097, Michigan Tue Mar 25, 2008

that they would counter and we'd know what we'd have to work with. Before responding to our offer the list price dropped $6000. The counter was for the new full list price. This particular property has been bank owned for over 120 days and vacant for over a year and no other offers have been presented. We went back with our 'best offer' which is still below their full asking price. What is the likelihood, if any that they will be willing to negotiate?

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Melinda J. R…, Agent, Grand Rapids, MI
Tue Mar 25, 2008
DT83097, 120 days on the market in todays market is not too long. However, I think it is a good sign that they did just lower the price like Gary said. However, I do know that some banks once they make a price change they will not look at any offers for 10 days. The reason they do that is because they believe that it may cause some more action and interest in the property. So then after 10 days they will look and see how many offers they have if they have any. Realize that price reduction could have caused some more activity. If so you might find yourself in a competitive situation.

It is hard to say for sure if they will negotiate more. It might be a bit of a waiting game. The only way that you will know is by putting in your offer and seeing what they do.

I hope this information helps! Best Wishes!
Web Reference:  http://www.gomelinda.com/
1 vote
smith3gary, Agent, White Lake, MI
Tue Mar 25, 2008
DR83097, It's a good sign that the price was decreased $6,000. Please remember, the bank is trying to limit their losses and have plenty of time.

With any offer, the more facts you provide to back up your position the more chance you have negotiating a price less than the seller wants.
Web Reference:  http://www.mi-living.com
1 vote
DT83097, Both Buyer And Seller, Michigan
Sat Mar 29, 2008
Gary - In the listing it said you needed pre-approval through CW and $1000 earnest - but I guess naive of us we assumed we'd receive some sort of paperwork to do the preapproval (which we were not) and our realtor said the earnest money would not be necessary until they accepted the offer??? We are fully prepared with the $1000 - is this typically submitted with the offer or after it is accepted? We think the most we could offer is still about 5% lower than asking, but the house will need a new roof within 1-2 years. We are hesitant however to go that high because we're likely to be carrying 2 mortgages at least short term until we sell our own home.
0 votes
smith3gary, Agent, White Lake, MI
Sat Mar 29, 2008
DT83097, Welcome to our world.

Because the bank countered, your offer is being taken seriously. Please remember, the listing agent, foreclosure lawyers, and bank committee are all trying to get the best price and terms for the bank.

They have decided what an acceptable loss is for this home and you are not within that range (for either price or terms). What price and terms offer would you make and if turned down or overbid have no regrets and be glad you did not purchase this home?

Did the bank include in their addendums that you had to be pre-approved through CW? Did they include in their counter that you needed to increase your earnest money deposit?
Web Reference:  http://www.mi-living.com
0 votes
DT83097, Both Buyer And Seller, Michigan
Sat Mar 29, 2008
Well, they've simply "countered" - if you can call it a counter offer - with the full list price again. Any suggestions?? If I didn't mention it before this is a Countrywide home if that makes a difference. We're not sure where to go from here. We have been pre-approved by our own bank but haven't gone through CW because we can't find any contact information with the listing. We are in a good financial situation so the preapproval itself will not be an issue. Is it possible they are simply writing us off because we don't have their pre-approval? We feel like we're not even being taken seriously at this point. Should we go back with another offer, earnest money, etc.???? Any of your suggestions are appreciated. Our first home purchase was quick and easy so this type of situation is frustrating.
0 votes
Hi, , Virginia
Fri Mar 28, 2008
wait a while
whats the hurry
plenty of foreclosures in MI
and more to come

anyways

good luck
0 votes
DT83097, Both Buyer And Seller, Michigan
Fri Mar 28, 2008
Thanks Melinda and Gary for your responses. We're crossing our fingers that they at least counter with something for us to work with and not simply another "full price counter"
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more