Foreclosure price negotiation

[Jeffmatic46]

I am curious if it is even possible to negotiate the asking price of a bank owned home. If yes, what would be a good percentage level to start at. Many thanks from Texas.

[Laura Pearlman]

I am curious if it is even possible to negotiate the asking price of a bank owned home. If yes, what would be a good percentage level to start at. Many thanks from Texas.

Hello Jeff,
Every bank varies a lot on how they handle negotiations on any of their properties, what they did for one transaction may not be the norm for how they deal with all transactions. I have a couple of suggestions on how you may want to approach this. You really should have a home inspection: a)Because you need to be aware of any defaults in the home just because it looks like a great deal because it is listed way under the comps doesn’t always mean it is truly a great deal....i.e.; foundation issues, etc.. b) With this home inspection you now have a starting place for your explanation of why you are submitting under asking price, you need to show the bank why, submit the report/letter from home inspector with your offer. Do we normally get a home inspection before we make an offer, no but if you are looking to offer $10,000 or $20,000 less then is it worth spending $350.00 upfront, in my opion, yes! I would also highly suggest always pulling comparable properties to see what they have sold for recently (with in 90 days) to support your explanation of your offer. The banks will usually be looking at this information too. KEEP IN MIND, these are my experiences with my clients in dealing with Palm Beach County real estate. I am not familiar with Texas real estate, not familiar with the cost of inspection there; I do not know if you are looking at a home in an area that is used to seeing several bids on one property. With the help of a good Realtor in your area (if you would like assistance with locating a Realtor with experience in bank-owned tranactions please let me know) I am sure they could answer those questions and with those answered you will find the right percentange below asking to offer and make your real estate transaction a successful venture. Best of luck and keep us updated, Regards, Laura Pearlman, Signature Service Realty Co., Palm Beach County, Florida

[Jeffmatic46]

wow thanks for taking the time to answer my question so thoroughly. I really appreciate your help. I'm going to do what you suggested about the inspection(s).. I guess you have to pay to play!

Thanks for steering me in the right direction.
-Jeff

[morkel182]

I am new in the Torrance city and need a good home. I searched lot in internet about this website http://equityinspection.com/, Is this website is really good in providing good inspection?

[Ian Bothom]

I have heard that the bank owned foreclosed homes have high price and there is no negotiation at all on the price. But may be the bank policy has changed now and in order to avoid total loss ,bank can negotiate over the price of foreclosed property.

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[Devonte]

Most of the bank owned foreclosed properties are sold on auction basis or sold privately as well. But they don't negotiate below certain level which is most of the time the original cost that they have borne at the time of the foreclosure.

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