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Old 04-06-2009, 11:04 AM
 
Location: Olympia
1,022 posts, read 3,919,734 times
Reputation: 836

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To get back to the "original" OP's question:

ScreamingBagel,

If you'd like to give your listing an edge and feel that reducing the price by $5,000 might not have enough impact, consider getting the home staged. This can make a dramatic difference in how long your home is on the market and the selling price. You'll be able to create great curb appeal and a "model home" look for much less than $5,000. Just make sure the Stager, or the Realtor will take new, high quality photos.

Good Luck!

Sandy
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Old 04-07-2009, 10:21 PM
 
18 posts, read 48,594 times
Reputation: 12
Quote:
Originally Posted by Brandon Hoffman View Post
Well, I have one for you. Bank prices are negotiable. There, I just saved you money and I'm a Realtor. No need to get hostile about it. Bill provided an accurate answer even if you didn't like it.

If you want another-earnest money, helping you get the right financing and lender, home warranty, seller paid closing cost, getting the right closing date, helping get competent inspectors...I can keep going but that probably will be enough to suffice. Have a nice day.
Again, every situation is unique. In this case the best prices i can offer is the lowest they will probably take...in reality there's no room for negotiation. And hostile?? Maybe irked but not hostile. Have a nice day.
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Old 04-07-2009, 10:25 PM
 
Location: Columbia, SC
10,343 posts, read 20,136,384 times
Reputation: 9246
Quote:
Originally Posted by peaceandprosperity View Post
Again, every situation is unique. In this case the best prices i can offer is the lowest they will probably take...in reality there's no room for negotiation. And hostile?? Maybe irked but not hostile. Have a nice day.
"probably" and "no room for negotiation?". You don't know so all you can do is make an offer. Do you expect someone to work for free? The bank does not take the commission being paid into account when looking at your net so that part is irrelevant. If they don't take your offer make the same one again in a week or 2 if it's still on the market.Have a nice day yourself.
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Old 04-07-2009, 10:29 PM
 
18 posts, read 48,594 times
Reputation: 12
Quote:
Originally Posted by Captain Bill View Post
My response was not to be condecending nor insulting. It was to be very frank and up front. I apologize if you were offended.

I buy bank owned properties for my own account, to resell at a profit. My business partner and I have bought nine (9) in the past 11 months. We're currently negotiating for the 10th.

We had offered on this one before, and lost it to someone bidding higher, with an FHA loan. Our offer was cash, but much lower than the FHA offer.

Two months later the FHA deal fell apart, and we submitted a lower offer than our previous offer. The bank has countered, and is getting down in our ball park, so we are preparing our next counter.

I've bought 3 bank owned as buyers agent for my clients. I also list and sell bank owned properties. I sold two in the last two months. One sold at about 9% below list. The other sold above list. So I have a very good feel for what banks will accept. As you stated, each situation is unique and the bidding strategy will be different for each property; but the bank prices are not fixed.

All banks will negotiate on the property, and a good Realtor who deals with bank owned homes knows how to negotiate with them, and will have a good idea of what they will accept. S/he will also know if the house is under priced so that the offer will have to be over list because of competition.

To answer your question directly, the agent who understands the market and strategies for negotiating with the banks will save you a lot of money by the negotiating strategy. In some case you may be advised to offer higher (if the house is under priced, and you really want that house).

If your agent has told you that the banks will not negotiate, then you need to get another agent, because that is not correct.

If you would like the name of a lender that I've found has the lowest interest rates and the lowest loan fee, feel free to pm me and I'll give you that information so you can compare.
Ok, no problem. I have a strong feeling that my agent isn't used to the bank owned situation. I'm barely getting any feedback unless I call her. She wrote down specific dates of when the bank should reply, as well as closing dates etc on the offer. She gave the bank 3 days, but it has been over 2 weeks now. I have an uneasy feeling that they may ignore the offer if they don't meet those deadlines. My agent isn't giving me a clue..I don't think she has a clue. (not to be rude) Which lender are you speaking of? They would have to be willing to finance an unusually low asking price, so I am competing with possible cash buyers..
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Old 04-07-2009, 10:38 PM
 
18 posts, read 48,594 times
Reputation: 12
Quote:
Originally Posted by Brandon Hoffman View Post
"probably" and "no room for negotiation?". You don't know so all you can do is make an offer. Do you expect someone to work for free? The bank does not take the commission being paid into account when looking at your net so that part is irrelevant. If they don't take your offer make the same one again in a week or 2 if it's still on the market.Have a nice day yourself.
Who said anything about expecting someone to work for free? And it's all based on the market conditions of the area..I'm sure I don't have to tell you that. Have a nice day, sincerely. Try a nice cup of Earl Grey tea with cookies.
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Old 04-08-2009, 10:02 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 13,992,905 times
Reputation: 3867
Quote:
Originally Posted by peaceandprosperity View Post
Ok, no problem. I have a strong feeling that my agent isn't used to the bank owned situation. I'm barely getting any feedback unless I call her. She wrote down specific dates of when the bank should reply, as well as closing dates etc on the offer. She gave the bank 3 days, but it has been over 2 weeks now. I have an uneasy feeling that they may ignore the offer if they don't meet those deadlines. My agent isn't giving me a clue..I don't think she has a clue. (not to be rude) Which lender are you speaking of? They would have to be willing to finance an unusually low asking price, so I am competing with possible cash buyers..
The Asset Managers of the banks are very busy and usually over loaded. The deadline to reply doesn't mean anything to the bank. Sometimes they will respond the same day, and sometimes it will be several days. If it's been 2 weeks, then I assume they are not going to respond.

