For a bank owned home, what percentage of list price will make a good offer price?
The home is in La Palma, orange county,california and the bank owning is not big. The home is listed at 589 k, comparable homes listed in the neihborhood are listed at 650k to 675k and there is another which is a short sale ( not bank owned) listed at 575k. My realtor suggested that 550k will be a fantastic deal but I am thinking to offer 510 – 520. I am ready to put down 80 -90 k.
July 29th, 2010 at 12:36 am
Depends on how long on the market. If it has been on for awhile you might go 525. I don’t think pass one you’ll get it at 520
July 29th, 2010 at 1:14 am
Always go low! Try to find out what they are really trying to get. Plus , you have to look at the time it has been on the market, the longer the better for you. they’re losing money the longer they hold it, use that to your advantage! You can always make another offer.
July 29th, 2010 at 1:47 am
it is never that easy……………
pay for an independent real estate guy/girl to help you……………
July 29th, 2010 at 1:59 am
You should take the advice of your Realtor. They know the business and area of the home. When dealing with bank owned homes, many offers could be coming in and you wouldn’t want to take a chance of not getting the home. The bank is going to take the top offer period–it should be yours:)
On a personal note–I lost 2 houses because my bid was too low. When I put in the bid that the Realtor suggested, I got the house!
Good Luck!
July 29th, 2010 at 2:27 am
Hi! Hopefully, you have compared the short-sale home to the bank owned home and have found that the bank owned home is a much better value? Have you asked your Realtor for sold comparables in the past 3 months to help base your offer on? At any rate, I have seen it all….I have seen banks accept offers that were $150k below asking price to standing firm at just a little below asking price. Here is my suggestion to you…..if you absolutely have to have this house, (it’s the home of your dreams, you’ll never find another one like it, etc., etc.,) then I would follow the advice of your Realtor if he/she is your buyer’s agent. (Your Realtor works for you and not the seller!) On the other hand, if you offer $510k, and there are no other offers on the table (your realtor should have an idea) the bank will probably come back to counter. Actually, the bank may/will probably come back to counter with $550k if there are other offers unless someone comes in with a full price offer. Also, on your offer to purchase, ask your Realtor to place a time limit on your offer so the bank doesn’t string you along and stall for additional time to keep accepting other offers…(maybe give them 48 hours to respond “Offer valid until December _, 2007 at 5p.m.”). Just remember, unless this forclosure is something magical, you are buying a home “as is”. Make sure you get the very best home inspector for your own knowledge. I wish you the best of luck!
July 29th, 2010 at 3:11 am
If you looked at a whole bunch of sales statistics, you would find a certain percentage that on the average, the bank foreclosures sell for. Some sell in 400 days, at 75% of original list price, some sell in 3 days at 115% of list price. Which one is this? I have no idea.
But on the average, the sale price will be somewhere between 125% of list and 50% of list.
Hope this helps. I mean that I hope this helps you to understand that you need a Realtor who knows that market to guide you.
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