If a bank has foreclosed a house, I've heard that they generally counteroffer several times before accepting, but usually take an offer well below the asking price because they want to get rid of it.
Is this rumor true?
2007-11-05 07:50:34 · 5 answers · asked by kiki 6 in Business & Finance ➔ Renting & Real Estate
No bank wants homes in their inventory, so yes it behooves them to sell it right away. But they will still try to get as much for it as they can.
2007-11-05 07:53:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Not always. I've seen banks hang on until they get an offer which they like. Even though the bank does want to rid itself of REO property, they're not going to take a severe loss unless it cannot be avoided.
Your best shot at getting something below asking price is to seek out a foreclosure which has been on the market for several months. If you offer a lowball on a new listing, they may well ignore your offer.
2007-11-05 15:59:01 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
I am buying up foreclosed homes in CA. These rumors do NOT hold true here. There isn't any bartering back and forth. They accept or reject. They are tending to reject anything less then full asking price, no contingencies.
Also, the banks have no reason to want to sell them fast. They are not loosing any money, they have not only their insurance but they can write off all losses. Anyone telling you they will sell for pennies on the $ hasn't a clue and doesn't actually own any homes. I presently have over 30 in my collection.
2007-11-05 16:49:51 · answer #3 · answered by Landlord 7 · 1⤊ 1⤋
It really depends on the bank and the creativity of the agent representing them.
I closed on a bank owned property four days ago. Our first offer was not countered because it was too low and our closing date too far out.
We made two offers over the course of two weeks, the only two offers received on this house in the 120+ days it was on the market. The bank wanted to reject both offers but my agent (also my husband) was savvy enough to coach the seller’s agent on how to speak to her clients to keep the deal moving. The seller’s agent simply didn’t have the creativity to suggest alternatives to her clients.
2007-11-05 16:19:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes. Although in this marketplace, banks are losing so much money that they are not exactly giving the homes away.
2007-11-05 15:53:31 · answer #5 · answered by Cutiepie88 2 · 0⤊ 0⤋