What do I say to the bank to get them to sell me a house for 30k less than the listing price?

Question

Do you think I have a chance of buying a house for 30k less than the listing price, from a bank, in Michigan?? (our market is horrible).

The house has a lot of updates. But the sump pump is broken. The basement has some flooding. The furnance and water heater work, but need replacing. Other than that, there are minor issues with the house. It has no appliances and is missing a toilet in one of the bathrooms. Looks like investors walked away from the project. Aesthetically, it's beautiful.

Answer 1

REMEMBER, THIS IS A BUYER'S MARKET. THERE IS A HUGE EXCESS OF INVENTORY. THEY HAVE TO MARCH TO YOUR TUNE NOW. DO NOT LET THEM TELL YOU HOW THEY EXPECT YOU TO RESPOND. YOU TELL THEM HOW YOU EXPECT THEM TO RESPOND OR YOU WILL WITHDRAW YOUR OFFER IMMEDIATELY AND BUY ANOTHER PROPERTY INSTEAD. THIS IS CRITICALLY IMPORTANT IF YOU ARE GOING TO AVOID OVERPAYING FOR THE PROPERTY.

THE BANK THINKS THAT YOU ARE A NOVICE AND THEREFORE THEY THINK THAT IT IS FAIR TO PUSH YOU AROUND AND MAKE YOU PAY TOO MUCH FOR THE PROPERTY.

YOU MUST HIRE A COMPETENT REAL ESTATE APPRAISER TO WORK WITH YOU. I VERY STRONGLY RECOMMEND AN APPRAISER WHO IS A MEMBER OF THE APPRAISAL INSTITUTE.

YOUR REAL ESTATE APPRAISER AND NO OTHER PERSON WILL DETERMINE THE MAXIMUM THAT YOU WILL PAY FOR THE PROPERTY.

NEXT YOU MUST HIRE A REAL ESTATE ATTORNEY TO WRITE YOUR OFFER AND DEVELOP THE LANGUAGE OF YOUR OFFER, NOT A REALTOR OR REAL ESTATE AGENT.

I recognize in your name that you say that you are a sexy law chick. I take that to mean that you are a newly licensed attorney. I recommend that on your first few properties that you work with an experienced real estate attorney.

I work with attorneys. I have found that experienced attorneys who specialize in the field often have a great deal to offer, even to other attorneys. I recommend that even though you are an attorney that you start out working with an attorney who has a significant amount of experience in this fiedl.

It will save you a lot of money, far more than the cost of his fees..

REAL ESTATE AGENTS AND REALTORS ARE MERELY TRAINED AS SALESPEOPLE. THEY DO NOT HAVE THE COMPETENCE TO REPRESENT YOU WITH A BANK.

NEXT, YOU MUST HIRE A LICENSED GENERAL CONTRACTOR TO GIVE YOU WRITTEN ESTIMATES OF THE COST TO FIX THE PROPERTY TO GOOD CONDITION, INCLUDING ALL PERMITS WHERE REQUIRED.

I recommend that you pay a competent real estate appraiser to determomine the fair market value of the property in its present condition and the fair market value of the property in perfect condition.

Do not use a REALTOR or real estate salesperson or broker. Real Estate sales people do not have sufficient training to make a competent estimate of the true fair market value of the property. All real estate licensees are trained as salespeople and nothing more. They do not have sufficient competence to represent you when you are dealing with an entity such as a bank.

REALTORS are sales people. That is what it says on their license. (Ask to see a copy of their license. They have to show it to you if you ask. They have to display it in their office. In most states, the license says SALESPERSON right on the front of the license)

Do not let them convince you that they are competent to represent you or your interests because they are not. They are trained as salespeople and that is all that they are trained to do.

Do not let a REALTOR or any real estate agent make your offer for you. Hire an attorney who specializes in real estate to write the language of your offer and make your offer for you.

Show your attorney what I have written. That will help your attorney determine what language needs to be on your offer.
Only an attorney has the legal training to represent you with a bank.

