Home Buying in 92009>Question Details

Amy, Home Buyer in Oceanside, CA

Can you offer less than what a bank is asking for a foreclosed home?

Asked by Amy, Oceanside, CA Thu Jul 10, 2008

Help the community by answering this question:


Generally speaking all asking prices for foreclosed-upon homes are negotiable and are a starting spot for negotiating. However, a "low-ball" offer, particularly on a newly listed property, usually won't be successful. In my experience, reasonable offers are the wiser starting spot. They usually are able to be negotiated to a successful conclusion. Be sure to know your stopping spot in the offer process and be sure you aren't "upside down" in the property after the cost of any repairs and updating is added back into the final purchase price.
0 votes Thank Flag Link Thu Jul 10, 2008
Generally, yes, but if there are multiple offers on the home, you could lose out on it. Or, if you come in low and leave it out there too long while each party negotiates, someone else could come scoop it up.

Listen to the advice of your agent.

Syan Real Estate
Call/Text: (505) 730-8181
New Mexico Real Estate: http://www.syan.com
Web Reference: http://www.syan.com
0 votes Thank Flag Link Mon Mar 24, 2014
Amy ,
You can offer whatever the price is that you are willing to pay and think the property is worth to you as a Buyer. The bank can counter offer you what they think the property is worth to them and they typically ignore low ball offers and most of the time counter highest and best price to all parties who sent an offer.

Best Wishes,

David R. Indermill

Re/Max Hall Of Fame, CDPE | Since 1998 | Luxury Real Estate Advisor
International Referrals | Bank Owned Assets | Off Market Properties
Large Cash Investor Fast Close Network | B.R.E License # 01232827


Cell: 858-414-LIST (5478) Texting OK
Fax: 858-430-5544
Email: david@sandiegohomestore.com

0 votes Thank Flag Link Thu Mar 20, 2014
You can always offer what you think the house is worth. Sometimes banks are represented by agents who are not familiar with the local area and they may over or under price a house. A good realtor with local knowledge will help you with pricing based on market conditions.
The bank may also be looking for a cash offer or a buyer who is ready to go and pre approved. That can misrepresent what the house is really worth.
0 votes Thank Flag Link Fri Mar 14, 2014
You may offer less but the bank will obviously accept the price of the highest bidder unless it is a buyers market. It really depends on the location and the condition of the house. If both are in mint condition, the bank would insist and get quotes for its asking price; else they would be willing to take a hair cut.
0 votes Thank Flag Link Thu Nov 28, 2013
As with all things 'real estate', everything is negotiable. Hire a good Realtor® and they'll help you with value questions. Good luck!
0 votes Thank Flag Link Thu Nov 28, 2013
You can always offer less, including on traditional and short sales. Perhaps the more important question is, SHOULD you offer less. It all depends on the local market, inventory, demand from other buyers, what you can afford and, bottom line if you want the house. And of course what the bank wants based on their own research.BPO/appraisal. Do your due diligence with your REALTOR so you have a strategy and are not just guessing.
0 votes Thank Flag Link Thu Nov 28, 2013
It all depends on the market in the area the property is located. This is one good example of why working with a local realtor is a smart move. You're realtor would be able to expertly advise you in the best strategy for placing an offer on a foreclosed property in their area.
0 votes Thank Flag Link Thu Nov 28, 2013
Sure you can, especially if you enjoy wasting time on low ball offers.
0 votes Thank Flag Link Thu Nov 28, 2013
This question was asked by Amy on Jun 10, 2008
Mike, you are right, without knowing the market value one can not suggest the probability of success.
0 votes Thank Flag Link Thu Nov 28, 2013
Yes, you can, but you need to know the value of the property. If it is priced correctly, you don't want to waste precious time by offering less than the asking price. There will be an informed buyer ready to snatch it up. Keeping your informed, and up to date on values, is your agent's job.
0 votes Thank Flag Link Thu Nov 28, 2013
You sure can. But will you get the offer?

You might, I have done that, for my customers when I was working as a buyers agent.

Making offers is really less complicated than you would think, but almost no one knows how to do it correctly.

If there are going to be a lot of offers on a house, writing a low offer is really just a waste of time. If there are no offers on the house, say it has been on the market for a couple of months, write that low ball offer.

It really is that simple.
0 votes Thank Flag Link Mon Jun 17, 2013
You can absolutely offer less. Just make sure you do your homework so you don't waste your time with an offer they would not even consider. Good Luck
0 votes Thank Flag Link Tue Aug 9, 2011
You can offer whatever you want--however, do your homework and learn what other similar properties are closing for in the immediate area--ultimately the bank decides what offer to accept/reject/counter. How badly do you want the property--if it's the "one" don't shortchange yourself by making a low offer.

