That listing price might reflect the current market price for that house. Look at some recent comps in the area to base your decision off that. All bank owned properties have their share of 3rd party opinions to justify the list the price but in the end it comes down to what the market is willing to pay.
Solution; some banks require that the offers are presented by the selling agent on their web site. Smart! Many do not.
The buyer(s) may call loss mitigation dept to make sure the offer is presented. Put notification in offer. I.E. "Should this offer not result in a contract, Buyer(s) shall check with bank to verify receipt."
If the bank finds out offers are not submitted by their listing agent, the agent will lose all listings.
It is a shame a very few ruin it for all.
You didn't mention if you were going to make the repairs out of your own funds or take out a loan at time of closing? I have found that sometimes the banks will make some repairs, but it will require you or your agent to get 3 bids, and the work be done between your final underwriting approval for financing and the actual close date. Depending upon the type of work, say, a new furnace, which can usually be done in a day or so, I would space it out about at least a week between the two.
RE/MAX Realty 100
"Helping people make smart real estate decisions for over 28 years"
(651) 457-HOME (4663)
My issue with the 203K program is that buyers have taken out those loans in the past to improve their homes and tried to turn around and sell them again too soon. Because of the appraisal is a snapshot in time of the value to be realized with the improvements done. Problem is, we've been experiencing a downward adjustment for over a year now. So, as long as you plan on living in the house for a while, a 203K loan might be a good option for you.
As far as a good offer, I agree with all of my colleagues here, that's the kind of information you can get from your REALTOR you've hired to represent and advise you about how these types of transactions go. The only way to find out what any seller would take for a house is to make an offer. Any agent worth their salt is not going to tip the hand of their seller without an offer in writing.
The first thing we would recommend is determining what the recently sold comps are for this home in your target area. This should give youn a feel for if the home is priced high, low, or just right.
Once you have an understanding if it's priced accurately you are in a better position to start making pricing adjustments.
The bank or sellers will say thae the condition of the home is reflected in the asking price. Weather or not you believe or accept this will be supported by the comp information you have gather on the home.
It is fair and reasonable for a buyer in today's market to come in $20,000 under the asking price. Weather or not it is accepted is another issue.
The "Eckler team"
Working with your agent to purchase the home is your best bet. It really is hard to answer your question without a lot more information. Lean on your agents advice but make sure you have a good one to help you in this transaction. Not all agents understand the foreclosure process. Ask your agent point blank how many foreclosure transactions that I have transacted in the past 12 months. If you aren't impressed with the answer, find another agent who knows more about working with banks.
Keep in mind that the $20K in repairs needed may or may not have already been factored into the price. It is automatic that you just get to reduce that from the asking price because it needs the work. The operative question is, based on the comps what would the house be worth fixed up? From that number deduct the cost of repairs and that is what it is worth in its present condition. Your agent will be able to help you find comps for the property.
What a good offer is in your case depends on how competitively the property is already priced and how long the property has already been on the market. The longer the property has been on the market, the more likely it is that the bank will be open to all offers.
No, the Realtor cannot find out what the bottom line is. It doesn't hurt to ask, but the listing agent will most likely not know as banks don't reveal that kind of information and even if the agent knew, he/she would not be able to divulge that kind of information. The bank is no different from any other seller. If you were a seller, you would not want your agent to make that information available, right.
Good luck to you.
If a bank is the seller, a bank will take $151,900. The bank is just like any other selller... they will not tell you their bottom line... would you in their situation.
Have the agent representing you write up an offer in good faith based on the comparables and what you are willing to pay and make the offer. Banks will counter if they don't like it.