If your offer is a real lowball offer with an FHA loan, they may just ignore it. It really depends on the AM. It could be that they offer is too low, and the AM is really busy so he is not going to spend any time negotiating.

Some banks, using the Res.Net system just hit a button that rejects the offer. The listing agent gets that information. I have to assume that your agent has asked the listing agent if there has been any reply. Sometimes it's the squeaky wheel (if not too irritating) that gets action.

Your agent should have checked the bank owned comps in the area; checked the number of competing listings; the average days on market in the area; the months supply; the percentage of monthl decline in housing value in that area; plus the condition of the subject property, along with the number of days it has been on the market, and how many (if any) price drops they have made on the property.

The listing agent can tell your agent if they have had previous offers on the property. The number of business cards left at the property will give a little indication of the level of interest.

From that information the agent knows if the house is priced right, or over/under priced. Then she can guide you with an offer. Her experience with the market and the condition of the bank homes being sold can indicate to her whether or not an offer near/over/under list price will work.

I wouldn't be in too much of a hurry to buy. If the agent is not helping you, then find another agent and start over. Some of the agents who list bank owned may be able to help you better. But talk to some and ask questions about how they would guide you to make an offer.

By having a lot of information about the property itself, and the area statistics that I mentioned above, you will be in a much better position to determine what the bank may accept.

I buy bank owned properties to rehab, and some of them are in good condition and just require some paint and clean up with minor repair. I don't get everyone that I offer on because I have a formula for the spread that I need. But when I do get one, it's a good deal for me, and I can sell it at a good deal for the end user.

So work with a good agent that knows the system, and you'll be able to get a good deal. You may have to look at a lot of houses, and make several offers, but end the end it will work out for you.
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Old 04-08-2009, 08:02 PM
 
18 posts, read 48,594 times
Reputation: 12
Quote:
Originally Posted by Captain Bill View Post
The Asset Managers of the banks are very busy and usually over loaded. The deadline to reply doesn't mean anything to the bank. Sometimes they will respond the same day, and sometimes it will be several days. If it's been 2 weeks, then I assume they are not going to respond.

If your offer is a real lowball offer with an FHA loan, they may just ignore it. It really depends on the AM. It could be that they offer is too low, and the AM is really busy so he is not going to spend any time negotiating.

Some banks, using the Res.Net system just hit a button that rejects the offer. The listing agent gets that information. I have to assume that your agent has asked the listing agent if there has been any reply. Sometimes it's the squeaky wheel (if not too irritating) that gets action.

Your agent should have checked the bank owned comps in the area; checked the number of competing listings; the average days on market in the area; the months supply; the percentage of monthl decline in housing value in that area; plus the condition of the subject property, along with the number of days it has been on the market, and how many (if any) price drops they have made on the property.

The listing agent can tell your agent if they have had previous offers on the property. The number of business cards left at the property will give a little indication of the level of interest.

From that information the agent knows if the house is priced right, or over/under priced. Then she can guide you with an offer. Her experience with the market and the condition of the bank homes being sold can indicate to her whether or not an offer near/over/under list price will work.

I wouldn't be in too much of a hurry to buy. If the agent is not helping you, then find another agent and start over. Some of the agents who list bank owned may be able to help you better. But talk to some and ask questions about how they would guide you to make an offer.

By having a lot of information about the property itself, and the area statistics that I mentioned above, you will be in a much better position to determine what the bank may accept.

I buy bank owned properties to rehab, and some of them are in good condition and just require some paint and clean up with minor repair. I don't get everyone that I offer on because I have a formula for the spread that I need. But when I do get one, it's a good deal for me, and I can sell it at a good deal for the end user.

So work with a good agent that knows the system, and you'll be able to get a good deal. You may have to look at a lot of houses, and make several offers, but end the end it will work out for you.
I actually added an extra $200 to even out the asking price, but asked the seller to pay 6% closing with a regular 30-year conventional loan since my agent said 6% is the most they will pay. She said there may be a counteroffer. That may be the reason they aren't replying. My agent also said I could always change the type of loan I want after the offer is accepted,,, even to FHA which I was surprised to hear..

