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I am thinking about buying a bank owned condo. It needs repairs, a new carpet, paint, etc. I would like to offer lower than what they are asking, since its own by the bank, would they lower the price?
I am thinking of offering 10% less than what they ask.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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If you could offer to close by the end of this year, they might. Most banks lower the prices on a schedule anyway. You could take your chances if they say no and wait for them to come down to your number.
Your mileage may vary according to your local real estate market.
Don't just make a 10% below asking price offer. Check the comps to make sure you are getting a good deal. Price the repairs that need to be made as if you will hire someone, even if you're going to do it yourself. With REOs, you need to back up your offer with numbers and that may not even work, at least at first. If you take a professional approach, backed by comps, realistic costs to make repairs, compensation for your effort, etc. Even days on market can help you if it's really long in your area. If it doesn't work the first offer, if the property's around a month later, make the same offer but update any figures you had. It might take a few tries buy you could eventually get it. Also, show that you are a slam dunk for a loan. Get pre-approved (not pre-qualified). You might even include a filled out loan application with all the paperwork they are going to want to see for loan -- W2s, etc. -- with your offer.
The problem is that most people think the person in charge of REOs at a branch make the call, when it's actually some asset manager working hundreds of miles away making decisions based on a computer model, which is usually inaccurate and out-dated. But that's another story.
Buyers think that banks want to dump REOs as fast as they can, and they will -- at a price usually closer to market and not a great deal. But banks don't think that way. They are all about number crunching. Instead of going in with the attitude of, 'I'll do you a favor and take this dump off your hands for a really low price,' you need to prove to them that you are offering them a fair market price based on condition, location, comps, avg. days on market, all the things that 's going to cost them to keep it.
Don't just make a 10% below asking price offer. Check the comps to make sure you are getting a good deal. Price the repairs that need to be made as if you will hire someone, even if you're going to do it yourself. With REOs, you need to back up your offer with numbers and that may not even work, at least at first. If you take a professional approach, backed by comps, realistic costs to make repairs, compensation for your effort, etc. Even days on market can help you if it's really long in your area. If it doesn't work the first offer, if the property's around a month later, make the same offer but update any figures you had. It might take a few tries buy you could eventually get it. Also, show that you are a slam dunk for a loan. Get pre-approved (not pre-qualified). You might even include a filled out loan application with all the paperwork they are going to want to see for loan -- W2s, etc. -- with your offer.
The problem is that most people think the person in charge of REOs at a branch make the call, when it's actually some asset manager working hundreds of miles away making decisions based on a computer model, which is usually inaccurate and out-dated. But that's another story.
Buyers think that banks want to dump REOs as fast as they can, and they will -- at a price usually closer to market and not a great deal. But banks don't think that way. They are all about number crunching. Instead of going in with the attitude of, 'I'll do you a favor and take this dump off your hands for a really low price,' you need to prove to them that you are offering them a fair market price based on condition, location, comps, avg. days on market, all the things that 's going to cost them to keep it.
And you know, even then they may not say yes.
Good Post. Particularly the "slam dunk" for a loan.
Cash is even better.
The problem is that most people think the person in charge of REOs at a branch make the call, when it's actually some asset manager working hundreds of miles away making decisions based on a computer model, which is usually inaccurate and out-dated. But that's another story.
I am thinking about buying a bank owned condo. It needs repairs, a new carpet, paint, etc. I would like to offer lower than what they are asking, since its own by the bank, would they lower the price?
I am thinking of offering 10% less than what they ask.
I'm curious as well. Also I would not deliver proprietary financial documents - even if we were under contract....that info belongs to the buyer and should be protected as such. It is not the sellers business to know and is confidential information. The financial section of the contract will show the buyers strength.
I'm curious as well. Also I would not deliver proprietary financial documents - even if we were under contract....that info belongs to the buyer and should be protected as such. It is not the sellers business to know and is confidential information. The financial section of the contract will show the buyers strength.
Uh? Pardon, I know this is very clear to most of you, but I haven't got a clue as to what you are refering to. Can you explain it in a more simpler way?
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Thank you
