Many bank owned properties are put on the market slightly below market value. In the current market we're seeing a lot of properties go quickly, above asking price. All over the news buyers are hearing "this is the last year before pricing will increase". Thus, buyers are upping their game!
The steps I take when representing a buyer on an REO are as follows.
1. Call the listing agent to see if any offers have been presented to the bank?
2. If so have any counters (addendum a's) been issued?
3. Are any offers cash or above asking (not all agents will hint about pricing but they will usually tell you this)
4. Do you plan on holding offers over the weekend (bank asset managers don't work weekends, not all agents will submit over the weekend)?
I will then run comps and send them to my cliesotho show the average sales price for closed comps over the last 3-6 months. The answers to the above stated questions, plus length of time the home has been on the market will impact an offer price dramatically.
Happy house hunting!
CA DRE 01338444