What % of the asking price should I offer on bank owned residential properties in metro Atlanta?

Question

What if they say that the price is firm? For the Atlanta market do I have leverage to still offer a percentage of the asking price on bank owned (foreclosed) properties. Would I still have a chance to get a binding contract on it? I am speaking in general terms.

Answer 1

You need to find comparables of recent sales to determine what price is appropriate, just as you would purchasing real estate which is not REO.

Contrary to what the first respondent stated, you probably will not get a chance to raise your offered price if someone tenders an offer which the lender finds acceptable. You can always raise your offered price if yours is rejected, but if another better offer comes in before you get a chance to raise your offer, the lender will most probably accept the best offer without notifying you.

Answer 2

You don't go by percentage of the asking price. You will have to find what is called "comparables," which shows the sale price of similar properties in the area in recent months and make your offer accordingly.

Usually, bank owned (meaning reposessed) properties have a fixed price that is already lower than market, and are usually not negotiable. BUT, you could always ask.

Answer 3

Weather your buying for yourself or as an investment, start low. you can always go up. Depending on the area and how long it's been on the market should give you some idea where to start. The listing agent will be a good resource for this info.
If there are multiple offers on the property, you'll have a chance to raise your bid. if not, you may be able to save yourself a few grand.

Good luck.

Answer 4

there is often a great gamble. yet once you do no longer submit it, then the respond is actual no. it is going to rely on some issues: ~how many foreclosure are in the section? ~how many foreclosure does that financial corporation have? ~How properly will you recent your grant? Does the homestead want paintings? submit an estimate from a qualified contractor. submit a catalogue of all the different comparable foreclosure which will drag the industry down greater. Do learn and supply motives on your grant, avg time on industry, and so on.. $60K is purely sixteen% decrease cost, and REO's are often marketed at finished industry fee (or what the financial corporation thinks its fairly worth) I did an REO in Sacramento that replaced into listed for $729,000 and that i've got been given a purchase order cost of %540,000 with the financial corporation paying $12,000 in remaining expenses and paying out 6% in commissions. How do you like them apples? choose for it. Banks have become further and further versatile...The deals ARE accessible. good success.