Making My First Offer
I am making my first offer on a house that was in foreclosure and is now bank owned. The FMV is $249 and the asking price is $190. I am thinking of offering $130 for two reasons. It's been on the market for almost a year and it needs some work, including removing mold in the basement. Will the bank laugh at this offer? My realtor thinks it's to low. I don't want them to be insulted and not negotiate with me. Thanks for any input.
[addsig]
Two things:
1) Banks are not emotional beings...they don't get attached to a property. They look at the numbers pure and simple.
2) Oftentimes banks really don't know the condition the home is in. Prepare an additional document and include pictures, contractors estimates for repair, and anything else you can give them to show the reasoning for your offer.
You run the risk of having the listing realtor not submit that part of the offer. I always write in the offer itself something to the effect to "see pages 1-5 of exhibit A" or something. That points out to the bank rep that something is missing if they don't receive it.
Hope this helps. GOOD LUCK!
Lauralee, if you can justify the reason for the low offer, like you did here, there should be no reason the RA shouldn't submit the offer for you. I was with the understanding that they were obligated to make any and all offers and you are also giving a reason for the low offer. Also, have you tried to go straight to the bank and make the offer to them? Just a thought...and all they can say is No, you have to do it thru the RA. Cant hurt to try!!
Good luck
Pejemes, can I go directly to the bank after using an agent to show the house? I don't want to do anything un-ethical.
If the listing is an REO, I dont think it's a problem. I talked to a bank on that same notion and they told me I could deal with thme instead of the RA. I guess it depends on the agreement the bank has with the listing Broker. I would check with the bank before crossing that line. The broker may tell you anything. Get the info straight from the Bank...Good luck
I smiled when I say your statement about "not wanting to insult bankers". That's good.
Submit any offer you want. They probably will reject it. Wait and then raise your offer a bit. The bank hired a real estate company to market the house. They have no interest in negotiationg directly with you. Yes, to do so would be unethical-also ineffective.