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is it worth asking for seller contribution to closing on a full asking price offer on a bank owned (not short sale) property?
the property hasnt been on the market long, but as of last night theres been 1 showing and no offers...
house is very competitivly priced for its condition, (slightly underpriced infact) but there is alot of houses on the market in the area, not alot of movment and a very depressed tiny town.
Not alot of people moving in...and alot of older people..."moving on"
was thinking of offering full asking with seller contribution to closing costs as a starting point...
oh and house was apraised in january of this year for more than double the current listing price.
In my area at least, the seller pretty much expects for the buyer to ask for closing cost assistance. Up to 3% is considered pretty normal. However, in my area, bank owned properties are also pretty rare these days and are mostly ending up "highest and best" because they got 12 offers on them, so they are selling over asking price. Sounds like that is not true in your area. If that is the case and there really are no other offers presented yet, I would say to go for it.
It totally depends on the property and the list price. Fast is good! If you get your offer in before the other 10 people, it can't hurt to ask.
The bank will look at the net of all offers. But their big trigger point is the financing. Cash is king in the REO world. So make your best offer and hope for the best. 3% closing costs for home owner occupied houses is normal.
thanks for the feed back...
ive had people telling me theres no chance an reo will pay anythign to closing...so its always nice to get more folks opinions...
i figure banks want money not houses, so if an area is hard hit there more likley to be willing to work with a buyer right?!
About two years ago I bought a bank owned farm and paid less than half the appraisal price. My offer was 10% off the asking price which was less than half the tax appraisal. I paid the traditional buyer's part of the closing and did not ask the bank for help since I paid cash and my closing was very minimal. The asking price had been lowered several times before I jumped in.
This was in a rural part of west Texas (about 40 miles from Lubbock) so I don't if this helps.
Fast is only good for agents, brokers and lenders.
And for house hunters. It happens all the time..."I want to go back and look at that house on Main street again, I really liked it." "Sorry, it's pending." Bank owned properties that are listed just under market value as the OP mentioned do not last long. If you like it, go for it. Once a buyer delays a few times and misses out on a house they really want, they start asking me to write up the offer within an hour of seeing it.
I see no danger in asking. They'll either say yes or no, and you can go from there. Banks, at least, do not have "feelings" nor get all pi**ed off and declare your offer "insulting."
Agree with others if you like it you need to get offer in ASAP. We bought an REO and made full price offer on first day it was on market; got into a "best and final offer" situation with another buyer - ended up paying over asking price. But it still was a great deal.
thanks
i agree, when properties are underpriced, even in the worst markets they can go incredibly quickly, and after loosing the last house i put an offer on due to the listing agents mistake and a couple of the ones i liked but didnt move on sold in the last 2 weeks while i was waiting on all the legalitiles to do the inspection sometimes moving fast IS the way to go...
its not so bad if you invest in properties...if one gets away theres always another to pick up, but as an owner occupant...sometimes it is better to act fast.
we wrote up an offer this morning and got it in but being its a bank itll be monday at the earliest before we hear anything back...
lets see how this one goes.
(the last property i offered on was a hud home, and according to the asset manamgnet company on a well...however no well, it was spring and despite being fha insured they wont lend on spring fed water...the property officially doesnt quailify for fha insurance yet was listed as insured...*ugh*)
so i figure i put myself through all THAT stress...why not stress myself more trying to get an REO instead lol.
from what i understnad its equally frustrating but a little slower paced...lol.
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