What chance they will accept

Question

my offer?
I just offered about $20,000 less than the list price on a lender owned property, at the suggestion of my agent, who said that's about what REO's are going for here. 
The property was just put on the mls. I was probably among the first to have seen it, and I included a loan status report with my offer. Close was noted to be in 30 days, agent said it would more likeky be 45.

Will the lender hold out for a better offer, or are they interested in selling to the first qualified party?

Account Closed · Answer

Penalty for buyer delay here, according to her, has been minimal until recently. 
Financing is dependent on the mortgage co, and I have no control over them. I am concerned that they actually would find many ways to delay the closing, and I donâ€™t have that kind of money. Iâ€™d just as soon sell my house first, to have the cash and not worry about it. I will be selling my residence to pay for it.

That house was listed at $135K. I offered 114. Their counter is 130, and thatâ€™s over the top of what Iâ€™m now willing to go. The house needs some work, at the very least about $8000 before I move in. Iâ€™ll go back to look at it closer Wed I think, and maybe counter with 124, 750 earnest money, and no penalty for financing delay, since it wouldnâ€™t be my fault.

I believe there will be a few other houses that will be suitable that will come up over the next several months. I did jump on that one too quickly because of the area, and that few houses there do become available.

Account Closed · Answer

They countered: purchase price $15K more than my offer, $1500 earnest money (I offered $500) Closing Sept 25, and $100 a day penalty if there is any delay by the buyer...
My agent never heard of $100 penalty.
That increase in the purchase price, though lower than the list price is higher than I want to go.
I think of your words, "There will be others if you don't get this one." and the report on "housing bubble" and won't worry about it.
Apparently the agent reminded her the listing just came out.

Thanks

Mark Brian · Answer

My closing this week also asked for $50 per day per diem. Crunch the numbers and if possible & counter below your max offer OR sit and wait for it not to sell and resubmit same offer later.

Jon Holdman · Answer

Hmmm, if your agents never heard of the $100/day penalty, I doubt they've ever done an REO.  Its been in the addendums on every one I've done where we've gotten to the point of doing the addendums.  You can rest assured, though, that the bank will find numerous reasons to delay the closing.

Without knowing the price, its hard to say how far apart you are.  If it was listed at $60K, you offered $40K, and they countered at $55, that's quite a bit different than if it was listed at $400k.

If you still have some room to your max price, it doesn't hurt to counter.

Kevin Adams · Answer

New agent time

Mark Brian · Answer

Alot of variables here:
Cash or contingent on financing?
Days on Market?
Comps?
I could go on & on.
BUT- if they want more,  they should counter. DO NOT pay more than you originally planned. There will be others if you don't get this one.