Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Ok I just saw that my dream house has had the price reduced from 475K to 349K. It is a bank owned property that has been on the market almost one year. 349K is a great price but still more than I want to spend. 300K is absolute tops. If it weren't a foreclosure, I wouldn't consider it, but since it is, would it be ridiculous to offer 280K? It sold in 2006 for 758K. The land alone is really worth the asking price (232,000 sq. ft.) as it averages around 75-100k/acre. It's a fixer upper but even at 349K it works out to only $95/ sq./ft (approx. 4000 sq. ft) and the average in the area is $200/ sq. ft. Would a bank even consider such a low ball offer?
Ok I just saw that my dream house has had the price reduced from 475K to 349K. It is a bank owned property that has been on the market almost one year. 349K is a great price butstill more than I want to spend. 300K is absolute tops. If it weren't a foreclosure, I wouldn't consider it, but since it is, would it be ridiculous to offer 280K? It sold in 2006 for 758K. The land alone is really worth theasking price (232,000 sq. ft.) as it averages around 75-100k/acre. It's a fixer upper but even at 349K it works out to only $95/ sq./ft (approx. 4000 sq. ft) and the average in the area is $200/ sq. ft. Would a bank even consider such a low ball offer?
What you want to spend has no bearing on what the bank will accept, just as what a seller wants/ needs has no bearing on what the market will pay.
If you think this could be a steal of a deal, might not others, think so too?
If you are a cash buyer and able to close quickly, the bank is probably more likely to work your offer.
As an aside, how recent are the comps you are using to determine the value of the land?
It's a bank...all they can say is no. I also suggest a good inspection. Has it been under contract in the year on the market? Does the listing agent have an inspection from another buyer that you can at least review to see what major hidden problems there may be.
That's a heck of a deal for you if you can pick it up for under $300k!
What you want to spend has no bearing on what the bank will accept, just as what a seller wants/ needs has no bearing on what the market will pay.
If you think this could be a steal of a deal, might not others, think so too?
If you are a cash buyer and able to close quickly, the bank is probably more likely to work your offer.
As an aside, how recent are the comps you are using to determine the value of the land?
You're right. What I really should have said was has anyone seen a bank accept such a lowball offer? They've already come down 100K to 349K and the 2008-9 assessors record shows an actual value of $943,800. One reason I think it hasn't sold is that it is an architectural style (50's modern) that isn't that popular in the mountains ("rustic" houses are more popular and I hate those). I was basing the land value on comparable asking prices in the area but I haven't compared it to actual land sales yet. Thanks!
no telling what the bank will do. Depends on the bank, location, comps, and if the assett manager woke up on the wrong side of the bed : ) Only way to tell is to offer. First thing I would want to know? are there any other offers/bids on the house currently? if there are, the bank lowered to get INTEREST (like yours) and are expecting a bidding war. happening here alot right now.
I could have sworn I replied to this thread yesterday. Anyway, there was a very nice remodeled antique farmhouse here that had gone into foreclosure (our area has very few of these). The house had been on the market for months at around $575,000. It went to auction and a woman who attended on whim thinking that it would never be in her price range got the house for $255,000. My point is that it does happen so why not go for it. Jay
Lowballs DO work (after you go through rounds of negotiating), I've seen it happen several times. Don't let your realtor discourage you from lowballing.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
