The property is listed by a realtor for $249,500, but we know if is a foreclosed property. We are planning to go straight to the bank and make an offer. The property has been on the market since this March, but we are not real sure what we should say in making an offer.
2007-06-21 11:31:02 · 6 answers · asked by Native Artist 1 in Business & Finance ➔ Renting & Real Estate
Contrary to common misconception, most foreclosures sell for pretty close to FMV. If there's any price reduction to be had it's usually owing to the condition of the home, not just because of the "F" word. Foreclosures often have deferred maintenance or are even trashed by the former owner in retaliation for the foreclosure. You also get no disclosure statement from the seller since they have limited knowledge of condition of the property.
Compare the asking price to similar properties in the area, especially those that have sold recently and then adjust for condition as needed and maybe knock off a point or two for the lack of a regular disclosure statement.
The bank has a fiscal responsibility to get as much as possible for the home -- either to the former owner if it's a recourse mortgage, or the bank's stockholders if the bank is going to keep any gain on the sale. They don't just get dumped for cheap money (unless it's an insider job and then it would never be advertised anyway.)
2007-06-21 11:44:38 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Don't bother contacting the bank directly. They have engaged the services of a realtor because they don't WANT to deal with folks contacting them directly to purchase these properties. You will be referred back to the listing agent for placing any offer. Do not expect to 'steal' this property. In contrast to what you see advertised all over the place, most foreclosed properties are sold for fair market value.
The lenders have taken a beating financially in having to foreclose on these properties. They're not going to sell it at any sort of price lower than they can get from another buyer.
2007-06-22 00:11:19 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
What is the market like in your area? If it is an appreciating market where foreclosures are few and far between, you will be hard-pressed to find the foreclosure that will NOT be close to market value (unless you perform a short-sale or have a special relationship with the bank). In a market similar to Michigan, the opposite holds. The bank is happy just to get what is owing. Often, if they end up with less, they are in the business and realize that recouping some of the funds owing is better than none. Negotiations are much easier in this situation.
Hope this helps.
2007-06-21 18:53:25 · answer #3 · answered by jbauer14 3 · 0⤊ 0⤋
The first thing you need to ask yourself it how much are you willing to pay. Then go to the bank and make your offer. Some of them will sit and negotiate with you, depending on the bank.
I usually start by offering 1/2 to 2/3 of the asking price, but if you can find out how much is owed on the loan to the bank they will usually be very happy with the balance..... just to avoid all the work of listing and selling.... if they can do it in one step, they usually will.
Best of luck to you.
2007-06-21 18:36:52 · answer #4 · answered by flwr_ldy 2 · 0⤊ 0⤋
Most banks are looking only to get back the money that was still owed on it. Try to find out how much was owed and offer that amount.
2007-06-21 18:34:30 · answer #5 · answered by Divelucaya 3 · 0⤊ 0⤋
lol... the bank doesn't care about that, the property legally belongs to the person who is paying the mortgage, even if they are in default.
believe me, the bank wont take an offer that is less of what the current owners owe to them....
unless is a short sale.....
so, dont waste your time going to the bank, I bet you don't even know what bank is it....
2007-06-21 18:44:41 · answer #6 · answered by Sergio S 2 · 0⤊ 2⤋