Are banks willing to negotiate asking prices on foreclosure properties? My wife seems to think they won’t budge but my co-worker last night says they will because they just want the liability off their books. This house has been listed well over 100 days and asking $112k. Does anyone that knows about this kind of stuff (dmaddox) think I could put in an offer for say $80k and they would meet me in the middle?
You can offer what ever you would like, all they can do is accept, refuse or counter.
My agent told me to always submit my highest and best offer. You may not get a second chance to submit a counteroffer.
Meh, it has languished on the market for 100 days, I would lowball it. There are plenty of foreclosed houses in Michigan to choose from, although the market is heating up. I haven’t paid much attention in the Jackson area but it seems home prices are pretty reasonable around here.
[quote]Testy1 wrote:
Meh, it has languished on the market for 100 days, I would lowball it. There are plenty of foreclosed houses in Michigan to choose from, although the market is heating up. I haven’t paid much attention in the Jackson area but it seems home prices are pretty reasonable around here.[/quote]
all the homes in that area/subdivision are in the ballpark of 120-130k or more. Realistically, the 112k is a bargain but the house needs a little work/updating.
Make an offer and I wouldn’t offer asking price. If it sat for 100 days, the Bank is going to be more willing to take a lower offer than asking because the market has been tested. It might tell you no, it might say yes, and its agent might also give you a no with feedback telling you where a yes might be.
Offer what you think its worth. If you offered 80 and they reject because their minimum is 90 (still a good deal) would you be pissed off you lost it or completely fine with that because you were not willing to go higher than 80 anyway?
[quote]sufiandy wrote:
Offer what you think its worth. If you offered 80 and they reject because their minimum is 90 (still a good deal) would you be pissed off you lost it or completely fine with that because you were not willing to go higher than 80 anyway?[/quote]
I would offer 80 in hopes of meeting at 90-100 and it wouldn’t break my heart if it didn’t work.
[quote]StevenF wrote:
[quote]sufiandy wrote:
Offer what you think its worth. If you offered 80 and they reject because their minimum is 90 (still a good deal) would you be pissed off you lost it or completely fine with that because you were not willing to go higher than 80 anyway?[/quote]
I would offer 80 in hopes of meeting at 90-100 and it wouldn’t break my heart if it didn’t work. [/quote]
From my (limited) experience, you don’t always have an opportunity to submit a counteroffer. The bank may have a deadline and once that deadline passes, they will take the highest offer. That’s why my advice would be to know how much you were willing to pay, and submit that.
If yours is the only bid they’ve received, they very well may come back with something however, I wouldn’t count on getting a second bite of the apple.
[quote]Dr. Pangloss wrote:
[quote]StevenF wrote:
[quote]sufiandy wrote:
Offer what you think its worth. If you offered 80 and they reject because their minimum is 90 (still a good deal) would you be pissed off you lost it or completely fine with that because you were not willing to go higher than 80 anyway?[/quote]
I would offer 80 in hopes of meeting at 90-100 and it wouldn’t break my heart if it didn’t work. [/quote]
From my (limited) experience, you don’t always have an opportunity to submit a counteroffer. The bank may have a deadline and once that deadline passes, they will take the highest offer. That’s why my advice would be to know how much you were willing to pay, and submit that.
If yours is the only bid they’ve received, they very well may come back with something however, I wouldn’t count on getting a second bite of the apple.
[/quote]
ok, thank you.
Bear in mind that you don’t have to budge, and I think a bank is less likely to play games than a homeowner would be. So if you decide your optimal price you can let them know it’s your final offer. Are you prequalified?
[quote]EmilyQ wrote:
Bear in mind that you don’t have to budge, and I think a bank is less likely to play games than a homeowner would be. So if you decide your optimal price you can let them know it’s your final offer. Are you prequalified?[/quote]
pre-approved for 120.
I was looking at buying a foreclosure but the bank would not negotiate the price until it had been listed 180 days. You should have a good idea of what the property is worth and what you are willing to pay for it. If you can’t get the right price, then the deal isn’t there and you move on to the next one.
