I want to make an offer on a home that is bank owned, but not sure what would be best.

Asked by Pearl, Hesperia, CA Tue Sep 16, 2008

It is listed at $134,000. The bank that has it now says they have only had it on the market for 3 days, but really its been on the market for 3 years. I would really like this home, but not sure what would be a reasonable offer? It needs some repair.

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7
Bill Eckler, Agent, Venice, FL
Tue Sep 16, 2008
Pearl,

Contact a local real estate agent to get you started ASAP. If it has appeal, and it sounds like it does, other people may be going through the same thought process as you. An agent could help you be first in line......

Good luck
0 votes
Leonardo Mon…, Agent, Palm Springs, CA
Tue Sep 16, 2008
Hi Pearl,

From your posting i assume the house was listed for 3 years prior to being reo. In my experience you should contact a realtor to help you put the best offer for you. The reason i say that is that i am currently representing the seller in 3 short sale properties. Once we priced them very competitively we got an excess of 6 offers on each one. The Bank will of course take the highest one. If you are the only offer in the table then you can put at or below asking and see if it flies. One important thing to know is that either with a high or low offer you are looking at a transaction that will take months to close. Banks are overwhelmed with offers and counter offers and are anxious to get them out of their portfolios before the end of the year. So there are good chances for you to get it for a good price. Good luck.
Leonardo
Web Reference:  http://www.leonardoteam.com
0 votes
Teresa Workm…, Agent, Redondo Beach, CA
Tue Sep 16, 2008
It is sometimes frustrating dealing with foreclosures. This home was most likely in the "Short Sale" status for several months. It has now moved to the "REO" real estate owned status. The reality is the bank will consider offers but they are very particular about how the offers are presented and what is required. This is why it is best to have a Real Estate Agent working for you. Remember, the seller pays the commision so there is no down side for you to have a professional helping you. It is best to be pre-approved with the Lender that owns the home. Sometimes the bank requires it. The bank is more likely to pay for some or all of your closing costs then making repairs. Many foreclosures are "AS IS".  Also, if the home is in need of major repairs, it may not qualify for some loans...ie. FHA.The Lenders  are more inclined (in my experience) to accept an offer 3-5% under asking and ask for a credit for closing costs. However, if the comparables (other homes in the same area, same sq. footage etc.) are priced below this, you may want to offer a lower price.  AGAIN...a Real Estate Professional would be of great help and value to determine this.I feel it is very important to have patience. REO can be trying but are def. worth it for the right property.Please feel free to contact me for any questions regarding this it is not in my area, but I can recommend a great agent  that would love to guide you through the process.Thanks and good luck!
0 votes
Scott Godzyk, Agent, Manchester, NH
Tue Sep 16, 2008
They are only going to look at the fact they have only had it 3 days. Your best bet is to get a buyer broker who can guide you on what proprerties are selling for in this area and what is a fair price. You should be able to negotiate that they get paid through the cobroke fee being offered by the listing agent so you do not have to pay anything more. The one thing you should remember or note when buying a bank owned unit is to make sure you do your inspections prior to bidding as the sale is usually as is and you can not renegotiate after the bank accepts an offer. Make sure your deposit is at least 1 percent of the sales price and your deposit is in certified funds or a bank check, make sure you submit a pre approval letter with your offer and be ready to close within 30 days. the most important this to get your offer a better chance of being accepted is not contingincies, do not ask the bank to fix anything and if you ask for any money or credit back towards closing costs, make sure you add it to the price. Good luck.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Eric Israel, Agent, Orange, CA
Tue Sep 16, 2008
It may have been on the market before as a regular sale or foreclosure, but now it is bank owned and on the market only 3 days. Bank owned homes down here in Orange County are averaging 95% of their asking price and many are going higher with multiple offers. You can click on my web page for more information on bank owned homes.
0 votes
Amy Steele, Agent, Crestline, CA
Tue Sep 16, 2008
It was on the market for three years most likely because the homeowners were trying to sell it for that long, prior to it going back to the bank. You need to get a Realtor to get some comparables in the hesperia area( which I can help with if you'd like) and then make your offer accordingly. Many bank owned homes however are selling for list price and in a matter of days, it all depends on the home, the condition, location, amenities, etc.
Good luck!
0 votes
CJ Brasiel, Agent, San Jose, CA
Tue Sep 16, 2008
Pearl -

Find a real estate agent and have them work the comps for the area and determine a value based on less than 3 month market activity. Subtract the repairs. Determine the value you would be comfortable with and make an offer. Another way is pay for an appraiser and be there during the appraisal to hear their comments.

Good luck!
CJ
Web Reference:  http://www.TalkToCJ.com
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