Someone suggested I put in a new offer and pay the closing costs myself. I think it would be worth it in the long run. I am thinking to offer a little more than asking price, with FHA loan, but I pay closing. The place is priced below the average bank owned price, so I figure I should add to asking price.

I know this from studying the prices in the general area, but not from any statistical calculation. I honestly don't think my agent did even half of what you said. I really don't want to hurt my agents feelings, but I think I am better off picking someone with more experience.

This is the only place near my school that I'm willing and able to purchase, so I want to make sure I don't lose this deal. I've read on one forum that sending in a letter of introduction (explaining briefly who you are and what you do) may actually help...I guess it's worth a try. But yeah..I think it's time to find a more experienced agent. Thanks for the advice.
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Old 04-09-2009, 11:52 AM
 
Location: NJ
19,264 posts, read 27,291,261 times
Reputation: 21267
Quote:
Originally Posted by ScreamingBagel View Post
A) Cash bonus to my Seller’s agent if we close in < 30-ish days (I should focus on closing, not going to contract, right?). He’s already going to get his 6%, but will an extra 5K make keep my listing in this thoughts

B) $5K Cash bonus to the Buyer’s agent if we close in < 30-ish days. This feels kind of “dirty” to me, but if it encourages more showings, it might be worth it.

C) Just drop the price another 5K – But will this make an impact against 300K+ asking price? It won’t get me to 299,900, for example – I’d still be in the “teens”.

D) None of the above – I’ve priced it well, so just suck it up and see what happens.

In a normal market, I’d go with “D” – a no brainer. But since this seems to be an “all or nothing” selling environment (either < 30 days vs. forever-and-a-half), I’m really nervous about NOT trying to do something extra.

What do you folks think? Ideas humbly accepted!
Surprised I didn't reply to this when it was originally posted.
D - none of the above.
I would offer the buyer a decorating expense (like a home depot gift card) upon closing.
I might break it up though. I'd do most of it to the buyer, then the rest to the agent(s)
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Old 04-10-2009, 09:54 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 13,992,905 times
Reputation: 3867
Quote:
Originally Posted by peaceandprosperity View Post
I actually added an extra $200 to even out the asking price, but asked the seller to pay 6% closing with a regular 30-year conventional loan since my agent said 6% is the most they will pay. She said there may be a counteroffer. That may be the reason they aren't replying. My agent also said I could always change the type of loan I want after the offer is accepted,,, even to FHA which I was surprised to hear..

Someone suggested I put in a new offer and pay the closing costs myself. I think it would be worth it in the long run. I am thinking to offer a little more than asking price, with FHA loan, but I pay closing. The place is priced below the average bank owned price, so I figure I should add to asking price.

I know this from studying the prices in the general area, but not from any statistical calculation. I honestly don't think my agent did even half of what you said. I really don't want to hurt my agents feelings, but I think I am better off picking someone with more experience.

This is the only place near my school that I'm willing and able to purchase, so I want to make sure I don't lose this deal. I've read on one forum that sending in a letter of introduction (explaining briefly who you are and what you do) may actually help...I guess it's worth a try. But yeah..I think it's time to find a more experienced agent. Thanks for the advice.
Changing from a conventional to an FHA may work, and it may not. I sold an REO and the buyer changed to an FHA and the bank accepted it. it's ok to try.

If you change agents and then buy the same property, then you may owe the agent her commission, unless you fire her and document that you are firing her because of not working in your best interest. So if you do fire her, send her a letter, it can be an email, and state that you need to make a change of agents because the advice she has given you has been innacurate and she has been ineffective in negotiating this house for you.

You just need to be factual and polite.

Writing an introduction letter is probably not going to help persuade the bank. It may make the listing agent more sympathetic to you.

The bank is interested in how much they will NET from the property. They take the purchase price, subtract the selling costs, escrow costs, and any buyer concessions, to arrive at the net. The NET is the important number.

If there are faults with the property, repairs needed, then you would want the listing agent to mention those. He should know them, but you may find something that he doesn't know about.

Do a search for sex offenders in the area. There is probably one nearby. Let the listing agent know that because it's a negative for the property.

The banks have a form on the internet where the agent fills in the terms of the offer. Most of the time s/he is not talking to the Asset Manager during this process. When the bank begins to negotiate, the AM will usually just email a counter back to the agent. From there the email or telephone conversation begins, but usually it's email. It's typically a verbal negotiation from there until an agreement is reached. Then you do the final paperwork.

The listing agent cannot contact you directly, but you can contact him/her. If you feel your agent is not doing the job, then you can contact the listing agent and ask the status of your offer.

Many REO agents are very busy, and those who only work with REOs, may be the type that doesn't care to work with the public, and that's why they do REO's.

You can, and should, ask if s/he has other offers. (Your buyers agent should have asked this question on her first contact with the listing agent.) The listing agent can't tell you the amount of the offer, but does have to let you know if there are, or aren't, other offers.
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