How much should I counter offer with a bank? I've been reading on many sites that a bank will automatically

Asked by Jennifer, Springfield, OR Fri Apr 25, 2008

counter-offer. How do I know if it's actually another person? There was no other offers or potential offers until the moment ours submitted, and when my agent asked them today at 10 to 5 they said one just came in and now we have until 4pm monday to counter it. We offered $110,000 for a house listed at $99,900. We are including all of our costs (closing etc) in this. What should I do?

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Jason Sandqu…, , Minneapolis, MN
Thu May 1, 2008
Unfortanately this has happened to me before on a property that my client wanted, but this involved 4 offers. Crazy, I know. Consult with your agent, make sure you aren't over paying on the property.
1 vote
Don Tepper, Agent, Burke, VA
Fri Apr 25, 2008
As with any other negotiation, how much is the house worth? And how much is it worth to you?

Further, how do you know what the other offer is? Could be the other offer was "full price" at $99,900. Or somewhat higher, but not $110,000. Be careful you're not negotiating against yourself: Your competitor bid $99,900, you bid $110,000, and now you're raising your bid.

So, figure out what you're really willing to pay. Make sure you know what the house is worth. Then submit a bid at the lower of those two amounts.

Hope that helps.
1 vote
Todd Norsted, Agent, Maple Grove, MN
Sun Apr 27, 2008
Jennifer, I'd have an agent work for you that has short sale and foreclosure experience. All transactions are different and the insight of a qualified agent will be invaluable.

Thanks, Todd Norsted
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Michael Doyle, Agent, Brooklyn Park, MN
Sat Apr 26, 2008
Without knowing what the house is worth it's impossible to know how much to counter. Have your agent do a market on what the house is worth now and what it will be worth once you repair it. Don't go over 80 percent of what the CMA says to worth right now.
Michael Doyle Realtor
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Jason Tangen, Agent, Sauk Rapids, MN
Sat Apr 26, 2008
I have only had one foreclosure (of 8 here recently) where the bank didn't counteroffer in some way. I guess that the averages for my case would say that the majority of banks are usually counter offering if the offer is in any way under asking price.

I have never had a bank counter offer if the offered price is more than the asking price. In this case, they have always just taken the best offer available. I have only had two clients offer over asking price on foreclosures. One got the home, the other did not.

Ultimately, as already stated, what is the home worth and what is it worth to you. Those are the most important figures.
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Jennifer, Home Buyer, Springfield, OR
Fri Apr 25, 2008
I also wanted to add, in reviewing different opinions on many websites, it's fairly common for a bank to automatically counter offer. I know that they have a price in mind, I'm thinking since they didn't reject it, we still have a shot. I'm looking forward to hearing other people's past experiences and ideas!! (I get to mull over it all weekend now!!!)
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