Home Buying in Charlotte>Question Details

Sam, Other/Just Looking in Charlotte, NC

If a buyer is interested in making a offer on a foreclosure or a property up for a shortsale; is there room for the REO to negotiate with the banks.

Asked by Sam, Charlotte, NC Tue Feb 7, 2012

Help the community by answering this question:


The answer is yes on both REO and Short Sale. However on a short sale it will take longer to get an answer from the bank. When the offer is submitted it is typically handled by an assistant who can't make a decision on the offer all they can do is push the offer up the line. If there are more than one lean holder the process on a short sale can easily be doubled. I prefer a foreclosure they are more straight forward and you are only dealing with one person who can make a quick decision on your offer. It also is good to note that most banks are discounting the home upfront to draw attention to the property. Historically in my area a foreclosure on the asking price is 10-12% below traditional resale and the banks usually will take another 5-10% off. If I can be of any further assistance please contact me.
2 votes Thank Flag Link Tue Feb 7, 2012
Hello Sam,

I'm not 100% sure what your question is, but if you're asking if there is "room" for negotiation with the banks on an REO (foreclosure), then there are many answers to that question. It really depends, especially if the property is a nice one in a nice area that is nicely priced! There may be multiple offers and that is when you and an aggressive buyer agent like myself can sit down and explore the options.

The bottom line is everything is negotiable in real estate. You just need a smart, knowledgeable Realtor on your side to work for your best interest.

I hope you find the above helpful. Let me know if I can be more so.

Belinda Agosto
Hines & Associates Realty

Charlotte's Premier Website: http://www.CharlotteHomeConnect.com
2 votes Thank Flag Link Tue Feb 7, 2012
As one of the top ten market share brokers in this region, I can tell you yes BUT..... It's more complicated than just a yes or no answer. I make my living helping people snap up reo's, huds, short sales and estate sales. If you want some help, let me know if you're prequalified first. THAT will be where the rubber hits the road first.
1 vote Thank Flag Link Wed Feb 8, 2012
Good morning Sam.
Your terms seem to be mixed.
Making an offer on a foreclosure is what we do on the courthouse steps. It is a one time event.
Making an offer on a short sale does involve negotiation, but the ultimate sales price depends on what the Seller's lien holder (lender who made the loan) is wiling to accept.
REO means real estate owned. It is broadly used to describe property owned by a lender which has bought the property at a foreclosure sale or acquired it through deed in lieu.
Many bank owned, government owned and other distressed properties in Charlotte are currently selling under multiple offer situations. They are generally selling below market value. How far above or below list price we recommend depends on the situation. We negotiate all the time on every deal. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.
1 vote Thank Flag Link Wed Feb 8, 2012

on a foreclosure there si room for the banks to engotiate. they full expect you to neogtiate on the price fo the house...Rarely do you see someone come in and offer full price for the house.

On a short sale it si a little more tricky. it depends onw ehre the bank is with teh offer. If you are making an offer ona short sale you can offer whatever you like. However; if you are looking at a short sale that the bank has alrweady approved and come up with a price on then you probably are goign to have to be very close to that number to get them to accept anything less.

Dave dicecco
Web Reference: http://www.davedicecco.com
1 vote Thank Flag Link Wed Feb 8, 2012
Hi Sam,

I think your trying to ask....Is there room to negotiate on the sales price of a listed short sale or Foreclosed (REO) home. If I'm correct in narrowing in on your question, then I would say you never know until you write up an offer. In this market not all homes listed will sell for the stated list price of a property. I would suggest contacting a local agent to represent you and assist with submitting an offer. A buyers' agent will research the market and will be able to provide you with important information that will allow you to make an educated offer. One of the first things you may want to find out is if there are multiple offers.

Happy House Hunting!

Erica Texada
1 vote Thank Flag Link Tue Feb 7, 2012

Are you currently working with a buyers agent? If you are not, you should get one. The sellers pay the commission so it would cost you nothing to use one in helping with purchasing your home! Contact me directly and I'd love to help with negotiating for you!

John Siddons
1 vote Thank Flag Link Tue Feb 7, 2012
1. Price Point makes a difference: Under $100k and you will likely have multiple offers on good properties.

2. Foreclosures by BANKS and Foreclosures by FANNIE MAE or HUD directly are handled differently.

3. Short Sales are Not the same as Foreclosures, since you are dealing with the Homeowner AND with the Bank.

4. Market Value as established by BPO (Broker Price Opinion) and the NET to the Bank are the key factors to determine the ultimate selling price. Banks don't just give the houses away.

5. Are you going to LIVE in the property, or is it for INVESTMENT? This is a HUGE issue with Banks and with Fannie Mae. They want to know that if they sell for a reduction in price, that you're not going to turn around and try to sell it right away.

Call or Text me anytime: 704-858-2345

I just helped a client buy a GREAT townhome in Matthews for $72,500. That's $51,000 less than it sold for in 2007. There is another one that needs some work that's just $59,000! Call me.
Web Reference: http://www.natewolf.com
0 votes Thank Flag Link Thu Feb 16, 2012
Things are completley different here. The last bank owned property I wrote on for a client had 10 offers. We went in $10K over the list price and didn't get it.
0 votes Thank Flag Link Wed Feb 8, 2012
The banks know what they need to get for a home. The listed price may or may not be anywhere near that price. There three agents that have offered their services. I would take them up on their offers. You need someone in your corner - especially in these types of transactions.

Also keep in mind that a short sale can take months to get an answer from the bank. Make sure that if you choose to put an offer in on a short sale that your agent knows what questions to ask the listing agent. This is extremely important to get the deal moving forward.

The short answer is, yes both are usually negotiable.
0 votes Thank Flag Link Tue Feb 7, 2012
Hi Sam,

You should really work with a buyer's agent who can help you make an offer on any type of property.

Mechell Harris
Allen Tate
0 votes Thank Flag Link Tue Feb 7, 2012
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