REALTORS and real estate agents are mere salespeople. they do not have the training or the competence to represent you when you are dealing with a bank.

Tell the appraiser that you are paying him to protect you from paying too much for the property. You are paying him to represent your interest, not the interest of the bank or anyone else. Ask the appraiser to acknowledge that in writing.

Next, get estimates of what a licensed contractor would charge you to fix the property to put it back in perfect condition with all of the proper permits.

Since you will have some loss of use of the house while it is being repaired and there is a level of uncertainty what the actual cost of repairs will be, I recommend that you add at least 50% to the cost of the repairs to determine your estimate of the cost of repairs and discount that you must have from the fair market value of the house in perfect condition.

Subtract the cost of repairs plus 50% of that cost from the appraiser' s estimate of the fair market value of the house in perfect condition.

That is the maximum that you shoud offer for the house. You shoud present those numbers to the bank and explain why and how you arrived at your offer.

If the appraised value of the property in its present condition is less than the number that you arrived at by subtracting 150% of the cost of the repairs from the value of the house in perfect condition, then that should be your maximum offer.

Present those numbers, your appraisals and the estimates of the repair costs to the bank

Do not accept an appraised value by the bank's appraiser. In my experience the bank's appraiser is at least 20 to 30% too high.

When you select your Real Estate Appraiser make certain that he or she is a Member of The Appraisal Institute.

All banks know of The Appraisal Institute. The Members of The Appraisal Institute are the most extensively trained of all appraisers and have the most experience and credibility with the bank.

Also, the people that you are dealing with at the bank do not know anything about real estate valuation or determining the true fair market value of a house.

Contact upper management with your offer if you do not get an immediate acceptance of your offer by the lower level people. Tell them that you want an immediate written response or you will withdtraw your offer and buy one of the other properties that are available in excess in this market..

Insist that the senior real estate appraisal people at the bank review your real estate appraisers work.

If your real estate appraiser is a Member of The Appraisal Institute, that will carry a great deal of weight with the senior appraisal people at the bank.

If you follow these procedures you will purchase a property from the bank at a value that will permit you fix the property up to good condition without overpaying for the property.

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Answer 2

There is not any requirement that listings seem in any MLS on the market, except the directory agreement calls for equal. However, there IS a demand that ALL presents on a estate be submitted to the vendor briskly. You could ask this REALTOR for a replica of your signed and rejected present. My wager is that your present certainly not received to the dealers, and the apartment might NOT had been offered while he claimed it used to be. It's infrequent for an present to be offered and authorised inside an afternoon of the precise foreclosures approach. If this individual is easily an agent operating for a brokerage, then touch the coping with dealer together with your criticism. Not definite how some distance you're going to get in making an attempt to touch the lender, except this can be a regional lender. With the gigantic creditors, it's complex to even uncover to whom you could have got to talk.

Answer 3

Banks are not real estate agents. If there is a house that is foreclosing to pay off the mortgage, then maybe 30 K was already paid off the house, and they are just looking to make up the short fall. Those are the cheaper ones to look for ... but they are rare.
There are also houses that had mortgage taken out when the market was lower. The mortgage owed on them is less than today's market price.

Answer 4

The answer lies in whether or not the house is properly priced, given its issues. Engage the services of a qualified real estate agent to act as your buyer representative. The agent will provide you written evidence of recent comparable sales in the area as a guide to what the house is worth on the market.

Calculate the costs of the needed repairs, and make your decision based upon your calculations.

A qualified buyer agent will submit your offer to the bank along with the written evidence of comparable sales to substantiate the value of your offer.

Answer 5

Cars are selling for more than houses in Michigan right now. Why not offer $40k less and see how they respond. How much would the property be worth fixed up properly and how much will it cost to do just that? Figure from there.

Answer 6

All you can do is make a offer.
You never know they might take it.
Good Luck

Answer 7

You will never know if you don't make them an offer.

Answer 8

get some estimates on the repairs

Answer 9

ask more than one bank