Answers to Everyday Questions : How much less than the listing will banks usually take for a bank owned home?

How much less than the listing will banks usually take for a bank owned home?

5 Responses to “How much less than the listing will banks usually take for a bank owned home?”

1. My D said :
   August 9th, 2010 at 6:33 am

   Depends on the bank, the type of property, the amount of debt service owed on the property, and frankly how the bank is doing that month.

   A good investment strategy is to offer 50% of the asking price. Typically the bank will deny the offer, but who cares? That’s the beauty of bank owned properties, there is really no one to insult with your offer. Raise your offer by a small percentage each month and see what happens. Eventually you will get a bank in real trouble one month and they will dump hundreds if not thousands of properties all at once. And suddenly the offer they have denied you each and every month is now agreed upon.

   Remember banks are failing at a rate of 10-12 per month. The Feds come in, fire everyone and take over the bank. Bank presidents and CEO’s will do just about anything to avoid this including dumping large amounts of depreciating real estate off their books!

   Good Luck.
2. skr said :
   August 9th, 2010 at 6:47 am

   No, why should they take a loss? The bank accepting a lower amount is usually a long drawn out process and there is no guarantee that they will agree to any of it. There have to be some good reasons for them to take less , like the home values dropping drastically and you trying, but being unable to sell the home. Also, if the bank takes less it doesn’t mean you automatically walk away free and clear, they can go after you for the shortage.
3. Landlord said :
   August 9th, 2010 at 7:06 am

   They usually have dropped it already when they list it. But you can try 5-10% less.
4. acermill said :
   August 9th, 2010 at 7:34 am

   NEVER assume that you can buy a lender owned home for less than asking price. As a real estate broker, I’ve seen some REO properties sell for tens of thousands MORE than asking price. You need to determine current market value of any such property ahead of time, and then gauge your offer accordingly. If current market value is considerably higher than asking price, chances are strong it will sell for more than asking price. Of course, the same applies if the price is too high.
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   October 21st, 2011 at 7:01 pm

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