Real Estate Question: Haggling a Foreclosure

Personally, I'd post this on the money board as well

quote:

---

What are the realities in securing a price lower than asking?

---

quote:

---

bank-owned for 18months.

---

The reality is that it is a somewhat realistic expectation.

quote:

---

the house has been bank-owned for 18months.

---

Truthfully they don't care how long they have owned it because their maintenance cost is offset by HUD, FHA, VA, or whomever. Trust me I manage lots of repos for banks.

There are a lot of factors that do go into what they will accept though. It's mostly creative accounting on their part and if they need some more write offs this quarter.

Bottom line is that it's your money and it doesn't hurt to ask and try to secure the lowest price possible.

Write them a manifesto about why they should accept your offer.

quote:

---

Say I am looking at a home that the bank is asking $450k for and I offer them $350k.

I understand I am low-balling......the house has been bank-owned for 18months.

What are the realities in securing a price lower than asking?

---

Banks rarely extensively negotiate, you might get one or two counters but that's it.

I purchased my 4th foreclosure in January.

Banks like to underprice properties to get the sharks swimming and will often sell for much more than asking.

$100k is almost insulting unless it needs a shite ton of work.

I'm under contract on a REO (bank owned property) right now. Asking price was $180k it sat on the market for a while. They dropped the asking price to $139k and we offered $97k. They responded saying that was below they're reserve price and to resubmit if we were interested. We resubmitted at 110k they countered at $129k. We didn't wanto get into a multiple offer situation so we asked if there were any other offers on the property. There were no offers so we submitted $124k and they accepted.