Can I offer 5,000 less than the asking price for a foreclosure?

Asked by Nawlinsatheart, New Port Richey, FL Wed Jul 4, 2012

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Amina Knutson’s answer
Amina Knutson, Agent, Alpharetta, GA
Wed Aug 22, 2012
It depends on the sale price and condition of the house. I've seen houses sold for more than asking price lately especially if the house is in a good condition and in great location.
Your agent will know and can help you with it.
0 votes
Melissa Hylt…, Agent, Atlanta, GA
Tue Aug 7, 2012
There is no rule of thumb when submitting an offer for a foreclosure. Your agent will be able to assist you a pricing strategy based on other factors such as Days on the Market, surrounding homes for sale, and the overall condition of the home based on the list price. With fewer homes on the market, it can sometimes become very competitive so you want to be certain that whatever your offer is, you are comfortable with potentially not getting the home if another buyer offers a higher amount.
0 votes
David Herren, Agent, Atlanta, GA
Tue Aug 7, 2012
Your real estate agent is the best person to ask. They can tell you how well priced the property is now. Most foreclosures are priced agressively, but some are over priced. If over priced, you might pay more than it is worth, if under priced, you might lose it to a higher bidder.

Best,

Dave Herren
Best Atlanta Properties
404-424-4945
0 votes
Edith Karoli…, Agent, Winnetka, IL
Thu Jul 5, 2012
As a general rule, as a buyer you can offer what you feel is fair, in your consideration. But how did you
come to the conclusion/decision? Are you working with an experienced short sale and foreclosure
Realtor to have professional advice concerning market value of homes in general.

When it comes to foreclosures the banks make their own rules kind of depending on each situation, property, and their entire portfolio of short sales and foreclosures....

Get a good buyers agent who is experienced in the short sale and foreclosure process to guide you..

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com Check out my website at htttp://www.tinyurl.com/MeetEdithHere
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
.
0 votes
Gary Kaupman, , Ellijay, GA
Wed Jul 4, 2012
I agree with what everyone has said, but would add this: Every bank has it's own way of looking at a specific property in the context of both their entire portfolio of foreclosed properties as well as the regulatory environment in which they operate.

Finding a Buyer's Agent who understands both the market and the bank/government agency will get you more good answers on a specific property in 15 minutes than reading 1500 answers here.

Best of luck,

Gary
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Wed Jul 4, 2012
Technically, you can offer whatever price you want for any home. Whether or not the seller well accept it is a completely different matter. Many properties here are seeing multiple offers made. Some are selling at above list price right now. Submitting too low of an offer may mean that you lose out to another buyer.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference:  http://www.rodneymason.com
0 votes
Laquita Baez, Agent, Atlanta, GA
Wed Jul 4, 2012
And on the other hand, you may not want to pay extra attention on how much you are offering for HUD bids and in any highest and best situations.
0 votes
Laquita Baez, Agent, Atlanta, GA
Wed Jul 4, 2012
Of course you can. But the seller is in no way obligated to accept. Working with a Realtor can work in your favor by having them analyze the comparables in your desired neighborhood to come up with a good and resonable offering price. Best of luck!
0 votes
Tony Teixeira, Agent, Atlanta, GA
Wed Jul 4, 2012
I agree with all those who have commented before me. Work with a realtor and get them to show you what the comparable sales have been in the area. If this house is already well below those levels, and it's in good condition, it's probably already priced appropriately. The market is stabilizing and inventory is very low. You should be prepared for a multiple offer situation and don't be suprised if you have to pay more than the asking price in order to secure the house.

You will also want to be sure that you use a reputable closing attorney and title company. They will do the research to make sure you are buying this with no suprises down the road, like an undiscovered lien on the property.

Good Luck!
If you need any assistance, you can call, text or e-mail me any time.

Tony Teixeira
Muffley & Associates
2011 Top Selling Groups in Atlanta
Top 5% ABR 2004-2011
ABR, CRS, RCC, CBR, E-Pro, REO Certified
CDPE (Certifed Distressed/Foreclsoure Property Expert)
Certified Luxury Marketing Specialist, Who's Who in Luxury Real Estate
http://www.muffleyhomes.com
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Jul 4, 2012
Buyer in New Port Richey, FL
Foreclosures are sold many different ways here in the Tampa Bay area. The two most common are:
1. Scheduled reduction
2. "Highest and Best"
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Knowing the strategy that would be most successful for you requires knowing which model is in play.
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Knowing which model is in play, you can also predict what the next step will be.
Having knowledge of the next step requirement, and it most certainly will occur, allows you to be strategically positioned to take advantage of your investment resources and bid or submit as the situation dictates.
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As others have said, you can offer anything you want. But $5,000 less on a 'Highest and Best' scenario has ZERO chance of success or even getting a response from the seller.
However, to reach a beneficial outcome, you really need a strategy.

Pat, is that you?

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041 - http://www.RealEstateMadeEZ.us
0 votes
Marcus Cutro…, Agent, Fort Mitchell, AL
Wed Jul 4, 2012
offer less or make sure you ask them to pay all buyers closing costs
escrow and loan fees ( about $5,500) to lower your out of pocket costs
0 votes
Hank Miller, Agent, Alpharetta, GA
Wed Jul 4, 2012
Offer based upon where the market is and where you expect it to go, what the home requires and how it fits your requirements.

Then get ready for a multiple offer situation.

Hank
Web Reference:  http://hankmillerteam.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Wed Jul 4, 2012
Not sure what you mean by a foreclosure. Do you mean a house that had been foreclosed and is now a Bank Owned home? Of course you can offer less, you can offer a dollar but be ready for the bank, or who ever the owner is, to say NO. If it is a bank owned home they usually price them pretty aggressively to begin with and don't drop below listed price by much.
0 votes
Michelle Gon…, Agent, Los Alamitos, CA
Wed Jul 4, 2012
You can offer whatever amount you like. It all comes down to the bank choosing the best offer.
0 votes
Don Tepper, Agent, Burke, VA
Wed Jul 4, 2012
Sure. Of course. But you really should determine what the property is worth, rather than using the asking price as a starting point.
0 votes
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