interested in buying a corporate owned home ASAP. help!

Asked by Yoyodoll, 21229 Wed Jul 7, 2010

I am interested in buying a corporate owned, sold as is home priced at $35,000. very interested in buying after visiting the home. few question; 1,can i negotiate the price? more like should I? I really want to take the home and it needs some work, so I hope the price I pay can be less than the listed price(but I m willing to pay asking price if bank says no). but if I give my offer to the bank what happens if it takes then weeks to get back to me, by then which someone else may already gotten the house with a offer just a little higher than mine?
2. I am paying cash, how does it work, and what's next after I decided I want to get the home?

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4
The Roskelly…, Agent, Gambrills, MD
Wed Aug 22, 2012
Hi Yoyo,

These are questions you should be asking of the agent that represents you. And one that specializes in the area where you are searching. Is the home reasonably priced for it's location and condition? A pro can help you structure a winning offer. I do know that many properties are moving quickly so if the value is there don't hesitate to give it your best offer right out of the gate. Best of luck.
0 votes
Daniel Johns…, , Mitchellville, MD
Sun Jul 11, 2010
Typically it is difficult to get the bank to accept a price lower than asking, at this point they are getting rid of inventory and have a number they are set upon. Your best bet is to offer the full asking price should you really want it. As far as keeping up with the contract's success that is where your agent would come in. Pick someone who is experienced in REO properties, they know how to put together the best contract and who to follow up with once it is submitted. Many banks use companies or agents to sell this type of property and it would be your reps job to contact them before, during, and after. Cash is typically preferred so that is good that you will be a cash buyer, many banks will take a cash buyer over one who uses financing because they prefer a contract with little to no contingencies (in this case it they'd prefer cash over a purchase contingent on financing). I am a short sale and foreclosure resource and I'm sure I can use that network to find you someone in Baltimore who has the experience you need should you be unrepresented. Let me know if you need a referral, my contact info is on my profile. Good luck!
0 votes
Don Tepper, Agent, Burke, VA
Thu Jul 8, 2010
Definitely get an agent. I don't invest in Baltimore, but I know a lot of people who do. And I get offers all the time for Baltimore properties.

Baltimore is a particularly difficult area to price. That is, prices can vary substantially block by block. $35,000 may be a good price for the property, or it may be way overpriced. Here, for instance, are some offers I've seen in the past couple of days:
~~~~~~~~~~~~~~~~~~~~~
CLIFTON PARK
16xx E 25th ST Baltimore MD 21213
For Sale $19,900
Set Up As 2 Units
Unit 1: 2 Rooms, Kitchen & Bathroom
Unit 2: 2 Rooms, Kitchen & Bathroom
Full Basement
Separate Duct Work For Each Unit
Separate Electric Panel Box For 2nd Floor Unit
90.00 Annual Ground Rent
~~~~~~~~~~~~~~~~~~~~
3 UNITS
13xx W LAFAYETTE AVE Baltimore MD 21217
$39,900
"Do I Have A Deal For You"
3 Unit Apartment House
Sandtown-Winchester
Property Is In Excellent Condition
Separate Meters & Furnaces
Unit 1 � Vacant
Unit 2- Rented $500.00
Unit 3- Rented $600.00
~~~~~~~~~~~~~~~~~~~~~
Move In Shape.
30xx RAYNER AVE Baltimore MD 21216
For Sale $34,900
3 Bedrooms
1 Full Bathroom
Living Room
Dining Room
Kitchen
Basement
Fee Simple - No Ground Rent
~~~~~~~~~~~~~~~~~
Those are just a few examples. That's why you really need to know what the house is worth.

Should you negotiate? If you're getting a great deal as is--if the property is worth maybe $70,000--consider paying full price. You certainly can negotiate--you can always negotiate--but, as you note, should you? The more you negotiate, generally the less likely it is that you'll get the property. On the other hand, if the comps are around $30,000, then yes, definitely negotiate.

Hope that helps.
0 votes
Dan Lobb, Agent, Waxahachie, TX
Wed Jul 7, 2010
Typically banks will give you a response fast if your offer is unacceptable. Its the borderline offers that take longer as they have to refer t a higher authority or there may be more than one institution involved. Many banks farm out the sale of properties to other institutions.
If you are paying cash they will want a verification of Deposit VoD which is your proof that you have the funds to buy the property.

I really suggest you get an agent to represent you - many institutional sellers will require that to avoid lawsuits. Ask the agent if they have experience with buying REO properties. Make sure you know who they represent before giving them any information that can be used against you in negotiations.
0 votes
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