I’d type up a formal offer of 80k and send to them. I wouldn’t worry about not getting a chance to make a 2nd offer. The housing market in Michigan is garbage right now, so I bet they’d at least counter. I have a friend that’s selling a house in Michigan and I know he’d be thrilled to get back what he owes on it now.
[quote]AlexC1 wrote:
The housing market in Michigan is garbage right now, so I bet they’d at least counter. I have a friend that’s selling a house in Michigan and I know he’d be thrilled to get back what he owes on it now. [/quote]
This is highly dependent on the area. In some places houses are selling in a week or less, others you can’t give them away. How long has your buddy been in the house? If under six years it will be a while before he is above water most likely.
The area of Parma/Spring Arbor is really desirable place to live right now. The school district (western) is rated very high in the country. That is why we are moving there.
[quote]StevenF wrote:
The area of Parma/Spring Arbor is really desirable place to live right now. The school district (western) is rated very high in the country. That is why we are moving there. [/quote]
I know people that live in both Parma and Spring Arbor, seems like a nice area. Probably a whole different market than Jackson itself.
Still it can’t hurt to go in low. I have owned five houses but none were owned by banks. The first three I lowballed and they were countered somewhere in the middle. My last house I paid asking price just because of scarcity and availability. My current house I bought off my inlaws for the same they paid for it two years earlier.
fwiw my mom has been in real estate/appraising for the last thirty years, hence I have always followed it closely.
[quote]Dr. Pangloss wrote:
[quote]StevenF wrote:
[quote]sufiandy wrote:
Offer what you think its worth. If you offered 80 and they reject because their minimum is 90 (still a good deal) would you be pissed off you lost it or completely fine with that because you were not willing to go higher than 80 anyway?[/quote]
I would offer 80 in hopes of meeting at 90-100 and it wouldn’t break my heart if it didn’t work. [/quote]
From my (limited) experience, you don’t always have an opportunity to submit a counteroffer. The bank may have a deadline and once that deadline passes, they will take the highest offer. That’s why my advice would be to know how much you were willing to pay, and submit that.
If yours is the only bid they’ve received, they very well may come back with something however, I wouldn’t count on getting a second bite of the apple.
[/quote]
Yes this is what I was thinking too, counteroffer may not be an option. If you are willing to do 90-100 start there and reject a counter if it happens to be above your value. If they don’t like a 100 offer then you had 0 chance of winning with 80 + an extra 10-20 counter in the first place.
Lowball that shit. Banks (BIG BANKS) can lend up to 10x what they have in cash. So they may like to get 100k for something but if they get 80k in cash now they can lend out 800k. Sure they’d prefer the 100k = 1 million they can lend, but after so long they just want to get it off the books, quit paying carrying costs, and start making interest on new endeavors.
Example: if they get 80k now they can make 40k off that in interest if they lend out 800k at 5% for a year. That’s twice the difference between the 80k offer and the 100k asking. Now if they think they can get the asking price in a reasonable amount of time then they’ll try to do that. Food for thought.
[quote]StevenF wrote:
[quote]Dr. Pangloss wrote:
[quote]StevenF wrote:
[quote]sufiandy wrote:
Offer what you think its worth. If you offered 80 and they reject because their minimum is 90 (still a good deal) would you be pissed off you lost it or completely fine with that because you were not willing to go higher than 80 anyway?[/quote]
I would offer 80 in hopes of meeting at 90-100 and it wouldn’t break my heart if it didn’t work. [/quote]
From my (limited) experience, you don’t always have an opportunity to submit a counteroffer. The bank may have a deadline and once that deadline passes, they will take the highest offer. That’s why my advice would be to know how much you were willing to pay, and submit that.
If yours is the only bid they’ve received, they very well may come back with something however, I wouldn’t count on getting a second bite of the apple.
[/quote]
ok, thank you.
[/quote]
Why are you so intent to buy that specific property?
Dont make one offer, make dozends, sooner or later you wil get your bargain.