As a foreclosed home is price firm?

Asked by capecod_sweetie, Payson, AZ Tue Oct 25, 2011

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Jon Bright, Agent, Payson, AZ
Tue Oct 25, 2011
Hi Again Capecod Sweetie:

In the Payson market the average selling price of foreclosures in this price category is 95.3% of asking price. So most likely this property will sell for around $65, 600.

Offers under 90% of the asking price are usually not considered by the selling bank and if countered, the counters are very close to the original asking price.

Hope that helps,
Jon
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Scott Godzyk, Agent, Manchester, NH
Tue Oct 25, 2011
Once the foreclosure is complete and the bank takes ownership of the house, they will have the property appraised. Some banks will discount that price and others may price it at retail. you need to assess what the house is worth in todays market less any repairs and base your offer on that.

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…


Please see my blog with tips and advice on buying a bank owned home.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Oct 25, 2011
You may see that there is some flexibility:
There are a lot of Banks out there, and those banks are managed by Human Beings: yes, it's true.
Often, the person at the Bank is dependent upon the people in the field to give them information. Sometimes that information is slanted, sometimes incomplete. Sometimes the Bank will tell the Listing Agent what to LIST the property for, and sometimes the LISTING AGENT will be free to do as they wish.
Sometimes the LISTING PRICE will be set low to attract multiple buyers, and sometimes it will be higher than the COMPs.
When the Listing Agent submits an offer to the Bank, they may include an updated set of COMPs so that the person at the Bank can make a determination. Sure the Bank wants to MAX their income, but they know that there is a limit. Specifically, the APPRAISAL has to cover the Offering Price.
This is where it all comes together: If the Appraisal does not cover the Offering Price, then the Bank will not be able to sell the house, and the Max Price has pretty much been determined.
So, you may offer $50,000 over the LISTING PRICE, but you won't be able to buy the house, unless you are making a a CASH OFFER. The Loan will not be covered.

The Key to getting to that point, is to have your Agent do a good CMA, so that you will know how much to offer.

Good luck and may God bless
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Tim Moore, Agent, Kitty Hawk, NC
Tue Oct 25, 2011
If it was foreclosed, it is no longer a foreclosed home but a bank owned one now. The bank usually prices it at or below market price and they don't come off their price by much, usually. But you can always offer less and take a chance they will accept it or take the risk someone else will swoop in with a better offer and grab it. I have seen many bank owned homes sell for more than listed price to buyers who realize the value is there.
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Karen Parsons…, Agent, Laguna Beach, CA
Tue Oct 25, 2011
Hi,

If the home is a bank owned property....the bank normally does price it close to what they are willing to accept. They will do price reductions as needed and then try and get close to that also. Your agent can see the price history of a home...if it's new on the market, and it's not your dream home, you might want to watch it and let it sit a bit.

Karen
0 votes
Bill Parker,…, , Scottsdale, AZ
Tue Oct 25, 2011
Good Morning Capecod Sweetie:

Your question is a bit cryptic, so not positive, but I think you are askingis if there is an offer price on a foreclosed property, is it open to negotiation...Short answer--YES. Go get it!! :)
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