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How much less do they take for bank owned homes? What should we offer if they are asking $137K It needs some cosmetic work and updating.
How much less than what?
Banks want to get as much for the property as they can manage, just like any individual seller. They SHOULD take a more pragmatic approach, and look at it purely as a business transaction, but that's no guarantee that they'll give the property away. Like everything else, it depends on the circumstances of the property. Most important, what does their appraisal say it's worth? We can't tell you what to offer, as we don't know if the asking price is a fair one or not. Are there othehr properties just like this available? If there are, what are they asking? Have very similar properties recently sold? What were the sale prices? If it turns out that 4 of this identical property sold last month, all for $150k or more, your odds of getting a big discount from the $137k are pretty low. If, on the other hand, the last comps sold at $125k, and there are 3 still on the market now all priced under this one, then there's no reason to expect to pay full price.
I'm not sure I understand your question. You offer what you think is fair value for the price of the property whether it's bank owned or a resale. HUD is a little more stringent on their reductions, in my experience. Some banks have done their homework and priced the property to sell immediately, some price low enough to get multiple offers, some have an idea, generally from a bpo, of an incorrect starting price. They are the same as resellers. They ARE resellers. So, it depends on the bank, the property, the loss they are taking, the information they got from the Realtor® that did the bpo, etc.
What is your agent telling you to go in with?
They just lowered the price. Other homes in the area sold for about $155-$168 that are comparable. Thing is, they were in perfect condition . This house was built in 88 and needs carpets, tile, cabinets, countertops, paint and more. I figure about 8-10K in work. (maybe more) I would like to purchase the house for $125K. I should have all the cash once my house sells.
Previous owners bought it in Oct 2007 for $151K, but I don't know what kind of mortgage they had. It's been on the market for about 6 months, but I don't recall the previous price.
Do you have an agent? You go in with the price you want to pay on an as is contract, quickest close possible, cash and include copies of the estimates from licensed contractors as to what the repairs are going to cost you. Or you find comps that are in similar condition as the one you are looking to purchase.
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