0 votes Thank Flag Link Tue Dec 1, 2009
Good work to some other Realtors and agents who have provided good information here. Please hire a qualified Realtor agent and find out through that person about comparable sales in your neighborhood and area. You must have all possible facts availble about the home, the neighborhood, sold prices, history of trends, the CA real estate market in general, the HOA for the home, to make a good decision about an offer and then proceeding with the purchase. Best wishes.

Harrison K. Long, Realtor agent and broker, Coldwell Banker Previews.
0 votes Thank Flag Link Sun Nov 30, 2008

As in any buying situation the buyer can make any offer he or she wishes, but then you must deal with the consequences, namely not getting the home you desire if the offer is not acceptable. In most cases there are multiple offers on foreclosed homes so you are dealing with competition, which can bid up the sales price (while many REOs sell below asking, although not significantly so in most case, but many sell over). The bank will decide what they are willing to accept on the basis of a BPO (Broker Price Opinion) or more than one which will be based on comparable sales. The ability to negotiate will also depend on the bank itself and who is responsible for the final decisions, along with what the other offers are.

Understanding the comparable sales in the area will help you and your agent make an informed decision, and of course your agent should be in touch with the listing agent to gather as much intelligence as possible before making an offer. You will also want to consider the home and its condition in your thinking about what you are willing to pay.
0 votes Thank Flag Link Mon Nov 17, 2008
Absolutely....you can offer anything you want but a lower offer may seriously damage your chances of obtaining the property.

Our advice to individuals in your situation is:

If you really, really like the home and this is THE ONE. Make your first offer your best offer because of the home is desirable you probably will no have a second chance to improve your initial offer.

Hope this is helpful. Good lick.
0 votes Thank Flag Link Sun Sep 7, 2008
As a buyer, no one can tell you what to offer for a home but I will tell you that REO track records show that they are hoping for close to list price. I advise staying within 90% of the list price. At least they will know youa re serious and will counter you if you are not near the bulls eye yet.
0 votes Thank Flag Link Sat Sep 6, 2008
Hi Amy,

You can always offer less. In fact homes that are already owned by the bank (and not a short sale) are much more negotiable. Short sales usually list for less than the bank is willing to take. They can be a dissapointment for buyers who do not anticipate this. One big drawback about bank owned to look out for is, banks are not required to disclose problems with the house such as bad plumbing, electrical or roof that regular sellers are required to disclose. Get an EXCELLENT inspection before you complete the purchase.

Good luck!
0 votes Thank Flag Link Fri Aug 29, 2008
Hi Amy,

As I represent both buyers and sellers of foreclosed homes, I have seen how the banks react to various offers. As noted already in the other answers, you can offer less and that would be the typical scenario. Whether that offer gets accepted or not is dependent on many factors. A good buyers agent may consult with the listing agent, and based on the buyer's agent's market knowledge, offer you advice on what would constitute a fair offer.

And for those listings where you wouldn't offer less than asking price, keep in mind these recent bank owned sales in 92009 Carlsbad and 92056 Oceanside:
2934 Rancho Cortes: asking price $939,900, sales price $975,000
7598 Circulo Sequoia: asking $849,900, sales price $900,000
4787 Via Colorado: asking price $336,900, sales price $408,000
1330 Calle Goya: asking price $343,900, sales price $380,000
0 votes Thank Flag Link Sun Jul 13, 2008
You can offer anything you like however not adviced reasonable offers are your best interest and most foreclosures can be in a bidding war. http://www.lynn911.com
0 votes Thank Flag Link Thu Jul 10, 2008

Dee is right. It is liking buying from any other seller than you can offer what ever you feel to be fair value. However, I have been in a few offers where there were mutilple offers on the property. An agent in my office told me about one that had 15 offers on the property. If you are working with an agent, you should have your agent try and reach the listing agent to see what activity is on the property.

I usually do this for my clients and a CMA to see that they make a offer that will get them countered, but not over pay for the home. If you need any help, please don't hesitate to contact me Catherine Barden at 760-815-3866 I am a north county real estate agent. Or visit my website, with information about foreclosures.

Good Luck!!!
0 votes Thank Flag Link Thu Jul 10, 2008

As with any listed property, you can always offer less than the asking price. The real question is, what is the market value of the home and how much do you want it. If you really like the home, offer close to or at market value. If you are looking for a deal, offer what you are willing to pay and be ready to make multiple offers before you find a bank willing to accept the amount you are offering.

Good luck in finding a great home, at a great price and negotiating a great deal; and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Thu Jul 10, 2008
Amy, the price on a bank-owned property is the same as any other listing price.... it is negotiable! However, we are starting to see a homes in good condition and the right price having multiple offers. That may bear on what you'd want to offer on the home. If you wish further information, just give me a call at 619 742-0046 (cell) or email at DeeMarie@SellingProperties.com
0 votes Thank Flag Link Thu Jul 10, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer