Ok, So I put an offer for a bank owned home. They were asking $133,000, I submitted an offer for $105,000. They cam back and countered the offer at $132,000 ($1,000 less than asking price). The home has been on the market since April.2007 and was listed then at $139,000.
Why would the bank come back with a counter offer of $1,000 less than the asking price? (Because I put in such a low starting offer?)
What should my next counter offer be? (Please give me your opinion)
The home needs a new roof within a year, needs to be converted to copper plumbing, yard needs to be relevels and drains put in as all the neighbors yards slope to this homes yard.
2007-09-18 00:57:04 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Has this ever occured to any of you? What is your experience? If I counter their offer and offer $115,000, do you think that they will accept?
2007-09-18 01:13:36 · update #1
No the bank by only countering with 1K off asking price has established that they are not willing to play and my bet is they will not take less then 130K
waste of time to submit comps, the price the bank has is set in stone at this point, and they will not be swayed but additional evidence to the contrary
2007-09-18 02:18:28 · answer #1 · answered by goz1111 7 · 0⤊ 0⤋
In some ways dealing with a normal owner is better than dealing with a bank. The money they are losing by owning or selling doesn't belong to any of the people making the decision about what to accept, therefore they don't care how much the property is actually worth or how much they lose every month they own it. What they do care about is the political implications to them of accepting a low offer. But that doesn't mean there is nothing you can do.
I agree with some other posters here. Submit along with your counter offer a comparative market analysis after that estimates the value of the home after it is repaired. Then submit estimates of all of the costs to repair using professionals and also estimate time to complete the total job and the cost of taxes and the cost of money during that time. By sending all of this with your offer you give them what they need to defend their decision making internally. Remember they will not be fired for refusing to take a low offer. They could be fired for taking one, this is their concern not money the bank loses, money they personally could lose.
2007-09-18 01:50:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I can only tell you what banks are doing in CA. They will not accept your counter offer. Their asking price is their asking price. This bank is making that statement to you as well. You have to remember that can not loose too much on the house, they are legally bound to their investors. The tax write off they receive from the bad investment (the scum that defaulted) is better for them then selling the house for under whatever figure they came up with to sell, which is what they made their asking price.
Foreclosures in this market, where people owed more then the value of the property are NOT a great deal.
Bottom line is you need to either counter with 131 and wait for them (you know they are not quick), pay their asking price, or look elsewhere.
I have no idea what it will worth after it is upgraded, so I can't tell you what I would do.
2007-09-18 01:29:47 · answer #3 · answered by Landlord 7 · 1⤊ 0⤋
Look at the values of similar but fully repaired homes in the area - deduct the cost of the essential repairs (done professionally not DIY) plus an amount for lost rent/enjoyment whilst these repairs are done - I would suggest $1000 would be reasonable - that's the fair price.
If it's below the bank's figure then haggle if it's higher then think seriously about accepting the bank's offer or offering very close to it.
2007-09-18 01:11:38 · answer #4 · answered by morwood_leyland 5 · 0⤊ 0⤋
It has only been on the market 5 mos this is probably the first offer the bank has had . Keep it up and eventually they will probably give in . also point out the problems this house has . If they dont want to give in ,move on and let the house sit .
2007-09-18 01:07:19 · answer #5 · answered by Kate T. 7 · 0⤊ 0⤋
If they would have accepted your offer of 105k, do you realize that you would have immediately decreased the value of your home by 30k? AND you would have decreased the vale of ALL the homes in your new neighborhood by the same. sounds like a way to irritate your new neighbors if you ask me!
I'd pay the asking price and protect your investment. Stop being so freaking greedy already.
2007-09-18 01:49:43 · answer #6 · answered by Roland'sMommy 6 · 0⤊ 1⤋
Do you want to continue to mess with it? Then offer 107.
If you want to buy or move on, make a serious offer, split the difference around 120 and see what they do.
2007-09-18 01:01:49 · answer #7 · answered by wizjp 7 · 0⤊ 0⤋
You are part of the reason our prices are declining! Look the lender is only trying to recover their expenses and the balance of the mortgage. They never want the house back, they just want the money. So my suggestion to you is if you want this house, accept their counter offer, if not, then walk away. But stop bitching about it!
2007-09-18 01:45:53 · answer #8 · answered by Anonymous · 1⤊ 2⤋