I think its a good offer, albeit below asking price. Does anyone on here have any experience with this? How long until I hear back from the bank?
Depends on the bank and who is handling the sale. All are different.
All depends on which bank. Some wait a few days before considering any offers, and then ask for the final and best. Others wait and make sure your not an investor. If you have a good agent, then that person should be able to tell you.
IIts BofA.I told my agent that that was my best and only offer. The suck ass thing is I had to prequel with Boca too. So now they no exactly how much money I have. But the house is a fixer upper, so those extra dollars are ear marked for other stuff. I guess we'll see.
They are going to counter your offer. They always do. The big question is...what percentage of the list price did you offer? I don't know the market you are seeking, but each bank and asset manager works differently. No matter what though, the banks always decline low ball offers. If an asset manager was to take a low offer, they would completely risk losing their job. Also, most banks have outsourced the sales of REO's to companies to liquidate these assets. There are many these days, but you may have heard if Green River or Keystone. When the majors hire these comanies to liquidate the assets they are given limitations percentage wise as far what offers they can accept. Anything below that percentage range has to go to the bank for acceptance. Typically, pending on the price range of the home, they reduce the price in increments until the public bites on it. From my experience, usually if the home is 100-250k, they reduce the price in increments of $7500, from 250-about 700k they reduce the price I'm increments of 15000. This is a very general statement, but very common place in the REO market in Socal. Good luck with your offer!!!
My realtor said they would counter too, which is disheartening because I put in a solid offer based on comps sales over the last 6 months. The asking price isn't realistic though and my offer was almost 10% below the$ 400( plus asking price. Its a 5 year old Mc Mansion fixer upper.
Hey its all different. I've submitted all cash of full price offers and they were turned down to later find out they accepted something 10k under list price FHA financing offer. Some times they weren't even double ended which just leaves me dumbfounded sometimes.
Your best bet with REOs is to try and make the offer as clean as possible. Try not to ask for any repairs or credits. Ask your agent his experience level with selling REOs.
I'd strongly consider looking into short sales too. They are a big percentage of the market place right now and the approval process has improved quite a bit over the last few years. Some banks will get your sale approved under 30 days. Some, like Wachovia will approve the sale in less than 7.
I see your from Carlsbad. I don't know if your buying down there too but I must say the that area and a lot of South OC has a nice selection of inventory. I've sold a few short sales and REO's down there in the past year and half.
Anyways, Good luck!
Last edited by NiceGuyEddie; 07-12-2011 at 12:40 PM.
I don't think the Banks are that concerned about it.. My daughter looked at a Condo that was a Bank foreclosure. They were asking $270,000 for it, and it was only worth about $250,000 max. She offered them $240,000, and they countered at $269,000.. I told her to keep looking, they're obviously not interested in getting rid of it. It had been on the market for 6 months.
I'd agree with you, but then we would both be wrong
San Diego is my market, but there are so many variables that its ridiculous. Yes, buyers do lose a lot of properties because brokers double end a lot of deals. Our brokerage doesn't work this way at all. Our buyers agents don't get any more information than any other agent. B of A is much more aggressive than other entities such as Fannie Mae, but I can guarantee they won't take an offer $40k below a $400k list price (10% under list). I have a B of A foreclosure listing that is priced at $276k and the bank just told me they would take $260k (94% of list price). The lowest comp in the area is $269k so that's pretty aggressive at the moment for REO's.
Keep an eye on the property if you want it. Every 3-4 weeks the price will get reduced approx. $15k until it sells as long as the listing agent asked for reductions. The toughest part of fixers is that there are so many investor buyers right now that the properties sell with almost no upside. McMillian (a well known developer in SD) is buying a huge amount of properties at the moment. For every 10 he buys he makes money on 8, but his real focus is to keep his guys employed. Don't get me wrong, he makes money, but is rate of return is scetchy.
Good luck, Brett. Let us know if you close on this deal.
This is exciting.
The wife and I do this for fun and profit.
There is a formula that will work. There is a lot to consider when making offers on REOs.
Do you plan to live in and hold for awhile?
Are you capable of making any and all repairs?
Do you have to finance? (I think you answered this already)
Where are you considering this purchase?
Loose, the Dogs of War!
Bof A from my experience will answer in 30 days,they may counter or they might just take the offer ,if they counter wait and see a lot of the time it goes up for auction and then its up to you and they get stuck.