Foreclosure Property

Buying & Selling Real Estate
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Foreclosure Property

Virginia C. Huddleston
Semmes, AL · Member since 2015 · 21 posts · 7 votes

I see a great triplex for sale that's in foreclosure. Great area. However, I believe the price is too high. Having never dealt with foreclosures, how negotiable is the price and how low is a bank willing to go?

I'm in Alabama if that matters.

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Eva Salas
Real Estate Investor · Silicon Valley, CA · Member since 2012 · 169 posts · 52 votes
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Throw in a low-ball offer and find out!! The only thing worse than offering too little is offering too much!! 

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  • Eva Salas
    Real Estate Investor · Silicon Valley, CA · Member since 2012 · 169 posts · 52 votes
    11y

    Throw in a low-ball offer and find out!! The only thing worse than offering too little is offering too much!! 

    1Reply
  • Virginia C. Huddleston
    OP
    Semmes, AL · Member since 2015 · 21 posts · 7 votes
    11y

    Touche!

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  • Neil Aggarwal
    Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
    11y

    Everything is negotiable.

    1Reply
  • Brent Fleeman
    Investor · Ringgold, GA · Member since 2014 · 86 posts · 13 votes
    11y

    Eva Salas, well said, you never want to be stuck with a property that you pay to much for.

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  • Jeff McCaskey
    Investor · Isabel, KS · Member since 2015 · 247 posts · 85 votes
    11y

    @Virginia C. Huddleston It really depends....... The lucky part for you is that there are many fewer people who are in the multi market than the SFR market so it should increase your chances right out of the gate so to speak.

    Also depends on DOM (days on market), at some point the bank will want to clean up the balance sheet for the month or quarter etc etc and if not sold, will begin dropping the price, sometimes dramatically. There is an SFR here in my area that was listed at 52k after one reduction and an agent I know said "you could get that for 40k I bet" I said, you think 40k huh? He was confident in that. Well just a week or so later it's listed for 39,900, so I think I could get it for 30K now, I was thinking that when he mentioned 40K too but just let him talk. Point is, that you can probably get it bought for less than you think. Like was mentioned, make an offer, low ball, see what happens......

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  • Virginia C. Huddleston
    OP
    Semmes, AL · Member since 2015 · 21 posts · 7 votes
    11y

    thanks yall.  Asking is 389,000. On the market for 202 days .  Rental rates in area around 900.00. 

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  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    11y

    That many DOM? It is difficult to say what to offer, not knowing the market or having seen the property. I would make a super low-ball offer and see what happens. I did that once, the bank rejected it, and after 9 months on the market, they accepted a lower offer than what I initially made, so even if they reject it, keep it on your radar. You can always offer more later...

    [email protected]Podcast Guest on Show #261
    BiggerPockets
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  • Virginia C. Huddleston
    OP
    Semmes, AL · Member since 2015 · 21 posts · 7 votes
    11y

    thank you.  

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