Can I make an offer for less than the amount listed?

Asked by Scott, San Diego, CA Wed Feb 18, 2009

what is owed on the property

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Jeffrey Doug…, , San Diego, CA
Wed Feb 18, 2009
Seth has given you an excellent answer. I have written a blog post on offering on Bank Owned properties that you might find useful - please visit the web reference listed below.
1 vote
Seth Chalnick, Agent, Cardiff, CA
Wed Feb 18, 2009
This listing went pending in 8 days. If you would like to see the official MLS listing showing status, etc, just shoot me an email.

As a rule, everything in business is negotiable and you can make any offer you want. More specifically, here is the scoop on how the bidding on REO's usually works...

Some REO’s are priced artificially low when they go live hitting the market, to stimulate a multiple offer bidding war… and in those cases, if you and your agent have been truly watching that micro-market like a hawk, you’ll know the exact amount over list price you can offer to still get good value… and you should never sweat losing a deal to another bid higher than you feel comfortable making after doing due diligence.

That said, many REO’s do make it past the first 10 days or so… and then a few weeks, and then a few months. For these REO’s we can rest assured that the bidding war strategy is no longer in effect, so we can under-bid and, as a rule, the more cash and less borrowed funds you are using to close the deal... the bigger hammer we can swing on negotiations.
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1 vote
Denise Gleav…, Agent, Claremont, CA
Wed Feb 18, 2009
Hello Scott,

This property has been pending since 2/5/09, which means they have accepted an offer. They were only on the market for 8 days.

But to answer your question anyway, you can always make an offer lower than a listing price. However it is always best to see what other comparable sales are before making an offer on anything. This will tell you how well the property is priced for today's market. Many bank owned and short sale properties are listed way below the market price and will produce many multiple offers. When all said and done they will generally sell at market price. Your agent can advise you as to what is best when making an offer.

By the way, there is an active 2 bedroom unit in the same complex that is listed at $435,000 and it just came on the market. Also, there are 26 other active listings in the same zip code priced under $225,000.

If there is anything else I can help you with, please feel free to call me or visit my website for your property search.

Thanks, Denise Gleavey
"Your Realtor for Life"
Coldwell Banker Res. Brokerage
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0 votes
Cleve Shirley, Agent, La Mesa, CA
Wed Feb 18, 2009
Diane really nailed it. One addition to her comment - be sure to research the history of the listing if it has been on the market over a few weeks and you are considering a lower offer. The listing may have fallen out of escrow and could go back on only to receive multiple offers again.

Good luck Scott!
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0 votes
Woody Hender…, Agent, San Diego, CA
Wed Feb 18, 2009
Scott, it appers that this home is owned by the bank - the final step in the foreclosure process. Now that is is owned by the bank, nothing is owed on it. The bank is trying to minimize their losses. You can submit an offer for less thean the asking price. Realize that although the home is listed at a certain price, buyers may come in and bid the price up. The home may actually sell at a higher price than asking. You should seek the advice of a buyer's agent. This representation can save you thousnds and provide you with sound advice on this, and other homes you may be interested in. The service generally does't cost you anything as the seller usually pays the commission. Hope you found this information helpful.

Best Regards, Woody (619)850-5432
0 votes
Diane Conaway, Agent, Escondido, CA
Wed Feb 18, 2009
Of course you can. You may be in competition with many other buyers looking for the same house as you though. Bank owned properties are bringing multiple offers, frequently with the agent requesting "highest and best" offer, especially if it's brand new on the market. If it's been on the market awhile, by all means make a lower offer. It's very competitive with newer, good condition bank owned homes that are aggressively priced. If the list price is already a bargain, don't get your hopes up about getting it for much less. If you really want to negotiate, pick a less desirable property that's been passed over by others then make your low offer and see what happens. Be preapproved and ready to prove you have the funds to close and a strong preapproval from a direct lender. Good luck!

Diane Conaway, RE/MAX United, (760) 749-2888
Accredited Buyers Representative, Broker Associate
0 votes
Melissa A. S…, , 92040
Wed Feb 18, 2009
Hi Scott,

It depends on several factors. How long it's been on the market, the condition of the property, etc. If it's truly bank owned, the bank will price it to sell. You can offer lower than the asking price, but be prepared for other offers. Work with an agent who has experience in this market, and they will offer their valuable opinion and help you get the best possible deal. Feel free to check out my website, or call or email with questions. Good luck!
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